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1991 Report of the Auditor General of Canada

Main Points

12.2 Every year competition for public funds increases and the need for funds to finance additional activities expands. New global issues emerge while many existing problems remain unresolved. The Department's management of multilateral activities will have to be more businesslike. Current fiscal realities are calling for hard choices (12.86).

12.3 The capacity for informed decision making by the Department, and Parliament, would be enhanced by the following changes in the way multilateral activities are managed and reported:

• articulating foreign policy objectives and priorities more clearly as they relate to participation in multilateral activities, and improving planning of operations (12.23 to 12.30);
• "standing back" and assessing on a periodic basis whether, or how well, memberships in international organizations are meeting Canada's foreign policy objectives. Departmental officials told us that they are now raising questions about certain aspects and programs of some international organizations, such as the International Labour Organization and the Food and Agriculture Organization (12.31 to 12.40);
• developing a more innovative approach to effecting administrative reform at certain UN organizations, which have not changed substantially in spite of sustained efforts by Canada over many years, both alone and with other developed countries (12.41 to 12.62);
• clarifying co-ordinating responsibility and relationships with other participating departments (12.63 to 12.76); and
• giving Parliament better information to justify resource utilization for multilateral activities and build a stronger consensus about Canada's role, foreign policy objectives and choice of options for program delivery (12.77 to 12.84).

Introduction

Multilateral co-operation is a key element in Canada's foreign policy

12.6 Traditionally, Canada has been an active participant in international forums and organizations, and has been scrupulous in maintaining its obligations to them. Indeed, the Department of External Affairs considers multilateral co-operation as central to the discharge of Canada's foreign policy objectives. It has held the view that Canada's influence in world affairs, as a middle power, can best be achieved by working with other countries, on a multilateral basis, on issues of global interest. As new issues arise, it is Canada's stated intention to continue to conduct an active and independent foreign policy that will emphasize constructive internationalism.

12.7 The government has stated its commitment to multilateral co-operation and perceives it as an effective way of fulfilling foreign policy and other objectives. It has adopted, over the years, the practice of being a member of most international organizations and participating in most international forums. As a country with a large GNP and a relatively small population, Canada contributes more to international organizations, on a per capita basis, than most developed countries.

Background

The Department's Multilateral Mandate

12.9 The relationship between Canada, as a member country, and international organizations is governed by the organizations' constitutions, defining their purpose and specifying their arrangements for administration and management. A single member's ability to influence a particular organization, or the United Nations (UN) system as a whole, is limited. The Department also has no discretion over the amount it will pay for membership in an international organization. This is dependent on the organization's budget and the formula, agreed on by member countries, determining each member's assessed share. Other departments and agencies also make payments to international organizations, mostly on a voluntary basis (see Exhibit 12.1 ). The scope of this audit, set out in paragraph 12.17, focusses on management practices at External Affairs where membership payments are made by the Department.

12.10 In addition to the Department of External Affairs, many other government departments and agencies are involved in multilateral activities. The Department takes the position that it is accountable for "high quality Canadian participation" in all multilateral activities. In assuming this role, it has to rely on other departments and agencies which deal with programs within their spheres of expertise.

Canadian Management of Membership

12.12 Within External Affairs, multilateral activities are conducted by a number of branches at headquarters and by missions abroad. Some of these, such as Canada's permanent missions to the United Nations in New York and Geneva, are dedicated to multilateral affairs (see Exhibit 12.2 ). In 1991-92, the Department's budget for membership payments to international organizations, excluding NATO and UN peacekeeping activities, is estimated at $128.9 million ( Exhibit 12.3 ). Canada's share of these organizations' budgets varies from approximately 3 percent in the UN system to over 25 percent in certain smaller organizations. There are also operating costs incurred by External Affairs in conducting multilateral activities. Based on most recent departmental figures, we estimate that these amounted to some $37 million in 1989-90. This includes salaries and benefits for about 55 persons at headquarters in Ottawa and 60 at permanent missions abroad, as well as conference attendance costs and operating expenses.

