MAY 2009

Think Tanks and Canada’s Culture of Ideas By Allan Gotlieb 10th Anniversary Dinner • Frontier Centre for Public Policy May 19, 2009, Winnipeg, MB

s a native of Winnipeg I’m pleased to be here tonight to celebrate some- thing that would have seemed improbable fi fteen years ago. A thriving think A tank in Winnipeg with a decidedly non-statist approach to public policy. Canada has now more than fi fty think tanks or policy institutes. They range tremendously in age, in size and in infl uence. The older organizations tend to be ones that were founded to study the economy. One way or another, they all undertake public policy research and promote the results in order to infl uence policy-makers. Their ultimate goal? To improve those policies. Their biggest challenge? To develop a direct line to policy makers. Some think tanks are little more than extensions of government, while others are completely independent, existing entirely on the results of private sector fundraising. These organizations tend to be the most nimble and the most interesting. I think that it is fair to say that the success of the Frontier Centre signals the success of the independent think tank movement in Canada. As the distinguished historian Michael Bliss has written, “for some years, Parliament, the universities and the national civil service have been increasingly upstaged as centers of political discussion by organizations such as the C.D. Howe Institute … and a host of other policy institutes”—to which I would add the Frontier Centre as well as the Atlantic Institute for Market Studies, the Montreal Economic Institute, the Fraser Institute and a number of others. How did this come to pass? How did think tanks and the ideas that emanate from them emerge so strongly in Canada over the past fi fteen years? The answer, in large part, must be private funding. Although philanthropy focused on public policy has been rather scarce in Canada, a fairly small amount of focused support has generated enormous returns in terms of the breadth and depth of policy analysis. 1 © 20O9 THINK TANKS AND CANADA’S CULTURE OF IDEAS FRONTIERFOR CENTRE PUBLIC POLICY SPEECHES FROM THE FRONTIER

In the , think tanks have played a big role in shaping policy since the late 1940’s. Indeed during the 1970’s and 1980’s there was a two-sided, rather than a one-sided debate in the U.S., largely as a result of the work being done in institutions such as the Heritage Foundation, American Enterprise Institute and Manhattan Institute. Canada had nothing comparable. By the end of the twentieth century, conservatives had displaced liberals as “the party of ideas”, according to the late New York Democratic senator Daniel Patrick Moynihan. Nine years later, the pendulum may have swung back, no doubt with the assistance of prominent liberal think tanks of which there are many in Washington. But whatever the political orientation, work being done by people within such independent organizations will again bring new ideas to the forefront. In Canada, where things are decidedly less volatile than they are in the United States, the coterie of relatively young, independent think tanks is now bringing fresh, new perspectives to a host of issues, well beyond the economic issues tradi- tionally associated with policy institutes. In the past, think tanks succeeded in helping to convince the public of the merits of lower taxes and balanced budgets. This has put Canada in better economic shape than most other countries. The work being done now will, I am sure, change public opinion on a host of issues affecting the lives of Canadians. Think tank success can be measured on a number of dimensions: Independence – Is the institution dependant on government funding for a signifi cant part of its income? If so, it is not well-placed to be a critic of government policy. Leadership – a dynamic leader with a fl air for intellectual entrepreneurship. This is crucial. In these smaller organizations the leader is absolutely key. We are lucky that over the past fi fteen years a number of policy entrepreneurs emerged at just the right time. Revenue Generation – How capable is the institute of raising money from non- governmental sources? As I said, Canada has never had the depth or breadth of private foundations that the United States has had and raising private funds has been a great challenge. But we have had a few foundations interested in public policy. These and key individuals made the difference in the formative fi rst years of a number of think tanks. For example, the Donner Canadian Foundation, where I have the honour to be Chairman, has had a strong tradition of funding public policy research for many years. The Donner Canadian Foundation has provided over one million dollars to the Frontier Centre over the past ten years, both as seed funding and in support of projects in more recent years. Over the years, the Donner Foundation has provided approximately $500,000 annually to public policy projects, most of them 2 © 20O9 • SPEECHES FROM THE FRONTIER MAY 2009 FRONTIERFOR CENTRE PUBLIC POLICY SPEECHES deas for a better tomorrow FROM THE FRONTIER I at independent think tanks. Another, quite new charitable organization, also devoted to supporting independent think tanks, is the Aurea Foundation, established by the visionary Peter Munk, of which I have the honour of also being Chairman. Together with Donner, they are providing vital life-blood support to the think tank community in Canada. Again as an example, the Aurea Foundation has provided over three-quarters of a million dollars to the Frontier Center since its inception. When resources are scarce, as they are with most independent think tanks, there’s a tendency toward effi ciency. Hence I think we’ve seen some smaller policy institutes “punching above their weight”. Recruitment and Staffi ng – think tanks must have the ability to attract the best people and retain them (even if they are paid less than they would be as civil ser- vants). Fortunately, times have changed. When I left my university days (many years, actually) behind me, I was drawn to the public sector. But that Golden Age is over. It is the NGO’s now that attract many of the brightest minds these days. Think tanks are competing for talent, but often with each other. Media visibility – the institutes must be able to bring their work to the attention of the media. The independent think tanks in Canada have been brilliant at this. Media is an enormously changing force at the moment, as electronic communica- tions change the nature of the way we engage with information. These think tanks were well placed to employ electronic media.

