OP-ED DES BUILDING LEADERSHIP FOR CANADA S FUTURE DÉVELOPPER LE LEADERSHIP POUR L AVENIR DU CANADA

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1 2011 FELLOWS ÉDITORIAUX OP-ED DES ARTICLES FELLOWS BUILDING LEADERSHIP FOR CANADA S FUTURE DÉVELOPPER LE LEADERSHIP POUR L AVENIR DU CANADA

2 FOUNDING CHIEF EXECUTIVE OFFICER CHEF FONDATRICE DE LA DIRECTION Action Canada is a national fellowship for young Canadians who are demonstrating leadership and have a passion for making our country the best it can be. The program enhances Fellows leadership skills, broadens their understanding of Canada and its policy choices, and builds an exceptional network of leaders for our future. Conveying relevant, timely opinions and ideas to the public is an important skill for leaders interested in influencing public policy. Action Canada works with Fellows to enhance their skills in writing op-ed and commentary pieces worthy of publication in major print and on-line newspapers and magazines, and to familiarize them with the use of social media for advancing public policy ideas. Andrew Cohen, Professor of Journalism and International Affairs, Carleton University, leads our op-ed writing program. In the 2011/2012 fellowship year, Fellows also benefited from the expertise of journalists and/or editors Alain Dubuc, La Presse, Kenyon Wallace, Toronto Star, Margo Goodhand, Winnipeg Free Press, Andrea Mandel-Campbell, CTV Business News Network, Stephen Hume, Vancouver Sun and Antonia Maioni of McGill University. Our writing program illustrates how op-eds can be an effective method to engage the public on a policy issue and to contribute to enhancing civic society. Many of the op-ed articles that Fellows write during their fellowship are published Fellows pieces were published in the Globe and Mail, Toronto Star, Montreal Gazette, and Winnipeg Free Press. I am pleased to present this compilation of the 2011 Fellows op-eds. They demonstrate how this group of emerging leaders views major issues facing our country in relation to the fellowship year theme of Advancing Canada s National Interests in Economic and Business Policy. This compilation can also be found at actioncanada.ca. Sincerely, Cathy Beehan Founding Chief Executive Officer Action Canada est un programme de fellowship national pour les jeunes Canadiennes et Canadiens prometteurs qui font preuve de leadership et souhaitent ardemment amener notre pays à atteindre son plein potentiel. Le programme améliore les compétences en leadership des Fellows, élargit leur compréhension du Canada et de ses choix en matière de politiques, et bâtit un réseau de leaders hors du commun pour notre avenir. La transmission en temps opportun d opinions et d idées pertinentes au public est une compétence très importante pour les leaders qui veulent influer sur les politiques publiques. Action Canada aide les Fellows à renforcer leurs compétences en rédaction d articles d opinion dignes d être publiés dans les principaux journaux et magazines imprimés et en ligne, et à apprendre à utiliser les médias sociaux pour diffuser des idées en matière de politiques publiques. Andrew Cohen, professeur de journalisme et de relations internationales à la Carleton University, dirige notre programme de rédaction de lettres et d articles d opinion. Les Fellows de ont aussi profité de l expertise des journalistes et rédacteurs Alain Dubuc, La Presse; Kenyon Wallace, Toronto Star; Margo Goodhand, Winnipeg Free Press; Andrea Mandel-Campbell, CTV Business News Network; Stephen Hume, Vancouver Sun; Antonia Maioni, Université McGill. Le programme de rédaction montre comment un article d opinion peut se révéler efficace pour faire connaître une question de politique publique à la population et contribuer à renforcer la société civile. Beaucoup d articles d opinion rédigés par les Fellows au cours du programme sont publiés. Des articles d opinion des Fellows de 2011 ont d ailleurs été publiés dans le Globe and Mail, le Toronto Star, la Montreal Gazette et le Winnipeg Free Press. J ai le plaisir de présenter une compilation des articles d opinion des Fellows de Elle illustre ce que ce groupe de leaders émergents pense des principaux enjeux auxquels doit faire face notre pays, en lien avec le thème du programme de fellowship de cette année : Promouvoir les intérêts nationaux du Canada dans les politiques économiques et commerciales. La compilation se trouve aussi au actioncanada.ca. Sincères salutations, Cathy Beehan Chef fondatrice de la direction [2] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

3 Patrick Boily Remzi Cej Natalie Chapdelaine Anouk Dey Philippe-Olivier Giroux Michael Hartley Jordan Isenberg Louise Kent Michael Marin Ian Philp Sadia Rafiquddin Kal Suurkask Jean-Frédéric Légaré-Tremblay Eric Tribe Joanna Wong Paul Yeung Biographies Being Isolated from our Neighbours Bill C-4 Tips the Balance Against Refugees Les Arts : Au-Delà de la Valeur Économique Canada s Innovation Gaffe: Refocusing How We Address the Innovation Gap Le Gouvernement Fédéral Devrait Également Encadrer Les Clauses «Orphelin» Time for an Aral Spring? A Curative Script A Wise Investment in an Unsure Economy Poor Corporate Governance Regulation Leaves Canada s Financial System Vulnerable Can Democracy Adapt to the New Normal? Bill C-31: Smuggling Human Rights The Case for Hydro s Hotter Sister Quand Étudier les Classiques Devient Payant Canada s VC Industry Op-Ed In China, Canada Needs Re-Tweets, Not Merchant Fleets Canadian Pension Reform Required Articles are printed in the language in which they were submitted. Les éditoriaux sont publiés dans la langue dans laquelle ils ont été soumis. [3] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

4 PATRICK BOILY BEING ISOLATED FROM OUR NEIGHBOURS Unfortunately, the old maxim good fences make good neighbours doesn t apply to Manitoba in its trade relations with neighbouring provinces. Over the past decade our neighbours have created free trade agreements among themselves. Like the dilapidated house in a gentrified neighbourhood, our neighbours, to the west and to the east, have both built fences to protect themselves. These agreements have isolated Manitoba from the country s biggest and most valuable markets. I refer to the New West Partnership signed in 2010 between Saskatchewan, Alberta and British Columbia and the Trade and Cooperation Agreement between Ontario and Quebec of These agreements strengthen the provincial economies through regulatory harmonization, lower trade barriers and creating a single investment market. Unfortunately, they leave Manitoba isolated. The impact on Manitoba businesses is twofold. First, they are faced with higher costs to enter these markets in Canada s richest provinces. Second, they also find themselves at a competitive disadvantage in relation to firms in these markets because their regulatory schemes are not harmonized. Does it seem logical that a publishing house in Manitoba is able to do business freely and competitively internationally and in all 50 states in the United States but only faces government sponsored barriers in Canada? Current protectionist policies in Ontario and Quebec mean publishers printing in Manitoba are unable to compete in these two provinces. This policy alone is estimated to cost a publisher $3 million a year. Being isolated from the regional trade agreements not only increases the costs of doing business in Manitoba, it also causes our businesses to miss opportunities. Through the New West Partnerships, the provinces of British Columbia, Alberta and Saskatchewan have been on international trade missions; opened a joint trade and investment office in Shanghai; and signed a memorandum of agreement to expand the reach of the region s energy sector into the lucrative Asian market. The reality is that for the provinces already part of these regional trade agreements, the exclusion of Manitoba doesn t matter. For Manitoba, however, it does. It is imperative that the provincial government take action on this issue. This means doing more than paying lip service to developing an internal trade agreement for the entire country. Manitoba should take concrete action to liberalize trade within the province and make every possible attempt to join the New West Partnership as a first step towards attaining a truly national trade agreement. Like the dilapidated house in the gentrified neighbourhood, if Manitoba wants to increase its value, it must improve and upgrade the property. Interprovincial free trade has been on the radar for years and its economic impact should not be underestimated. The Government of Alberta estimates these internal trade barriers are costing Canadians $14 billion a year. This $14 billion dollars in economic activity would go a long way in providing governments with the revenues needed for social services and paying down debt. [4] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

