(October 7 – 14:15 ET) –
Finance minister Paul Martin told
the Forum of Federations in Mont
Tremblant yesterday that
globalization is the key challenge
for national economies.
Martin said that globalization
is a critical threat to nations
such as Canada, which strive for
some semblance of social equality.
Globalization inherently breeds
inequalities, he said, because of
the intensified effects of
comparative advantage produced
by an efficient global economy.
He lauded the benefits of
federalism in the face of economic
globalization. A patchwork of
provincial social programs funded
through equalization payments
has kept the provinces largely
on par with one another. The
federal system has given Canada
sufficient economies of scale
for it to register on the
international radar.
The Canadian obsession with
being “world class” is important,
he said. It ensures that the
national interest is represented
in venues such as the G7, the G20,
the World Bank and the
International Monetary Fund.
Martin argued that federalism
also gives the nation the advantage
of exploring best practices in
socioeconomic systems. He noted
that Saskatchewan pioneered
universal health care, and the
Caisse de dépôt et
placement du Québec led to
the creation of the Canada
Pension Plan’s Investment Board.
By combining this flexibility
with economies of scale, Martin
believes that federalist systems
are the best way to deal with the
21st century.
-IE Staff
For more information, please
see: