November 3rd, 2009

The royals on tour

Posted by: Stephen Addison

HORSE-RACING/Prince Charles is in Canada, the Queen is expected to go there next year and William is preparing to go to New Zealand and Australia -- but are there signs that the locals are revolting?

Polls published in advance of Charles' visit show support for Canada's constitutional monarchy is weak, even if the public's frosty opinion of the Prince of Wales himself has begun to warm just a bit.

Sixty percent of Canadians felt the constitutional monarchy was outdated, although 80 percent said it was an important part of Canadian history.

Polls in New Zealand show people generally in favour of the monarchy even if it seems to have little relevance to their lives but when William heads off afterwards to Australia he will find a much more developed republican movement.

Prime Minister Kevin Rudd is an avowed republican whose announcement of William's trip made it crystal clear that the young royal was coming because because he asked to, not because he was invited. Foreign Minister Stephen Smith says a split from the monarchy is inevitable in the next decade.

William, travelling without girlfriend Kate Middleton, can expect to bask in the lingering "Diana factor," but this enduring phenomenon may actually work against the older couple in Canada.

Do you believe such royal visits have any point?

September 10th, 2009

The art of the dying general at 250 years old

Posted by: Carl Mollins

generalwolfe1- Carl Mollins is a Toronto-based journalist who has worked at the Toronto Daily Telegram, Reuters (in London), The Canadian Press news service (in Toronto, London, Ottawa, Washington, DC) and Maclean's magazine (in Toronto and Washington, DC). The opinions expressed are his own. -

It was long ago, in 1761, when Pennsylvanian portrait artist Benjamin West moved east—across the Atlantic. Nine years later in England, he looked back west to produce a controversial but renowned portrayal of the death of British General James Wolfe during England’s seizure of Quebec from France 250 years ago, on September 13, 1759.

Attention to the picture persists nowadays, so long since the British soldiers set up what rapidly became complete English control of the Canadian colony. Perennial prints and publication of West’s art and comparable materials are reminders of what launched Canada as a country divided linguistically, in culture and politically, the situation that remains today.

West devised that picture as the hired “history artist” of King George III, who was already ensnarled in England’s imminent loss of its other North American colonies as the independent United States of America.

That heightened the popularity of West’s picture, despite some criticism of its then-modernistic appearance. Painting Wolfe and the cluster of soldiers around him in battle dress strides away from the traditional portrayal of military heroes draped in capes and god-like postures. West did four paintings, differing in size, and they were repeated in hundreds of prints in the 1870s, more and more ever since.

West’s picture, titled "The Death of General Wolfe", portrays the situation by guesswork and by adding veterans who paid for their inclusion. In the foreground is a half-naked, barefoot, head-feathered person, an apparent tribal warrior of First-Nation Canadians, although the record indicates none were involved.

Even more factually fanciful is a similar picture showing the death in the same battle of the French commander, Marquis Louis-Joseph de Montcalm de Saint-Veran. In fact, the record indicates that Montcalm dies the following morning. Not only does the Montcalm army include First-Nations soldiers, but a tropical palm tree rises above the distraught soldiers.

Reinforcing the West painting’s provision of Wolfe’s heroism are poetic and musical tributes composed over the centuries.

Barely six weeks after the Quebec clash, the early English publication "Busy Body" published in its issue of October 22, 1759, a poem of Oliver Goldsmith, including the lines:

“. . . . O Wolfe! to thee a streaming flood of woe,
Sighing we pay, and think e’en conquest dear;
Quebec in vain shall teach our breast to glow,
Whilst thy sad fate extorts the heart-wrung tear . . . .
Yet they shall know thou conquerest, though dead!”

More than a century later in Canada, the poetic and musical Toronto schoolmaster Alexander Muir (Principal of Leslie and later Gladstone schools), composed during the 1867 formation of the Canadian Confederation what became a virtual national anthem in many schools for most of the following 100 years.

