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My first year as Minister for International Cooperation has been marked by tremendous change and tremendous promise. We are now positioned for real and substantive progress in the fight to reduce poverty and marginalization in the world's poorest countries as a result of a number of key trends in international cooperation, a significant and sustained increase in the official development assistance budget, and ongoing reform and renewal within CIDA. The global community has reached an unprecedented consensus on goals and targets related to sustainable development - the Millennium Development Goals - and we have agreement on the conditions and resources necessary to achieve them. There is a new relationship between industrialized and developing countries - a relationship of equals with mutual obligations and mutual benefits. There is renewed commitment to development cooperation, since many donor countries, including Canada, have signaled their intention to increase development assistance. As announced in the September 2002 Speech from the Throne, Canada's development assistance budget will grow by eight percent annually, doubling by 2010. This will inject major new resources into the program and enable us to make a real difference in a number of strategic areas, such as basic education and rural development. CIDA's work in the next few years will be guided by Canada Making a Difference in the World: A Policy Statement on Strengthening Aid Effectiveness, which I released in September, 2002, after extensive public consultations. This document sets out key principles for improved effectiveness in our programming, such as local ownership, donor coordination, coherence between aid and non-aid policies including trade, the environment and investment, stronger partnerships and a results-based approach. It also sets out a number of commitments that form the basis for our future program of work. One of the commitments I made in that document was to strategically increase our investments in a select number of the poorest countries. I have identified an initial group of nine: Bangladesh, Bolivia, Ethiopia, Ghana, Honduras, Mali, Mozambique, Senegal and Tanzania. Canada has longstanding cooperation programs in these countries, which have demonstrated an ability to use aid effectively, through commitments to improve governance, respect human rights and end corruption. They all have national plans for poverty reduction, which will provide the framework for our enhanced cooperation with them in key priority sectors. Another pledge I made in Strengthening Aid Effectiveness is to have a greater focus on Africa, the poorest continent. At the G8 Summit hosted by Canada in Kananaskis, Alberta, in June 2002, the G8 launched its Africa Action Plan, which commits the industrialized countries of the world to work in partnership with the countries of Africa. Canada's response to this plan, the $500 million Canada Fund for Africa, was also launched at that meeting and is now in operation. Overall, at least half of the increase in Canada's official development assistance budget will go to programs in Africa, bringing our total commitments to that continent to $6 billion over the next five years. We are taking new steps to strengthen our work in poverty reduction. In response to recent research that shows the critical importance of rural development and agriculture to food security and economic growth, we are revitalizing our work and increasing our investments in this area. I have also begun an examination of our efforts in private sector development, the basic engine of growth in any economy. We will continue to focus on the four social development priorities established in 2000: health and nutrition, basic education, HIV/AIDS and protecting children, with the promotion of gender equality as an integral part of all our efforts. We will also continue to support the efforts of developing countries to meet environmental challenges and we will work with them to increase respect for human rights, strengthen democratic institutions and reduce conflict. The process of internal reform and renewal to meet these challenges and commitments and increase our effectiveness is ongoing. Over the next three years, we will increase the use of new programming approaches based on developing country plans and priorities. We will ensure that CIDA's programming conforms to the locally-owned poverty reduction strategies of developing countries. We will untie the cooperation program to increase aid effectiveness, and to ensure greater local ownership of the development process. We will strengthen our presence in the field for better aid coordination and enhanced policy dialogue and influence with developing countries. Furthermore, we will continue to advocate for developing country interests to ensure that all of Canada's policies support international development, such as the new policy on improved market access for imports from least-developed countries effective January 1, 2003. Finally, we will increase our accountability to the Canadian public, who have entrusted us with their hard-earned tax dollars. Survey after survey tells us that Canadians want to help correct the gross global imbalance that confronts us today. They know that development cooperation contributes to a more secure, equitable and prosperous world, for people in developing countries and Canadians alike. We will re-energize our public engagement efforts over the next few years, to better inform Canadians and to encourage them to become fully participating, committed global citizens. This 2003-2004 Report on Plans and Priorities shows how CIDA plans its work for the next three years within a framework that is based on the Millennium Development Goals. It outlines our priorities and program of work for that period and the results we expect to achieve. I encourage all Canadians to read it, and I respectfully submit it for the consideration of the Parliament of Canada. Minister for International Cooperation 1.2 Management Representation Statement
For over 30 years, CIDA has been administering Canada's Official Development Assistance (ODA) in Africa and the Middle East, the Americas, and Asia. Since 1995, the Agency has also been responsible for Canada's Official Assistance (OA) in the countries of Central and Eastern Europe and the former Soviet Union. CIDA's mandate is to support sustainable development in order to reduce poverty and contribute to a more secure, equitable and prosperous world. In Central and Eastern Europe, CIDA has a supplementary mandate - to support democratic development and economic liberalization as well as international efforts to reduce threats to international and Canadian security. Through its work, CIDA contributes to Canada's three broad foreign policy objectives: promoting prosperity; protecting Canadian and global security; and projecting Canadian values. The interests of Canadians are served by promoting global cooperation, equality and security in a world where industrialized and developing countries are increasingly interdependent. As such, CIDA does not operate alone; collaborative and consultative partnerships - with developing-country governments, Canadian and local civil society, the private sector, regional and multilateral institutions, international financial institutions, other bilateral donors and other Canadian government departments - are increasingly critical to CIDA's work. The most important new directions for the Agency in the next three years, outlined in Canada Making a Difference in the World: Policy Statement on Strengthening Aid Effectiveness1, include: increasing investments in a select group of countries2; increasing focus on Africa; increasing investments in rural development through agriculture and in private-sector development; and transforming the way CIDA itself does business in order to deliver more effectively on its commitments. In addition, the Agency will continue its important efforts to ensure youth are involved in Canada's efforts to make a difference in the world. This new strategic focus will benefit from a renewed commitment by the Government of Canada to increase its investment in international cooperation activities. The September 2002 Speech from the Throne3 included an undertaking that Canada's international assistance will double by 2010. In 2001, the Agency developed a set of Key Agency Results (KARs) to help better align its planning, reporting and programming cycle with its mandate. CIDA's Development Results - the impacts CIDA aims to have in partner countries in the priority areas of economic well-being, social development, environmental sustainability, and governance - constitute CIDA's Strategic Outcomes. Gender Equality and the Environment are cross-cutting themes throughout all Development Results. These results are supported by a number of strategies and management tools. CIDA's Development Results are aligned with the Millennium Development Goals (MDGs)4, a set of international goals and targets for all partners in development cooperation5. The Agency shares accountability with the rest of the international development community for the achievement of these goals and targets. CIDA's defined Development Result priorities over the next three years include, in the area of economic well-being: strengthening its investments in agriculture and rural development; supporting private-sector development; building the capacity to negotiate strong trade partnerships and agreements; and fostering an enabling environment for economic growth. CIDA's three-year priorities for social development are: promoting gender equality with partners in all development programming; and strengthening its programming in basic education, HIV/AIDS, health and child protection. For environmental sustainability, CIDA's three-year priorities include: building partners' capabilities to address global, regional and national environmental issues such as desertification, biodiversity, and climate change; and supporting and promoting environmental and broader socio-economic policy dialogue and programming that directly address environmental issues. The Agency's three-year priorities in the area of governance include: increasing the integration of human rights principles in development programming; continuing to strengthen democratic institutions; and increasing attention to conflict prevention, post-conflict reconciliation and peacebuilding and security. Internally, CIDA is working to improve the strategies and tools used to deliver on its Development Results. For example, the Agency will concentrate a significant proportion of its investments on a selected number of the world's poorest countries committed to good governance. CIDA is also changing to find a better balance between directed and responsive programming, as it aligns itself more closely with the plans and priorities of partner countries. The Agency is moving away from projects towards more program-based approaches which support local ownership and involve greater coordination among donors. It is also engaged in efforts to increase policy coherence and policy-based programming, as well as the untying of some of Canada's aid. CIDA will also work to improve Canadians' perception of the value, efficiency and effectiveness of Official Development Assistance (ODA) and Official Assistance (OA) programs and to increase their involvement in development cooperation. CIDA's Management Results support both Development Results and strategies to achieve them. In this regard, the Agency will continue to strengthen its policy and analytical capacity; to transform itself into a knowledge-based institution and seek to create a more knowledgeable, highly motivated, more representative workforce; and to strengthen its field presence. CIDA will emphasize the use of transparent, consistent and cost-effective business processes and continue pursuing improved practices of stewardship and conservation in Canada and abroad. CIDA is already recognized internationally for its experience in results-based management, and will continue to become a more accountable, results-oriented, continuous-learning organization. The Agency uses three distinct but complementary internal review functions - performance measurement, evaluation and internal audit - as part of its overall performance management and reporting approach. Efforts will continue during 2003-06 to link results at the program, project and Agency levels. The Agency will also proceed with the implementation of its integrated risk management strategy. In 2003, CIDA's continued participation in the current government-wide Modern Comptrollership project will include the development of an integrated management action plan. Participation in this project reinforces CIDA's commitment to improve management practices in support of effective development cooperation. In support of the Government-on-Line (GOL)6 initiative, CIDA will continue putting in place policies, systems and processes to facilitate electronic communication between the Agency and Canadians (e.g. for submission of project proposals). CIDA plans to make the most of this promising point in its history. Its development goals are clear and aligned with those of the international community. There is international consensus on the principles and strategies to achieve those goals. The Agency is already engaged in a process of internal transformation and modernization, and the international assistance budget will be increased over the coming years. All of this will help CIDA fulfil its mandate in a more effective and sustained manner, for the benefit of the people of the developing countries and the people of Canada. For more than thirty years, the Canadian International Development Agency (CIDA) has been responsible for administering most of Canada's Official Development Assistance (ODA) in countries in Africa7 and the Middle East8, the Americas9, and Asia10. In 1995, the Agency also assumed responsibility for Official Assistance (OA) programs in the countries of Central and Eastern Europe and the former Soviet Union — the Countries in Transition11— where it has a mandate to support democratic development and economic liberalization. CIDA is engaged in development cooperation with over 120 developing countries through a range of mechanisms. While the Agency continues to cooperate directly through programs and projects, it is increasingly emphasizing policy influence and dialogue, as a means of strengthening the effectiveness of its assistance. CIDA undertakes activities that contribute to economic well being, social development, environmental sustainability, and governance in partner countries. Recently, CIDA was recognized by the members of the Development Assistance Committee (DAC)12 of the OECD13 for its special ability to help lead the international community towards "actions which push out the frontiers of international cooperation, including areas such as gender equality and capacity building".14 As stated in CIDA's Sustainable Development Strategy 2001-200315 (SDS), CIDA's raison d'être is sustainable development. For many years, the Agency has supported growth in developing countries in ways that are more equitable and ecologically sustainable, integrating the social, political, environmental and cultural aspects of development. CIDA's Sustainable Development Strategy promotes the continued integration of sustainable development principles in all Agency programs. The SDS is also the Agency's Business Plan and as such, this Report on Plans and Priorities (RPP) updates CIDA's SDS for 2003-2004. CIDA's mandate is to support sustainable development in order to reduce poverty and contribute to a more secure, equitable and prosperous world. This mandate is supplemented by that of its Countries in Transition program, which is to support democratic development and economic liberalization in Central and Eastern Europe, and to support international efforts to reduce threats to international and Canadian security. CIDA's provision of International Assistance is vital for meeting Canada's broader foreign policy objectives, which are stated in the 1995 Government Foreign Policy Statement, Canada in the World:
In support of its mission, CIDA seeks to attain the following two-fold objectives17:
In addition to being guided by the three pillars of Canada's foreign policy — prosperity, security and Canadian values — CIDA operates in the context of increased international interdependence. Today, effective multilateral development cooperation must recognize that industrialized and developing countries are interdependent, and that Canadian interests are served by promoting global cooperation and equality. CIDA invests in initiatives to strengthen the global economy in order to increase prosperity and employment. CIDA also believes that a balanced approach to sustainable poverty reduction includes action to stimulate economic growth. Poverty reduction is at the heart of CIDA's work, since it impacts so directly on other markers of human and social well-being - including education, health and nutrition, environment, and security. Indeed, poverty reduction is clearly now the overarching goal of most other bilateral donors and multilateral aid agencies. Economic research18 suggests that this is the right approach, since it has been shown that every additional percentage point in household consumption in developing countries reduces the share of people living in extreme poverty by about two percent (2%). Poverty reduction, economic well-being and sustainable development cannot be achieved in conflict zones, nor in post-conflict zones with weak governance institutions. In addition, evidence suggests that widespread poverty may contribute to social instability and extremism. By working towards long-term development goals, including poverty reduction, development cooperation plays a significant role in promoting global peace and security. CIDA's work benefits all Canadians since it contributes to this global agenda and to the prosperity of other countries. CIDA's work in Afghanistan (see Box 1: CIDA helps rebuild Afghanistan) exemplifies the Agency's commitment to addressing the root causes of instability in the world. CIDA's objective in Afghanistan is to help end human suffering and deprivation, and to strengthen the conditions that support stability and security.
