Canada at a Crossroads: Defending ODA and Shaping Global Development Finance
NPSIA is proud to highlight a landscape paper by our Director, Yiagadeesen (Teddy) Samy, titled Canadian Development Finance Modalities at a Time of Fiscal Constraints and Geopolitical Tensions. This landscape paper was commissioned by Cooperation Canada.
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. Dr. Samy’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.
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.