Canada's Performance 2004

I. Canada's Place in the World

Introduction

Canada's place in the world has changed over the course of the past decade. Since the last review of Canada's foreign and defence policies, the global landscape has changed significantly. The United States remains the world's pre-eminent power, but a more global economy is rapidly developing with the expansion of the European Union and with emerging economies such as China, India and Brazil assuming increasingly important roles in trade and foreign policy. Economic globalization and integration have helped some countries on the road to development, yet extreme poverty and obstacles to economic development in many regions of the world accentuate the increasing inequality both between and within countries. Environmental issues are global in scope, necessitating increased cooperation between members of the international community.

Terrorist attacks in several countries around the world have led to a dramatically altered global security environment. At the same time, inter and intra state conflicts continue in many regions of the world. Trans national organized crime, trafficking in drugs and human beings, and the emergence of trans national networks of non-state armed groups present security challenges of a magnitude unknown to previous generations. Human development and post-conflict reconstruction in many areas, including Afghanistan and Iraq, continue to be an important focus for the global community.

The Government of Canada's Role in the World

The federal government is working with Canadian partners and the global community to bring peace, stability and development to many countries around the world. Through Canada's foreign and defence policies, Canada is involved in numerous international organizations and peace support operations worldwide. Canada further supports these global efforts and broader development objectives through bilateral and multilateral investments in development assistance, as well as through emergency humanitarian relief. Other areas in which the government plays a role include international negotiations and treaties on trade; the environment; human rights and humanitarian law; and funding for science and technology.

Canada's place in the world has changed over the course of the past decade. As a result, the government has launched an International Policy Review. The objective of the review is to develop an integrated and coherent policy framework for diplomacy, defence, development and trade. In addition, to reinforce its capacity for protecting Canadians, the government has released Canada's first National Security Policy, which proposes a framework for addressing threats to our citizens and a blueprint for action in key areas such as border security and international security.

In September 2000, world leaders adopted the historic Millennium Declaration, pledging themselves to an international framework of concerted and concrete actions toward poverty reduction. This framework contributed to the Millennium Development Goals, which have become central to Canada's long-term vision of sustainable international development through, for example, increased development assistance, debt relief, increased market access to Canada by least developed countries and improved access for developing countries to affordable essential drugs. In Canada Making a Difference in the World: A Policy Statement on Strengthening Aid Effectiveness (2002), the government is building upon the growing international consensus and body of research to work toward increased effectiveness of our development assistance.

This chapter measures progress against key Government of Canada outcomes related to Canada's Place in the World:

1. A Prosperous and Sovereign Canada in a Safe and Secure North America;
2. A Canada Committed to Multilateral Cooperation;
3. A Canada Committed to Peace, Human Development and Human Security; and
4. A World Where Canada has a Positive Influence and Profile.

Government of Canada outcome: A prosperous and sovereign Canada in a safe and secure North America

Why Is It Important?

Canada's prosperity and security are closely linked to its relationship with the United States. We share the longest undefended border in the world, and with nearly $1.8 billion in goods and services and 300,000 people crossing the border daily, our economies and security interests are closely intertwined.

Since the terrorist attacks of September 11, 2001, the United States' focus on homeland security has at times threatened to impede the flow of cross-border commerce. Both countries recognize they have a stake in each other's economy and security, and they are working closely to improve security while facilitating the flow of commerce and people. Canada remains committed to building on the successes of the Smart Border Declaration signed in 2001 with the United States. The October 2004 Speech From the Throne reiterated that Canada will build on the success of the Smart Borders Initiative and on measures designed to develop a more informed relationship with business and government officials in the United States.

In 2003, the Government of Canada created the Canada Border Services Agency (CBSA) to bring together all the major players involved in facilitating legitimate cross-border traffic and economic development while stopping people and goods that pose a potential risk to Canada.

The protection of Canadian sovereignty is an enduring priority of the Canadian government. Defence relations between Canada and the United States have evolved rapidly since September 11th. For example, the North American Aerospace Defence Command (NORAD) has increased its operational readiness and is addressing threats both inside and outside North America. The two countries have also created the Bi-National Planning Group, aimed at reinforcing cooperation on land and at sea in response to possible terrorist attacks and natural disasters.

