Canadas Economic and Political System in Context - Research Paper Example

CANADA’S ECONOMIC AND POLITICAL SYSTEM IN CONTEXT An established democracy and at the helm of one of the world’s strongest economies, Canada neighbors the United States to the North and remains one of the most important countries in the Western Hemisphere. It has been suggested that Canada is a liberal capitalist democracy and the following aims to provide a thorough analysis of whether the Canadian state, in its current formation, represents a liberal capitalist democracy. A variety of theories will be utilized in order to thoroughly understand whether this politico-economic model suits the Canadian state. The following will explore liberal democracy, socialism and the power elite model to determine which politico-economic model is most appropriate in the Canadian context. Liberal Democracy Liberal democracy is a political system found throughout the developed countries of the Western world and one in which there are both adherents and detractors. Liberal democracy is seen by many as the ideal political system which has its roots in the ancient Greek traditions, while others feel that it is not the most effective form of governance. What is liberal democracy? For many, liberal democracy is characterized by universal suffrage, free and fair elections, and an open society in which a plurality of opinion is respected. In this context, the exercise of political power and transfer of this power occurs through peaceful means. In much of the world, democracy ensures political stability and democratic rules of governance denote political legitimacy. According to the tenets of democracy, everyone is given a voice and the elected political officials in a democratic regime derive legitimacy from the fact that everyone has been given a voice in the political process. Due to the fact elections are perceived as being free and fair, the political party or regime which is elected derives legitimacy from the fact that the election was fairly contested. Liberal democracy has led to the spread of stable political regimes in countries such as Great Britain, Canada, the United States, and Australia. Now that we have established that Canada exhibits a liberal democratic structure how does this relate to capitalism? (Hobsbawm, 101-118). Liberal capitalism is comprised of two parts: the first is a healthy, functioning democracy. In a democracy, each citizen has the right to select their government. The second component is a laissez-faire market, where the government seldom intervenes except to provide legal and ethical guidance. The government may also regulate companies where the start-up costs are prohibitively high, like power companies. Therefore giving companies that are not comprised of wealth, an opportunity to be successful and pursue future goals that were established.. In some instances, the government should intervene. In others, the government can overstep their bounds and interfere with a functioning capitalist market. Canada may be a liberal capitalist because it gives freedom to our citizens to do what they want to, to a certain extent but the government can also decline and make decisions for us when needed. The antecedents for liberal democracy have been explained as has the relationship between liberal democracy and capitalism. We now turn to exploration of whether the Canadian state could be described as long into a wholly other political system (See Harvey, 2007). Socialism The United States is presently undergoing one of the most contentious battles since election of Barack Obama. President Obama's desire to fundamentally transform the American healthcare system is seen by some within the US political system as state-centric socialism and the desire of President Obama to import the dreaded ills of communism to the United States. If one watched CNN, ABC or any host of other major American television stations during the healthcare debate, one would think that Canada is a modern socialist paradise. Accordingly, the alleged socialism found in Canada is seen by many Americans is something which is harmful and not something that they want to emulate. Socialism is heavily influenced by Marxist teachings and a belief in the inherently exploitative nature of capitalism. What is socialism and is irrelevant in the Canadian context? Socialism is an ideological paradigm which argues that egalitarianism and equality should reign supreme and that the state has an important role to play in the provision of services as well as in the provision of goods. Socialism has traditionally advocated a strong approach to the state’s control over the means of production and has been critical of concepts of private property private ownership and capitalism in general. The world socialist movement was headed by the Union of Soviet Socialist Republics (U.S.S.R.) for nearly 90 years but today's socialism seems to have diminished its international appeal in light of the fall of the Berlin Wall in 1989 as well as the implosion of the Soviet Union in 1991. Despite this, socialism continues to be the guiding force for politics in China, Vietnam, Cuba and a handful of other countries throughout the world. What explains this socialist charge of the great White North? Is Canada truly a socialist country? It is to this question that we now turn (Strayer 193-196). Canada has historically given the state much more influence in the economic affairs of the country then has been witnessed in the United States. Canada, from an economic perspective, argues for less of a laissez-faire economic approach to the management of the economy and the state is actively involved in the provision of certain services. For example, in the province of Québec Hydroelectric services are owned by the provincial authorities. In United States, services such as this would likely be privatized. Accordingly, the Canadian government is in the business of providing social services to Canadians to a much greater extent than is found in United States. Canada is the home of universal healthcare and Canada has resisted calls to privatize a service which is seen as fundamental to the Canadian conception of self and Canadian identity. From the perspective of social service and the