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1 CANADA . Development Assistance Committee (DAC). PEER review 2012. ORGANISATION FOR ECONOMIC CO-OPERATION AND. DEVELOPMENT. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the organisation or the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. FOREWARD 3. The Peer review Process The DAC conducts periodic reviews of the individual development co-operation efforts of DAC. members. The policies and programmes of each member are critically examined approximately once every four or five years. Five members are examined annually. The OECD s Development Co-operation Directorate provides analytical support and is responsible for developing and maintaining the conceptual framework within which the Peer Reviews are undertaken.

2 The Peer review is prepared by a team, consisting of representatives of the Secretariat working with officials from two DAC members who are designated as examiners . The country under review provides a memorandum setting out the main developments in its policies and programmes. Then the Secretariat and the examiners visit the capital to interview officials, parliamentarians, as well as civil society and NGO representatives of the donor country to obtain a first-hand insight into current issues surrounding the development co-operation efforts of the member concerned. Field visits assess how members are implementing the major DAC policies, principles and concerns, and review operations in recipient countries, particularly with regard to poverty reduction, sustainability, gender equality and other aspects of participatory development, and local aid co-ordination. The Secretariat then prepares a draft report on the member s development co-operation which is the basis for the DAC review meeting at the OECD.

3 At this meeting senior officials from the member under review respond to questions formulated by the Secretariat in association with the examiners. This review contains the Main Findings and Recommendations of the Development Assistance Committee and the report of the Secretariat. It was prepared with examiners from France and the Netherlands for the Peer review of CANADA on 15 May 2012. In order to achieve its aims the OECD has set up a number of specialised committees. One of these is the Development Assistance Committee, whose members have agreed to secure an expansion of aggregate volume of resources made available to developing countries and to improve their effectiveness. To this end, members periodically review together both the amount and the nature of their contributions to aid programmes, bilateral and multilateral, and consult each other on all other relevant aspects of their development assistance policies. The members of the Development Assistance Committee are Australia, Austria, Belgium, CANADA , Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Korea, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, the United States and the European Union.

4 DAC PEER review CANADA OECD 2012. 4 FOREWORD. CANADA Aid at a glance CANADA - implementation of 2007 peer review recommendations Implemented: 8. recommendations (28%). Partially implemented: 9. recommendations Not implemented: 1 recommendation DAC PEER review CANADA OECD 2012. TABLE OF CONTENTS 5. Table of contents List of Acronyms .. 7. DAC'S Main Findings and Recommendations .. 9. Chapter 1. Strategic Orientations .. 21. A strong reputation in development 22. CANADA is reforming its aid, but it still needs a clear and consistent vision .. 22. A key opportunity to align all CANADA s aid delivery channels around a common approach .. 28. CANADA needs a strategic approach for mainstreaming cross-cutting issues .. 30. Accountability arrangements should be geared towards results and transparency .. 31. Future considerations .. 32. Chapter 2. Development Beyond Aid .. 35. The need for greater commitment to policy coherence for development .. 36. Progress in using whole-of-government approaches.

5 39. Future considerations .. 42. Chapter 3. Aid Volumes, Channels and Allocations .. 45. The need to sustain increases in CANADA s ODA volumes .. 46. A consolidated system for managing development co-operation .. 47. Getting the balance right between bilateral and multilateral channels .. 49. Focusing bilateral ODA better .. 49. Maintaining large and strategic contributions to the multilateral system .. 55. Non-ODA flows .. 56. Future considerations .. 57. Chapter 4. Organisation and Management .. 59. Shared responsibility for CANADA s 60. Some structural changes since 2007 .. 60. Modernising CANADA s development co-operation system .. 62. CANADA s evaluation capacity: upgraded and more effective .. 65. Making the most of CANADA s development co-operation staff .. 66. Future considerations .. 68. Chapter 5. Aid Effectiveness and Results .. 69. A commitment to the principles of effective aid, but a mixed performance in practice .. 70. CANADA has made progress in some important aid effectiveness areas.

6 72. Further progress is needed to meet CANADA s aid effectiveness commitments .. 74. Future considerations .. 76. Chapter 6. Humanitarian 77. A consistent, yet cautious, humanitarian donor, without a clear strategy .. 78. Humanitarian funding .. 80. 6 TABLE OF CONTENTS. Give CIDA s solid operational structure greater authority .. 83. Monitoring focuses on partner performance, but not yet on CANADA s results or on learning .. 83. Future considerations .. 84. Bibliography .. 87. Annex A Progress Against the 2007 Recommendations .. 91. Annex B OECD/DAC Standard Suite of Tables .. 97. Annex C Field Visit to Ethiopia .. 104. Description of Key Terms .. 113. Tables Table CANADA s 20 countries of focus, 2011 .. 25. Table CANADA s progress in building policy coherence for development, 2007-2011 .. 36. Table Planned Reductions - International Assistance Envelope .. 47. Table Full time employees of the government of CANADA responsible for ODA in .. 2012 .. 67. Table CANADA 's performance against aid effectiveness targets, 2010.