Finally, development cooperation — which is rooted in the values of social justice and aims to correct gross global imbalances — is the right thing to do, as a matter of justice, ethics and human solidarity. Sustainable development is about balancing human needs with economic interests and environmental constraints and cultural contexts. The human dimension of development is about enlarging human choices and building human capabilities so that people may lead lives that they value. Canadians, strong supporters of development assistance21, understand that global imbalances — in wealth, environmental quality and standards, freedom, democracy, security, and opportunities for economic and social development — can prevent people from achieving their full potential and leading productive, creative and fulfilling lives. CIDA engages in development cooperation in essentially four ways:
Influencing policy and participating in policy dialogue have been important elements of all of CIDA's programming. Increasingly, they are used as a means of strengthening the effectiveness of assistance, ensuring coherence among Canadian government departments, and to enhance the interests of developing country partners. Grants, contributions and other transfer payments are major mechanisms of program delivery; (see Annex I - Financial Information for more information). In 2003-2004 this will amount to $2,230 million, or 91.2 % of CIDA`s total expenditures, with the remaining 8.8% of expenditures comprising the Agency's operating budget. The budget for CIDA's expenditures is drawn from the International Assistance Envelope (IAE), a portion of the federal budget under the Foreign Affairs portfolio which is assigned for Canada's Official Development Assistance (ODA)23 and Official Assistance (OA)24 initiatives. ODA accounts for 96% of the envelope, while OA accounts for 4%. Introduced in the February 1991 budget, the IAE is shared among a number of federal government departments (see Section 6.0 of this report for a breakdown of the IAE). CIDA is directly responsible for managing approximately 80% of the IAE. CIDA does not operate alone; its partners include country governments, other Canadian government departments, civil society (including NGOs, community-based organizations, academic and research organizations), the private sector in Canada and in developing countries, regional and multilateral institutions, international financial institutions (e.g. The World Bank25, International Monetary Fund (IMF)26), and other bilateral donors. During the past 50 years, the theory and practice of development cooperation have evolved considerably. In the 1950s, development aid or assistance emphasized reconstruction; state planning was the focus in the 1960s, and heavy reliance on market-based solutions and structural adjustment typified the late 1980s. Governments and development practitioners now realize that these approaches were too narrowly focused and often failed to recognize the cultural and political context in which development cooperation takes place. Today, there is an unprecedented international consensus on how to make development cooperation more effective. This consensus has converged on a series of principles that are widely seen as key elements of good development practice (see Box 2: Principles of Aid Development).
These principles point to a shift away from development assistance to a more comprehensive approach which includes a more balanced relationship between donor and recipient countries; coordinated programming and policy efforts among donors; and greater coherence on issues such as trade, immigration, health, and the environment. Consensus on these principles, and goals and approaches for development, were strengthened at recent key international meetings - the World Trade Organization (WTO) Ministerial Conference in Doha, Qatar30 in November 2001, the UN Monterrey Conference on Financing for Development31 in March 2002, the Kananaskis G8 Summit32 in June 2002, and the World Summit on Sustainable Development (WSSD)33 in Johannesburg in August 2002. For governments, aid agencies and multilateral institutions, sustainable poverty reduction is now the overarching goal, and the Millennium Development Goals (MDGs), issued by the United Nations in 2001, provide a powerful set of targets (see Box 3: Millennium Development Goals). These goals have been incorporated into CIDA's Strategic Outcomes.
Development Challenges Working towards sustainable development, which is CIDA's mandate, continues to be challenging and complex. Development which is equitable and environmentally sustainable, and which strengthens the economic, political and socio-cultural capabilities of women and men, girls and boys, involves the interplay of many areas. These areas include economic well-being, social development, environmental sustainability, and good governance, as reflected in CIDA's Key Agency Results. Sustainable development also combines concern for equity and fairness (ensuring the rights of the poor and of future generations), with a long term view. The state of the world's population has improved tremendously in the 30 years of Canada's involvement in international development. All the main indicators of human well-being - life expectancy, health and education - show marked improvement. Between 1970 and 2000, life expectancy at birth increased from 59.9 to 66.9 years. The global infant mortality rate was almost halved35, and literacy has doubled in countries with low human development. Canada has played an important role in facilitating these changes. Despite these successes, some daunting and complex problems persist, problems which the MDGs36 were intended to track and address. The United Nations Development Programme (UNDP)37 cites grim statistics about global economic well-being, in particular, current levels of disparity in global wealth. For example, the income of the richest 1% of the world is equivalent to that of the poorest 57%, and debt burdens and low levels of Foreign Direct Investment (FDI) in developing countries continue to impede efforts to reduce poverty. Failure to reduce poverty in sub-Saharan Africa, where the proportion of people living on one dollar a day was the same at the beginning of the 1990s as it was at the end, is a grave concern. Poverty often affects children disproportionately and most acutely. In 50 countries with almost 40% of the world's people, more than one fifth of children under the age of five are underweight38. Poverty reduction is the overarching goal of development cooperation efforts to increase levels of economic well-being, and significant inroads have been made in this regard over the past decade. During this time, a new development framework has emerged, reflecting changes in how poverty is defined, increasing the emphasis on income and non-income poverty outcomes39. Despite some successes, global levels of poverty remain high and challenges remain. Poverty impedes social development, since it is one of the root causes of problems of hunger, lack of education, and disease. For example, while malnutrition rates among children under five in the developing world fell from 46.5 percent in 1970 to 27 percent in 2000, 150 million children in low- and middle-income economies are still malnourished; at current rates of improvement 140 million children will be underweight in 202040. Worldwide, primary-school enrollments have been increasing, yet 97% of the 113 million children of primary-school age not enrolled in school are from developing countries41. Sixty percent of these are girls and of the estimated 854 million illiterate adults in the world, 544 million are women.42 Every year, 11 million children die of preventable causes, mostly due to the lack of simple and easily-provided improvements in nutrition, sanitation, maternal health and education. The HIV/AIDS pandemic has also reached troubling proportions. According to an annual United Nations report on HIV/AIDS released in November 200243, 5 million people contracted the virus in 2002, and 3 million people died from AIDS-related illnesses, bringing the total number of people living with HIV/AIDS to 42 million worldwide -- 90% of them in developing countries and 75% in Sub-Saharan Africa. Poverty reduction, health, food and nutrition, are intricately linked to environmental sustainability. This interdependence is particularly strong in countries that have high proportions of rural, agrarian populations, and have economies that are largely dependent on natural resources. Urban dwellers also face daunting challenges. Traditional hazards like the lack of safe drinking water, sanitation and waste disposal routinely lead to outbreaks in diseases that have been eradicated in the developed world, like diarrhoea, malaria and cholera. Air pollution - both indoor and outdoor - is also a serious health threat; the World Health Organization (WHO)44 recently reported that air pollution fatalities number 3 million each year and outnumber traffic fatalities by three to one. An abiding lesson of the past decade is that national political institutions are not keeping pace with the governance challenges of a more interdependent world. Global progress on political freedoms has been uneven. Seventy-three countries with approximately 42% of the world's population still do not hold free and fair elections and 106 governments still restrict political and civil freedoms45. It is widely accepted that without effective, transparent governance, sustainable development is impossible. An important challenge in development is to encourage progress in the area of governance. Yet corruption presents a considerable barrier to this progress. Corruption is a major global problem in its own right, the greatest victims of which are overwhelmingly the world's poor46. The MDGs47 reflect these development challenges and the UN has signaled that an intensive period of implementation - using effective approaches, based on country-ownership and partnership - is urgently needed in order to meet these goals. All the development partners and actors involved are aware that a doubling of current global levels of aid is needed to reach these objectives. Numerous developing countries have already committed themselves to devote their energy and resources to the achievement of the MDGs through their Poverty Reduction Strategy Papers (PRSPs). The international consensus and commitment to reach the MDGs comes at a time when levels of development assistance provided by industrialized countries has fallen to historic low levels among the industrialized nations. Only five donors - Denmark, Luxembourg, Netherlands, Norway and Sweden - currently meet the UN's aid target of 0.7% target as a share of national income, established in 197048. Of 22 donor countries of the Development Assistance Committee of the OECD, Canada ranked 19th49 in 2001 in terms of this target. Both in Canada and internationally, Canada is being encouraged to raise its level of spending on development assistance. Canada's commitment to reducing the gap between rich countries and poor, a goal deeply rooted in Canadian values of humanitarianism, equality and fairness, is clearly reflected in the 2003 federal budget. Canada's International Assistance envelope will see an annual eight percent increase this year, through 2004-2005 for a total increase of $1.4 billion. Canada is responding in concrete ways to the call by the OECD-DAC to increase its support for poverty reduction. Eventually, Canada would like to once again be one of the top ten donors in the world. This budget, which significantly increases Canada's development assistance, is putting us on the right path. Challenges in Geographic Regions In addition to challenges to the entire international community there are particular regional challenges in the countries of the world's developing regions: Asia, Africa and the Middle East, the Americas, and Central and Eastern Europe. Underlying all of these regional challenges is a heightened attention to global security following the events of September 11, 2001 and an awareness that terrorism affects every region of the world. Development challenges are most acute in Africa. Many African countries, particularly in Sub-Saharan Africa, have been burdened with slow economic growth and brutal conflict. HIV/AIDS continues to have a growing impact on the continent: more than 12 million African children have now lost one or both parents to AIDS; life expectancy is decreasing16; and women now represent an estimated 60% of those affected. AIDS has been directly linked to the food crisis in southern Africa and in the Horn of Africa. In Africa, attempts to resolve these problems are often hampered by a lack of human and financial resources, natural disasters, fragile democratic institutions, post-conflict environments and inadequate capacity, particularly governmental, to foster sustainable development. In the Middle East, there may be a need for humanitarian assistance and reconstruction in a post-conflict situation in Iraq. In Asia, Afghanistan emerged as a focus area in 2002-2003. That country will continue to be a major focus in 2003-2004. This year CIDA will complete a two-year Programming Strategy for Afghanistan (see Box 1: CIDA helps rebuild Afghanistan). In the rest of Asia, poverty levels remain high51, despite rapid economic growth in some countries. This year, the region will continue to feel the impacts of slowed growth of major trading areas (US, Europe and Japan) which will limit Asian exports and could slow necessary reforms. The region will also see the emergence of rules-based global trading systems which will require restructuring of governance processes and adaptation to the growing role of China as a major exporter. Military action against terrorism may intersect with unrelated local and regional tensions, such as cross-border conflict between India and Pakistan, and civil unrest in Indonesia. In addition, the region is challenged with a need to increase agricultural production in areas affected by landmines, but also, in some areas, soil degradation and water depletion, while managing the transition to more urban-based, industrial economies. The Latin America and Caribbean region has the highest levels of social and economic inequality in the world. Economic prospects in most nations of the region are poor in the short term. The deteriorating