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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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Scott Bessent Says Trump’s Goal Was Always To Get Trading Partners To Table After Major Pause Announcement

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From the Daily Caller News Foundation

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Secretary of the Treasury Scott Bessent told reporters Wednesday that President Donald Trump’s goal was to have major trading partners agree to negotiate after Trump announced a 90-day pause on reciprocal tariffs for many countries after dozens reached out to the administration.

Trump announced the pause via a Wednesday post on Truth Social that also announced substantial increases in tariffs on Chinese exports to the United States, saying 75 countries had asked to talk. Bessent said during a press event held alongside White House press secretary Karoline Leavitt that Trump had obtained “maximum leverage” to get trading partners to negotiate with the April 2 announcement of reciprocal tariffs.

“This was his strategy all along,” Bessent told reporters during an impromptu press conference at the White House. “And that, you know, you might even say that he goaded China into a bad position. They, they responded. They have shown themselves to the world to be the bad actors. And, and we are willing to cooperate with our allies and with our trading partners who did not retaliate. It wasn’t a hard message: Don’t retaliate, things will turn out well.”

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WATCH:

China imposed retaliatory tariffs on American exports to the communist country Wednesday, imposing an 84% tariff on U.S. goods after Trump responded to a 34% tariff by taking American tariffs to 104%.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump said. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

“They kept escalating and escalating, and now they have 125% tariffs that will be effective immediately,” Bessent said during the press conference.

Bessent said that China’s actions would not harm the United States as much as it would their own economy.

“We will see what China does,” Bessent said. “But what I am certain of, what I’m certain of, is that what China is doing will affect their economy much more than it will ours, because they have an export-driven, flood the world with cheap export model, and the rest of the world now understands.”

The Dow Jones Industrial average closed up 2,962.86 points Wednesday, with the NASDAQ climbing by 1,755.84 points and the S&P 500 rising 446.05 points, according to FoxBusiness.

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Stocks soar after Trump suspends tariffs

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From The Center Square

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One gets the feeling this isn’t over yet…

President Donald Trump continued ahead Wednesday with his on-again, off-again tariffs, with his latest tariff suspension sending U.S. markets soaring.

Trump announced Wednesday afternoon on his Truth Social app that he would pause the majority of the reciprocal tariffs he announced last week on “Liberation Day,” the April 2 start of the implementation of the tariffs only to reverse course and put everything on pause.

Stocks jumped on the news with the Dow Jones gaining nearly 6% Wednesday after sharp losses during the previous week.

Treasury Secretary Scott Bessent said it was all part of the plan.

“We saw the successful negotiating strategy that President Trump implemented a week ago today. It has brought more than 75 countries forward to negotiate,” Bessent said Wednesday. “It took great courage for him to stay the course until this moment.”

Trump’s pause includes all the tariffs that went into effect at midnight, except the additional levies on China. Trump has targeted the world’s second-largest economy in a tariff war that China has said it will “fight to the end.”

While many other nations called Trump’s trade team seeking deals to avoid reciprocal tariffs, China showed no signs of backing down.

“The U.S. threat to escalate tariffs is doubly erroneous, once again exposing its extortionist nature. China firmly rejects such actions,” China’s commerce ministry said Tuesday. “Should the U.S. persist in this reckless course, China will respond resolutely until the end.”

Trump’s decision to suspend tariffs came after tough questions from Republicans, including U.S. Sen. John Kennedy, R-La.

“I just don’t know what his goal is right now,” Kennedy said earlier in the day after comparing Trump to a dog chasing a car and catching it.

“President Trump has been a Rottweiler here, but now he’s the Rottweiler who has caught the car,” Kennedy said. “That’s the moment we are in now. My question is: What is he going to do with the car?”

Trump has made big, bold promises about his tariffs. He has said tariffs will make the U.S. “rich as hell,” bring back manufacturing jobs lost to lower-wage countries in decades past and shift the tax burden away from U.S. families. He’s also promised to help working Americans with his tariffs.

On Tuesday, Trump wrote “I’m proud to be the President for the workers, not the outsourcers; the President who stands up for Main Street, not Wall Street; who protects the middle class, not the political class; and who defends America, not trade cheaters all over the globe.”

Public Citizen, a progressive consumer rights advocacy group, said Trump’s latest suspension of tariffs showed he doesn’t support the workers who elected him.

“Who’s left out of his megalomaniacal game? The workers he claimed to support,” said Melinda St. Louis, global trade watch director at Public Citizen. “All he has shown is that he’ll cave to Wall Street’s handwringing and prioritize his own power over real people’s plight.”

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