But if the policy direction at the Canadian International Development Agency seems to blur the line between Canada's economic interests and international development goals, it is not something that worries Canada's International Co-operation Minister Bev Oda. When asked, during an interview with the Citizen, how she separates Canada's trade and foreign policy interests from Canadian development goals, she replied: "I really don't separate them.
"I think if we can increase the capacity of any country to become a global trading partner, if they've got products Canadians need, we can import them and, if Canada has products they would like, Canada can export them."
And Oda says she wants to see more partnerships between aid agencies and companies to help deliver Canadian aid around the world.
"Our government is very much looking to increase its relationships with the private sector," she said, adding that she would like to see such relationships between NGOs and corporations in manufacturing, agriculture and tourism, in addition to the extractive industry.
Oda said Canada's expertise in the mining and extraction industries - Canada is a global leader in mining - provides "added value" when it comes to international development. "It's another way of improving the effectiveness of CIDA's work," she said.
"In our government's view, this is maintaining our focus on economic growth and it's making sure that we are going to make maximum use of Canada's expertise . and we believe the agricultural sector and extraction industries are two very viable potentials for long-term poverty reduction."
It is a direction that has divided the foreign aid community and has critics asking whether Canada's international aid strategy has been overtaken by the country's economic interests.
Liberal MP John McKay, who has pushed for more accountability for Canadian mining companies working overseas, calls the policy direction regrettable.
"I don't think that poor peoples' money should be, first and foremost, used to benefit our economic interests."
Many of the countries CIDA works in have burgeoning resource development industries and, in many cases, Canadian companies are already there and would like to expand. Oda said helping these countries develop their resources and establish stable economic foundations is the best way to reduce poverty over the long term. CIDA will even help developing countries draft mining legislation to better attract foreign investment, she said. Such investment, she said, builds the economy and reduces poverty.
She pointed to a recently announced CIDA-funded project in which Canadian NGO Plan International Canada is working with the mining company Iamgold to train young people "in occupations directly related to the mining sector or other sectors surrounding this industry.
"These are all skills that can be left behind, that these people can take to other areas," Oda said. When mining companies from other countries, such as China, go into developing nations, she noted, they bring their own workforce.
The policy direction takes place against the backdrop of the federal government's corporate social responsibility strategy which, according to CIDA documents, is aimed at "improving the competitive advantage of Canadian international extractive sector companies by enhancing their ability to manage social and environmental risk." CIDA's role in the strategy is to help developing countries manage the development of minerals, oil and gas "and to benefit from these resources to reduce poverty."
The very title of the federal government's CSR strategy, Building the Canadian Advantage: A Cor-porate Social Responsibility Strategy for the Canadian International Extractive Sector, "suggests that it is corporations that are intended as the real beneficiaries of CSR initiatives," says Catherine Coumans of the group MiningWatch, "with collaborating NGOs following in second place."
The foreign aid link with resource development is likely to be controversial because of the obvious self interest for Canada. As home to about 75 per cent of global mining companies, any policy that helps open up mining markets around the world or smooths the way for companies already there, will benefit Canada. And it raises legitimate questions about what happens when the government's foreign aid direction clashes with our economic interests.
In recent years, some Canadian mining companies have worked to overcome growing concern about the environmental and social impacts of mining around the world, concerns heightened by specific cases in which mining companies were accused of human rights abuses and environmental damage. Many companies have recognized they need a social licence to operate and have adopted corporate social responsibility policies. Partnerships with NGOs, supported by the federal government, are part of this direction.
But linking development assistance to resource development results in mixed motives for CIDA, according to Liberal MP McKay. "Is this for alleviation of poverty, to further our economic and corporate interests, or for gaining influence in particular industries? That has been the problem with CIDA all along: We have mixed motives. Why not just wind up CIDA and put it into the international trade portfolio if that is what it is being used for?"
The Canadian aid agencies who are working with mining companies on the pilot projects announced by Oda last fall defend the initiatives as worthwhile and beneficial.
"When NGOS are working in these countries, should we do nothing, or should we roll up our sleeves and push these companies to do better. It is easy to stand on the sidelines and be sanctimonious," said Plan Canada CEO Rosemary McCarney, a founding member of the Devonshire Initiative, which is based on the belief that the Canadian mining and NGO presence in emerging markets can be a force for positive change.
The policy direction takes place against the backdrop of the federal government's corporate social responsibility strategy which, according to CIDA documents, is aimed at "improving the competitive advantage of Canadian international extractive sector companies by enhancing their ability to manage social and environmental risk." CIDA's role in the strategy is to help developing countries manage the development of minerals, oil and gas "and to benefit from these resources to reduce poverty."
The very title of the federal government's CSR strategy, Building the Canadian Advantage: A Cor-porate Social Responsibility Strategy for the Canadian International Extractive Sector, "suggests that it is corporations that are intended as the real beneficiaries of CSR initiatives," says Catherine Coumans of the group MiningWatch, "with collaborating NGOs following in second place."
