GROUP 4 October 5, 2020

Anillo, Kim Zyra

Argel, Lovely Jane V.
Bocobo, Erika Mae V.
Castro, Razelle Hilary V.
Catapang, Allyson Mae P.
Fabros, Veniz Marie C.

Contemporary World
Assessment 3

State Profiling: Canada Country

Canada is the second largest country in the world. According to Britannica, Canada is the
officially bilingual in English and French, reflecting the country’s history as ground once
contested by two of Europe’s great powers. The word Canada is from the Huron-Iroquis katana,
meaning “a village or settlement”. It was a founding member of the United nations and been
active in a number of major UN agencies and other worldwide operations. Canada is also a
member of the Group of Seven (G7), which includes the world’s seven largest industrial
democracies and part of Group of Eight (G8).

1. The country’s economic policies

Macroeconomic policy is divided into two broad types: fiscal policy and monetary
policy. Fiscal policy is the set of decisions a government makes with respect to taxation,
spending, and borrowing.

Monetary policy in Canada has three main characteristics:

1. Monetary policy is conducted by the Bank of Canada, a government-owned Crown

corporation that operates with considerable independence from the federal government
but is nonetheless ultimately accountable to Parliament. 
2. Because financial capital can move easily within Canada, interest rates on similar assets
are the same across all Canadian regions. As a result, there is only one monetary policy
for all of Canada. The Bank of Canada is the sole issuer of legal tender (bank notes) in
Canada.
3. Although several economic variables influence monetary policy decisions (many of
which will be discussed later), the Bank of Canada has only one policy instrument.

The Bank's policy instrument is the target it sets for the overnight interest rate. In Canada,
commercial banks lend funds to each other for very short periods at the overnight interest rate, a
market-determined rate that fluctuates daily. By announcing a specific interest rate (25 basis
points above the target overnight rate) at which it is prepared to lend unlimited amounts to
commercial banks and a second specific interest rate (25 basis points below the target overnight
rate) at which it is prepared to borrow unlimited amounts from commercial banks, the Bank of
Canada can keep the overnight interest rate within an announced operating band. Furthermore,
by changing its target for the overnight interest rate, the Bank of Canada can alter the actual
overnight rate at which commercial banks transact.
By changing the target for the overnight rate, the Bank influences the entire spectrum of
market interest rates, from the yield on 30-day treasury bills to that on 30-year government
bonds, and from the rate on 3-month guaranteed investment certificates (GICs) to that on 10-year
home mortgages. When the Bank lowers the target for the overnight rate, these interest rates fall,
firms and households increase their demand for credit, and commercial banks increase their
quantity of credit supplied.
The ultimate objective of the Bank of Canada is to make the best possible contribution to a
well-functioning Canadian economy and to the overall well-being of Canadians. Based on a large
body of theoretical reasoning and empirical evidence, the policies of the Bank of Canada and
most other central banks are grounded in two essential propositions:

 High inflation is damaging to the economy and costly for firms and individuals.
  Central banks are unable to directly influence variables other than inflation for
any sustained period of time.

