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Global Affairs Canada Foreign Aid: An Update

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The Audit

 

 David Clinton

Canadian Taxpayers are funding programs in foreign countries with little effect

Back in early November I reached out to Global Affairs Canada (GAC) for a response to questions I later posed in my What Happens When Ministries Go Rogue post. You might recall how GAC has contributed billions of dollars to the Global Fund to Fight AIDS, Tuberculosis and Malaria, only to badly miss their stated program objectives. Here, for the record, is my original email:

I’m doing research into GAC program spending and I’m having trouble tracking down information. For instance, your Project Browser tool tells me that, between 2008 and 2022, Canada committed $3.065 billion to the Global Fund to Fight AIDS, Tuberculosis and Malaria. The tool includes very specific outcomes (like a drop of at least 40 per cent in malaria mortality rates). Unfortunately, according to reliable public health data, none of the targets were even close to being achieved – especially in the years since 2015.

Similarly, Canada’s $125 million of funding to the World Food Programme between 2016 and 2021 to fight hunger in Africa roughly corresponded to a regional rise in malnutrition from 15 to 19.7 percent of the population since 2013.

I’ve been able to find no official documentation that GAC has ever conducted reviews of these programs (and others like it) or that you’ve reconsidered various funding choices in light of such failures. Is there data or information that I’m missing?

Just a few days ago, an official in the Business Intelligence Unit for Global Affairs Canada responded with a detailed email. He first directed me to some slightly dated but comprehensive assessments of the Global Fund, links to related audits and investigations, and a description of the program methodology.

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To their credit, the MOPAN 2022 Global Fund report identified five areas where important targets were missed, including the rollout of anti-corruption and fraud policies and building resilient and sustainable systems for health. That self-awareness inspires some confidence. And, in general, the assessments were comprehensive and serious.

What initially led me to suggest that GAC was running on autopilot and ignoring the real world impact of their spending was, in part, due to the minimalist structure of the GAC’s primary reporting system (their website). But it turns out that the one-dimensional objectives listed there did not fully reflect the actual program goals.

Nevertheless, none of the documents addressed my core questions:

  • Why had the programs failed to meet at least some of their mortality targets?
  • Why, after years of such shortfalls, did GAC continue to fully fund the programs?

The methodology document did focus a lot of attention on modelling counterfactuals. In other words, estimating how many people didn’t die due to their interventions. One issue with that is, by definition, counterfactuals are speculative. But the bigger problem is that, given at least some of the actual real-world results, they’re simply wrong.

As I originally wrote:

Our World in Data numbers give us a pretty good picture of how things played out in the real world. Tragically, Malaria killed 562,000 people in 2015 and 627,000 in 2020. That’s a jump of 11.6 percent as opposed to the 40 percent decline that was expected. According to the WHO, there were 1.6 million tuberculosis victims in 2015 against 1.2 million in 2023. That’s a 24.7 percent drop – impressive, but not quite the required 35 per cent.

I couldn’t quickly find the precise HIV data mentioned in the program expectations, but I did see that HIV deaths dropped by 26 percent between 2015 and 2021. So that’s a win.

I’m now inclined to acknowledge that the Global Fund is serious about regularly assessing their work. It wouldn’t be fair to characterize GAC operations as completely blind.

But at the same time, over the course of many years, the actual results haven’t come close to matching the programs objectives. Why has the federal government not shifted the significant funding involved to more effective operations?

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Cyberattack on Ukraine Exposes The Dangers of Digital ID Systems

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Digital ID systems risk becoming massive vulnerabilities in the face of modern cyber threats.

Ukraine’s reliance on its new digital identity systems has become a warning about the dangers of digital ID, as a recent cyberattack exposed critical vulnerabilities in the country’s digital infrastructure.

Last month, several key government databases were taken offline, disrupting essential services like legal filings and marriage registrations. Officials assured citizens that the controversial Diia, the government’s widely used e-governance app, would soon be restored, but the incident laid bare significant risks within the app’s centralized backend platform, Trembita.

This breach, the most serious since Trembita’s launch in 2020, raises urgent questions about the security of Ukraine’s growing dependence on digital IDs and is a clear warning to other countries that are rushing to embrace the controversial tech.

Trembita, the platform enabling Diia’s operations, functions as a digital network connecting government databases. While officials insisted it operated as designed during the breach, cybersecurity experts are sounding alarms.

Mykyta Knysh, a former Ukrainian security official, described the platform’s centralized architecture as a dangerous “single point of failure.” Warnings about these risks had surfaced before — security analysts cautioned in 2021 that consolidating sensitive personal and administrative data under Diia would leave Ukraine exposed to large-scale attacks.

The Russian hacking group XakNet has claimed responsibility for the attack.
This highlights a broader danger inherent in Ukraine’s ambitious digitalization efforts, spearheaded by the Ministry of Digital Transformation under the Zelensky administration.

While consolidating government services into the smartphone-based Diia app has streamlined access for millions of citizens, the breakneck pace of implementation has left little time to address critical security gaps.

The compromised registries contained highly sensitive data, including personal addresses, family connections, and financial assets.

Beyond military implications, the breach exposes the inherent risks of digital ID systems. Security analysts have pointed out that a central repository of personal data, as seen in Ukraine’s system, creates lucrative targets for hackers. If exploited, such data could fuel identity theft, phishing campaigns, or even more devastating cyberattacks, undermining public trust in digital governance.

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President Trump Signs Executive Order Banning CBDCs

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The executive order marks a decisive pivot in US digital asset policy.

President Donald Trump took a bold step on Thursday by signing an executive order that establishes a cryptocurrency working group, fulfilling a key campaign pledge made during his appeal to digital asset advocates and also banning controversial Central Bank Digital Currencies (CBDCs).

This newly established advisory body is set to take on a pivotal role in shaping US policy on digital assets. Its responsibilities include collaborating with Congress to draft cryptocurrency legislation and advising on the development of a proposed bitcoin reserve. Additionally, the council will work to align efforts across federal regulatory agencies, such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury Department.

One of its more unique tasks will involve assessing the feasibility of creating and managing a national repository of digital assets. According to the executive order, these assets could potentially include cryptocurrencies confiscated during federal law enforcement operations.

On the same day, Trump issued another executive order banning the development and use of CBDCs within the United States.

The order explicitly forbids any attempt to “establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.” Trump justified the decision by warning of the risks posed by CBDCs, including threats to financial stability, personal privacy, and US sovereignty.

Often referred to as centrally-controlled “digital dollars,” CBDCs would be issued by the Federal Reserve and function as digital equivalents of physical currency, potentially granting the central bank expanded authority over monetary flows. Proponents argue that such a system could promote financial inclusion and provide tools for combating illicit activities.

CBDCs have raised significant concern among privacy advocates, who warn they could give governments unprecedented control over financial transactions. Unlike cash, which allows for anonymous and untraceable exchanges, CBDCs would operate on digital platforms managed by central banks.

Every transaction could be monitored, recorded, and tied to individual identities, creating a potential for constant financial surveillance. This capability could erode personal privacy, enabling authorities to track spending habits, purchasing behaviors, and even location data in real-time. For individuals who value financial autonomy and confidentiality, the prospect of such pervasive oversight is deeply troubling.

Additionally, CBDCs could serve as tools for censorship and control.

Governments or central banks could theoretically restrict or block transactions they deem undesirable, limiting financial freedom. For example, payments to politically sensitive causes, organizations, or individuals could be flagged or prohibited. In extreme scenarios, a CBDC system might even allow authorities to freeze assets or impose punitive financial measures against dissenters.

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