November 28, 2012
Today, most Canadians likely would describe the Canadian International Development Agency (CIDA) as a charity. They're not off-base - not when, for example, taxpayer dollars go towards helping some of the world's most vulnerable people stave off the effects of a hurricane or civil war. We at CIDA live out the best of Canadian values every day, in every corner of the globe. We are providing lifesaving assistance to those suffering from the conflict in Syria and the drought in the Sahel region of Africa. We are doing much more, however. We are also in the business of building Canada's markets for the future. The bulk of CIDA's work is focused on long-term development in some of the world's poorest countries. This is the less visible - but no less important - work of growing and strengthening individuals, families, communities, and countries, helping them to become more resilient and self-sufficient. Why does this matter to Canadians and our economy? Today's developing countries are tomorrow's trading partners. The export and investment markets Canadians covet today, such as Brazil, Thailand, Costa Rica, and South Korea, have been recipients of CIDA assistance in the recent past. When we help other countries grow their economies, we connect Canada and Canadian businesses to some of the world's fastest-growing markets. CIDA takes an upstream approach to economic growth. We help make countries and people trade- and investment-ready. CIDA helps build the necessary frameworks in developing countries to allow for private sector-led growth in their economies.
Increasingly, the Canadian private sector has achieved even more commercial success in developing countries. By investing in local communities, being accountable and transparent to local governments, Canadian companies not only have demonstrated social responsibility but also have enhanced their bottom lines. As developing countries grow and open themselves up to more foreign investment, Canadian companies have an opportunity to share their expertise and business practices in a way that is mutually beneficial. Such mutual benefit is evident in Peru, which has been Latin America's fastest-growing market in the last five years. Canadian firms have seen this opportunity and have capitalized on it. In 2011, foreign direct investment was $7.6 billion, largely in the extractives sector. The growth experienced in Peru has increased demand for energy resources; Peru's oil and gas sector has expanded rapidly in recent years with the discovery of significant reserves. With our worldwide expertise in the natural resources sector, Canada, through CIDA, has helped Peru implement a new natural gas regulatory framework, based on recognized industry standards. We also worked with the Peruvian government and its private sector to build up the capacity of the relevant regulatory agencies.
The benefit to Canada in this field is obvious. Canadian companies in the extractive sector account for almost half the mining activities in the world, and represent approximately 12 per cent of Canada's direct investment abroad. The natural resources sector covers up to one-third of the Toronto Stock Exchange Index. These companies boost economic growth and provide high-value jobs to thousands of workers in Canada and around the world. CIDA is working to help the Canadian mining, oil and gas sectors to collaborate in development with local governments and non-governmental organizations (NGOs) for mutual benefit. Our firms are a key contributor to reducing poverty and helping people benefit from their own resource wealth in developing countries. Some NGOs and members of the media have misconstrued our partnerships with companies as subsidies to profitable firms. This could not be further from the truth. CIDA is an outcomes-driven agency. Our mandate is to bring the world's poorest people out of poverty. We do not subsidize Canadian companies - or NGOs, for that matter. We use any and all legitimate vehicles available, including the private sector, to meet our objectives. Developing countries are using natural resources - more and more - as a key economic driver to create jobs and provide governments with revenue to deliver basic services for their people. Canadian firms have the expertise and commitment to local development to make this happen.
As it stands, CIDA collaborates with a broad range of partners to meet our ambitious goals. While CIDA has a long history of working with the private sector, we need to engage more. The private sector is the driver of long-term economic growth globally and here in Canada. Without increasing their presence in the developing world, we will not achieve the development goals we are committed to at CIDA. Nor will the Canadian economy reach its full potential. International development is a global process that strives to move people from poverty to prosperity. Canadian business leaders can and should work with us to seek a more prosperous world, while reflecting the Canadian values we cherish. This will not only help us meet our goal of eradicating poverty, it will pave the way for a more prosperous Canada in the future.
Julian Fantino
Ministre de la Coopération internationale
