1 Lecture 10: CANADIAN POLITICS: BUILDING THE NATION STATE SOSC 152

2 KEY POINT: A.HISTORY: A Colonial society and a peaceful revolution B.SOCIO-ECONOMIC DEVELOPMENT: External Economic Linkages C. POLITICAL DEVELOPMENT: Important role of the state

3 A. HISTORY: A Colonial society emerges through a peaceful revolution 1.Originally settled by French (1534), first colony in 1605, next 150 year 10,000 French immigrants 2.7 Years War between British and French, 1759 British take Canada

4 3.Homeland to those who fled a Revolution (1776) After American Revolution, 40,000 United Empire Loyalists settle in Upper Canada (Ontario) with 90,000 French already in Lower Canada (Quebec). 4.Quebec Act, 1774, British allow French culture and customs to survive -- end of effort at assimilation , creation of Upper and Lower Canada, with different legal and land systems , rebellions in both places against British and ruling classes put down.

, Act of Union, puts two parts together, with one parliament, but two languages. 8."Fear of absorption" as motivating force for emergence of independent country. U.S. after Civil War had powerful army searching for a mission British unwilling to fight to defend Canada 1867, British North America Act (BNA) creates Canada, with many powers still resting with British government, four original provinces.

6 9.Close ties to Britain even after independence: Slow development of legislative and judicial autonomy first autonomous international treaty in 1921, Halibut Treaty with US 1949, establishment of Canadian Supreme Court, British government no longer highest court of appeal 10. slow expansion of territory, with 1949 joining of Newfoundland.

Repatriation of the Constitution establishment of autonomous region for native peoples, Nunavut, leaving 10 provinces, two territories and one autonomous region

8 B. SOCIO-ECONOMIC DEVELOPMENT: External Economic Linkages 1. Canadian economy relatively small in earlier years, small population, very spread out, shortage of capital, dependent on exports of raw materials, even today. critical function of state to use economy to unify the country 2.Canadian economy as neo-colonial economy linked by exports to external governments close links between ruling class and external economic and political powers after 1950, close ties to U.S. economy, puts national identity under threat

9 3.National Policy -- key government role after Confederation to promote economy part of BNA Act to build "Transcontinental Railway" part of Canadian symbolism and myths, the driving of last spike , railroads, Western migration, protective tariff to enforce trans-Canada development and undermine North-South economic links laws favoured economic interests in Eastern Canada, source of capital and manufacturing 4.Western Migration: opened prairies to European immigrants who established independent farming class which competed with monied interests in East. in 1930s became roots of new semi-socialist political party

10 5.Impact of Tariffs promoted foreign direct investment and high rate of foreign ownership of branch plants 6.U.S.-Canada Economic Relations and Growth of Dependency before WWI, over 70% of FDI from Britain, after WWII over 70% of FDI from US great imbalance in role of the two economies in each other's economy

11 Asia-Pacific Export Matrix, 1988

12

13 Imports and exports of goods on a balance-of-payments basis

14 IN 1986, US accounted for 60% of Canadian exports, 69% of imports IN 1986 Canada accounted for 17% of US exports, 18% of imports Sectoral breakdown shows major controls of Canadian economy by US. In 1988, US control: 54% of oil and gas industry 58% of chemicals 70% of petrochemicals 41% of mining and smelting 42% of manufacturing 80% of all foreign investment in Canada

15 The Growth of Public Expenditure and government Revenues as Proportions of GNE – Selected yeas

16 C.POLITICAL DEVELOPMENT: Major role for the State 1. Dual role of State: promote economic development and perform welfare function results partly from MacDonald's National Policy also result of decentralization, and provincial efforts to confront central government, develop provincial economy and interests

17 The Growth of Public Expenditure by Level of Government, as Percentage of GNE – Selected Years,

18 Government Revenues by Level of Government, as Percentage of GNE – Selected years,

19 2. Ideological acceptance of role of state (as compared to Lockean view in US of no state role) upper classes willing to use state to promote their interests, economic protection, tariffs strong working class demands after Depression (1930s-1940s) lead to socialist welfare state in 1950s and 1960s. 3. Crown Corporations: Ontario Hydro (1906), Canadian National Railway Canadian Broadcasting Corporation-1930s Air Canada, PetroCanada,