Against the backdrop of the international trends discussed in last year's report, all governments in Canada are facing considerable pressure to adapt their roles to address contemporary needs within society's collective means. In response to pressure for change, governments have already made considerable progress. The profound realignment of roles under way will have major significance for all governments and for every citizen.
An exceptional story about reinventing the role of government is being written in Canada today
The magnitude and nature of the transformation under way and the period of time over which the transformation is occurring are unprecedented since World War II. Time will tell if the right decisions have been made and the right balance has been achieved, but it is already clear that an exceptional story about reinventing the role of government is being written in Canada today.
Regaining fiscal sovereignty
For the first time in a long while, Canada is on its way toward regaining its fiscal sovereignty. There is light at the end of the tunnel.
Five years ago, Canada was facing a serious fiscal problem at both the federal and provincial levels. In 199293, the aggregate federal-provincial-territorial deficit had reached 9.6 percent of gross domestic product (GDP). Today, seven provinces have balanced their budgets and five are repaying their debt. As a result, the combined provincial-territorial deficit has been cut by a full 50 percent since 199293.
At the federal level, the deficit amounted to 6 percent of GDP in 199394. In relation to GDP, the 199798 financial requirements (the amount of new borrowing from financial markets) will be the lowest since 196970 and the lowest of any central government in the seven leading industrialized democracies, the G-7 countries. By 199899, federal program expenditures (which include all federal spending except interest payments) as a percentage of GDP will be at the lowest level since 194950.
This turnaround was achieved without a major service or system breakdown and without the civil unrest that many other countries have experienced. These results are a tribute to the resolve of ministers and governments, who made difficult decisions. But also, and in no small way, they are a tribute to the creativity and the skill of federal and provincial public servants who put forward ambitious proposals and oversaw their careful implementation. This work continues to be carried out every day -- with patience, competence and rigour.
While the implications of these changes will take time to assess, if governments pursue their current course, it may mean that
Governments had to make real choices and set clear priorities
These impressive results were achieved over a very short period of time. To accomplish them, governments had to move away from the approach of "doing more with less" and recognize the need to make real choices and set clear priorities.
Recognizing that an effective public sector is an essential and critical part of a well-functioning society, governments will soon face two difficult questions:
1. What should government do, within society's means, to ensure a well-performing modern society?
2. As Canada prepares for the next millennium, what priorities should be pursued to contribute to the betterment of Canada and Canadians?
Program Review
A central thrust of the Government of Canada's renewal efforts has been Program Review, through which all programs and activities were examined to redefine the role of the government in the future, in accordance with Canada's collective means.
The outcome of Program Review has already been made public by the President of the Treasury Board in the House of Commons on March 7, 1996. That statement about the basic function of the government is important because it provides a focus for what the government does, and it establishes a benchmark against which all government activities can be assessed.
It affirms that the Government of Canada can best serve Canadians by concentrating its activities around five core roles:
1. Ensuring that Canada speaks with one voice in the community of nations on issues of concern to all Canadians. This role addresses the need to defend Canada's sovereignty in a global environment, and includes areas such as foreign policy, international trade, peacekeeping, immigration and defence.
2. Protecting and strengthening the efficiency of the Canadian economic union. The Canadian economic union is the base from which Canadian firms and industries learn to compete in the global economy. It is also the economic space where Canadians exchange goods and services, and where wealth and jobs are created. The role of the government includes setting framework laws that ensure the effective operation of the marketplace, such as bankruptcy, competition, and intellectual property laws, as well as sectors of regulatory activity, such as environmental or consumer protection.
3. Protecting and strengthening the Canadian social union and the solidarity of Canada. The social union contributes to the quality of life, security and safety of all citizens. It is the sharing community. It also contributes to attracting and retaining domestic and international investment, and it plays a key role in the creation of jobs. To those in need, it provides a system of mutual help, such as assistance to youth, to the elderly and to the unemployed, through transfer and equalization programs. It is therefore a contributor to a strengthened federation.