Central banks might also desire to keep the unemployment rate low or the rate of growth of
aggregate output relatively high. After all, low unemployment and high rates of growth would
mean higher real incomes and higher average living standards.
Milton Friedman (1968) explain how monetary policy can influence many macroeconomic
variables over short periods of time—including real output, unemployment, and investment—but
can have a sustained influence only on the rate of inflation. In the late 1960s, these arguments
were controversial and not fully accepted by the economics profession, but over the next decade
they became widely accepted as more theoretical reasoning and empirical evidence emerged in
their support. Central to the argument is the recognition that the changes in real wages and real
interest rates that are initially generated by a monetary policy action are eventually offset by
market adjustments in wages and interest rates in response to excess demands or supplies. Thus,
a monetary policy action that in the short run can lead to a change in output and employment, in
the long run, ends up changing only the rate of inflation.
To summarize, central banks choose to focus on maintaining low and relatively stable
inflation for two reasons. First, low inflation is beneficial for the operation of the economy.
Second, both theory and evidence suggest that monetary policy cannot have a systematic
and sustained effect on macroeconomic variables other than the inflation rate. Given this limited
scope for monetary policy, it would make little sense for monetary policy to adopt other long-run
targets, such as the unemployment rate or the growth rate of real output. It is natural for central
banks to adopt a long-run target for the one thing that they can reasonably expect to influence
over the long run—the rate of inflation
That is why the Bank of Canada takes the view that its best contribution to the health of the
Canadian economy is to maintain low and relatively stable inflation. To formalize this objective,
the Bank, in 1991, together with the Government of Canada, adopted a system of inflation
targeting that aims to keep the annual rate of inflation close to 2 per cent and within a range of 1
to 3 per cent. In such an environment of low and stable inflation, Canadian firms and households
can then make spending, saving, and investment decisions that lead to steadily rising average
living standards.

2. The country’s foreign and/or diplomatic policies

In general, Canadian foreign policy has operated largely in sync with that of America and
Europe, with the Canadian government acting as a loyal partner in the
dominant western alliances of the day. This has included participating on the allied side of
both world wars, actively participating in the United Nations and North Atlantic Treaty
Organization (NATO), defending democratic-capitalist causes during the Cold War, and
making military, diplomatic, and financial commitments to help promote global stability and
justice in the modern era of terrorism and rogue states.

Canada remained a colony of the British Empire until 1931, meaning there was no such

thing as “Canadian foreign policy” before then, as Britain did not permit its colonies to sign
treaties, form alliances, appoint ambassadors, go to war, or pretty much interact in any
meaningful way with other countries without London’s approval. Canada did participate in a
few overseas adventures in the early 20th century, fighting in the Boer War (1899-1902)
against Dutch rebels in British-run South Africa and in World War I (1914-1918) defending
Britain’s allies from the armies of Imperial Germany, but this involvement was largely
automatic, given all British colonies were expected to fight for British interests. In 1931, the
U.K. passed the Statute of Westminster giving its self-governing white colonies the right to
make their own foreign policy choices. Canadian politicians have taken Canada’s right to make
independent decisions of war and peace very seriously ever since, not only in regards to Britain,
but other friendly nations as well.

Canada eagerly fought alongside its allies in both World War II (1939-1945) and
the Korean War (1950-1953), but as the Cold War (1945-1990) continued to unfold, Canada
began to chart an increasingly independent course. When Britain, France, and Israel invaded
Egypt during the Suez Crisis of 1956, Canada remained neutral. After the Cuban Revolution of
1959, Canada maintained economic and diplomatic ties to the government of Fidel
Castro (1926-2016), defying U.S. and South American efforts to isolate the Marxist regime.
When war between communist and non-communist forces in Vietnam broke out in the mid-
1960s, Canada similarly resisted calls from America and Australia to intervene militarily to help
the non-communist side. More recently, Canada was one of several western nations to oppose
the Iraq War (2003-2011) against Saddam Hussein (1937-2006) led by Britain and the United
States.

When Canada breaks from its traditional allies the reason is usually a disagreement

about strategy, not goals. Canada favored the anti-communist side in Vietnam, for instance, and
opposition to the war did not prevent the country from providing military and economic
assistance to the United States during the conflict, just as opposition to the Iraq war would not
prevent Canada from doing the same some 40 years later. Canadian demonstrations of foreign
policy independence are just that: high-profile actions designed to demonstrate that Canada is not
an automatic ally of any partner or cause, but rather a fully independent nation capable of
making decisions for itself.(©2020 The Canada Guide)

