ANNUAL REPORT ENGLISH 2008.Qxp
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2008 ANNUAL REPORT The Board of DIRECTORS OUR PROFILE The C.D. Howe Institute is a leading independent, economic and social policy research David P. O’Brien Chairman of the Board, institution. The Institute promotes sound policies in these fields for all Canadians through its EnCana Corporation research and communications. Its nation-wide activities include regular policy roundtables Steven Parker Chairman and Chief Executive Officer, and presentations by policy staff in major regional centres, as well as before parliamentary CCL Group Inc. committees. The Institute’s individual and corporate members are drawn from business, Michael E.J. Phelps universities and the professions across the country. Chairman, Dornoch Capital Inc. Herbert C. Pinder, Jr. CHAIRMAN Hélène Desmarais Brian K. Johnston, CA President, David A. Dodge, O.C. Chairman and Chief Executive Officer, President, Goal Group of Companies Chancellor, Queen’s University and Centre d’entreprises et d’innovation de Monarch Corporation Senior Advisor, Bennett Jones LLP Montréal Tracy Redies Daniel Labrecque Executive Vice President, VICE CHAIRMAN Marc Dutil President and Chief Executive Officer, Personal Financial Services, HSBC Bank Brian M. Levitt President and Chief Operating Officer, N M Rothschild & Sons Canada Limited Canada Partner and Co-Chair, Canam Group Inc. Osler, Hoskin & Harcourt LLP Richard Legault, CA Aaron Regent N. Murray Edwards President and Co-Chief Executive President and Chief Executive Officer, PRESIDENT AND President, Officer, Barrick Gold Corporation CHIEF EXECUTIVE OFFICER Edco Financial Holdings Ltd. Brookfield Renewable Power William B.P. Robson Donald S. Reimer C.D. Howe Institute Sheldon Elman, M.D. William A. MacKinnon Chairman, President and Chief Executive Chairman and Chief Executive Officer, Past Chairman and Chief Executive Officer, Medisys Health Group Inc. Officer, Reimer Express World Corp. HONORARY DIRECTORS KPMG LLP Joseph L. Rotman, O.C. Robert D. Brown, FCA John T. Ferguson Chairman, Sabi Marwah Chairman and Chief Executive Officer, Roy-L Capital Corporation Marshall A. Cohen, O.C., Q.C. Suncor Energy Inc. Vice-Chairman and Chief Operating Cassels, Brock & Blackwell, LLP Officer, Peter J. George Scotiabank Guy Savard, C.M., FCA Chairman, C. Kent Jespersen President and Vice Chancellor, Merrill Lynch Canada Inc. Chairman and Chief Executive Officer, McMaster University Al Monaco La Jolla Resources International Ltd. Executive Vice-President, Major Bruce Gordon Projects, Brian Shaw John D. McNeil Chairman, Enbridge Inc. Manulife Canada Henry W. Sykes, Q.C. President, Edward P. Neufeld William Morneau Ian Greenberg President and Chief Executive Officer, MGM Energy Corp. Roger Phillips, O.C., S.O.M. President and Chief Executive Officer, Morneau Sobeco Astral Media Inc. Catherine Swift President and Chief Executive Officer, Adam H. Zimmerman, O.C., FCA Eric P. Newell Tim Hearn Chancellor Emeritus, Canadian Federation of Independent Past Chairman, President & Chief University of Alberta Business DIRECTORS Executive Officer, Imperial Oil Limited Alfred G. Wirth Elyse Allan President, President and Chief Executive Officer, Paul J. Hill Wirth Associates Inc. GE Canada President and Chief Executive Officer, W. Edmund Clark Harvard Developments Inc., A Hill Company President and Chief Executive Officer, TD Bank Financial Group CREDITS: EDITOR JAMES FLEMING; ART DIRECTION & DESIGN BY HEATHER VILISTUS; PHOTOGRAPHY BY TOM SANDLER; ROBSON PORTRAIT BY JOY VON TIEDEMANN; PRINTING BY RICOH CANADA INC. A Message from the CHAIRMAN Outstanding Team, Outstanding Achievement No annual compendium can ever cover all the life work and events of an ever- Institute President and CEO Bill busy national organization such as the C.D. Howe Institute. This is particularly Robson and his colleagues swiftly true for the past year, during which the Institute has been exceptionally active. responded with wide-ranging work on 2008 marked the C.D. Howe Institute’s 50th anniversary, a significant credit markets, monetary policy milestone of which the Institute is rightly proud. We are also well aware of the responses and fiscal policy fact that reaching it has only been possible because of the support of our interventions. And they did so without David A. Dodge members. In 2008, members again demonstrated their generosity by giving in cutting back other work. I encourage you Chairman of the Board record numbers, ensuring the Institute eclipsed its previous best-ever to read this annual report, which outlines fundraising result. This bears testimony to the high regard that individuals and a year that not only saw your Institute respond to breaking economic events, but organizations continue to have for the