CANADIAN COOPERATION PROGRAM IN CUBA

February 7, 2005

BACKGROUND

Canada and Cuba have enjoyed 60 years of uninterrupted diplomatic relations. The current Canadian cooperation program in Cuba was established in 1994 to respond to initiatives developed by Canadian NGOs, universities and colleges, and the private sector. A bilateral program based on government-to-government support was established two years later in 1996, responding to Cuba’s request for support in economic modernization. Since the beginning of the current cooperation program, approximately $85 million in official aid has been provided by Canada to Cuba. This contribution is comprised of $38.2 million in bilateral cooperation, $44 million in partnership support through Canadian organizations, and approximately $2.5 million to support multilateral and other agencies working in Cuba. CIDA has been a leading donor in Cuba and continues to provide approximately $10 million per year through bilateral, multilateral and partnership channels.

DEVELOPMENT CHALLENGES

Cuba’s social policies set it apart from many other developing countries. Public investments in education and health, for example, have resulted in social development indicators that meet and even surpass those in some developed countries. Moreover, Cuba’s attention to the protection of the environment through the establishment of new institutions, laws, and policies has been notable for a country pulling itself out of a severe economic crisis.

Notwithstanding these achievements, Cuba continues to face economic development challenges due to restrictions on its ability to trade, low rates of foreign investment, and a limited domestic economy. Cuba’s reduced financial capacity for importing and engaging in trade affects its ability to maintain basic supplies of essential items such as medicines, hospital equipment and construction materials. Moreover, in recent years a series of hurricanes and a severe drought have exacerbated problems in maintaining food security and addressing the housing deficit.

Canadian cooperation has targeted those priority areas where Cuba can benefit from international assistance. CIDA has found that there is a high degree of capacity in Cuba for designing and managing local projects. In general, projects based upon mutually supported goals are executed efficiently and effectively with significant impact.

BILATERAL DEVELOPMENT ASSISTANCE TO CUBA

In absence of an official Country Development Programming Framework, officials from CIDA and Cuba agreed on the broad outlines of a bilateral program for the period 2004 to 2008, designed to support two priority areas: (1) modernization of the state which covers economic, industrial and environmental subsectors; and (2) local development focused on strengthening the capacity of local governments and community groups in the Eastern provinces to define and meet local needs.

Since 1996, the size of the bilateral program has ranged between $3.5 and $5.0 million in program spending per year. The initial program focused on technical assistance in the area of economic modernization, as the Cuban economy opened to new forms of commercial enterprise, including joint ventures with foreign partners. These initial projects enjoyed the active participation of Cuban officials in training programs and led to improved quality in economic forecasting and decision-making. In the social sector, the program has provided material assistance such as the supply of paper for school notebooks, food aid and the donation of more than $15 million in medicines at wholesale costs in an initiative continuing to 2009.

OPERATIONAL PROJECTS IN CUBA

BILATERAL

Modernization of the State

• Taxation

  CIDA supports a $6 million seven-plus-year program to provide technical expertise and equipment to help the Ministry of Finance and Prices develop a fair, modern and progressive tax administration. As part of the program, the Canada Customs and Revenue Agency (CCRA) has assisted Cuba's National Tax Administration Office (ONAT) to establish a structure for the collection and administration of taxes, develop in-house training programs and introduce computer technology as a tool in processing returns and providing services to clients. ONAT assumed primary responsibility for the management of the tax project from CCRA at the beginning of 2001. CIDA has approved three extensions of the project since 2002 so that the results achieved thus far could be replicated at the municipal level throughout the country, giving national coverage to the tax system. The new termination date is December 31, 2005.

• Economic Management

  As part of a two-project initiative that began in 1998, CIDA supported a $3.2-million professional upgrading program in public administration and economics for personnel in the Ministry of Economy and Planning (MEP) and other government ministries. The program improved the quality of economic decision-making within the Cuban system by introducing new methods and expertise to professional staff. Through a closely-related project, CIDA also provided MEP with up to $2.96 million in informatics support and technical training in informatics and statistics. The training portion of this component improved the research, policy development and financial analysis capacities of MEP, the National Statistics Office, the Central Bank of Cuba and the National Institute for Economic Research. Both projects have been highly successful with enthusiastic participation by MEP. CIDA has extended twice the latter project for approximately $717,000 to create a national extranet for the MEP, which will facilitate continued information sharing and project sustainability. The project will expire on March 31, 2005.

