The Politics of Canada's Foreign Aid Programme: Indonesia--A Case Study

Abstract

<p>With the expansion of Canadian Development assistance since the end of World War II, a need for a clearly defined aid policy developed. The Canadian government found that there was a need to be able to account for development assistance to one country and not to another. By outlining a criterion for development assistance, the government would also be able to explain different levels of aid at different times. Authors like Triantis, Spicer and Reuber developed a trilogy which accounts for the Canadian motives in having a development assistance programme. Humanitarian interests have often introduced the donor country to the needs of the recipient nation. Implicit in this motive was that aid was given freely with no strings attached. Secondly, economic interests may have been an instigating factor in having an aid programme. As a middle power, Canada depended on trade for its own economic well-being. By tying eighty percent of ODA to goods and services originating in Canada, Canadian markets were expanded. Many developing countries have been considered rich in natural resources that were needed by Canada and other developed countries. Aid could be exchanged in return for these resources. Thirdly, ODA was provided for political/security interests. Rather than giving a hostile power the chance to extend aid and their influence over the social and economic development of Third World countries, the Canadian government chose to provide assistance.</p> <p>In the case study the Canadian government's motives for having an ODA programme with Indonesia are examined. While there may have been some evidence of humanitarian and economic motives, the case study argues that political interests dominated in the Canadian government's decision to have an aid programme with Indonesia. As political interests intensified, ODA increased. Aside from these factors, the case study also shows that while CIDA is responsible for the administration of Canadian development assistance, the aid programme with Indonesia reflected the concerns of other federal government departments such as External Affairs. Also, political concerns of the Canadian government that instigated its interest in development assistance exist to a certain extent today.</p>