Canada at a Crossroads: Defending ODA and Shaping Global Development Finance

NPSIA is proud to highlight a timely and deeply researched landscape paper by our Director, Yiagadeesen (Teddy) Samy, titled Canadian Development Finance Modalities at a Time of Fiscal Constraints and Geopolitical Tensions.
At a moment when global needs are rising and donor budgets are tightening, this paper offers a clear-eyed assessment of Canada’s development finance landscape — and a compelling case for renewed leadership.

Over the next several years, Canada will implement significant cuts to its Official Development Assistance (ODA), part of a broader trend among major donors. These reductions come at a time of escalating humanitarian crises, widening inequalities, and growing pressure on low-income and fragile states. Teddy’s paper underscores a critical point: ODA remains irreplaceable, especially for countries with limited fiscal space, high debt burdens, and little ability to attract private investment.

The paper provides a comprehensive overview of the full spectrum of development finance modalities now shaping Canada’s engagement — from traditional grants and concessional loans to blended finance, impact investing, and multilateral instruments. It argues that while innovative finance has an important role to play, these tools cannot substitute for ODA, particularly in contexts where poverty reduction and basic service delivery remain urgent priorities.

The message is clear: Canada’s choices today will shape its credibility, influence, and impact for years to come. Maintaining a strong, poverty‑focused ODA program — while strategically deploying other financing tools — is essential to advancing a peaceful, inclusive, and prosperous world.
We invite you to read the full paper and join the conversation on how Canada can continue to be a reliable and principled development partner in an era of global uncertainty.