The lyrics of his stirring song, "The Maple Leaf Forever", proclaim that, “from Britain’s shore Wolfe, the dauntless hero, came and planted firm Britannia’s flag on Canada’s fair domain.”

His nationalist chorus reaches beyond that divisive history. Muir altered a line in which original lyrics referring to Canada’s commitment to the British floral emblems—Scottish thistle, Irish shamrock, English rose—to add the French fleur de lis, or lily.

The song goes on in the chorus to applaud “the maple leaf our emblem dear, the maple leaf forever”—an outlook fulfilled a century after Confederation with Canada’s replacement of its red ensign of the Union Jack with adoption of the Maple Leaf flag in 1965.

Yet still, two and a half centuries after the English took over Canada from the French, the country’s national attitudes created 250 years ago divisibly, day-by-day persist.

August 17th, 2009

Making the most of the Commonwealth’s potential

Posted by: Dhananjayan Sriskandarajah

d2- Danny Sriskandarajah is Director of the Royal Commonwealth Society. The opinions expressed are his own -

In recent years the Commonwealth has become an easily derided organisation. From its inception as a clever way of easing de-colonisation to the heady 1970s and 1980s when the association showed a radical dynamism on issues like Apartheid, the international association has shown itself to be unique and useful.

However, today, the Commonwealth risks being drowned out in a more crowded field of international organisations, many with a clearer sense of purpose, more collective will and better resources.

Before the 2002 Commonwealth Heads of Government Meeting (CHOGM), in Durban, South Africa, Tony Blair reportedly said he would rather be at home watching football than meeting his fellow heads of state. A candid indictment of how irrelevant the Commonwealth has become?

Polling done in seven member countries to mark the launch of a public conversation on the future of the Commonwealth shows some worrying signs. Globally, only a third of people polled could name any activity carried out by the association and only about a third of people in Australia, Canada and Great Britain would be sorry if their country withdrew altogether.

No international organisation has a pre-destined right to exist and these poll results should be a wake up call to ask whether and how this association will be relevant in the 21st century.

This year the Commonwealth is 60 years old, and some have said that the association risks easing into a low-key retirement. Yet the organisation contains some of the worlds most developed and dynamic countries: two members of the G8; two members of the G8 plus 5; five members of the G20 and one member of OPEC. Outside Japan and the USA, the cutting edge countries in information technology and e-commerce are all Commonwealth members. The booming economy of India, the world’s largest democracy, is a founding member.

The Commonwealth will never become a trading bloc, like NAFTA or the EU. But the common cultures, legal systems and regulatory frameworks across so many Commonwealth countries are a great incentive for trade and cooperation between them. The Commonwealth itself accounts for some 30 percent of world trade.

Much more should also be made of the incredible people-to-people links that exist between Commonwealth countries. Buttressing the inter-governmental Commonwealth is an unparalleled network of civil society organisations and business networks that promote the exchange of ideas, people and much more. Organisations like the OECD or APEC cannot boast such a hinterland.

On issues like climate change, the Commonwealth could offer a unique informal space for dialogue between countries that might otherwise be at loggerheads in negotiations over binding commitments. Indeed, past leaders frequently say the true value of the Commonwealth lies in the opportunity for a unique informal dialogue that happens at Commonwealth leaders’ retreats.

Access to international markets presents great opportunities for poorer countries to trade their way out of poverty. If all Commonwealth countries, from giants like Canada to minnows like Tuvalu, agreed to take a decisive and common stance on trade issues, the Commonwealth voice could be a powerful force to kick-start the stalled Doha Development Round.

Through the Commonwealth Conversation, the largest ever public consultation about the future of the Commonwealth, the Royal Commonwealth Society hopes to help the Commonwealth recapture its relevance. As it stands the organisation is not articulating its strengths, aims or ideals.

This sixtieth anniversary presents a crossroads for the organisation. It can retire from the international stage it has served so well in its first 60 years or it could reinvigorate itself with renewed purpose to face the challenges of the 21st century. We should remind ourselves of the Commonwealth’s potential, and fully utilise this network to our advantage. Whether it is through promoting shared values or an agenda to tackle shared challenges, the Commonwealth needs to show it can make a real difference on key issues.

