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Federal Budget 101: Making sense of the numbers on aid CCIC presentation to PE-Hub webinar, April 24, 2012. Overview of presentation. What is ODA? What is IAE? International assistance, IAE and ODA compared Federal Budget 2012 CCIC analysis Institutional impacts Geographic programs.
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Federal Budget 101: Making sense of the numbers on aid CCIC presentation to PE-Hub webinar, April 24, 2012
Overview of presentation What is ODA? What is IAE? International assistance, IAE and ODA compared Federal Budget 2012 CCIC analysis Institutional impacts Geographic programs
What is official development assistance? “Flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective, and which are concessional in character with a grant element of at least 25 percent.” Bilateral or multilateral OECD
What is official development assistance? (Take two) ODA is international assistance (a) identical to the OECD definition, but that also “meets the requirements set out in section 4; or (b) that is provided for the purpose of alleviating the effects of a natural or artificial disaster or other emergency occurring outside Canada” (but is not required to meet the three criteria). ODA Accountability Act, 2008
What is official development assistance? (Take two) Article Four relates to the three criteria of the ODA Accountability Act: (a) contributes to poverty reduction; (b) takes into account the perspectives of the poor; and (c) is consistent with international human rights standards. ODA Accountability Act, 2008
What is the international assistance envelope? Much of Canada’s ODA falls within an IAE IAE contains budgetary allocations by the federal government for int’l cooperation. CIDA (63%), Finance (15%), DFAIT (8%), IDRC (3%), Other (15%) etc. Traditionally five components BUT, not all IAE is ODA Not all ODA is in the IAE Some of the ODAAA is not ODA
Int’l Assistance, IAE and ODA ODA Statistical Report 2009-10
So what isn’t ODA in the IAE? DFAIT Global Partnership Program ($117.55 mn) Counter Terrorism Capacity Building Program ($20.91mn) Anti-Crime Capacity Building Program ($13.6mn) Afghanistan Counter-Narcotics Program ($12.2mn) Specific to the ODA Accountability Act: Provincial refugee costs and transfers
CCIC analysis of Budget 2012 FY 2012/13 FY2014/15, IAE will decline by 7.6% (CIDA’s cut, about 4.3%) Between FY2012/13 and FY2015/16, Cdn IAE will have been cut by about $1.2 bn Cf. CIDA analysis (only cut by $377 million) Cf. 8 % continued increase to $7.7 billion
Institutional Impacts CIDA will get disproportionately hit (relative to its share of the IAE). IDRC cuts are proportional to their IAE share, but hit their actual budget the hardest The cuts to DFAIT are in proportion to their share of the IAE and the size of their budget. Finance Canada (which provided $384 million to the World Bank in 2010-11) is untouched by the cuts in the IAE.
Budget specifics for CIDA Three of CIDA’s countries of focus (Colombia, Peru and Ukraine) unaffected Ten of the 13 countries affected lie in the bottom quarter of the HDI ranking. Decision-making criteria for cuts Colombia and Peru, as well as Indonesia, Vietnam and Bangladesh have become important trading partners – all unaffected Africa takes the biggest hit – 8 of 13
www.ccic.ca ccic-ccci.blogspot.com THANK YOU!! No of hte Fraser Reilly-King Policy Analyst (Aid) +1 613 241-7007, ext. 306 freillyking@ccic.ca