3. Membership of the country to international organizations (IO)

As a founding member of the United Nations, Canada is committed to the guidance provided
in the UN Charter to maintain international peace and security, develop friendly relations among
nations, and to achieve international co-operation in solving international problems of an
economic, social, cultural or humanitarian character, and in promoting and encouraging respect
for human rights.
The United Nations is Canada’s preeminent international forum for advancing issues that
matter to Canadians and engaging with partners from around the world to meet global
challenges. Global security and prosperity can only be achieved by working together towards a
common goal: a more just, inclusive and sustainable world.
They are committed to promoting human rights, advancing peace and security, upholding the
rule of law, addressing climate change and ensuring sustainable development. Canada’s
diplomacy and leadership at the UN give a strong voice to Canadian principles and values on the
world stage. By promoting gender equality, environmental stewardship, and respect for diversity
and inclusion, Canada is working toward a more peaceful and prosperous world. One of their key
priorities is protecting and enhancing the international rules-based order by championing values
of inclusive and accountable governance, including by promoting human rights, women’s
empowerment and gender equality and peaceful pluralism.

The Permanent Mission of Canada consists of the following policy sections:

 The Political Section works to advance Canadian peace and security objectives, including
through engagement on crisis management, conflict prevention, peacebuilding and
enhancing support for UN Peace Operations. The Political Section covers the Security
Council, 1st (Disarmament & International Security), 4th (Special Political &
Decolonization) and 5th (Administrative & Budgetary) Committees, and leads on reform
initiatives to modernize the UN.
 The Development Section is engaged in following up on the implementation of the 2030
Agenda for Sustainable Development, UN Development system reform and oversight for
UN Funds and Programs (UNICEF, UNDP, UNFPA, UN Women). The section, which
covers ECOSOC and 2nd Committee (Economic & Financial), also works on climate
change action, ocean protection and SDG financing.
 The Legal, Social and Human Rights Section works to promote respect for human rights,
facilitate Canada’s response to humanitarian crisis and further the development of
international law and respect for rule of law. The section is also responsible for global
refugee and migration issues, gender equality and women’s empowerment, Indigenous
affairs, and transnational crime and drugs. The section covers the 3rd (Social,
Humanitarian & Cultural) and 6th Committees (Legal).
 The Military and Police Section provides subject matter expertise to the Ambassador and
Political staff on the full range of security considerations and issues related to UN peace
operations. The section works to advance Canadian objectives through engagement with
the UN and Member States on conflict prevention, peacekeeping, peace enforcement and
capacity building. Officers cover the Security Council, 4th Committee (Special Political
& Decolonization), C34, and work with military and police experts from Member States
to modernize and improve the effectiveness of UN Operations. The section works with
 the UN on training, deployment of personnel and contingents, and development of
peacekeeping policy.

4. Determine if the country you have choses is part of the global north or the global south.

The Global North is defined as the circumpolar region north of the 60th parallel. It is of
immense size (approximately 21.5 million square kilometers), sparsely populated (with just 37
million people) and still relatively unexplored. Global interest in the North has increased
significantly as retreating sea ice and rising temperatures increase access to natural resources,
opens new pan-continental trade routes, and challenges national sovereignty. The strongest
interest in the North is expressed from the perspectives of the eight sovereign nations which
comprise the geographic North: Canada, Russia, USA, Denmark, Finland, Iceland, Norway, and
Sweden (collectively referred to as the Northern Rim Countries). However, other countries,
including members of the European Union, China, India, and South Korea have demonstrated
growing interests in the circumpolar region, primarily for climatic, resource and transportation
reasons. The future of the North has economic, social and political implications for the province
of Alberta. Located just south of the 60th parallel in Canada, Alberta has long-standing
connections with the North in the form of transportation links, natural resource developments
and the provision of goods and services. As a result, strong personal and cultural associations
have been forged between Albertans and those who live in the North. The prevailing conditions
in and the forces impacting on the Global North are complex, interrelated, and most importantly,
are in the process of change. The objective of the Global North Project was to examine the long-
term future of the Global North, choosing 2050 as the reference year. The first phase of this
Project was the Jasper Innovation Forum in which, under the auspices of Alberta Innovates
Technology Futures, 48 international participants with diverse backgrounds examined the
principal forces and factors, together with their consequences, that will shape the future of the
North. This report summarizes and expands on the Jasper Innovation Forum deliberations. It also
provides a basis for future work focused on specific subject areas and geographical regions.