Canada and the United States are the world's largest trading partners. January 1, 2004, marked the 15th anniversary for the Canada-U.S. Free Trade Agreement and the 10th anniversary of the North American Free Trade Agreement (NAFTA). Although the vast majority of Canada-U.S. trade is free of disputes, areas such as softwood lumber and bovine spongiform encephalopathy (BSE) are affecting the cross-border relationship. The Government of Canada is engaged in a two-track strategy to resolve the softwood lumber dispute: negotiations with the U.S. to achieve a policy-based solution, and litigation before NAFTA and World Trade Organization (WTO) panels.

Canada's most significant bilateral environmental relationship is also with the United States. We share the continent, weather resources, ecosystems and wildlife. The U.S. is crucial to progress on trans boundary air and water issues; successful co-management of species; wetlands and biodiversity; and effective and efficient solutions to climate change. The International Joint Commission, an independent bi-national organization, helps prevent and resolve disputes around the use and quality of boundary waters and advises Canada and the United States on related questions.

Canada-U.S. relations extend beyond North America to the international arena, where the two countries work together in many international organizations such as the G-7, the United Nations (U.N.), the North Atlantic Treaty Organization (NATO) and Asia Pacific Economic Cooperation (APEC).

Measures to Track Progress

The following indicators contribute to measuring Canada's progress in the area of A Prosperous and Sovereign Canada in a Safe and Secure North America:

• Total trade as measured by imports and exports of goods and services with all countries and the United States.
• Perceptions of security as measured by polling data.

Total Trade

Current Level and Trends

Canadian exports to all countries in 2003 totalled $460 billion, up from $260.9 billion in 1994, but down from 477.8 billion in 2002. Exports to the United States in 2003 were at $366.0 billion, up from $199.9 billion in 1994, but down from $385.4 billion in 2002.

Total imports from all countries totalled $412.7 billion in 2003, up from $252.3 billion in 1994, but down from $427.4 billion in 2002. Imports from the United States were at $282.1 billion in 2003, up from $182.6 billion in 1994, but down from $297.4 billion in 2002. (Source: Statistics Canada)

Perceptions of Security

Current Level and Trends

According to the 2003 Voice of the People survey conducted by Gallup International, only 22 per cent of people from 51 countries thought their country was safer now than it was 10 years ago, while 57 per cent believed it was less safe. A total of 42 per cent of Canadians, 53 per cent of Americans and 71 per cent of Mexicans thought their country was less safe today than it was 10 years ago.

In terms of perceptions of national security,

• 35 per cent of Canadians and 40 per cent of Americans thought that national security was good; and
• 25 per cent of all North Americans thought national security was poor.

In terms of perceptions of international security,

• 43 per cent of Canadians thought international security was poor and only 18 per cent rated it as good; and
• 38 per cent of Americans and 34 per cent of Mexicans believed international security was poor, while 24 per cent and 29 per cent respectively thought it was good.

(Source: Gallup International, Voice of the People Survey, 2003)

Supplemental Information

By clicking on the link in the electronic version of the report, the reader can access information on additional indicators that measure Canada's progress in the area of A Prosperous and Sovereign Canada in a Safe and Secure North America: Exports of goods and services as a percentage of GDP.

For a more complete picture of trade and the performance of the Canadian economy, please refer to International Trade Canada's annual publication The State of Trade 2004.

The Government of Canada's Performance

Several departments and agencies contribute to the pursuit of A Prosperous and Sovereign Canada in a Safe and Secure North America through their respective departmental strategic outcomes. In the electronic version of the report, clicking on the links in the table below will lead the reader to planning, performance and resource information, which is contained in the organizations' Departmental Performance Reports and Reports on Plans and Priorities. The Database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/so-rs_e.asp, also leads to relevant audits and evaluations.

Government of Canada outcome: A Canada committed to multilateral cooperation

Why Is It Important?