f we’re going to look at think tanks’ success, let’s start with the organization I we’re here to celebrate tonight. On all these measures I mentioned, the Frontier Centre is defying the odds. It now has offi ces across the three prairie provinces, employing a staff of 16 people plus other scholars and public policy experts on contract. In terms of leadership, Peter Holle has been the key. A look at the program of projects on the go and in the hopper shows a great mix of issues under examination. Some are of particular concern to people in the prairie provinces and others are of universal importance. They include the examination of a number of issues not being studied anywhere else: The Housing Frontiers project. Housing affordability is one of the most important economic and social issues in Canada today. There are vast and localized differen- ces in housing affordability across Canada and the causes for this are not well understood. The Frontier Centre is tackling the issue. There is currently no other project of this nature in Canada. 3 © 20O9 THINK TANKS AND CANADA’S CULTURE OF IDEAS FRONTIERFOR CENTRE PUBLIC POLICY SPEECHES FROM THE FRONTIER

The Frontier Centre has developed a path-breaking Aboriginal Governance Index which uses on-reserve surveying to assess the quality of government on First Nations in the three Prairie provinces. Another project focuses on the Myth of Cheap Government Auto Insurance where previous work has illustrated the myth that auto insurance is cheaper in B.C., Manitoba and Saskatchewan than it is in, say, Alberta. The Montreal Economic Institute has brought a similar fl air to public policy analy- sis in Quebec. Among the many projects the MEI is undertaking this year is a series of initiatives focused on education in that province. These includes work to determine the effects of a possible “unfreezing” of university tuition fees and a refl ection upon the type of policy that could be adopted to ensure long-term fi n- ancing for universities. Taken together, these studies will inform the general public on the methods that can be implemented in order to achieve an optimal and better wealth-generating education system. In the Maritime Provinces, the Atlantic Institute for Market Studies has provided impressive leadership. It has initiated and supported research in such areas as healthcare, education, equalization, unemployment insurance, urban affairs and local government, fi sheries and aquaculture, public fi nances, electricity and oil and gas sectors, and the impact of Canada-US relations and free trade on the region. I could go on to describe the scope of work at a number of other important think tanks, but you get the idea with this sample. Sometimes, funders ask, how many think tanks should we have? Are we going to dilute the impact of the sector if we increase the numbers? Are we going to dilute the fi nancial resources available? The answer is no. More are better. A multiplicity of ideas is the ideal. The repeti- tion of certain messages improves their communication. Redundancy and super fl uidity can be good things. Competition breeds originality. I’ve mentioned mainly regionally based think tanks this evening, where there has been such a fl owering of late. I think that the next area where we might see such a blossoming may be in . It is encouraging to know that a new think tank, let by Brian Lee Crowley of the AIMS Institute, is now in the course of formation in Ottawa. And, it is not just in domestic affairs that think tanks have a major role to play. In terms of Canada and the world, in the extremely dynamic area of international affairs, there is room for a great deal more policy analysis to inform decision- making. In fact, no area of human affairs has changed more dramatically in our lifetime than the international system. 4 © 20O9 • SPEECHES FROM THE FRONTIER MAY 2009 FRONTIERFOR CENTRE PUBLIC POLICY SPEECHES deas for a better tomorrow FROM THE FRONTIER I Within not much more than a half-century we have seen the world’s greatest land- empire, the Soviet Union, disintegrate. We have seen 27 states of Europe end the century-long European Civil War and come together to renounce sovereignty and transfer much of it to the world’s most innovative and largest political and economic entity, the European Union. We have seen, during the past few decades, the emergence of a fundamental new doctrine, that the protection of human rights trumps state sovereignty and domestic jurisdiction and that international intervention is justifi ed to prevent crimes against humanity. We have seen the rise of non-state actors to include powerful new non-governmen- tal players in global affairs. We have witnessed the rise of international terrorist organizations, the proliferation of civil wars and—alarmingly—the phenomenon of failing states. Most ominously, we are seeing the spread of nuclear weapons to regional powers in a manner that seems irreversible. Think of that—a combination of failing states and nuclear weapons. It may be happening before our eyes. The post-war international legal order has thus been irrevocably altered where it matters the most—at its intellectual foundations.

