Annual Report 2008 the Montreal Economic Institute (Mei) Is an Independent, Non-Partisan, Non-Profit Research and Educational Organization
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ANNUAL REPORT 2008 THE MONTREAL ECONOMIC INSTITUTE (MEI) IS AN INDEPENDENT, NON-PARTISAN, NON-PROFIT RESEARCH AND EDUCATIONAL ORGANIZATION. THROUGH STUDIES AND CONFERENCES, THE MEI INFORMS PUBLIC DEBATES IN QUEBEC AND CANADA BY SUGGESTING WEALTH-GENERATING REFORMS BASED ON MARKET MECHANISMS. BOARD OF DIRECTORS STAFF (on December 31, 2008) (on December 31, 2008) HÉLÈNE DESMARAIS MARCEL BOYER Chairman of the Board Acting President Vice President and Chief Economist Board Members DANIEL AUDET ANDRÉ VALIQUETTE ÉRIC BOYKO Director of Communications MARCEL BOYER LÉON COURVILLE FRANCIS DUMOUCHEL, Publications Coordinator STÉPHAN D. CRÉTIER GILLES GUÉNETTE, Webmaster MARCEL DUTIL, C.M. BENNIE PETKOVA, Events Assistant DONALD J. JOHNSTON MYLÈNE PROVENCHER, Communications Assistant DR LÉO-PAUL LANDRY KATHERINE VANDA, Development Coordinator BERNARD LORD JEAN-PIERRE OUELLET ADRIEN D. POULIOT YVES RABEAU JEREMY H. REITMAN Institut économique de Montréal 1010, Sherbrooke Street West, Montreal (Quebec) H3A 2R7 Phone 514 273-0969 Fax 514 273-2581 Web www.iedm.org MESSAGE FROM THE CHAIRMAN OF THE BOARD e are experiencing development, at a time when fundrais- the shock of a major ing is far from easy. I join all members financial crisis and a of the board of directors in wishing him worldwide economic a happy return and assuring him of our recession. Although full support as he takes up Wsome government action may well have this challenge. been needed, the Montreal Economic Institute (MEI) is far from convinced I also wish to thank Marcel that the rampant Keynesianism we are Boyer, vice president and seeing is necessarily the best way out of chief economist, who filled this crisis. This makes it all the more in as acting president for crucial for independent think tanks several months. such as the MEI to present a range of viewpoints as these major political and The MEI is financed essen- economic debates advance. tially by private donations from foundations, busi- With Paul Daniel Muller’s departure nesses and individuals. To from the MEI presidency in July 2008 ensure its independence, after a 22-month tenure marked by the MEI solicits no govern- many fine achievements, the board of ment financing. After all, its directors decided on a sure bet. We role consists of analyzing HÉLÈNE asked Michel Kelly-Gagnon to pick up and sometimes criticizing where he left off following his success in government decisions. Furthermore, it DESMARAIS leading the Institute’s development conducts no sponsored research for the from 1999 to 2006. Michel agreed in benefit of any particular company or November 2008 to return but took up group. his duties only in February 2009 so that he could give adequate notice to the Continuous support from our donors is Conseil du patronat du Québec (CPQ). what has enabled the Montreal Eco- nomic Institute to become what it is Michel headed the CPQ, Quebec’s today. The volume and quality of the biggest employers’ organization, over MEI’s activities depend on its ability to the last three years. He is a dynamic finance itself. In December 2008, the and enthusiastic leader with a keen MEI was ranked tenth among 148 think understanding of the issues contribut- tanks in the quality of its work by the ing to economic growth in Quebec and University of Pennsylvania’s Depart- across Canada. His experience as ment of International Relations. The president of the MEI for nearly seven think tanks that ranked higher all have years, together with his role as the main substantial resources, anywhere from spokesman for Quebec business, was a two to 50 times those of the MEI. I thus decisive factor in favour of his candi- urge you to maintain your support for dacy. His extensive network of contacts one of the most influential think tanks will be a major asset for the Institute as in Canada and in the entire French- it moves on to a new stage in its speaking world. annual report 2008 1 MESSAGE FROM THE ACTING PRESIDENT wo of the main criteria or, if you prefer, 11 ideas for creating for assessing the impact wealth in Quebec. Each proposal was of a think tank such as discussed extensively on radio or TV; the Montreal Economic this included comments from govern- Institute (MEI) are the ment ministers. Among these ideas Trelevance of its publications and their were instituting performance-based influence. In both regards, we are pay for civil servants, raising electri- very proud of 2008. city prices and lowering taxes by $800 per family for each one-cent The MEI published 16 Eco- rise per kWh, and creating 25 charter nomic Notes or Research schools to deter early dropouts with Papers, held nine public an elite corps of teachers hired for events and took part as their skills. speakers or panelists in 29 events organized by On November 