7 71. Table Total financial flows .. 97. Table ODA by main categories .. 98. Table Bilateral ODA allocable by region and income group .. 99. Table Main recipients of bilateral ODA .. 100. Table Bilateral ODA by major purposes .. 101. Table Comparative aid performance .. 102. Figures Figure Canadian ODA by government department in 2010-11 .. 48. Figure The International Assistance Envelope, 2010-2011 .. 49. Figure CANADA 's bilateral ODA by type of aid, 2010-2011 .. 50. Figure CANADA s 20 countries/region of focus, 2011 .. 51. Figure Composition of CANADA 's bilateral ODA, 2010 .. 52. Figure CANADA 's core and non-core multilateral aid, 2010 (2010 USD million) .. 55. Figure CANADA 's humanitarian assistance .. 78. Figure Net ODA from DAC countries in 2009 .. 103. Figure Development co-operation in Ethiopia: 2008-2010 .. 106. Figure The Development Assistance Group in 108. Boxes Box Good practice: increasing access to Canadian markets for 48 least developed .. countries .. 12. Box Good practice: Emphasising results, transparency and accountability.

8 17. Box Good practice: untying CANADA 's food 18. Box CANADA s programme in Afghanistan: 41. Box CANADA 's International Development Research Centre (IDRC): helping .. developing countries to find solutions to their problems since 1970 .. 61. Box CANADA s good practice in whole-of-government response to major disasters .. 83. DAC PEER review CANADA OECD 2012. ACCRONYMS 7. List of Acronyms CCIC Canadian Council for International Co-operation CERF Central Emergency Response Fund CIC Citizenship and Immigration CANADA CIDA Canadian International Development Agency CSO Civil society organisation DAC Development Assistance Committee DFAIT Department of Foreign Affairs and International Trade GDP Gross domestic product GHD The Principles and Good Practice of Humanitarian Donorship GNI Gross national income GPSF Global Peace and Security Fund IAE International Assistance Envelope IATI International Aid Transparency Initiative IDRC International Development Research Centre IFIs International financial institutions IMF International Monetary Fund INCAF International Network on Conflict and Fragility LDCs Least developed countries LICs Low income countries MDG Millennium Development Goal MNCH Maternal.

9 Newborn and child health MOPAN Multilateral Organisation Performance Assessment Network NGO Non-governmental organisation OAG Office of the Auditor General ODA Official development assistance OECD Organisation for Economic Co-operation and Development PAA Programme Activity Architecture PAGER Policy Action Group for Emergency Response PBA Programme Based Approach PSGs Peacebuilding and statebuilding goals PSU Programme Support Unit PWCB Partnerships with Canadians Branch (of CIDA). RBM Results-based Management 8 ACCRONYMS. SEA Strategic Environmental Assessment START Stabilization and Reconstruction Taskforce TB Treasury Board of CANADA TC Technical co-operation UN United Nations UNHCR UN Refugee Agency WHO World Health Organization Signs used: CAD Canadian dollar USD United States dollars () Secretariat estimate in whole or part - Nil Negligible .. Not available Not available separately but included in total Not applicable Notes on data used: The data used in this report are based on the OECD s Creditor Reporting System (CRS), unless indicated otherwise.

10 Slight discrepancies in totals are due to rounding. For comparisons over time, the peer review used 2009 constant US dollars. For data concerning only one year, the peer review used current US dollars for the corresponding year. _____. Annual average exchange rate (CAD per USD). 2007 2008 2009 2010 2011. DAC PEER review CANADA OECD 2012. THE DAC'S MAIN FINDINGS AND RECOMMENDATIONS 9. DAC'S Main Findings and Recommendations Overview Over the last six decades CANADA has gained a strong reputation for its contributions to international development, multilateral organisations and the promotion of human rights. The strengths of CANADA s development co-operation include its well- respected field presence in its partner countries; its dedicated support for research for development via the International Development Research Centre (IDRC); its significant and strategic support for the multilateral system; its effective whole-of-government approach for disaster response and fragile states, particularly Afghanistan and Haiti; and its good track record as a constructive partner within the development co-operation and humanitarian communities.