World Vision Canada gives a mixed review to the 2005 Budget

While some elements are positive, the international development assistance component of the budget falls short of “Meeting our Global Responsibilities,” the title of the chapter on foreign aid, which also includes a major increase in defence spending.

World Vision Canada welcomes and appreciates specific steps forward. At the same time, however, bolder and sustained action is needed to fulfill Canada’s pledge to meet the Millennium Development Goals.

This budget will not make poverty history or re-establish Canada’s reputation abroad.

On the positive side, there are several good short-term initiatives:

• About $400 million in extra funds this year, which frees up some of Canada’s International Development Agency’s regular budget.
   
• The government doubled the previously announced contribution to the Global Fund for HIV/AIDS, TB, and Malaria to $140 million. A new contribution of $160 million is for the Global Alliance for Vaccines and Immunization, along with the previously announced $42 million for polio eradication.
   
• An 8% annual increase to overseas development aid is now locked into the fiscal plan for the next five years, providing more predictability and less risk of being diverted.
   
• A new peace and security fund of $100 million annually for five years will allow Canada to respond to situations such as Sudan. It is not clear how much of this will be humanitarian and how much will be military, as the lines between them continue to blur.
   
• A new debt initiative funded by $172 million over five years, indicates official recognition that the current debt relief program is not working. World Vision, along with other non-governmental organizations, will continue to work for a more substantial approach to debt cancellation at the next G-8 meeting in the UK in July.
   
• Establishment of a distinct pool of funds for major crisis response, to prevent the diversion of funds from on-going programs in order to respond to big disasters.

On the troubling side are:

• Failure to acknowledge Canada’s long-standing commitment to reach the international target of .7% of Gross National Income for development assistance and failure to clearly state the gap between current allocations and our commitments.
   
• Failure to respond to a joint letter from the three opposition parties in support of Canada meeting its commitments to the world’s poorest people. The opportunity presented to Prime Minister Martin by all-party support was missed.

World Vision Canada takes note of the proposed new framework to better manage the International Assistance envelope. More information is needed to assess its effectiveness. For this reason and others, World Vision repeated its call for early release of the proposed International Policy Statement, with public consultation.