1, exactly a year before other groups. The MEI got Montreal’s municipal election, the 2,359 mentions in the MEI, with Le Journal de Montréal, media, which in no way published “Dix chantiers pour faire runs counter to our repu- de Montréal une vraie métropole” tation in some circles of (10 projects to make Montreal a real being the most over- metropolis). These proposals for exposed source in Quebec. revitalizing Montreal led to many We happily accept this debates in the following days, in honour! particular an exchange between the mayor of Montreal and the muni- MARCEL Let me remind you of a cipal opposition leader. Our propo- few interesting points. sals included increasing Montreal’s BOYER fiscal autonomy, developing medical tourism, and enhancing the housing TWO MAJOR MEDIA stock by selling public housing and SUCCESSES giving poorer families a broader choice where to live. The two following projects show that the MEI is regarded by the media as a reliable source of original ideas for SPREADING THE WORD: reforming public policy. A MAJOR INFLUENCE At the request of Le Journal de Montréal Opinion pieces by MEI economists, as and Le Journal de Québec, the MEI well as reports and comments on the prepared a supplement titled “Onze Institute’s studies, appeared in 70 daily idées pour secouer le Québec” newspapers in Quebec and across (11 ideas for shaking up Quebec) – Canada, including all the important annual report 2008 2 MESSAGE FROM THE ACTING PRESIDENT papers. We published 79 different op- The Young Leaders program lets Carole Beaulieu, editorialist, eds in 153 newspapers or websites. future opinion leaders debate public L'actualité - November 15, 2008 MEI economists and executives gave policy. Three seminars each brought La publication de ce palmarès fait 572 interviews, totalling nearly 17 hours together about 15 students and entrer le Québec dans le club des États où plus d’un classement d’écoles est of radio time and over 19 hours of TV young professionals. publié chaque année. (…) Nous avons time. Visits to our website are conti- opté pour le classement de l’IEDM, nuously on the rise, with 480,539 uni- parce qu’il offrait un regard plus que visitors and almost three million IDEAS THAT ARE approfondi et plus novateur sur la pages downloaded. MAKING HEADWAY performance des écoles. The readership and audience of the Crises James Mennie, columnist, media associated with our mentions Addressing the world food crisis and, The Gazette - June 6, 2008 Perhaps the most eloquent argument totalled 647,412,517, up 16% from more recently, the financial crisis, we against Montreal's erecting bridge tolls 557,759,593 in 2007. These figures published a number of Notes and to finance its own transit network indicate possible meeting points op-eds, and we gave hundreds of didn't come from a politician or between the MEI and readers, liste- interviews exposing the harmful disgruntled motorist but an economist. ners or viewers. This new measure- effects of protectionism and regula- In March of this year, Mathieu Laberge ment helps capture the scope of the tion. We also held a debate between examined the viability of a return to media covering us. Charles Sirois and Jean-Luc Landry tolls on Quebec's roads and highways on foreign takeovers. in a paper produced for the Montreal Economic Institute. ORIGINAL IDEAS Financial system Henry Aubin, columnist, We held two events, including one in The Gazette - April 5, 2008 To reach the public more effectively, Toronto, to debate the structure of [Marcel] Boyer is that rarest of we produced economic information securities commissions. Subsequently, Montreal economists. He regularly newsflashes explaining economic in the National Post and La Presse, we makes jargon-free observations on a statistics in simple terms. Ninety-six published a position that combines broad range of topics relevant to the different newsflashes were published the advantages of the current passport city (…) Now, in a paper published by the Montreal Economic Institute, of in 2008 in the Métro newspaper and system with the federal proposal for a which he is vice-president, he pitches in about 20 weeklies belonging to the single commission. a way to head NIMBY off at the pass. Quebecor group. Tax issues Alain Dubuc, columnist, The George Petty Entrepreneurial MEI economists suggested raising La Presse - March 5, 2008 Ideas essay contest aims to encou- the Quebec sales tax by two points L'Institut économique de Montréal rage the emergence of innovative and lowering income tax by $2 billion, joue souvent un rôle de mouche du solutions. The second edition of the as well as abolishing the capital tax coche. Cet organisme de recherche indépendant, qui défend les valeurs contest led to publication of a paper immediately and making equivalent d'une économie de marché, pose des on water as a strategic resource for cuts in unproductive business subsidy questions que le Québec, bien confor- Quebec’s economic development.