situation in Argentina, which has seen the re-emergence of Argentina as a significant demandeur for multilateral and bilateral assistance, has also affected neighbouring countries in the Southern Cone. Volatility and vulnerability remain high, violence and insecurity (drug-related, poverty-related and other) have been increasing in the region, and this trend is likely to continue. Illegal trade in narcotics and small arms is making inroads and the entire region has been affected by the intensifying conflict in Colombia following the breakdown of peace talks, recent elections and increased U.S. military assistance. It is in this context of instability that the region pursues economic integration, and trade and development issues, particularly through the forthcoming Free Trade Agreement of the Americas (FTAA)52. While there have been notable successes in the Countries in Transition of Central and Eastern Europe, there remain significant transition and development-related challenges that need to be addressed. Eight countries will "graduate" to membership in the European Union (EU) in 2004/2005. Russia continues to increase its international stature based on a more stable political and economic climate. In the Balkans, transition is starting in earnest now that regional, ethnic and religious conflict is subsiding. Endemic poverty and tenuous human security conditions continue in the Southern Caucasus and Central Asia. While CIDA will continue to support the transition needs in Russia, the Ukraine and the Balkans53, the Agency is also responding to the increasing call for Canadian involvement in development programming in the Southern Caucasus and Central Asia. CIDA strives to learn from its experiences and to promote continuous learning. It uses many sources of information to improve its programming and management effectiveness, including its own monitoring, evaluation and performance reporting, internal and external research and analysis, as well as the lessons learned and best practices gleaned from working with other donors and from participating in international fora. As a member of the OECD-DAC54, CIDA also undergoes a review by peer countries every four years. The 2002 Peer Review55, which, for the first time, also involved two observers from an African-based organization, contains a number of valuable findings for the Agency. CIDA continues to look for new ways to acquire lessons learned, to assess their implications and to enhance their application at various levels throughout the organization. The following are highlights of recent lessons learned, including some of those which were identified in the DAC Peer Review, which have influenced CIDA's new directions for 2003-06 (see Section 3.4):
CIDA is changing the ways in which it operates, in response to lessons learned, but also to the changing nature of international cooperation, the global consensus on MDGs and an emphasis on implementation and achieving results. The Agency's Policy Statement on Strengthening Aid Effectiveness63 clearly outlines CIDA's plans to implement principles of effective development (see Box 2: Principles of Effective Development), and provides the framework for distributing the first significant and sustained increase in the Agency's budget in more than a decade. This annual eight percent (8%) increase, announced at the UN Conference on Financing for Development64 in March 2002, will double Canada's current aid level by 2010, with at least half of this increase devoted to Africa. The Canada Fund for Africa provides resources in addition to those resulting from the increased level of development assistance announced in the 2003 federal budget. These new directions are reflected in the Agency's plans and priorities. The following are the important new directions for the next three years:
In 2004, CIDA will assess progress in implementing its policy statement on Strengthening Aid Effectiveness with a view to making mid-course corrections should they be warranted.
Risk refers to the uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization's objectives70. CIDA acknowledges that it is in a high risk business: the Agency is providing aid to countries that are characterized by political, social and environmental challenges . These are the countries where assistance is often needed the most. Political and economic instability, conflict, humanitarian and natural disasters, and corruption are among the risks faced in developing countries. High risk, especially in international development, is not in and of itself negative; rather it indicates that development cooperation is complex and CIDA must be aware of its riskier aspects in order to manage programming appropriately. Over the past year, CIDA has been developing a comprehensive approach to understanding, managing and communicating risks from an organization-wide perspective. CIDA's Integrated Risk Management Framework, which will be finalized in 2003-04, will operate at three levels: the Agency level, the program level and the project level. At each level, risks are not only identified, but prioritized, and mitigation strategies are specified.
4.0 Plans and Priorities by Strategic Outcomes In 2001, CIDA developed a set of Key Agency Results (KARs) to help better align its work with its mandate. The KARs are divided into three areas – Development Results (CIDA's Strategic Outcomes), Enabling Results (strategies), and Management Results (tools) – which collectively provide direction for the Agency's actions, efforts and priorities, both in the short and the longer term. The three KARs areas are connected, integrated and mutually supportive: efficient management supports effective enabling programming, which, in turn, contributes toward Development Results. The KARs are fully consistent with the Millennium Development Goals (MDGs), and additionally, reflect the special and specific nature of Canada's work The Development Results constitute CIDA's Strategic Outcomes. These Strategic Outcomes were used for the first time in the 2002-03 Report on Plans and Priorities72. The KARs are defined as follows:
Since CIDA's program represents only a small share of the global resources available for international development, the Agency assumes a shared accountability with the rest of the international development community for achieving development results. CIDA is fully accountable, however, for achieving enabling and management results. CIDA's Strategic Outcomes model is presented in Chart 1: CIDA's Key Agency Results below. Chart 1: CIDA's Key Agency Results Framework
4.2 Sustainable Development Strategy Sustainable development - development which is equitable and environmentally sustainable, and which strengthens the economic, political and socio-cultural capabilities of women and men, girls and boys - is CIDA's business. Hence CIDA's Sustainable Development Strategy (SDS) 2001-2003: An Agenda for Change74 is the Agency's "evergreen" business plan. The SDS provided a framework of goals, objectives and strategies that would help the Agency align its work more explicitly with its mandate and outlined a process of continuous improvement in the way CIDA works. CIDA's Key Agency Results (KARs), developed in 2001, represent the core elements and commitments of the SDS and provide a framework that is more oriented toward Results-Based Management. The 2002-03 Report on Plans and Priorities (RPP)75 was the first to use to these Key Agency Results (KARs) and as such, it updated the SDS. This 2003-04 Report on Plans and Priorities provides a further update. Progress on implementing CIDA's Sustainable Development Strategy is reported annually in the Departmental Performance Report (DPR)76. 4.3 Plans and Priorities: Summary The chart below summarizes CIDA's strategic outcomes and priorities for the next three years. Chart 2: Summary of CIDA's Plans and Priorities by Strategic Outcome
4.4 Plans and Priorities: Development Results As noted previously, CIDA's Development Results constitute its Strategic Outcomes and are at the heart of its raison d'être. CIDA plans to achieve Development Results in four priority areas: economic well-being, social development, environmental sustainability, and governance. In addition, the Environment and Gender Equality remain crosscutting themes that touch each of the four Development Results areas. Although these results areas are presented separately, they are interdependent elements of development: economic well-being, for instance, depends on good governance. Strategic Outcome Statement Equitable economic growth and improved standards of living of the poor. Targets In cooperation with partners in developing countries, partners in Canada, other donors and the international development community, CIDA will work towards achieving the targets in the MDGs77 related to economic well-being:
Context Experience has shown that economic growth is a fundamental prerequisite for reducing poverty in the developing world. At the same time, the potential of economic growth to reduce poverty is severely restricted if the poor do not have access to the assets to allow them to take advantage of opportunities emerging from such growth. CIDA is committed to promoting the economic well-being of individual women and men, families, and communities. For example, investments in the agriculture sector provide an economic underpinning for investments in the health and education sectors as well as in water and sanitation. The private sector - with agriculture often the largest single part of the private sector in developing countries - is widely recognized as a powerful force for poverty reduction. A fair, multilateral trading system that promotes trade expansion is also an important element of economic growth. Finally, fostering an enabling environment by supporting the reform of both public and private sector institutions has been shown to be critical to achieving economic well-being. CIDA's programming responds to and supports the prioritization of these areas by partner countries. Priorities and Plans Over the next three years, CIDA's priorities for the achievement of these results are to:
In the area of strengthening its investment in agriculture and rural development, CIDA will:
In the interim, CIDA will continue to:
In the area of supporting private sector development CIDA will revise and complete its policy framework for private sector development programming in 2003. CIDA's plans also include initiatives to:
CIDA will support the building of trade capacity through initiatives that:
CIDA will foster an enabling environment for economic growth by helping reform the public and private sectors through initiatives that:
Strategic Outcome Statement Improved quality of life of women and men living in poverty, through enhanced social services, management of the social impact of reform, and progress toward gender equality. Targets Through cooperation with other donors and the international development community, CIDA will work to achieve the MDGs related to social development:
Since the eight MDGs are mutually reinforcing, working towards the MDGs related to social development will also help meet other MDG targets, such as that related to hunger:
CIDA's social development spending targets reflect its commitment to the MDGs. Social Development Priorities: A Framework for Action (2000)97 established CIDA's plans to double its investment in social development over a five-year period. Specific targets have been set in four areas:
Total Social Development Priority spending between 2000 and 2005 will be $ 2,811 million. Context Promoting social development - through education and improvements to health and nutrition - is central to reducing poverty and advancing sustainable development. CIDA's Social Development Priorities: A Framework for Action (2000)98 brought greater emphasis to social development in four priority areas: health and nutrition, HIV/AIDS, basic education, and child protection. Gender equality is critical to success in these areas. CIDA's plans and priorities for social development are guided by this Framework and the Action Plans subsequently developed for each of the four areas. These areas of programming also reflect and support increased emphasis and investment by many partner countries in social development. Priorities and Plans Over the next three years, CIDA's priorities for the achievement of these results are:
Equality between women and men is critical to sustainable development everywhere and to effective social development, and is therefore a cross-cutting theme throughout all of CIDA's work. In the next three years, CIDA plans to promote Gender Equality with partners in all development programming through the continued implementation of its Policy on Gender Equality (1999) which uses a rights-based and results-oriented approach to the integration of gender equality in all CIDA policies, programs and projects. The Agency also plans to:
Over the next three years, CIDA will support basic education through ongoing implementation of its Action Plan on Basic Education (2002)100, which calls for access to and completion of a free and compulsory primary education of good quality by all, the elimination of gender disparities in education, and the improvement of the quality of basic education. CIDA also plans to:
CIDA's efforts to combat HIV/AIDS will be guided by its HIV/AIDS Action Plan (2000)105, which calls for HIV/AIDS to be linked to other development priorities, focussing on the promotion and protection of human rights and the support of vaccine and microbiocide research and development. In all its efforts, CIDA will be enhancing the gender dimension in its HIV/AIDS projects and programs. The Agency plans to:
In the areas of Health and Nutrition, CIDA will continue implementation of its Action Plan on Health and Nutrition (2001)107 which recognizes the importance of promoting and protecting the right to the highest attainable standard of physical and mental health and identifies several priority areas. CIDA also plans to:
In the area of Child Protection, CIDA will implement its Action Plan on Child Protection (2001)124, which articulates a rights-based approach125 for working with children in need of special protection from exploitation, abuse and discrimination. The Agency also plans to:
Two unique examples of projects that combine education and child protection are being implemented in Colombia.