12.13 Canada subscribes to a large number of organizations whose members are primarily governments of sovereign states. These international organizations vary from universal bodies such as the United Nations, and linguistic and political groups such as the Commonwealth and La Francophonie, to regional bodies such as the Organization of American States. Although each organization has its own purpose, membership, size and culture, almost all are structured and operate according to the same basic management principles, for example as to their governance.

12.14 As a member of international organizations, Canada participates extensively in many forums. These include regular conferences, like the UN General Assembly held annually in New York, and conferences of the various UN Specialized Agencies such as the World Health Organization. In 1989 alone, 220 such conferences within the UN system took place. Canadian representatives frequently participate as members of organizations' governing bodies or executive boards.

12.15 The Department describes the key functions of Canadian management with respect to multilateral activities as developing and co-ordinating the delivery of foreign policy, managing institutional relations, and overseeing the efficient use of funds by recipient organizations. The Department normally represents Canada at UN meetings in New York, and frequently in the more technical agencies, particularly when political issues have to be dealt with. We observed that headquarters is mainly responsible for co-ordinating the preparation of briefing reports and position papers for the guidance of Canadian delegations at conferences and meetings, and for approving the list of delegates from various federal government departments, other levels of government, universities and other institutions. It also invites observers to Canadian delegations, including Members of Parliament. Missions abroad maintain relations with institutions and with foreign delegations at the UN and other bodies, both on a formal and informal basis.

Audit Objective, Scope and Approach

12.17 We audited the management practices used by the Department of External Affairs, and its accountability for membership payments to international organizations (shown in Exhibit 12.3 ) and related operating costs in conducting multilateral activities. In order to determine if there were satisfactory procedures for measuring and reporting on effectiveness, we examined whether and how the Department assesses the benefits that Canada receives from membership in international organizations, along with other related outcomes. We also examined whether it communicates these in such a way as to permit public scrutiny and debate on the value of this channel of program delivery relative to other possible options.

12.18 We examined reports by international organizations on their financial and operating status and other administrative matters, minutes of their conferences and meetings, the Department's records on multilateral activity, and authoritative studies and reports in the multilateral field, including audits and inspections by some other countries. We interviewed foreign service officers in Ottawa and at two major permanent missions to international organizations, officials in certain UN organizations, and a selected number of representatives of other member countries. We also attended interdepartmental committee meetings. We did not audit the efficiency and effectiveness of the international organizations funded by Canada.

12.19 While we excluded from our scope the multilateral activities of other departments and agencies, we comment on External Affairs' administrative arrangements for co-ordination because of its central role in discharging Canada's foreign policy. In this context, we interviewed officials in certain participating departments.

12.20 We recognize that the Department's management practices for delivering foreign policy through multilateral channels have to be examined from the perspective of current fiscal realities and growing financial restraint.

12.21 In 1988, External Affairs' Internal Audit reported on the management of grants and contributions, including membership payments to international organizations. We reviewed the work carried out by Internal Audit, and our audit work confirmed the validity of many of its findings. We could not build on program evaluations, as the Department had not examined the effectiveness of its activities in the multilateral field. Nor could we rely on a departmental Corporate Review, a 1990 ad hoc exercise, because it did not cover payments to international organizations in any depth.

12.22 We plan to report in future years on the management practices associated with payments to international organizations by other departments and agencies. Next year, we will report on payments to multilateral development banks by the Canadian International Development Agency and the Department of Finance.

Observations and Recommendations

Departmental Management Deficiencies

The Department has not given sufficient attention to known deficiencies

12.24 We expected departmental management to have acted on the deficiencies identified by internal audits and other reviews on a timely basis.

