CANADA

What are the SGI 2011 key findings
about Canada?

Key findings: Status
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Blue line represents 20111 country’s status performance on a scale from 1 (lowest) to 10 (best). Grey line represents SGI 2009 performance. Use the pop-up menue for comparisons with other countries.
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2011 Canada compared to
Status Index
Canada’s status performance is at rank 7 among the best (-1 rank relative to SGI 2009).

Canadians continue to enjoy a robust democracy although concerns have been raised regarding government censorship of information and media concentration.

Thanks to a relatively strong financial system, the 2008-09 downturn was less severe in Canada than in the U.S., but nonetheless economic performance is deteriorating compared to other OECD member states.

Social policies assure social cohesion and equality of opportunities. Policies are in place to support the integration of a large number of immigrants.

The government fails to implement successful eco-friendly policies.
Democracy
Canada’s quality of democracy is robust (-2 ranks relative to SGI 2009).

There are no problems with the electoral process, which is fair, open and transparent. The media is largely independent, but most of the mainstream print and electronic media are concentrated in the hands of media conglomerates.

Civil rights and political liberties protection remains strong. Cases of overt discrimination are extremely rare.

Legal regulations are generally consistent, and courts ensure that governments act in conformity with the law. Corruption is considered to be relatively low; there are effective mechanisms in place preventing public officeholders from abusing their positions.
Economy/Employment
Canada fell from position 2 to 8 in the economic policy ranking.

Market-friendly policies facilitating competitiveness and sound investments have helped make Canada an attractive place to do business.

Yet business sector investment in R&D is low, as is per worker investment in ICT. Productivity growth is sluggish and active labor market policies have had limited effect on unemployment.

Nevertheless, an 8% unemployment rate (May 2010) is lower than the rate in the USA.

The budget deficit as a % of GDP is moderate, but the cut (by 2 percentage points) in the Goods and Services Tax coupled with rising health costs undermine fiscal sustainability.
Social affairs
With most policies encouraging societal inclusion and ensuring equal opportunities, Canada’s ranking on social affairs (rank 5) has slightly improved.

Health care policy is effective and broadly accessible, with high-quality health care freely provided for virtually the entire population. Some inefficiency in the system remains.

Labor force participation rates for women with children is high, suggesting that policies have enabled a practical parenting-career balance.

The public pension system is assessed as performing well above the OECD average.

Cultural, education and social policies support the integration of around 250,000 immigrants per year. Immigrants are entitled to become citizens after three years of residency, one of the shortest residency requirements in the world.
Security
Over the last decade, the canadian security apparatus has been restructured. Canada recognizes the importance of the global fight against Al-Qaeda. It has increased defense spending and has maintained a strong military presence in Afghanistan since 2001. Nearly 150 Canadians have been killed in Afghanistan.

Internal security has been improved. There have been no terrorist attacks in Canada, which suggests that the intelligence service is effective. An example of effective operations is the infiltration of a Toronto-based terrorist cell, which led to their capture in 2006.
Resources
Canada ranks 11th in the SGI’s resources category.

Environmental policy is the country’s most significant weakness. Greenhouse gas emissions have continued to rise from a high base, and a carbon tax is not on the political agenda. The risks associated with the intensive development of the Alberta oil sands have been ignored.

Private-sector technological innovation is comparatively anemic, despite considerable efforts by the government to stimulate such development.

Education policy has been successful on many fronts (post-secondary attainment, possession of a number of world class universities, very high PISA scores). However, the education gap between aboriginal populations and non-aboriginals remains significant.
Key findings: Management
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Blue line represents 20111 country’s management performance on a scale from 1 (lowest) to 10 (best). Grey line represents SGI 2009 performance. Use the pop-up menue for comparisons with other countries.
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1 2 3 4 5 6 7 8 9 10
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2011 Canada compared to
Management Index
Canada’s management performance has diminished in relative comparison, but continues to rank among the top third (-3 ranks relative to SGI 2009).

Strategic planning is stronger in Canada than in many other OECD member states. Policy communication is centralized and effective. The prime minister, endowed with considerable power in Canada’s political system, ensures that policy objectives are implemented.

Canada actively participates in international initiatives and is adept at adapting its institutions to global developments.

Although government bodies at all levels aim to cultivate a well-informed public, policy literacy among citizens is low.
Steering capability
Holding steady at rank 8, the Canadian government’s steering capability fares well in cross-OECD comparison.

Despite a lack of formal planning units, planning capacity is as strong or stronger than that of other Western countries. Many government departments and agencies have influential advisory committees. Central government offices possess the sectoral policy expertise needed for evaluation of draft bills.

Assessment of the potential socioeconomic impact of draft laws is irregular, as regulatory impact assessments are performed somewhat randomly.

The current government has centralized its communications function in the Prime Minister’s Office, allowing for the effective and coherent coordination of cross-ministry communication.
Policy implementation
At rank 2, Canada ranks among the OECD’s leading countries in terms of policy implementation.

The Harper government has performed reasonably well in attaining its policy objectives, aided by its choice of modest objectives and benchmarks.

The prime minister wields considerable influence in the Canadian system, particularly under the conservative government that has governed since 2006. Indeed, some argue that the current prime minister holds quasi-absolute power over all ministers.

The central government typically ensures that tasks delegated to subnational governments are adequately funded. Education and health care are largely the responsibility of provincial governments, and the federal government transfers funds for these functions.
Institutional learning
At rank 6, Canada’s institutional learning capacity is ranked highly in cross-OECD comparison.

Organizational change is frequent within the federal government, often reflecting international developments. The country is active in a large number of international forums, though in many cases this participation appears pro forma.

Some critics argue that the frequency of change within government structures is too high, as such change can be very disruptive and costly.

There is little evidence that changes in institutional arrangements have significantly improved the federal government’s strategic capacity.
Accountability
At rank 18, Canada’s executive accountability rating has shown across-the-board declines (-7 ranks overall) relative to the SGI 2009.

According to public opinion polls, most citizens have only a rudimentary knowledge of government policies.

Parliamentary committees have the power to request documents from the government, but these often arrive incomplete and redacted or too late to be used.

Accountability to the media is undermined by newspapers’ relatively low quality and circulation figures. However, the main TV and radio stations produce a mix of infotainment and quality information programs. The major political parties take their electoral programs seriously. The average level of NGO sophistication is higher than in most other OECD countries.
Governments in charge
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SGI 2011 review period (May 2008 to April 2010) is outlined. Shown are: Prime minister or president, type of government, and ruling parties. Asterisks indicate national parliamentary or presidential elections.
Governments in charge

 

Contributors
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Country scores and texts were produced by the country coordinator, based on comprehensive assessments by two country experts.
 
Country coordinator
PD Dr. Martin Thunert
University of Heidelberg

Country experts
Prof. Andrew Sharpe
Centre for the Study of Living Standards, Ottawa

Prof. Donald J. Savoie
Université de Moncton