canadian aid

Canadian aid is important

Canadian aid works and is making a real difference by supporting people living in poverty with access to quality health care, education and economic opportunities. Read more below about why Canadian aid is important.

What is Canadian aid?

Countries use many terms to describe what is their funding to support low- and middle-income countries. “Canadian Aid” can be used to describe what the Government of Canada calls “international assistance.” Canada defines Total Official Support for International Assistance – or International Assistance for short – as “all officially supported resource flows to promote sustainable development in developing countries and to support development enablers and address global challenges at regional or global levels.” The primary objective of Canada’s international assistance is to contribute to global efforts to eradicate poverty around the world.

What kinds of activities are funded by Canadian aid?

Most Canadian aid contributions go towards development projects, humanitarian responses, and peace and security efforts that support critical aspects of well-being such as

  • basic health care
  • nutrition
  • education
  • water, sanitation and hygiene
  • health infrastructure and health systems
  • health training
  • human resources
  • family planning
  • sexual and reproductive health
  • infectious disease prevention and treatment
  • food systems

Why should we send money abroad when we have people living in poverty in Canada?

Canada must invest in international development because it fosters global stability, economic growth, and humanitarian progress, which ultimately benefits everyone. By addressing poverty, health crises, and inequality in low- and middle-income countries, high-income nations help create stronger trading partners, reduce the risk of conflict and migration, and promote a more prosperous and secure world. Additionally, investing in international development aligns with global solidarity and moral responsibility, ensuring that basic human rights and opportunities are accessible to all, regardless of where people are born. 

We cannot compare different peoples’ suffering however we can assess our ability to help prevent different kinds of suffering. It is both the right and smart thing to do to support people in low- and middle-income countries to educate their children, feed their families, and care for their sick. Ensuring that everyone, everywhere has the opportunity to thrive prevents disease outbreaks, builds sustainable markets and communities, and helps defuse crises like armed conflicts before they begin.

How much should countries spend on aid and what countries are currently reaching their targets?

Since 1970, the United Nations target set under Canadian leadership has been for developed countries to give 0.7% of their gross national income to development assistance (global aid spending). Countries who reached or surpassed the target of 0.7% of GNI in 2023 included:

  • Norway (1.09%)
  • Luxembourg (0.99%)
  • Sweden (0.91%)
  • Germany (0.79%)
  • Denmark (0.74%)

How much does Canada actually spend on aid?

Canada’s expenditures on aid for 2022 amounted to US$ 7.4 billion, approximately CAD$ 9.6 billion. This represents 0.37% of Canada’s Gross National Income (GNI), meaning 37 cents for every $100 Canadians earned.

How does Canada compare to other countries in terms of the amount of aid we spend?

Canada currently gives 0.38% of its Gross National Income (GNI) to international assistance. In other words, Canada provides US$ 143 of Official Development Assistance (ODA) per Canadian, well behind the average for the largest donors (the Scandinavian countries, Germany and Luxembourg), which amounts to an average of US$ 483 per person. Canada ranks 14 among 32 DAC countries in total ODA spending, but its capacity to fund ODA ranks 7th among these countries.

Other high-income countries that contribute to aid (all members of the G7):

  • United States (0.24%)
  • Italy (0.27%)
  • Japan (0.44%)
  • France (0.50%)
  • United Kingdom (0.58%)

How does Canada select which issues and countries receive assistance?  

The primary objective of Canada’s international assistance policy is to contribute to global efforts to eradicate poverty around the world. To achieve this, Canada has adopted a feminist approach through its Feminist International Assistance Policy (FIAP) to ensure that women and girls are empowered through its development, humanitarian and peace and security assistance.

The FIAP applies a human rights approach to promoting six interlinked areas for action:

  • gender equality and empowerment of women and girls
  • human dignity, covering gender-responsive humanitarian action, health and nutrition, and education;
  • growth that works for everyone, which targets areas such as sustainable agriculture, green technologies and renewable energy;
  • environment and climate action focusing on adaptation and mitigation, as well as on water management;
  • inclusive governance, including democracy, human rights, the rule of law and good governance; and
  • peace and security, by promoting inclusive peace processes and combatting gender-based violence.

Guided by the FIAP, Canada relies on a range of partnerships to identify countries where the need is the most.

How do Canada’s priorities change with different governments?  

Like all budget matters, international assistance levels are set by the Minister of Finance and the Prime Minister, and tabled for approval, as part of the overall budget process, by Parliament.  The Minister of International Developments makes recommendations but is not involved in decision-making. 

After winning an election, the new government outlines its agenda and priorities in the Speech from the Throne. This speech, delivered by the Governor General on behalf of the government, highlights the key initiatives and policy directions that the government intends to pursue during its term in office. It serves as a roadmap for the government's legislative agenda and policy initiatives and often is tied to the election platform. 

Additionally, the Prime Minister assigns new Ministers and provides each cabinet minister with a mandate letter, which outlines their specific responsibilities and priorities. These letters guide ministers in implementing the government's agenda within their respective departments. Mandate letters often include instructions on key policy areas, strategic objectives, and deliverables expected from ministers. These documents provide a framework for the government to set its agenda and make decisions about the policies and programs it will prioritize to address the needs of Canadians and respond to the challenges facing the country. Current governments are also allowed to update mandate letters, embark on new policy consultations, and set new priorities when in power. 

