Big finance and war to renew their vows in Toronto

Mark Carney has been working assiduously to marry high finance with arms production. The relationship may be consummated at his upcoming CEO summit.

As part of massively increasing military spending, Carney’s government has worked to link government financial institutions to the war economy. Export Development Canada says it has “expanded support for the Canadian defence and security (D&S) sector”. Since ramping up its military focus last year, EDC has provided $2 billion in financing and insurance-related support to defence and security companies, including $1.1 billion to 60 companies this year.

Six months ago, the Crown-owned Business Development Bank of Canada (BDC) launched a $6 billion Defence Platform. The military-focused finance mechanism has already supported 130 Canadian small and medium-sized firms with nearly $1 billion in funds.

BDC President Isabelle Hudon is Canada’s chief negotiator for the new NATO “war bank”, which will be based in a yet to be decided Canadian city. At an arms bazaar just outside of London two weeks, Hudon called on the new UK government to join the Defence, Security and Resilience Bank (DSRB).

One aim of DSRB is to draw large investment agencies like the Ontario Teachers’ Pension Plan and Ontario Municipal Employees Retirement System (OMERS) closer to arms producers. Ditto for Canada’s major commercial banks.

The big six private banks, Teachers’, OMERS and other financial institutions are supporting the war bank. Six of the twelve global banks that sponsored a recent full-page Financial Times advertisement promoting the DSRB were Canadian.

Three of Canada’s big six banks, as well as BDC, have become members of the Canadian Association of Defence and Security Industries (CADSI) this year. When Canadian Imperial Bank of Commerce became the first bank to join the arms industry lobby this year, their senior director of public affairs, Deborah Rowe, told the Globe and Mail it was part of CIBC’s “commitment to advancing the Canadian defence sector.”

On Wednesday defence minister David McGuinty met with officials from the Canadian banks, as well as EDC, BDC and other financial institutions, to “accelerate” the government’s massive Defence Industrial Strategy. In a release headlined “Minister McGuinty brings together industry and investment leaders to accelerate Canada’s Defence Industrial Strategy”, the government notes, “These discussions also support Canada’s broader efforts to attract global investment ahead of the first-ever Canada Investment Summit, which will bring together the world’s leading investors, CEOs, entrepreneurs and business leaders.”

On September 14-15 the CEOs of Blackstone, BlackRock and Barclays, as well as representatives of the UAE and Saudi Arabian investment funds, will join a host of Canadian and other international capitalists for the so-called Canada Investment Summit. On the agenda will be tightening the ties between major financial institutions and arms producers. Think Dwight Eisenhower’s “military industrial complex” on steroids.

A counter summit will be held the day before and a rally at noon beginning at Toronto city hall on September 14.

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