4.4.3 Environmental Sustainability Strategic Outcome Statement Improved environmental sustainability, through the protection, conservation and management of the diversity and integrity of the environment. Targets In collaboration with the international development community, CIDA will work towards achieving the targets of the MDGs on Environmental Sustainability:
Context As both a strategic outcome and a cross-cutting theme, CIDA is committed to fully incorporating environmental considerations into its policies and programs. The Agency draws on innovative international work to link global and regional environmental issues to on-the-ground development priorities such as clean water, adequate food and the sustainable use of natural resources. By focussing on strategic relationships, CIDA works in partnership with many players to influence the national and international agenda on the environment and development nexus. CIDA is working with other Canadian government departments to identify ways in which Canada can help strengthen developing-country capacity to implement Multilateral Environmental Agreements (MEAs), while meeting Canadian objectives for these agreements. The Global Environment Facility (GEF)130, the major multilateral financing mechanism for funding MEAs, is critical to building this capacity. CIDA, as a member of the GEF Council, is working on key policy objectives for governance and replenishment to ensure a strong continued role for the GEF131 in MEA support. Of the various MEAs, Canada, through CIDA, plays a strong leadership role in the UN Convention to Combat Desertification (UNCCD)132. As President of the fifth meeting of the Conference of the Parties to the UNCCD, Canada is ideally positioned to play this leadership role. CIDA has responsibility for both domestic implementation and Canada's international leadership. Priorities and Plans The Agency has identified the following priorities for the next three years towards achieving environmental sustainability:
The area of building partners' capacities to address global, regional and national environmental issues such as desertification, biodiversity, and climate change includes plans to:
In the area of supporting and promoting environmental and broader socio-economic policy dialogue and programming that directly address environmental issues, CIDA's plans are to:
Strategic Outcome Statement Improved governance structures and institutional capacities in partner countries; strengthened civil society; enhanced respect for rights and democratic principles. Targets The Millennium Declaration144, the origin of the MDGs145, commits states to the promotion and protection of human rights, democracy and good governance. Moreover, many of the targets of the MDGs reflect the international human rights obligations and commitments that are articulated in treaties and declarations such as the Universal Declaration of Human Rights146. Context Human rights, democratization and good governance (HRDGG) can be considered an objective of development, working to ensure that women and men live in dignity. HRDGG can also be a means to achieve development ends by providing the environment in which development efforts are more likely to produce the desired results. For example, as UN Secretary-General Kofi Annan recently remarked: "Good governance is perhaps the single most important factor in eradicating poverty and promoting development."147 CIDA seeks to enhance respect for human rights as the foundation of equitable and sustainable development. This includes integrating human rights into development programming as well as supporting specific human rights initiatives such as the creation of and support for national human rights institutions, and support for human rights education and human rights organizations. CIDA also works to strengthen democratic institutions to increase efficiency, accountability and transparency, areas which are proving to be increasingly critical for economic growth. This includes supporting improvements to electoral systems, legislatures, legal bodies, public administration, the media and federalism. Furthermore, strengthening civil society helps ensure that marginalized groups often excluded from decisions that affect their lives, and from the benefits of development, have a voice in the development processes, such as in the preparation of PRSPs. The international community has also recently recognized that security for individuals and states are complementary and necessary components of sustainable, poverty-reducing development and an integral aspect of good governance and public-sector management148. CIDA is therefore putting more emphasis on working with partner countries in the areas of conflict prevention, post-conflict reconciliation, and peacebuilding, as well as building legitimate and accountable systems of security to prevent conflict and discourage terrorism. Priorities and Plans The Agency has identified the following priorities for the next three years in the area of governance:
The area of increased integration of human rights principles in development programming includes plans to:
The area of continued strengthening of democratic institutions, includes plans to:
Increased attention to conflict prevention, post-conflict reconciliation, peacebuilding and security includes plans to:
CIDA's Enabling Strategies represent the Agency's approach to achieving a well-chosen, optimal portfolio of international programs. CIDA's enabling strategies are: appropriate programming orientation, appropriate sectoral and thematic focus, appropriate geographic focus, and engaged Canadians. These strategies are based on the international principles of aid effectiveness160 and reflect trends in the strategies of CIDA's Canadian partners as well. The principles include local ownership, improved donor coordination, stronger partnerships, a results-based approach and greater coherence between aid and non-aid policies. The successful implementation of these strategies creates the enabling environment for achieving long-term development impacts. 4.5.1 Appropriate Programming Orientation Appropriate Balance between Directed and Responsive Programming Responsive programming is the means by which CIDA supports activities designed and delivered by CIDA's civil society partners and private sector partners, within CIDA's mandate and priorities. Directed programming, on the other hand, implies the direct involvement of CIDA in the design and management of initiatives. A third type of programming - core funding - represents institutional support for partners such as international NGOs, other development agencies, developing-country organizations and institutions. As such, this support is linked to an organization's mandate, rather than to specific activities. The challenge for CIDA is to strike the right balance between these programming types, while reflecting CIDA's new policy directions. . CIDA has a long and successful tradition of responsive programming with its Canadian and developing-country partners. Responsive programming has, for example, supported the establishment of mutually beneficial partnerships between Canadian organizations and their counterparts in developing countries. These partnerships mobilize the development knowledge, experience and creativity of civil society and the private sector, both in Canada and in developing countries. CIDA's financial support leverages other sources of funding, and Canadian partners remain among the strongest advocates of Canada's development assistance program. CIDA can build on these strengths as it moves towards greater emphasis on local ownership and enhanced partnership. It is increasingly important that programming respond to the stated needs and priorities of developing-country partners, such as those expressed in national development strategies and PRSPs. The Agency is already engaged in this shift. As indicated in the Policy Statement on Strengthening Aid Effectiveness161, CIDA will develop an approach that prioritizes responsive programming that is supportive of nationally owned poverty-reduction strategies. In 2003-04, CIDA will undertake a review to ensure enhanced consistency between partners' programming and CIDA's new directions and will continue discussions with partners on how to achieve this. Over the next three years, CIDA will also undertake analysis to identify opportunities to move to new programming approaches as they emerge in Africa and the Middle East, recognizing that differing country, regional and institutional situations demand a mix of programming modalities. In the Americas, the more mature economic, political, and policy environments of many partner countries favour greater use of responsive programming. In Asia, the current ratio of about 75% directed and 25% responsive will be maintained in 2003-04. Responsive programming is highest in China due to greater Canadian interest. Over the next three years, programming in the countries of Central and Eastern Europe will become more directed, focused and targeted -- in some countries, by changing the proportion of directed versus responsive programming, in others, by focussing expenditures on countries within a sub-region or in a few key sectors. With its Canadian partners, CIDA will explore new ways to combine the strengths of both directive and responsive approaches. As contribution agreements for Canadian partners expire and as partners submit new proposals, CIDA will continue to guide partners towards the Agency's new directions. Consensual and Collaborative Partnerships CIDA's partners include developing-country governments, civil society (such
as NGOs, community-based organizations, academic and research organizations)
in Canada and in developing countries, the private sector, regional and multilateral
institutions, other bilateral donors, and other Canadian government departments.
Consensual and collaborative partnerships are critical to the creation of an
enabling environment for effective and sustainable development. Donors, including CIDA, its Canadian partners and executing agencies, have a new role in developing countries as partners and facilitators rather than as executors of projects. This role focuses on strengthening, through policy dialogue, the capacity of developing-country partners to progressively take more control over all aspects of their development. CIDA will firmly situate its country-programming orientations within the locally- owned frameworks identified by developing countries, particularly through the PRSP process, when CIDA is satisfied that this process involves a legitimate participatory approach. An important step towards achieving true partnership between donors and developing-country partners is the coordination of donor activities, led by developing-country partners wherever possible, and harmonization of aid practices. This will help reduce transaction costs, build country capacity and improve development effectiveness. As indicated in the Policy Statement on Strengthening Aid Effectiveness162, CIDA is committed to redoubling its efforts to achieve greater harmonization between CIDA's processes and procedures and those of other donors. CIDA currently participates in a wide variety of donor coordination activities, as well as joint project and program funding with other donors, which vary by country circumstances. For examples of CIDA's involvement in donor coordination, see Box 17: Education Sector-wide Approach (SWAp) in Burkina Faso and Box 18: Strengthening Human Rights in Bolivia. Over the next three years, CIDA will increase these activities, and continue to assess its regulatory and operational environment to determine where it may need additional authorities to engage in joint funding approaches. The Agency will also work to apply the new international principles and practices for donor harmonization which were adopted at the High Level Forum on Harmonization in February 2003 and which the Agency helped to identify. CIDA's partnerships with multilateral organizations, such
as the United Nations163, and international financial institutions
(IFIs), such as the World Bank164 and the International Monetary
Fund (IMF)165, are also important. Today, Canada delivers
about one-third of its total development assistance through multilateral channels,
and multilateral disbursements account for one quarter of CIDA's budget. Strengthening
coherence, focus, selectivity and comparative advantage within the multilateral
system will continue to be a strategic approach for the Agency. In 2003-04,
CIDA will examine how to make multilateral organizations more effective and
coherent, how to use them and the knowledge they possess to improve CIDA's policy-making
and country programming, and how to ensure multilateral and country-programming
channels are better coordinated. The Canadian Landmine Fund171 (see Box 16: Interdepartmental collaboration on landmines) illustrates how CIDA contributes to a horizontal federal government initiative on landmines.