International organizations provide for a where countries can deliberate and establish rules that govern their activities and interactions and define common global objectives. Engaging through multilateral organizations such as the United Nations is the government's preferred method of addressing international issues and global crises.

International institutions allow Canada, in partnership with the international community, to progress in a number of areas including security, trade and development. The government works with global partners to advance the effectiveness of multilateral cooperation by promoting needed reforms and helping to create new organizations such as the International Criminal Court (ICC).

Canada is a member of more international organizations than any other country in the world. Participating in international diplomatic and military organizations is essential for the government to promote Canadian values and interests abroad. In the October 2004 Speech from the Throne, the Government of Canada recognized the importance of international institutions in dealing with complex global issues.

Canadian and international efforts for peace and development are advanced in large part through the United Nations and the Organisation for Economic Co-operation and Development (OECD). The federal government is working with the international community to reform the United Nations and ensure it remains credible and relevant. Efforts have focused on simplifying the structure of the U.N. Secretariat; ensuring better, more accountable management; and reducing overlap in specialized U.N. agencies. The government has also spearheaded efforts by the Human Security Network (of which Canada is chair from May 2004 to May 2005) to strengthen and improve the operation of U.N. bodies in relation to human rights.

Canada also works with the international community through organizations like the World Bank, the International Monetary Fund, the G-7 and various regional development banks to help many countries achieve economic stability and reduce both the incidence of poverty and its impact on human development.

In the area of trade, Canada is a member of organizations such as the World Trade Organization and the Asia Pacific Economic Cooperation (APEC). The World Trade Organization (WTO), which succeeded the General Agreement on Tariffs and Trade, is the foundation of our trading relations with partners and oversees the conduct of international trade. Through such multilateral institutions, the government seeks to expand global markets for Canadian goods and services and create a stable, predictable and transparent investment climate.

In terms of security, Canada is involved in organizations such as NATO and the Organization for Security and Co-operation in Europe (OSCE). The North Atlantic Treaty Organization (NATO) was established in 1949 to protect Western Europe and North America against the threat posed by the Soviet Union. NATO has grown from 16 to 26 members since the end of the Cold War, and has adapted to the new security environment, particularly through its operations in the Balkans and Afghanistan. A founding member of the Alliance, Canada currently is the sixth largest contributor to NATO's budgets: it contributed $140 million to Alliance common funding for 2003 and committed over 2500 troops in 2004. Between 2003 and 2004, Canada was involved in NATO-led peace support operations in Afghanistan and Bosnia-Herzegovina and NATO training in Canada and abroad. (Source: Foreign Affairs Canada)

Canada also helps regional organizations address peace and security issues. For example, it works with partners in the Organization of American States (OAS) to strengthen their national counter-terrorism efforts and their efforts to curb the illicit proliferation of small arms in the hemisphere. In Asia-Pacific, Canada actively pushed the ASEAN Regional Forum to move forward into a more strategic and dynamic phase in its evolution as the only multilateral political and security organization in the region. Canada has also maintained an active participation in APEC security cooperation, notably on counter-terrorism issues.

Canada also delivers its aid program with the help of many international partners, including the U.N. system, international financial institutions and the Development Assistance Committee of the OECD. Canada has used this access to take a leadership role in many areas that reflect Canadian values and priorities, such as human rights, environmental standards, support for private sector development, HIV/AIDS prevention, care and treatment, basic education for all, and child protection.

Measures to Track Progress

The following indicator contributes to measuring Canada's progress in the area of A Canada Committed to Multilateral Cooperation:

• Trust in international institutions as measured by the most- and least-trusted institutions, and trust in the United Nations.

Trust in International Institutions: Most-and Least-Trusted Institutions

Current Level and Trends

According to the 2004 GlobeScan Survey on Trust in Institutions, non-governmental organizations (NGOs) are the most trusted institutions at 65 per cent, up 6 per cent from 2002. Global companies are the least trusted at 42 per cent, up 3 per cent since 2002. A total of 77 per cent of Canadians put their trust in NGOs, while 53 per cent of Canadians indicated they trust global companies.

