McLeod Group Blog, March 18, 2015
Every election since the beginning of time, it seems, has been about the economy. And a large part of that is about jobs. When politicians talk about jobs, they usually means jobs at home, but in today’s world, creating jobs across the street may depend on helping to create jobs across the world—not jobs that reduce Canadian opportunities, as so often has been the case, but jobs that do the opposite.
Lost in the din of political chatter about security and the federal budget is the fact that the tools of foreign policy—aid, trade and diplomacy—can, in fact, produce new economic opportunities in developing countries that also work for Canada. Here’s how:
Youth jobs: Through grants and loans to grow local businesses, our aid program can work with markets and governments to help create new jobs with good wages for young people in poor countries, in dynamic sectors like agriculture, construction, technology, finance and manufacturing. These programs should be aimed in particular at young men, who are also targeted for recruitment by extremist militias, rebel armies and organized crime.
Women’s empowerment: A special effort can, and should, be made by our aid program to promote women’s rights and opportunities in education, politics and business. This applies to stable nations and conflict zones alike. Indeed, backed by respectful peacekeepers, empowered women can help build peaceful links across combatant lines, setting the stage for demilitarization and future investment opportunities.
Stable governance: Canada’s aid program can work with other donor agencies and recipient countries to strengthen the public institutions and civil societies of developing countries, promoting transparency and accountability, and helping to stabilize governance on the ground, establishing conditions for productive investment, trade and diplomatic relations.
Leadership development: Aid-financed management and technical training programs in areas ranging from agriculture to macroeconomics and telecommunications not only produce the next generation of leaders in poor countries; these programs are also the platform for lasting political and economic relationships between Canada and this new leadership cohort.
Humanitarian assistance: Away from the spotlight, and under extreme conditions, Canadian organizations that deliver humanitarian aid to communities hit hard by natural disasters or conflict earn our nation even more goodwill while they also save lives. These efforts seed future business and diplomatic partnerships.
Diaspora links: Much more can be done to promote trade through the links new Canadians have with their countries of origin, especially the new powers of Brazil, China and India, as well as rising stars like Indonesia, Poland and Turkey. Increased investment by companies from these countries in key sectors in Canada like agriculture and renewable energy can generate new quality jobs for Canadians. But this needs serious and committed government spending for trade missions, export finance and partnership formation, not simply exhortation and lip-service.
Small and Medium Enterprise is key: Small and medium enterprises (SME) drive local economic growth and jobs everywhere on the planet. Where development cooperation is concerned, being pro-business shouldn’t mean using aid to support Canadian companies operating abroad. We have other government mechanisms for that. Instead, it should mean strengthening SMEs in developing countries in ways that advance the interests of people at the margins of their societies.
Fostering jobs and stable economies overseas works for Canada at many levels. It builds strong and lasting relationships; it contributes to economic and political stability; it creates opportunities for trade and investment in both directions. That is good for Canada.
Canadians want a nation that is fair, prosperous and democratic, with a vision that goes beyond the next election. Smart foreign policy can help us get there.