• Capacity Building and Industrial Sector Reform

  With the assistance of The Northern Alberta Institute of Technology (NAIT), this three-year $3.1 million program at the new National Industrial Certification Centre (CNCI) of the Cuban Ministry of Basic Industry (MINBAS) retrained and provided internationally-recognized certification to Cuban trades workers in areas of electricity, machinist, millwright and instrumentation. A new phase II was approved in September 2004 and will terminate by September 2009 with a contribution of $5.0 million. This should allow Cubans to work on joint ventures between Cuban and foreign firms (including Canadian firms in the oil and gas, mining and tourism industries). Cuba has rehabilitated and equipped a training centre outside Cienfuegos and has invested close to $8.0 million in the initial project. Another component of the project aims at implementing a technical certification program that will allow Cuba to certify its industrial workers to international standards.

Local Development

A bilateral contribution to Oxfam Canada and Alternatives' programs in Cuba supports local initiatives in popular participation and food security. Along with other NGO initiatives funded under the Canada Fund for Local Initiatives and the Partnership program, this helps to build local capacity in Cuba's nascent civil society and supports local participation and good governance.

OXFAM - This second phase of the Cuba NGO Strengthening Program was concluded in 2003. Since 1996, the program undertook initiatives designed to strengthen the capacity of Cuban NGOs to promote a participatory and decentralized model of sustainable development. The three principal objectives included: (i) strengthening the capacity of farmer cooperatives and urban food producers to promote food security; (ii) strengthening the capacity of Cuban social organizations to promote participatory development solutions through popular education and pilot projects; and (iii) fostering greater collaboration and learning among Canadian and Cuban NGOs. A Gender Equity approach has been pursued under the first two objectives. The project was initially funded through Canadian Partnership Branch (1996-1999) and the Bilateral Program supported the second phase from 2000 to 2003.

Alternatives is implementing an innovative community-based development project valued at $1.2 million in the Rio Cauto region of Oriente, in partnership with the Centre for Psychological and Sociological Research (CIPS) of the Cuban Ministry of Science, Technology and the Environment (CITMA). The goal of the project is to assist Cuba in designing and implementing a model for the management of local development by reinforcing rural Popular Councils in the Province of Santiago de Cuba. The project comprises social, economic and environmental development.

UNDP–PDHL The Support for Local Human Development in Cuba project is a $5 million initiative (2004-2009), delivered through UNDP offices in Cuba. The goal of the project is to support the strategy for local development in Cuba and contribute to the improvement of living conditions of the population in five eastern provinces. The project will strengthen local capacities to take charge of local development processes and generate improvements in areas of technical and administrative decentralization, access, quality and sustainability of local services. Cross-cutting themes include gender equality, environment and human resource strengthening.

Social Sector Development

Since 1995, CIDA has also supported the donation of approximately $14.8 million in Canadian pharmaceutical products, medical supplies and equipment to Cuba through shipments coordinated by Health Partners International of Canada (HPIC) in collaboration with the Cuban Ministry of Public Health (MINSAP). CIDA has approved a Health Sector Multi-Year Program in 2003 with these same partners. Moreover, HPIC has sent additional medical equipment and pharmaceutical products to Cuba without CIDA support.

Environment and Climate Change

Environment

In September 2002, a new environmental project to modernize the management of the forestry sector in Cuba and to support Cuba’s efforts to increase its forest cover from 21% to 27% began its operations. The project represents a CIDA contribution of up to $1.2 million over three years.

A small pilot project to test Canadian technology in the clean up of Rio Almendares, Havana’s largest river, is coming to completion . The purpose of the pilot ($225,000) was to demonstrate an ecological-engineering system to reclaim water and nutrients from municipal wastewater entering the river from the City of Havana.

Climate Change

In 2001, CIDA co-sponsored an international seminar on the Clean Development Mechanism. Subsequently, several Cuban institutions made proposals with Canadian partners under the Canada Climate Change Development Fund (CCCDF). Although none were accepted for funding under the CCCDF, CIDA's bilateral program chose several of the most promising of these initiatives for funding:

UNDP: The objective of this $350,000 project is to strengthen the links between the UNDP-led Caribbean Risk Management Network and a larger CIDA project entitled "Adapting to Climate Change in the Caribbean Region" (CPACC). The project seeks to build capacity for climate change adaptation in Cuba and the Dominican Republic and to link these activities to the work of CPACC, which focuses on the CARICOM member states. The goal is to ensure the effectiveness and coordination of Canada's contribution to risk management and adaptation to climate change in the Caribbean, as well as test the adaptation framework developed by UNDP.

CIDA also has two additional climate change projects in Cuba:

1. A $250,000 project with the University of Toronto to support efforts to integrate climate change into Cuba’s broader institutional, policy and national goals of sustainable development, equity and poverty reduction through training in such activities as energy efficiency, distribution and access, emission reductions and building retrofitting. This project was completed in 2004.