Trust in International Institutions: Trust in the United Nations

Current Level and Trends

Globally, the United Nations came in after NGOs as the second most-trusted institution at 59 per cent, up from 55 per cent prior to the diplomatic breakdown over the invasion of Iraq. The same poll indicates that

• trust in the U.N. among Canadians was at 77 per cent in 2004, up 4 per cent since 2002; and
• the Canadian level of trust at 77 per cent ranks third behind 88 per cent of people in Mexico and 78 per cent of people in Australia and Spain.

Supplemental Information

By clicking on the link in the electronic version of the report, the reader can access information on additional indicators that measure Canada's progress in the area of A Canada Committed to Multilateral Cooperation: Global perception of UN capacity to deal with world challenges.

The Government of Canada's Performance

Several departments and agencies contribute to the pursuit of A Canada Committed to Multilateral Cooperation through their respective departmental strategic outcomes. In the electronic version of the report, clicking on the links in the table below will lead the reader to planning, performance and resource information, which is contained in the organizations' Departmental Performance Reports and Reports on Plans and Priorities. The Database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/so-rs_e.asp, also leads to relevant audits and evaluations.

Government of Canada outcome: A Canada committed to peace, human development and human security

Why Is It Important?

The Government of Canada's activities to foster peace, human development and human security demonstrate an understanding of the interdependence of peace and development and Canada's commitment to peace support operations worldwide. The government is working with the international community to rebuild Afghanistan and Iraq. Canada has also been engaged in conflict prevention, conflict management and post-conflict reconstruction in Bosnia-Herzegovina, Haiti, Côte d'Ivoire, the Democratic Republic of the Congo, the Middle East, Sierra Leone and Sudan, among others.

Between 2003 and 2004, the Canadian Forces deployed almost 13,000 personnel on domestic and international operations, with over 10,000 personnel deployed outside Canada. The Canadian Forces participated in 20 international operations with approximately 3,700 personnel deployed on international peace-support and coalition operations including Afghanistan, Bosnia-Herzegovina, the Arabian Gulf region and Haiti. More than 1,900 Canadian soldiers, sailors and Air Force personnel are deployed overseas on operational missions. On any given day, about 8,000 Canadian Forces members - one third of our deployable force - are preparing for, engaged in or returning from an overseas mission.

As part of its contribution to the G-8 Africa Action Plan in support of the New Partnership for Africa's Development (NEPAD), Canada has provided support to enhance West African capacity to undertake peace support operations and address small arms and light weapons proliferation. Canada has also provided support to the African Union for its work on conflict resolution, including establishing a special office to protect civilians in conflict situations. Development and peace are also advanced through the Canadian Peacebuilding Initiative, which includes the Human Security Program and the Canadian Peacebuilding Fund.

Poverty and inequality remain at the core of the global development agenda and action to overcome them are guided by the U.N. Millennium Development Goals. Although progress on the well-being of people in developing countries has improved, there is still much to be done. The average income in the world's richest 20 countries is now 37 times greater than that in the poorest 20.

The International Assistance Envelope (IAE) was established in 1991 to ensure coherence among the federal government's international assistance priorities, and between this assistance and other foreign policy instruments. The 2004-05 IAE amounts to $3.1 billion and includes both Canada's Official Development Assistance (ODA) and Official Assistance (OA) activities. (Source: Canadian International Development Agency, 2004)

In the 2002 Speech from the Throne, the Government of Canada committed to double its international assistance budget by 2010, with half of this increase earmarked for Africa, starting from a level of $2,461 million in 2001-02. Since the 2002 International Conference on Financing for Development, in Monterrey, Mexico, the budget has been increased by 8 per cent annually and will reach $3,348 million by 2005-06, an increase of 36 per cent over four years.

Accessible medical treatment for the millions of people suffering from infectious diseases such as AIDS has been recognized as a moral imperative. In response to this, the Government passed the Jean Chrétien Pledge to Africa Act to make less expensive versions of patented medicines available to developing countries facing public health concerns.

Measures to Track Progress

The following indicator contributes to measuring Canada's progress in the area of A Canada Committed to Peace, Human Development and Human Security:

• Official Development Assistance (ODA) as measured by the percentage of gross national income (GNI).

