|
"From the voice of the united Right: 'a Conservative takeover - of the government' " by Stephen Harper In his March 20 acceptance address at the Conservative leadership convention, Stephen Harper immediately repositioned the united Right closer to the centre of the political spectrum, where elections are generally won in Canada. In addition to the party’s base of social and economic conservatives, he invited Red Tories, multicultural communities and all regions, including Quebec, home of “Canada’s founding language,” to give the resurgent Tories a good look in the coming election. "« Nous sommes prêts » : un an après" by Michel C. Auger Considering their performance during their first year in power, it is justifiable to ask whether Jean Charest’s Liberals were really “ready” to govern as they claimed to be last year during the election campaign. Many of their difficulties can be explained by their misinterpretation of their victory, notes Michel C. Auger. They took it as a given that the support they received at the ballot box also signalled support for their program. Quebecers were certainly offered a turn to the Right, he admits, but that was the ADQ option. The most controversial measures of the Liberal program were not part of the message they put forward over the course of the campaign, and Quebecers voted for a party that presented itself as centrist and moderate, an alternative to the PQ. What they got was a conservative government determined to reduce the size of the state, which proved to be a difficult task considering voters’ expectation. The lack of experience of the ministerial team, exacerbated by communication problems, complicated the premier’s task. With referendums on mergers expected in the next few weeks, in addition to a round of negotiations with the public sector unions looming, the coming months threaten to be no easier than the first few for Premier Charest. "Hourglass federalism - how the feds got the provinces to run out of money in a decade of Liberal budgets" by Thomas J. Courchene Paul Martin’s landmark budget of 1995 cut federal funding for health care and other provincially delivered entitlements in such a way that Ottawa was able to balance its books while the provinces saw health costs rise to increasingly unsustainable levels — in many cases now approaching half their budgets. The 1995 cuts, suggests Tom Courchene, “compromised every provincial program except health care, since gutting medicare would spell certain electoral defeat.” Meanwhile, after balancing the books in 1997 and presenting surpluses ever since, Ottawa has used the fiscal dividend to move into areas of exclusive provincial jurisdiction, such as cities and education, while the cash-starved provinces look on, helpless to spend any new money in their own constitutional domains. “The cities fully welcome these initiatives,” Courchene writes, “because the provinces are effectively broke.” He concludes: “While none of this was part of a grand design, Machiavelli would be proud.” "More health care, less equalization: Ottawa's sleight-of-hand surplus" by William Watson Ralph Goodale kept Ottawa’s promise of $2 billion in additional health care funding for the provinces, even as Ottawa took back $2.3 billion from them in reduced equalization payments. Ottawa giveth and Ottawa taketh away. “It’s nicer to get $2 billion than not,” writes economist William Watson, “but it would be nicer still if you hadn’t paid for it yourself.” Co-editor of a new book, Is the Debt War Over?, which suggests a target of 25 percent debt-to-GDP ratio, Watson understandably applauds Goodale setting exactly that objective over 10 years, but wonders if it can’t be achieved sooner. Reducing the debt-to- GDP ratio from 44 percent in 2002-03 to 25 percent over the next decade actually means slowing the current pace of debt reduction by between a third and a quarter.” "The dark side of debt reduction" by Jim Stanford While consumer debt now exceeds disposable income in Canada, public sector debt is now treated “as the eighth deadly sin,” writes economist Jim Stanford of the Canadian Auto Workers. While consumers ran up $50 billion of debt last year, more than the largest ever federal deficit, Ottawa continues to pay down debt out of the fiscal dividend. It is doing so in the 2004 budget not so much for economic as for political reasons — the Martin government, in the fallout from the sponsorship scandal, wants to be seen as a good manager of public finances. But its target of reducing the debtto- GDP ratio to 25 percent over 10 years can likely be met “by doing absolutely nothing except balancing the books.” Sooner or later, with a diminishing debt burden, Ottawa might be compelled to run deficits just to meet its debt ratio targets. It’s all politics and perception. But like Star Wars, it has a dark side. "Une véritable politique de réduction de la dette… qui fait fi des difficultés des provinces ?" by Marcelin Joanis The great merit of the federal budgetary approach is its prudence, rather than its repayment of the debt. By this token, the first Goodale budget pursued a proven recipe, and that is what makes the objective of bringing