New Programming Approaches In the coming years, CIDA will continue to reorient its programming in the poorest countries towards new programming approaches that are based on the principles of aid effectiveness, moving from traditional project-based approaches toward more programmatic forms of development cooperation. New programmatic approaches ensure that projects are integrated into comprehensive strategies that support implementation of locally-owned programs of development. At the broadest level, the Comprehensive Development Framework (CDF)177 and the Poverty Reduction Strategy Paper (PRSP)178 provide the frameworks for donors to develop programming that is consistent with developing-country priorities. Programming could include donor support to a national poverty-reduction plan, a national plan for development in a sector such as health (the Sector-Wide Approach, or SWAp) or a multi-country program to manage shared natural resources, such as a river basin. Donors may contribute to a common pot of funds or support specific activities related to the national plan. Program-based approaches all share the following characteristics: leadership by the host country or organization; a single program and budget framework; donor coordination and harmonization of procedures; a strong emphasis on strengthening government capacity; and the gradual devolution of management to local partners. The extent and pace of this devolution is based on a careful risk analysis and determined in collaboration with all partners. The shift to new programming approaches has some very real implications for programming, practices and behaviour for CIDA and other donors. For example, supporting local ownership often implies new models for capacity building, moving away from North-South technical assistance to South-South cooperation. The harmonization of donor procedures will require increased flexibility and willingness on the part of donors like CIDA to agree to a common set of shared donor processes, or, where feasible, that are based on the procedures in place within a recipient country. The Agency is beginning to deal with these significant challenges as it increases its involvement in program-based approaches, particularly in Africa, where CIDA is already engaged in the largest number of these types of arrangements. Among initiatives planned for the coming years are: funding for the Ministries of Education of Burkina Faso, Mali and Mozambique, and for the Ministry of Health in Mali (see Box 17: Education SWAp in Burkina Faso); funding for a justice reform strategy in Ethiopia which will form the basis for a SWAp; ; an ongoing education SWAp in Tanzania and general budget support under its Poverty Reduction Budget Support Facility; and a possible multi-donor budgetary support program in the food security sector in Ghana.
In Asia, CIDA will increase its support for and programming within priorities set by PRSPs in most of its partner countries. Participation in pooled funding mechanisms such as sector-wide management approaches (SWIMs) will be increased. In the Caribbean, CIDA is continuing joint regional programming in HIV/AIDS with other donors and will be examining opportunities for education SWAps in Guyana and Jamaica as well as SWAps in environment and trade in region-wide programs. In Central and Eastern Europe, examples of innovative programming include regional programming in Southeastern Europe in electricity rehabilitation and distribution, and the Local Initiatives Program, which promotes the development of civil society in various countries. CIDA will also continue to seek out new programming approaches with other donors. For instance, in Central and Eastern Europe, the Balkans program is working with the Japanese International Cooperation Agency (JICA)179 to improve health-care service delivery to people with physical disabilities. CIDA will invest $1.5 million to contribute to policy and capacity development in this sector and the Japanese will provide a multi-million dollar financial package to improve infrastructure. CIDA is also pursuing programming approaches with multilateral partners. Examples include the public-private partnerships involved in the Global Alliance for Vaccines Initiative (GAVI)180, and the "Food Plus Initiative" that brings together the World Food Program (WFP)181 and UNICEF182 to ensure women and men in need have access to an integrated package of food, micronutrients and basic lifesaving health commodities. One interesting approach involves a special public-private partnership initiative of UNAIDS183 and Shell International184 that would use a scenario-based engagement process to help develop a deeper understanding of the evolution of AIDS in Africa, focusing on the impacts and consequences of the pandemic. Furthermore, recent changes to the framework for Canadian Partnership Branch's agreements with universities have ensured that future competitions for funding will more closely align program proposals with CIDA's new directions. One example of a CIDA program which exhibits a number of different elements of new programming approaches, including donor coordination, is in Bolivia:
Finally, CIDA is developing a portfolio of its program-based approaches which will be used to inform and shape future efforts so that best practices are more firmly integrated across the whole of the Agency's work. A primer and an operational guide are also being developed to assist staff in making the shift to program-based approaches. Policy Coherence and Corresponding Policy-Based Programming In its essence, policy coherence means that government policies should work together to reinforce common objectives rather than be at cross-purposes. Today, investment in and trade to developing countries increasingly dwarf development assistance, and the need to ensure that major policies which affect these three areas work in tandem has never been greater. In today's interdependent world, non-aid issues, including international crime, global financial stability, peace and security, the role of the military in peacekeeping, trade, unsustainable debt and many other factors, all have the potential to impact on development. Along with other forward-looking development agencies, CIDA is working to promote coherence in the policies adopted by the Government of Canada affecting developing countries and is committed to working with other Canadian government departments and agencies towards this end. The Agency has recently taken steps to enhance its policy capabilities in trade and the environment, in part to bring the development perspective to bear on the policy positions taken by the Canadian government in the negotiation of multilateral agreements. For example, in addition to fostering a number of initiatives to build the capacity of developing countries to participate constructively in the international trading system (see Section 4.4.1), senior CIDA officials are actively participating in the formulation of Canadian trade policy positions regarding multilateral trade negotiations such as those of the WTO186 and the Free Trade Agreement of the Americas (FTAA)187. But addressing the market access barriers faced by the world's poorest countries cannot await the completion of negotiations. This is why CIDA supported the adoption of Canada's new Market Access Policy. This policy, effective January 1, 2003, allows substantially all exports from least developed countries. to enter Canada duty- and quota-free. Policy coherence is also critical within the community of donors and developing countries as they design and implement development assistance programs. Such coherence is essential to support local ownership and aid effectiveness. CIDA's Country Development Programming Frameworks (CDPFs) will be increasingly based on PRSPs and National Development Plans (NDPs) or their equivalent, and will foster policy dialogue, policy coherence and consideration of the impact of non-ODA policies on aid (see Box 20: Country Development Programming Frameworks). As CIDA seeks to move from managing projects to influencing policy, it will be critical to form strategic alliances with its partners to enhance its policy leverage and improve its exchanges of knowledge with them. For instance, in Asia, CIDA will build on its work with multilateral and regional agencies to increase the policy impact of its programming and policy coherence, especially in health, economic reform, gender equality and environment. CIDA will also work to improve the efficiency and quality of the programs of global humanitarian agencies, through policy-based dialogue and in concert with other like-minded countries. For example, it will collaborate with UN partners, NGOs and other donors to help standardize the collection and use of information on the state of people in emergency situations. This initiative will both enhance coordination and inform decisions on how best to allocate resources. Local ownership is a central element in the planning of development programs at CIDA. Local ownership means that development directions and strategies are determined by recipient countries — their governments and/or their people — rather than by donors. Local ownership also means that management of the financial and human resources deployed in the implementation of the strategy is the responsibility of recipient countries. Local responsibility ensures that donor efforts respond to local priorities, and that initiatives supported through development programs will be sustainable over time. CIDA will continue to work to ensure that local ownership is supported and achieved through consultative processes involving government, civil society and other groups within developing countries. For example, the Canada Fund for Africa188 and the Fund's support for NEPAD189 emphasize African ownership of the development process. In this new partnership, the conditions for development will be created by Africans with assistance from development partners. In Bolivia, CIDA's country development framework is closely aligned with the PRSP and CIDA will review it with the new administration. In Russia, the Government is very much in the "driver's seat". Though Russia is a member of the G8, it faces significant political, economic and social challenges which must be overcome as it makes the transition to a democratic, market-driven economy. Russia's well articulated needs - based strongly in governance and civil society - are the main drivers of CIDA's Russia program (see also Box 14: CIDA and Governance Programming in Russia). Local ownership is not restricted to governmental bodies.