government’s provision of welfare, the Canadian government does perhaps have more socialist leanings than the United States and is more critical of the ability of the free hand of the market to adequately distribute resources throughout the country. From a political standpoint, does Canada fit the model for socialism? (See Platform, New Democratic Party, 2009; Hydro Quebec to Buy, 2009). Unlike the United States, Canada has a plethora of political parties which actively contests its national elections. These political parties add much to the diversity of Canadian domestic politics and while some could be seen as having a socialist orientation question, such as the New Democratic Party (NDP) or the Bloc Québecois, the political process and Canada remains competitive and heavily influenced by democratic notions. Unfortunately, many socialist states around the world have done away with the electoral process and have exhibited authoritarian tendencies. This rings true in the context of the USSR, China, North Korea and Cuba today. In this respect than, Canada remains democratic while its social policies may be conceived by some as being influenced by socialist ideas about the collective good and the need for the state to provide welfare for citizens (Strayer 193-196; See Platform, New Democratic Party, 2009). Power Elite Model As with the socialist model, the power elite theory is based the notion that conflicts are inherent within society and that the current political and economic models in Canada produce inherent conflict. People who subscribe to this theory argue that conflict is endemic in society when resources are scarce and that certain political and economic elites have maintained systems of governance which are inherently unequal when it comes to resource distribution and allocation. This model utilizes both politics and economics to demonstrate that Canadian society is inherently inegalitarian and that elites within the political and economic realms utilize the capitalist economic system and the democratic process in order to further enrich and power themselves. According to this model, members of Canada's elite include a select group of people who control the Canadian economic and political process and while democracy is used as a guise for legitimacy, real power actually rests in the hands of this elite (see Dye, 2008). From this perspective then, private property, social capital and the formation of social classes are all important aspects of the unequal Canadian society in which exploitation by the elite is a feature of the Canadian existence. The relationship between Jean Chrétien and the incredibly powerful Paul Demarais family, owner of Quebecor, could be seen as an example of the linkages between political and economic power. Further examples would include the political legacy of the Trudeau family or the political and economic ties of former Canadian Prime Minister Paul Martin. According to this theory, while Canada is based upon this idea that social mobility is possible and that equality reigned supreme, Canada is actually a place in which class difference in the exploitation of the masses are important. Canada is run by an elite clique, which maintains its own political and economic interests at the expense of the betterment of Canadian society. Due to the intrinsic inequalities within Canadian society, this theory postulates that conflict will be endemic and inherent within the Canadian social system. Does the power elite theory adequately characterize the Canadian political and economic systems? (see Dye, 2008). Canada actually has one of the most entrenched and strongest democratic traditions in the Western Hemisphere and there is the belief in this country that with hard work anything is possible. While the elite theory may account for specific political and economic interests and the relationships between elites within both sectors, Canada's democratic process remains true to form and an inherent component of what makes Canada the envy of nations around the world. Accordingly, the economic system in Canada may be run by a small clique of elite business people but overall there is room for upward mobility and individual economic growth in the Canadian context. While conflict exists in Canada, it is arguably far less salient than in United States. Concluding Remarks Renowned political theorist Francis Fukuyama famously argued that the collapse of the Soviet Union represented the victory of capitalist liberal democracy over the forces of authoritarian and socialism. Returning to our research question, is the political-economic model of capitalist liberal democracy the most appropriate designation for the Canadian state? By exploring both Marxist inspired socialism and the power elite model of political and economic development, the designation of Canada as a capitalist liberal democracy remains true to form. Canada has democratic credentials which are nearly two centuries old and its elections are frequently contested by a plethora of political parties. Capitalism is the driving force for the Canadian economy, one of the strongest economies on the planet, and liberalism guides the economic policies of the Canadian state. While the government in Canada plays a much greater role in the provision of welfare and social services than that of other capitalist liberal regimes, notably the United States, the characterization of Canada as a capitalist liberal democracy best explains the political and economic systems of this country (Dunne 343-344). WORKS CITED Dye, Thomas. The Irony of Democracy: An Uncommon Introduction to American Politics. New York: Cengage Learning, 2008. Dunne, T. International Relations Theories: Discipline and Diversity. Oxford: Oxford University Press, 2007. Harvey, D. A Brief History of Neoliberalism. London: Oxford University Press, 2007. Hobsbawm, Eric. Age of Extremes: The Short History of the Twentieth Century: 1914-1991. London: Abacus, 1994. Hydro-Québec to buy key NB Power assets. CBC.ca October 29, 2009. Last Accessed November 12, 2009 http://www.cbc.ca/canada/new-brunswick/story/2009/10/29/nb-hydro-quebec-nbpower-deal-521.html Plan. New Democratic Party of Canada. 2009. Last Accessed November 12, 2009 http://www.ndp.ca/platform Read More