CIDA's Policy on Poverty Reduction

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c. <strong>Policy</strong> interventionsActivities which affect the policy environment arealso crucial to poverty reduction. Removing systemicconstraints at both the national and internationallevels can work to address the root causes ofpoverty for both peoples and nations. Examplesinclude:◆◆◆◆◆the promotion of equitable growth-orientedpolicies;working to reorient public expenditurestowards social priorities;promoting and enshrining property rightswhich are equitable to women;stimulating a national dialogue on povertyissues; andworking in the international policy area toreduce global poverty.As a result of Canada's initiative, a set of recommendationsfor the explicit and systematic consideration ofgender issues in economic reform programs wasendorsed by the most recent SPA plenary meeting inParis in November 1995. Highlights include:• upfront gender analysis in designing adjustmentoperations;• protecting and enhancing public expenditures thatfoster gender equity, such as primary education,basic health services; and• finding ways to increase African women's participationin economic decision making.There is now broad acceptance that effective integrationof gender concerns into the design and implementationof measures to support economic reforms inAfrica can lead to improved results.Canada, through CIDA, is an active participant inthe Special Program of Assistance to the low-incomecountries of sub-Saharan Africa (SPA). This internationalforum of donors, chaired by the World Bank,coordinates support for economic reforms in most ofsub-Saharan Africa.Since it was launched in 1987, the SPA has sent aclear message to Africa and the rest of the world: thereis a vital link between good economic policy andpoverty reduction.Significant progress has been made in highlighting theimportance of "gender equity"--recognition that menand women are affected differently by economicreforms. African women, for example, do the bulk offarming and trading, but are constrained in theirability to respond to new economic incentives, due tofactors such as limited access to credit and appropriateagricultural extension services, an already heavy workload,etc. With the acceptance by the SPA that gendershould be recognized as an important part of theadjustment agenda, Canada established the StructuralAdjustment and Gender in Africa initiative--or"SAGA"-- a collaborative framework for SPA donorsand working groups.7
(4) Combine economic growth and socialinvestments:There is no automatic link between economicgrowth and poverty reduction. Economic growthreduces poverty when the productive capacity ofthe poor is matched with the physical locationand the labour needs of the growth sectors.Sound economic management, openness todomestic and international trade and investments,private sector development, investment in infrastructureservices and in social sectors to meetbasic needs, have been key elements of nationalpolicies which have strengthened the positivelinks between economic growth and povertyreduction.National governments and political leadershipcommitted to poverty reduction play a criticalrole. The conditions established by governments'economic and social policies are crucial to thelong-term sustainability of poverty-reductionmeasures. Governments determine the economicpolicy framework, redistribute resources, providecritical social investments for the poor, and framethe legislation that establishes property rights andthe legal basis for removing gender inequities.(5) Address basic human needs:Addressing priorities such as basic education, primaryhealth care, nutrition and family planning,water and sanitation, and shelter, play a key role inpoverty reduction. Education, particularly basiceducation, has significant benefits for the poor byincreasing incomes; it also promotes participationby educating people on social issues. Educatinggirls is, in particular, the single most effectivedevelopment investment.(6) Achieve food security:Food security allows people to protect and sustaintheir broader livelihoods--while food insecuritycan lead to powerlessness, dependency, pain, andreduced physical and intellectual growth. Foodinsecurity reinforces the cycle of poverty.CIDA will take steps to ensure that food aid isconsistent with, and better integrated into, overallpoverty-reduction and food-security programmingstrategies.Project and program food aid, which is used as adelivery channel for bilateral programming, mustbe explicitly integrated into overall programmingstrategies to increase effectiveness. Food aid mustbe recognized as only one aspect of food securityand poverty reduction, and must be closely integratedwith other development inputs and programs.However, given the nature of relief activities andthe countries in which they take place, there maynot be country development policy frameworkstrategies available for emergency food aid programs.This is because strategies are only done forcountries which are core-funded. In such cases,the development of food-security strategies andthe choice of partners will be crucial. It is criticalthat Canada work with partners who will be presentto work on the transitional and rehabilitativeneeds, beyond the immediate relief requirements.(7) Promote participatory approaches: buildnetworks and involve governments:Supporting the work of local non-governmentalorganizations (NGOs) and the internationalfinancial institutions (IFIs) is an area in whichCIDA will continue to make a contribution.8
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CIDA's Policy on Poverty Reduction

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