Sustaining a Relationship : Insights from Canada on Linking the Government and Third Sector (Working Paper 1)

The embedding of third sector organisations in the policy world is fraught with tensions. Accountability and autonomy become oppositional forces causing an uneasy relationship. Government agencies are concerned that their equity and efficiency goals and objectives be met when they enter partnerships with the third sector for the delivery of programs and services. Third sector agencies question the impact of accountability mechanisms on their independence and identities. Even if the relationship between government and third sector agencies seems to be based on cooperation, concerns about cooptation (for nonprofits) and capturing (for governments) may linger calling the legitimacy of the partnership into question. Two means of improving the relationship between the governing and third sectors have been proposed recently in Canada by the Panel on Accountability and Governance in the Voluntary Sector (PAGVS) and the Joint Tables sponsored by the Voluntary Sector Task Force (VSTF). The two endeavours represent a historic undertaking in Canada aimed at improving and facilitating the relationship between the federal government and the nonprofit sector. The reports borrow on other country models but offer new insights into mediating the relationship, including new models for a regulatory body and a charity compact for Canada. Do these recommendations adequately address concerns of autonomy, accountability and cooptation or capturing? The Canadian reports do offer new insights into resolving the four tensions inherent in partnerships between the governing and third sector but also raise important questions about the nature of these relationships and the evolution of democracy within the Canadian political system.

The Impact on Canada of the Rise of the Chinese Economy: Good, Bad or Indifferent? (Working Paper 50)

From humble beginnings less than twenty years ago, the economic relationship between Canada and the Chinese has flourished so that China is now Canada’s second most important trading partner after the United States. The Chinese demand for Canada’s exports, in particular in the natural resource sectors, has been a clear win for Canada, especially during the recent Great Recession where demand from other countries dropped sharply. But other aspects of the relationship have led to suggestions of costs. Canada’s large trade deficit with China at least looks superficially as a drag on the Canadian economy. It has been suggested the greater exposure to a low cost producer has displaced Canadian production and jobs and lowered wages. We find that each argument for costs to the relationship ignores important factors. On balance we conclude the relationship has been good for Canada, and it could be even better in the future.

Do Multiculturalism Policies Erode the Welfare State (Working Paper 33)

The past 30 years have witnessed a dramatic change in the way Western democracies deal with ethnic minorities. In the past, ethnic diversity was often seen as a threat to political stability, and minorities were subject to a range of policies intended to assimilate or marginalize them. Today, many Western democracies have adopted a more accommodating approach. This is reflected in the widespread adoption of multiculturalism policies for immigrant groups, the acceptance of territorial autonomy and language rights for national minorities, and the recognition of land claims and selfgovernment rights for indigenous peoples. We refer to these policies as “multiculturalism policies” or MCPs. The adoption of MCPs has been controversial, for two reasons. The first is a philosophical critique, which argues that MCPs are inherently inconsistent with basic liberal-democratic principles. Since the mid-1990s, however, this philosophical debate has been supplemented by a second argument: namely, that MCPs make it more difficult to sustain a robust Welfare State (hereafter WS). Critics worry that such policies erode the interpersonal trust, social solidarity and political coalitions that sustain a strongly redistributive WS. This paper reviews the reasons why critics believe that MCPs weaken political support for redistribution, and then examines empirically whether the adoption of MCPs has, in fact, been associated with erosion of the WS. This examination involves two steps: we develop a taxonomy of MCPs and classify Western democracies as “strong”, “modest” or “weak” in their level of MCPs. We then examine whether the strength of MCPs is associated with the erosion of the WS during the 1980s and 1990s. The evolution of the WS is measured through change in four indicators: social spending as a percentage of GDP; the redistributive impact of taxes and transfers; levels of child poverty; and the level of income inequality. We find no evidence of a consistent relationship between the adoption of MCPs and the erosion of the WS. Our analysis has limits, and we hope it stimulates further research. Nevertheless, the preliminary evidence presented here is clear: the case advanced by critics of MCPs is not supported. The growing ethnic diversity of Western societies has generated pressures for the construction of new and more inclusive forms of citizenship and national identity. The evidence in this paper suggests that debates over the appropriateness of multiculturalism policies as one response to this diversity should not be pre-empted by unsupported fears about their impact on the WS.