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 Programs - Multilateral Programs - International Financial Institutions
International Financial Institutions
International financial institutions, such as the World Bank; the International Monetary Fund; and the Asian, African, Caribbean and Inter-American Development Banks, provide financial, analytical and advisory services to their member countries. Canada is a member of these institutions and is directly involved in decisions on global finance, governance and development policy. This provides us with an opportunity to advance our own values, policies and objectives in multilateral organizations with much stronger impact than if we acted alone. Our interests and values are best served by the promotion of international financial institutions that work well for the benefit of all countries—large and small.
Canada's Commitment
CIDA’s International Financial Institutions Division works closely with international financial institutions and other international and domestic partners to help developing countries achieve the Millennium Development Goals and combat poverty by promoting sustainable and equitable development.
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CIDA’s International Financial Institutions Division, in cooperation with other federal government departments, is responsible for managing Canada’s global development programs through our participation in a number of international financial institutions. Canada’s financial participation takes two forms: subscriptions to capital stock to finance loans at preferred-market rates and contributions to concessional funds to provide aid through loans or grants on much easier terms to the poorest members, usually for social investments. Typically, Canada provides 3 to 5 percent of the total contributions to each of these financial institutions.
Overall, international financial institutions provide about $40 billion a year in loans at near-market terms for middle- and upper-income countries and about $15 billion annually to low-income countries either as grants or as loans on easier terms. Canada contributes to the World Bank and the International Monetary Fund through the Department of Finance and to the other institutions through CIDA.
Canada plays an active role as a member of various Boards of Governors, joining with other member countries to provide policy guidance and approve programs, policies and projects. With like-minded partners, Canada has been instrumental in generating a more comprehensive approach to development by the international financial institutions, which are now focusing more on results-based management and harmonization with other donors; alignment with country strategies; and the regional integration of trade and economic growth. Canada is also paying specific attention to our role in post-conflict countries, disaster response and emerging infectious diseases such as Avian Influenza.
Looking Ahead
In recent years, the international environment has changed fundamentally. New issues and initiatives are emerging and there is a new consensus on development goals and the principles of aid effectiveness. CIDA’s goals are to work with partner multilateral development institutions (MDIs) to enhance institutional and system effectiveness, , to improve the coordination of MDI activities with those of other development partners, and to establish stronger partnerships by strengthening links and contacts between these institutions and Canada.
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