5 REMZI CEJ BILL C-4 TIPS THE BALANCE AGAINST REFUGEES Minister of Citizenship and Immigration Jason Kenney says Bill C-4 will punish human smugglers, but in reality the law would punish refugees who have given up everything to reach Canada. Last year, Citizenship and Immigration Canada unveiled a $500,000 monument at Halifax s Pier 21 in memory of ms St. Louis, a ship carrying 907 Jewish refugees who were refused entry to Canada in The monument, The Wheel of Conscience, reminds Canadians of our collective responsibility to others. But the reintroduction of an immigration bill that punishes refugee claimants for seeking refugee status in Canada suggests we don t seem to have learned much from the St. Louis. Bill c-4 calls for a balanced refugee reform. In certain cases, the law would prevent recognized refugees from reuniting with their families or from traveling abroad to visit, limiting their mobility rights for up to five years. At the unveiling of the monument in memory of the ms St. Louis, Kenney said Canada will never close its doors to legitimate refugees who need our protection and who are fleeing persecution. Sadly, the new bill threatens to do just that by creating two categories of refugees: The first group is comprised of those government considers legitimate refugees: those who had the patience and the option to wait in refugee camps for up five years while their applications were processed. The second group comprises refugee claimants who are queue jumpers; those who could not afford to wait and apply through the standard procedure because there was no processing centre in the countries they fled or because they had to leave urgently to escape persecution. Under Bill c-4, those whom an immigration officer might suspect of having committed a crime would be detained for a minimum of a year, even if they were not charged or convicted. Australia, which detains all of its refugee claimants while their applications are processed, is now conducting an investigation into more than 1,100 attempts at self-harm and suicide by detainees in alone. uk detention centres also have a high rate of detainee self-harm. Most worrying is children s detention: In a recent issue of the Paediatrics and Child Health journal, some Canadian paediatricians point to previous examples of children s detention in the uk and Australia, that show how detention will trigger scarring, permanent trauma on refugee children. In addition to causing psychological harm, the necessary creation of new long-term detention centres in Canada to accommodate the high numbers of detainees would cost Canadian taxpayers millions of dollars. The 2008 auditor general s report estimated that detaining and housing a detainee costs from $120 to $238 per day, based on expenses. Based on this estimate, the cost of holding a single person in detention for 12 months will cost taxpayers up to $86,870. Funding for such expensive infrastructure and punitive projects should be directed to expediting processing times in current immigration processing centres, hiring more staff, even opening new assessment centres if necessary, but not by abandoning Canada s obligation to uphold the dignity and basic human rights of people who escape war and conflict. The Prime Minister, the minister of immigration, and Public Safety Minister Vic Toews have repeatedly used the word queue-jumpers to delegitimize refugee claimants who come to Canada by boat. It is as if these so-called queue-jumpers who run for their lives were doing something illegal. Canada is one of the founding signatories to the un Refugee Convention, which allows claimants to seek refugee determination once they arrive. The Convention is based on the principles of nondiscrimination and non-penalization, both of which are threatened by Bill c-4. Article 31 of the Convention states that refugees entering a country using irregular means cannot be penalized for fleeing conflict and persecution. Confronted with the desperate pleas of the 907 Jewish refugees seeking shelter in Canada in 1939, prime minister Mackenzie King said that Jewish refugees simply weren t a Canadian problem. Over 70 years later, when 492 Tamil refugee claimants sought protection from Canada after reaching our waters, Prime Minister Stephen Harper defended stringent laws to keep out refugees in difficult circumstances: We are responsible for the security of our borders and the ability to welcome people or not welcome people when they come, he said. Can we claim today that desperate groups of people who make it to our waters are not our problem because they use different ways of entering the country? Should we detain and punish individuals, families and children who come to us for protection? If we allow Bill c-4 to become law, we will be responsible for this moral crime. [5] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

6 NATALIE CHAPDELAINE LES ARTS : AU-DELÀ DE LA VALEUR ÉCONOMIQUE Si Stephen Harper annonçait demain un programme d investissement de 50 milliards de dollars dans les arts, nombreux sont ceux qui crieraient au scandale. Plusieurs trouveraient que ce n est pas prioritaire. D autres encore se demanderaient comment un gouvernement conservateur peut à ce point faire volte-face. Quelques-uns verraient toutefois l importance de l impact que ce soutien aux arts aurait dans notre société. Ils auraient compris que la société a le droit à ses artistes et qu elle sera la plus grande bénéficiaire d une vie culturelle riche. Pour s en rendre compte, il faut se sortir de la logique des retombées et du calcul économique primaire et tenir compte de l apport intangible et non-mesurable de l art. Par exemple, bien que tout le monde reconnaisse le succès économique du Cirque du Soleil, on oublie souvent que le simple fait de citer ce cas reflète la fierté d avoir vu naître chez nous un tel succès. C est donc un élément d identité sociale. On oublie également que ce qui fait vendre des billets, c est l émotion que les spectateurs sont assurés de vivre lorsqu ils assistent à un de ses spectacles. C est donc un générateur d expériences. On oublie enfin que pour que ce succès puisse avoir lieu, le Cirque mise constamment sur le dépassement de ses capacités créatives. C est un incubateur et un générateur de créativité. Une société qui jouit d une scène culturelle riche se donne les chances d être plus attractive, créative, compétitive sur la scène mondiale. Mais une vie culturelle est surtout riche de sens, d émotions et de questions. C est le sens qu elle créée qui alimente de nouvelles idées. Ce sont les émotions qu elle provoque qui élèvent l âme de ses spectateurs. Ce sont les questions qu elle soulève qui permettent à la société de continuellement se remettre en question. On ne valorise pas assez dans notre société ces apports incontournables mais intangibles des arts. On a déjà démontré que chaque dollar investi en culture avait des retombées économiques directes et indirectes de 7 dollars. On a aussi défendu les droits des artistes à la création, à un niveau de vie décent, à des mécanismes économiques leur permettant d avoir leur place dans notre société. Il nous faut maintenant dépasser ces arguments monétaires. Ce qu il faut, c est aller plus loin : miser sur l art, les artistes, et plus largement les métiers créatifs, dans l élaboration de nos politiques de développement économique. En misant sur l art, on sait qu on aura des retombées économiques directes et indirectes. Mais on sait aussi qu il y aura des retombées sociales positives. Plusieurs études démontrent que les élèves qui participent à un projet artistique ont une plus grande persévérance scolaire et développent des comportements sociaux plus conciliants. On sait aussi que l apport des arts et des artistes est fondamental à l essor de l économie créative. L onu encourage d ailleurs fortement depuis 2008 ses pays membres à miser sur cette forme de développement. Pourquoi, alors, continuer de croire que les arts ne devraient pas être un domaine économique prioritaire? David Brooks, columniste au New York Times, conservateur et républicain, écrit dans son best seller The Social Animal que l être humain n est pas qu un être logique. Nous sommes animés de pulsions hautement intuitives et émotives qu il nous faut prendre en compte dans notre prise de décisions, quelles qu elles soient. Nous aurions été tentés d argumenter que c est pour cette raison que l art est si important. Mais c est peut-être plutôt pour cette raison que nous n avons pas encore collectivement compris que l art est si important... Notre émotivité nous entraîne peut-être à craindre les risques associés à l art? Rappelons ceci : on dit qu un photographe doit prendre 100 clichés avant d avoir une seule excellente photo. Les statistiques démontrent aussi que seul 2% de la population a un quotient intellectuel exceptionnel. Il en va de même pour les arts. Pour nourrir un seul talent exceptionnel, il nous faut soutenir 100 artistes. Pour développer un Cirque du Soleil, il nous faut 100 organismes culturels en quête de nouveauté. Et arrêter de tout calculer avec de l argent mais avec la part de bonheur que chacun nous apporte Donnons-nous le droit, en tant que société, d avoir une vie culturelle riche! [6] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

