Trusted Intelligence in Turbulent Times ANNUAL REPORT 2019 Institut C.D. HOWE C.D. HOWE Institute Our Mission The C.D. Howe Institute is a registered charity, and an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review. Your Philanthropic Dollars at Work in 2019 #1 Awarded Think Tank The C.D. Howe Institute has won more research awards than any Canadian think tank, and has six times been awarded the Canadian Economics Association’s Purvis Prize, the highest honour in Canadian economic policy writing. Essential Output 80 52 22 Exclusive, off-the-record High-quality research and Policy council meetings events policy council reports Stimulating Debate 6000+ 14,000+ 600,000+ Citations in Canadian citations in social media Website page views and international media Most cited think tank in the Globe and Mail and National Post, Canada’s two national dailies. Engaging Government 55 Policy outreach presentations Board of Directors in 2019 Chair Rick Ekstein Ronald P. Mathison, CA, CBV, CFA President and Chief Executive Chairman, Matco Investments Hugh L. MacKinnon Officer, Phaze 3 Management Ltd. Chairman and Chief Executive Inc. Marcia Moffat Officer, Bennett Jones LLP Sheldon Elman, M.D. Managing Director – Head of Co-Founding Partner, Canada, BlackRock Vice-Chair Persistence Capital Partners Gilles G. Ouellette Heather Evans Chairman of the Board, BMO Brian M. Levitt, O.C. Executive Director and Chief Nesbitt Burns, Group Head, Chairman of the Board, Executive Officer, Canadian Tax BMO Asset Management and TD Bank Group Foundation Vice-Chair, International, BMO Financial Group President and Chief Louis Gagnon President, Canadian Aaron W. Regent, FCPA, FCA Executive Officer Operations, Intact Financial Founder and Managing Partner, Corporation Magris Resources Inc. William B.P. Robson C.D. Howe Institute Blake C. Goldring, C.M., M.S.M., Donald S. Reimer, F.C.I.T. CFA Chairman, President and Executive Chairman, AGF Chief Executive Officer, Reimer Directors Management Ltd. Express World Corp. Charles Brindamour Bruce Gordon Shirlee Sharkey Chief Executive Officer, Intact Chairman, Manulife Assurance President and Chief Executive Financial Corporation Canada Officer, SE Health Scott Burns Paul J. Hill, C.M. Stephen Smith Chairman and Chief Executive President and Chief Executive Chairman and Chief Executive Officer, BURNCO Group of Officer, Harvard Developments Officer, First National Financial LP Companies Inc., A Hill Company Naseem Somani, CPA, CA Heather Chalmers Brian K. Johnston, CPA, CA Chair of the Board, Dynacare President and Chief Executive Chief Executive Officer, Jonathan Tétrault Officer, GE Canada CreateTO Managing Partner, Sagard Bert Clark Anna Kennedy Holdings President and Chief Chief Operating Officer, Leonard Waverman Executive Officer, Investment KingSett Capital Inc. Dean, DeGroote School of Management Corporation of Rich M. Kruger Business, McMaster University Ontario (IMCO) Chairman, President and Chief Alfred G. Wirth Hélène Desmarais, C.M., O.Q. Executive Officer, Imperial Oil President and Director, HNW Chairman and Chief Executive Limited Investments Inc. Officer, Centre d’entreprises et Cyrus Madon d’innovation de Montréal Senior Managing Partner, Victor G. Dodig Brookfield Asset Management President and Chief Executive Inc. Officer, CIBC The C.D. Howe Institute wishes to recognize the contribution of the late Naseem Somani to the Board. 2019 Annual Report / C.D. Howe Institute 1 Message from the Chairman Hugh L. MacKinnon Chair, C.D. Howe Institute he C.D. Howe Institute is unmatched in and scholars – should also be proud of another year of Canada as a trusted voice for independent, outstanding achievements. non-partisan economic research. Focused The Board also wishes to recognize the contributions of Charles Brindamour, Sheldon Elman, and Rich Kruger, on improving the lives of Canadians by fostering T who stepped down as board members this year, and give economically sound public policy, the Institute a warm welcome to new board members Bert Clark, Rick prides itself on its many contributions over the Ekstein, Heather Evans, and Louis Gagnon. decades to the wellbeing of Canadian families Sadly, the Institute lost a number of friends and and businesses. supporters last year. Michael Wilson, who was chair of the Institute’s International Economic Policy Council; and The Board of Directors oversees the Institute’s governance Naseem Somani, whose contribution to the activities of our on behalf of its primary stakeholders – the individuals, Board will be missed. We also lost a number of important corporations, postsecondary institutions