I think one of the things that the financing provided by a Canadian DFI could focus on is sectors, activities, and projects that are particularly labour-intensive and that really do require large-scale involvement by people, in either their realization or their day-to-day conduct.
When we look at the history of development across the last 200 years or so, no country has moved into the middle income ranks without basing, from its early stage, development in agriculture and then very labour-intensive manufacturing, and then later in some more sophisticated and higher-tech industries. I think we need to look at those sectors as some of the places that can be most likely to generate jobs in low-income countries and that provide the stepping stone upward to higher value added.
When we look at the history of development across most of east and southern Asia, we have seen what some economists call the flying geese model of development, where early developing areas have seen wages go up to the extent that some of their activities are no longer affordable. They then move to other neighbouring areas that have a greater supply of labour, more unemployed people, and as a result, lower wages.
We continue to see those shifts, whether it's from China's coastal regions that have become relatively high wage, moving some industry inland where wages are lower, or moving some of their activities to neighbouring countries like Bangladesh or Burma, or in some cases, into lower income countries in Africa as well. That kind of chain, or moving geese pattern—where rather than trying to jump multiple rungs up the ladder too quickly, but instead focusing on a deliberative process of moving up the value chain—I think is one of the best ways that we've seen over decades to create jobs.
At the same time, we need to ensure that basic labour rights and basic standards in the conditions of those working environments are respected. Those should not be ways in which countries or companies compete on cost, and that's where we can play a substantial role through our engagement through multilateral bodies to ensure that's the case.