7 ANOUK DEY CANADA S INNOVATION GAFFE: REFOCUSING HOW WE ADDRESS THE INNOVATION GAP Canadian taxpayers, on average, spend over $1,000 a year fostering innovation. That s more than a new iphone or 70 stocks of rim. Is the return worth it? Not right now, but with the right policy changes, it could be. Conventional economic wisdom suggests that innovation benefits the average Canadian: innovation gains translate directly to productivity gains, which theoretically stimulate economic growth, and eventually higher wages (the best measure, arguably, of standard of living). Evidence, however, is difficult to find. Over the past thirty years, productivity in Canada increased by almost 40 percent and, during the same period, according to a Canadian Public Policy study, median wages grew less than two percent. Investment in innovation, it would seem, is not in the public interest; innovation policy is not public policy. (Of course, one could argue that Canadians have seen other improvements in their standard of living. Last time I checked, however, my garbage was being picked up less often and my gp didn t have time to see me.) The problem is that Canada s innovation efforts prioritize physical capital over human capital. We must change this. Consider the atm. It improved productivity output per unit of input enormously. Taking out cash went from a five-step process involving a (often inefficient) bank teller to a one-step, instant mechanized process. With this innovation, however, many bank tellers lost their jobs. Yes, taking out money became easier and maybe Canadians eeked out some additional productivity in those recovered 30 seconds. On the whole though, the average Canadian wage did not rise. I certainly wouldn t reverse the invention of the atm. I only cite the example to show that innovation has both positive and negative effects; it is important that we make policy with these in mind. Right now, Canadian innovation policy is like a big atm. In the name of improved productivity, the Canadian corporate tax rate has been cut from 28 to 16 percent since Underlying this public innovation policy is the notion that companies are more likely to buy expensive new equipment when taxes are low because they reap greater gains from each dollar of investment. Investment in physical capital, the rationale goes, improves productivity and the additional gdp is better for all Canadians. The evidence is not so compelling. Sure, the Canadian consumer may benefit from a more efficient machine that makes her shovel less expensive. But the substantive gains of this investment go to a narrow sector of the population, namely the factory owners who chose to invest in the machine. On the face of it, this might seem fair: they were the ones who took the risk, they should be the ones who receive the rewards. What, however, of the Canadian taxpayer who agreed to reduce the corporate tax burden under the assumption that the productivity gained from the private investment would outweigh the attendant loss of government services? She has seen no upgrade in her standard of living. A recent Mowat Institute study showed that the number of unemployed Canadian receiving benefits shrunk from over 80 percent in 1988 to less than half today. Most Canadians would benefit more from a revised ei program that helps them to update their skills and find a new job than from a factory with a new machine. Innovation policy, tailored properly, can lead to increased gdp and higher real wages. The trick is to focus one s efforts on human capital the knowledge and personality attributes that generate economic value as much as physical capital. Knowledge boasts as many benefits to society at large as any machine; an educated worker is worth perhaps more to the Canadian economy than a worker employing a smarter machine. There are two lessons here for Canadian innovation policy. The first is that innovation policy designed to enhance human capital is as effective and probably more politically viable than policy focused on physical capital (or policy that does not distinguish between the two). Better to invest in early childhood education than second-generation atms. The second is that innovation should not be left entirely up to corporations; government cannot simply play the role of architect, offering incentives in which corporations are left to engineer innovation. The result, too often, is the purchase of machines for tax benefits rather than improved productivity. Government must be more directly involved in fostering innovation by investing in the combined human capital of Canada s population directing resources toward early childhood education, helping to retrain workers who have lost their jobs and providing adequate post-secondary education. It is this type of innovation policy that is sustainable, that is public, and that will allow Canada to compete in the knowledge economy. [7] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

8 PHILIPPE-OLIVIER GIROUX LE GOUVERNEMENT FÉDÉRAL DEVRAIT ÉGALEMENT ENCADRER LES CLAUSES «ORPHELIN» La récente grève des employés de Postes Canada nous a rappelé que si les jeunes travailleurs québécois bénéficient d une certaine protection contre les clauses «orphelin», via la Loi sur les normes du travail, leurs collègues régis par le Code canadien du travail ne jouissent pas d une protection équivalente. Cette situation doit être corrigée. Il y a clause «orphelin» lorsqu une convention collective prévoit une disparité de traitement, généralement basée sur la date d embauche, entre salariés de qualifications égales. Parce qu elles réduisent la masse salariale d une entreprise pour les années à venir, tout en préservant les conditions de travail des salariés actuels, ces clauses font l affaire des patrons et des syndicats. Toutefois, elles imposent aux jeunes travailleurs des conditions de travail inférieures à celles de leurs prédécesseurs, puisque les nouveaux venus sont en général des jeunes. Non seulement ces clauses sont-elles un affront à l équité intergénérationnelle, elles nuisent également à la productivité des entreprises. En instaurant une «double échelle» de traitement, sans lien avec la performance des employés, les clauses «orphelin» polluent la dynamique interne de l entreprise et créent des tensions inutiles et improductives entre les deux catégories de salariés : démotivation des recrues, entrave au rapprochement et au transfert de connaissance avec les anciens, désengagement des nouveaux travailleurs envers leur unité syndicale, etc. Autant de facteurs qui peuvent même, à la limite, compliquer le recrutement de personnel par l entreprise. Les clauses «orphelin» jouent également un rôle important dans l appauvrissement des jeunes que l on constate depuis la fin des années En 2005, Statistiques Canada constatait que l écart salarial entre les travailleurs de moins de 35 ans et les travailleurs plus âgés s est nettement accru depuis vingt 20 ans. À titre d explication, les auteurs proposaient entre autres qu en réaction à l évolution technologique et à l augmentation de la concurrence, les employeurs canadiens auraient abaissé les salaires des travailleurs nouvellement embauchés, tout en maintenant ceux des travailleurs ayant plus d ancienneté, afin d entretenir le moral et la productivité de leurs travailleurs clés. Or cet appauvrissement des jeunes travailleurs, bien réel, se traduit par un affaiblissement progressif de la classe moyenne au Canada. En outre les clauses «orphelin» ne s appliquent pas seulement à la rémunération et aux horaires de travail des salariés, elles touchent aussi les modifications aux régimes de retraite. Depuis les début des années 1990, on constate une tendance claire des entreprises à faire passer leurs régimes de pension d une approche à «prestations déterminées» vers une approche à «cotisations déterminées». Cette transition se fait généralement au détriment des nouveaux employés qui perdent un mécanisme puissant de mutualisation du risque et voient leurs prestations passer d un montant garanti à un montant incertain. Sachant qu au Canada 92 pourcent des régimes de pension privés étaient en position de déficit à la fin de l année 2008, et à défaut de solutions alternatives telles qu une augmentation de la couverture des régimes de retraite publics ou la créations de régimes de retraite complémentaires, il y a fort à parier que la tendance ne pourra que s accélérer au cours des prochaines années, ce qui exposera d autant plus les jeunes travailleurs à ce genre de régression. Les leçons du Québec sont des plus pertinentes ici : En modifiant sa Loi sur les normes du travail, dès la fin des années 1990 pour interdire les clauses «orphelin», et en faisant un suivi serré des conventions collective signées depuis, le gouvernement du Québec est parvenu à réduire significativement le nombre de ces clauses dans les conventions collectives. Parce qu elles creusent l iniquité entre les générations, qu elles nuisent à la productivité des entreprises canadiennes et que leur fréquence n est pas appelée à diminuer au cours des prochaines années, le gouvernement fédéral devrait mettre en place un encadrement similaire. [8] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

