Arms, oil and market-based development: DFATD's new strategy in Egypt

When Canada’s foreign minister John Baird visited Egypt on Jan. 14 and 15, Canadian media mostly focused on his failed attempt to secure the release of Mohamed Fahmy, one of the four Al-Jazeera journalists currently jailed there, and a citizen of both countries. But Baird’s visit also came with a slew of announcements for new cooperation agreements that confirm Canada’s intentions of putting international development to the service of its “economic diplomacy.” The Department of Foreign Affairs, Trade and Development announced support for a skills development program run by Aga Khan Foundation Canada for young women and men in the Aswan region in southern Egypt, as well as an educational program to be implemented by Save the Children Canada, Plan Canada and CARE Canada in communities where Syrian refugees have been relocated. Canada will also be contributing 10 million Canadian dollars ($7.85 million) to the World Food Program’s School Feeding for Host Communities project, also in refugee-hosting communities. In a separate statement, Baird said Canada would renew its participation in the Decent Employment for Youth Project, run by the International Labor Organization. He also announced an upcoming CA$15 million call for proposals for projects that are aimed at increasing employment opportunities for women through entrepreneurship and improved access to the workforce. While these new programs hold the potential to positively affect Egyptian society, they nonetheless confirm Canada’s diminished participation in local human development. Lower budget, narrower project scope Overall, Canada’s development assistance to Egypt has significantly decreased over the past few years, notably after then-Minister for International Cooperation Beverly Oda slashed Canada’s aid budget by 7.5 percent in 2012. Whereas the Canadian International Development Agency (now amalgamated into DFATD) allocated between CA$15 million and CA$20 million to Egypt annually between 2001 and 2011, this sum was down to CA$6.07 million in the fiscal year 2012-2013. The scope of projects funded by DFATD has also been reduced. While CIDA had traditionally focused programming on economic development, it also addressed gender equality, environmental sustainability, capacity building for the government and civil society and child protection. CIDA’s gender programming included human rights, and sought to influence high-level policymaking. Canadian aid was instrumental in the lead-up to the 2007 ban on female genital mutilation, for instance, and helped integrate gender equality into other key national policies. “We worked hard on helping women get economic achievements, but also helping fix the environment so that women can become small entrepreneurs,” said Ruby Dagher, a former CIDA worker who now teaches at the School of International Development and Global Studies at the University of Ottawa. “Now the Harper government has moved toward this market ideology where they're not working on policies … but they're focusing more on giving women the power to interact in the economy.“ More than a change in language The new focus on targeted initiatives for women and children, as seen in the announcements for new funding to Egypt, reflects a broader policy shift made by DFATD in its development programming, which is moving away from gender equality as a core area of focus. The term “gender equality” has all but disappeared from DFATD’s language in recent years, and has been replaced by “equality between women and men.” “Women and children are the subjects and the objects of charity, in our current policy framework,” said Nadia Abu-Zahra, also from the School of International Development and Global Studies at the University of Ottawa. She cited Canada’s Maternal, Newborn and Child Health initiative as an example of development programs that increasingly ignore the socio-economic causes of gender inequality. What’s more, CIDA’s previous entrepreneurship program in Egypt used to be gender inclusive, working with both men and women, while keeping women and youth as a special population of focus. The new program, which seems to be targeted at women exclusively, might therefore fall short of addressing some of the cultural barriers that prevent men from becoming entrepreneurs and creating employment for both genders. “Culturally, men are the ones who are taking charge of the family, so they should have proper employment to gain proper income, and this forces them to go look for a job rather than start a business,” Hala Hattab, a professor of entrepreneurship at the British University in Egypt, told Devex. Growing trade and diplomatic interests Canada’s reduced development assistance to Egypt comes in stark contrast to its growing commercial and diplomatic interests in the country. Indeed, DFATD’s announcements were not limited to development, but included new agreements in the areas of trade, diplomacy and security. The Canadian government will notably help Egypt strengthen its border controls, and will train its police forces as part of a trilateral initiative with the United Arab Emirates. This comes at a time of growing concerns regarding threats posed to regional security by Islamist militants in Egypt’s Sinai peninsula. Coincidentally, Canadian exports of military weapons and equipment to Egypt have skyrocketed in the past couple of years, with an astounding 182,819 percent increase from CA$3,965 in 2012 to a staggering CA$7,252,754 in 2013. Canadian arms exports to other countries known for human rights violations have also increased significantly; the government has so far refused to sign the U.N. Arms Trade Treaty. In 2013, the Canadian government announced that economic interests would now be at the center of the country’s foreign policy. A report obtained by The Globe and Mail last year revealed that before the DFATD merger, CIDA had conducted some evaluations of its bilateral aid programs to assess trade and investment opportunities in recipient countries. “Canada also has strong economic ties with Egypt, with investment mostly in the petro-chemical sector,” the report said, concluding that growing commercial interests in the country were one of the reasons why it should continue receiving aid. Several other countries were identified for the potential of Canadian companies to invest in their extractive sector. Egypt wasn’t one of them at the time, but Canadian oil and gas companies have since increased their activities locally, while the Egyptian government has been actively trying to attract foreign investment in the sector. Last week’s announcement included a new initiative to help Egypt develop its natural resources industry. “Canada and Egypt’s Ministry of Petroleum and Mining are agreeing to cooperate in Egypt’s oil and gas and mining sectors to help address energy needs, strengthen Egypt’s regulatory system and create jobs for Egyptians,” said the press release. “Canada’s history demonstrates that the extractives sector can help build a country and contribute to its prosperity.” Check out more insights and analysis provided to hundreds of Executive Members worldwide, and subscribe to the Development Insider to receive the latest news, trends and policies that influence your organization.