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Canada's Location in the World System: Reworking

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Canada's Location in the World System: Reworking CANADA’S LOCATION IN THE WORLD SYSTEM: REWORKING THE DEBATE IN CANADIAN POLITICAL ECONOMY by WILLIAM BURGESS BA (Hon.), Queens University, 1978 MA (Plan.), University of British Columbia, 1995 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY in THE FACULTY OF GRADUATE STUDIES Department of Geography We accept this thesis as conforming to the required standard _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ THE UNIVERSITY OF BRITISH COLUMBIA January 2002 © William Burgess, 2002 Abstract Canada is more accurately described as an independent imperialist country than a relatively dependent or foreign-dominated country. This conclusion is reached by examining recent empirical evidence on the extent of inward and outward foreign investment, ownership links between large financial corporations and large industrial corporations, and the size and composition of manufacturing production and trade. In each of these areas, the differences between Canada and other members of the G7 group of countries are not large enough to justify placing Canada in a different political-economic status than these core imperialist countries. An historical context for the debate over Canada's current status is provided by archival research on how socialists in the 1920s addressed similar issues. Imperialist status means that social and economic problems in Canada are more rooted in Canadian capitalism and less in foreign capitalism than is generally assumed by left-nationalist Canadian political economy. Given Canada’s imperialist status, labour and social movements in Canada should not support Canadian nationalism, e.g., oppose ‘free’ trade and globalization on this basis. ii Table of Contents Abstract…………………………………………………………………………………………..ii Table of Contents……………………………………………………………………………..…iii List of Tables…………………………………………………………………………………….ix List of Figures…………………………………………………………………………………….x Chapter 1: Introduction .............................................................................................................. 2 1.1 Why Canada’s political-economic status matters................................................................ 2 1.2 The areas to be investigated................................................................................................. 3 1.3 Some conceptual assumptions ............................................................................................. 4 1.3.1 An economic focus ....................................................................................................... 4 1.3.2 The ‘national’ scale....................................................................................................... 4 1.3.3 Imperialism today ......................................................................................................... 5 1.3.4 An internationalist framework ...................................................................................... 6 1.3.5 Canada and the politics of nationalism ......................................................................... 6 1.4 An experience that motivated this study.............................................................................. 9 1.5 Hypothesis.......................................................................................................................... 12 1.6 Method and data sources.................................................................................................... 12 1.6.1 Early socialist debates on these issues........................................................................ 13 1.6.2 Foreign investment...................................................................................................... 13 1.6.3. Links between financial and industrial capital: ......................................................... 14 1.6.4. Industrial structure and development......................................................................... 15 1.7 Outline of chapters............................................................................................................. 15 Part I: Early socialists’ views on Canada’s political-economic status ................................ 17 Chapter 2: Popular and socialist views of Canada before the 1920s .................................... 18 2.1 Introduction to Part I.......................................................................................................... 18 2.2 Canadian nationalism and the United States before the 20th century ................................ 20 2.2.1 Canadians and the American Revolution.................................................................... 21 2.2.2 The War of 1812 ......................................................................................................... 23 2.2.3 The 1837-38 ‘Rebellion’............................................................................................. 24 2.2.4 Confederation ............................................................................. 2.2.5 Popular access to land................................................................................................. 27 2.2.6 Summary..................................................................................................................... 28 2.3 Early socialist positions on Canada’s economy and Canadian nationalism ...................... 28 2.3.1 American perspectives................................................................................................ 29 2.3.2 Free trade .................................................................................................................... 29 2.3.3 Early socialists on the Canadian economy.................................................................. 31 Who Owns Canada?.......................................................................................................... 31 The History of Canadian Wealth ...................................................................................... 33 2.4. Summary and conclusion.................................................................................................. 34 iii Chapter 3: The Communist Party of Canada on Canada...................................................... 36 3.1 Introduction........................................................................................................................ 36 3.1.1 The relevance of this debate ....................................................................................... 36 3.1.2 Sources of information................................................................................................ 38 3.2 The initial CPC characterization of Canada’s political-economic status (1921-1924)...... 39 3.2.1 Dominion status .......................................................................................................... 39 3.2.2 Industrial development................................................................................................ 41 3.2.3 US investment in Canada............................................................................................ 41 3.2.4 Canadian finance capital............................................................................................. 42 3.2.5 Canadian foreign investment ...................................................................................... 44 3.2.6 Farmers ....................................................................................................................... 45 3.2.7 Summary..................................................................................................................... 47 3.3 ‘Canadian Independence’ (1925-1928).............................................................................. 47 3.3.1 Two influences............................................................................................................ 48 3.3.2 Independence from Britain ......................................................................................... 49 3.3.3 Trade union autonomy and unity ................................................................................ 55 3.3.4 A shift in the motivation for independence................................................................. 59 3.3.5 Summary..................................................................................................................... 66 3.4 Canadian imperialism (1928-1931) ................................................................................... 66 3.4.1 The general course of the discussion .......................................................................... 67 3.4.2 Dominion status and the bourgeois revolution in Canada .......................................... 67 3.4.3 Canada’s industrial role .............................................................................................. 68 3.4.4 Foreign investment and the relative weight of the domestic bourgeoisie................... 70 3.4.5 Canadian foreign investment ...................................................................................... 74 3.4.6 Canadian imperialism and independence.................................................................... 75 3.4.7 Summary..................................................................................................................... 82 3.5 Conclusion
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