July 24th, 2009

China and the world economy

Posted by: Gerard Lyons

gerard-lyons Dr. Gerard Lyons is chief economist and group head of global research, Standard Chartered Bank. The views expressed are his own.

The world is witnessing a shift in the balance of power, from the West to the East. This shift will take place over decades, and the winners will be:
- Those economies that have financial clout, such as China
- Those economies that have natural resources, whether it be energy, commodities or water, and will include countries, some in the Middle East, some across Africa, Brazil, Australia, Canada and others in temperate climates across, for instance, northern Europe
- And the third set of winners will be countries that have the ability to adapt and change. Even though we are cautious about growth prospects in the U.S. and UK in the coming years, both of these have the ability to adapt and change.

China is at the center of this shift.

The scale and pace of change in China is breathtaking. Against this backdrop of dramatic change, let me look at China’s impact on the global economy, especially in the aftermath of the financial crisis.

It is now clear that the financial crisis was a result of three key factors: an imbalanced global economy; a systematic failure of the financial system in the West; and a failure to heed the many warning signs.

The world needs to move towards a more balanced economy. But that will take years. The imbalanced nature of the world economy led some to point the finger of blame at the savers, such as China. The 1944 Bretton Woods agreement placed no obligation on savers, countries with current account surpluses. The obligation to change was put on those countries with the deficits. This has to change.

Whilst China and other savers may not be the main source of the recent problem, they are part of the solution.

To move to a balanced global economy, the West, or at least countries like the U.S., the UK and Spain, need to spend less, save more. In contrast, regions like the Middle East and Asia need to save less and spend more. It sounds easy. It is not. It requires a fundamental shift in China and in Asia’s growth model.

At the recent Asian Development Bank (ADB) meeting in Bali, the President called for Asia to rebalance its economy by: expanding the social safety net; providing assistance to small and medium-sized enterprises; and deepening bond markets.

Amongst those present, I detected more enthusiasm for the social safety net than for further financial sector innovation. One of the lessons of the 1997-98 Asian economic crises was the need to open up the financial sector at a speed best suited to domestic needs. One speed does not fit at all. Yet, it is important that if Asia is to see a shift in its growth model it needs to see a reduction in savings and this will be achieved sooner by deepening and broadening its capital markets.

This involves many changes, such as increased personal finance and allowing people to borrow against future income. It requires deep and liquid corporate bond markets, shifting the region’s culture away from equities, and giving firms alternative sources to bank lending and, in China particularly, reducing corporate savings, possibly through higher dividends.

China will play an important role in this process. It has already helped regional integration, building on the Chiang Mai Initiative, and it has engaged in a number of bilateral swap arrangements with countries around the world.

Another important global impact is the importance of China in helping world trade, investment and financial flows. Over the last decade the three words seen most regularly were “Made in China”. Over the next decade the three most common words might be “Owned by China”. China’s stock of overseas direct investment is one-thirtieth of that of the USA. The stock of foreign direct investment in China far exceeds the total amount China has invested overseas. Last year, China’s investment overseas was $50 billion. Now this is changing. Chinese firms are taking advantage of a strong renminbi and of strategic backing from Beijing to expand overseas purchases.

The impact of China on global commodities is already evident. China’s rapid growth and its strategic needs saw it accumulating increasing amounts of commodities. For instance, it accounts for about one-third of global demand for aluminum and copper, and as much as 38 per cent for zinc. In the first half of this year there has been stockpiling by China of a range of commodities. This stockpiling could be explained by many factors, including the strength of the Chinese yuan and the weakness of commodity prices. In future years one would expect this to continue. And it will not just be metals. Demand for food and soft commodities will be important. As incomes rise, food tastes will change.

