Rescue of survivors of the Bangladesh garment factory. Some Canadian companies were clients, and Richards says if the government worked more closely with Canadian firms aid could be more effective in improving workers conditions in countries receiving aid
Photo Credit: CBC

Report: Canada could be doing better with its foreign aid

A new report just released by the C.D. Howe Institute, says Canada’s development foreign aid (as opposed to emergency aid) would be more effective if it dealt with the issues of weak governments in recipient ,or host, countries.

The C.D. Howe Institute, a public policy think tank on a variety of economic and social policy issues

John Richards is author of the commentary. He is a Professor in the School of Public Policy, Simon Fraser University in west coast British Columbia and Fellow-in-Residence at the C.D. Howe Institute

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The report is called, Diplomacy, Trade and Aid: Searching for “Synergies,” Although Mr Richards is quick to point out that there are and have been many dedicated people working in the Canadian International Development Agency (CIDA) , he says Canadian foreign aid is not as effective as it could be.

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John Richards, associate professor Simon Fraser University, CD Howe Fellow © courtesy J Richards

He says CIDA’s aid strategies have been criticized by the Auditor General – and many others – as being too broad, with results that are difficult to measure

He points out that the recent disaster in Bangledesh where a garment factory collapsed killing over 1,000 workers has been a wake-up call to the issue.

The building owner was a member of the government and had been resisting improvements and threatening inspectors. Some Canadian firms were clients of the manufacturer.  There has since been an international corporate move, including some Canadian firms, to agree to insist on improvements in working conditions in Bangledesh as a result of the tragedy.

Richards says one way to improve aid results is to work with corporate entities in foreign countries to improve aid results and push for such things as workers conditions and other social improvements.

He argues that the potential for aid and trade “synergies” is greater in the manufacturing than in the resource sector. ” CIDA could, for example, support reputable garment importers or those working within the Bangladesh government, and construct a credible industrial safety regime”, he says.

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The Canadian government has since placed CIDA under the Foreign Affairs Dept. Richards says this will give an increased role to diplomats but it’s unsure if it will increase the effectiveness of Canada’s aid dollars and policies © CBC

 He insists that Canada’s aid has most certainly been of help to many, but that it compared to the effectiveness of some other countries aid, Canada’s record is “mediocre”

The author recommends three development-aid tactics to address weak host-country governance: delivery of aid via NGOs as opposed to host governments; cash-on-delivery aid, which focuses on flexible contracts and aid for defined, medium-term outcomes; and high-profile monitoring of the quality of health and education services by civil society organizations.

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