Issue 6 Vol I, December 31, 2005

analysis

Canada is the second largest country in the world after Russia. It has a grand motto, ‘peace, order and good governance’. It may not look magnificent and inspiring like its  big powerful neighbour , America’s  ‘life, liberty and pursuit of happiness’ , yet its tolerant, multi cultural society where a quarter million people from across the world migrate each year,  is more reassuring as civilized country with the no world power hang ups. Half the population in most of the provinces speaks other than English back home.

These are indeed solid virtues at the political plane, particularly when its economy is booming with a trade surplus of c$ 66 billion dollars with its big neighbour America trotting the globe with guns and bombs has an equal trade deficit. It’s most livable country, promising the citizens and immigrants a share in the wealth. Its economy is booming. Look at its energy supplies; it’s the biggest supplier of oil and natural gas to America, not to mention its rising exports of energy, metals and chemicals to china. It has the largest oil reserve after Saudi Arabia.  Fiscal discipline and advantages from North American Free Trade Agreement [NAFTA] since 1989 and its fast growth in commodities and manufacturing has seen unemployment at the lowest levels in the past 30 years or so. Rising incomes and profits mean more taxes and revenue to the government. It rightly boasts of being a genuine welfare state.

Canada indeed is the only big industrialized country with consistent surpluses in its federal budgets, in its trade and current accounts. This has encouraged the two major political groupings to think of tax cuts and other concessions.

Canada wants to be as its former Haiti refugee and television journalist and now Governor General, Michaelle Jean declared in September 2005, a free and an open country. But somewhere its size and its policies intervene and politics gets fractured?

Its unity is under strain and not by Quebecois but by Alberta, the rich source oil, gas and mineral wealth. In Canada the provinces, part of a loose federation [they can vote themselves out of the federation] own the natural resources. The new found oil, gas and minerals have made Alberta an eye sore for the other provinces. The rocky sandy provinces has a small populace, 3 million of 32 million has rich royalties flowing   from the natural resources. Alberta became a full province in 1905 only and has history of bad blood with the federation and is causing anxiety to the Canadian government and the people.

Alberta which nourishes a grudge since it was obliged to sell oil in the 1980s at less than the market price inside the country. The situation has changed since 1984 when the policy shift changed the law that obliged Alberta to sell at cheap rate. Also, for good results, there has been shift in demography. It share of population has grown from 7.6 per cent to 9.9 per cent as more Canadians have made it their home. This brings more money from the federal kitty and political balance. Alberta Heritage Savings Trust with C $ 12.2 billions in its kitty has been lending at low interests to other provinces. Yet the politics determines the course how Albertans should feel and how other provinces should respond being more Canadians. 

French speaking Quebeckers have been constantly threatening to quit the federation and form their own nation. They were close to doing so in 1980 and again 1995 when separation was rejected by a thin margin-50.6 peer cent to 49.4 per cent. These referendums apart, later pollsters have noted less support for separation.  Also, the separatist Parti Quebecois though gained in parliament, yet lost control of the province to Liberals. There is also Clarity Act introduced in 2000 which makes separation harder. Nevertheless this remains an issue despite French being a respected second language in the country. This dream is unlike to fade in the coming decades, though the present geographic form of Canada may survive.

The Sponsorship Payment Scandal stems basically from the Liberal party’s crude and corrupt attempt to retain Quebecois in Canada in 2003.The kickbacks, some C$1.3 million went into the pockets of some Liberals and their cronies.  This also triggered a political crisis in the country. First the Liberals could not gain majority as the polity got fractured and later the Left wing NDP withdrew support once the commission had established that Liberals were involved deep into sleaze.

NDP has been saying is that there's 30% private money in our healthcare system.  It was 25% five years ago and now it's 30%. “But it's very misleading. That 30% he is talking about is for extended healthcare benefits that are employer-employee funded, dental plans that people have always paid for from their pockets, cost of drugs that people have always paid out of their pockets. That money is being spent to get services that have always been bought through private money.” This is a clear argument from the minister. But health care issue from waiting time and efficiency of services which otherwise is a provincial subject would remain on the national electoral agenda.