and foundations that figures in the first part of 2020, with the passing of Adam give so generously to support its policy work. Fanaki, co-chair of our Competition Policy Council; As this report will attest, the Institute made great Allan Gotlieb, a great Canadian whose tireless work with contributions to public discourse in 2019, holding 80 policy charitable foundations supporting the Institute were events, releasing 52 research papers, daily Intelligence gratefully appreciated, and who contributed to the creation Memos and other reports over an expansive range of topics. of our International Economic Policy Council; and Sylvia The impact of this work was reflected in more than 6,000 Ostry, an outstanding public servant and academic, in citations in Canadian media and over 600,000 website whose name the Institute hosts an annual lecture. pageviews. Finally, we would like to recognize the Institute’s On behalf of the Board, I would like to thank the members and friends for the philanthropic support that Institute’s President and CEO, Bill Robson, for his helps the Institute continue to make great contributions wise leadership, focused policy acumen and intellectual to the policy discussions that matter to Canadians. It is discipline; and Senior Vice President and Chief Operating your generous commitment to smart public policy that Officer Duncan Munn, whose superb work ensures the enables us to help guide Canada into a brighter, and more organization runs a lean, efficient and effective operation, prosperous future. despite its relatively modest funding. The exceptional people whose hard work and imagination goes into making Sincerely, the Institute everything that it is – the staff, researchers Hugh L. MacKinnon 2 2019 Annual Report / C.D. Howe Institute Message from the President & CEO William B.P. Robson President & Chief Executive Officer, C.D. Howe Institute or more than 60 years the C.D. Howe Our community of fellows continues to grow. Notable Institute has been a reliable guide through additions in 2019 included John Manley, former Deputy the economic challenges facing Canadians at Prime Minister and Finance Minister; Joanne De Laurentiis, former President and CEO of the Investment home and abroad. At Canada’s foremost economic F Funds Institute of Canada; Steve Orsini, former Secretary policy think tank, we take pride in our evidence- of the Cabinet, Head of the Ontario Public Service and based, non-partisan and rigorously reviewed Clerk of the Executive Council; and valued former Institute research. In good times and bad, we are a trusted colleague and renowned economist Jack Mintz. source of authoritative and objective policy advice The Institute’s events were also characteristically dedicated to the wellbeing of Canadian families interesting and engaging. With more than 80 events in 2019, including our annual Regent Debates series which and businesses. saw Melanie Aitken and James Comey facing Robert In 2019, the Institute led public discussions on Atkinson and David Plouffe, the Institute provided a wealth subjects from open banking to money laundering, from of programming, and a plurality of opinions and viewpoints the fiscal accountability of Canada’s governments to the from senior government officials, business leaders, academics constitutionality of the federal government’s carbon pricing, and other experts. from international trade to healthcare and education. In When COVID-19 hit in early 2020, the C.D. Howe November we debuted a Ministerial Mandate Letters series, Institute mobilized some of Canada’s best economists, in which the Institute’s roster of experts provided a pre- academics and business leaders into Crisis Working Groups launch checklist for incoming ministers that was widely to tackle the health, fiscal, economic and income-related disseminated in Ottawa. impacts of the pandemic. Again, our engagement mattered. The Institute’s constructive engagement with We advocated for and helped shape the federal wage subsidy. policymakers shows across a wide range of topics. From Ours was a prominent voice on access to credit for borrowers the establishment of a registry of beneficial ownership to such as provincial governments and small businesses. As the combat money laundering, to the Alberta government’s Canadian economy reopens and adapts, and as governments review of liabilities from abandoned oil and gas wells, to undo their emergency measures and begin the arduous task the implementation of the Comprehensive and Progressive of restoring sustainability in public finances, the Institute will Trans-Pacific Partnership, we have evidence