In 2005, Canada adopted a new international policy statement which sets out a new framework for Canadian development cooperation with a view to strengthening its impact and effectiveness. Notably the new statement lays out a plan to focus Canadian efforts and resources in five core sectors and in 25 ‘focus’ countries. Canada is committed to providing two-thirds of its aid to these 25 predominantly African countries, but there is still a risk that these Canadian country programs lack critical mass.

The new international policy statement comes against a backdrop of existing efforts to improve the effectiveness of Canadian aid. The main Canadian development agency has been engaged in a process of transformation from a project-oriented organization, contracting with many mostly-Canadian ‘executing agencies,’ to a program and country-focused organization operating within developing country driven development strategies. This move should improve aid effectiveness as well as increasing the poverty-reduction and MDG focus of Canadian aid.