Fiscal viability and the constitutional development of Canada's northern territories

Abstract

ABSTRACTThe constitutional development of the Yukon and the Northwest Territories has become a topic which is debated with increasing frequency and by an ever-widening group of participants. Provincial status is seen by many as the logical, ultimate goal. Admission of new provinces to the confederation, previously a rather straightforward process, depends on conditions which the Constitution Act of 1982 has altered. For the first time candidates are now required to be fiscally sound prior to admission. In this paper the circumstances in which Canada's northern territories might become fiscally viable are investigated, using simulation analysis. It is concluded that fiscal viability awaits the development of some of the frontier mega-projects proposed in recent years.