In Asia, the community-based approach in countries such as Bangladesh and India
builds capacity within local organizations. This enables these organizations
to define their own development priorities and manage their own development
programs as well as advocate on behalf of their interests with government. For
example, in India, Nepal and Sri Lanka, CIDA is pursuing a major initiative
to consolidate many local funds in the same country into one major fund for
each country, to support local programming and increase efficiency and flexibility. In its collaboration with multilateral institutions, CIDA will also seek out and use opportunities to promote the internalization of key principles of local ownership both at the governing board level and at the working level. The Agency will work with its partner multilateral organizations to strengthen and promote national ownership of the PRSP process, including locally determined policies and priorities, helping to build the capacity of governments to conduct consultations with their stakeholders, and the capacity of civil society to analyze development plans. CIDA will also encourage greater alignment of IFI lending programs to country-owned strategies. Untying Aid The practice of requiring that aid funds be used for purchases in donor countries is considered by many to undermine aid effectiveness. Tied aid is often more costly, is not conducive to local capacity development or local ownership, and it does not support trade liberalization or the dismantling of investment barriers. In keeping with the 2001 DAC Recommendations on Untying ODA to the Least Developed Countries191, CIDA has revised its own policy on tied aid, effective January 1, 2003. It has rescinded the previous requirement of a minimum Canadian content in bilateral assistance of 50% for sub-Saharan Africa and least developed countries in other regions, and 66% for all other countries. CIDA now uses a new definition of tied aid, aligned with the DAC definition, which is based on a concept of eligibility of countries other than Canada to access ODA funds. This new policy allows CIDA to open contracting to a spectrum of bidders - including Canadian, developing-country and internationally competitive suppliers. CIDA will report levels of tied and untied aid as part of its Departmental Performance Report (DPR)192 to Parliament. This policy shift is intended to increase Canadian aid effectiveness by enabling developing country partners to make their own choices and by providing business opportunities to suppliers in least-developed countries, especially those in sub-Saharan Africa. This will help reduce costs and increase self-sufficiency as well as reflect developing-country preferences and priorities. However, many developing countries do not yet have the capacity to administer full-scale International Bidding Systems and will require technical assistance to enable them to do so. 4.5.2 Appropriate Sectoral and Thematic Focus CIDA has been reducing the number of sectors in which it concentrates its work: more recent CDPFs identify two or three priorities (as opposed to five or six in the past), selected jointly by Canada and the countries concerned. The Agency will continue to meet its objectives for increased investments in the Social Development Priorities (SDPs)193 of health and nutrition, HIV/AIDS, basic education, and child protection, with gender equality as an integral part of all of these priority areas. In addition, in the coming years, CIDA will implement policies and programs in other priority areas such as agriculture and private-sector development. 4.5.3 Appropriate Geographic Focus CIDA recognizes that focusing its development assistance on a selected number of the world's poorest countries is an important factor in aid effectiveness. In late 2002, CIDA selected an initial group of the world's poorest countries for increased investment in a limited number of sectors194. These countries are: Bangladesh, Bolivia, Ethiopia, Ghana, Honduras, Mali, Mozambique, Senegal and Tanzania (see Chapter 3, New Directions). In keeping with the 2002 G8 Action Plan for Africa195, more than half of these countries are from Africa, the poorest continent. Current programming with other countries will continue; the size of the increased investments in the selected countries will depend on a variety of factors, including the amount of additional resources available to CIDA. The "graduation" of countries from technical cooperation is a success story which also results in greater geographic concentration. A number of countries will "graduate" in the next three years. Eight countries in Central and Eastern Europe- the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia - will become EU members in 2004. CIDA will assist these mature countries to make the final transition from an Official Development Assistance (ODA) or Official Assistance (OA) recipient to an equal partner with Canada. The overall goal of a transition program is to strengthen and maintain the partnerships that have developed during years of CIDA involvement, with the long-term result being the sustainability of the graduating country's developmental achievements. In the graduating countries of Central and Eastern Europe, CIDA will complete the work undertaken in the past several years in a coherent and effective manner; undertake a review of past efforts to allow CIDA to better assess its programming effectiveness; and implement a program that reflects the character and spirit of the new relationship that being the Official development Assistance in Eastern Europe (ODACE). ODACE aims to help the Czech Republic, Hungary, Poland, and the Slovak Republic to develop their capacities as donors. In time it is expected that these new donors would work closely with Canada on trilateral initiatives in, for example, Central Asia or the Southern Caucasus. An improved perception of the value, efficiency and effectiveness of ODA and OA programs is an important part of the enabling environment for the delivery of Canadian aid. Public opinion polls indicate consistent support for the aid program. However, while more than eight in ten Canadians support the aid program, support for foreign aid is tempered by concerns about aid effectiveness. These concerns revolve around a lack of information on whether the aid program is making a difference in people's lives, as well as a belief that corruption and waste are rampant in developing countries and in aid bureaucracies.196 Guided by its Strategic Communications Framework 2002-2004, CIDA will continue to promote greater public understanding and support for development issues as well as the nature and strategic importance of Canada's involvement in the developing world. The Agency will also fund an increased number of education projects to reach a larger audience, especially among youth. The Global Classroom Initiative197, supports the development and delivery of school-based educational resources for Canadian students and teachers up to the end of secondary school (see Box 19: Building Global Bridges). This initiative will continue to expand into school markets, particularly in the western, eastern and northern parts of Canada. CIDA's Butterfly 208 198 contest - an art and writing contest for Canadian youth between the ages of 14 and 18 -- is designed to interest youth in international development and spur reflection and discussion among participants about global issues. The Journalism for Development Initiative199 will continue to support research and writing projects by journalists wishing to deepen their understanding of development issues.
Greater public involvement in development cooperation is recognized as an important factor in strengthening the effectiveness of CIDA's work, and this is reflected in the Agency's Strategy on Public Engagement 2001-2003, which will be renewed in 2003 with input from a wide range of external partners. CIDA will continue to work strategically with Canadian organizations to engage the Canadian public in international development, and will continue to contribute to the engagement of Canadians in international cooperation issues by supporting the public engagement efforts of Canadian civil society partners. For example, Help International's201 "Africa on the Move" is an international development immersion program for Saskatchewan schools. In 2000-2001, a total of 1157 students interacted with African development workers during one-day hands-on sessions, either in schools or at an African theme park built for this purpose. There will also be an increase in CIDA's public outreach and media engagement activities, including those to raise awareness about Canada's new partnership with Africa. CIDA will increase the number of Canadians reached through its speakers' program, enhance its regional communications capacity, and expand its exhibits program. In addition, public and on-line consultations on policies and programming frameworks will continue both to raise awareness and to increase public engagement in the ODA program. Finally, CIDA will work with its public and private sector partners in its Partners in Communications Program to promote joint programs and activities addressing key global challenges. Sound modern management tools support the Agency's enabling strategies and are key to the achievement of strategic outcomes. Such tools include human resources management, the effective management of information and technology, knowledge management, strategic planning and resource allocation, and the rationalization of business processes. These tools are particularly important as CIDA implements its Policy Statement on Strengthening Aid Effectiveness: Canada Making a Difference in the World202. Transformation of this nature requires major changes in CIDA's processes, systems and practices. The modernization of these functions will improve the Agency's ability to deliver on its development commitments. CIDA's Corporate Strategy for Managing its People 2001-2004 will continue to guide the Agency's human resources planning strategy. The Strategy has three main priorities, which mirror those set for the public service as a whole and are reflected in the Agency's Management Tools, namely: strengthening CIDA as a knowledge-based, continuous learning organization; increasing retention through workplace well-being; and promoting renewal through ongoing recruitment. While an increase in levels of development assistance was announced in the federal budget, the Agency's staffing levels will not increase in proportion to this. The Agency will, in the coming years, continue its efforts to strengthen its policy and analytical capacity in order to improve its ability to implement its Enabling Strategies and achieve its Development Results. A key element in this regard is enhancing the dialogue between program managers and CIDA's representatives in the field, to ensure that CIDA maximizes its country knowledge in support of local ownership and increased aid effectiveness. CIDA will create a number of new positions for analysts, recruit more field staff with analytical skills to develop sectoral country expertise, encourage collaboration among CIDA programs and with other departments to share knowledge and experience and analyze lessons learned. Emphasis will also be placed on upgrading CIDA's capacity to analyze and integrate horizontal issues -- such as , the environment and gender equality -- which are relevant to all CIDA programming. In addition to formal in-house training sponsored by the Agency, individual programming branches will develop their own enhanced plans for continuous learning at headquarters and in the field, utilizing improved knowledge-sharing processes such as e-collaboration and other web-based tools. In order to support the effective delivery of Canada's aid program, CIDA will continue its efforts to transform itself into a knowledge-based institution in 2003-04. As discussed in Strengthening Aid Effectiveness203, the creation of a knowledgeable and highly motivated and more representative workforce is an important area of planning for the Agency. CIDA's training program will be aligned with the new priorities and an investment in a Virtual Learning Centre will continue. Staff at headquarters and in the field will be encouraged to pursue learning opportunities such as knowledge fairs and seminars, training and development activities, mentoring programs, career planning and education leave. CIDA will continue to implement its updated Employment Equity Action Plan 2002-2005, striving to maintain, and if possible increase, the number of designated group members who have self-identified. Executives at the Agency, including the President, have an accountability statement in their performance contracts related to employment equity and an accountability framework will be finalized in 2003-04 to guide them in achieving their commitments. The need to strengthen its field presence is an important part of the Agency's planning for 2003-04 and beyond. As noted in Strengthening Aid Effectiveness204, CIDA will enhance its field presence in countries selected for increased investment so that it can effectively deliver new program approaches. A greater presence will allow CIDA to develop more in-depth knowledge of issues in the field and to engage more actively in policy and programming dialogue with the partner country and donor groups. The Agency is currently strengthening the management of its field offices, which are known as Program Support Units (PSUs). In addition, CIDA will continue to devolve program responsibility to the field (see section 4.7 for a profile on programming in Honduras), and will promote better horizontal communication and collaboration among operational branches at CIDA headquarters and between headquarters and the field. There will also be a pilot project to study the relationships between Agency activities at the country level and the efforts of multilateral institutions. 4.6.2 Knowledge Management and Information Management/Technology CIDA has put in place a Knowledge Management Initiative in order to make the changes necessary for its evolution into a knowledge-based organization. Over the next three years, the Agency will focus on, among other things, four broad results with respect to knowledge management: 1) the demonstration and promotion of sound knowledge sharing practices by CIDA supervisors and managers; 2) changing human resource practices so that they support and reward employees for knowledge management competencies; 3) the renewal of CIDA business processes in support of better knowledge management; and 4) providing tools and systems directly to staff to improve their ability to apply knowledge management practices in their work. The Agency has developed a plan of action and indicators to help track progress. The Agency plans to continue investing human and financial resources in ensuring that accurate and complete information is in the hands of all those involved in CIDA programming, wherever they are in the world. This will entail maintaining and renewing a cost-effective electronic infrastructure that enables efficient communication, accurate analysis, program delivery and reporting. Plans include putting in place policies, systems and processes to give effect to the government's new Management of Government Information policy, including new accountability and performance frameworks for the sound management of rapidly increasing volumes of electronic information, plus continued support for Government-on-Line (GOL)205. As CIDA does not directly supply services to Canadians, this simply means making it easier for Canadians involved in CIDA programs, such as executing agencies, to work with CIDA electronically (e.g.when submitting project proposals). In 2003-04, CIDA plans to complete a prototype of its new enterprise document and records management system, and to pilot the system with business users. This new system will manage electronic information through its life cycle as a corporate resource, support information sharing and provide a foundation for building knowledge management. Continuing improvements will also be made to the quality of information and data in corporate systems and to access the valuable external development information databases and sources. In 2003-04, CIDA will also start putting on-line the Agency's redefined business processes, specifically those supporting responsive and directive lines of business. 4.6.3 Strategic Planning and Resource Allocation In order to ensure that Agency resources are allocated to strategic priorities, CIDA will continue to strengthen the corporate planning process based on continual improvement to ensure implementation of a rigorous budgetary planning and resource allocation process to meet Agency priorities . CIDA will make more strategic use of Country Development Programming Frameworks (see Box 20: Country Development Programming Frameworks) and programming plans as key documents to support the achievement of development results. Similar efforts are underway with respect to Institutional Development Programming Frameworks (IDPFs); CIDA is developing a guide for IDPFs which will be used to develop frameworks during the next fiscal year for the Asian Development Bank (ADB)206 and UNAIDS207. Other examples of planning in this area for 2003-04 include: pilot initiatives to test a 'managing for results' contracting model which seeks to better align executing agency reports and expenditures to program results ; improvement of the management of financial and non-financial information; adoption of a Risk-Management Strategy aimed at identifying risks and developing mitigating strategies when the probabilities and impacts of certain risks are significant (see 3.5 Risk Management); and identification of a quality management process for project approval documents.
