June 11, 2014 – Montreal, Quebec
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Friends, colleagues, distinguished guests, I am pleased to join you this evening, as Heads of State, private sector leaders, international organizations and civil society convene for the Conference of Montreal.
For two decades, this gathering has heightened knowledge and awareness of the major issues concerning economic globalization.
The conversations that have taken place here over the years have routinely shed new light on the challenges facing our world. I have no doubt that the 20th edition of this conference will again do the same.
As Canada's Minister of International Development, it will be my pleasure to engage in the discussion.
Specifically, tonight I want to focus on how the private sector can be a catalyst for economic success in the developing world, and a key player in successful development.
But first, let me just speak briefly about the growing relationship between foreign policy, development and trade.
The increased interrelation between these three elements is becoming more apparent at the global level.
When our government merged the Department of Foreign Affairs and International Trade with CIDA, it was to harness and capitalize on the full potential of these intertwined relationships.
By harmonizing our foreign affairs, development and trade policies and programs, we envision achieving greater strategic coherence.
We believe that this coherence will lend greater weight to our efforts at all levels.
The merger also allows us to maximize the effectiveness of available resources for development and humanitarian assistance.
As Minister for La Francophonie, I can now attest to the benefits of the merger in this specific area.
With its partners, for example, Canada is currently leading an effort to ensure that La Francophonie adopts an economic strategy.
The reorganization of the Department allows Canada to push for a strategy that will consider the different levels of development of Francophone countries, while we ensure that trade and development are on equal footing.
Never has this been more important.
As many of you know, international assistance is not what it used to be. Indeed, a great deal has changed since Canada began officially pursuing international development in the late 1960s.
Today, developing countries are increasingly driving global growth, and using economic development, trade, and investment to fuel their own progress.
The importance of development assistance has decreased compared to other resources, and foreign direct investment to the developing world now outpaces assistance by a five to one margin.
Remittances are roughly three times the size of official development assistance.
In addition, the number of actors involved in development work has grown exponentially.
Development has now become a global endeavour in which partners from a cross-section of areas work together to meet the needs of the world’s poor.
It used to be squarely the domain of government development agencies, charities, and international organizations.
Against this backdrop, more than 1.1 billion people around the world still live in extreme poverty, trying to survive on less than $1.25 a day.
How to keep these billion people from losing their daily struggle is a complex challenge that pushes us to redefine our approach to international assistance.
We are forced to go beyond the boundaries that have traditionally defined how development is done.
It is in this context that Canada is working to help developing countries become more self-sufficient.
Therefore, more people will be able to move out of poverty and into a life of promise and opportunity.
At the core of our efforts lies a commitment to new partnerships and innovation.
It's a commitment to smart development that evolves with the rapidly changing development landscape.
This means working in new ways.
And finding new partners.
Like the private sector.
Canada's own view is that private sector companies have a vital role to play in advancing global development objectives.
In fact, the question we should be asking is not “if” we should be engaging with the private sector, but instead “how”—as in “How can our partnerships with the private sector yield the best possible results for the world’s poor?”
The simple fact of the matter is this: few other sectors are as well-equipped to help create the sustainable economic growth required to help people go from dependency to self-sufficiency.
Meaningful jobs, better education and training, and improved health and nutrition for mothers and children can all lead to an increased likelihood of overcoming poverty.
And these are all increasingly attainable when the private sector is better connected to global development efforts.
These are not new conclusions.
Partner countries in Africa, for example, have long said that they need more than just development assistance.
They need access to the knowledge and expertise that can help them to mobilize their own resources and capabilities.
They want private sector investment so they can reinvest the public revenues into the health and well-being of their own citizens.
The impressive growth of Africa’s extractives industry is a good example of the potential that exists for private sector investment to transform economies and, by extension, improve lives.
The Americas are similarly endowed with enormous natural resource wealth, and incredible potential for growth.
There, as in Africa, Canada is working with developing countries to build resource governance capacity, promote local economic development, and enable communities to maximize benefits from the extractive sector.
The Americas have been a foreign policy priority for Canada since 2007.
Canada’s whole-of-government Strategy for Engagement in the Americas was renewed in 2012 with the same vision of achieving a more stable, prosperous and democratic hemisphere.
The Strategy’s three goals are: to increase mutual economic opportunity, strengthen security and democratic institutions, and foster lasting relationships.
Applying the Canadian model of public-private partnerships, our government is increasing opportunities for collaboration between extractive companies, local communities and governments.
The revenues generated through these responsible resource management partnerships—in Africa, the Americas and elsewhere—help countries pay for important services that reach the poorest and most vulnerable.
These can range from quality education and training to greater access to health care services for mothers and children—which is Canada’s top development priority.
Indeed, it is a priority that I am proud to say was reinforced by Prime Minister Harper two weeks ago at the Saving Every Woman, Every Child global Summit in Toronto.
Heads of government, industry, and organizations came together to build consensus on international efforts to reduce the preventable deaths of mothers, newborns, and children under the age of five in developing countries.
In Toronto, the Prime Minister announced that Canada will provide $3.5 billion, over five years, to support maternal, newborn and child health.
This commitment will build momentum in the global effort to save the lives of millions of babies, children and mothers, and help them to grow and thrive.
The Summit reaffirmed that we are on the right track.
That saving every woman and every child is within arm’s reach.
And that re-doubling our efforts is necessity if we are to meet our goals.
It also reaffirmed that this issue must remain at the centre of our post-2015 global development agenda.
Canada recognizes the important role that the private sector can play to help us get there, and also to reduce poverty and build tomorrow’s markets for trade and investment.
That is why Canada is providing support for two new projects that will create jobs and opportunities for the world’s most vulnerable people.
The first is the Canada-Asia Trade and Investment for Growth Program.
It aims to increase access to markets and finance for the private sector so that businesses can grow, create jobs and reduce poverty.
The second project we are contributing to is the World Bank’s Facility for Investment Climate Advisory Services.
Canada’s support will help a large number of developing countries undertake targeted reforms to help more businesses get off the ground and ultimately thrive in a competitive marketplace.
This includes providing early support to implement the World Trade Organization’s new Trade Facilitation Agreement, which could add $1 trillion to the global economy through lowered costs for doing business and expanded private sector activity.
If we are contributing to these and other similar projects, it is because we know how truly transformative private sector investments can be in the developing world.
This is something I have seen for myself since I became Minister of International Development.
Whenever I travel, I often hear about the difference that private investment can make for developing countries and their people.
Indeed, the business community is uniquely positioned to help advance global development objectives.
And to improve life in many of the foreign markets that benefit from international assistance and investment.
By working together, we can do more for more people.
We can help them overcome the challenges they face, and play a pivotal role as they move from dependency to self-sufficiency.
Thank you.