The foreign aid link with resource development is likely to be controversial because of the obvious self interest for Canada. As home to about 75 per cent of global mining companies, any policy that helps open up mining markets around the world or smooths the way for companies already there, will benefit Canada. And it raises legitimate questions about what happens when the government's foreign aid direction clashes with our economic interests.
In recent years, some Canadian mining companies have worked to overcome growing concern about the environmental and social impacts of mining around the world, concerns heightened by specific cases in which mining companies were accused of human rights abuses and environmental damage. Many companies have recognized they need a social licence to operate and have adopted corporate social responsibility policies. Partnerships with NGOs, supported by the federal government, are part of this direction.
But linking development assistance to resource development results in mixed motives for CIDA, according to Liberal MP McKay. "Is this for alleviation of poverty, to further our economic and corporate interests, or for gaining influence in particular industries? That has been the problem with CIDA all along: We have mixed motives. Why not just wind up CIDA and put it into the international trade portfolio if that is what it is being used for?"
The Canadian aid agencies who are working with mining companies on the pilot projects announced by Oda last fall defend the initiatives as worthwhile and beneficial.
"When NGOS are working in these countries, should we do nothing, or should we roll up our sleeves and push these companies to do better. It is easy to stand on the sidelines and be sanctimonious," said Plan Canada CEO Rosemary McCarney, a founding member of the Devonshire Initiative, which is based on the belief that the Canadian mining and NGO presence in emerging markets can be a force for positive change.
McCarney dismisses critics who say working with mining companies compromises NGOs. "This is not going to compromise our perspective or our ability to speak out on development practices," she added. Plan is working with the company Iamgold on a $5.7-million CIDA-funded skills training project in Burkina Faso. The company contributed $1 million to the project.
McCarney said Plan thought long and hard before getting involved in the project and made sure it was comfortable working with the company and with the project.
"It took a lot of courage, it also took a lot of homework for us. Our reputation is everything for an NGO. You have to partner carefully and purposefully and have your eyes wide open."
And she said criticism that such projects are "whitewashing" the work of Canadian mining companies overseas is off-base.
"I don't know how working with a mining company or being funded by a mining company to do work that is aligned to what the NGO would be doing in any event . how that whitewashes anything. If there is a problem with the mining company, there is no amount of money that is going to silence a solid NGO."
Chris Eaton, executive director of World University Service of Canada, which is working with Rio Tinto Alcan on a project in Ghana, said his organization is involved in the project because "we think it is important to engage mining firms directly." Like McCarney, Eaton said his organization thought carefully about whether to partner with a mining company and which mining company to work with, and the money involved was not a factor.
The project in Ghana, with a mining company that doesn't have an operation in the country, is to improve planning and service delivery capacities of local governments.
"We are trying to tackle an important development issue that relates to the mining sector in Ghana in a small way, that necessitates engagement with the mining sector - something public funding can be justified for . We are not building the wells for a mining firm so they can buy off a community."
"I don't mind people who don't agree with what we are doing and might have concerns," he added. "What I do resent is the sense that we haven't thought about what we are doing and we are doing this for the money."
Oda says the premise that federal development dollars are benefiting companies involved in projects with NGOs "is totally wrong.
"In no way are public funds being used to increase the profitability (of these companies). What we are trying to do is to say we have an expertise, we have a presence and we have a respect and recognition around the world . and that Canada has an ability to contribute to developing countries' long-term economic futures."
McCarney said Plan thought long and hard before getting involved in the project and made sure it was comfortable working with the company and with the project.
"It took a lot of courage, it also took a lot of homework for us. Our reputation is everything for an NGO. You have to partner carefully and purposefully and have your eyes wide open."
And she said criticism that such projects are "whitewashing" the work of Canadian mining companies overseas is off-base.
"I don't know how working with a mining company or being funded by a mining company to do work that is aligned to what the NGO would be doing in any event . how that whitewashes anything. If there is a problem with the mining company, there is no amount of money that is going to silence a solid NGO."
Chris Eaton, executive director of World University Service of Canada, which is working with Rio Tinto Alcan on a project in Ghana, said his organization is involved in the project because "we think it is important to engage mining firms directly." Like McCarney, Eaton said his organization thought carefully about whether to partner with a mining company and which mining company to work with, and the money involved was not a factor.
The project in Ghana, with a mining company that doesn't have an operation in the country, is to improve planning and service delivery capacities of local governments.
"We are trying to tackle an important development issue that relates to the mining sector in Ghana in a small way, that necessitates engagement with the mining sector - something public funding can be justified for . We are not building the wells for a mining firm so they can buy off a community."
"I don't mind people who don't agree with what we are doing and might have concerns," he added. "What I do resent is the sense that we haven't thought about what we are doing and we are doing this for the money."
Oda says the premise that federal development dollars are benefiting companies involved in projects with NGOs "is totally wrong.
"In no way are public funds being used to increase the profitability (of these companies). What we are trying to do is to say we have an expertise, we have a presence and we have a respect and recognition around the world . and that Canada has an ability to contribute to developing countries' long-term economic futures."
Original Article
Source: ottawa citizen
Author: Elizabeth Payne
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