Regulations Defining “official development assistance”: SOR/2021-128
Canada Gazette, Part II, Volume 155, Number 13
Registration
SOR/2021-128 June 10, 2021
OFFICIAL DEVELOPMENT ASSISTANCE ACCOUNTABILITY ACT
P.C. 2021-524 June 10, 2021
Whereas the Administrator in Council has taken into account, among other things, the most recent definition of “official development assistance” formulated by the Development Assistance Committee of the Organisation for Economic Co-operation and Development;
Therefore, His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister for International Development, pursuant to section 3.1 footnote a of the Official Development Assistance Accountability Act footnote b, makes the annexed Regulations Defining “official development assistance”.
Regulations Defining “official development assistance”
Definition
Definition of official development assistance
1 (1) For the purposes of the Official Development Assistance Accountability Act, official development assistance means international assistance that
- (a) meets the criteria set out in the definition “official development assistance” or “ODA” published on the website of the Organisation for Economic Co-operation and Development, as amended from time to time; or
- (b) meets the criteria set out in subsection 4(1.1) of that Act.
Incorporation of amendments
(2) For the purposes of paragraph (1)(a), any amendment to the definition “official development assistance” on the website of the Organisation for Economic Co-operation and Development is incorporated only when the amendment is available in both official languages.
Coming into Force
S.C. 2018, c. 27
2 These Regulations come into force on the day on which section 657 of the Budget Implementation Act, 2018, No. 2 comes into force, but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The definition of “official development assistance” contained in the Official Development Assistance Accountability Act (the Act) was based on the internationally agreed definition of the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD-DAC) at the time the Act was passed in 2008. However, the OECD-DAC definition of official development assistance (ODA) has evolved in recent years and Canada's definition of official development assistance contained in the Act is no longer aligned with the latest international definition. This could lead to a growing discrepancy between Canada's reporting of official development assistance to Parliament under the Act and its international reporting to the OECD-DAC. As Canada seeks innovative new ways of leveraging its international assistance, the former definition in the Act would have meant that some of Canada's sovereign lending investments could not be correctly reflected in official development assistance reporting to Parliament.
Background
In Budget 2018, the Government of Canada made commitments to “explore further enhancing its international assistance reporting, including consideration of legislative updates as appropriate.” The Budget Implementation Act, 2018, No. 2, which received royal assent on December 13, 2018, made amendments to the Act to facilitate implementation of these commitments. Among other things, it repealed the definition of official development assistance in the Act and allowed for the definition to be made by regulation.
The Act originally came into force in 2008 and outlines key principles and requirements for Canada's official development assistance to be reported to Parliament. It requires that an annual summary report of all official development assistance activities and expenditures made by the Government of Canada be tabled in Parliament, based on the definition of official development assistance that was contained in the Act.
The definition of official development assistance originally contained in the Act read: “Official development assistance means international assistance
- (a) that is administered with the principal objective of promoting the economic development and welfare of developing countries, that is concessional in character, that conveys a grant element of at least 25%, and that meets the requirements set out in section 4; or
- (b) that is provided for the purpose of alleviating the effects of a natural or artificial disaster or other emergency occurring outside Canada.”
The definition of official development assistance in the Act did not include recent changes to the OECD-DAC definition. The main difference stems from how official development assistance is counted for concessional loans. Concessional loans refer to loans extended on terms substantially more generous than market loans and/or with an extended grace period for repayment. Budget 2019 also reiterated the importance of these legislative updates and the efforts to promote greater transparency and accountability in Canada's future international assistance reporting.
Objective
- To define “official development assistance” for the purposes of the Official Development Assistance Accountability Act and to ensure that Canada's reporting under the Act is based on the most up-to-date, internationally agreed definition of official development assistance.
Description
The Regulations Defining “official development assistance” (the Regulations) define the expression “official development assistance” for the purposes of the Official Development Assistance Accountability Act. In particular, the Regulations specify that the expression “official development assistance” means international assistance that is
- (a) aligned with the definition as set out by the OECD, as amended from time to time, on their website; or
- (b) provided for the purposes of alleviating the effects of a natural or artificial disaster or other emergency.
Amendments to the OECD definition take effect only when available on the OECD's website in both official languages.