Which programmes and organizations are currently funded?  

Under the current government, Canada operates within a Feminist International Assistance Policy (FIAP) that ensures all Canada’s international development programming and commitments have a gender lens and follow a feminist approach. Within this lens, Canada funds organizations and supports programs through bilateral and multilateral assistance.

In 2022-2023, the top multilateral organizations to receive funding were:

The top-funded Canadian organizations were:

How does Canada select how much assistance countries and issues receive?  

Canada's process for allocating assistance to countries and addressing issues through foreign policy and international development is guided by policy priorities, needs assessments, strategic planning, partnerships, budget allocations, and monitoring and evaluation mechanisms. These elements work together to ensure that Canada's assistance efforts are targeted, impactful, and aligned with its broader objectives for global development and humanitarian assistance.

  • Policy Priorities: Canada's foreign policy and international development priorities are shaped by various factors, including government mandates, global trends, international commitments, and consultations with stakeholders. These priorities guide the allocation of assistance to address specific issues and support countries in need.
  • Needs Assessment: Canada conducts assessments to identify the most pressing development challenges and humanitarian crises around the world. These assessments consider factors such as poverty levels, conflict and instability, environmental sustainability, health crises, and access to education and basic services.
  • Country and Regional Strategies: Canada develops country and regional strategies to guide its assistance efforts in specific geographic areas. These strategies outline the objectives, priorities, and approaches for engagement, taking into account the unique context and needs of each country or region.
  • Partnerships and Collaboration: Canada collaborates with international organizations, multilateral institutions, civil society organizations, and other stakeholders to leverage resources, expertise, and networks for more effective assistance delivery. Partnerships help amplify Canada's impact and ensure coordinated responses to global challenges.
  • Budget Allocations: Canada allocates funding for foreign aid and international development through its annual federal budget. The budget process involves government departments and agencies, parliamentary oversight, and consultations with stakeholders. Funding decisions reflect government priorities, policy objectives, and resource availability.
  • Monitoring and Evaluation: Canada monitors and evaluates the effectiveness of its assistance programs to assess their impact, identify lessons learned, and inform future decision-making. Performance indicators, evaluations, and feedback mechanisms help ensure accountability, transparency, and continuous improvement in assistance delivery.

Does Canada give aid to countries that are considered violators of human rights, enemies, or terrorists?  

Canada’s international assistance is guided by strong anti-terrorism laws and protections. In 2023, recognizing the humanitarian and economic crises in countries like Afghanistan, Canada introduced legislation to facilitate humanitarian aid – as well as immigration activities and other geographic operations – in Afghanistan and other geographic areas controlled by terrorist groups. The legislation will make important changes to Canada’s Criminal Code to allow desperately needed aid to be delivered by Canadian organizations to the people of Afghanistan and other areas, while maintaining Canada’s anti-terrorism laws and protections.

How does Canadian aid work around sensitive or illegal issues in some countries? For example, how can we help women access abortion or promote LGBTQ+ rights in a country where it is condemned?

Canada's approach to human rights – as described in its Feminist International Assistance Policy – recognizes how multiple forms of discrimination can prevent individuals from fully enjoying them. Gender and sexual orientation can be discriminating factors, just like race, age or migratory status for instance.  
 
Within the limits of what is permitted by the law of another state, Canadian aid helps to respond to problems arising from restrictions on human rights. Although abortion is often politicized, the fact remains that it is a health issue. It is not by making abortion illegal that one can stop a woman from ending an unwanted pregnancy. Additionally, more than half of all unwanted pregnancies end with an abortion and 45% of those are unsafe. As a result, unsafe abortions are among the leading causes of maternal deaths. The same applies to sexual orientation and gender. When identity is taboo or illegal, it leads to the invisibilization and neglect of diseases, including sexually transmitted illnesses, and to the restriction of access to services.
 
Canada can promote human rights, including sexual and reproductive rights, in global fora, while its international assistance can help mitigate the impact on human lives caused by the restrictions of these rights.

Does foreign aid create conditions in which countries become dependent on aid and result in economic decline?

Aid plays an important role in reducing poverty and inequality, stimulating local economies, building capacity, and promoting human development as it complements and supplements national resources and provides additional financial resources, which assist in ameliorating a country’s economy and political environment. Decades of development assistance have shown that development programs, especially people- and country-centered ones, maximize the impact of aid and help achieve long-term, sustainable development.  
 
For example, Botswana was among the poorest countries in sub-Saharan Africa in the 1960s, with an average life expectancy of 37 years. With the support of foreign aid and a strong government, it is now an upper middle-income country with a life expectancy of 64 years. In 1966, when the country achieved independence, net ODA comprised 31.4% of its Gross National Income (GNI), indicating heavy reliance on foreign aid as a source of revenue. The percentage has fallen steeply over time and has remained at less than 1.0% since 2011.

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