WHAT IS THE DEVELOPMENT ASSISTANCE COMMITMENT?

‘Canada will double its international assistance from 2001 to 2010, with assistance to Africa doubling from budget year 2003–2004 to budget year 2008–2009.’

Canada’s Gleneagles commitment was originally interpreted as a doubling of ODA from a baseline of CAD$1.4 billion ($1.1 billion) in 2003–04. After Gleneagles, Canada clarified that the 2003–04 baseline was CAD$1.05 billion ($750 million), because Canada spent less on ODA to sub-Saharan Africa in 2003–04 than was anticipated. Using this new baseline, Canada committed to increase ODA to the region to CAD$1.613 billion ($1.5 billion) in 2008–09.

Canada’s ODA commitment to sub-Saharan Africa at Gleneagles was the smallest commitment of all the G7 donors in volume terms, and the third smallest in terms of ODA as a percentage of projected GNI.

OVERALL ASSESSMENT

A significant increase in ODA to sub-Saharan Africa between 2007 and 2008 enabled Canada to surpass its modest Gleneagles commitment to double development assistance to the region by the end of the 2008–09 budget year. Canada should build on this progress by making a new and more ambitious commitment to the region.

Canada remains a strong supporter of primary education in sub-Saharan Africa and has also become a leader in improving ODA quality by committing to untie all of its development assistance by 2012–13. However, along with other G8 countries, Canada is not making real progress on ‘making trade work for Africa’, especially in the area of aid for trade.

LOOKING AHEAD

Although Canada is one of only two G8 countries to have met its Gleneagles commitment to sub-Saharan Africa, its commitment was relatively unambitious (the second smallest of the G8 as a share of GNI) and was further weakened after Gleneagles by a diminished baseline.

In a year when Canada should be enhancing its commitment to Africa in anticipation of assuming the G8 Presidency in 2010, a recent announcement by the Canadian government may reflect a shift of focus away from the continent. In February 2009, the government announced a new policy to focus 80% of its bilateral assistance in 20 high-priority countries. Only seven sub-Saharan African countries are on this list, compared with 15 countries that were on the original list of 25 produced by the government in 2005. This new policy would have a detrimental impact on several African countries that rely on strong bilateral support from Canada. The Canadian government should share with the public more details on future ODA levels based on this new policy shift.

Canada has a strong history of helping to prioritise sub-Saharan Africa at the G8, dating back to the 2002 Summit in Kananaskis. As the host of the 2010 G8 summit, Canada needs to reassert its commitment to African development by leading the G8 towards the development of a post-Gleneagles framework, including a new, more ambitious Canadian ODA target moving towards 0.7% ODA/GNI, with a clear timetable for delivery and leadership on increased trade and investment for the continent.

SEE THE ODA CHART

CANADA ODA to sub-Saharan Africa and 2010 target

Click to enlarge
 

IS CANADA DOING ITS PART TO MEET THE G8's SECTORAL COMMITMENTS?
 

ON TRACK
DEBT
  • Along with other G8 countries, Canada agreed to cancel 100% of qualified debts for the poorest countries, first through the HIPC and then through the MDRI process.
  • An important measure of progress on debt is the extent to which donors fulfil their commitments to compensate the IFIs for lost reflows due to lost revenue from debt servicing. Canada is on track with such commitments. In total, Canada has made pledges to cover the cost of multilateral debt cancellation worth $1.467 billion through to 2044. To date, Canada has provided IDA with an unqualified commitment of $874.34 million until 2026 - more than is needed to cover its share, $411.34 million through to 2019.
  • Canada has cancelled 100% of bilateral debt owed by completion point HIPC countries. This includes 100% of its post-cut-off-date commercial debt.
EDUCATION
  • In 2007, Canada provided $98 million for primary education in sub-Saharan Africa, down from $206 million in 2006. Despite this cut of over 50%, Canada was still close to meeting its proportionate share towards achieving UPE in sub-Saharan Africa (which required $120 million from Canada in 2007).
  • Canada will need to commit $110 million in 2008 to be on track to meet its commitment to education in sub-Saharan Africa. Canada has consistently dedicated a significant proportion of its education ODA in the region to primary education (averaging 88% annually since 2004).
WATER AND SANITATION
  • This report interprets the G8 commitment on water and sanitation to mean that a donor should direct 5.5% of its ODA to sub-Saharan Africa to the sector. In 2007, Canada spent $61 million on water and sanitation in sub-Saharan Africa, 5.82% of its total ODA to the region. This was a significant increase from the 1.9% the country contributed to the region's sector in 2006, and one that puts Canada on track to fulfilling its commitment to this sector. However, this increase was made in a year when total ODA to sub-Saharan Africa declined, meaning that the increase in the volume of ODA to water and sanitation was less substantial.
  • The $61 million Canada directed towards sub-Saharan Africa's water and sanitation sector was almost a tripling of the $21 million it spent in 2006.

