Lost in the Global Economy

For the last two years, we Canadians have been told numerous times by the Harper government(s) that we have fared comparatively well due to their successful shepherding through the global economic downturn. Admittedly, this has largely been true. While the economy has suffered, we are in a better position, domestically, than many others. That said, how we as a country interact with the rest of the global economy looks to be a little more precarious given recent events.

As Prime Minister Harper noted last month in an interview with Macleans, his view on foreign policy is that "our long-run interests are tied somewhat to our trade, but they're more fundamentally tied to the kind of values we have in the world: freedom, democracy, human rights and the rule of law." This sounds nice and the Harper government has not failed to remind everyone about our principles, but what happens when our like-minded friends are no longer wise to become too invested with economically? After all, Canada needs trading partners to keep the economy running smoothly. So, whom should Canada strive to build strong economic ties with? The easy answer is everyone and that we should never turn away a potential partner. The reality is, however, that with out limited resources it is in our best interests to cultivate strong, strategic relationships rather than try to spread them out too thin.

In the past, discussion on whom Canada should trade with has focused on two major partners, the United States and Europe. But right now, both are in serious economic trouble as they struggle with issues of debt, unemployment and internal political deadlocks. Add to that the standoff between Canada and the EU over the hunting of seals and the sale of seal products and it looks like the traditional partners may not be the best trading partners in the near future.

What about China? Right from the start, Tory governments were heavily critical of China and its human rights record. Whether or not this was the right thing to do is not for me to say, but it did have a cooling effect on any relationship between Canada and the world's fastest growing economy. Now we see the government scrambling to rebuild ties with China in hopes of not becoming collateral damage of the economic repercussions of the US debt woes (Check out the Canadian International Council's new site OpenCanada.org and their recent Rapid Response roundtable about why the government is softening its stance on China). It is more than likely that it will take a few years of sustained effort to repair the previous damage done to the relationship.

Mr. Harper has just wrapped up a trade tour in Latin American in hopes of building up positive trade relations with the region, especially with Brazil. Attempts have been made to trumpet the benefits of the free trade deals recently signed with Honduras and Colombia but the reality is that these markets won't have a huge positive effect on the Canadian economy. The real prize would be to develop a strong economic relationship with rising star in the international arena, Brazil. But once again, our ties with this new power are not exactly the best they could be, thanks in part to neglect and fierce competition in the airline industry.

The Harper government will have to figure out where its priorities lie and work to (re)build the kinds of relationships that will help strengthen our economy and move past our recent economic problems. The question remains, what will the government do if economic gain comes at the expense of dealing with countries who don't share our values? If recent events give any indication, I predict the economy will come out on top (no surprise there!), but only time will tell.


Cross-posted at DMF Insider

Poll Shows People Favour Aid For Development Not Trade

Last week I wrote about Canada's decision to realign its foreign aid priorities towards countries who have major trade interests with Canada. Personally, I believe that foreign aid should serve a greater purpose than strengthening Canada's trade relations with other nations. There is so much poverty, disease and conflict in the world that Canada's foreign aid could have a significant impact in alleviating.

Well apparently I am not the only personal to have this belief. A recent poll shows that the Canadian people also believe that Canada's foreign aid should serve a higher calling than to bolster trade relations.

Maybe if Canada's foreign aid levels were up near the international community's goal of 0.7% of GNI then maybe it would be okay to route some major aid to its trading partners but with current levels hovering around 0.3%, Canada is not forking up enough money to do this. Until the 0.7% standard is reached, aid should only be directed to addressing the major issues that currently plague the international community and Africa is definitely the place where the greatest impact and need can be found.

- blenCOWe

Canadian MPs Unhappy with African Diplomats

The Globe and Mail reports today about how a number of African diplomats have mounted a public effort to get the Canadian government to change their "abandonment" of the African continent in terms of bilateral aid. The group of diplomats from 17 African countries were calling for Canada to "regain its leading role as a friend to the continent." Their proposals included re-establishing bilateral ties, increasing trade ties (like many other powers, like China, are doing) and to conduct regular Canada-Africa meetings.

In the article, it is noted that Conservative MPs Jim Abbott and (Parliamentary Secretary for Foreign Affairs) Deepak Obhrai were deeply unhappy with the message that the diplomats were sending. Claiming that the diplomats had incorrect facts and opposed to the fact that the diplomats were criticizing the Conservative government, the Tories argued the message claiming that in fact Canada had meet its goal to double foreign aid levels for 2001 to $2.1 billion.

While it is good that Canada is increasing its level of aid, there exists a large problem with the way in which they are going about doing it. CIDA minister Bev Oda has argued that in this time of economic crisis, it is imperative for Canada to be more efficient in the way that it applies its foreign aid. Canada will now only provide bilateral aid to 7 countries in Africa down from the 15 countries that received it in the past (to put it in perspective there are 53 countries in Africa). These 7 countries will share $1.2 billion dollars with the rest being relegated to fighting amongst each other, and the rest of the world, for the remaining 20% of bilateral aid and the multilateral aid that Canada helps fund. Exactly how is this not abandonment? How is it okay that Canada is increasing its aid yet decreasing the number of people that get it? Does that make sense?

Strategically this move is even more perplexing. World powers like China and the United States are investing more and more into the troubled continent realizing both the need and the gains from it. Africa remains one of the poorest, if not the poorest, regions in the world and has the most need of help from developed countries like Canada. I fail to see the logic (beyond trade interests) that places the Caribbean and South America's urgency of need ahead of Africa's. Could this be another example of the Harper government's reluctance to compete in the international community, like initial reports that Canada would not actively campaign for a Security Council seat for fear of losing. Could it be that Prime Minister Harper and his Tory government are afraid of playing in the same arena as the "big boys" (China and US)?

Canada should be in a better position to work with African nations than either the US or China because of its previous history as a colony and not an imperial power. Added to that is Canada's record of assistance to Africa, both in terms of aid and efforts to act as a peacekeeper (Rwanda for example), as well as Canada's prominent position in the Francophonie organization.

And what about the Security Council elections? Those nine African countries are not likely to vote for Canada after it cut its aid programs to them. Its almost as if Mr. Harper wants Canada to lose to Portugal. PORTUGAL!!!! This is not a soccer game, this should have been an easy victory for Canada (I have not given up hope for Canada yet, I am just realizing that our actions are making this campaign harder than it should have been).

Trade relations are only part of the equation when building up diplomatic power. Public opinion, built through areas like foreign aid, peacekeeping, working withing the UN, is critical to having the type of diplomatic presence where Canada can truly ensure its security, including economic security, in the international community. The African diplomats are right to try to shake some sense in Canadian politicians because it is clear that nobody at home is getting through.

And I did not even mention the fact that despite the increase in foreign aid, Canadian foreign aid still only hovers around 0.3% of its GNI... oops!

- blenCOWe