Furthermore, 28 per cent of Europe’s land is arable, while this figure is 19 per cent for the U.S., but for China it is only 10 per cent. As a result, China will not only buy commodities, but it will also invest in countries producing commodities. This will reinforce the new corridors of increasing trade and investment flows between China and Africa, Latin America and the Middle East.

China’s purchase of commodities has a direct link into the inflation outlook globally. In previous years, CPI figures around the world could have been renamed China Price Indices, as China exported deflation. In the next few years, if there is an inflation issue it is likely to be through higher commodity prices, with China’s demand exerting a key influence.

China will have a big bearing on the dollar. There is a slow burning fuse under the dollar. Even if the U.S.’s economic power were to wane, it is important to stress that the U.S. is still the world’s major economy. There are no credible alternatives to the dollar. Long after the UK ceased to be the world’s major economy a century ago, sterling remained the world’s reserve currency for some time. During this crisis it was noteworthy that, despite much negative sentiment towards the dollar, in the time of trouble the depth and liquidity of U.S. financial markets helped support the dollar as a safe haven.

Furthermore, it would not be a surprise if - as a result of this crisis – more countries learned the lesson of Asian economies after their crisis, and decided to accumulate foreign exchange reserves. During this crisis those countries with high FX reserves were afforded an additional degree of protection. Of course, not all reserves need be in dollars. Even now, countries with large reserve holdings do not actively want to sell the dollar. It is not in their interests to do so. Instead of this active diversification – or outright selling of U.S. assets - there is what I call “passive diversification”, whereby a smaller but still sizeable proportion of their net new reserves are allocated to dollars.

For its reserve currency status the dollar needs to retain its status as the medium of exchange and as a store of value. Interestingly, China and Brazil recently agreed to pay each other in their own currencies, not in dollars as is the norm, whilst the pressure China has put on America regarding the dollar’s value highlights the concern some have over its future value.

China still has a huge balance of payments: its surplus reached 9.6 per cent of GDP last year. The authorities have kept the yuan stable versus the dollar, although this has meant it has appreciated on a trade weighted basis. The Chinese are also, it seems, encouraging trade settlement in Chinese yuan. Yet the reality is the Chinese yuan needs to become fully convertible for it to challenge the dollar and that is not going to happen any time soon. In the future I would expect to see more countries manage their exchange rate against the currencies of the countries with which they trade. This, plus the new trade corridors I mentioned earlier, and the likelihood of increased investment flows into emerging economies with higher growth rates, may all suggest downward pressure on the dollar. But this is likely to be a slow process.

On the global stage, China’s rise is also leading to the rise of State Capitalism. A couple of years ago we looked at this in the context of Sovereign Wealth Funds. Add in large foreign exchange reserves, government pension funds and state owned enterprises, and the role of the state has become far more important.

Finally, China’s influence on global policy forum is important. Already this crisis has seen a shift, with the G20 (Group of Twenty) taking a prominent role. The Chinese took a pro-active role ahead of the London Summit, which was welcome, and is perhaps a sign of things to come. One wonders, however, whether it is the G2 of the US and China that might emerge as the real power. Earlier this year President Obama signaled a shift from the Strategic Economic Dialogue, to the Strategic and Economic Dialogue. This extra word “and” signals perhaps a significant change.

July 20th, 2009

Healthcare reforms warnings from France and Canada

Posted by: Brian Lee Crowley and Valentin Petkantchin

healthcare-combo– Brian Lee Crowley is the founding president of Atlantic Institute for Market Studies (AIMS), a public policy think tank in Canada (pictured left) and Valentin Petkantchin is director of research at the Paris-and Brussels-based Institut économique Molinari. The views expressed are their own. –

President Barack Obama’s package of heathcare reforms – mandatory health insurance, public health option and increased federal government financing – is being sold as preserving independent high quality care and choice for patients while keeping down costs. Taxpayers and patients in both Canada and France know better.

Unfortunately, our experience is that once the government gets its nose in the healthcare tent, not only is spending not contained, but health care professionals lose their freedom to practice. Left with few choices, patients face shortages and waiting lists.

