December 10, 2001

As one of the world’s best countries to live in, Canada has a special responsibility towards the less fortunate peoples of the world. A more stable, prosperous world is also a source of greater security for all Canadians.

In his Reply to the Speech from the Throne, the Prime Minister stated that Canada would increase its international development assistance, so that more countries could participate in the benefits of globalization, while promoting peace and human security in the world.

Budget 2001 follows through on that commitment by providing $1 billion over three years for a new Africa Fund, for humanitarian and reconstruction assistance in Afghanistan, and for other international assistance.

Africa Fund

Last summer at its Summit in Genoa, the G8 created, under Canada’s leadership, a new working group on Africa. The group will work with African countries to help them overcome their struggle with poverty, lack of education and poor health.

Since then, the Prime Minister has restated his commitment that development in Africa will be one of the main themes of the next G8 Summit, which will be held in June 2002 in Kananaskis, Alberta.

In recognition to this commitment, Canada will establish a trust fund to enable it to work in partnership with African countries, as well as with other donor countries and the international development institutions, to promote sustainable development in Africa.

Budget 2001 is committing $500 million to this trust fund, with an initial allocation from this year’s surplus fund at year-end.

Assistance for Afghanistan

Canada is an active partner in the international coalition to destroy the shadow networks of supply, finance and penetration that allowed the terrorists to carry out the mass murder of September 11.

As we continue with that mission, we must remember that an important part of our campaign is to help ensure the security and stability that will pave the way for a new future for Afghanistan and its neighbours.

Budget 2001 increases by $100 million the International Assistance Envelope in the current fiscal year to assist with the humanitarian emergency in Afghanistan and in surrounding countries where there are a significant number of Afghan refugees.

Other International Assistance

Budget 2001 prepays Canada’s financial obligations to United Nations aid agencies and to the Poverty Reduction and Growth Facility at the International Monetary Fund.

This measure will free up $115 million from the International Assistance Envelope in 2002-03 – money that we will be able to use to promote development in impoverished countries.

In addition, Budget 2001 announces that our government will increase the International Assistance Envelope by $285 million in fiscal year 2003-04.