12.25 We found that management has not acted on the 1988 recommendations of Internal Audit. The Department has not stated its reasons for not addressing these recommendations, nor has Internal Audit followed up on the lack of timely action. Other studies have also noted the lack of clearly articulated objectives, priorities and management policies for multilateral activities. The Department's recent resource reviews and the ad hoc Corporate Review exercise of 1990 stressed the necessity to strengthen planning and priority setting at the missions, a theme we have repeatedly reported on, including in our 1989 Report.

12.26 Our audit work confirms that the following significant issues dealing with the management of multilateral payments and activities, raised by Internal Audit, have yet to be addressed:

• the need to set clear objectives in operational terms and assess effectiveness;
• the need for a departmental administrative policy relating to the management of payments to international organizations;
• the need for guidance to officers on the use of information received from recipient organizations;
• the feasibility of transferring responsibility for funding some international organizations to other government departments; and
• the need to establish a system for monitoring and following up action taken or reforms implemented in the UN administrative and budget systems.

12.28 In March 1988 the Department's Audit and Evaluation Committee endorsed the findings and recommendations of the Internal Audit report, discussing in particular whether External Affairs should retain administrative responsibility for making membership payments to international organizations or transfer this responsibility to other government departments and agencies. It was agreed that the managers concerned would review whether the benefits justify the costs of continuing to administer these payments, or if departmental objectives could be met in a less costly way, through the rationalized delivery methods recommended by the auditors. However, we found that no such review had taken place.

12.29 We believe that, by not addressing known deficiencies, the Department is missing an opportunity to strengthen its capacity for strategic decision making and adopt a more businesslike approach to the management of multilateral activities.

12.30 The Department should ensure that:

• managers address known deficiencies in the management of multilateral activities, including acting on recommendations resulting from internal audits and reviews endorsed by its Audit and Evaluation Committee; and
• Internal Audit follows up on the implementation of these recommendations.

Relevance and Benefits of Memberships

Periodic departmental assessments of Canada's memberships in international organizations are needed

12.32 We expected that the Department of External Affairs would clearly articulate its objectives for memberships and participation in international organizations. We also expected it would periodically "stand back" and assess and report on the benefits derived from, and the continuing relevance of, its memberships in relation to stated objectives. This would include both positive and negative effects, as well as unintended consequences, if any.

12.33 We found that the Department lacks the information it requires to assess how well Canada's memberships in international organizations are meeting foreign policy objectives or whether these organizations or their activities continue to be relevant to Canada. First, departmental objectives for multilateral activities are not clearly articulated. Second, it has not identified the benefits expected from its memberships in international organizations or assessed how effective or relevant the memberships are in achieving Canada's foreign policy and other objectives. The Canadian mission to the UN in Geneva reports the risk that some organizations are less relevant to Canada today than when we joined them. Within the Department, officials told us that they are now raising questions, from a foreign policy perspective, about the continuing relevance to Canada of certain aspects and programs of some international organizations, such as the International Labour Organization and the Food and Agriculture Organization.

12.34 The Department states that it assesses its performance, in an informal way, through regular activities such as preparing briefings for delegates to conferences and delegates' feedback in the form of frequent telexes and final reports. While these activities play an important role in ongoing management and policy development, they do not attempt to formally assess the benefits accruing to Canada or compare them with objectives, to decide on the nature and extent of participation in the various aspects of multilateral co-operation.

12.35 We believe that clarifying departmental objectives, identifying expectations and maintaining data on actual benefits to Canada would be reasonable and appropriate for its main activities in the multilateral field. Consideration should also be given to unintended effects, both positive and negative.

12.36 The Department could begin by clearly articulating Canada's foreign policy objectives with regard to multilateral activities. It could then assess the extent to which multilateral activities are furthering these objectives. This would be done for departmental activities related to those organizations that are receiving large amounts of funds, or those perceived as most relevant to, or becoming marginal to, Canada's objectives. We recognize that conducting assessments of multilateral activities will require knowledgeable personnel who are prepared to make judgments objectively and on a timely basis.

