CANADIAN INTERNATIONAL DEVELOPMENT AGENCY - CIDA

CANADIAN INTERNATIONAL DEVELOPMENT AGENCY - CIDA

October 25, 2010 16:00 ET

Minister Oda Unveils CIDA's Sustainable Economic Growth Strategy

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2010) - The Honourable Beverley J. Oda, Minister of International Cooperation, today unveiled CIDA's strategy for sustainable economic growth, which will help developing countries reduce poverty through stimulating long-term growth in their economies and providing skills training and job opportunities for their citizens.

"Focusing Canadian development assistance on sustainable economic growth, along with CIDA's two other priorities of increasing food security and securing the future of children and youth, is key to delivering tangible results and helping to better lives in the developing world," Minister Oda told an audience of students, academics, and aid partners at the University of Toronto's Munk School for Global Affairs. "Sustainable economic growth is the engine for developing countries to rapidly and sustainably reduce poverty."

Through the Sustainable Economic Growth Strategy, CIDA will support work to create the long-term growth that will raise the income levels and resilience of poor women and men in developing countries. The strategy focuses on three paths: building economic foundations, growing businesses, and investing in people.

Minister Oda also announced $155.3 million in funding for projects supporting CIDA's Sustainable Economic Growth Strategy aimed at achieving concrete results under each path in Africa, Latin America, Asia, and Eastern Europe. The projects will help create opportunities for people living in poverty in these countries to earn a decent living and will enable governments to make long-term investments in development.

"These projects illustrate how CIDA's work through the Sustainable Economic Growth Strategy will help developing countries create the necessary economic framework for sustainable growth to take place, enable a productive and competitive private sector to create jobs, and improve access to and benefits from economic opportunities," added Minister Oda. 

One such project involves a $15.7-million investment with Plan International Canada to promote African grassroots economic security (PAGES) through education and skills in Ethiopia, Ghana, Mali, Senegal, and Tanzania. The program will help girls and marginalized children access quality primary education and will provide vocational and entrepreneurial skills to youth and women.

"Increasing evidence shows that when people are given the opportunity to save money and participate in strategic income-generating activities, children benefit," said Rosemary McCarney, President and CEO, Plan International Canada. "Plan's PAGES program recognizes the significant role that youth play as current and future economic actors. By investing in women, men, and youth to advance their practical knowledge, tangible skills, and savings opportunities to build economic foundations, PAGES aims to improve children's lives and reduce the incidence of poverty that tends to flow from one generation to the next."

For more information on the Sustainable Economic Growth Strategy and CIDA's priority themes of food security and children and youth, visit CIDA's website at www.acdi-cida.gc.ca. For more information on the Sustainable Economic Growth Strategy and the projects announced as part of the strategy, please consult:

  • Strategy-at-a-Glance

  • $155.3 million in new initiatives supporting CIDA's Sustainable Economic Growth Strategy

Backgrounder

CIDA'S STRATEGY TO STIMULATE SUSTAINABLE ECONOMIC GROWTH IN DEVELOPING COUNTRIES

Strategy-at-a-Glance

CIDA's strategy to stimulate sustainable economic growth in partner countries and regions focuses on three paths:

  • Building economic foundations

  • Growing businesses

  • Investing in people

Strategic objective

The strategy seeks to help developing countries increase their productive capacity and provide new opportunities for their citizens.

Priorities for action

Building economic foundations

  • Strengthen public financial and economic management capacity and institutions at the local, regional, or national levels

  • Improve legal and regulatory frameworks and systems and their implementation, all of which are key to stable national and local economies

  • Support governments, businesses, and industries in widening their business base and integration into regional and global markets

  • Build national and local capacities in managing natural resources and the environment in a sustainable and socially responsible way to support economic growth

Growing businesses

  • Strengthen support for the development and growth of micro, small, and medium-sized private sector businesses, with a special emphasis on women

  • Aim to increase the productivity and sustainability of businesses, based on realistic market potential to fill value chain gaps, which will result in increased long-term formal employment opportunities for the poor

  • Strengthen and increase the availability of financial institutional products and services, including microfinance, which will result in greater job creation for the poor

Investing in people

  • Increase access to essential, demand-driven skills training and knowledge needed for formal labour market participation, including literacy and numeracy

  • Increase the availability of appropriate, meaningful, and structured workplace learning opportunities, including in the agricultural sector

  • Support relevant, results-based learning initiatives, which will stimulate business growth, market expansion, and productivity

Backgrounder

$155.3 million in new projects supporting CIDA's Sustainable Economic Growth Strategy

The Government of Canada, through CIDA, is providing $155.3 million to support 12 sustainable economic growth projects that demonstrate action along the three paths of the Sustainable Economic Growth Strategy.

Building economic foundations

Americas and Africa: $40 million to the multilateral Aid-for-Trade initiative for 2009–2014 to increase jobs and economic opportunities in the Americas and Africa through enhanced participation in the global economy. About one quarter of this investment will be devoted to making substantive improvements to the lives of women traders, entrepreneurs, and small-scale farmers. The project will include information and training programs that target female traders in order to raise awareness on the implication of sanitary and phytosanitary standards and trade barriers. Other activities will consist of capacity building with governments and the private sector in the regions to monitor the impact of trade rules and standards on female and male producers.

Partners: African Development Bank ($15 million); Inter-American Development Bank ($10 million); World Bank Trade Facilitation Facility ($5 million); World Trade Organization ($7.5 million); Advisory Centre on WTO Law ($2.5 million).

