When Building Canada Strong, Don’t Forget About Soft Power

Prime Minister Carney wants to build “Canada Strong.” It was his campaign slogan, the central theme of his government’s Throne Speech, and the title of the recent budget. To achieve that goal, the budget outlined investments to kickstart the economy, plans to diversify our trading partners, and an $84 billion increase in defence spending over five years. To ensure Canada will “no longer be defined by the strength of our values, but by the value of our strength,”  the main pillars of our foreign policy will be national security and economic resilience.

As the government advances this agenda, it has neglected two other foreign policy pillars key to our global strength: development and diplomacy. The budget slashed $2.7 billion in foreign aid over four years, while also making deep cuts to Global Affairs’ operating budget. Beyond plans to reduce aid for global health, the government has provided few details of how cuts will be implemented. Given the government’s focus on expanding trade with rich countries and emerging markets, it’s a safe bet that these operational cuts will reduce our diplomatic footprint in low-income and fragile states.  

For a government laser-focused on threats to Canada’s economy, engagement in faraway countries may seem a distraction. Development aid has lost its lustre with critics decrying aid as ‘wasteful,’  self-serving, and neocolonial. In its hunt for savings, Canada’s $10 billion aid budget must have been a tempting – and easy – target.

But was it the right target?

Many low-income states face a bleak outlook. Their economies are stagnant, and they carry unsustainable levels of debt, including to China. Their growth prospects are further hindered by new US tariff barriers and dramatic cuts to aid. Climate change has hit many low-income countries hard, with recurring cycles of severe heat, flooding, and drought. Wars have increased in number and intensity, while geopolitical tensions undermine global efforts to resolve them. 

These crises exact a terrible human toll.  One in ten people worldwide – 840 million – subsist in extreme poverty. A quarter of the world’s population, two billion people, live in contexts of violence and fragility. From 2023 to 2024, the UN estimated that armed conflict killed one person every twelve minutes, with a steep rise in deaths among children and women. And over 123 million people – three times the population of Canada – are displaced by conflict and persecution. 

As life becomes increasingly precarious for billions of people, the rich world has turned its back. Global cooperative action is in tatters. The US has “rejected and denounced” the UN Sustainable Development Goals (SDGs), dissolved USAID, and rescinded USD 4 billion in previously committed assistance. The United Kingdom, France, and Germany have also made cuts to their aid programs. Humanitarian aid is increasingly used as a bargaining chip, and access to civilian populations is denied in many conflicts. Models estimate dramatic increases in future mortality from HIV/AIDs, tuberculosis, and malaria, while humanitarian organisations estimate that cuts in aid have already caused tens of thousands of preventable deaths in emergencies.

Canada has been ominously silent in the face of these crises. At a time of global turmoil, Canada’s G7 Presidency has failed to meaningfully address development and human security. Canada held no development or health ministerial meetings during our Presidency, and the G7 Kananaskis Leader’s Summit did not address the dramatic decline in development assistance or the crisis in multilateral organisations that disproportionately affects low-income and fragile states.

This inaction weakens Canada – and the world. Supporting social and economic development, humanitarian action, and peacebuilding is not just the right thing to do; it’s the smart thing to do. 

First, development aid is an investment in our collective security. The COVID-19 pandemic showed us that we cannot seal ourselves off from the world – pandemics, displacement, humanitarian crises, economic shocks, and transnational insurgency movements will undermine our well-being. The COVID-19 pandemic killed 60,000 Canadians and 14.9 million worldwide, cost the Canadian government hundreds of billions of dollars, exacerbated political polarization, and fueled geopolitical tensions. This impact was not inevitable – it was the result of a global failure to prepare for and effectively respond to COVID-19.  Given the devastating consequences of COVID-19, the budget’s decision to put global health spending on the chopping block is puzzling. 

Second, Canada’s soft power, exercised through our aid and diplomacy, is a key source of Canada’s global strength and influence.  Responsive and effective development assistance elevates Canada’s international credibility, with significant knock-on effects for our diplomacy worldwide. When Canada helps to ‘move the needle’ to improve economic outcomes, save lives, and support peace, we demonstrate that Canada is an effective, reliable, and trustworthy partner. 

And third, a commitment to development improves our foreign policy outcomes by bringing diverse perspectives to the decision-making table. The unchallenged growth of Canada’s defence spending evokes President Eisenhower’s warning about the military-industrial complex. Security experts focus on the symptoms – not the drivers – of instability. With limited experience in low-income countries or humanitarian emergencies, many underestimate the strategic importance of civilian protection, expert diplomacy, and development and humanitarian assistance. 

While unwelcome, the planned budget cuts provide Canada with an opportunity to leverage foreign aid more effectively. Criticisms of the global development industry ring true. Countries and communities must be in the driver’s seat of their own development. National actors, including researchers, universities, civil society organizations, professional associations, entrepreneurs, and governments, should be supported – not supplanted – by external expertise and funding. 

As the government moves forward, three initiatives would align with government priorities, address much-needed gaps, and signal its commitment to building not just a stronger Canada, but a stronger world. 

First, Canada could work to square the circle on security and development. Despite their shared interest in conflict and instability, humanitarian, development, and security practitioners and researchers work in siloes. Suspicion runs deep, in part fueled by the ghosts of Afghanistan and the rise of support for ‘sharp war.’  The silos between defence and development are counterproductive. Canadian troops will be called upon to monitor ceasefires and to support security guarantees for peace agreements. To prepare for these scenarios, the government could use its increased defence spending to support collaboration and dialogue with development and humanitarian practitioners on pressing questions related to international humanitarian law, security sector reform, and peacebuilding.

Second, support for private sector innovation in low-income countries pays off – at the micro level.  However, at the macro level, efforts to leverage private financing for development have been disappointing. Private finance is not equivalent to public investment: it requires an ‘ecosystem’ where various actors work together to identify the barriers to innovation and development. Canada could establish development hubs that combine private sector financing with technical experts and the public sector to prioritize projects for investment and address barriers to innovation. Investment in innovative solutions in low-income countries also yields dividends by supporting entrepreneurship and innovation in Canada.

And third, the government can ensure Canadian diplomacy and aid are more effective, efficient, and focused on results. Canadian agencies working in low-income settings should act as a ‘Team Canada,’ coordinating initiatives to enhance their efficiency. And Global Affairs could ensure that our diplomatic corps has the expertise, experience, and space to take risks, and provide ‘frank and fearless advice’ on how to advance Canadian interests. Gaps in expertise can and should be filled with external deployments, drawing from the deep pool of Canadians with significant international experience. 

Canada faces tough choices in a fiscally constrained environment. Throwing away our proud legacy in development and the protection of civilians shouldn’t be one of them.