Download Silent Surrender

Canada’s Place in the
International Political
Economy
January 14
Summary:
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What is Canada’s place in the world?
In the global hierarchy of nations,
between the rich and powerful (also
resource and energy consuming) and
the poor and/or developing
countries, where is Canada situated?
The debate:
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This week we’re looking at one of the
longstanding debates in Canadian
Political Economy.
The readings for this week present
different positions in the debate over
the nature of the Canadian economy
and the strength of the Canadian
economy.
Dependency Theory
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Has the Canadian economy been
historically weak, dependent and
underdeveloped?
Stanford: “a hewer of wood and pumper
of oil”
Watkins: “the most neo-colonial country in
the world” “the richest dependent
developed industrialized country” he refers
to the “surrender of Canadian sovereignty
for the glory of American capitalism”
Silent Surrender
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Levitt: 1970: “Present-day Canada may be
described as the world’s richest underdeveloped
country.” “a rich, industrialized, underdeveloped
country” “structural underdevelopment”
“Laurier declared that the twentieth century
belongs to Canada. By the middle of the century
it had become clear that Canada belongs to the
United States.” “The instrument by which the
Canadian economy has been recolonized…is that
of direct foreign investment – more specifically
U.S. direct investment.”
Hewer of Wood, Pumper of Oil
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Stanford: “Resources have naturally played a central
role in Canada’s economic history. Our development
has been largely shaped by successive resource
booms: first furs, fish, timber, and agricultural goods,
and later minerals and energy. These natural riches
were harvested for export to our more advanced
trading partners (first colonial Britain, then America).
The resulting incomes paid for the importation of the
more sophisticated manufactures needed on our
farms and in our cities.”
“Analyzing this historical pattern, Harold Innis and
other Canadian political-economists worried that
Canada’s role as a hewer of wood and drawer of water
would constrict our prospects, leaving us perpetually
dependent on wealthier metropoles to purchase and
then transform our resources.”
Diversification, then Retreat
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Stanford argues that over most of
the 20th century, Canada was
diversifying its economy and
becoming less reliant upon natural
resource products.
Canada was successfully escaping
from its resource pigeon-hole, until
approximately 1999.
Marxist Critique
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Or, has the Canadian economy
developed a rich, advanced capitalist
economy that is typical of the
advanced capitalist world? Has it
been a diversified, fully developed
economic success story (in capitalist
terms, at least)?
Critique of the
Dependency Approach
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Kellogg points out that foreign ownership
of the Canadian economy peaked in the
early 1970s. There has been a recent but
relatively minor upsurge in recent years.
Foreign ownership in Canada has not
caused underdevelopment. Canada has a
diversified economy, that shares the
profile of an advanced capitalist country.
Canada, in fact, becomes an important
source of FDI abroad.
Marxist Approach
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Kellogg: “That is where a renewed
Canadian political economy has to
begin, with a focus on class relations
inside Canada rather than economic
relations between Canada and the
United States.”
Canada: On the Edge of Empire
Canada: On the Edge of Empire
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Canada was formed as an outpost of
first the French then the British
Empires
Canada shares a border with the
United States, the dominant global
power of the 20th century and
beyond
Canada: Shaped by Empire
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Canada’s relationship with Britain
and the United States has shaped
the Canadian economy and the
Canadian identity.
There have always been debates in
Canada about the advantages and
disadvantages of these close
relationships with the global power.
When did Canada
become an independent
country?
The British Identity
For many English-speaking Canadians,
our ties to Britain defined the
Canadian identity.
“A British subject I
was born, a British
subject I will die”
John A. Macdonald
during the election
campaign of 1891
“the empire on which
the sun never sets”
The Flag Debate
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In the mid-1960s when the federal
government considered the adoption of a
new flag to replace the Union Jack and the
Red Ensign, it was highly controversial and
divisive.
Far from all Canadians were enthusiastic
about the new flag and it faced much
opposition within the House of Commons
and from the public.
Canada’s Red Ensign
The Flag Debate
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The red maple leaf was one proposal
amid many. For more information,
including a range of alternative
proposals, see:
http://scaa.usask.ca/gallery/flagdisplay/index.htm
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For more information see the CBC
video archives:
http://archives.cbc.ca/IDD-1-73-80/politics_economy/canada_flag/
Canada’s Oath of Citizenship
I swear that I will be
faithful and bear true
allegiance to Her
Majesty Queen
Elizabeth the Second,
Queen of Canada, Her
Heirs and Successors,
and that I will
faithfully observe the
laws of Canada and
fulfil my duties as a
Canadian citizen.
The Outward Orientation of the
Canadian Economy
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Canada’s economic development has
often been portrayed as the
exploitation of various natural
resource products (or staples) for
foreign markets
fish, furs, lumber, wheat, minerals,
oil and natural gas
From the British to the
American Empire
British and US investment
in Canada
Canada’s Export Market:
From the UK to the USA
Year
Canadian exports to UK
as % of exports to USA
1886
1896
1906
1916
1926
1936
1946
1956
1966
1975
109%
166%
151%
225%
102%
119%
67%
29%
19%
9%
Source: McBride, Stephen. 2001. Paradigm Shift. Halifax: Fernwood.
Canada and the US
"The Americans are our best friends
whether we like it or not."
- Robert Thompson
Population Distribution
Reciprocity
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British North America and the United States
had a Reciprocity Treaty 1854-1866.
External influence on Confederation
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After Britain’s repeal of the Corn Laws and
the end of the Reciprocity Treaty with the US,
Canada was without a trading partner.
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Fear of American military power, the Fenian
raids and the rivalry over the western portion
of the continent were factors leading to
Confederation in Canada.
Second World War
During the Second World War, Canadian and
American defence policy and production for
the war effort were highly integrated.
 Ogdensburg Agreement 1940 created
Permanent Joint Board on Defence
 Hyde Park Declaration 1941
Globalization or Continentalization?
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For Canada, increasing globalization has
often appeared to involve greater integration
with the United States (rather than integration
with the rest of the globe).
Canada: An American Colony?
“Canada moved from colony to nation to
colony” - Harold Innis, 1949
American ownership of the Canadian economy,
particularly in manufacturing and resources,
grew over most the 20th century (until the
1970s).
Conclusion: External Influence
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Canadian politics, economics and culture have
always been shaped by the external environment,
but particularly by our relations with Britain and the
US.
Our relations with these countries have been a
cause for celebration for some and for concern for
other Canadians.
There has been an on-going debate about the
desirability and possibility of greater Canadian
independence in foreign and domestic policy,
economics and culture.
Conclusion: State Response
In general, the Canadian state has pursued three
different goals:
 managing, maintaining and increasing our relations
with the US,
 while seeking to broaden our foreign relations
through contacts with other countries and through
multilateral institutions,
 and maintaining or increasing the scope (or at least
appearance) of Canadian policy independence and
distinctive Canadian cultural development.