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
Federal Budget 2012
2012–13
International
Assistance Envelope
(IAE)
Canadian
International
Development Agency
Foreign Affairs and
International Trade
Canada (IAE only)
International
Development
Research Centre
Royal Canadian
Mounted Police (IAE
only)
Natural Resources
Canada (IAE only)
Note: Totals may not
add due to rounding.
2013–14
2014–15
Ongoing
180.7
242.1
377.6
377.6
152.7
191.6
319.2
319.2
15.5
28.8
29.1
29.1
6.2
15.3
23
23
1.3
1.3
1.3
1.3
5
5
5
5
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 $7.7 billion
CCIC analysis of Budget 2012
Fiscal Year
International
Assistance
Envelope
(IAE)
IAE
Percentage
decline
relative to
FY2011/12
Estimated
ODA ($mn)
ODA
Percentage
decline
relative to
FY2011/12
ODA as a
percentage
of GNI
FY2010/11
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
$5,100.7
$5,000
$4,819.3
$4,757.9
$4,622.4
$4,622.4
N/A
N/A
3.6%
4.8%
7.6%
7.6%
$5,511.4
$5,767.4
$5,174.3
$5,112.9
$4,977.4
$4,977.4
N/A
N/A
10.5%
11.6%
14.0%
14.0%
0.34%
0.34%
0.29%
0.28%
0.26%
0.25%
Institutional Impacts
Agency
Canadian
International
Development
Agency
Department of
Foreign Affairs
and International
Trade
Finance Canada
International
Development
Research Centre
Share of IAE in
Percentage share
2010/11 (Total
of the IAE (FY
$4925.73) in
2009/2010)
millions
$3,583.53
72.8%
Departmental cut Departmental
as a percentage cuts by 2014/15
of the total cuts as a percentage
(FY2012/13)
of current budget
84.5%
8.9%
Total dollar cuts
per Department
(for FY2012/13 to
14/15)
$663.5 million
$303.25
6.2%
8.6%
9.6%
$73.4 million
$810.20
16.4%
0
0
$0
$170.88
3.5%
3.4%
13.2%
$44.5 million
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.
CIDA- Geographic programs
Countries of Focus
1. Bolivia
Human Development Index (2011) Position relative to 187 other Cut from funding
HDI countries
108 Lower-middle
Reductions
Colombia
87 Upper-middle
Peru
80 Upper-middle
2. Pakistan
145 Bottom quarter
Ukraine
Reductions
76 Upper-middle
3. Ethiopia
174 Bottom quarter
Reductions
4. Mozambique
184 Bottom quarter
Reductions
5. Tanzania
152 Bottom quarter
Reductions
Non-Countries of Focus
Human Development Index
Cut from funding
6. Cambodia
139 Lower-middle
7. China
8. Malawi
101 Lower-middle
171 Bottom quarter
Completely cut – previously downgraded by
the Conservatives
Completely cut
Completely cut
9. Nepal
157 Bottom quarter
Completely cut
10. Niger
186 Bottom quarter
11. Rwanda
166 Bottom quarter
12. Zambia
164 Bottom quarter
13. Zimbabwe
173 Bottom quarter
Completely cut – previously downgraded by
the Conservatives
Completely cut – previously downgraded by
the Conservatives
Completely cut – previously downgraded by
the Conservatives
Completely cut
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
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No of hte
THANK YOU!!
Fraser Reilly-King
Policy Analyst (Aid)
+1 613 241-7007, ext. 306
freillyking@ccic.ca