C.D. Howe Institute’s research. also witnessed a record number of events and publications in areas as far ranging Thanks are owed to all members, but I would like to thank one in as aboriginal education, municipal finance, provincial budgets, energy and particular. Tim Hearn served the Institute well as Chair these past three years environment issues. and we are grateful to him for his service. Ever the philanthropist, Tim’s These results were achieved because all C.D. Howe Institute staff rose to outgoing act as Chairman of the Institute was a six-figure donation to the the occasion. I commend the staff for their work and Bill Robson and Duncan Institute’s endowment fund for special studies. We thank him very much for his Munn for their leadership. generosity and leadership. The year ahead will pose significant challenges. The pressing need for The year that started on a celebratory high note for the Institute soon smart policy responses will not abate, and the demands on the Institute will tested our mettle as the economy worsened and the need for adept policy increase. We begin the task of examining how to best stabilize the economy in responses grew. The US housing market collapsed. Credit markets froze. Risk the short term, and in the long term, seek policy changes that avoid the models proved as incomplete as regulatory oversight in some jurisdictions. The distortionary incentives that were so clearly imbedded in the global financial results: Institutions failed, and a full-fledged global market crisis ushered in the system. On behalf of my fellow Directors, I thank you for your support. first synchronized global recession in living memory. Canada has not been and We look forward to working together on these important issues. will not be spared. But owing to our stronger policy framework, Canada has faired relatively better than most other jurisdictions. If Canada pursues good policy going forward, it can continue to do relatively better than others. That is why the Institute’s work was so important in 2008 and why it remains so important in 2009 and future years. "Independent research is critical to debate, and the C.D. Howe Institute is a true Canadian jewel." Kevin G. Lynch, Clerk of the Privy Council and Secretary to the Cabinet WWW.CDHOWE.ORG C.D. HOWE INSTITUTE ANNUAL REPORT, 2008 3 A Message from the PRESIDENT & CEO Confronting Crisis: Strategic Vision; Nimble Response If ever a year demonstrated the need for that ensured policymakers got needed timely, high-quality analysis and sound economic policy – both well- advice. grounded strategies for building a As a result, the C.D. Howe Institute set new records for numbers of dynamic economy, and adept reactions to publications and events. Notwithstanding our relatively small budget, we limit damage when crises occur – 2008 topped all Canadian think-tanks for high-quality media citations. From the was it. Prime Minister and the Governor of the Bank of Canada, through provincial Sadly, in much of the world, and leaders and officials, to senior businesspeople and top-flight academics, the especially in the United States, the C.D. Howe Institute engaged Canadians coast to coast, and bolstered its consequences of unsound strategies made position as Canada’s foremost provider of top-quality, independent and the headlines. Tax and credit-market practically oriented policy debate and guidance. distortions that promoted Among the most positive and important aspects of that engagement is William B.P. Robson overconsumption of housing and much our contact with the Institute’s supporters. The Institute is blessed with a President and CEO else, dysfunctional financial regulation, committed, engaged and extraordinarily able Board of Directors. And in unsustainable fiscal positions, bubble-inducing monetary policies, 2008 more than ever, I appreciated the extent to which our members mercantilist trade policies and exchange-rate manipulation – all these helped continued to give the intellectual, moral and material support that enables push the world economy to the brink. the C.D. Howe Institute to shape, implement, and communicate policy- Canada’s experience in 2008, while bruising, shows the importance of relevant work that is not only of the highest quality, but is also directly sound economic strategies and adept crisis responses in a more positive pertinent to the challenges facing public- and private-sector leaders. light. There is good reason for the often-repeated observation that Canada I am also proud of the contributions made by the Institute’s team – the entered the crisis in better shape than most countries. On every dimension – outside authors, Fellows, and research team guided by Vice President, tax and credit-market policies, financial structure, fiscal stance, stable Research Finn Poschmann, and