Canada promotes private-sector-led development to help the world's most vulnerable people
June 11, 2013
The world's most vulnerable people will benefit from three new Canadian investments aimed at increasing private-sector-led investment and alleviating poverty in developing countries. The Honourable Julian Fantino, Minister of International Cooperation, announced today in an address to the 19th annual Conférence de Montréalthat Canada is providing further support to help developing countries attract the investment they need to achieve sustainable economic growth.
"The new investments Canada is making today demonstrates our continued leadership to help harness the power, resources, and innovation of the private sector for the benefit of the most vulnerable," said Minister Fantino. "This leads to better job opportunities, more investment, and more resources for improving productivity and well-being around the world."
Minister Fantino highlighted Canada's leadership on encouraging more private-sector-led development by launching a new private sector Web page. This will be a one-stop shop to help the private sector learn how they can play a larger role in development and work better alongside the Government of Canada to achieve common development goals.
Canada will support the establishment of the World Bank Group's Conflict-Affected and Fragile Economies Facility. The facility will provide insurance for private-sector-led projects that help support economic growth, reduce poverty, and improve people's lives in countries where conflict and fragile economies make attracting investment difficult.
"We are very grateful to our Canadian partners for becoming the first contributors to this facility," said Dr. Jim Yong Kim, President of the World Bank Group. "With Canada's contribution to the facility, we are addressing a market need and strengthening foreign investors' ability to help rebuild fragile economies, which creates good jobs and helps people lift themselves out of poverty."
Minister Fantino indicated today that Canada stands ready to help Jamaica regain its economic stability. For example, Minister Fantino announced support to the International Monetary Fund (IMF) to provide technical assistance to the Caribbean, including Jamaica. The support will also assist the Middle East and North Africa. The support will build on Canada's international efforts to foster private-sector-led investment and economic growth by helping developing countries strengthen the capacity of their national and regional public institutions to manage public finances better and promote financial sector stability.
"Canada is a major contributor to IMF capacity building in developing countries," said Ms. Nemat Shafik, Deputy Managing Director of the IMF. "Canada supports our technical assistance and training activities in the Caribbean, Central America, the Middle East and Africa, including the IMF's network of Regional Technical Assistance Centers. This invaluable support has helped countries in these regions develop stronger institutions and promote sustainable economic growth, which is essential to improve people's living standards."
"Canada is supporting our long-time friend Jamaica by helping to create the right conditions and institutions to attract investment and create jobs, particularly for youth who are at risk of turning to crime," said Minister Fantino. "When we help other countries advance their economies, we also create new partners for Canadian companies. Development is an integral part of our government's efforts to create a prosperous and secure world."
Economic Action Plan 2013 reaffirms Canada's commitment to international development assistance, such as improving sustainable economic growth. The new Department of Foreign Affairs, International Trade and Development will maintain the mandate of poverty alleviation and help achieve greater efficiency, accountability, and focus to continue to improve the lives of people in need around the world.
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For more information, media should contact:
Daniel Bezalel Richardsen
Press Secretary to the Minister of International Cooperation
Minister Fantino announced today that Canada is providing a total of $66 million in support to help developing countries attract the private sector investment they need to achieve sustainable economic growth. Canada's contributions will help create the conditions needed in developing countries to attract private sector investment and to increase trade, leading to better job opportunities and prosperity for the world's most vulnerable people.
The private sector is an essential partner in advancing Canada's international development priorities, as reiterated in the government's response to the report of the Standing Committee on Foreign Affairs and International Development: Driving Inclusive Economic Growth: The Role of the Private Sector in International Development. Today, Minister Fantino launched a new Web page to facilitate greater partnership with the private sector for development.
Conflict-Affected and Fragile Economies Facility
Contribution: $20 million over five years
Implementing partner: World Bank Group—Multilateral Investment Guarantee Agency (MIGA)
Canada's support will help promote sustainable economic growth by providing access to insurance against political risks for private sector investment in a large number of fragile and conflict-affected countries, such as Haiti. The facility will offer private-sector investors coverage against expropriation, war, terrorism and civil disturbances, breach of contract, non-honouring of sovereign financial obligations, and currency inconvertibility and transfer restrictions. The new facility will support a range of investments in sectors such as agribusiness, finance, manufacturing, and infrastructure.
The MIGA, the political risk insurance arm of the World Bank Group, will establish and manage the facility.
Canada Technical Assistance Account– International Monetary Fund
Contribution: $19 million over three years
Implementing partner: International Monetary Fund
Canada's support promotes sustainable economic growth by establishing conditions in developing countries that attract private sector investment and trade, and alleviate poverty. Technical expertise will help developing countries in the Caribbean, the Middle East, and North Africa increase their capacity to manage their debt and fiscal policies, and help them weather financial and economic crises.
Contribution: $27 million
Canada is committing $27 million in new funding to help create the conditions that will encourage private-sector-led development in Jamaica. This includes support to assist youth who are at risk of turning to crime.
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