Aid minister aims for more private sector investment in foreign aid
International Development Minister Marie-Claude Bibeau says she wants to use the new $2 billion in extra aid dollars in Tuesday's budget to attract insurance and pension funds to invest in fight global poverty.
Bibeau says she's targeting them for a simple reason, they've got plenty of money.
She says governments alone can no longer cover the costs of providing humanitarian assistance to help poor countries eradicate poverty.
The key to attracting new sources of aid, she says, is to find ways to reduce or manage the level of risk they would face by investing in conflict-ridden countries where extra aid dollars are sorely needed.
Bibeau says the need to attract more private investment to foreign aid will be discussed during a meeting in British Columbia in May of G7 development and finance ministers that will include her cabinet colleague Bill Morneau.
The new spending will be doled out over five years and go towards a new International Assistance Innovation program, designed to come up with flexible new financing arrangements, and a Sovereign Loans program.