2. The Eco-Efficiency Communities Initiative presented by Suncurrent Industries Inc. with its Cuban counterpart EcoSol Solar entails a CIDA contribution of up to $800,000 over three years. This project aims to manage and reduce greenhouse gas emissions associated with climate change by supplying clean and renewable alternate energy sources to areas of Cuba currently without (or with limited) power, thereby reducing Cuba's reliance on polluting fossil fuels and the burning of forest wood products.

The Canada Fund for Local Initiatives in Cuba supports a variety of small-scale, local development projects in areas such as education, health, housing, water, sanitation, food security and community development. The Canada Fund budget covering fiscal year 2004-2005 was $200,000, but in October 2004, the figure was increased by $150,000 to contribute to the recovery from Hurricane Charley in the Province of Havana.

Program Support Unit: This initiative (with a multi-year budget of $2.4 million) was launched in 2003 and will contribute to the efficiency and efficacy of CIDA’s cooperation program in Cuba. The project’s objective is to support CIDA, Canadian organizations and their Cuban partners in the fulfillment of their cooperation activities.

PARTNERSHIP

Over the last ten years, CIDA has supported various initiatives by Canadian non-governmental organizations, academic institutions, cooperatives, unions, professional associations and companies aimed at establishing and strengthening linkages with Cuba. CIDA’s Canadian partnership branch has contributed $44 million to projects in Cuba since 1994. CIDA partnership funding is provided on a cost-sharing basis, which includes considerable financial and in-kind resources from CIDA’s partners in Canada and Cuba.

Voluntary Sector Division

Non-Governmental Organizations

Some of CIDA Partnership Branch's main funding windows are its Non-Governmental Organization (NGO) Division and NGO Project Facility. Support to Cuba by the NGO Division was initially focused through the Canada-Cuba Inter-Agency Project (CCIP) led by OXFAM Canada. This project has strengthened cooperation between Canadian and Cuban NGOs. Many other Canadian NGOs have received CIDA funding for projects in Cuba over the past five years. Some examples of current initiatives include:

• A two-year program from CARE-Canada (2003 to 2005) in Villa Clara, Bayamo and Pinar del Rio to improve the quality of access to basic social services and capacity of NGOs/partner organizations to manage development processes ($670,140)

• Projects with Comité de Solidarité Tiers-Monde de Trois-Rivières, ranging from one to three years in duration: electrification of rural health clinics through solar energy ($508,833); capacity building in the development and implementation of dengue fever and HIV/AIDS awareness programs ($300,000) and an educational and social intervention project in Old Havana ($280,000).

• Three three-year World Wildlife Fund Canada projects with the National Centre of Protected Areas to manage the natural diversity and protect species in Cuba's vital Zapata wetland region, the National Park “Alejandro de Humbodlt” and the Archipelago de los Canarreos. (Zapata 1-$183,000; Zapata II- $290,000; Alejandro de Humbodlt - $403,000; Archipelago de los Canarreos - approximately $650,000) and more recently, “Establishing a Modern, Sustainable Fishery in Northern Villa Clara” between WWF and the Ministry of Fisheries of the Republic of Cuba (2004 to 2007; $550,000).

OXFAM Canada, CARE Canada, and World Wildlife Fund Canada all have resident representatives in Havana who are responsible for coordinating projects on behalf of their international members.

Institutions

Canadian Partnership Branch's Voluntary Sector Division supports many capacity-building projects linking Canadian institutions with their Cuban counterparts. Examples of current projects include:

• A six-year environmental health and local government strengthening project by the Canadian Urban Institute in Havana and Sancti Spiritus province, with the Grupo para el Desarrollo Integral de la Capital and the National Environmental Health Unit ($231,250)

• A three-year program with Life-Cycles Project Society of British Columbia in Urban organic agriculture with the Asociación Cubana de Técnicos Agricolas y Forestales ($275,000).

• A two-year program with the Centre International de Solidarité Ouvriere to train union leaders with the Centrale de Travaileurs et Travailleuses de Cuba ($102,465).

• A demonstration project in Havana Province of The International Centre for Sustainable Cities is the “Enhancing Sustainable Dairy Production Capacity in Cuba– Farmer to Farmer” with the National Small Farmers Association (ANAP) of Cuba (2004 to 2005; $ 65,000), whereby Canadian dairy farmers will share their experience in herd management with Cuban farmers to increase milk production from sustainable, pasture-based dairy units.

• The Evergreen Foundation is implementing a five-year program entitled “Environment Restoration Partnership” with the Fundación Antonio Nuñez Jimenez de la Naturaleza y el Hombre. The goal of this program is to implement an Environmental Education Program that builds the capacity of Cubans to contribute to sustainable development by responding to local environmental issues that enhance quality of life. (2004 to 2007; $270,000).

