Canada's Performance 2006: The Government of Canada's Contribution

Global Poverty Reduction Through Sustainable Development

Performance context

To set its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the area of global poverty reduction through sustainable development. In the electronic version of the report, clicking on the indicator in the Performance Highlights table will lead you to detailed information about current performance and trends.

The Government of Canada's contribution to global poverty reduction through sustainable development

Canadians, who come from every corner of the globe, understand that the life enjoyed by citizens in this country depends increasingly on helping make life in other countries better. Canada's future is intertwined with that of people around the world struggling to secure democracy and human rights, to build effective and accountable governance, to improve standards of living, and to manage the environment in a sustainable manner.

Canada's development efforts involve a number of key partners, such as other donors, developing country partners, as well as Canadian and international organizations. In particular, national governments play an integral role in ensuring that development is sustainable by establishing their own priorities, which are intended to make sure that benefits from economic growth reach those most in need. Voluntary and private-sector partners also play a key role in achieving international development goals and mobilizing people, resources, and skills in the fight to end poverty.

Between 1990 and 2002, significant progress was made in the world. Average overall incomes increased by approximately 21 per cent and the number of people in extreme poverty declined by an estimated 130 million. In addition, child mortality rates fell from 103 deaths per 1,000 live births a year to 88. (UN Millennium Project, Overview Report, 2005)

However, much more needs to be done, as many statistics remain alarming. For instance, more than 1 billion people in the world live on less than US $1 a day, and another 2.7 billion struggle to survive on less than US $2 per day. Every day, HIV/AIDS kills 6,000 people and another 8,200 people are infected. (UN Millennium Project, Fast Facts: The Faces of Poverty, 2006)

Canada's development approach, led by the Canadian International Development Agency (CIDA), is fundamentally rooted in the United Nations' Millennium Development Goals (MDGs) and internationally agreed principles of aid effectiveness, which include local ownership, improved donor coordination, the creation of partnerships, policy coherence, and a results-based approach. This implies focussing assistance on a limited number of partner countries in sectors that support the MDGs and where Canadian development assistance is likely to have a greater impact. In addition, a four-part agenda to strengthen aid effectiveness will be implemented, consisting of a more strategic focus, strengthened program delivery, a more effective use of CIDA resources, and strengthened accountability for results.

Canada's new government accordingly noted in the 2006 Speech from the Throne its commitment to a more effective use of Canadian aid dollars and has vowed to ensure greater accountability in the distribution and results of Canada's international assistance. Towards this end, Canada continues to work with international financial institutions to ensure their resources are used effectively to advance their respective mandates and that Canada's relationship with these institutions is effective, accountable, and efficient. Furthermore, with Budget 2006, the Government of Canada reaffirmed its commitment to double international assistance from 2001–02 levels by 2010–11.

Debt relief is recognized as another important contribution to helping reduce poverty. Canada has encouraged greater participation in debt relief so that debt-ridden national governments can redirect resources to other sectors, such as health, education, and the environment.

Efforts to combat disease are also important, and the Government of Canada supports a number of multilateral initiatives, such as the Global Fund to Fight AIDS, Tuberculosis and Malaria, the Global Alliance for Vaccines and Immunization, the Global Polio Eradication Initiative, and the World Health Organization's 3 by 5 Initiative. Budget 2006 has provided up to $320 million to fight polio, tuberculosis, malaria, and HIV/AIDS and to help low-income countries cope with natural disasters or sharp rises in commodity prices.

Links to detailed departmental information

Several departments, agencies, and Crown corporations that receive appropriations contribute to global poverty reduction through sustainable development through their respective strategic outcomes and program activities. This document serves as a road map to facilitate navigation through the departmental and agency performance reports. Clicking on the links in the electronic version of the following table will lead you to planning, performance, and resource information that is contained in the organizations' departmental performance reports and reports on plans and priorities, as well as in the Annual Report to Parliament on Crown Corporations and Other Corporate Interests of Canada. The Strategic Outcomes database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/cp-rc_e.asp, also leads to relevant audits and evaluations.

A Strong and Mutually Beneficial North American Partnership

Performance context

To set its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the area of a strong and mutually beneficial North American partnership. In the electronic version of the report, clicking on indicators in the Performance Highlights table will lead you to detailed information about current performance and trends.

The Government of Canada's contribution to a strong and mutually beneficial North American partnership

With a combined population of about 436 million people, Canada, the U.S., and Mexico share the North American continent. The three sovereign partners are committed to the economic prosperity, safety, and security of citizens across the continent.

In 2005, the Security and Prosperity Partnership of North America (SPP) between Canada, the U.S., and Mexico was established. This partnership provides a framework to advance collaboration with Canada's neighbours in areas as diverse as security, border facilitation, trade, transportation, the environment, energy, law enforcement cooperation, and public health. This partnership has increased institutional contacts between the three governments to respond to a shared vision of a stronger, more secure, and more prosperous region.

In March 2006, the three North American leaders reviewed progress on implementation of the SPP and committed to advance a positive agenda for the continent, focussing on five key priorities:

1) the establishment of the North American Competitiveness Council;

2) implementation, within two years, of several measures aimed at continuing to create smarter and safer borders;

3) increased cooperation among the three countries in response to natural or man-made disasters;

4) establishment of a trilateral framework for regulatory cooperation; and

5) promotion of innovation, research, and development in areas such as clean energy technologies.

