Under the Sustainable Cities Initiative (SCI), Industry Canada (IC) facilitates a process whereby Canadian companies, non governmental organizations (NGOs) and municipalities, work with cities in developing countries or with an economy in transition, to address a range of urban problems generated by rapid urbanization. Nine million dollars in funding was provided in 2002-03 for a three year initiative to build upon an earlier pilot. The target was to engage 17 cities in total in Africa, Asia, Central America, Eastern Europe and South America.

SCI’s overall objective is to increase exports of Canadian sustainable development technologies and services. It also:

brands Canada as a pre-eminent source of technology, expertise and products for urban sustainable development;
promotes market development and trade opportunities for Canadian firms;
enhances the quality of life in developing and emerging economies as well as promotes sustainable development;
facilitates business partnerships among firms, nongovernmental organizations (NGOs), and government to access market opportunities.

Key Findings

SCI remains relevant to Government of Canada and Industry Canada priorities, and is viewed as making an important contribution to addressing a serious and urgent global challenge. Its approach to addressing this challenge is widely regarded as reflecting the best of current theory and practice. It has demonstrated that its process can be successfully replicated under a wide range of situations that may have applicability for other initiatives. It does not overlap or duplicate other Canadian international development and trade promotion programs and if anything, it does not lever as much as it could from them.

SCI’s effectiveness has been hampered since its inception by:

a confusing mandate that has led to an unproductive debate (amongst stakeholders interviewed for the evaluation) concerning whether the program should include funding for project implementation. Is it a trade development program or a development assistance program? If it is the former, it does not require funding for implementation, but may require specialists who can identify funding sources and arrange financing. If it the latter, then it does require funding, as well as specialists who can oversee high dollar value/high risk projects). The Department of Industry Act provides the Minister with a mandate for industry and technology, trade and commerce and small businesses. There is no mandate for development assistance;
inadequate staffing levels;
the extent of reliance that was placed on interpreters due to the language skills of the City Team members both from Canada and the participating cities;
inconsistent application of its own city selection criteria;
an inability to effectively vet Canadian partners;
discontinuities in staffing and in organizational placement within IC.

Notwithstanding these impediments, the program has generated a great deal of goodwill, and is highly regarded by most who have had extended contact with it. Businesses and NGOs that have established ongoing relationships with the program remain optimistic about its potential to benefit themselves and the cities they are working actively with. The results were inconclusive on the extent to which SCI has met its other stated objectives. While the foundations may have been laid, it will take additional time to see significant results.

The program should be continued, provided its design flaws (especially the mandate) and operating flaws (staffing, selection criteria, vetting) are corrected. To give SCI a mandate that encompasses both trade and development assistance, it may be necessary to formally make it a horizontal initiative with program responsibility assigned to more than one department.

Recommendations

It is recommended that the Director General, Sustainable Technologies and Services Industries Branch consider implementing the following if SCI is renewed:

clarification and better communication of SCI’s objectives so that all stakeholders know whether it is a trade development or a development assistance program. If it is to be a combination of trade and development assistance, then a horizontal initiative involving departments and/or agencies with the appropriate mandate needs to be established;
more rigorous application of the existing city selection criteria;
better matching of the language skills of IC SCI staff with the requirements of the cities with which they are working;
better alignment of the number of cities SCI is active in with SCI’s actual staff levels.

Final Report (PDF - 240 KB - 28 pages)
Management Response (PDF - 10 KB - 2 pages)

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