Universities & Colleges

The Universities and Colleges program supports several university linkages projects, which were approved through a competitive process. These current and recent projects with universities and colleges are generally five years in duration:

• A project with Northern Alberta Institute of Technology and the Escuela Superior de la Industria Básica to develop a cadre of technically prepared Cuban Instrumentation workers (2000 to 2004; $362,000)

• A project with the University of New Brunswick programs in partnership with several Cuban universities, including Universidad Central de las Villas, Universidad de Oriente, and the Higher Polytechnic Institute Jose Antonio Echevarria in biomedical engineering (2002 to 2005; $750,000) and marine sciences (1997 to 2002; $710,430)

• University of Sherbrooke initiative to introduce a Master’s program in cooperative management at the University of Havana (1998 to 2004; $703,387)

• Dalhousie University project (with the support of Saint Mary’s University) with three Cuban universities to establish a Master's program in integrated coastal zone management (1999 to 2004; $685,279)

• A project with the University of Guelph and the Higher Polytechnic Institute Jose Antonio Echeverria to enhance environmental engineering and management capacity (2002 to 2007; $750,000)

• A project with Dalhousie University and the National Coordinating National Coordinating Centre for Clinical Assays to design and manage psycho-pharmacological clinical trials. (2002 to 2006; $750,000)

• A project with the New Brunswick Community College (Saint John Campus) and the University of Cienfuegos to produce highly qualified and motivated graduates in Mechanical and Industrial Engineering (1999 to 2003: $370,477)

• A University of Manitoba project with the Instituto Nacional de Higiene, Epidemiologia y Microbiologia to build capacity in environmental health risk assessment and management (2000 to 2005; $543,064)

• A New Brunswick Community College, St. John project with the University of Cienfuegos to create an IT Centre of Excellence which will contribute to the computarization of the Cuban Society (2003 to 2008; $536,797)

• A New Brunswick Community College, St. Andrews project also with the University of Cienfuegos for a Centre of Excellence (Refrigeration and Air Conditioning). (2003 to 2008; $631,378)

• An Institut de Technologie Agroalimentaire de la Pocatiere project with the University of Granma to promote agricultural sustainable development of the oriental part of the country. (2003 to 2008; $533,400).

Youth Programming

Canada World Youth is collaborating with the Cuban Ministry of Education in its tenth annual youth exchange program. CWY is hosting three exchange programs with Cuba. All three groups consist of 9 Cuban and 9 Canadian participants. The Canadian host communities are Windsor, Digby and Bridgewater (Nova Scotia) and Cuban communities are Manicaragua, Remedios and Quemado de Guines (Central Cuba). Participants spend three months in Nova Scotia and three months in Central Cuba with host families. Budget 2002-2005 ($1.5 million over the three years).

CIDA’s International Youth Internship Program, part of the Canadian government's youth employment strategy, has assigned over 30 young graduates to work in Cuba for up to six months over the last few years.

Industrial Cooperation Program

The Industrial Cooperation (INC) Program supports Canadian private sector firms in their efforts to create long-term sustainable business associations with Cuban partners. The INC Program has supported projects in various sectors of the economy, including energy, agriculture, health, mining and industrial development (partnership associations). Since 1994 INC has approved 53 contributions to perform developmental activities associated with Canadian investment partnership in Cuba. Our support has contributed to complement local development efforts by providing advanced technology, export markets opportunities and capital to develop new infrastructures in Cuba. CIDA INC has contributed $10.8 millions for these activities that helped confirm more than $43 millions worth of investment and the creation of at least 320 jobs in Cuba.

MULTILATERAL

CIDA works to promote effective multilateral approaches to poverty reduction and development. CIDA’s Multilateral Branch provides core funding to a number of United Nations (UN) development organizations that have active programs in Cuba.

The World Food Program (WFP) has a substantial development food aid program of USD$22.6 million from 2001 to 2005 in the Eastern Provinces of Cuba. The United Nations Development Program has a yearly program budget in Cuba of over $5.5 million. It concentrates aid in the social and environmental sectors, as well as assisting Cuba to implement economic reforms. UNICEF is expanding access to safe drinking water and basic sanitation in rural communities, developing a non-formal pre-school education program and, together with the United Nations Population Fund, improving the quality already achieved in the areas of maternal and child health. Other Canadian-supported UN organizations operating in Cuba include the Pan American Health Organization and the Food and Agriculture Organization. In 2004, Multilateral approved a Care-Canada humanitarian Assistance project “Securing Livelihoods: Providing Urgent Relief Supplies and Support to Hurricane Ivan Survivors in Cuba and Jamaica" ($292,500 for Cuba).

The International Development Research Centre (IDRC) has developed an active program in Cuba primarily focused on research initiatives in public health and urban agriculture. Disbursements to this program in 2002 were the vicinity of $270,000.