Oil, Politics and Public Policy: A case study of Newfoundland and Labrador Presented by Scott Reid, PhD (
[email protected]) and Jeff Collins, PhD (candidate) (
[email protected]) Canadian Political Science Association Edmonton, June 2012 1 Abstract Oil, Politics and Public Policy: A case study of Newfoundland and Labrador Oil has been seen as both a blessing and a curse. This paper explores the impact which the oil industry has had on politics and public policy in Newfoundland and Labrador. It applies the concept of the “Paradox of Plenty” (Karl, 1997) to the situation in Newfoundland and Labrador. The “Paradox of Plenty” is that sudden riches from natural resource development often alter not only the economy of the state, but also government institutions, in ways which are often detrimental to the long term development of the producing jurisdiction. Policy documents, media reports, statements by politicians, exchanges in the House of Assembly and various other sources are used to construct an overall understanding of the impact on politics and public policy in the province. Comparisons are made to other oil producing jurisdictions including: Alberta, Norway and Scotland. The paper identifies alternative development strategies available to the province based on an analysis of oil development in these other jurisdictions. 2 Introduction The random events of nature that placed oil and gas off the coast of Newfoundland and Labrador began hundreds of millions of years ago (Deffeyes, 2009; Downey, 2009). Sunlight beamed down upon the ocean and started a process that would eventually result in the oil that we use today.