CIDA's Country Development Strategy for cooperation with Ethiopia: an overview

1
CIDA'sCountry Development Strategy for
cooperation with Ethiopiaan overview

• Presentation to
• Canadian organisations
• June 2003

2
Ethiopian Contextfrom a Canadian Lens

• Economic and democratic progress since end of
  civil war, especially since 1995 constitution,
  two elections
• Government reorganized to enhance capacity
  building and decentralization
• Progress on Eritrean border demarcation

3
Ethiopian Contextfrom a Canadian Lens

• Ethiopia's Sustainable Development and Poverty
  Reduction Program completed with civil society
  input
• Strong NEAPD supporter
• Good prospects for effective use of ODA and
  equitable growth, but
• People still poorest in Africa with largest group
  of chronically food insecure.

4
Ethiopian Contextfrom a Canadian Lens

• December 2002
• Consultative Group Meeting for Ethiopia launch
  of Partnership for enhanced aid delivery" and
  Partnership for accelerated and sustainable
  development and poverty reduction
• Joint Ethiopia / UN appeal for humanitarian
  assistance for the current drought.

5
Canadian contextTrends in Canada's Official
Development Assistance

• 2002/03 OECD/DAC peer review of Canadian aid
• Increase ODA
• Strengthen aid effectiveness
• Focus on a limited number of countries
• Further untie
• Re-examine role of Canadian NGOs

6
Canadian contextTrends in Canada's Official
Development Assistance

• March 2002 In Monterrey Financing for
  Development Conference, PM Chrétien announces 8
  annual growth in Canada's ODA, leading to
  doubling of ODA over next decade
• April 2002 PM Chrétien visits Ethiopia, affirms
  to PM Meles Canada's support of NEPAD objectives,
  commitment to reserve at least half of ODA growth
  for sub-Saharan Africa

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Canadian contextTrends in Canada's Official
Development Assistance

• June 2002, G8 Kananaskis Action Plan for
  Africa, 500 million Canada Fund for Africa (for
  African regional institutions AfDB, AU, ACBF,
  AULA African offices of international
  institutions UN-ECA, CGIAR)
• October 2002, CIDA's Aid Effectiveness Strategy.
  Key elements Millennium Development Goals,
  concentration on fewer countries, country
  leadership, aid harmonization, programmatic
  approaches, aid untying

8
Canadian contextTrends in Canada's Official
Development Assistance

• December 2002 announcement of selection of
  countries of concentration Ethiopia one of
  CIDAs nine core countries worldwide
• February 2003 federal budget 24 increase to
  ODA, half for Africa
• May/June 2003 Cabinet discussion on management
  of the international assistance envelope.
  Allocations for countries and sectors of
  concentration

9
Canadas relations with Ethiopia

• Immigration, trade, investment links are modest
• Strategic interests regional security
  stability, capital of Africa
• Public interest humanitarian (positive response
  to famine appeals, but negative image for
  investment prospects)
• Development interests pilot for NEPAD and aid
  effectiveness (harmonization)

10
Development Cooperation between Ethiopia and
Canada

• Humanitarian assistance with Ethiopia since 1984
  development cooperation since 1991
• Most aid through non-bilateral channels last
  year, 36 million via Multilateral programming
  and 3 million via Canadian Partnership
  programming

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Development Cooperation between Ethiopia and
Canada

• Started country strategy 1997, interrupted by war
  with Eritrea
• Bilateral program profile
• modest budget (7.5 million per year)
• mainly justice and food security programming
• many relatively small projects using Canadian
  implementing agencies

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Development Cooperation between Ethiopia and
Canada

• Purpose of Country Development Strategy
• Overarching to formalize Ethiopia's country of
  concentration status for CIDA
• Policy to respond to Ethiopia's Partnership
  invitation, and to situate Canadian development
  cooperation in terms of Ethiopia's SDPRP

13
Development Cooperation between Ethiopia and
Canada

• Purpose of Country Development Strategy
• Scope to resolve issues like geographic focus
  and role of civil society
• Planning to allocate ODA growth by sectors of
  concentration, and to bridge Ethiopia's and
  Canada's conceptual frameworks

14
Development Cooperation between Ethiopia and
Canada

• Purpose of Country Development Strategy
• Operations to identify means to improve aid
  harmonization and accelerate adoption of
  program-based approaches
• Performance to adopt a results framework and
  identify risk factors mitigation strategies

15
Development Cooperation between Ethiopia and
Canada

• May 2003 - consultations in Ethiopia
• Next steps
• June 2003 - consultations in Canada
• Later 2003 - refinement of draft document