By Jill Campbell-Miller
On March 21st, the Canadian government released the 2013 federal budget and in a paragraph did away with the 45-year-old Canadian International Development Agency (CIDA). The budget announced that CIDA would be amalgamated with the Department of Foreign Affairs and International Trade (DFAIT) to become the newly-renamed Department of Foreign Affairs, Trade and Development. The budget justified the decision by stating that “The Department of Foreign Affairs, Trade and Development will leverage the synergies resulting from the amalgamation to maximize the effectiveness of resources available to deliver development and humanitarian assistance.”[i] Despite its significance, however, the announcement failed to make it into the text of finance minister Jim Flaherty’s budget speech.
This decision is consistent with the direction of the Harper government’s official development assistance (ODA) policy, and is informed by its previous decision in 2006 to merge foreign affairs and trade. That change, in their words, “enhanced policy coherence across our foreign and trade objectives …. There are similar opportunities for synergies with our development assistance.”[ii] The government sees the absorption of CIDA into DFAIT as a natural progression to bring Canadian foreign, trade, and development policy into line, with the final objective being to strengthen its business orientation.
Aid has always been a political football – a convenient way to express political decisions in a feel-good way. The current government has made no apologies for their approach. It draws from a conservative philosophy that sees the private sector as a potential resource for innovation in development. It also stems from a very concrete interest in promoting Canadian business interests in the developing world, particularly in Latin America. In November 2012, the House of Commons released a report of the Standing Committee on Foreign Affairs and International Development, “Driving Inclusive Economic Growth: The Role of the Private Sector in International Development.” In March the minister for CIDA, Julian Fantino, and the World Economic Forum co-hosted a conference entitled “Maximizing the Value of Extractives for Development.” Continue reading