4. Managing the pooling of resources for the pursuit of collective goals where a single program or centre of expertise would be more efficient and where there is a limited need for diversity. This role recognizes the contribution of the Geological Survey of Canada, the Canadian Hydrographic Service, the Atmospheric Environment Service, and Statistics Canada, among others. It recognizes that there are occasions when citizens are best served by pooling resources.
5. Acting as the guardian of citizens' rights in a democratic society of parliamentary tradition, governed by the rules of law that protect and promote Canadian values and identity while celebrating our diversity. This role addresses a wide range of issues, from the government's fiduciary responsibility to Native people to official languages to law enforcement. Security of life and property is one of the hallmarks of Canada, and it contributes to the quality of life and the standard of living of Canadians.
Implementation is always the most difficult part of any reform. It requires courage, persistence and resolve. It is also the test that reveals the true quality of reform.
As decisions are implemented to their full conclusion, Canadians will discover the real extent of the reform that is under way. The most visible sign to date has been "less government." This results from the many difficult decisions that governments have made to reduce services in some areas and eliminate them in others, in order to realign the role of government to address contemporary needs within society's collective means.
Governments are contributing to profound change in Canadian society
A more careful look, however, reveals that while governments are making decisions to reduce the level of indebtedness and bring Canada closer to the goal of balanced budgets, they are at the same time contributing to a profound change in Canadian society. This change includes
The reforms to date lay the basis for the changes to come.
Forging a new relationship among governments
The public debate on overlap and duplication between governments lags behind the reality of change in Canada
The realignment of roles by all governments in Canada has substantially reduced the degree of overlap and duplication among governments that existed even a few years ago. Today, the public debate on overlap and duplication lags behind the reality of change in Canada. Many of the issues of concern to governments and to the public in the 1980s and early 1990s have either been resolved or are being addressed. The examples are many:
As a result of the progress to date, the direction of reform is now starting to shift from a clarification of roles and responsibilities to the more complex but promising task of forging and defining a more modern partnership among governments.
The notion of airtight compartments is giving way to managing interdependence among governments
As the earlier decisions on roles and responsibilities are being implemented, governments are discovering that no amount of streamlining or downsizing -- no definitions or statements of roles and responsibilities -- will ever replace the need for governments to work together to meet the needs of Canada and Canadians in the 21st century. The notion of airtight compartments is giving way to managing interdependence among governments to better serve citizens. Again, there are many early signs of progress.
Building on the progress to date, and providing there is a will and circumstances are favourable, the coming years could see the emergence of a new relationship among governments. The next challenge will be to set priorities and make decisions together. Over time, the approach to services to Canadians -- and their delivery -- could change dramatically.
Laying the basis for new partnerships
As governments have focussed on realigning the role of their public sectors, some conclusions about governance in a modern society have become clearer.
Governments must learn about partnership
Partnerships in pursuit of the public interest have great potential in the reform of the public sector
Partnerships in pursuit of the public interest are not easy to forge -- they take time, they often require cultural change and they come with responsibilities -- but they can lead to results well beyond the reach of members acting alone.
There are already many examples of public sector partnership in pursuit of the public interest:
Partnership arrangements recognize that government does not need to "do it all" for the public interest to be well served
Partnership arrangements recognize that government does not need to "do it all" for the public interest to be well served. While there are already many examples of public-private partnership, more and more diverse types of partnerships will emerge over the coming years as lessons are learned from the experiments currently under way in every government and every department.
Changing the relationship between government and citizen
As governments set new priorities, they are also changing the relationship between government and citizen.
Citizens anticipate getting better government
One of the reasons that Canadians support governments as they take the necessary and difficult decisions to set priorities in order to live within society's collective means is that citizens anticipate getting better government and better quality service for the services that remain. They expect
And finally, citizens expect
Summary
Today, there is a great deal of modernization and experimentation under way in government. This extends to the evolving relationship between levels of government, partnerships with other sectors, and the changing relationship between government and citizens. Over time, these efforts have the potential to change significantly the way governments serve Canadians. Taken together, these measures could also contribute to the renewal of the federation and the strengthening of Canadian unity.
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