The current government-wide Modern Comptrollership Initiative is helping the Agency identify strengths and gaps in management practices and managers' skills and competencies in a Capacity Check exercise. In 2003, CIDA will develop an integrated management action plan based on the results of the Capacity Check, the Public Service Employee Survey208, and a day of learning held with 800 employees held in November 2002. The implementation of Integrated Modern Management within CIDA reinforces the Agency's commitment to continue to improve management practices in support of effective development cooperation. 4.6.4 Rationalization of Processes The use of transparent, consistent and cost-effective business processes is an important element of program delivery and planning in the Agency's 2003-04 programs. CIDA has made significant progress over the past year in reducing the number of business processes involved in the project cycle and will continue to standardize contracting documents and guides. CIDA will also develop and implement contracting service standards and will implement the newly developed dispute resolution mechanism for contractual processes. The Agency will ensure coherence in the different e-business activities in order to simplify and streamline proposal submissions, project management, and procurement and contracting activities. CIDA will centralize the management of some local funds in the field to save costs and improve the consistency with which contracting and accountability requirements are met. For example, a pilot Health (HIV/AIDS and sexually-transmitted infections) project in Guyana will be managed using experimental, responsive funding selection and contracting methods. The appropriateness and lessons learned of this model will then be evaluated. CIDA plans to continue work towards improved practices of stewardship and conservation in Canada and abroad in 2003-04. This "greening" of CIDA will be exemplified through the continued compliance with the Canadian Environmental Assessment Act (CEAA)209 and application of the lessons learned from conforming with this law in country programming. A new handbook will be developed to guide staff in developing policies, plans and programs in compliance with the 1999 Cabinet Directive on Strategic Environmental Assessment. An Agency-wide initiative is also underway to identify and implement measures to reduce the environmental impact of CIDA's administrative operations in Canada and overseas and to ensure that the Agency's environmental management systems are implemented, such as adherence to solid waste management practices and procedures. As CIDA moves from a project to a program-based approach, its country and partnership programs are taking on a more integrated look. The resulting current portfolio of initiatives is more closely linked with developing country priorities and programs as well as with CIDA's Key Agency Results (KARs). The following section features CIDA's experience with programming in three countries which have been selected for increased investment in coming years, as well as the experience of one Canadian partner. In particular, these cases illustrate the use of Enabling Strategies (see Section 4.5), such as improved policy analysis, increased local ownership, new programming approaches, enhanced field presence, greater sectoral concentration, and collaborative partnerships to more effectively achieve Development Results. In the partnership profile of a long-time Canadian partner - the Canadian Organization for Development through Education210 (CODE) - the central role of capacity development, local ownership, and public engagement in achieving results is underscored. 4.7.1 Honduras: building a common vision with local leadership CIDA's 30-year program in Honduras has focused primarily in forestry, agriculture, water, and electrical energy in the poorer provinces in the north. While successful at the project level, these interventions were hampered, in terms of a broader impact at the policy or national level, by the lack of an overall plan or vision for national development. Following Hurricane Mitch in 1998, the governments of Central America and the international community agreed to a set of goals and principles to guide reconstruction and long-term development. This approach provided a comprehensive vision which was further refined when Honduras undertook a national consultation exercise that resulted in a Poverty Reduction Strategy (PRS) in 2001. The coordination mechanisms involving government, civil society and donors initiated during the preparation of the PRS continue as fora for priority setting, dialogue, and collaboration today. These mechanisms include the mesas sectoriales ("sectoral tables"). CIDA's new program delivery mechanism for Honduras, PRO-MESAS, supports activities programmed at these sectoral tables, with a $45 million budget over the 2001-06 period. PRO-MESAS ensures consistency with the principles and strategic programming areas of Honduras's PRS and contributes to the achievement of the PRS goals, which are closely aligned with the Millennium Development Goals. PRO-MESAS also supports and strengthens the mesas sectoriales and other official collaborative fora at the national, departmental, and municipal levels, as a method for consensus building, priority setting, and development planning. Programming will be multisectoral in nature, but will emphasize the natural resource sectors of agriculture, forestry, water, and environment, and the social sectors of health, education, and sanitation. Each sector has a planning envelope of $5 million, subject to programming decisions undertaken in collaboration with Honduran and international partners. The objectives are: reduced ecological vulnerability through ecosystem protection from degradation and destruction; sustainable natural resource management through community participation; and reduced social vulnerability through improved access to health and education. The program will integrate gender equality, environmental sustainability, decentralization, and good governance as crosscutting themes during all phases of program planning and implementation. Where appropriate, these crosscutting themes will also be expressed through explicit targeted activities. A PRO-MESAS office has been established in Tegucigalpa, staffed by Canadian Technical Advisors for each of the above sectors, two Advisors from the International Development Research Centre (IDRC) and a Program Management Advisor responsible for performance review and information management. PRO-MESAS will draw on local, regional, Canadian, and international expertise as required to support and implement programming. All contracting of goods and services has been delegated to the field and is entirely untied. Procurement will be managed by the United Nations Development Program (UNDP) Business Office in Tegucigalpa. 4.7.2 Mali: achieving program coherence and greater local ownership CIDA has been supporting development cooperation in Mali since 1972. The Agency's 1995-2000 program activities in Mali focused on economic growth, with significant support in social development (especially basic education), democratic development and good governance. Among the results are: a thriving credit union network with assets of 5 billion CFA francs211, which has had a significant impact on women's incomes in the target area, Nyèsigiso; a community infrastructure fund that has created 32,000 person-days of employment and created a number of construction and consulting firms; enhanced customs collection resulting in a tripling of revenues within two years; increased awareness of the democratic process and better trained local government representatives; and the provision of safe water and educational planning services. An assessment of the 1995-2000 program yielded positive results, but also indicated a need for a closer fit between Canadian and Malian programs and a more well-developed sectoral strategy that promotes synergy and convergence among stakeholders. The assessment report advocated more capacity building, improved program delivery, the maximum use of local resources and a greater use of the program-based approach. During this period, the annual level of CIDA's bilateral support averaged $16 million. The total support from all channels, including Canadian and international partners, averaged $30 million per year. Both Mali's national poverty reduction strategy and CIDA's Key Agency Results were considered in planning CIDA's programming in Mali for 2000-10. This involved extensive consultation with all Malian and Canadian partners in a process that took more than a year. The purpose of the new program, the budget for which is expected to continue at the present level, is to contribute effectively to poverty reduction. The program also supports three crosscutting results: the bridging of socio-economic gender gaps, achieving better environmental balance and strengthening decentralized mechanisms, identified by Malian authorities as pivotal to sustainable development. Most activities in the new program are part of current Malian sectoral programs in education, health and justice. Technical and financial partners in Mali are well coordinated, while the Government of Mali is accountable for program design and implementation. Local technical and professional expertise on the Canada-Mali cooperation program team ensures that there is strong capacity to analyze, monitor, plan and liaise with bilateral and multilateral partners, as well as provide ongoing support for the Malian partners in exercising increasing responsibilities for program content and management. 4.7.3 Bangladesh: collaborative partnerships and new programming approaches Bangladesh is the largest recipient of Canadian bilateral assistance ($36.9 million in 2001-02) and bilateral food aid ($13 million in 2001-02). The two objectives of the Bangladesh program focus on reducing poverty by augmenting the capacity of the poor, as well as strengthening the capacity of Bangladesh, to manage its own development process while applying two priorities: basic human needs and governance. CIDA has been involved in donor coordination, which is well-developed in Bangladesh. At the policy and program level, CIDA has been a participant in the annual Bangladesh Development Forum, the most important coordination mechanism in the country, in which approximately 30 donors participate. Indeed, the World Bank has succeeded in putting the emphasis of this forum on more of a policy dialogue with the Government of Bangladesh. Canada has also played an active role in the high-level Local Consultative Group (CG) which provides opportunities for representatives of 22 donor countries in Bangladesh to discuss sensitive issues such as human rights and corruption amongst themselves, and with the Government of Bangladesh. CIDA has chaired sub-groups of the CG on micro-finance, NGOs, gender equality and environment. In order to strengthen aid effectiveness and complement the government's efforts, donors have moved to programming approaches, notably in the health sector. CIDA has been actively involved in the Sector-Wide Approach (SWAp) in health. This has given new impetus to the call for more transparent and accountable governance in Bangladesh. The health SWAp represents a major institutional challenge for the government as well as for donors. Education will be another sector for increased cooperation among donors and the government. CIDA's participation in pooled funding arrangements on a major NGO initiatives - involving a local NGO, Proshika - has led to significant gains in donor harmonization. These "SWAp-like" initiatives encompass common reporting, single evaluations and assessments, consortium management and 100% pooled funding. As Bangladesh belongs to the Least Developed Country (LDC) group, some projects of the Bangladesh program may proceed with international tenders in the future in response to the OECD new untying regulations for the LDCs. Projects through Bangladeshi NGOs such as Proshika are already fully untied. Considerable investments have been made in building the CIDA's knowledge base in Bangladesh. In order to improve aid effectiveness, the workloads of CIDA officers in the field have been shifted towards greater sectoral and policy analysis. The Canadian Cooperation Office in Dhaka (also known as the Program Support Unit (PSU)) has also been expanded and local consultants have been hired to provide valuable advisory and technical expertise. At CIDA headquarters, continuous dialogue with other delivery channels and with Policy Branch will continue to ensure future program coherence and a corporate approach to ODA delivery. A new Country Development Programming Framework (CDPF) for Bangladesh is currently being developed for programming in the coming years. 