inally, we must add to the mix perhaps the most signifi cant long-run change of all, the shift of political and economic power to Asia, and in particular to F the new giants, China and India. What is also absolutely clear is that in this new international order or disorder, where the role of nations is greatly shrinking, no new or reformed international institutions are taking their place. Is reform of the U.N. supreme body—the Security General—really possible? If past history is the judge, the answer is no. This is why states such as Canada will be greatly challenged to play a creative and infl uential role. To do this we need to draw on new reservoirs of intellectual capital. There are signs that Canadians are beginning to realize this. In Waterloo the Centre for International Government Innovation, in at the Munk Centre for International Affairs, in Ottawa at Carleton and Ottawa universities, at the newly formed Canadian International Council, and soon, I hope, at the MacDonald Laurier Institute, we are seeing signifi cant new resources directed towards global issues and challenges. But Canada may be unique in the world in its dearth of independent think tanks in its national capital. If we had just 10% of the number and resources of the think tanks in Washington, the Canadian intellectual landscape would be unrecognizable 5 © 20O9 THINK TANKS AND CANADA’S CULTURE OF IDEAS FRONTIERFOR CENTRE PUBLIC POLICY deas for a better tomorrow SPEECHES I FROM THE FRONTIER and so would Ottawa. So I believe that in Canada there is a great deal of room for new think tanks to dedicate themselves to the international arena. The corridors of our national capital ought to be teeming with people with knowledge, ideas, expertise and experience. The more the better, because it is out of debate, research, the clash of minds, and philosophies that new ways of thinking will emerge about how to achieve a better world. And in this new environment, Canadians, I am confi dent, can play a creative role if we commit the resources to do so.

About the Author

Born in Winnipeg, Allan Gotlieb has served as Under Secretary of State for External Affairs, Legal Advisor and Head of External Affairs’ Legal Bureau, Chairman of the Canada Council and as deputy minister for the federal departments of Communications, and Employment and Immigration. In 1981 Mr. Gotlieb was appointed by Prime Minister as Canadian ambassador to the United States where he served until 1989. In the decade and during the waning years of the Cold War, Allan and his wife Sondra, were known for putting Canada on the diplomatic and cocktail party map in part due to their must-attend parties which were patronized by some of the most powerful fi gures in 1980s-era Washington. Allan Gotlieb is also the author of six books including his most famous, The Washington Diaries 1981–1989, and numerous articles on international law and diplomacy. Mr. Gotlieb holds degrees from eight universities including Oxford, Harvard, and the University of California, as well as the ; he is an honorary fellow of Wadham College, Oxford. He is a Companion of the and holds the Outstanding Achievement Award of the Government of Canada—its highest award for public service, as well as awards from the University of California and the American Society of International Law. Also, Mr. Gotlieb was the fi rst Canadian to ever receive the Woodrow Wilson Award for Public Service. Currently, Allan Gotlieb is a Senior Advisor in the Toronto offi ce of Bennett Jones and Chairman of the Donner Canadian Foundation, the Aurea Foundation and Governor of the Peter Munk Charitable Foundation.

The Frontier Centre for Public Policy is an independent, non- Copyright ©2009 by the Frontier Centre for Public Policy profi t organization that under-takes research and education Date of First Issue: May, 2009 in support of economic growth and social outcomes that will ISSN 1491-78 enhance the quality of life in our communities. Through a MB: 203-2727 Portage Avenue, variety of publications and public forums, the Centre explores Winnipeg, Manitoba Canada R3J 0R2 policy innovations required to make the eastern prairies Tel: 204 957-1567 Fax: 204 957-1570 region a winner in the open economy. It also provides new SK: 2353 McIntyre Street, insights into solving important issues facing our cities, towns Regina, Saskatchewan Canada S4P 2S3 and provinces. These include improving the performance of Tel: 306 352-2915 Fax: 306 352-2938 public expenditures in important areas like local government, education, health and social policy. The author of this speech AB: Ste. 2000 – 444 5th Avenue SW Calgary, Alberta Canada T2P 2T8 has worked independently and the opinions expressed are Tel: (403) 230-2435 therefore his own, and do not necessarily refl ect the opinions of the board of the Frontier Centre for Public Policy. 6 www.fcpp.org © 20O9 • SPEECHES FROM THE FRONTIER MAY 2009 FRONTIERFOR CENTRE PUBLIC POLICY