9 MICHAEL D. HARTLEY TIME FOR AN ARAL SPRING? Pundits are passionately debating the causes of, triggers for, and the potential for further contagion associated with the Arab Spring. The debate has been too narrow. As long as the focus remains geographically or culturally centred, analysts will miss the point and fail to predict future events. As experts ponder its global reach, the element of time has largely been ignored. It is this element that neighbouring leaders in Central Asia have leveraged to their advantage to remain in power. Governments are most likely to be toppled by their own when the people finally decide that government is unjust or inept and beyond reform. There are plenty such examples of this beyond the Middle East and North Africa (mena). There are other factors in the equation that can lead to instability; for example, the government in power is no longer seen as beneficial to the country s elites i.e. economic, military and social, an angry population has the capacity and opportunity for mass gatherings and protest, or the international community sees the regime as expendable and chooses to not interfere with the revolutionary forces acting upon it. Such was the case in Egypt, Tunisia, Libya, Syria and Yemen. Apart from mob formation, all of these ingredients require time. The question then is if these, why not others? Holding the predominantly Muslim state variable constant, Central Asia appears to be a prime candidate for revolutionary activity. They are repressive regimes, riddled with corruption and have shown remarkable ineptitude. Yet the five states of Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan remain remarkably calm and business-asusual. Central Asians are less well off ($2778 gdp per person vs. $3886) and live in more corrupt states according to Transparency International (145th 166th vs. 62nd 147th). The Economist suggests they have a lower quality of life (96th 106th vs. 83rd 97th) than citizens of the mena countries, yet there has been nary a whisper of dissent. With an average tenure of 34 years, the mena leaders had collectively passed their sell-by dates. Ben Ali of Tunisia was the most junior amongst them and he was in power for 24 years. Yet in the Central Asian states, only Nursultan Nazarbayev (President of Kazakhstan) and Islam Karimov (Uzbekistan) are enjoying their 20th year of rule. President Imamali Rakhman (Tajikistan) has been at the helm since the end of the civil war in Gurbanguly Berdimuhamedov (Turkmenistan) took over from his totalitarian father in Only President Almazbek Atambayev (Kyrgyzstan) can claim any sort of electoral legitimacy. His appointment however, was due more to the departure of his predecessor in the aftermath of the 2010 civil war, than it was an expression of a functioning democracy. What explains the stability in these countries and sustains these regimes? Many Central Asians see their leaders as heroes of freedom and continued guarantors of their stability in a region known for turmoil. Consider it the Robert Mugabe affect ; their leaders still gain support form the elites and the masses by propagating the message of freedom and the threat of external attack. Across the mena countries, such messages had lost their legitimacy and their traction. Like Mr. Mugabe, the five Central Asian leaders have gone to great lengths to legitimise their holds on power and have persuaded their citizens that any change holds negative implications. It is this historical advantage that these leaders have over their counterparts in the mena region. Patronage and nationalism still run strong in Central Asia; they overwhelm concerns over corruption and the deprivations wrought on the masses. It will only be when the dual notions of nationalism and statehood wear out and the needs of the citizens are continuously not met, that dissent similar to that seen in the mena countries, will emerge. In Egypt, the young men who battled troops in Tahrir Square knew nothing of life before Mubarak. Although they benefited from rising education levels over the past 30 years, they remained stagnantly unemployed. Mubarak could no longer sell the stability and nationalism message successfully made to these protesters parents. This new generation saw the crippling social situation as the responsibilities of their leaders; it was Mubarak who paid the price. The Central Asia leaders may sit back and enjoy a wry smile at the expense of the Arab leaders misfortunes. Should the situation for the average citizen not improve, they may face a similar fate. The stakes at play are high in Central Asia and leaders there need to measure their moves carefully. Not respecting the power of time could mean a domino-style set of revolutions that could open up the region to the political and military skulduggery that dogged the region in the era of the Great Game. And this time, China is watching. [9] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

10 JORDAN ISENBERG A CURATIVE SCRIPT The federal-provincial health accord expires in 2014, putting more than $40 billion on the table for health care. The fiscal restraint Ottawa had been signalling marks a oncein-a-generation opportunity, not a threat, to reimagine health care, with financial accountability as a new cornerstone. Canada s health-care system rates 10th out of 17 developed countries in terms of quality, but we spend 1.8 per cent more of our gdp to finance it the equivalent of $63 billion in extra cash. As a fledgling medical and mba student, even I know we can do better, both for our patients and fiscally. Canada s hospital costs are nearly $55 billion a year and growing at a rate of 6 per cent, three times faster than the rate of gdp growth. Hospitals are our largest health expense and the best place to start demanding accountability. Our country s publicly funded, publicly delivered hospital systems create little incentive to innovate and drive performance improvement. This model forces hospitals to manage their budgets by rationing care rather than rationalizing it. If provincial governments were serious about managing health-care expenses, they would arm hospital administrators with the tools, ability and motivation to accurately calculate costs per procedure. Instead, our hospitals operate (financially) in the dark. Their current financial structure consists of a global budget, which is neither responsive nor reactive to the fluctuating requirements and health-care needs of their communities. Imagine this: a health-care system that is entirely publicly funded, where funding matches work delivered, tied to incentives that drive performance improvements, track patient satisfaction and review appropriateness of care. Under this system, delivery of services would be opened to both public and private organizations while remaining publicly funded, creating competitive pricing for health care under the Canada Health Act. The idea is neither revolutionary nor heretic, rather evolutionary and appropriate for our circumstance. Care for all patients would improve as efficiencies are captured and innovation is promoted. Today, ct and mri scanners idle in hospitals due to operating budget shortages while patients wait. In a competitive market, service gaps could be eliminated. Once the price per procedure is set by the government, the market public or private would identify and manage their unit costs.the fundamental issue in attempting to control hospital spending is that neither governments nor hospitals have agreed on a value per procedure. In the absence of value, there is no incentive for hospitals to understand their costs, because they do not get paid for each procedure performed. A publicly funded, open-delivery model would ensure the provision of quality and affordable health care to all Canadians. It would allow hospitals to understand and develop appropriate strategies on the mix of products and services to offer their communities, while driving down their cost per procedure as Holland and the uk have. This would not mark the beginning of health care s privatization; the same level of care would be provided to all. There is precedence for this approach, as all Canadian physicians run de facto private businesses whose services are negotiated and purchased by the government. What is needed are provincial directives outlining the price they are willing to pay per hospital act; a data-driven system that gives hospitals incentives to be cost-efficient, such as allowing them to retain surplus over cost; and validated models to forecast demand across hospital networks. Such a shift is not new. Both B.C. and Quebec have recently set up commissions to investigate the feasibility of this type of mechanism. But a commitment by the federal government to that new funding would be conditional on accountability, which could provide provincial lawmakers sufficient political capital to make broad financial changes to their hospital systems. Now, during the health accord s renegotiation, is the time to introduce accountability in our hospitals. It would empower hospitals to manage their mandates based on performance-aligned incentives, stressing a commitment to patient-centricity, quality and innovation all at the best price, and in the end, isn t this what we all want? [10] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

11 LOUISE KENT A WISE INVESTMENT IN AN UNSURE ECONOMY Canada is at a crossroads. With a lagging economy on our doorstep, an aging population, our closest neighbour plagued with a monstrous debt and a Conservative majority leading with right-leaning economics, it s time to assess what a growing gap between rich and poor really means for Canada s fiscal future. Taking care of the poor and their families is not a traditionally conservative view of tackling fiscal responsibility. However, it may actually be the best financial advice out there. A wider gap is said by the un to be a major indicator of unhealthy economies, and Canada s continues to widen. In Canada more than 14% of children live in poverty while the richest 20% of households control 70% of the wealth. The oecd recently stated that failure to tackle the poverty and exclusion facing millions of families and their children is not only socially reprehensible, but it will also weigh heavily on countries capacities to sustain economic growth in years to come. The top 100 ceos in Canada average $6.6 million annually, while the middle class shrinks and the lower class grows. Yet the National Council of Welfare states that spending the $12.6 billion needed to get all Canadians above the poverty line would result in savings of almost $24 billion. While the rich get richer, most are also blind to the reality: the face of poverty is Canada s youth. Canada s richest 1% has doubled their share income since the 1970 s and the richest 0.01% has quintupled it during the same period, leading many to believe that Canada is doing well. But this year many families are still struggling just to get by, their children being the most vulnerable. The economic potential of each child dwindles as the gap widens. The majority of low- and modest-income families do not have access to affordable, secure housing. It may seem too costly to go as far as providing housing for people in need. But after crunching the numbers, Calgary s business community found that it actually costs over four times more to pay for a year s worth of emergency services and lawenforcement for one homeless person than it costs to fund that same person s supportive housing for an entire year. Getting a 400% return on investment is a pretty sure bet. Canada would also get great return from investing in preventative, accessible healthcare in its poorest communities. When parents of low-income families struggle to put food on the table, it leads to health issues for their children. Canadian food bank use in 2011 was 26% higher than in 2008; 38% of those users were children and youth, though they represent only 20% of overall population. In fact, low-income children are more likely to encounter any kind of health-related problem than other children, and are more likely to have asthma, Type 2 Diabetes, malnutrition and suffer from mental issues. So how much do these poverty-induced health issues cost, and who pays? The poorest 20% of Canadians are responsible for more than 30% of publicly funded health expenditures, while the wealthiest make up less than 15%. If low-income Canadians had comparable health expenditure rates to the wealthiest 20%, Canada could save approximately $7.6 billion per year more than one fifth of the deficit in 2010/11. Investing in preventative healthcare for the poor would seem to help quite a bit. Poverty is linked to low literacy rates in Canada. Lower education is linked to more crime. In Canada today, being tough on crime is top priority; new spending on jails are estimated to cost some $9.5 billion in years to come. Yet studies show that after-school programs may be more effective than jail, preventing crime in the first place. As accessibility to social programming increases, it leads to higher levels of education and therefore less crime. Compare the average annual costs per person: incarceration at $110,000 versus social programming at between $10,000 and $20,000. Investing in prevention comes at almost a tenth of the cost of the treatment and gives Canada a more engaged, educated citizenry for its future. Between the extra costs of housing, healthcare and crime, it is clear that Canada needs to focus on investing in the poorest and shrinking the income gap If things don t change, Canada s gap between the rich and the poor will continue widening, and we ll all pay. Just look to our neighbours to the south to see what may come. Regardless of what way you lean, the numbers speak for themselves. [11] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