Regulatory development
Consultation
Several stakeholders provided input into the definition of official development assistance in the context of the legislative amendments to the Act. In response to stakeholder comments stressing the importance of ensuring alignment of the legislative definition of official development assistance with the OECD-DAC definition, specific language was added to the legislative amendments to specify that the definition of official development assistance contained in the Regulations must take into account the most recent definition of official development assistance formulated by the OECD-DAC (see section 657 of the Budget Implementation Act, 2018, No. 2).
Global Affairs Canada took measures to engage stakeholders in the development of the Regulations. A notice of intent was published in the Canada Gazette on March 16, 2019, to provide information about the proposed definition of official development assistance and invite public comments. Global Affairs Canada also engaged directly with a broad group of potentially interested stakeholders, including key Canadian data users, institutional partners, and umbrella organizations to solicit their views, including via email and through an in-person meeting.
Stakeholders shared views and asked questions on a wide range of topics, including possible elements to be included or reflected in the definition, the impact of the new definition on Canada's official development assistance reporting of “private sector instruments,” and the status of OECD-DAC discussions on possible further changes to the definition and calculation methodologies. Global Affairs Canada officials provided information on the intended scope of the definition, clarified the process for calculating official development assistance for different types of private sector instruments, and discussed ongoing modernization efforts at the OECD-DAC, in particular efforts to agree to more comprehensive rules to better capture donors' use of private sector instruments in official development assistance statistics.
The Regulations were not prepublished in the Canada Gazette, as their substance (i.e. the proposed definition of official development assistance) was shared and comments were solicited through the notice of intent and Global Affairs Canada's direct engagement with key stakeholders.
Modern treaty obligations and Indigenous engagement and consultation
Modern treaty implications have been considered and none have been identified as the geographic scope and subject matter of the initiative was not deemed to generate any potential impacts on modern treaties. The Regulations do not impact Indigenous peoples, as it simply serves to update the definition of the expression “official development assistance” for the purposes of the Act.
Instrument choice
The previous definition of official development assistance in the Act required legislative amendments to update it. This constrained the ability to implement timely updates to maintain alignment with the evolving OECD-DAC definition, and risked the possibility of significant periods of time where the definition would have been out of alignment with international standards. As the OECD-DAC definition of official development assistance is expected to continue to evolve in future, the more streamlined mechanism of a regulation for updating this definition was therefore desired.
Regulatory analysis
Benefits and costs
The Regulations ensure that the most current definition of official development assistance from the OECD-DAC is applied to Canada's official development assistance. This, in turn, generates the following benefits:
- (1) It ensures harmonization and coherence across Canada's reporting to Parliament and to the OECD, which will increase clarity for Canadian and international stakeholders.
- (2) It helps ensure that recent changes related to how official development assistance is counted for concessional loans will be captured.
By achieving the above objectives, the Regulations contribute directly to the Budget 2018 and Budget 2019 commitments to enhance Canada's international assistance reporting.
There are no incremental costs associated with the Regulations.
Small business lens
The small business lens does not apply, as there is no change in costs to businesses.
One-for-one rule
The one-for-one rule does not apply, as the Regulations do not result in any changes in administrative costs for businesses.
Regulatory cooperation and alignment
The Regulations are not related to a work plan or commitment under a formal regulatory cooperation forum. The Regulations do align the definition of the official development assistance for the purposes of the Act with the most current internationally agreed definition from the OECD-DAC. It thus enables the harmonization of Canada's reporting to Parliament with its international reporting to the OECD. All other donor countries that are members of the OECD-DAC have also agreed to report under the new definition of official development assistance.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this proposal.
Implementation, compliance and enforcement, and service standards
The Regulations will come into force on April 1, 2022, to ensure that the new definition applies to the entirety of the fiscal year to facilitate reporting to Parliament and Canadians as part of the Report to Parliament on the Government of Canada's International Assistance.
Once the Regulations come into force, all relevant reporting will be aligned to the definition included in the Regulations. If and when changes are made to the OECD-DAC definition, modifications to the Regulations will be done in a timely manner in order to ensure alignment with internationally agreed definition of official development assistance.
Contact
Carol Mundle
Director
International Assistance Envelope Management Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Email: carol.mundle@international.gc.ca