Liberals oppose global trend of ‘doubling down’ on foreign aid, as industry urges G7 to boost

OTTAWA – Foreign aid groups are praising the federal Liberal government’s return to a policy of increasing humanitarian and development spending each year, while calling for a plan to pressure allies to reverse a global decline in aid.

“It was a good time for Canada to step up and show global leadership by committing to additional new humanitarian money,” said Kate Higgins, director of Cooperation Canada, which represents more than 100 nonprofit organizations.

The Liberals committed in their budget Tuesday to increasing humanitarian aid by $150 million in the current fiscal year and $200 million next year.

International Development Minister Ahmed Hussen would not confirm the total amount of Canada’s foreign aid, although Higgins puts that total at just over $7 billion this year and $7.2 billion next year.

“We can talk about the details another time, in terms of numerical calculations. What I can tell you, because the budget has just been presented, is that we are very happy with the fact that our government is doubling its international aid,” Hussen said in an interview Wednesday.

The Liberals faced persistent criticism a year ago from the aid sector when they allocated $6.9 billion in funding for development and humanitarian needs, a 15 per cent decline from the previous year.

The Trudeau government has committed to increasing foreign aid every year it is in office, but the Liberals said they made exceptional increases in aid spending to take into account the COVID-19 pandemic and the war in Ukraine, which They finally exceeded 8 billion dollars.

Global Affairs Canada has been asked to confirm whether the total amount of aid for this year is indeed $7 billion. Higgins said the government needs to be more transparent in the way it reports data.

The new humanitarian funding comes at a time when Higgins calls an unprecedented state of need and complexity, with major wars in the Gaza Strip, Ukraine and Sudan, along with conflicts and massive migration crises in Myanmar, Nigeria and Venezuela.

Countries known for their aid spending, such as the United Kingdom and France, have cut foreign aid, citing pressures on their domestic economies. UNICEF Canada says nearly a quarter of the world’s children live in or are fleeing conflict zones.

Hussen said Canada’s aid will continue to focus on supporting women and helping them create the conditions for peace.

“When others withdraw, or talk about withdrawing from the world, we are redoubling our commitment,” he said.

“Our government believes and knows the value of international aid and the results it delivers around the world and here at home. So Canada is shaping a more peaceful, more prosperous and more resilient world.”

The budget also reaffirms Canada’s promises to push for reform of multilateral financial institutions like the World Bank. The goal is to help poor countries escape debt traps and the financial burden of catastrophic natural disasters, moving instead toward investing in infrastructure that is more resilient to climate change.

On Tuesday, Cooperation Canada and other aid coalitions called on Ottawa to use its G7 presidency next year to pressure some of the world’s most powerful countries to once again boost foreign aid.

The G7 has countries such as the United States, Japan and Germany send ministers to meetings throughout the year in the host country, culminating in a leaders’ summit.

That means Ottawa can use its influence now to start pressuring countries to increase their aid funding in 2025 and get the G7 to pay more attention to crises beyond the Russian invasion of Ukraine, Higgins said.

“We will push the government to really look at the breadth and scope of the humanitarian crisis around the world.”

Hussen did not say whether Canada plans to pressure its G7 peers on aid, instead criticizing the Conservatives for a “reckless” pledge in February to divert an unspecified amount of “wasteful” foreign aid toward military spending. The Conservatives did not respond to a request for an interview.

NDP foreign affairs critic Heather McPherson said the increase in humanitarian aid does not make up for the cuts the Harper and Trudeau governments have made in recent years.

“We are not seizing the moment,” McPherson said, considering famine-like conditions in Haiti, Sudan and Gaza.

He noted that Canada is still not meeting the global target for rich countries, set by former Prime Minister Lester Pearson as allocating 0.7 per cent of gross national product to foreign aid. The Organization for Economic Co-operation and Development tabulates Canada’s spending last year as half of that target, 0.38 per cent.

“The world needs Canada to pay its fair share and it needs Canada to play a meaningful role,” McPherson said.

He also argued that it was “shortsighted” for liberals to increase military spending at a much higher rate than aid or diplomacy. The NDP supports increased defense aid for Ukraine, but Canadian diplomats and aid workers could help undermine the factors that are driving crises around the world, McPherson said.

“We have such a strong and capable international development sector that could achieve a lot. “We have such strong diplomats who could achieve a lot if they were given the tools.”

This report by The Canadian Press was first published April 18, 2024.