ABUJA, Nigeria - Jean Chrétien, the Prime Minister, acknowledged yesterday that Canada's African aid policy has failed in its primary goal of reducing poverty and he promised sweeping changes designed to provide progressive nations with the bulk of development assistance.
Mr. Chrétien's proposal -- part of a larger initiative being developed by the G8 in tandem with African nations -- was endorsed by one of the continent's most influential leaders. Olusegun Obasanjo, president of Nigeria, said Africans are tired of going "cap in hand" to rich countries for assistance.
Following meetings yesterday with Mr. Obasanjo and several other west African leaders, Mr. Chrétien said future Canadian aid will be based on a system that rewards progressive nations that embrace democracy, human rights and social reforms.
"I don't think that in the last 10 years the programs in Africa of poverty reduction have been successful. Africa has regressed over the last 10 years rather than progress economically," Mr. Chrétien told reporters yesterday, adding that "we have to reward improvement."
Canada spent $696-million on development aid to Africa last year and has averaged between $500-million and $700-million annually in recent years.
But critics have charged that Ottawa's foreign aid has been ineffective because it is provided with few strings attached, primarily to corrupt, poorly governed nations.
Mr. Chrétien, as chairman of this June's G8 summit in Kananaskis, Alta., is on an 11-day tour of Africa to consult leaders about developing criteria to rank the nations most deserving of aid.
African leaders last year asked the G8 to help them overcome decades of poverty, violence and decreasing living standards by working together on a comprehensive development plan that puts the onus on them to introduce government and societal reforms.
Mr. Obasanjo agreed the "carrot-and-stick" approach offers incentive for corrupt or dictatorial regimes to introduce democratic, legal and human rights reforms.
"Assistance should be based on need and on reward.... I believe the two should go together, made so that you actually take care of the need of individual countries and reward others to encourage healthy competition," said Mr. Obasanjo. "If you perform, you get encouragement."
Mr. Obasanjo was a key player in the development of the New Partnership for African Development (NEPAD), which serves as the blueprint for the G8's upcoming African Action Plan.
Africa will never emerge from poverty if rich nations such as Canada simply write foreign aid cheques and do not work as partners in development, he said.
The African proposal to G8 nations includes requests to forgive foreign debt and reduce agricultural subsidies and trade barriers that hamper African exports.
"We have said that one of the things that marks NEPAD out from other programs of the past is that it is not a program where you go cap in hand and say, 'Put money here,' " said Mr. Obasanjo.
"Almost every day we have one thing or the other that is given to us. We don't even know what they are. And when we fail in the process, we are told that we have failed."
Canada has committed an extra $500-million in foreign aid to Africa to help implement the G8 plan once it is finalized.
Mr. Chrétien said Canada will still support the neediest nations, but money will be targeted at countries that implement "the rule of law, respect for human rights, peace and security and democratic rights."
"That will make it possible for the capital to come and develop the great potential of Africa."
Mr. Chrétien flies today to South Africa for meetings with Thabo Mbeki, the country's President.
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