12 MICHAEL MARIN POOR CORPORATE GOVERNANCE REGULATION LEAVES CANADA S FINANCIAL SYSTEM VULNERABLE Don t be fooled. While Canada dodged the worst of the Global Financial Crisis, we may not be so lucky next time. Behind our supposedly sound economic fundamentals are woefully inadequate corporate governance rules that threaten to wreak havoc on our financial system, and in turn, the livelihoods of millions of Canadians. We have a false sense of security about the health of our financial system that stems from an incomplete understanding of what sparked the crisis in the us in We like to think our financial regulation is superior and immune to Wall Street s problems. True, lax financial regulation, as well as poor enforcement, played a major role in the us crisis. But that s not the whole story. The Financial Crisis Inquiry Commission established by Congress to look into the causes of the crisis concluded dramatic failures of corporate governance were also to blame. The Commission documents a culture of greed and irresponsibility, captured best by the phrase I ll be gone, you ll be gone, used by Wall Street operators to justify ultra-risky investments. Many of Wall Street s top managers did not understand their out-of-control institutions. Lehman Brothers Board of Directors included an actress, a theatre producer and an admiral, but no one who understood financial derivatives. Corporate governance regulation is supposed to prevent such breakdowns by creating the right conditions and incentives for prudent management, even in the absence of technical regulation like capital or disclosure requirements. To be successful in an interconnected and complex financial system, corporate governance regulation must have three key elements. First, it must ensure that directors and officers of publicly-traded companies and financial institutions have sufficient knowledge and experience. Second, it must articulate the scope of their obligations not just to shareholders, but also the millions of ordinary people who are vulnerable to bad corporate decision-making. Third, it must ensure that directors and officers are held accountable for misconduct by providing meaningful and accessible remedies to those affected. us corporate governance regulation didn t prevent the failures on Wall Street. But are the rules that govern Bay Street likely to be more effective? The short answer is no. Neither the Bank Act nor the Canada Business Corporations Act includes an accreditation procedure to ensure that directors and officers have sufficient knowledge and experience to supervise the operation of the institutions entrusted to them. According to both statutes, almost anyone (apart from children, people of unsound mind, and bankrupts) qualifies for the job. The corporate governance requirements of stock exchanges and securities regulators are vague and voluntary. The tsx says managers should have adequate experience, but doesn t define or police this requirement. Provincial regulators like the Ontario Securities Commission have corporate governance guidelines, but companies are free to ignore them as long as they make a disclosure to that effect. Even the Office of the Superintendent of Financial Institutions (osfi), which has extensive powers to oversee banks and financial institutions, doesn t impose minimum requirements with respect to the education and experience of directors and officers. Apart from their qualifications, Canada s corporate governance regime is plagued by uncertainty about the duties of directors and officers. While the Supreme Court of Canada has twice held that directors and officers have obligations to multiple stakeholders, the nature of these is unclear. This is compounded by the absence of remedies for ordinary Canadians harmed by reckless corporate behaviour; corporate law generally limits lawsuits against directors and officers to shareholders and creditors. We ve already seen the dangers of the Wall Street mentality in Canada. For years, so-called financial entrepreneurs exploited regulatory loopholes to peddle risky short-term debt called Asset-Backed Commercial Paper (abcp). In August 2007, when the risks associated with abcp came to light, the market froze and some $30 billion was put in jeopardy. The fact that the Caisse de dépôt et placement du Québec Canada s largest pension fund had $13 billion in the abcp market raises serious questions about the management of our financial institutions. No matter how vigilant they are, Canadian regulators won t always be able to stay ahead of the latest financial scheme; loopholes in technical regulation are unavoidable. Reforms must focus on ensuring that the decision-makers within our increasingly powerful financial institutions and publicly-traded companies the directors and officers are skilled, responsible, and accountable. You wouldn t put your life in the hands of a doctor who hadn t gone to medical school, passed the qualifying exams, or who couldn t be sued for negligence. So why should you treat your financial well-being any differently? [12] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

13 IAN PHILP CAN DEMOCRACY ADAPT TO THE NEW NORMAL? In population biology, an environment s carrying capacity is the number of individuals it can sustain given their demand for resources. Animal populations that rise above this threshold are harshly corrected usually through starvation until numbers have decreased. But what about us? Within the last century the world has grown by five billion people. Are we bound by natural limits, or do our vast intelligence, technological prowess and capacity for democratic decision-making allow us to avoid this fate? In the early 1970s, a group of intellectuals known as the Club of Rome sat down to consider this question. Their 1972 book, The Limits to Growth, made ominous predictions about a perfect storm of human population growth and resource scarcity, and a looming population correction. One of the Club s members, Paul Ehrlich, went so far as to make a public wager about resource scarcity with the conservative economist Julian Simon. Ehrlich and Simon selected five key commodity metals, recorded their prices in September 1980, and bet whether the resources would be more or less expensive a decade later. If the bundle of metals rose in price, Ehrlich would win; if they were cheaper, Simon would win. Ehrlich lost the bet: the price of all five metals declined between 1980 and Was this conclusive proof that humans are not subject to resource constraints? Hardly. Two decades later, many are revisiting the outcome of the Ehrlich-Simon wager. Jeremy Grantham a respected fund manager whose investment firm has over $100 billion under management has crunched the numbers, and believes Ehrlich should have insisted on a longer accounting period. The price of the same bundle of metals that dropped in price between has risen sharply since then, as have almost all commodity prices since Grantham looked at the price of 33 essential commodities during the 20th century and found an average price decline of about 1% per year. He then looked at the first decade of the 21st century and found a sharp, mounting rise in prices across the board. Is the price spike of the last 10 years an anomaly, Grantham wondered, or have we moved to a new normal? In other words, what are the odds that we ll comfortably return to the 20th century falling resource price trend? Statistical analysis shows that the odds are very long: depending on the commodity it varies between 100 to one (for wheat), 50,000 to one (for coal) and more than 2,000,000 to one (for iron ore). Grantham has dubbed this the Great Paradigm Shift. The Club of Rome s premature prediction severely damaged the credibility of limits talk, but their basic premise is undeniable: at some point, the exponential expansion of the human population will hit a wall of resource scarcity. When the Club made its prediction in 1972, world population was roughly 3.4 billion; in 2012 we re at 7 billion and rising. In the intervening years, a much larger swath of world s population (think China) has adopted the resource intensive Western lifestyle; another 3 billion are predicted to join the global middle class between now and The other great development of the last 40 years, however, is the rapid spread of democracy around the world. Shouldn t democratic decision making allow us to intelligently sidestep this problem? Unfortunately, it may not. Democracy is a superb system of government, but it is dependant on rising prosperity to smooth out its rough edges. Politicians pay for compromise in democratic societies using the currency of abundance: the promise of a chicken in every pot, a fatter one each year. Now, consider the paradigm shift of a democracy trying to come to terms with little to no growth: the idea that the pie may have grown nearly as much as it ever will. One look at the unrest roiling the Eurozone as it faces the prospect of much-needed austerity measures, and one wonders whether democracies are capable of the self-restraint required to meet this challenge. The state of North American politics is also a reflection of how hard this news is to accept: for the most part, we are in denial over these looming limits. Climate change is a perfect example: capping carbon emissions would mean an end to limitless, consequence-free growth, therefore the hard science behind it must be either a conspiracy or a hoax. In the United States, serious presidential candidates now wear their denial of the growing body of scientific evidence around limits to growth as a badge of honour. As climate and resource pressures intensify, we can expect the rhetoric of denial to escalate in lockstep. But the Great Paradigm Shift has arrived, whether we like it or not. Canada would do best to figure out how our democracy and our prosperity will adapt to the new normal. [13] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