12.37 An important element in such an assessment would be gathering and analyzing the information coming from the international organizations themselves. We observed that the Department does not receive the kind of reports necessary to provide sufficient assurance from organizations on the results achieved and objectives met. Access to evaluation outputs prepared by the organizations would be necessary. A recent study in Sweden concluded that evaluation systems within the international organizations should be strengthened, and evaluations better used by the Swedish administration. In the United States, a General Accounting Office study on the UN internal evaluation system concluded that, through independent assessments of UN development programs, U.S. managers were in a position to make decisions regarding U.S. participation in these programs.

12.38 A periodic assessment of multilateral activities and memberships in international organizations would enable the Department to answer such key questions as:

• What value is placed by Canada on the nature and extent of its participation in the organization?
• Are each organization's objectives and activities still relevant to Canadian foreign policy and other objectives? What role should Canada play in the organization? Are the benefits received meeting Canada's objectives?
• Does each organization meet its own objectives and purposes? Is it equipped to meet the challenges of the 1990s?
• Are there unanticipated effects as a result of memberships and participation?

12.40 The Department should:

• more clearly articulate Canada's foreign policy objectives with respect to multilateral activities;
• identify and collect information on the benefits accruing, as well as any unintended effects;
• assess, on a periodic basis, whether its multilateral objectives are being met; and
• make decisions, using this information, on the nature and extent of its participation in the various aspects of multilateral co-operation.

Efforts to Reform the UN System

Sustained efforts over many years have led to little substantive change

12.42 Canada has repeatedly gone on record as supporting efforts to improve the administrative and financial functioning of the United Nations system. External Affairs' management believes that an efficient and effective UN system is very important to finding solutions to global problems. For many years, it has made commitments to help effect administrative reform "from within" the UN itself and certain of its specialized agencies that are reported to be mismanaged and inefficient.

12.43 We expected that such efforts would be directed to activities where results could be identified and achieved within a reasonable period of time. We looked for specific achievements that would demonstrate the success of Canada's efforts, alone or with other countries.

12.44 We examined Canadian efforts in four major international organizations: the United Nations Organization, the World Health Organization, the International Labour Organization and the Food and Agriculture Organization. The 1992 membership payments to these organizations are estimated at $66.6 million or 52 percent of the total payments within the scope of this audit.

12.45 We recognize the Department's commitment over several years to effecting reform in a number of agencies and across the system. Our examination of the reports relating to the UN organizations and interviews with certain of their officials, as well as a number of representatives of other member countries, indicate that there was little substantive change. In addition, the Department could not provide evidence that substantive improvement had been achieved. While it is possible that the reform efforts may have prevented further deterioration of the administration of certain UN organizations, we remain concerned because waste and inefficiencies continue to be reported. Many audit, evaluation and inspection reports on the UN system include observations and recommendations on the same major deficiencies year after year. Much needs to be done by member countries and management to improve the administration of certain UN organizations and agencies. The Department of External Affairs is also increasingly concerned by this situation. A new Secretary-General of the UN is to be appointed shortly. There is a view evolving in the Department that an opportunity to set priorities for improved management at the UN system exists at this time.

12.46 The main financial problems of the UN system are yet to be resolved, including the recurring budgetary crisis as a result of arrears in members' contributions. For example, although there were some staff cutbacks and administrative changes in the UN Organization, there is no evidence of significant changes to the UN's key personnel policies and practices. Furthermore, the Secretary-General acknowledged in April 1990 that "...insufficient reform has taken place in the overall structure..." of the UN system. Another example is the lack of any substantive administrative change at the Food and Agriculture Organization, although in 1989 there was a consensus among member countries on a reform package for the organization.

Deficiencies in management practices may inhibit achievement of results

12.48 Other factors inhibiting achievement relate to deficiencies in the Department's management practices for multilateral activities. The most important of these are: spreading its resources thinly by maintaining a presence in most UN forums and committees; lacking specialized skills in financial and budgetary matters; and working primarily with groups that include representatives of developed countries only.

12.49 The Department has not focussed its efforts. The Department participates in many forums and deals with numerous issues without clearly stated priorities. An example is its active participation in international efforts to improve the administration of the United Nations system.

12.50 Efforts have been made by Canadian representatives, at least during the past five years, to effect changes which they perceived as required to improve the administration of the UN system. They have participated in numerous discussions and debates relating to the structure, procedures, co-ordination, and administrative and financial functioning of the UN system. These took place in many forums, such as the General Assembly, the Fifth Committee, the Economic and Social Council, the Advisory Committee on Administrative and Budgetary Questions, the Committee for Programme and Coordination, and the Governing Council of the United Nations Development Program.

12.51 In many of these forums, the Department had not adequately determined what the Canadian priorities were and where efforts should be directed. As a result, the Canadian representatives were left to react, as they saw fit, to most of the points on the agendas of organizations' conferences and meetings without being given guidance on selecting those that should be pursued in depth. For example, the large amount of time spent on procedural matters could be reduced.

12.52 Lack of financial and budgetary skills. The Department has also attempted to improve the budgeting process in the UN specialized agencies. In 1987, foreign service officers with limited financial and budgetary skills developed a set of proposals (the "Blue Book") aimed at resolving financial and budgetary problems facing the agencies.

12.53 The Blue Book proposals have not been adopted. Most of the problems identified as needing reform, such as the lack of information on activities and outputs of the organizations and the late payment of assessed contributions, remain unchanged.

12.54 In our opinion, the Blue Book attempted to treat the symptoms without looking at the fundamental causes of the problems. Its technical shortcomings outweighed its merits, and there was no strategy for implementation. It was left to the initiative of individual Canadian foreign service officers, who have limited expertise in financial and budgetary matters, to use the Blue Book as they saw fit.

12.55 A study by experts concludes that "the most likely reason offered for the general lack of acceptance of the Blue Book was that it was too technical and detailed to generate the political energy needed at a high level to promote such initiatives".

12.56 Working with developing countries would enhance reform objectives. For many years Canada has actively pursued reform of the UN specialized agencies, working closely with countries that have similar concerns. For example, Canada participates in the deliberations of the "Geneva Group" of developed countries, each of which contributes at least one percent of the specialized agencies' budgets. The Group addresses financial and administrative issues in these agencies. A similar group, the "Camberly Group", formed in 1986 to co-ordinate efforts toward reforming the Food and Agriculture Organization, is made up of 13 countries whose funding represented some 80 percent of the Organization's budget.

12.57 The Department has recognized the need for broader alliances and the limitations of working with the Geneva Group alone. The Group has confined itself to financial and administrative matters, some of which are of little significance, with insufficient linkage to program matters, and it does not include representatives of developing countries. As for the Camberly Group, members have acknowledged recently that the participation of developing countries in their deliberations would enhance the objective of reforming the Food and Agriculture Organization.

The Department's approach to reform needs to be re-examined

12.59 Future efforts must enhance activities most significant to Canada. The Department needs to shift its efforts to, and focus on, organizations and programs that are most significant to Canada and are most likely to contribute to the achievement of its multilateral objectives. This would involve setting priorities, concentrating on attaining Canadian objectives and eliminating non-productive activities.

12.60 The Department could more actively promote adaptability to the changing political, economic and social circumstances of the 1990s in the organizations. For example, Canada has been an active proponent of the "zero real growth" policy in the UN system. In future, the Department needs to find other effective ways of encouraging organizations to selectively cut programs that are becoming obsolete in order to make room for essential new programs. Also, Canada, unlike many other member countries, has traditionally been scrupulous in maintaining its financial obligations to international organizations. This puts the Department in a strong position to continue to promote mechanisms to effectively solve the problem of arrears of membership dues. These dues are a significant source of multilateral funding.

