What Is Canada’s Annual $16 Billion in Foreign Aid Being Spent On?

 Prime Minister Justin Trudeau talks with cabinet minister Ahmed Hussen at the “Door of the Journey of No Return” at the Goree Slave House in Senegal, where Canada announced new aid measures, on Feb. 12, 2020. (Seyllou/AFP via Getty Images)

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Canada has consistently ranked as one of the most generous countries in the world when it comes to foreign aid, claiming seventh place in Official Development Assistance among OECD countries in 2023.

The country’s foreign aid for the 2022-2023 fiscal year topped $16 billion, or about a half percentage of the country’s total GDP, recently released aid data shows. The year’s aid had a sharp rise compared to the previous two years of approximately $8 billion annually, driven primarily by help for Ukraine refugees and asylum seekers.

The Liberal government says its foreign aid is directed by its Feminist International Assistance Policy, stressing that it has a focus on “gender equality.”

In highlighting its foreign aid programs in the 2024 Budget, the federal government above all promotes its support for “health and rights of women, including pre- and post-abortion care,” followed by climate change policy contributions, and the welcoming of refugees.

An analysis by The Epoch Times shows inflation-adjusted foreign aid expenditures have increased by 25 percent since the Liberals came to power for the period of time between 2015 to 2023, compared to an equivalent number of years during the previous Conservative government.

This marks an increase of $13.8 billion when comparing the $55.9 billion spent between 2008 and 2015 to the $69.7 billion spent between 2015 and 2023, all in 2023 dollars.

Canada’s top-three aid expenditures each year have been in the areas of refugee and asylum seeker settlements, global health, and humanitarian assistance.

The 2022-2023 figures don’t include the more recent ramped up help for Gaza since the start of the war there in October 2023. The government has pledged a total of $100 million in aid for that region since the start of the conflict.

The aid figures also exclude military-type interventions. For context, Canada has contributed $13.3 billion to Ukraine alone for military and other aids since the start of the war there in 2022.

Changes Under Current Government

According to an Epoch Times’ analysis, the aid sectors that have seen the largest percentage change in inflation-adjusted funding since the Liberals took power have been in energy generation (led by renewables) with an 87 percent increase, refugee settlement with 85 percent (jump driven by Ukraine war, though even before that the amount had increased), and social infrastructure at 45 percent.

Other sectors that saw a rise under the Liberal government are conflict prevention (40 percent), humanitarian assistance (37 percent), health (35 percent), industry (34 percent), population policies/programs and reproductive health (33 percent), general environmental protection (21 percent), business and other services (14 percent), and government and civil society (less than 1 percent).

Areas that have had a negative percentage change in spending in the Trudeau years include multi-sector aid which involves areas such as research institutions and urban and rural developments (-30 percent),  transport and storage (-29 percent), trade policy and regulations (-28 percent), communications (-18 percent), education (-17 percent), water and sanitation (-12 percent), banking and financial services (-4 percent), and agriculture, forestry, and fishing (-1 percent).

In Dollars

In 2022-2023, Canada sent $1.78 billion for health expenditures and $1.29 billion in humanitarian assistance internationally.

About $786 million was spent in energy generation, distribution, and efficiency in the same year. As Canada’s climate change policy investments increase, aid in renewable generation and other areas related to climate change policies are expected to experience a sharper rise in the coming years.

The government has announced $5.3 billion in “international climate finance” for developing countries from 2021-2026. The finance commitments will be in the areas of clean energy transition and coal phase-out, climate-smart agriculture and food systems, nature-based solutions and biodiversity, and climate governance, Ottawa says.

Aid in government and civil society in 2022-2023 was at $730 million, in education at $681 million, and agriculture, forestry, and fishing at $625 million.

For the same year, the government allocated $474 million for population policies/programs and reproductive health. This figure is also expected to rise sharply because the government has pledged an average annual funding of $700 million on “sexual and reproductive health and rights” beginning in 2023. Commitments under this area include promoting “sexual and reproductive health rights,” building “Canada’s leadership in global health and gender equality,” and advancing the U.N. 2030 Agenda for Sustainable Development.

Aid in the multi-sector category, involving areas such as urban and rural developments, was at $462 million in 2022-2023, while $336 million was spent on conflict prevention and resolution, peace, and security.

About $249 million was allocated for aid in general environmental protection in 2022-2023, while $177 million was spent on banking and financial services, and $158 million on water and sanitation.

In the same year, Canada spent $136 million for transport and storage aid, $87 million for industry, $61 million for business and other services, $43 million for communications, and $36 million for trade policy and regulations.

Expenditure on refugee and asylum seeker settlement, including health care and financial assistance, was at $2.15 billion. These expenditures, along with other unallocated expenses, were marked down for a total of $7.69 billion in the “other aid expenditures” category by the government.

The Recipients

Besides those seeking refuge in Canada, the top-five recipients of Canadian international aid in 2022-2023 were, in order, Ukraine ($5.44 billion, excluding military aid), Nigeria ($277 million), Ethiopia ($251 million), Bangladesh ($234 million), and Tanzania ($229 million).

The government says it will document the details of aid given to Gaza since the war began in October 2023 in a future report.

Before the start of the war in Ukraine, in the year 2020-2021, the top-five recipients were Ethiopia, Afghanistan, Bangladesh, Tanzania, and Mali.