Washington’s proposed new public health insurance option, while not imposing Canadian-style single-payer monopolistic public health insurance immediately, will almost certainly lead to that result in the end.

One of two things will happen. If doctors prove reluctant to accept patients covered by the public option and it is thus unable to compete successfully with private insurers, the politicians will not stand idly by.

Physicians’ freedom to practice outside the public option will become increasingly hedged with restrictions, perhaps ultimately ending up, as in Canada, with doctors in the public system being prohibited from taking private patients.

Or, more plausibly, in the short term at least, private insurers will gradually withdraw from the business, incapable of winning against a government-subsidized “competitor.”

In both cases, competition in the health insurance sector will progressively vanish and the U.S. will wake up with a monopolistic-style health insurance system, à la France or Canada.

Consider yourself warned.

Our respective health care systems have proven incapable of reining in rising costs. Health spending in France, while lower than the U.S., is among the highest in the world, whatever the indicator, despite decades of mandatory, subsidized health insurance. After 1988, the public health care system has regularly been in the red, with deficits numbered in the billions of euros. The forecast deficit for 2009 alone: 9.4 billion euros (over US$13 billion).

French officials are scrambling to take more control of the system to bring these costs down, but Canada, where government controls all “medically necessary care,” shows that this is no solution at all. A growing share of Canadian provincial budgets is also swallowed by the health care system, going in 20 years (1983-2003) from 32% to 41% and on the way to 50% in a few short years. As a portion of GDP, and adjusting for population age, Canadian health care spending even ranked ahead of France’s in 2005.

But the oxymoron of government cost containment is not the only problem. In the name of restraining costs – so fashionable currently in Washington – governments are adding further inefficiencies by piling on more bureaucracy.

Since 1996, there is a cap on national health care spending in France and growing pressure on health care professionals in the public system to cut costs. In 2004, patients’ choice of physician and specialist was also severely limited.

Independent private medicine – once one of the main pillars guaranteeing quality and timely care in the French system – is being slowly strangled. At the end of 2008, nurses lost their freedom to practice where they please, while a new law will do the same for physicians by imposing an annual financial penalty if they refuse to practice where the government tells them to. Specialists’ fees are increasingly regulated. The last pillars of competition among providers, and choice for French patients, are thus undermined.

Canada again is a good example of where the logic of such policies will lead the French and the Americans in the future.

North of the border, decades of total government control over health care have led to chronic doctor shortages and waiting lists. Roughly 1.7 million Canadians were unable to find a family doctor in 2007 and have to queue in impersonal clinics where they exist. Yet only a physician can order tests or get a patient in to see a specialist.

Despite continual infusions of fresh tax dollars, waiting times for hospital treatment went from an average of 7.3 weeks in 1993 to 17.3 weeks in 2008, although there was a minuscule decline last year as a result of massive political pressure. The problem is so severe that the Supreme Court of Canada acknowledged in a historical 2005 ruling that patients die as a result of waiting lists for public health care.

Finally, coverage of new drugs is delayed by a year or more for patients relying on the public system. Even with this delay, by October 2007 less than half of new drugs launched between 2004 and 2006 had been listed for payment.

Based on experience in both our countries, government health insurance and government financing inescapably lead to a crackdown on health care providers and bureaucratization of the entire health care system. Americans should look carefully at our experiences before going any further down the slippery slope of state-controlled health care.

February 6th, 2009

GUESTVIEW: Canada and the niqab: How to go public in the public square

Posted by: Reuters Staff

The following is a guest contribution. Reuters is not responsible for the content and the views expressed are the authors' alone. Sarah Sayeed is Program Associate and Matthew Weiner is Program Director at the Interfaith Center of New York.

