Three ways to pay for aid commitments
EMBASSY – Canada’s Foreign Policy Newspaper

Wednesday, February 3, 2010

Stephen Harper’s announcement that child and maternal health will be the signature theme of June’s G8 meeting is certainly timely.

Every day 1,400 women die of pregnancy-related causes.  Every day 24,000 children under the age of five die of what are largely preventable causes. Progress on improving child and maternal health is the furthest off-track of the eight Millennium Development Goals (MDGs) UN member states committed to in 2000. This focus gives MDGs four and five, on child and maternal health, the push they need ahead of September’s United Nations High Level Meeting and ten year review of the MDGs.

But funding the initiative comes during difficult days – a global crisis and a budget deficit. Resources are tight.

Rethinking the international financial system during a time of crisis

Introduction
On October 19 and 20, 2009, the Halifax Initiative held a conference, co-hosted by The North South Institute, the University of Ottawa and the School of International Development and Global Studies (SIDGS), entitled "What’s Missing in the Response to the Global Financial Crisis?" The meeting brought together experts from a range of backgrounds to analyze the challenges facing the global economy, discuss the ways in which the international community has responded to the current financial crisis, and identify shortcomings in these responses.

CSOs push for Common Approaches revamp
Members of the Organisation for Economic Co-operation and Development (OECD) are currently reviewing a 2007 Council Recommendation regarding export credit agency (ECA) operations. The Recommendation on Common Approaches on the Environment and Officially Supported Export Credits (Common Approaches) is a “gentlemen’s agreement” that seeks to establish a level playing field regarding ECA environmental practice. CSOs argue that the Recommendation’s impact is undermined by the lack of effective accountability mechanisms to ensure consistent and effective application by member governments.

November 11, 2009

Dominique Strauss-Kahn
Managing Director
International Monetary Fund,
700 19th Street, N.W.,
Washington, D.C. 20431

Dear Mr. Strauss-Kahn:

Re: Request for civil society participation in IMF study on how the financial sector can help pay for the bailouts 

In September, the Group of 20 (G20), at their summit in Pittsburgh, mandated the International Monetary Fund (IMF) with preparing a report ahead of the next G20 summit in June 2010 to consider “how the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system.”

Executive Summary
2010 will be a decisive year for Canada, and for the world.  The deadline for meeting the world’s Millennium Development Goals (MDGs) is only five years away.   Our decisions on economic reform and climate change will determine the success of world’s efforts to reduce poverty and reverse dangerous global warming for the next generation and beyond.  As host of the next G8 and G20 Summits, Canada can make the difference between relegating these aspirations to a distant hope in an uncertain future and confirming the possibility of achieving these goals in our lifetime.  The consequences of reneging on our promises are unthinkable for the millions around the world looking towards a new model of globalization that is socially responsible, economically sustainable and environmentally just.

A Focus on Poverty, Economic Reform and Climate Change
In 2010 Canada will play host to the world.  The Vancouver Olympics and the G8 and G20 Summits in Muskoka and Toronto will draw the attention of millions to Canada, its geography, its values, policies and practices. If 2008 was the year of China, then 2010 can be the year of Canada.  Around the globe, Canadians proudly sport the Canadian flag in traveling as a symbol of Canadian democracy, openness and concern for human rights.  Yet our great international achievements of the past—Canadian contributions to the establishment of international peacekeeping, the Universal Declaration of Human Rights, the Ottawa Treaty to Ban Landmines and the International Criminal Court—are today clouded by concerns about Canada’s current role in climate change negotiations, Afghanistan, reform of the global economy and addressing global poverty.

Financial crisis a boon for ECAs
While hefty public bailouts of the financial and auto industries have stimulated debate on the role of governments in commercial markets, one form of government subsidy has flown beneath the proverbial radar: export credit. Confronted by an increasingly dire financial crisis, Western governments are using their export credit agencies (ECAs) to boost liquidity and rescue faltering industries. At an extraordinary World Trade Organization meeting last month, participating governments reported a 30% increase in ECA business over the previous 12 months. The WTO called for even greater reliance on public credit to lessen the burden on commercial banks. Shortly afterwards, the OECD announced an agreement with non-members, including Russia and Brazil, to provide markets with publicly-sourced export credit.

What is the Bank of the South?
On December 9th, 2007, representatives from Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay, and Venezuela met in Buenos Aires, Argentina, to launch “el Banco del Sur” or the Bank of the South (BoS). With the creation of the Bank, the leaders of Latin America envisaged a new development institution to help promote growth and tackle poverty. The BoS was originally proposed in 2006 by Venezuelan president Hugo Chavez. Chavez, along with other South American leaders, wanted a Bank that would allow them to assert their political and financial independence from traditional international financial institutions (IFIs), like the International Monetary Fund (IMF) and the World Bank, and put an end to decades of structural adjustment policies imposed by the IFIs on countries in Latin America.

For pdf, click here.

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The Hon. David Emerson
Minister of Foreign Affairs
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa, ON  K1A OG2  

October 10, 2008

Re.: Canadian priorities leading up to the Doha Financing for Development Review.  

Dear Minister Emerson:   

The Halifax Initiative would like to thank John Foster, North-South Institute, for his help in developing these FAQs 

Revised November 2007

How is development normally financed? Why is an initiative on innovative financing necessary? What are the origins of the innovative financing mechanism process? What is the Leading Group, and how is it organized? Who are the members of the leading group? Why isn't Canada a member? Is civil society involved? Who has chaired the leading group? Where will the next meeting be? Who is taking over the Presidency of the group?

What are some of the initiatives to come out of this process, and the individual presidencies? So what have some of the “implemented” measures achieved? What do these initiatives seek to achieve? What else has been discussed? How does this process relate to the Monterrey Financing for Development process? How does it feed into Monterrey/Doha? What can I do?