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Fraser Forum Introduction Publisher Fraser Institute Chief Editor Peter Cowley Managing Editor Emma Tarswell Editorial Advisor Kristin McCahon n February 1997, the Fraser Institute’s Vancouver of- Contributing Editors Charles Lammam ce was abuzz with anticipation. Margaret, the Lady Niels Veldhuis I Joel Wood atcher, was coming back to visit the Institute and the Art Direction and Cover Design Bill C. Ray sta were all invited to take part in the event. Cover Photos Chris Collins e day arrived and we all trooped down early to Production and Layout Emma Tarswell Media Relations Dean Pelkey the Waterfront Centre, excited and with our tasks as- Advertising Sales Advertising In Print signed. e hour nally arrived when the event was to Tel: (604) 681-1811 begin—but no Lady atcher. e room hummed and E-mail: info@advertising guests chatted, but no honoured guest. (As it turned out, inprint.com she was taking to task our Executive Director, Michael Walker and our Chairman, Raymond Addington, over a The Fraser Institute’s vision is a free and prosperous world where individuals benefit from greater choice, competitive markets, and personal Fraser Forum article with which she disagreed. She was, responsibility. Our mission is to measure, study, and communicate the im- pact of competitive markets and government interventions on the welfare as she pointed out, a regular reader of the magazine. of individuals. Founded in 1974, we are an independent Canadian research and educational organization. Our work is financed by tax-deductible con- Eventually satised with their explanation and analysis of tributions from thousands of individuals, organizations, and foundations. In the article, and having explained her own point of view order to protect its independence, the Institute does not accept grants from government or contracts for research. in no uncertain terms, Lady atcher relented and the For additional copies, or to become a supporter and event proceeded, much to everyone’s relief.) receive Fraser Forum, write or call the Fraser Institute, When Margaret atcher swept into the foyer of the 4th Floor, 1770 Burrard Street, Vancouver, BC V6J 3G7 Telephone: (604) 688-0221; Fax: (604) 688-8539; Toll-free: hotel’s ballroom, sta and guests stopped their networking 1-800-665-3558 (ext. 580–book orders; ext. 586–development) to watch her. A political pro, Mrs. atcher moved quickly Copyright © 2011 Fraser Institute ISSN 0827-7893 (print version) and seamlessly from one group to another, hand-shaking, ISSN 1480-3690 (online version) smiling, saying a word or two and moving on, leaving in Printed and bound in Canada. her wake dazzled and delighted fans. Her energy was in- Return undeliverable Canadian addresses to: Fraser Institute, 4th Floor, 1770 Burrard St., Vancouver, BC V6J 3G7 tense and her charisma unmistakable. Despite the fact that she had a terrible head cold, Lady atcher stood patiently The contributors to this publication have worked independently and opinions expressed by them are, therefore, their own and do not necessarily while she had her picture taken with 200 or so dignitaries, reflect the opinions of the supporters, trustees, or other staff of the Fraser Institute. This publication in no way implies that the Fraser Institute, its and then agreed to pose with the sta for a very memo- trustees, or staff are in favour of, or oppose the passage of, any bill; or that they support or oppose any particular political party or candidate. rable group photo. e luncheon and “Conversation with Margaret atcher” followed. Although Lady atcher Fraser Institute Board of Trustees Peter Brown (Chairman), Brad Bennett (Vice Chairman), Paul Fletcher (Vice Chairman), Mark W. had been out of oce for some years, her remarks were Mitchell (Vice Chairman), Salem Ben Nasser Al Ismaily, Gordon Arnell, Kathy Assayag, Ryan Beedie, Ed Belzberg, Joseph Canavan, Alex Chafuen, insightful and prescient and we all listened intently, hon- Derwood Chase, Jr., James Davidson, John Dielwart, Stuart Elman, David oured to be part of such a signicant event. Filmon, Greg Fleck, Shaun Francis, Ned Goodman, John Hagg, Paul Hill, Stephen Hynes, Charles Jeannes, C. Kent Jespersen, Andrew Judson, Robert Hollywood recently launched a major motion picture Lee, Brandt Louie, David MacKenzie, James McGovern, George Melville, John Montalbano, Gwyn Morgan, Eleanor Nicholls, Pierre Karl Peladeau, on the life of Margaret atcher. As critics have pointed Roger Phillips, Herb Pinder, R. Jack Pirie, Kevin Reed, H. Sanford Riley, Gavin Semple, Rod Senft, Anthony Sessions, Bill Siebens, Anna Stylianides, out, e Iron Lady has many aws, and in various ways Arni Thorsteinson, Michael Walker, Jonathan Wener, Peter Cowley (Interim Mrs. atcher is not shown in a particularly attering President), Niels Veldhuis (Vice President, Research), Fred McMahon (Vice President, Research), Sherry Stein (Vice-President, Development), Stuart light. But one thing the lm has done is remind us all that MacInnis (Secretary-Treasurer) Margaret