Jim Flaherty Calm in a Storm
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JUNE 2014 Jim Flaherty Calm in a storm Stanley Hartt says credit is due to Jim Flaherty for keeping Canada insulated from the worst effects of the Global Financial Crisis A look back at Jim Flaherty’s message to students about the importance of public service Also in this issue: Elaine and Jeremy Depow on how to be competitive in the Internet economy; Richard Remillard calls for a Financial Innovation Institute; Dwight Newman on the uses and limits of the ‘duty to consult’ doctrine; Ian Lee and Vijay Jog examine income inequality data; Ken Coates and Greg Poelzer call on governments to invest in improving conditions in ‘provincial Norths’; Carin Holroyd calls for a national digital content strategy; Chrystia Freeland examines Canada’s influence abroad; and commentaries on natural resources, Senate reform, spam and the emerging pressures on Canada’s health care system Published by the Macdonald-Laurier Institute Brian Lee Crowley, Managing Director, [email protected] PublishedJames Anderson, by the Macdonald-LaurierManaging Editor, Inside Policy Institute Brian Lee Crowley,Contributing Managing writers: Director, [email protected] James Anderson, Managing Editor, Inside Policy Thomas S. Axworthy Tom Flanagan Paul Kennedy Geoff Norquay Thomas S. Axworthy ContributingAndrew Griffith writers: Benjamin Perrin Donald Barry Chrystia Freeland Audrey Laporte Benjamin Perrin Ken CoatesDonaldThomas Barry S. Axworthy Guy GiornoStanleyAndrew H. GriffithHartt Ian Lee BenjaminMike PriaroPerrinMike Priaro Brian Lee Crowley Stephen Greene Meredith MacDonald Richard Remillard Donald Barry Stanley H. Hartt Mike Priaro Laura DawsonKen Coates Andrew GriffithPaul KennedyJanice MacKinnon Colin RobertsonRobin V. Sears Elaine Depow Stanley H. Hartt Linda Nazareth Munir Sheikh Brian Lee KenCrowley Coates AudreyPaul LaporteKennedy ColinRoger Robertson Robinson Jeremy Depow Carin Holroyd Dwight Newman Alex Wilner Brian Lee Crowley Audrey Laporte Roger Robinson Carlo Dade Ian Lee Robin V. Sears Past contributors: Carlo Dade Mary-Jane Bennett, CarolynIan Lee Bennett, Massimo Bergamini,Robin V. Ken Sears Boessenkool, Brian Bohunicky,Laura Dawson Scott Brison, Derek Burney,Janice Catherine MacKinnon Cano, Michael Chong , DanMunir Ciuriak, Sheikh Scott Clark, Philip Cross, LauraCeline Dawson Cooper, Andrew Davenport,Janice PeterMacKinnon DeVries, Brian Dijkema,Munir Don SheikhDrummond, GuyJohn Giorno Duffy, Patrice Dutil, JosephLinda Fantino, Nazareth Daniel Gagnier, Dean Karalekas,Alex WilnerTasha Kheiriddin, JeremyGuy Kinsman, Giorno Steven Langdon, BradLinda Lavigne, Nazareth Velma McColl, Ted Menzies,Alex Wilner Robert P. Murphy, Stephen Greene Geoff Norquay Stephen GreenePeggy Nash, Jeffrey Phillips,Geoff John Norquay Thompson, Gil Troy, Michael Watts. Production designer: Renée Depocas Past contributors:Past contributors: Mary-Jane Bennett, Carolyn Bennett, Massimo Bergamini, Ken Boessenkool, Brian Bohunicky, Scott Brison, Mary-Jane Bennett, Carolyn Bennett,Cover Massimo photo: Bergamini, Jake Wright Ken Boessenkool, Brian Bohunicky, Scott Brison, Derek Burney,Derek Burney,Catherine Catherine Cano, Cano,Dan Ciuriak, Dan Ciuriak, Scott Scott Clark, Clark, Philip Philip Cross, Cross, Celine Celine Cooper, Cooper, Peter DeVries,DeVries, Don Don Drummond, Drummond, John John Duffy, Duffy, PatriceCorrection: Dutil,Patrice Joseph Dutil, An incorrect Fantino,Joseph Fantino,photo/caption Daniel Daniel Gagnier, combination Gagnier, Brad Brad Lavigne, was Lavigne, published Tasha Tasha inKheiriddin, Kheiriddin,the print version Jeremy Jeremy of Kinsman, our April Steven Steven2014 Langdon,issue Langdon, (article Velma Velma by StanleyMcColl, McColl, Hartt, page 4). We apologize for the error. The online version of the April issue of the magazine shows the correct photo and caption. Ted Menzies,Ted Menzies, Robert Robert P. Murphy, P. Murphy, Peggy Peggy Nash, Nash, Gil Gil Troy, Troy, MichaelMichael Watts.Watts. The contributorsThe contributors to this topublication this publication have haveworked worked independently independently and and are are solely solely responsible for for the the views views presented presented here. here. The opinionsThe opinions are not are necessarily not necessarily those those of the of theMacdonald-Laurier Macdonald-Laurier Institute, Institute, its DirectorsDirectors or orSupporters. Supporters. Inside Policy is published six times a year by the Macdonald-Laurier Institute. The contents of the magazine are copyrighted, Inside Policy is published six times a year by the Macdonald-Laurier Institute. The contents of the magazine are copyrighted, but may be re-produced with permission in print, and downloaded free of charge from the MLI website: macdonaldlaurier.ca