OFF TRACK
AGRICULTURE
  • Canada is failing to reverse the declining trajectory of its ODA for agricultural development in sub-Saharan Africa, despite the increase in funding from 2006 to 2007. It provided $190.68 million to agriculture to the region in 2004, but funding declined drastically in 2005, and further to $29.93 million in 2006 - an 84% decrease from 2004 to 2006. Canada is providing little funding for this sector: its contribution represents only 3.8% of total G8 ODA for agriculture in sub-Saharan Africa. Canada will have to steadily and significantly increase funding in 2008 and beyond. The G8 commitment to agriculture remains weak.
  • The increase in spending on this sector in 2007 primarily reflects an increase in funding for agricultural inputs. The Canadian government has provided preliminary figures for 2008 sector disbursements (as opposed to the commitments data described above) which show that Canada's bilateral disbursements for agriculture in the region will continue to increase steadily despite 'lumpiness' in commitments. The disbursements information from the Canadian government shows that Canada will disburse $109 million in the fiscal year 2008-09.
  • In 2007, Canada spent $110.71 million on food aid for sub-Saharan Africa, an increase of almost $20 million over 2006 levels. In 2007, as in 2006, funding for food aid was greater than funding for agriculture in the region; in 2007, agriculture funding was 57% of funding for food aid. In April 2008, the Canadian government announced that all future food aid will be untied, thus allowing local procurement. This is a welcome announcement.
TRADE
  • Canada offers nearly 100% duty-free and quota-free access for all goods, except dairy, poultry and eggs, to all LDCs through its Least-Developed Countries' Tariff (LDCT) programme.
  • Canada's aid for trade contribution in 2007 was approximately $196 million, accounting for only 3% of the G8's total aid for trade volumes. Canada's aid for trade level has fluctuated between 2004 and 2007, from a low of $65 million in 2006 to a high of $283 million in 2004. Meanwhile, the needs for aid for trade in Africa alone are estimated to be $12-$14 billion per annum.
  • According to the OECD, in 2007 Canada spent approximately $7.2 billion in subsidies to support its farmers.

PROGRESS REPORT
HEALTH
  • Total health sector spending for sub-Saharan Africa in 2007 was $235.1 million, a 33.5% increase over 2006 and a $64.1 million (37.5%) increase over 2004.
  • Of total 2007 health spending, Canada spent $102.04 million (43.4%) on infectious diseases; $84.24 million (35.83%) on basic health; $46.45 million (19.76%) on health systems; and $2.37 million (1.01%) on reproductive health.
  • In 2006, Canada announced that it would give $450 million in new funding to the African Health Systems Initiative to strengthen health systems. $150 million of this funding will go through the Catalytic Initiative to Save a Million Lives, a multilateral partnership to reduce maternal and child mortality through health systems strengthening.
  • In 2008, Canada pledged $129.1 million to the Global Fund to Fight AIDS, Tuberculosis and Malaria, but still has $27.2 million in outstanding pledges.
  • Canada contributed $7.82 million to the Global Polio Eradication Initiative in 2007, and increased this contribution to $30.14 million in 2008.
  • Canada has contributed a total of $158.93 million to the GAVI Alliance since 2002, $10 million of which came in 2007 and 2008.
  • Canada contributed $200 million in 2007 to launch the first Advance Market Commitment.