4.7.4 CODE: focusing on capacity development Since 1968, CIDA has supported CODE (Canadian Organization for Development through Education)212, a Canadian NGO whose vision is to support a sustainable literate environment in the developing world. Its mission is to enable people to learn by developing partnerships that provide resources for learning, promote awareness and understanding, and encourage self-reliance. From 1998 to 2001, CODE's programming was strategically focused on literacy support within the basic education sector in eight African countries213 and one Caribbean country214. CODE and its partners sought to stimulate the reading skills of primary school-aged children by providing appropriate learning materials, supporting literacy educators, and supporting the publication of educational material in local languages. CODE also maintained a strong public engagement program in Canada to foster support for literacy and for CODE's activities overseas. During this period, CIDA's annual contribution to CODE was approximately $1.6 million. With CIDA's support, nearly 800,000 books, one third of them in local languages, are now available in schools, libraries and community centres. Training in literacy promotion has been provided to more than 4300 teachers, librarians, literacy workers and education officials and support has been provided for radio programs, posters and other promotional materials and national book fairs. Local partners now play an active role in national policy making and program design and several have been supported as resource persons at international literacy events. In June 2000, CODE convened a strategic planning session to review its policies and goals with its African and Caribbean partners, donors, CODE Board members and staff, and Canadian constituents. An institutional evaluation by CIDA completed in March 2001 concluded that CODE had evolved into a stronger organization, had helped to strengthen its partners' capacities, and that CODE and its partners had successfully delivered on the objectives of their strategic plan for 1998-2001. The results of the planning session and of the institutional evaluation fed into CODE's planning. Building on successes and lessons learned, CODE and its partners designed a five-year program in line with their revised strategic plan and corporate performance framework. Then in November of 2002, CODE held a workshop for its partners on lessons learned, which fed into their plans for 2004-06. The overall aim of CODE's program for 2001-06, which involves 14 literacy organizations in the eight African countries and one Caribbean country mentioned previously, is to increase the capacity of children to learn. The expected results are: improved reading abilities, strengthened literate environments, and increased institutional capacities to support literate environments. The program activities are focused on capacity development in basic education. With CIDA's encouragement, CODE and its partners are also supporting national HIV/AIDS awareness and information campaigns. Program monitoring to date suggests that CODE and its partners are on track to achieving the program's expected results. Moreover, CIDA is also supporting a six-year project in Mozambique which builds on successes and lessons learned through CODE's previous programming. CIDA's Results-Based Management and Accountability Framework (RMAF)215 documents the logic of its ODA and OA programming, describes the arrangements for program monitoring and evaluation, and outlines the basis on which the Agency reports, namely Strategic Outcomes, or Key Agency Results (KARs). These relate to CIDA's international work, reflected in development results, and internal functioning, reflected in enabling strategies and management tools. 5.1 Strategic Outcomes and Business Lines CIDA has seven business lines and 12 branches. An organization chart outlining the Agency's business-line structure and accountability is presented in Chart 3. Chart 3: CIDA Organization Chart and Business Lines Structure
The seven business lines are: Geographic Programs - Three Geographic Branches - responsible for country-to-country programs in Africa and the Middle East, Asia, and the Americas respectively - enable the Government of Canada to plan and execute international cooperation activities through direct links with governments and organizations in developing countries. Countries in Transition - Canada's Countries in Transition Program is delivered through the Central and Eastern Europe Branch. The Program supports democratic development and economic liberalization in the countries of Central, South and Eastern Europe, the Southern Caucasus and Central Asia, by building mutually beneficial partnerships. Multilateral Programs - Multilateral Programs Branch is responsible for managing Canada's global development programs through Branch participation in multilateral development institutions and through targeted programming focussed on core concerns such as emergency relief or health and nutrition. Canadian Partnership - The Canadian Partnership Program provides grants and contributions to Canadian and international organizations - both for-profit and non-profit - to support their activities in developing countries. This funding, based on cost-sharing, is responsive to the initiatives of these organizations. Policy - Policy Branch leads policy research and analysis to support and guide the Agency's transformation into a knowledge-based and more effective international cooperation Agency. This policy role also includes positioning CIDA on the international cooperation agenda and on the Canadian government policy agenda. The Branch takes the lead in managing Canada's International Assistance Envelope (IAE). Communications - Communications Branch responds to the communication needs of the Minister for International Cooperation and of the Agency as a whole. The Branch also seeks to improve public awareness of, and support for, the work of CIDA and its development partners. Corporate Services - The objective of Corporate Services is to ensure that the Agency has the necessary support services for efficient and effective achievement of international assistance program objectives through the Agency Executive and the Human Resources and Corporate Services, Performance Review, and Information Management and Technology Branches. 5.2 Strategic Outcomes, Business Lines and Resource Allocation CIDA's strategic outcomes - the KARs - cross the Agency's business lines. Due to uncertainty regarding CIDA's budget allocations for 2003-04, at the time of publication, CIDA is not able to link the Agency's Strategic Outcomes (Development Results) with its Lines of Business. CIDA will be providing this information in the coming months. Basic information about CIDA's planned spending is provided in Table 2: Financial Planned Spending. 6.0 Departmental Planned Spending International Assistance Envelope The International Assistance Envelope (IAE) was introduced in the February 1991 budget. It funds Canada's ODA216 and Official Assistance (OA) initiatives. ODA accounts for 96% of the Envelope. The remaining 4% is Official Assistance217 to the countries of Central and Eastern Europe. CIDA's departmental planned spending accounts for about 83.8% of the IAE. The rest is administered by the following departments:
Table 1 International Assistance Envelope Breakdown (Issuance Basis) presents a breakdown of the total spending. Chart 4 shows the distribution by channel of delivery. Table 1: International Assistance Envelope Breakdown (Issuance Basis) (1)
Chart 4: 2003-04 International Assistance Envelope by Channel of Delivery
7.0 Assessing Performance: Measurement and Evaluation Assessing the effectiveness of CIDA's development initiatives is a key element of the Agency's transformation into a more accountable, results-oriented, continuous-learning organization. Both internal and external reviews help the Agency to meet its mandate and objectives, demonstrate its achievements to Canadians, and continue learning and improving. Consistent with the principles of Integrated Modern Management , and as part of CIDA's overall performance management and reporting approach, the Agency employs three distinct but complementary internal review functions. These are: performance measurement; evaluation; and internal audit. In addition to these internal reviews, there are periodic independent Agency-level reviews conducted by external bodies such as the Office of the Auditor General of Canada, and the DAC. Once every four years, the DAC undertakes peer reviews of its members' ODA programs. Canada's ODA program underwent such a peer review in 2002 (see Chapter 3). 7.1 Performance Measurement Strategy Performance measurement, which includes ongoing monitoring and other forms of self-assessments undertaken by line managers, is a vital component of the Results-Based Management (RBM) approach. This kind of measurement focuses on the tracking of financial and non-financial resources, risks and progress towards intended results. Most initiatives, whether at the corporate, program or project/institutional level are subject to some form of monitoring. Work which has started over the past year to build the linkages between results at the program level and those at the project and Agency levels will continue during the period 2003-06. Performance measurement frameworks (PMFs) are being developed and implemented. The initial focus of these PMFs will be the country programming frameworks (for bilateral programs) and institutional development programming frameworks (for Multilateral and Canadian Partnership programs). These PMFs establish the linkages and facilitate the tracking, collection and aggregation of project and non-project information that monitors progress towards program results and the contribution of such results to the broader Agency results and to the Millennium Development Goals. The issues and results to be included in the program-level PMFs are consistent with the core issues to be covered in evaluations (see below, 7.2). For sector-wide investments and program-based approaches, a manual is being developed to help CIDA staff to use a results-based approach and follow the good practices promoted for donor harmonization. The driving force behind evaluation is the need and desire to learn about results and benefits that are being achieved by the programs, their contribution to the Agency' s overall goals and objectives as well as their value for investment relative to their success. The more specific issues that form the core of every evaluation within CIDA include:
Internal auditing provides assurances of the soundness of risk management, management controls, and information for decision making/reporting, thereby contributing to the Agency's continuous improvement of programs, successful delivery of services, and accountability for results. In the context of Integrated Modern Management, the internal audit function is focused on influencing the quality of financial and non-financial performance information to improve the Agency's risk-management processes and systems. In addition, the internal audit function promotes advances in governance and accountability. The country/program-based approach was selected as the focus level for the audit for the following reasons: it is reflective of international trends; it is consistent with the way CIDA's branches plan their activities; and it is more adaptive to a hybrid or matrix approach which allows for a focus on high-risk programming priorities and high-risk funding mechanisms. In addition, the country/program-based approach supports a shift towards a more integrated, program-oriented approach and makes possible the conduct of an audit and an evaluation at the same time. Where programs do not directly link to countries, such as programs managed by partnership or corporate branches, a more traditional or 'functional' audit approach is considered to be most appropriate. In addition, where significant risks are identified at the project or initiative level, internal audit provides support to management to help mitigate these risks. 7.4 Current and Planned Activities In addition to leading three country program evaluations (Haiti, Hungary and South Africa) and one institutional evaluation (Développement et Paix), CIDA is participating in several initiatives related to policy dialogues and donor coordination in the following areas:
The Agency is also developing and refining new tools to increase learning by: mainstreaming RBM principles at the country-program level by promoting the use of a performance measurement framework based on the Agency Strategic Results Model; establishing an enhanced results-oriented approach for project monitoring and work planning; developing a conceptual framework and companion guide which would correspond better to the core funding approach of an institutional program and facilitate results reporting at an institution-program level; integrating the RBM principles and requirements and harmonizing donor practices when engaging in program-based approaches; sharing results and lessons from the Performance Newsletter and learning series as well as accessing the OECD/DAC inventory for best practices and knowledge. CIDA will continue to consolidate lessons and use findings to improve program design and delivery, contributing to both Enabling and Management results. The Agency will also continue to ensure that the results from its audit, evaluation and RBM work are fed into the development and management of future programming strategies. Annex I - Financial Information Table 2: Financial Planned Spending
Table 3: Summary of Transfer Payments
Grants and Contributions and Other Transfer Payments CIDA grants, contributions and other transfer payments of $2,391 million, including non-budgetary expenditures, account for 91.0% of CIDA's program expenditures. Further information is given below. Table 4: Details of Transfer Payments
Table 5: Net Cost of Program for the Estimates Year The total CIDA program cost including $20,553 million for services provided without charge by other departments are shown in the table below.
Table 6: Loans, Investments and Advances (Non-Budgetary)
Backgrounder on Accounting Change and IFI Starting in 1998-99, the Government initiated a change in how it accounts for its payments to International Financial Institutions (IFIs). As a consequence, the full value of the notes is considered expended in the fiscal year in which they are issued rather than when the actual cash is drawn by the recipient institutions. As a result of this change, information on IFI expenditures is provided on an encashment basis in Part II of the Main Estimates, whereas in Table 1 of this Report on Plans and Priorities, information is presented on the basis of planned note issuance. The table below, illustrates the difference between the two accounting methods. Table 7: Reconciliation of the International Assistance Envelope -- Cash Basis to Issuance Basis
For additional information about CIDA's programs, activities and operations, please visit our Internet site at the following address: http://www.acdi-cida.gc.ca/index.htm or contact: Public Inquiries
Telephone: 1-819-997-5006 Telecommunications Device for the Hearing and Speech Impaired: 1-819-953-5023 Fax: 1-819-953-6088 E-mail: info@acdi-cida.gc.ca
Legislation Administered CIDA is designated as a department for the purposes of the Financial Administration Act by Order-in-Council P.C. 1968-923 of May 8, 1968 and P.C. 1968-1760 of September 12, 1968. The authority for the CIDA program and related purposes is found in the Department of Foreign Affairs and International Trade Act, in the Annual Appropriations Act and in the International Development (Financial Institutions) Assistance Act. CIDA is the lead government organization responsible for Canada's ODA. Footnotes:
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