14 SADIA RAFIQUDDIN BILL C-31: SMUGGLING HUMAN RIGHTS Last fall, Minister of Citizenship, Immigration and Multiculturalism Jason Kenney announced that Canada would withdraw from the United Nations process to address racial intolerance. He quoted Prime Minister Harper: Canada has a purpose in the world. That purpose is no longer just to go along and get along with everyone else s agenda Now we know where our interests lie and we take strong principled position in our dealings with other nations, whether popular or not. We may advertise these principles abroad but, at home, they are disappearing. Consider Bill c-31 before the House, otherwise known as Protecting Canada s Immigration System Act. Though it seems to protect Canada from human smugglers and abuse of the immigration system, in reality, the Bill allows the federal government to detain those seeking refugee status, particularly those who come to Canada via boats or third parties, fleeing persecution, violence, torture and rape. The Bill not only undermines Canada s international obligation to protect refugees but also contravenes the Canadian Charter of Rights and Freedoms. It underscores a dangerous trend in Canadian foreign policy that closing our doors to the world s most vulnerable is an acceptable way to protect our national interests. The Bill has four main problems. First, the Bill imposes mandatory incarceration of refugees. Those who are suspected of smuggling can be held as well as those in the process of being identified. The decision- making responsibility falls exclusively under the purview of the Minister of Immigration, Citizenship and Multiculturalism. Secondly, the Bill would not allow a review of the imprisonment and detention by the Immigration Review Board for up to a year. Constitutionally, reviews of detention must happen within 48 hours. The Bill will create a second class of refugees. It will deny those who have achieved asylum status the right to travel documents or the ability to apply for permanent residency for five years. Without permanent residency, refugees are unable to sponsor family members. All of these problems target refugees. None of them target human smugglers. Finally, under the Bill, refugees can be forced back to the country they came from, no matter how long they have lived in Canada, if the Minister of Citizenship and Immigration deems the country of origin safe for return. Proposals such as Bill c-31 have been condemned in places such as Australia where refugees who arrive without legal documents are detained, including children. Despite harsh measures, these policies have not prevented human smuggling or the arrival of refugees fleeing desperate situations. In December 2010, a boat carrying refugees capsized off Australia s shores, killing 28 people and wounding many more. The federal government would be wise to learn from its own past experiences. There are several examples that have left a black mark on Canada s history as a place of refuge. During WWII, the federal government sent over 22,000 Japanese Canadians to internment camps and Jews fleeing persecution in Nazi Germany were turned away from safety. The federal government would also be wise to learn from Canadians, particularly those who arrived here as refugees or are the children of refugees. My parents arrived in 1990 as refugees from Pakistan. Though proud of their Pakistani heritage, they have a tremendous sense of gratitude for the opportunities Canada provided for their three children. However, they never failed to remind of us of our responsibility to contribute to making it a better place for the next generation and the world. Refugees may seem to be a burden on the system but their long term economic, social and political contributions far outweigh the immediate cost. On the surface Bill c-31 may aim to address the issue of human smuggling but in reality it will only harm refugees. It s time to stop pretending that Canada is a leader on human rights issues and start acting like one. It s time for Canadian leadership to reaffirm its commitment to refugee rights. [14] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

15 KAL SUURKASK THE CASE FOR HYDRO S HOTTER SISTER While other governments look for ways to add renewable resources to their predominantly fossil fuel-based electricity mix, British Columbia has the geographical advantage of being able to draw from not just one but two major renewable energy sources. B.C. legislators and bureaucrats who are accustomed to riding the wave of hydroelectric power should consider inviting another one of nature s great gifts to the party: Hydro s hotter sister, Geothermal. In the 1960s, bc Premier wac Bennett nationalized bc Electric to generate and distribute the province s power. Ever since, boosters have been championing hydroelectricity for its renewability, abundance and affordability. This has led to the development and expansion of major hydroelectricity stations across the province. Today, bc Hydro generates 95% of its electricity from hydro facilities. bc s population is on the rise and energy demand is increasing. According to bc Hydro, demand for electricity will grow by up to 40 per cent over the next 20 years. This could mean higher electricity prices for bc residents, an unappealing prospect for both politicians and ratepayers who have come to expect powering their homes with cheap electricity. The good news is that there are geothermal deposits throughout the province waiting to be tapped, collectively providing a large new electricity production resource. bc is located in a geographical hot spot, dubbed the Pacific Ring of Fire, where the most active geothermal activity in the world occurs. This means easy access to an alternative source of electric power and energy security for years to come. Geothermal is renewable and abundant. A recent report by the Geological Survey of Canada highlights the enormous geothermal energy resources that could supply Canada with a renewable and clean source of power. Another study released by smu Geothermal Laboratory and Google. org suggests that the geothermal energy potential in the United States is 3 million megawatts (mw), more than 10 times the amount of energy currently produced from coal. Like Hydro, but unlike wind and solar, geothermal has a reliable and consistent production profile suitable for base load electricity requirements. Simply put, geothermal power can meet everyday electricity needs with minimal environmental cost. Similar to its Western Climate Initiative (wci) partner, California, and other geothermal producers such as New Zealand and the Philippines, bc can become a major player in geothermal generation. The province then would be able to draw upon two major renewable energy sources, positioning it to become a major exporter of coveted clean electricity. The province would meet its own energy demands while selling its surplus to its neighbours to the south. If the tremendous geothermal potential is to be realized, however, an enabling policy and an equitable regulatory regime need to be in place. At minimum, policy would need to recognize the value of geothermal and allow it to play on a level playing field with traditional sources of energy. It would also recognize the capital nature of the industry and the risks involved in exploration and development. Like natural gas and oil exploration, drilling costs a pretty penny and involves risk, such as the risk of drilling dry holes. Policy initiatives aimed at mitigating risk and encouraging development might include funding and supporting demonstration projects, ensuring accessibility to permits and leases, and public and private partnerships. In the end, we need to decide. It is clear that Hydro has a much hotter sister. But are we going to invite her to the party? [15] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

