Multilateral Development System
Multilateral Development System
Canada is a strong believer in the value of the multilateral approach to solving problems and building consensus around common interests, including socio-economic development, humanitarian crises, and security issues. Multilateral institutions—such as UNICEF, the United Nations (UN) High Commissioner for Refugees, and the World Bank, among many others— are on the front line in the world’s collective response to these problems.
The link between development, security, and human rights is especially important in developing countries at risk of conflict or collapse. In these countries, Canada takes an integrated approach through the efforts of its diplomats, aid workers, and defence personnel, who all collaborate closely with multilateral institutions.
Canada and Multilateral Institutions
Canada is a founding member of most of the multilateral institutions. It continues to play an important role on their governing boards. About 40 percent of Canada’s Official Development Assistance is channelled through multilateral institutions, which amounts to roughly 4 percent of their funding. As a member of the governance structures of these institutions, Canada advocates policies such as aid effectiveness, human rights, including gender equality, environmental sustainability, and institutional reform.
There are five main multilateral funding channels:
International Financial Institutions
International financial institutions (IFIs) include the World Bank and the International Monetary Fund (IMF); the regional development banks, including the African Development Bank, the Asia Development Bank, the Caribbean Development Bank, the Inter-American Development Bank, and the European Bank for Reconstruction and Development; and thematic funds such as the Global Environment Facility and the International Fund for Agricultural Development. These organizations provide financial resources in the form of preferred-market rate loans, interest-free loans, and grants. They also provide analytical and advisory services that support the development programs of developing country members. IFIs are the largest source of development financing in the world, accounting for close to US$44 billion a year.
Canada plays an active role as a member of the boards of governors of these banks and as executive directors, joining with other member countries, to provide policy guidance and approve programs, policies, and projects. Canada also promotes a greater focus on poverty reduction, aid effectiveness, private sector development, and debt relief. Within the federal government, CIDA is the lead agency for most regional development banks and for the International Fund for Agricultural Development. Finance Canada is the lead agency for the IMF, the World Bank, and the European Reconstruction and Development Bank.
The United Nations Development System
The 191-member UN is the only organization that offers universal membership and provides a unique forum for resolving global issues, including socio-economic development and humanitarian assistance. The UN is at the forefront in keeping the Millennium Development Goals on the global agenda. It also plays a critical role in transition and fragile states.
CIDA provides funding to a wide range of UN development agencies, but focuses on four core institutions: the United Nations Development Programme (UNDP); the United Nations Population Fund (UNFPA); the United Nations Children’s Fund (UNICEF); and the Joint United Nations Programme on HIV/AIDS (UNAIDS). CIDA also supports specialized UN agencies such as the World Health Organization, the Pan-American Health Organization, the Food and Agriculture Organization, and the International Atomic Energy Agency.
Global Funds and Partnerships
CIDA provides financial assistance to international organizations and initiatives that focus on specific issues, including:
- the Micronutrient Initiative, which works to overcome the vitamin and mineral deficiencies that are linked to much of the world's childhood illness and death. It supports and promotes supplementation and food fortification in countries with the highest deficiency rates by providing commodities and technical and operational support;
- the Global Fund to Fight AIDS, Tuberculosis and Malaria, which is a major financing mechanism whose purpose is to attract, manage, and disburse additional resources through a new public-private partnership where donors help countries fight three of the world’s most devastating diseases by increasing resources and directing them to areas of greatest need; and
- the Stop TB Partnership, which brings together over 400 international agencies, non-governmental organizations, donors, foundations, and research institutions to ensure that tuberculosis sufferers have access to modern treatment in order to stop transmission, protect vulnerable populations, and reduce the toll of tuberculosis worldwide.
Commonwealth and La Francophonie
The Commonwealth and La Francophonie are two intergovernmental organizations that promote political dialogue and cooperation among their members.
The Commonwealth is an organization of 53 industrialized and developing member states, which share a common history and a democratic, parliamentary heritage. These countries work together on development issues, such as the promotion of democracy, good governance, and human rights, at the governmental and non-governmental level.
La Francophonie is an intergovernmental organization of 63 nations using French as a common language, which promotes education and cultural diversity of Francophones as well as peace, democracy, human rights, and economic cooperation and development.
Both are forums for cooperation and dialogue that Canada views as valuable tools in addressing the needs of their developing country members.
Humanitarian Assistance, Peace, and Security
CIDA works with the UN system, Canadian non-governmental organizations, and the Red Cross movement to provide appropriate, timely, and effective humanitarian assistance to respond to the needs of conflict and disaster-affected people in developing countries. This includes addressing basic human needs such as protection, food and water, shelter, and medical assistance.
- Peace and Security. CIDA also provides support to peacebuilding initiatives, which encourage conflict prevention and resolution and post-conflict reconstruction. CIDA's response to mine-affected countries includes activities through our Mine Action initiative that help build national capacity for mine clearance, mine-risk awareness programs, and the provision of assistance for the care, physical rehabilitation, and social reintegration of landmine victims.
Multilateral institutions led the global effort to establish the Millennium Development Goals (MDGs), the internationally agreed goals in health, education, poverty reduction, gender equality, and environmental sustainability that form the basis for all international development cooperation today.
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