12.61 More active co-operation with developing countries can yield benefits. Working more closely with other member countries can yield benefits, such as sharing the onerous task of ensuring the effective use of funds by recipient organizations. The need to work constructively with developing countries to effect change is not a new issue. It is important, however, to ensure close co- operation with these countries so their needs and priorities can be taken into account. Common purposes and areas of compatibility need to be found.

12.62 The Department should:

• set priorities for further efforts to improve the administration of international organizations;
• focus on organizations and programs that are most significant to Canada; and
• more actively pursue co-operation with groups that include developing as well as developed countries to effect changes in international organizations.

We acknowledge the limitation of working with groups representing developed countries only and the need to collaborate more closely with developing countries to address the management problems that persist in the UN system. These countries often have priorities for change that are different from Canada's, but which must be taken fully into account.

Accountability for Canada's Performance

Co-ordinating responsibility and relationships with other participating departments need clarification

12.64 The Department takes the position that it is accountable for "high quality Canadian participation" in all international organizations. At the same time, it recognizes that other government departments will determine policy on matters in their spheres of activity and competence, and participate in the conduct of multilateral activities. For example, the Department of Health and Welfare plays an active role in technical matters relating to the World Health Organization. In some cases, other government departments make the membership payment, for example to the World Meteorological Organization and to the International Telecommunications Union.

12.65 We expected the Department to have a clear definition of "high quality Canadian participation", and to have clearly communicated this definition to other participating departments and agencies. We further expected the Department to assume the co-ordinating role for Canada's participation in international organizations. Co-ordination would include:

• assessing the need for membership, before Canada joins an organization, in relation to its foreign policy and other objectives, including those of other government departments;
• establishing a clear rationale for determining the circumstances in which other departments should make membership payments to international organizations to which Canada belongs;
• clarifying with other government departments respective roles and responsibilities, including judging the performance of international organizations;
• assessing on a periodic basis whether membership and participation in an organization meet Canada's foreign policy objectives; and
• providing a clear focal point for parliamentary scrutiny.

12.67 Assessments of the need for membership have been carried out. We found that assessments of the need for membership had been carried out in the two most recent cases where Canada had joined an international organization. In one case, another government department had performed such an assessment, which was endorsed by the Department of External Affairs.

12.68 The Department of External Affairs' accountability for membership payments made by other government departments needs clarification. Some membership payments to international organizations are appropriated through the budgets of other government departments and agencies. We could find no clear criteria for determining the circumstances in which these departments and agencies are to make membership payments. This raises questions as to the accountability of the Department of External Affairs for multilateral activities funded by other government departments.

12.69 For example, Canada recently joined the International Organization for Migration, but in spite of the Department's responsibility for immigration delivery abroad, it is the Canada Employment and Immigration Commission that makes the membership payment. This contrasts with responsibility for payments to most other technical agencies, such as the WHO and the FAO, where the Department of External Affairs pays membership dues.

12.70 We recognize the benefits of active participation by the various other departments. However, accountability would be clarified if criteria for payment by other departments were spelled out, along with the roles and responsibilities of the major players involved, as explained in the paragraphs that follow.

12.71 Clarifying roles and responsibilities with other government departments. We examined how understanding was established with other departments, in particular with respect to responsibilities and mechanisms for judging the performance of international organizations of which Canada is a member. We found that other departments involved in multilateral activity operate independently, without a written understanding with External Affairs on respective roles and responsibilities. For example, it was not clear who was responsible for monitoring the performance of the international organizations being funded, and by what mechanisms.

12.72 An exchange of letters or memoranda of understanding between External Affairs and the key departments and agencies concerned would aid co-operation and avoid duplication, gaps or possible misunderstandings on respective roles and responsibilities. Clarifying roles and responsibilities could also strengthen existing co-ordinating committees.

12.73 As discussed in paragraphs 12.31 to 12.40, we found that the Department did not ensure that "stand back" assessments to evaluate whether memberships and participation meet Canada's foreign policy objectives were periodically carried out. Neither did the Department provide a clear focal point for parliamentary scrutiny (see paragraphs 12.77 to 12.84).