16 JEAN-FRÉDÉRIC LÉGARÉ-TREMBLAY QUAND ÉTUDIER LES CLASSIQUES DEVIENT PAYANT L éducation n est plus qu une fin en soi: elle se veut désormais aussi «utile». Branché sur le marché de l emploi, le système scolaire est aujourd hui soucieux de former d abord et avant tout de futurs travailleurs. Pas surprenant alors que l éducation dite libérale, celle qui étudie les classiques afin de transmettre une culture générale et humaniste, soit désormais considérée comme dépassée et inutile. Mais dans notre époque entichée de l «économie du savoir», les décideurs du milieu de l éducation seront sûrement heureux d apprendre que l éducation dite libérale est profitable. Littéralement. Plonger dans les classiques de la philosophie, de la littérature, de l histoire ou de la science restera toujours une fin en soi pour former des citoyens plus libres parce que capables de penser par eux-mêmes. Or une telle éducation permet également aux futurs diplômés de mieux tirer leur épingle du jeu sur le marché du travail. En clair, les ministères de l Éducation d ici et d ailleurs ont tout intérêt à revaloriser l éducation libérale : ils obtiendront avec elle un meilleur retour sur leur investissement. La «valeur» de ce type d éducation se vérifie : il n y a qu à comparer les salaires empochés par les diplômés. Selon des études menées à l Université York à Toronto, les travailleurs qui ont bénéficié d une telle éducation se démarquent à long terme sur le marché de l emploi. La plupart des études passent à côté de ce fait, notent les auteurs, parce qu elles s intéressent exclusivement au taux de placement des étudiants à leur sortie immédiate des bancs d école. Ces études révèlent que les salaires des diplômés universitaires en sciences sociales ou en humanités grimpent plus rapidement, et même plus haut, que ceux de la plupart de leurs confrères et consoeurs qui accrochent sur leurs murs des diplômes obtenus dans d autres matières. Même le diplômé en commerce qui a pourtant un avantage salarial lors de ses premières années sur le marché du travail gagne moins, en bout de ligne. Dans la cinquantaine, le travailleur diplômé en sciences sociales empoche un salaire de $ par année (en dollars de 1995), tandis que le diplômé en commerce n encaisse que $. Seul l ingénieur a un avantage d ailleurs très léger sur l ancien étudiant en sciences sociales, avec $. Les chercheurs ont donc raison d affirmer qu un diplômé en commerce qui dispose en plus d une formation en littérature, en philosophie, en sociologie ou en histoire, aura plus de chances de succès que son collègue n ayant en main qu un diplôme d une école de commerce. La pertinence de l éducation libérale est d ailleurs reconnue dans les plus hautes sphères du monde corporatif. En 2000, des chefs d entreprises technologiques canadiennes, qui sont pourtant les plus susceptibles d engager des techniciens à la fine pointe du savoir pratique, se sont portés à la défense de ce type d éducation supposément dépassé. Les patrons de Bell Canada, ibm, Xerox Canada, Compaq Canada et bien d autres déclaraient : «une éducation libérale développe des habiletés et des talents de plus en plus estimés par les entreprises modernes. Nos compagnies évoluent dans un état de flux constant. Pour prospérer, nous avons besoin de penseurs créatifs à tous les niveaux de l entreprise, à l aise pour jongler avec des décisions dans un contexte plus large. Ils doivent être capables de communiquer de raisonner, de créer, d écrire et de parler pour des objectifs variés : pour engager, entraîner, gérer, mettre en marché et décider. En bref, ils assurent le leadership.» Paradoxalement, la spécialisation dans la formation scolaire va à l encontre même des intérêts de ceux qui en font la promotion et de ceux qui la choisissent. Car dans une économie que l on dit de plus en plus mondialisée, complexe et en perpétuelle mutation, le spécialiste celui qui en sait beaucoup sur peu est le plus menacé. Il est le plus susceptible d être laissé pour-compte par le marché du travail, car il sera mal équipé pour s adapter lorsque les besoins techniques pour lesquels il a été exclusivement formé seront dépassés. À l inverse, ceux qui disposent d une culture générale plus vaste ont de meilleures chances de réussir. Leur tête n ayant pas été formée qu aux théories, concepts et techniques au goût du jour ou étroitement liés à leur discipline, ils seront plus à même de s adapter aux paradigmes qui seront en vogue dans 10, 20, 30 ans. Non seulement pourront-ils mieux s adapter, mais il y a aussi de fortes chances qu ils soient les moteurs de l innovation, si prisée dans notre «économie du savoir». Il peut paraître contre-intuitif que les acteurs du changement soient ceux qui ont pris la peine de cogiter sur des textes pouvant remonter jusqu au Ve siècle avant Jésus-Christ. Mais la philosophe Hannah Arendt avait raison: l éducation est conservatrice par essence; elle relaie le savoir hérité aux nouvelles générations pour leur permettre de refaire le monde à leur tour. [16] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

17 ERIC TRIBE CANADA S VC INDUSTRY OP-ED For as long as I can remember, I ve been told, If at first you don t succeed, try, try again. With its emphasis on the need for persistence, the expression comes to mind when considering the ongoing struggles and challenges of Canada s innovation efforts, particularly in regards to our venture capital industry. This is not to say we have not been trying, we most certainly have, but despite our best efforts and select success stories we don t appear to have cracked the code. According to the Business Development Bank of Canada (bdc), Canadian venture capital fundraising and investments have both rapidly declined over the past decade, by a concerning 16% and 12% per year, respectively. Even more startling is that over the same timeframe investors have received a -5% return on investments. Although there have been many attempts to support venture capital within Canada through public policy, it unfortunately has not yet blossomed into the success story many would love to see. The Institute for Competitiveness and Prosperity recently published that Canada has consistently lagged global peers both in terms of quality and quantity of venture capital investments, particularly as compared to the United States. It strikes me that the fiscal conservatism that Canada has been praised for throughout the financial crisis, which has helped support our financial sector, may also be hindering our Venture Capital industry. If this is the case, it becomes interesting to consider if we should in fact double down in Venture Capital or not? Would Canada be better off risking more for the chance to fund the next Facebook, or avoiding the risk and hope to be praised again for its fiscal prudence if the tech sector falters? Only time will tell. Last year, I had the opportunity to work abroad, spending half of 2011 working in Israel. The country is often cited as one of the most innovative cultures in the world, representing 4 5% of worldwide vc investments throughout the majority of the 2000s. Among the many factors cited contributing to Israel s success in innovation is a culture that is willing to take risks, learn from failures and persist until successful. Although thinking about what an impact culture can have on innovation sounds almost as futile as discussing how an enigma influences ambiguity, with both concepts equally difficult to define, it was interesting to reflect on some of the cultural differences observed. For example, when reflecting on the amount of criticism rim has received in recent months, it has been disheartening to see many people effectively giving up on the company. For some it is unclear if they are giving up because they believe that rim would have adapted by now if they were more innovative, or if their aversion to risk has them prepared to cast doubt at the first sign of failure. Regardless of the cause, in Israel there are many stories of times when failure was truly not an option and this necessity only further fueled their innovation. Advancements in agriculture, transportation, high-tech sectors and more have been facilitated through a culture that felt more accepting of failing fast but learning quickly. Ideally, while some Canadian companies and vcs have faced challenges, they too can learn to adapt quickly moving forward. According to a recent global survey conducted by Deloitte, Canadian venture capitalists expect the domestic Venture Capital industry to continue to contract progressing, while those in emerging markets, including China, India and Brazil, expect growth over the next five years. The same survey showed Canadian vcs were amongst the most critical in the world, citing our lack of an established venture capital community, and difficulty in achieving successful exits from investments as our two most unfavorable factors. As Canada continues down the path to building a knowledge-based economy, a strong venture capital industry appears critical to accelerate our growth and unfortunately we re not there yet. While it may be a problem that we have repeatedly struggled with and are perhaps somewhat frustrated by, it is not one that we can afford to give up on. Canada needs to display the resiliency characteristic in the entrepreneurs we wish to encourage; while we may have struggled to date, our success story could be right around the corner. [17] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