5. The country’s condition under globalization and regionalism

Canada is one of the most globally integrated countries in the world, with a highly
advanced system of communications and information technology, a government that is active in
international organizations, an economy that is dependent on trade, a population that travels
abroad frequently, and a society composed of individuals from a myriad of cultural backgrounds.

Here are the three areas of integration where the impact of globalization can be seen:

Trade
 Economically, globalization has meant higher levels of international trade and
investment, as well as increases in the exchange of knowledge and technology,
particularly in the industrialized world. The General Agreement on Tariffs and
Trade(GATT), originally signed in 1947, provides for lower tariffs to increase cross-
border trade. The World Bank and the International Monetary Fund (IMF) have
supported this policy, pushing countries to open their doors to foreign goods and capital.
Greater economic interdependence has meant that financial difficulties in one country can
send shockwaves around the world.
Political Power
 A growing number of international organizations and agreements have played an ever-
expanding role in government decision-making. Critics argue that globalization has
eroded national sovereignty and has caused a transfer of power from states
to corporations or to international organizations. Since the late 1970s, there has been a
growing acceptance of an ideology, often called "globalism," that favours an open market
and limited government interference in capital and trade flows. Corporate interests have
driven this agenda, which they have imposed, the critics argue, on the developing world.
Culture
 Technological change and migration have helped bring about globalization in the cultural
sphere, creating what Canadian communications theorist Marshall McLuhan called "the
global village." Music, films, and other forms of entertainment are distributed globally.
Major restaurant chains, McDonald's prominent among them, operate outlets around the
world. Clothing brands and styles cross oceans and national boundaries easily. This
 process has met resistance from people and groups (such as the international Slow Food
movement that advocates against society's excessive indulgence in fast food and
lifestyles) determined to maintain traditional cultures.

The Canadian economy has been heavily dependent on external markets and capital since at
least the 17th century. In the early years, Canada's economy was colonial. Most investment came
from the imperial power (first France, then Britain). Prosperity depended on exports of natural
resources (furs and fish in the early days; lumber, wheat, and minerals in later eras) and imports
of manufactured goods. The imperial tie was a form of selective globalization. Canada had
overseas trade and investment links, but these were primarily within the empire, as the colonial
system tended to shut out the rest of the world.

In the 19th century, the Canadian economy began to transform from a colonial to a
continental one. In the 1840s, Britain abandoned the mercantilist system that gave preference to
imports from the colonies, including Canada. Having lost its special access, Canada had to
compete with other counties, including the United States, when selling goods to Britain. In
response, Canada sought new markets to the south. The Reciprocity agreement between Canada
and the U.S., signed in 1854 and in effect from 1855 to 1866, provided for Free Trade in a large
number of natural products and helped to shift Canadian trade to a north-south pattern.

In 21st century, Canada continues to be heavily connected to and dependent on the rest of
the world. More than 80 per cent of Canadians use the Internet. More than two-thirds of
television-viewing time is devoted to foreign programming. More than 20 per cent of the
Canadian population is foreign-born. Every year, Canadians make about 30 million trips of one
night or longer to other countries. Foreigners have invested more than $600-billion in Canada.
Exports, mostly to the U.S., amount to about one third of Canada's gross domestic product
(GDP).

As a result, globalization has helped lift millions of people out of poverty, its supporters
say. Globalists also insist that economic integration helps the cause of world peace. Nations are
much less likely to go to war when they are economically dependent on each other. As for
Canada, since the Second World War, the country has become more dependent on international
trade, but most of this trade has been with the U.S., not the rest of the globe.