Peru: $12.7 million to enhance the development impact of extractive industries in Peru
(Phase I (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/A034599001) ; Phase II (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/A034599002)) in order to contribute to more equitable economic growth for local populations in selected areas where extractive industries are active. The project will strengthen expenditure management and accountability capacity of 30 municipal governments to ensure extractive sector revenues reach the people who need them most. In parallel, citizens and civil society organizations will be provided with relevant information on municipal expenditures so that they can better hold their municipal governments to account. The project will link the supply chains of extractive companies and small and medium-sized enterprises operating locally so that more contracts are awarded to local businesses. It will also improve access to finance for rural populations by providing local financial institutions with know-how, advice, and training to extend microcredit services to rural municipalities in areas where extractive industries are active.

Partner: International Finance Corporation.

Indonesia: $7.3 million to restore coastal livelihoods in Indonesia (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/A034028001) with a focus on building social and ecological resilience in mangrove ecosystems. Some 86,000 natural resource-dependent people in 60 vulnerable communities in Indonesia will directly benefit and see their incomes rise by 35 to 40 percent through the implementation of technologies, regulations, and policies that are more appropriate. Another 300,000 will benefit indirectly from the long-term enhancement of fisheries and improved access to natural resources. This project will provide the environmental services and enabling environment needed for the local economy to grow sustainably. Activities will consist of technical training and skills building for community-based organizations and government in order to develop alternative livelihoods, sustainable aquaculture, small enterprises for fisheries and other natural resource products, women's leadership role and access to productive resources, and the capacity of local government and non-government stakeholders in coastal resource management.

Partner: Oxfam Canada.

Asia, Africa, and the Americas: $18.5 million over five years to the Municipal Partners for Economic Development (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/S065090001) program to improve four key components of local economic growth: development planning, political leadership, enhanced municipal services to businesses, and increased revenue generation or access to financing in up to 45 local governments in Vietnam, Cambodia, Mali, Burkina Faso, Tanzania, Nicaragua, and Bolivia. In partnership with seven local government associations (one in each country), necessary policy and legislative changes will be identified for action; best practices for enhancing local economic growth will be shared; and up to 15 demonstration projects will be undertaken to model municipal services in economic development. Technical assistance to local government associations will be provided to increase their capacity for policy development and political representation so that that national legislation, regulations, and policies are supportive of an increased local government role in economic development.

Partner: Federation of Canadian Municipalities.

Growing businesses

Caribbean: $20 million to the Inter-American Development Bank for the Compete Caribbean (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/A034766001) initiative to support business climate reforms, business clusters, and small business activities within a comprehensive regional private sector development (PSD) strategy in the Caribbean. This will be done by developing national and regional PSD strategies, providing technical assistance to strengthen the business enabling environment, and establishing a challenge fund to create business clusters of small businesses to help them compete more effectively in international markets.

Partner: Inter-American Development Bank.

Mozambique: $13.2 million to increase agricultural production capacity, improve access to financial services and broaden market opportunities for up to 35,000 households in 7 districts of Cabo Delgado province. This will be done through interventions in the areas of agriculture, enterprise development, savings and credit, and community development.

Partner: Aga Khan Foundation Canada.

Vietnam: $10 million to fund the development and implementation of a five-year provincial small and medium-sized enterprise development (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/A032782001) plan that will expand economic opportunities for poor rural men and women, including ethnic minorities, in Vietnam's Soc Trang province. This project, including funds for technical assistance, will be managed directly by the province using provincial systems and institutions and will contribute to the province's broader socio-economic development objectives. It will provide an expected 3,000 small and medium-sized enterprises with training and business-development support services, supply 1,600 provincial district and commune level staff with training and technical assistance in public financial management, and increase access to small-scale infrastructure in 18 communes from five selected provincial districts, positively affecting approximately 160,000 people.

Partner: People's Committee of Soc Trang Province.

Benin: $12.1 million in support for Benin's microfinance sector (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/A033694001) toward the development of FECECAM, a federation of about one hundred savings and credit unions serving more than 500,000 members. It will also work to strengthen the capacity of microfinance professional associations (Alafia Consortium) to provide technical assistance to microfinance institutions, as well as the government institutions responsible for implementing the national microfinance policy and financial monitoring and control of the sector.

Partner: Développement international Desjardins.

Investing in people

Africa: $15.7 million to promote African grassroots economic security through education and skills (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/vLUWebProjEn/22353A8DD7BAD4BC852577770037398D) in Ethiopia, Ghana, Mali, Senegal, and Tanzania. This will improve access to basic education and sustainable livelihoods by reducing household poverty through access to microfinance systems and skills training for micro-entrepreneurship, the access of girls and marginalized children to quality basic education, and the provision of vocational and entrepreneurial skills for youth and women.

Partner: Plan International Canada.

Haiti and West Africa: $3.6 million to skills training for youth employment (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/S065107001) to provide on-the-job training to 1,200 young persons from Haiti, Mali, and Benin, and assist them with finding employment or starting a small enterprise at the end of their training. This model is expected to be replicable in other regions in each of the three countries.

Partner: Fondation Paul Gérin-Lajoie.

Africa: $2.2 million to strengthen higher education stakeholder relations in Africa (http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/projEn/S064952001) in order to improve university programs in Africa. The objective is to ensure the Association of African Universities (AAU) and African universities are better placed and able to work with external stakeholders, governments, private sector (with a focus on industry), and donors. Up to 27 African universities will benefit as experts from Canadian universities work with African counterparts to improve university–industry linkages. A case-study kit will also be developed for use in the AAU's existing workshop series.

Partner: Association of Universities and Colleges of Canada.

Contact Information

  • Office of the Minister of International Cooperation
    Jessica Fletcher
    Press Secretary
    819-953-6238
    or
    Canadian International Development Agency (CIDA)
    Media Relations Office
    819-953-6534
    media@acdi-cida.gc.ca