18 JOANNA WONG IN CHINA, CANADA NEEDS RE-TWEETS, NOT MERCHANT FLEETS Internet use in China is developing at an explosive pace, but Canada s online presence in the language of the world s fastest growing market is practically non-existent. What s one of the first things we do when we look into a new opportunity? We Google it. In China, it s the same, except they Baidu it. Type in the Mandarin words for invest and Canada into the popular search engine Baidu, and an official Canadian government website doesn t appear until the 25th link. By comparison, a search for invest and Australia leads directly to a government website slickly tailored for exporters, buyers and investors. Lack of easy access to information in Mandarin about investment, education and immigration in Canada is weakening our relationship with China. The result is missed jobs, missed connections and missed profits. Consider that, in the immigration industry alone, mainland China has an estimated 400 private consultant firms with multimilliondollar revenues. While the rise of this business is complex, it s fed in part by the dearth of Mandarin language resources. In the space of a decade, China s netizens, as Internet users are called, have swelled to 457 million from 22 million. Put another way, the number of Chinese people online today is about equal to the population of 13 Canadas. Yet, despite the obvious opportunity, our government, institutions and businesses have been agonizingly slow to build a strong identity online in Mandarin. Big multinationals such as Nike and L Oréal clued in to the potential of China s online world years ago, and have successfully flogged their wares using the Chinese equivalents of Facebook, YouTube and Groupon ever since. On China s version of ebay, Taobao, 48,000 products sell every minute. With Chinese investors and officials surfing their smartphones 24/7 and broadband reaching deeper into the rice fields every day, Canada s lacklustre Internet brand is losing us business, influence and the chance to pull ahead in what will soon be the world s largest economy. Given that Canada is home to 1.3 million ethnic Chinese and residents, and welcomes 24,000 new immigrants from China annually, we could easily be a leader in a smart, relevant Mandarin content online. In Beijing, the Canadian embassy recently made the leap into the Chinese digital age when it opened an account on Weibo, China s answer to Twitter. Weibo boasts 140 million users, including Tom Cruise. Since launching its Weibo account last summer, our embassy has collected an impressive 132,000 fans and even advertises the website on a prominent billboard outside the building, on a busy central road. The embassy s creative use of Weibo is a promising new development for public diplomacy in China. Canada s ambassador, David Mulroney, told The Globe and Mail that this online interaction with ordinary Chinese citizens is the single most important tool we have in understanding what this emerging generation in China is all about. It s true that China has persistent and sometimes severe restrictions on Internet freedom, with popular social media such as YouTube and Twitter permanently blocked by what has been dubbed the Great Firewall of China. Yet, despite censorship, the country s online universe has emerged as a thriving world of creativity, dialogue and expression. It may, in fact, be the one space where true international dialogue about social issues and human rights is permitted to unfold. We re not the only ones missing the boat the United States, Germany and France have all been slow jumping into China s digital age. But if we want our second-largest trading partner to remember our name, we need re-tweets, not just merchant fleets. With a smart strategy, there s room for a powerful Brand Canada to grow and flourish in Mandarin online. To connect more effectively with China on the Internet, we need to see government offices using popular domestic platforms, Canadian businesses building websites in Chinese, and universities recruiting students where they hang out online. More communication means more collaboration. As Internet queries are increasingly typed in Mandarin, let s make sure China is looking into opportunities that include us. In a Chinese future, Canada should be at the top of the search list. [18] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

19 PAUL M. YEUNG CANADIAN PENSION REFORM REQUIRED Last year, the C. D. Howe Institute reported that if current saving trends continue many Canadians will not be able to retire. The number of Canadians whose savings will not be enough to replace at least three-quarters of their pre-retirement income will triple over the next 40 years. Policies must introduced to increase retirement savings levels; if not, the financial shortfall will have to be met by all levels of government. Already facing rising health care costs, Canadians will not be able to rely on services provided by governments today. The federal and provincial governments must consider policies that will increase the number of Canadians saving for their retirement. The longer Canada waits to address this issue, the greater the cost of finding a solution. Canadians should be alarmed that only 35 per cent of workers participate in an occupational pension plan, saving for their retirement through their employer; a recent survey finds that 95 per cent of small businesses of 2 to 25 employees do not offer any form of pension/ retirement savings plans to their employees. Both the federal and provincial governments continue to discuss the introduction of a Pooled Retirement Pension Plan (prpp) with various private sector stakeholders. The objective of a prpp is to increase the number of Canadians saving for retirement, and provide employees of small and medium enterprises with the opportunity to participate in a simple and straightforward retirement instrument. Raising contribution levels to the existing Canadian Pension Plan (cpp) is an inadequate response to address the pension shortfall; the business community has argued that increasing the cpp would simply amount to an additional tax on the employer, and one that would hurt a delicate economy. While the Canadian Labour Congress has called for doubling of the cpp benefit, the Canadian Federation of Independent Business estimates this would result in the loss of 1.2 million person years of employment, and wages will be forced down roughly 2.5 per cent. In comparison, the proposed prpp model has minimal cost implications for business owners. After the initial set up, the administration of prpp accounts would be automatic and could be managed by financial institutions as easily as payroll deposits. Last year, the Task Force on Financial Literacy reported that Canadians are woefully unprepared for retirement owing to a lack of awareness of the need to save for the future or because they don t understand the pension system. While there is no shortage of financial products or strategies, only 44 per cent of Canadians surveyed had sought retirement advice. The structure of proposed prpps vary, but should have the following three characteristics to maximize effectiveness: Mandatory Enrolment: All employees should be automatically enrolled in a prpp through their employers, but individuals can opt out. This plan will address those who are indifferent to savings, or would not otherwise contribute to their existing retirement plans, such as Registered Retirement Saving Plans or Tax Free Saving Accounts. Portability: Any prpp must be portable, staying with employees whether they change employers in the same town or across the country. This will keep financial administration fees to a minimum, and not disrupt individual retirement savings. Some prpp models propose having employee savings and the administration tied to a financial institution chosen by the employer. However, this will significantly increase the complexity of the transaction and the administration costs. It is estimated that Canadians will change jobs an average of five to seven times over their lifetime, and this number could increase due to greater labour mobility. Economies of Scale: The large number of Canadians enrolled through new prpps will keep administration fees low and investment options relatively simple. All participants in prpps should understand how much they are saving for their retirement, and management fees associated with prpps should be clear. While the immediate future of the global economy remains uncertain, Finance Minister Jim Flaherty and his provincial counterparts must agree to significant and bold policy changes that will increase the retirement saving levels, thus protecting Canada s future prosperity. The introduction of a prpp model is a good first step to address this serious pension shortfall; in the long run, all Canadians must gain a greater level of financial literacy and responsibility over their personal finances. [19] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

20 PATRICK BOILY Originally from the small bilingual community of La Broquerie, Manitoba, Patrick is currently completing his Master s in Public and International Affairs at the Glendon School of Public and International Affairs at York University. He completed a Joint Honours Bachelor of Arts degree in Political Science and Canadian Studies at McGill University. During his time in Montreal, Patrick was involved in numerous student organizations, including serving as Editor in Chief of a student run think-tank Pearson House and serving as Vice- President Academic of the Arts Undergraduate Society. He focused his undergraduate studies on issues relating to public policy and the judiciary, writing his thesis on the Supreme Court of Canada s interpretation of Section 23 of the Charter of Rights and Freedoms. He also worked as an assistant at the McGill Institute for the Study of Canada helping organize conferences and assist in research. Taking a year off between his B.A. and Master s, Patrick worked for a year as an intern at the Manitoba Legislative Assembly. His research portfolios included Agriculture, Infrastructure and Transportation, Local Government, Water Stewardship and Conservation. In his spare time, he writes a blog about provincial and federal politics. Originaire de la petite communauté bilingue de La Broquerie au Manitoba, Patrick est couramment en train de compléter sa maîtrise en affaires publiques et internationales à l École d affaires publiques et internationales de Glendon à l Université York. Il a obtenu un baccalauréat en arts avec une double spécialisation en sciences politiques et études canadiennes de l Université McGill. À Montréal, Patrick s engagea dans divers groupes étudiants. Il fut rédacteur en chef pour Pearson House, un organisme de recherche sur les politiques publiques créé par des étudiants, et il fut aussi vice-président académique de L Association étudiante de la Faculté des arts de premier cycle de l Université McGill. Durant ses études, il se concentra sur la relation entre les politiques publiques et le système judiciaire et sa thèse examina l interprétation de l article 23 de la Charte des droits et libertés par la Cour Suprême du Canada. Patrick travailla aussi comme assistant à l Institut d études canadiennes de McGill. Entre son baccalauréat et sa maîtrise, Patrick travailla en tant que stagiaire à l Assemblée législative du Manitoba. Il œuvra sur les dossiers d agriculture, infrastructure et transportation, d administration locale, de conservation et de gestion des ressources hydriques. Patrick est aussi l auteur d un blogue sur les politiques provinciales et fédérales. [20] 2011 FELLOWS OP-ED ARTICLES ÉDITORIAUX DES FELLOWS

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