Canada has 11 free trade agreements currently in force, and according to the World Bank,
trade accounts for 65 percent of the country’s economy. The oldest deal is NAFTA, which came
into effect in 1994 after superseding a previous deal between Canada and the U.S. from 1989.

NAFTA is Canada’s only free trade agreement with one of the world’s top 10 GDP
countries—the U.S. Canada does trade freely with other countries, including Panama, Israel,
Chile, and Peru, but these aren’t exactly huge trade partners. Most of the countries Canada has
agreements with have economies that rank in the top third of the world, often a far cry from the
top 10. Although the growth rate of China’s economy is slowing down, it’s the second largest
economy in the world, which makes a trade deal appealing for Canada according to Jia Wang,
acting director of the China Institute at the University of Alberta.

Using trade as a way to move the needle on issues such as human rights has long been
one of the underlying benefits of globalization. Rather than isolating nations and leaving them to
their own devices, trade brings with it a degree of global accountability. Trudeau has staked
much of his reputation on being a moral authority, and if he’s going to hold onto his image as a
beacon of human rights, dignity, and equality, then his government will need to make
discussions about China’s stance on human and labor rights a central focus of trade talks.

Tracey Ramsey is a member of the NDP, Canada’s opposition party, and is the Critic for
International Trade and vice chair of the Parliamentary Standing Committee on International
Trade. “The NDP has serious concerns about human rights, labor conditions, environmental
conditions,” she said. Ramsey stressed the importance of improving standards in these areas in
any agreements, and emphasizes the importance of raising concerns around human rights
violations in China as early as the stage of exploratory talks.

For her, any agreements going forward also need to benefit middle class Canadians.
Deals must ensure small- and medium-size businesses will have access to the resources they
need to establish trade with China and with global markets more generally. Ramsey recommends
more business education that focuses on how companies can position themselves globally. At a
time when it might seem politically advantageous to say no to free trade and globalization,
Canada is moving toward it—as it should.

Regionalism refers to the distinctive local character of a geographic area, or to a people's

perception of and identification with such places. In Canada, regional identities were formed
after Europeans settled across the continent among distinct First Nations tribes. Today,
regionalism is expressed in various provincial identities, in our economy, and in the daily
textures of life in different parts of the land.

Canadian regionalism is now most vigorously promoted by provincial politicians and is

most stridently expressed in federal-provincial debate, but underneath this rhetoric lies the far
more subtle regional texture of Canadian life. It is expressed in the distinctive landscapes of
farm, village and city, across the breadth of Canada. It is expressed in different accents and
different memories of different pasts. It is expressed in the ways of life associated with different
resource-based economies in different physical settings. It is expressed in the relationships of
towns to different hinterlands and to different positions in the urban system. And it is expressed
most sensitively throughout Canadian painting and literature.

Regionalism, and concern for the development of one's own area over the development of
the whole country, has been a constant feature of Canadian history since before Confederation.

Atlantic Region:
 Made up of the Atlantic provinces of Newfoundland and Labrador, Nova Scotia, New
Brunswick, and Prince Edward Island. Although these areas were the first parts of the
country to be discovered and settled, their economic development has been marginal.
Small isolated fishing towns and some resource extraction, mainly primary industries,
have contributed to the lack of development. Also, the distance to markets and centers of
population as well as the fact that most manufacturing is centered in the Great Lakes and
St. Lawrence Lowlands region hampered economic development. This is generally
regarded as the poorest area of Canada and has traditionally been eligible
for equalization payments from the federal government. With oil and gas developments
off the coast of Newfoundland and Labrador, however, as well as natural gas deposits off
Nova Scotia this could change in the near future.

Quebec Region:
 The province of Quebec represents a particular region because of the French influence
that has been such an important part of its history. Therefore, issues of language and
culture have always been of particular importance here. This has affected all its relations
with the rest of Canada.