Not counting Ukraine, Canada’s top destination regions of aid in 2022-2023 were Africa ($4.1 billion), Asia ($1.72 billion), and Americas ($1.07 billion). Expenditure in the Middle East was at $819 million that year, in Oceania at $97 million, and another $2.47 billion was spent in other parts of the world.

Distribution Networks

To distribute the aid, besides its own organizations, the government relied on domestic and international civil society groups, international organizations such as U.N. agencies, and the private sector.

Top international organizations that Canada contributed to include the U.N. agencies World Food Programme ($545 million), UNICEF ($367 million), and the Global Fund to Fight AIDS, Tuberculosis & Malaria ($334 million).

Top domestic organizations that distributed Canadian government funds internationally include Nutrition International ($54 million), Grand Challenges Canada ($51 million), and Save the Children Canada ($47 million).

In total, Canada provided $2.27 billion to U.N. agencies, $703 million collectively to the International Monetary Fund, the World Bank, and the World Trade Organization, $602 million to regional development banks, and another $1.03 billion to other multilateral organizations.

The government also provided $581 million to “international and global partners,” including organizations such as the Switzerland-based BlueOrchard LAC GDI Fund and responsAbility CSAFS Fund, and another $279 million to “top partner governments,” including the governments of Japan, the U.K., and Tanzania.

Canadian organizations received $1.16 billion to help in providing international assistance.

Alignment With UN 2030 Agenda

The 2022-2023 annual aid expenditure report for the first time also provides details on how Canada’s international aid lines up with the U.N. 2030 Agenda for Sustainable Development.

According to the United Nations, the 2015 agreement is a “universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.”

It consists of 17 “sustainable development goals,” (SDGs) and signatory countries have agreed to help “prioritize progress for those who’re furthest behind.”

The Canadian government says the SDGs serve as a “global blueprint to get us to that better world to achieve gender equality, reach net zero emissions, halt and reverse nature loss, build resilient and inclusive societies and economies, and make sure everyone has access to quality education and health care.”

For the year 2022, Canada’s “total official support for sustainable development (TOSSD)” was $14 billion, the government’s report says.

The 17 SDGs include:

1. No poverty
2. Zero hunger
3. Good health and well-being
4. Quality education
5. Gender equality
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry, innovation, and infrastructure
10. Reduced inequalities
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace, justice, and strong institutions
17. Partnerships for the goals

Breakdown

Under the health category of aid totalling $1.78 billion in 2022-2023, some of the major items included COVID-19 control, infectious disease control, health policy and administrative management, basic health care and nutrition, and medical services.

Major items under humanitarian assistance totalling $1.29 billion included emergency food aid, material relief assistance and services, and relief coordination/protection and support services.

In the energy generation, distribution, and efficiency category, with a total of $786 million, the major items were renewable energy generation, power transmission and distribution, and energy policy and administrative management.

The biggest dollar items under the government and civil society, totalling $730 million, included public sector policy and administrative management, women’s rights organizations and movements, ending violence against women and girls, democratic participation and civil society, and human rights.

Under education, with a total of $680 million, the major items were education policy and administrative management, primary education, vocational training, and secondary education.

In the next sector, agriculture, forestry, and fishing, adding up to $625 million, the major items were agricultural financial services, agricultural policy and administrative management, and agricultural development.

In the population policies/programs and reproductive health, with a total of $473 million, STD control including HIV/AIDS had the highest allocation, followed by reproductive health care, sexual and reproductive rights, and family planning.

The multi-sector aid, coming in at $462 million, had among its highest components research/scientific institutions, disaster risk reduction, and relief of multilateral debt.

The conflict prevention, resolution, peace, and security category, with a total of $336 million, had the highest allocation on civilian peace-building, conflict prevention, and resolution, followed by disarmament of weapons of mass destruction and participation in international peacekeeping operations.

In the “other social infrastructure and services” category, with a total of $252 million, the biggest money was spent on social and welfare services, with the distant second and third areas of expenditures being basic social services and employment policy/administrative management.

(Really ? These are business skills desperately needed ? OMG !)

In the general environmental protection category, with a total of $249 million, the biggest spending was on environmental policy and administrative management, followed by biodiversity and environmental education/training.

In the banking and financial services aid category, coming in at $177 million, the biggest spending was on financial policy and administrative management, and formal sector financial intermediaries.

In the water and sanitation category, with a total of $158 million, the major items were water supply and sanitation for large systems, as well as water sector policy and administrative management.

For the transport and storage category, with a total of $136 million, the highest spending category was road transport, followed by a distant second for transport policy and administrative management.

In the industry category, with a total of $87 million, the highest amount of money was spent on small and medium-sized enterprises development, followed by agro-industries and industrial policy, and administrative management.

In the business and other services category, with a total of $61 million, the biggest subcategory was business support services and institutions, followed by business development services.

In the communications category, with a total of $43 million, the highest expenditure was in information and communication technology, followed by telecommunications and communications policy/administrative management.

In the trade policy and regulations category, which totalled $36 million, the biggest spending was on trade policy and administrative management, followed by tourism policy and administrative management.

The biggest spending category overall, titled “other aid expenditures,” with an allocated funding of $7.69 billion, had a large segment not classified to any sectors, along with expenditures for refugees and asylum seekers.