The Conservatives will freeze foreign-aid spending next year after honouring the
final installment of a decade-old Liberal government promise to double overseas
development spending.
Thursday's federal budget boosts the
International Assistance Envelope by eight per cent, or $364 million, to $5
billion or double the 2001 level.
But no new funds have been promised
beyond that, in a budget that projects savings of $4.4 billion by 2015 if
overseas spending remains frozen until then.
No additional money was earmarked for
some high-profile international commitments, such as the maternal and child
health initiative that Canada has made a priority of its G8 presidency, as well
as its long-term commitment to rebuild earthquake-ravaged Haiti.
Government officials said those
projects would likely have to be financed out of the existing aid budget.
"This year we will increase foreign
aid to another record level. Next year we will freeze spending at that level,"
Finance Minister Jim Flaherty said.
After coming to power four years ago,
the Conservatives honoured a Liberal commitment in 2001 to double the
international assistance budget through a decade's worth of eight-per-cent
annual increases.
The budget was bound to disappoint
non-governmental organizations because they were looking to the government to
present a new roadmap for Canada's overseas spending plans to at least 2015.
Instead, the budget projects savings
of $438 million in 2011-12, rising to $1.8 billion in 2014-15 with the removal
of the annual eight-per-cent international aid increase. The budget said another
$2.2 billion would be saved in the other two fiscal years in between.
The Canadian Council for
International Co-operation, the umbrella group of non-government organizations,
called on the government to commit to 14-per-cent annual increases for the next
decade.
But the budget document said that any
future foreign aid increases "will be assessed alongside all other government
priorities on a year-by-year basis in the budget."
With the Harper government coming off
the Winter Olympics and preparing to host the G8 and G20 summits this summer,
Canada had touted 2010 as its "international year."
Canada is a "global leader and
continuously demonstrates this by honouring its international commitments," says
the budget.
The document restated many of those
commitments, made last year through the G20's economic recovery efforts,
including $22 billion to the various international financial institutions such
as the International Monetary Fund, the Inter-American Development Bank and
Asian Development Bank. The budget also announced $40 million to support IMF
lending to poor countries.
The budget reiterated the government
would match private donations toward Haiti's reconstruction to the tune of $130
million. Officials said that money would also come out of the existing aid
envelope.
Canada is expected to attend the
major international pledging conference on Haiti later this month. Estimates peg
the rebuilding of Haiti at more than $10 billion over the next decade.
Going into the Thursday's budget,
major aid agencies warned that if there wasn't some extra money earmarked for
Haiti's reconstruction, or for the G8 plan to reduce the annual death rate of
nine million children before age five and 500,000 women in childbirth, it would
have to be siphoned from existing programs.
Major aid groups, including UNICEF,
said the Harper government's child and maternal health plan would cost $400
million a year over five years.
The budget acknowledged that
international efforts to lower the death rate "are far off track" but that
"simple and affordable" solutions such as training health workers, vaccines,
better nutrition and clean water could help.
"Canada will use its leadership at
the G8 Summit in Muskoka to focus the world's attention on maternal and child
health and will work to secure increased global spending on this priority," it
said.