atcher was a powerful force in British and Founder & Honorary Chairman for Life T. Patrick Boyle world politics in the 1980s. e lm has directed attention Fraser Institute Lifetime Patrons Sonja Bata, Charles Barlow, Ev to Mrs. atcher; pundits are once again assessing her role Berg, Jim Chaplin, Serge Darkazanli, John Dobson, Art Grunder, Raymond Heung, Bill Korol, Bill Mackness, Fred Mannix, Con Riley, Catherine and debating and disagreeing over her legacy. Windels In this issue of Fraser Forum, Institute analyst and Purpose, Funding, and Independence commentator Mark Milke examines why Margaret The Fraser Institute provides a useful public service. We report objective information about the economic and social effects of current public policies, atcher’s conviction and policies were important [e and we offer evidence-based research and education about policy options that can improve the quality of life. The Institute is a non-profit organization. Iron Lady for a new generation: Why Margaret atcher Our activities are funded by charitable donations, unrestricted grants, ticket mattered (pg. 16)]. As part of his analysis, he looks at sales and sponsorships from events, the licensing of products for public distribution, and the sale of publications. All research is subject to rigorous the role the Fraser Institute played in her education and review by external experts, and is conducted and published separately from the Institute’s Board of Trustees and its donors. The opinions expressed by eventually, in her policies. at contribution is some- staff or author(s) are those of the individuals themselves, and should not be interpreted to reflect those of the Institute, its Board of Trustees, or its donors thing that all Fraser Institute supporters and sta should and supporters. As a healthy part of public discussion among fellow citizens continue to be very proud of. who desire to improve the lives of people through better public policy, the Institute welcomes evidence-focused scrutiny of the research we publish, including verification of data sources, replication of analytical methods, and intelligent debate about the practical effects of policy recommendations. — Kristin McCahon www.fraserinstitute.org Fraser Forum March/April 2012 1 Fraser Forum Contents 7 1 From the editor BC welfare levels are adequate 4 Forum Authors 5 Opportunity for real reform Mark Rovere Is it the right time to make changes to Canada’s current health care system? 7 BC welfare levels are adequate Niels Veldhuis, Amela Karabegović, and Milagros Palacios British Columbian welfare recipients are receiving 12 enough to cover their basic needs. Who donates to charities and why? 10 A municipal auditor general is not a panacea for local government waste Niels Veldhuis and Charles Lammam Creating an Auditor General for Local Government position in BC will help find wasteful spending but more could be done. 12 Determinants of charitable giving: A review of the literature Charles Lammam and Nachum Gabler What makes an individual more likely to donate 27 to charities? Air quality in Canada 2 Fraser Forum March/April 2012 www.fraserinstitute.org Feature Story he iron lady for a new generation: Why Margaret Thatcher mattered T — page 16 The Iron Lady for a new generation: The costs and aordability of 16 Why Margaret Thatcher mattered 23 Canadian auto insurance in 2011: Private versus public provision Mark Milke Margaret Thatcher has a strong legacy of making Neil Mohindra, Emrul Hasan, and Nachum Gabler important public policy decisions. In the wake of Both public and private auto insurance exists the new lm, The Iron Lady, we take a look at why throughout Canada; but which is better for the her years in oce were important to both Britain consumer? and the world. Regulation review: The state of air 27 quality in Canada Joel Wood Despite what many environmental organizations might have you believe, air quality in Canada is improving. 29 How western civilization prospered Mark Milke A review of Niall Ferguson’s latest book, Civilization: The West and the Rest. Pareto’s Republic and the New 31 Science of Peace Filip Palda An excerpt from Fraser Institute Senior Fellow Filip Palda’s new book, Pareto’s Republic and the New Science of Peace. www.fraserinstitute.org Fraser Forum March/April 2012 3 Forum Authors Nachum Gabler (nachum.gabler@ Neil Mohindra (neil.mohindra@ fraserinstitute.org) is a research assistant fraserinstitute.org) is the director of in the Centre for Canadian-American the Centre for Financial Policy Studies Relations at the Fraser Institute. He has at the Fraser Institute. He holds a BA an M.A. in economics from Boston (Honours) in Social Sciences (Econom- University. ics) from the University of Ottawa and an MBA in Finance from McGill University. Emrul Hasan is the research intern at Milagros Palacios (milagros.pala- Centre for Financial Policy Studies in [email protected]) is a senior the Fraser Institute. He is also a nance economist with the Fraser Institute’s and economic policy teaching assistant scal studies department.