Central Region:
 The provinces of Ontario and Quebec are considered central Canada. Historically, the
Great Lakes-St. Lawrence lowlands have developed much more rapidly than any other
region of Canada. This region has dominated our economy and history since it is the most
populated part of the country and contains most of Canada's major manufacturing plants.
It has often been referred to as the industrial heartland of Canada. The rich mineral
resources of the Canadian Shield that are easily accessible to the region have aided its
industrialization. For this reason it is also generally regarded as the richest area of
Canada. It is frequently viewed with envy by other parts of the country since it does have
such large influence over national decisions and our economy.

Western Region:
 Using the broad definition of Western Canada, it includes Manitoba, Saskatchewan,
Alberta, and British Columbia. This area of the country is very diverse and contains rich
farming regions, wealthy oil and natural gas areas, as well as abundant wood and mineral
extraction industries. On the west coast, fishing has been a major industry for
generations. Since these regions developed after the industrial strength of central Canada
was established, their initial development was designed to provide central Canada with
 raw materials and markets. As industries developed in the west, shipping costs made it
difficult for them to compete with industries in the industrial heartland. Many in the west
feel the federal government does not pay enough attention to their needs resulting in a
feeling of western alienation . Many splinter political parties have started in the west
because of these feelings of alienation.

Northern Region:
 This includes the three territories of the Yukon, North West Territories, and Nunavut.
These areas are Canada's last frontier and have huge potential for natural resources.
Sparsely populated, with a large number of native groups, this region could make a
significant contribution to Canada's development in the future.

Over the years the federal government has attempted to equalize living standards across
Canada through various programs, starting with the system of income transfers that resulted from
the Rowell-Sirois Commission in 1940. In 1962 the Area Development Agency attempted to
foster economic growth and development in depressed regions. In 1969 the federal government
established the Department of Regional Economic Expansion (DREE). DREE's mandate was to
create economic opportunities in poorer areas of the country. Companies were given grants to set
up factories in these areas. In some provinces, the federal and provincial governments shared the
responsibility for overseeing and financing DREE's efforts. Naturally, in the economically
depressed provinces the federal government assumed a larger share of the cost.

References:

Cole Harris, R., & Tattrie, J. (2015, October 28). Regionalism | The Canadian
Encyclopedia. The Canadian Encyclopedia © 2020 | Historica Canada.
https://www.thecanadianencyclopedia.ca/en/article/regionalism

Thomson, L. (2016, November 2). Canada Embraces Free Trade and Globalization –
World Policy. WORLD POLICY INSTITUTE © 2018.
http://worldpolicy.org/2016/11/02/canada-embraces-free-trade-and-globalization/

Azzi, S. (2015, January 30). Globalization | The Canadian Encyclopedia. The Canadian
Encyclopedia © 2020 | Historica Canada.
https://thecanadianencyclopedia.ca/en/article/globalization

Regionalism in Canada. (2006). Open School BC.

http://bclearningnetwork.com/LOR/media/SS11/COURSE_4034644_M/my_files/module3/secti
on3/lesson1/topic1.html

The Economy and Economic Policy. (n.d.). Bank of Canada. Retrieved October 5, 2020,
from https://www.bankofcanada.ca/publications/books-and-monographs/why-monetary-policy-
matters/1-economy/#footnote-5

Canada and the United Nations. (2020, August 11). GAC.

https://www.international.gc.ca/world-monde/international_relations-
relations_internationales/un-onu/index.aspx?lang=eng

Lois Macklin, B.Sc., M.A., Ph.D., R.P.F.& Axel Meisen, C.M., Ph.D., P. Eng., Eurlng, FCAE.
Jasper Innovation Forum 2011 Summary Report The Global North 2050. (2011, November 22 to
25) http://cnnro.ca/wp-content/uploads/2015/03/AITF-Forum-Summary-Report-2011.pdf