12.74 Clarification would allow the Department to fulfil its accountability role. The current situation makes it difficult for the Department to fully assume its co-ordinating role. It adversely affects its ability to account to Parliament with respect to Canada's overall performance in international organizations for which the Department claims ultimate responsibility.

12.75 The Department indicated to us that such clarification would involve a review of existing legislation by Parliament, if necessary. This would provide answers to accountability questions that arise from the current situation. What is the basis for decisions about which department's budget the payment will be made from? How are visibility and accountability to Parliament for Canada's payments to international organizations served? Which department is ultimately accountable for Canada's payments and performance in multilateral co-operation?

12.76 Where other departments and agencies are involved in multilateral co-operation, the Department of External Affairs should:

• clearly define what it means by "high quality Canadian participation" in international organizations;
• clearly communicate to other participating departments and agencies its accountability with regard to the "high quality Canadian participation" in international organizations; and
• clarify its co-ordinating responsibility and relationship with other participating departments and agencies.

Information to Parliament

The basis for parliamentary scrutiny of Canada's multilateral expenditures and activities is weak

12.78 We expected the Department to report to Parliament on its performance related to Canada's multilateral expenditures and activities, including the results achieved and their impact. We further expected this information to be clearly stated, presenting all the relevant facts necessary to gain an understanding and allow scrutiny.

12.79 Despite the importance of multilateral activities to Canadian foreign policy, we found that information justifying these activities and the related expenditures is not clearly disclosed. There are no clear links between resources, activities, results and the impacts of those results, making parliamentary scrutiny difficult.

12.80 First, total costs are not provided. Data on resources allocated to multilateral activities by the Department itself, and by other departments, are not being compiled by the Department of External Affairs. Second, information on the nature of multilateral activities is limited. Third, there is little information on outcomes and results. Fourth, there is limited evidence of the extent to which Canadian foreign policy and other objectives have been, or will be, met through multilateral channels.

12.81 The Department reports mostly on events that will take place, or have taken place, such as major conferences, elections and appointments, and signing of treaties, as it views these as outcomes of its policies. However, the relevance of these events to furthering Canadian objectives is not stated. The following are examples of activities reported as significant accomplishments for 1989-90:

• Canada participated in the Third Summit of Heads of State of La Francophonie in Dakar and in the first Francophone Games in Morocco;
• noted Canadian environmentalist appointed to the post of Secretary-General of the UN Conference on Environment and Development;
• participated in the preparation of the International Labor Organization Convention #169 on Indigenous and Tribal Peoples.

12.83 Better information is needed for parliamentary scrutiny. Parliament is not provided with a realistic picture of Canada's participation in international organizations seen by the Department as relevant to furthering Canada's foreign policy objectives. One way of achieving this would be to provide Parliament, on an annual basis, with in-depth information on the Department's participation in, say, three to five different organizations. Information on costs, activities, results and the impact of those results should be reported so that proper scrutiny can take place. Such information would assist in building a stronger consensus in the country about Canada's role, foreign policy objectives and choice of options for program delivery. At present, media information on inefficiencies and waste within certain international organizations may undermine the public perception of the value of multilateral co-operation to Canada.

12.84 The Department should provide better information to Parliament to justify its use of resources for participation in international organizations in terms of the extent to which Canada is meeting its foreign policy objectives through multilateral channels.

Department's response: We agree in principle. However, we believe that links between resources devoted to multilateral activities, results and the impact of those results are not identifiable. As such, resource utilization cannot be justified on this basis. Furthermore, we believe that Parliament should indicate what information it needs, and how it is needed.

Conclusion

12.86 Every year competition for public funds increases and the demand for funds to finance additional activities expands. New global issues emerge, while many existing problems remain unresolved. The Department needs to adapt its management practices to the current fiscal realities. These realities are calling for hard choices and a more focussed management approach. We believe that the Department's management practices relating to multilateral activities should be more businesslike.