In addition, Canada and the U.S. are among the world's largest trading partners. The value of trade in goods and services that crosses the border each day is $1.9 billion; trade is supported by the daily cross-border activity of half a million people and 37,000 trucks. With the signing of the North American Free Trade Agreement (NAFTA) in 1994, the Canada–United States Free Trade Agreement (1989) was expanded to include Mexico. In addition, in 2004 Canada grew to become Mexico's second largest merchandise export market and Mexico became Canada's fifth. (Statistics Canada, 2006)

Although the vast majority of Canada–U.S. trade is free of disputes, the issue of softwood lumber has affected the cross-border relationship. Canada's general approach has been to seek a negotiated settlement, while pursuing litigation before World Trade Organization and NAFTA panels and U.S. courts. Negotiations led to an April 2006 agreement in principle between Canada and the United States to resolve the dispute and provide Canadian industry with a stable and predictable environment in which to operate and invest. In August 2006, Prime Minister Harper confirmed that, since a clear majority of the lumber industry and the key lumber-producing provinces supported the Agreement, the government would table legislation in Parliament in order to implement it. Bill C-24, the legislation to implement the Agreement, was then introduced in Parliament on September 20, 2006. The Agreement entered into force on October 12, 2006. Canadian officials will continue to consult regularly with provincial officials and with industry in implementing the Agreement.

Furthermore, defence relations between Canada and the U.S. have evolved rapidly since September 11, 2001. For example, NORAD has increased its operational readiness and broadened its mandate to better address threats both inside and outside North America.

Moreover, the U.S. focus on homeland security has necessitated enhanced Canada–U.S. cooperation in a way that does not impede the flow of cross-border commerce. Each country recognizes it has a stake in the other's economy and security, and both are working closely to improve security, while facilitating the flow of commerce and people.

With regards to border security, Budget 2006 announced an investment of $101 million over two years to begin the process of providing front-line border services officers with side arms and ensuring that they are no longer required to work alone. With respect to trade, Budget 2006 provided $303 million over two years for a border strategy that promotes the movement of low-risk trade and travellers within North America, while protecting Canadians from security threats.

Links to detailed departmental information

Several departments, agencies, and Crown corporations that receive appropriations contribute to a strong and mutually beneficial North American partnership through their respective strategic outcomes and program activities. This document serves as a road map to facilitate navigation through the departmental and agency departmental reports. Clicking on the links in the electronic version of the following table will lead you to planning, performance, and resource information that is contained in the organizations' departmental performance reports and reports on plans and priorities, as well as in the Annual Report to Parliament on Crown Corporations and Other Corporate Interests of Canada. The Strategic Outcomes database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/cp-rc_e.asp, also leads to relevant audits and evaluations.

A Prosperous Canada Through Global Commerce

Performance context

To set its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the area of a prosperous Canada through global commerce. In the electronic version of the report, clicking on indicators in the Performance Highlights table will lead you to detailed information about current performance and trends.

The Government of Canada's contribution to a prosperous Canada through global commerce

In a globalizing world, international economic and commercial factors to a large extent determine the prosperity of individual sovereign nations. The level of integration or participation of national economies in the global economic system has a direct impact on countries' potential for prosperity and the quality of life for their citizens. Canada has prospered from this global economy: with the ninth-largest economy in the world, Canada is now the world's ninth-largest single-nation merchandise trader. Canada's total merchandise trade exceeded $815 billion in 2005.

Figure 3.1 Canada's Merchandise Exports and Imports in 2005

Source: Statistics Canada, 2006

One quarter of all Canadian jobs are linked in part to international trade. In 2005, total world trade for Canada was $982.3 billion, with trade in goods contributing $840.2 billion and trade in services contributing $142.1 billion.[4] Each day, Canada trades more than $2.5 billion worth of goods and services with the rest of the world. (Statistics Canada, 2006)

The Government of Canada works to ensure that Canada's position in the global economy with respect to trade and investment is enhanced. Despite the lack of progress in the current Doha round of negotiations, the World Trade Organization (WTO) continues to provide the multilateral trade rules that underpin Canada's commercial relations with the 147 other members. Through Budget 2006, the government announced significant tax measures to help Canadian companies become more productive and competitive and to make Canada a magnet for foreign investment. Commercialization of new knowledge has become, in fact, a main source of competitive advantage, and Canada will continue to invest in all facets of innovation and to provide services to business in order to gain or maintain the competitive advantage.

Expanding Canada's market share of current trading partners and exploring new ones is one way of ensuring Canadians benefit from global prosperity. Canada therefore has free trade agreements in place with Chile, Costa Rica, and Israel and is currently negotiating free trade arrangements with the Central American Four (El Salvador, Guatemala, Honduras, and Nicaragua), the European Free Trade Association, Singapore, the Republic of Korea, the Andean Community Countries (Bolivia, Colombia, Ecuador, Peru, and Venezuela), the CARICOM countries (Caribbean Community and Common Market), and the Dominican Republic. (Foreign Affairs and International Trade Canada, 2006)

Links to detailed departmental information

Several departments, agencies, and Crown corporations that receive appropriations contribute to a prosperous Canada through global commerce through their respective strategic outcomes and program activities. This document serves as a road map to facilitate navigation through the departmental and agency performance reports. Clicking on the links in the electronic version of the following table will lead you to planning, performance, and resource information that is contained in the organizations' departmental performance reports and reports on plans and priorities, as well as in the Annual Report to Parliament on Crown Corporations and Other Corporate Interests of Canada. The Strategic Outcomes database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/cp-rc_e.asp, also leads to relevant audits and evaluations.