the debt-GDP ratio down from 48 percent to 25 percent in 10 years seem a realistic one. Nevertheless, says Marcelin Joanis, this federal balance sheet represents only a part of the country’s pubic debt problem. Though the federal performance should be applauded, it would be premature to celebrate because the situation in the provinces is worrying. This discrepancy illustrates the limits of a federal budgetary policy conducted in a vacuum, and raises pressing questions about the state of Canadian federal institutions. If we don’t involve the provinces in the broader policy issues of the federation, there is a serious risk that we will see federal finances veer off track again, this time in the provinces. And while waiting for a new round of talks, the latter should think very carefully before selling off their public assets in an attempt to regain control of their finances. "The demise of Canada's armed forces: both exaggerated and ongoing" by Lawrence McDonough The demise of Canada’s armed forces has been predicted for decades. While their strength has declined by one-third since the first Gulf War in 1991, and much equipment needs to be replaced, Canada has still managed to deploy significant forces to Afghanistan, Bosnia and, most recently, Haiti. “It is clear that there has been a peak demand for the operational capabilities of the Canadian Forces, particularly with the sizable contribution being made to the War on Terror and that this peak demand cannot be sustained,” writes Lawrence McDonough of RMC. Nevertheless, and notwithstanding demands from defence advocates for huge new investments in the military, the author asserts that defence needs and the national interest can be met by additional spending of only $1 billion a year beyond the current $13.2 billion. Unfortunately, in the Martin government’s first budget, only an additional $300 million was committed for 2004-05, mostly to fund ongoing overseas missions. "Same old, same old - the environment as science and technology strategy" by Debora L. VanNijnatten From an environmental perspective, the first budget of the new Martin government was not very different from all the old Martin budgets under the former Liberal government. The Liberal approach to environmental issues is to seek science and technology benefits linking innovation to sustainable development. While especially applicable to climate change, the budget was conspicuously silent on Kyoto, perhaps because of the Liberals’ sensitivity to the west in a pre-electoral period. For the rest, the budget focuses on “a commitment to innovation and environmental technologies via increased funds for science and technology envelopes,” writes political scientist Debora VanNijnatten, a close observer of environmental policy. For those with memories of Paul Martin’s promise as Liberal environmental critic and advocate of sustainable development, his first budget as prime minister is a disappointment. "The post-secondary education package is good news for students" by Alex Usher The Goodale proposals relating to access to education amount to the largest reform of Canada’s system of student support since the Canadian Opportunities Strategy of 1998, and they represent progressive and innovative steps, says the vice-president of the Educational Policy Institute, Alex Usher. The improvements brought to the Canada Student Loans will make the existing system fairer to lower-income students and more accessible to middle-class families. Moreover, since decisions regarding PSE are often made early on in a child life, the creation of the Canada Learning Bonds is a very promising policy to help improve Canada’s record in ensuring equality of access to PSE, especially university, by changing low-income parents’ long-term views about PSE. Yet, to be deemed effective, Ottawa will have to address two potentially important problems: the negative interaction between the Learning Bonds and provincial welfare programs, and the large windfall gain for the financial institutions. Still, concludes Usher, this budget deserves to be remembered as a good day for students. "A modest proposal for dealing with deficits" by Joseph Heath [summary not available] "An elected Senate: key to redressing the democratic deficit, revitalizing federalism" by Tom Kent The establishment of the Council of the Federation by the premiers is an assertion of power without responsibility. The key to revitalizing Canadian federalism is an elected Senate, where provincial representatives would become democratic voices in managing the federation. An elected Senate would also redress the democratic deficit. There is no need for a constitutional amendment to get it done — the prime minister could simply agree to name senators duly elected to fill vacancies in their provinces. With two vacancies and 11 senators scheduled to retire this year, the PM could move quickly and impressively in this direction. All he has to do is relinquish his patronage power. The lack of a representative second chamber, substituted by patronage, remains one of the glaring inadequacies of Canadian federalism. Tom Kent, one of the architects of co-operative federalism as