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Ottawa has announced that it will slash approximately $380 million in its foreign aid budget – cuts that will directly impact many African countries.
A source within the Canadian International Development Agency (CIDA) has announced that Benin, Niger, Cambodia, Rwanda, Zambia and Zimbabwe are projected to lose virtually all Canadian aid funding. Instead, CIDA has reduced its list of African 'countries of interest' to Ethiopia, Ghana, Mali, Mozambique, Senegal, Sudan and Tanzania – along with reduced financial aid to these seven nations.
Oxfam Canada has echoed pleas from several African groups and unions for Canada to reconsider the cuts. They ask for Canada to unite with other countries to help raise the hundreds of millions of dollars necessary to ward off the impending famine in the Sahel belt. As a result of recent rebel unrest in northern Mali and the subsequent military coup, Canada has suspended aid to that country.
Mamadou Goita, executive secretary of the Western African Peasants' and Farmers' Network in Mali, stated: "The fact that there is this cut on the budget for development issues is a very, very sad situation for us. Because my country, particularly, has a strong relationship with the Canadian government for a long time. So the fact that this is happening now is a very critical thing. This is also when we need more support from Canada. And we hope that it will be reconsidered sometime very quickly."
Another nation being monitored in particular following these cuts is Tanzania, one of CIDA's key partners. The planned cuts to Tanzania – even though it is still considered a ‘country of interest’ — was a surprise to many observers, since it has been an important Canadian ally in East Africa, and is a home to large investments by Barrick Gold and other Canadian companies.
In fact, Canada has a history of bolstering its relations with Tanzania, writing off over $84 million in debt through the Heavily Indebted Poor Countries Initiative, whose goal is to ease the debt burden of the world's poorest countries. Also, Canada and Tanzania signed an agreement in 2003 to permit duty-free access for virtually all goods produced in Tanzania.
There are divergent views in Tanzania as to the effect the cuts will have. Dr. Abdallah Kigoda – the Chairperson of the Parliamentary Standing Committee on Finance and Economy, and a Member of Parliament in the National Assembly of Tanzania – said that "it should be noted that a big chunk of foreign aid pledged for development projects is yet to be disbursed. This will be another blow," affecting the implementation of development projects.
Zitto Kabwe - a member of the Tanzanian Parliament representing Kigoma North, and the Shadow Finance Minister and Chairperson Public Investments Committee – stated that "the amount of foreign aid we receive from Canada is very little compared to FDIs (foreign direct investments) from that country,” Kabwe notes that a large portion of profits on the FDIs through Canadian companies such as Barrick Gold are repatriated back to Canada. “In fact, other donors should do the same, and this will compel us to face the challenges and stand on our feet."
Commenting on the aid cuts to African's most needful nations, CIDA Minister Bev Oda reassured them of Canada’s continued commitment to development. "We're not abandoning countries. If there are needs, we will assess the best way to meet those needs," Ms. Oda commented. “What we’re saying is we’ve selected 20 countries [worldwide] in which we will focus our programming.”
CIDA President, Margaret Biggs explained that the countries that appear on CIDA’s revised 'countries of interest' list were selected on the basis of three criteria. Need was the first, she said, followed by Canada’s ability to engage with a country in a meaningful way, and then foreign-policy considerations.
While the debate over the appropriateness and timing of African aid cuts churns, many critics are questioning CIDA's continuing $30 million in aid to China. China is the world's second-largest economy, and has many human rights and environmental issues under heavy criticism.
SOURCES:
http://www.mcleodgroup.ca/topics/development/africa/index.html
http://allafrica.com/stories/201204161405.html
{N.A. Pierre is a freelance journalist, writer, and multi-media producer.}
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