By Sarah Sayeed and Matthew Weiner

A Canadian judge recently ruled that a Toronto Muslim woman must take off her face veil while giving testimony in a sexual assault trial. This tension between public space and private religion comes up repeatedly in western urban centers where Muslim women increasingly occupy the pubic square.  This time it happened in Toronto, but the issue arises regularly in western countries in the schools, workplaces and courtrooms that Muslims increasingly share with the majority population. At stake is whether a Muslim woman's choice to dress in accordance with her religious beliefs infringes upon "our way of life."

(Photo: Sultaana Freeman testifies in court for right to wear a niqab on her Florida driver's license, 27 May 2003/pool)

While all can agree that identity, tolerance and religious freedom are important, advocates for the face veil emphasize the upholding of freedom while opponents focus on the face veil, or niqab, as a challenge to collective identity.  Such tension between public expression of religion and collective identity is not new.  It has even gone on for centuries in Muslim countries, where religious minorities feel the tension between acceptance and their need to adapt, in varying degrees, to a Muslim majority worldview.  There is also a debate within Muslim communities about whether wearing the niqab is a religious requirement.

What seems problematic in the current debate, whether in Toronto or Milan, is the implication that Europeans and North Americans are willing to tolerate differences, but only up to a limit.   Some differences seem too threatening for them to consider seriously.  They seem to think some differences should be made invisible.  Thus, and perhaps inadvertently, the opponents of the niqab - who see themselves as the defenders of collective identity - call into question another value and practice that is central to Western democracy: open dialogue in the public sphere.

Ever since the Enlightenment, Westerners have agreed that tolerance and open discussion in a public space helps prevent violence and fosters community. It is a proud tradition. The great moral effect of creating a public space was that people from different traditions, with different views and different styles of conversing, could join in a shared process.  Tolerance - putting up with something you do not agree with - is understood here as an uncomfortable but necessary virtue.

(Photo: Female Saudi pharmacist in Jeddah, 4 June 2007/Susan Baaghil)

In deliberative democracy, each side or point of view must be given a chance to express itself and be subject to deliberation.  No side of the debate should be suppressed or dismissed without due consideration. However the niqab, when allowed into the public square, is a message that by itself questions the very boundaries of what is public versus private.  It is a mode of dress that suggests a different social order, a different public square.

Should people who cover their faces (and their mouths) speak and deliberate in the public square with those who do not?  There seem to be several good reasons for saying yes.

While it may be genuinely strange for us to encounter people with their heads and faces covered, it need not violate the principles of public space or democratic discourse.  Orthodox Jews are not supposed to shake hands or interact too closely with the opposite sex. This is accepted.  Advocates of public space need to recognize that if the public is genuinely democratic, every minority voice needs an opportunity to participate on their terms.  While this necessarily changes how discourse takes place, it is possible that the change will strengthen rather than threaten the collective.

Secondly, if women wearing a niqab are not permitted to engage in the public square in Western societies, the ripple effects may even impede the democratization of Muslim societies and keep Muslim women out of public life.  People who hold their religious values dear may choose -- or worse, be forced -- to remain out of the public square if they are not permitted to enter on their own terms.

(Photo: University graduate in Sanaa, Yemen, 30 July 2008/Khaled Abdullah)

If a community cannot express itself publicly in a way true to their own identity, what will this lead to?  Who will it exclude? What effect will such exclusion have, not only on the community at large, but on minorities' ability to integrate in a way that maintains their identity?  And what will the impact of slow democratization in Muslim nations have for women's rights and the larger global fabric?

There does not seem to be an easy answer, either to these questions or to the debate at hand. But deciding what makes the public square public and how people participate in public deliberation goes beyond the simple debate of religious freedom and national identity.  What is important for now is that someone spearhead a healthy discussion that seeks to think through these nuances, as opposed to the current polarized debate that simply compounds a growing divide between communities. Sadly, some who call for a dialogue with Muslims start with the proviso that Muslim women follow their standards for what is properly public.  This is not a partnership-based beginning.  Rather it will be the communities who move in the direction of real conversation, with openness to change, that will deserve to be called defenders of the pubic sphere.