Current Level and Trends

In 1970, the United Nations set a standard that developed countries should contribute 0.7 per cent of their gross national income to their aid budgets (GNI does not include goods and services rendered by non-residents). In 2003, Canada contributed 0.26 per cent (or about $3.1 billion) of its GNI to official development assistance and ranked 13th among the OECD's 22 member countries. Among G-7 countries, Canada ranked 4th behind France, Germany and the U.K., but ahead of Japan, Italy and the United States. (Source: OECD)

Before this decade, the last time Canada's ODA/GNI ratio was at this level was in the late 1960s. ODA peaked at 0.53 per cent of GNI in 1975-76. It fell to 0.45 per cent in 1990-91 and to 0.25 per cent in 2000-01. (Source: CIDA, Statistical Report on ODA 2002-03)

Based on 2003 numbers, if the Government of Canada decided to meet the 0.7 per cent standard in 2004-05, an estimated $5.5 billion in ODA expenditures, or a 190 per cent increase, would have to be contributed in addition to the $3.1 billion that was spent on ODA the previous year.

The Government of Canada's Performance

Several departments and agencies contribute to the pursuit of A Canada Committed to Peace, Human Development and Human Security through their respective departmental strategic outcomes. In the electronic version of the report, clicking on the links in the table below will lead the reader to planning, performance and resource information, which is contained in the organizations' Departmental Performance Reports and Reports on Plans and Priorities. The Database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/so-rs_e.asp, also leads to relevant audits and evaluations.

Government of Canada outcome: A world where Canada has a positive influence and profile

Why Is It Important?

How Canada is perceived abroad has a direct impact on the role Canadians are able to play in international settings. As a bilingual, multicultural country, Canada appreciates the value of promoting diversity and embracing intercultural dialogue. The Government of Canada's activities abroad are based on human rights values, the rule of law and a respect for cultural diversity. Efforts to reform international institutions, provide international stability through the U.N. and NATO, protect civilians and refugees, promote new international standards for human rights and human security, reduce poverty and ensure human development exemplify the types of influence the government seeks at the international level. Through leadership, participation and our world-renowned cultural profile, the government seeks to enhance Canada's reputation and ensure a lasting influence in the world.

The following are examples of what the Government of Canada is doing to support this outcome:

• Canada is a leader in e-government technologies, and sets the standard for the rest of the world in scope and depth of service and in customer relationship management. In 2004, Accenture's fifth report ranked Canada first among 22 countries in e-government for the fourth year in a row. (Source: Accenture, eGovernment Leadership: High Performance, Maximum Value 2004)
• The Government of Canada has been a leader in international efforts to build support for an international convention on cultural diversity since 1999. In 2003, the United Nations Education, Scientific and Cultural Organization (UNESCO) began drafting an international convention on diversity of cultural content and artistic expression.
• Canada played a central role in creating the International Criminal Court in The Hague and, with 59 other countries, ratified the Rome Statute, which permitted the Court to officially come into being in 2002.
• Canada has also made a significant contribution to the development of multilateral disarmament norms and institutions. Its leadership role in the Ottawa Process led to the 1997 Ottawa Convention banning anti-personnel landmines (APMs).

Measures to Track Progress

The following indicator contributes to measuring Canada's progress in the area of A World where Canada has a Positive Influence and Profile:

• An indicator is under development for Canada's Performance 2005.

Supplemental Information

By clicking on the link in the electronic version of the report, the reader can access information on additional indicators that measure Canada's progress in the area of A World where Canada has a Positive Influence and Profile: Canadian cultural exports.

The Government of Canada's Performance

Several departments and agencies contribute to the pursuit of A World where Canada has a Positive Influence and Profile through their respective departmental strategic outcomes. In the electronic version of the report, clicking on the links in the table below will lead the reader to planning, performance and resource information, which is contained in the organizations' Departmental Performance Reports and Reports on Plans and Priorities. The Database, which can be found at http://www.tbs-sct.gc.ca/rma/krc/so-rs_e.asp, also leads to relevant audits and evaluations.