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The State, Business, and Industrial Chan

The State, Business, and Industrial Chan

Copyright Date: 1989
Pages: 250
  • Book Info
    The State, Business, and Industrial Chan
    Book Description:

    Through the lens of these sectors Coleman and Atkinson shed considerable light on the intersection of political considerations and policy development, and offer a new base on which to move forward in planning for economic growth.

    eISBN: 978-1-4426-5971-1
    Subjects: Business, History, Political Science

Table of Contents

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  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
  3. Preface
    (pp. ix-x)
  4. Abbreviations
    (pp. xi-2)
  5. Introduction: Political Institutions and Public Policy
    (pp. 3-12)

    The debate in Canada in the 1980s over a policy for Canadian industry had some striking similarities to the debate that took place exactly a century earlier. The big issues appeared to be the same. On one side, there were the proponents of free trade with the United States. These included industrialists dependent on American firms for intermediate goods, some sections of the farming community fearful of the costs associated with trade barriers, and resource firms already exporting heavily to the United States. Among the opponents of free trade were global traders and economic nationalists concerned about the political and...

  6. Part One State and Economy:: An Institutional Perspective

    • 1 Industrial Policy Options in a Changing Global Context
      (pp. 15-31)

      Canadians are constantly reminded of their middle-power status in the international economic system. Although a participant in the economic summit process, Canada is often excluded from direct participation in key decisions, particularly monetary decisions, taken by the finance ministers of the largest oecd (Organization for Economic Cooperation and Development) countries. Invited to some parties but not to others, Canada exists in something of a shadow world on the international economic stage.

      This ‘neither here nor there’ status is responsible, in important respects, for the ambivalent and ambiguous nature of much of Canadian economic policy. Like most of her partners in...

    • 2 Industry Structure, Business Dominance, and Industrial Policy
      (pp. 32-52)

      The character of industrial policy in developed capitalist systems is a function of the organization of society and the organization of the state. In this chapter we explore the structure of Canadian society and those interests whose organization has been critical to the formation of industrial policy. As we have already suggested, the most important of these is business. Although, as the subsequent discussion will show, the role played by other social classes has had a formative effect on the expression of business interests in the industrial-policy arena, none of these social classes has been capable of dislodging business from...

    • 3 State Tradition, Bureaucratic Culture, and Industrial Policy
      (pp. 53-76)

      The object of this chapter is to suggest how the structure of the Canadian state has contributed to the evolution of industrial policy in Canada. Both the architecture of Canadian institutions and the beliefs of bureaucratic officials are the focus of this analysis. This chapter identifies and discusses both the critical organizational properties of the Canadian state and the beliefs of bureaucrats about the appropriateness and feasibility of state intervention.

      We argue that Canada has only a weak state tradition; that is, the idea of ‘the state’ is only rudimentally appreciated. This circumstance is the product, in part, of Canada’s...

    • 4 Policy Networks and Sector Strategies
      (pp. 77-94)

      The preceding chapters have identified global, or macro, constraints on the development of industrial policy in Canada. Chapter two argued that although many business associations exist in Canada, business is dominated by a firm-centred industry culture that has discouraged the development of vertically integrated encompassing organizations that are able to represent the collective interests of business. In chapter three, Canada was described as a country with a weak state tradition. There have been numerous examples of state intervention, but no understanding of the state as a separate entity, and no administrative-bureaucratic élite committed to broad projects of industrial development.


  7. Part Two The Political Economy of Industrial Policy

    • 5 The Political Economy of International Expansion: Telecommunications Manufacturing
      (pp. 97-121)

      Since the very beginnings of settlement in British North America, political leaders have viewed transportation and communications as instruments of both economic and political integration. The Canadian Pacific Railway was built with a view to nation building and Trans Canada Airways (later Air Canada) was created to serve the goal of political integration by setting up an east-west trunk line through which smaller firms could link remote settlements in the north, west, and east to the metropoles in central Canada. Improving technology for long-distance communications has occupied a similar if less glamorous role in the process of nation building. Harsh...

    • 6 The Political Economy of Domestic Expansion: Pharmaceuticals
      (pp. 122-141)

      The Pharmaceuticals industry is truly a twentieth-century creation. The home preparation cure-alls of the nineteenth century have given way to an industry of astounding size and profitability. Exponential growth in the industry began with the discovery and patenting of the antibiotics penicillin, streptomycin, and tetracycline in the 1930s and 1940s, followed by the coricosteroids, antihistamines, antidepressants, and diuretics of the 1950s and 1960s.’ These preparations have had a dramatic impact on diseases such as tuberculosis and pneumonia and have ushered in an era of drug therapy in the treatment of mental illness. While improved diet, hygiene, and public health have...

    • 7 The Political Economy of Transition: Petrochemicals and Meat Processing
      (pp. 142-161)

      This chapter examines the formation of industrial policy in two mature sectors of the economy, petrochemicals and red-meat processing. Both these industries felt the effects of a slow-down in the 1970s after a long growth phase. As such, they pose similar problems for policy makers: how to maintain market share in the face of slower growth and increasing international competition; how to reconcile resource, industrial, and regional development policies.

      These industries share several other properties as well. First, both derive a comparative advantage in international markets from the Canadian resource base: petrochemicals from oil and natural-gas feedstocks; meat processing from...

    • 8 The Political Economy of Retrenchment: Textiles, Clothing, and Dairy Products
      (pp. 162-184)

      Dairy products and textiles and clothing provide examples of industrial sectors engaged in a process of retrenchment: special and stringent trade-protection measures have been required to prevent a precipitous decline. Both are sectors where, with one or two specific exceptions, Canada enjoyed no comparative advantage in the 1980s.

      The primary-textiles industry developed late in the last century and gradually prospered as a consequence of the growing population, favourable tariffs, access to hydroelectric power, and the availability of relatively cheap labour. Selected parts of the textile and clothing industries continue to prosper, but many others, especially in the clothing sector, have...

  8. Conclusion: The State and Policy Options
    (pp. 185-196)

    In reviewing the theory and practice of industrial policy in Canada, two fundamental features of policy outcomes have become evident. First, industrial policy is riddled with inconsistencies; there are very few readily identifiable patterns to policy making. The state can intervene heavily in one sector such as space satellites while assuming a nineteenth-century laissez-faire stance in the contiguous sector of telecommunications equipment. The same state can initiate a process of concertation to assess problems in the manufacture of petrochemicals while simultaneously introducing a wide-ranging program of energy development involving significant intervention into the sector and the promotion of a public...

  9. APPENDIX General Format of Interviews with Public Officials
    (pp. 197-200)
  10. Notes
    (pp. 201-228)
  11. Index
    (pp. 229-236)
  12. Back Matter
    (pp. 237-237)