but may be re-produced with permission in print, and downloaded free of charge from the MLI website: macdonaldlaurier.ca For advertising information, please email: [email protected] For advertising information, please email: [email protected] Subscriptions: $39.95 per year; single issue, $6.95. | ISSN 1929-9095 (Print) | ISSN 1929-9109 (Online) Subscriptions: $39.95 per year; single issue, $6.95. | ISSN 1929-9095 (Print) | ISSN 1929-9109 (Online) The Macdonald-Laurier Institute is grateful to Intuit Canada for their support of Inside Policy magazine. The Macdonald-Laurier Institute is grateful to Intuit Canada for their support of Inside Policy magazine. Inside Policy: 8 York Street, Suite 200, Ottawa ON, Canada K1N 5S6, PH; 613-482-8327 Inside Policy: 8 York Street, Suite 200, Ottawa ON, Canada K1N 5S6, PH; 613-482-8327 2 Inside Policy — The Magazine of The Macdonald-Laurier Institute 2 Inside Policy – The Magazine of The Macdonald-Laurier Institute 2 Inside Policy — The Magazine of The Macdonald-Laurier Institute insidepolicy [march].indd 2 14-04-01 10:00 AM insidepolicy [march].indd 2 14-04-01 10:00 AM Editor’s message Contents he end of an eventful – and at times quite 4 Credit where credit is due: emotional – parliamentary session is nearing. An analysis of Jim Flaherty’s response to the Global Financial Crisis Hopefully cottage season will allow time to Stanley Hartt Tdecompress by reading the following insightful public policy analyses and commentaries: 6 Canada needs a Financial Innovation Stanley Hartt explains why late former Finance Institute Richard Remillard Minister Jim Flaherty deserves credit for his steady hand and pragmatic approach as he sought to keep 9 Understanding the Duty to Consult Canada insulated from the worst effects of the Global Dwight Newman Financial Crisis. 11 Is Inequality a problem in Canada? Richard Remillard recommends the establishment of a Financial Innovation Ian Lee and Vijay Jog Institute. 13 The Next Northern Challenge Dwight Newman examines the nature, uses, challenges and limits of the Ken Coates and Greg Poelzer widely misunderstood duty to consult doctrine. Ian Lee and Vijay Jog examine empirical data in a quest to determine 20 Serious Senate reform is our only option whether income inequality is a problem meriting government intervention. Brian Lee Crowley Noting that ‘provincial norths’ may be key to Canada’s economic future, Ken 21 National inquiry not the best response to Coates and Greg Poelzer suggest it is time for provincial and federal governments RCMP report on Aboriginal women to recognize their shared interest in improving conditions in the politically Benjamin Perrin marginalized regions. 23 In search of a National Digital Content MLI’s Brian Lee Crowley highlights the importance of Canada’s natural Policy resource sector – and creating the conditions in which it can thrive. Carin Holroyd Benjamin Perrin eschews the notion of a national inquiry into missing and 29 Regulating spam murdered Aboriginal women but instead calls for a renewed focus on prevention Meredith MacDonald efforts by local police forces and all levels of government. Noting that a great many countries have more advanced digital content policy 32 The Natural Resource Sector: Economic Opportunities, Policy Carin Holroyd frameworks, calls for a national digital content strategy for Canada. Challenges Meredith MacDonald examines the rationale, the challenges and the implica- Brian Lee Crowley tions of Canada’s anti-spam legislation, which is set to come into force on July 1, 2014. 37 How Canada can expand its innovative Arguing that serious constitutional reform is our only option, Brian Lee reach in the digital economy Crowley contends it is possible to limit constitutional changes to Senate reform Elaine Depow and Jeremy Depow and foil provincial demands for broader negotiations. Elaine and Jeremy Depow issue a call to action to industry leaders to work 40 Assessing the 2004 Health Accord Dr. Chris Simpson and Owen Adams with governments to develop solutions that will ensure our future competitiveness in the Internet economy. 45 Canada and Ukraine: Dr. Chris Simpson and Owen Adams examine the legacy of health accords Lessons for our multicultural country in an age of multilateralism and the emerging pressures on Canada’s health care system. Chrystia Freeland Having recently returned from election monitoring in Ukraine, Liberal MP Chrystia Freeland explores the nature and extent of Canada’s influence in the world. 48 Answer the call As a form of tribute, we present the text of a 2011 speech in which the late Jim Flaherty Jim Flaherty spoke to UWO students about the merits of public service. Enjoy your summer! James Anderson, Managing Editor Inside Policy – The Magazine of The Macdonald-Laurier Institute 3 Jake Wright