Ottawa - April 7, 2005 -The Honourable Aileen Carroll, Minister of International Cooperation, today outlined Canada's plans to encourage the growth of the private sector in developing countries and announced a series of new initiatives, valued at $25 million, in Africa, Asia and the Americas. "It is important that the poor have a say and a stake in the way that private sector development evolves in their countries, and that its benefits are shared equally," Minister Carroll said. "The needs and priorities of the developing countries themselves should lead this evolution." While delivering the keynote speech at the Unleashing Entrepreneurship conference in Ottawa, Minister Carroll explained that the Canadian International Development Agency (CIDA) will focus on three areas: contributing to conditions that encourage growth of the private sector; promoting entrepreneurship; and, supporting links to markets that help developing countries better integrate into the global trading system. At least 75 % of CIDA's private sector development programming will focus on these three areas. This will be accomplished through programming that aims to have a tangible impact through a limited number of successful private sector initiatives. Canadian programming will ensure an effective balance between bilateral, multilateral and partnership programming. An advisory board comprised of international experts will be created to advise Minister Carroll and CIDA on issues related to private sector development. Beginning in early 2006, Canada will also begin to host annual conferences dedicated to addressing challenges in private sector development. This will encourage better coordination amongst donors and leading thinkers and practitioners. It will also establish and maintain a global exchange of ideas in this critical sector. In addition, the initiatives announced today will be allocated as follows: $11 million for a project to support land management and administration in Cambodia, including $2.5 million to a World Bank Trust Fund. This will help improve productivity, income opportunities and access to finance for farmers, encouraging investment in rural enterprises and agricultural infrastructure. Improvement to land registration and titling systems will benefit land poor and landless farmers through increased land tenure security; $6.5 million over six years to OXFAM in Mozambique to help improve the ability of civil society organizations to promote entrepreneurship among small-hold farmers and to help agricultural entrepreneurs connect to local and national markets; $3 million over three years to support initiatives that help developing country governments attract and retain foreign direct investment. This includes $1.2 million to the Foreign Investment Advisory Service (FIAS), a joint service of the World Bank and International Finance Corporation, and $1.8 million to the African Regional Trust Fund, which will support FIAS by deepening engagement in sub-Saharan Africa; $3 million to the Canadian Manufacturers and Exporters (CME) to continue to support small and medium-sized businesses, specifically those run by women entrepreneurs, that want to access finance and other resources. Of this amount, $1 million will support reconstruction efforts in Banda Aceh, Indonesia. These funds will be added to the ongoing Private Enterprise Participation project, a $10-million initiative managed by CME with the Indonesia Women's Business Association. The project will include the addition of microfinance program, and business development centre; $1.5 million to the Economic Commission for Latin America and the Caribbean to build the trade capacity of small economies. This initiative will support trade related technical assistance that meets the needs of small economies identified in the Free Trade of the Americas' National Trade Capacity Building Strategies; $250,000 to the CARE Canada MBA Internship Program. The Program will provide Canadian university and college students, enrolled in an MBA program, with a 15-week cooperation placement in a developing country. This will provide interns with a critical understanding of the private sector, especially of non-formal micro-enterprises, in a developing country. Business students in developing countries would experience academic and practical approaches used by Canadian universities. "Canadians - individuals and organizations, private sector and civil society - are helping to create an environment that helps the local private sector put down roots," Minister Carroll said. "We need to build on this foundation so that the private sector can not just survive, but thrive and through its success, reduce poverty and increase human well-being." Funding for these initiatives was provided for in the February 2005 federal budget and is therefore built into the existing fiscal framework. - 30 - Information Andrew Graham Director of Communications Office of the Minister of International Cooperation Telephone: (819) 953-6238 Media Relations Office Canadian International Development Agency (CIDA) Telephone: (819) 953-6534 E-mail: info@acdi-cida.gc.ca Web site: www.cida.gc.ca (electronic version of document)
