The document provides an overview of international development assistance budgets and terminology. It defines Official Development Assistance (ODA) and compares it to the International Assistance Envelope (IAE). It summarizes Canada's 2012 federal budget, which cuts $1.2 billion from international aid between 2011-2016. The budget disproportionately impacts the Canadian International Development Agency (CIDA) and International Development Research Centre (IDRC). It also analyzes the cuts to specific countries, most of which are in the bottom quarter of the Human Development Index and in Africa.

1. Federal Budget 101: Making sense of the numbers on aid
CCIC presentation to PE-Hub webinar, April 24, 2012

2. Overview of presentation
•What is ODA?
•What is IAE?
•International assistance, IAE and ODA
compared
•Federal Budget 2012
•CCIC analysis
•Institutional impacts
•Geographic programs

3. What is official development
assistance?
“Flows of official financing administered
with the promotion of the economic
development and welfare of developing
countries as the main objective, and which
are concessional in character with a grant
element of at least 25 percent.”
•Bilateral or multilateral
OECD

4. What is official development
assistance? (Take two)
ODA is international assistance
(a) identical to the OECD definition, but that also
“meets the requirements set out in section 4; or
(b) that is provided for the purpose of alleviating
the effects of a natural or artificial disaster or
other emergency occurring outside Canada” (but
is not required to meet the three criteria).
ODA Accountability Act, 2008

5. What is official development
assistance? (Take two)
Article Four relates to the three criteria of
the ODA Accountability Act:
(a) contributes to poverty reduction;
(b) takes into account the perspectives of the
poor; and
(c) is consistent with international human rights
standards.
ODA Accountability Act, 2008

6. What is the international
assistance envelope?
•Much of Canada’s ODA falls within an IAE
•IAE contains budgetary allocations by the
federal government for int’l cooperation.
•CIDA (63%), Finance (15%), DFAIT (8%),
IDRC (3%), Other (15%) etc.
•Traditionally five components
•BUT, not all IAE is ODA
•Not all ODA is in the IAE
•Some of the ODAAA is not ODA

7. Int’l Assistance, IAE and ODA
ODA Statistical Report 2009-10

8. So what isn’t ODA in the IAE?
•DFAIT
•Global Partnership Program ($117.55 mn)
•Counter Terrorism Capacity Building Program
($20.91mn)
•Anti-Crime Capacity Building Program
($13.6mn)
•Afghanistan Counter-Narcotics Program
($12.2mn)
•Specific to the ODA Accountability Act:
•Provincial refugee costs and transfers

9. Federal Budget 2012
2012–13 2013–14 2014–15 Ongoing
International 180.7 242.1 377.6 377.6
Assistance Envelope
(IAE)
Canadian 152.7 191.6 319.2 319.2
International
Development Agency
Foreign Affairs and 15.5 28.8 29.1 29.1
International Trade
Canada (IAE only)
International 6.2 15.3 23 23
Development
Research Centre
Royal Canadian 1.3 1.3 1.3 1.3
Mounted Police (IAE
only)
Natural Resources 5 5 5 5
Canada (IAE only)
Note: Totals may not
add due to rounding.

10. CCIC analysis of Budget 2012
•FY 2011/12  FY2014/15, IAE will decline
by 7.6% (CIDA’s cut, about 4.3%)
•Between FY2011/2012 and FY2015/16, Cdn
IAE will have been cut by about $1.2 bn
•Cf. CIDA analysis
•Cf. 8 % continued increase to $7.7 billion

11. CCIC analysis of Budget 2012
Fiscal Year FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16
International
Assistance
$5,100.7 $5,000 $4,819.3 $4,757.9 $4,622.4 $4,622.4
Envelope
(IAE)
IAE
Percentage
decline N/A N/A 3.6% 4.8% 7.6% 7.6%
relative to
FY2011/12
Estimated
$5,511.4 $5,767.4 $5,174.3 $5,112.9 $4,977.4 $4,977.4
ODA ($mn)
ODA
Percentage
decline N/A N/A 10.5% 11.6% 14.0% 14.0%
relative to
FY2011/12
ODA as a
percentage 0.34% 0.34% 0.29% 0.28% 0.26% 0.25%
of GNI

12. Institutional Impacts
Agency Share of IAE in Percentage share Departmental cut Departmental Total dollar cuts
2010/11 (Total of the IAE (FY as a percentage cuts by 2014/15 per Department
$4925.73) in 2009/2010) of the total cuts as a percentage (for FY2012/13 to
millions (FY2012/13) of current budget 14/15)
Canadian $3,583.53 72.8% 84.5% 8.9% $663.5 million
International
Development
Agency
Department of $303.25 6.2% 8.6% 9.6% $73.4 million
Foreign Affairs
and International
Trade
Finance Canada $810.20 16.4% 0 0 $0
International $170.88 3.5% 3.4% 13.2% $44.5 million
Development
Research Centre

13. Institutional Impacts
•CIDA will get disproportionately hit (relative
to its share of the IAE).
•IDRC cuts are proportional to their IAE
share, but hit their actual budget the hardest
•The cuts to DFAIT are in proportion to their
share of the IAE and the size of their budget.
•Finance Canada (which provided $384
million to the World Bank in 2010-11) is
untouched by the cuts in the IAE.

14. CIDA- Geographic programs
Countries of Focus Human Development Index (2011) Position relative to 187 other Cut from funding
HDI countries
1. Bolivia 108 Lower-middle Reductions
Colombia 87 Upper-middle
Peru 80 Upper-middle
2. Pakistan 145 Bottom quarter Reductions
Ukraine 76 Upper-middle
3. Ethiopia 174 Bottom quarter Reductions
4. Mozambique 184 Bottom quarter Reductions
5. Tanzania 152 Bottom quarter Reductions
Non-Countries of Focus Human Development Index Cut from funding
6. Cambodia 139 Lower-middle Completely cut – previously downgraded by
the Conservatives
7. China 101 Lower-middle Completely cut
8. Malawi 171 Bottom quarter Completely cut
9. Nepal 157 Bottom quarter Completely cut
10. Niger 186 Bottom quarter Completely cut – previously downgraded by
the Conservatives
11. Rwanda 166 Bottom quarter Completely cut – previously downgraded by
the Conservatives
12. Zambia 164 Bottom quarter Completely cut – previously downgraded by
the Conservatives
13. Zimbabwe 173 Bottom quarter Completely cut

15. Budget specifics for CIDA
•Three of CIDA’s countries of focus
(Colombia, Peru and Ukraine) unaffected
•Ten of the 13 countries affected lie in the
bottom quarter of the HDI ranking.
•Decision-making criteria for cuts
•Colombia and Peru, as well as Indonesia,
Vietnam and Bangladesh have become
important trading partners – all unaffected
•Africa takes the biggest hit – 8 of 13

16. www.ccic.ca
ccic-ccci.blogspot.com
No of hte
THANK YOU!!
Fraser Reilly-King
Policy Analyst (Aid)
+1 613 241-7007, ext. 306
freillyking@ccic.ca