senior policy adviser to Prime Minister Pearson, votes for Senate reform as the best means of giving a meaningful voice to the provinces and cities, in a revitalized Canadian federation. "Conseil de la fédération : du réflexe de défense à l'affirmation partenariale" by André Burelle The announcement of the creation of the Council of the Federation by the provincial premiers left hanging the whole question of the objectives and the exact nature of this new institution. Yet, if they do not to make it a true interprovincial body that is able to provide cohesion to the Canadian union through the imposition of minimum standards and common goals based on joint decision-making, argues André Burelle, the council will merely be a embellished form of the common front strategy that has been practised unsuccessfully for years. For Canada to move towards a multinational federalism, the provinces must first be recognized as sovereign governments, and if it is properly designed, the Council of Federation could allow this to occur. But, to be taken seriously, the provinces will have to show that they are capable of guaranteeing by their own means the integrity of social programs presently ensured by the federal spending power. Only when they rid themselves of their “junior” government image will they be able to open the door to the federal government and consider the creation of a federal-provincial council to manage interdependence. "Canada's FDI experience: what kind of host are we?" by Walid Hejazi Canada has been transformed from primarily a host economy for foreign direct investment (FDI) in the 1970s to an important home country — by 1997, Canada had more outward FDI than inward. Furthermore, the ratio of Canada’s outward to inward FDI continued to increase through 2002. The data presented here point out a dramatic asymmetry in Canada’s inward versus outward FDI positions. Although services FDI are the largest and fastest growing FDI on the outward side, it is manufacturing that is dominant on the inward side. The major factors that help explain these trends include Canada’s levels of corporate taxation, R&D expenditures, the NAFTA, as well as Canadian restrictions on FDI into its financial industry. In an article reporting the conclusions of a study for Industry Canada, Walid Hejazi of the Rotman School of Management at the University of Toronto presents a timely analysis of the composition of Canada’s FDI by industry and Canada’s transformation from a host to inward FDI to a home of outward FDI. "Anti-use campaigns and resource communities: the consequences of political correctness" by Heather Myers and Tracy Summerville The growth of anti-use campaigns, particularly anti-harvesting movements against trapping, sealing and logging, has had profound effects on Canada’s aboriginal and northern resource-based communities. Inuit communities in the NWT and Nunavut saw their way of living, and way of life, devastated by the anti-sealing campaign that destroyed the market for all seal products. The consequences were not only economic, “as self-supporting communities were reduced to welfare dependency, with a staggering suicide rate...” assert the authors, professors at the University of Northern British Columbia. The trapping industry was the next target, with “resource harvesters portrayed as brutal and savage, unsuited to the modern world.” Similarly, many BC communities, and the provincial government, depend on the forestry industry, which is constantly under attack from ecological and environmental interest groups. Heather Myers and Tracy Summerville examine the economic and social consequences of politically correct anti-use campaigns. Book Excerpt: La compétence civique by Henry Milner Over the past few years, several provinces as well as the federal government have contemplated reforms to the electoral system to counter declining voter turnout in Canada. But, according to Henry Milner, simply reforming the institutions will not suffice, because the strength of civic engagement also depends on citizens’ levels of civic literacy and political knowledge. In La compétence civique, a comparative analysis and exhaustive study of existing practices in 15 countries, Milner shows that in those communities where civic literacy are strongest, participation in political life is more active and better informed. He also emphasizes that the level of civic literacy is critical for the future and adaptability of the welfare state. Taken from chapters 11 and 13 of Milner’s book, this excerpt illustrates how civic skill sets off a virtuous circle that encourages not only political participation, but also the emergence of a more equitable society, a society "based on sustainable well-being." An original and provocative thesis, at a time when everywhere, to varying degrees, the role of the state and the best way to marry social progress and economic growth are being debated. Book Review: Pierre Emmanuel Paradis reviews La compétence civique by Henry Milner [summary not available] Book Review: Michael D. Behiels reviews The Lawmakers: Judicial Power and the Shaping of Canadian Federalism by John T. Saywell [summary not available] |
