Privatizing the Crown: The Exceptional Fate of Alberta's Liquor Control Board

Abstract

A dramatic policy shift provides a means for understanding decision-making in governments. The privatization of the Alberta Liquor Control Board (ALCB) in 1993 is an example of a radical governance reform whereby most of a policy sector was turned from a state bureaucracy to a marketplace of private firms. This article examines the decision of Ralph Klein's government to privatize the ALCB and the central roles that history, institutional configurations, and path dependencies, among other factors, played in shaping its policy decisions. Of all the provinces, only Alberta has fully privatized its liquor board. The rest of the provinces, to varying degrees, have both retained and reformed their publicly owned and operated liquor boards, the largest of which is the Liquor Control Board of Ontario (LCBO). The unique policy outcome in Alberta was primarily a result of province-specific, temporally significant institutional and political factors. Liquidating the ALCB and establishing a private market to sell alcohol were relatively easy policies for the Klein Tories to implement given the weakness of the affected stakeholders in the liquor distribution industry. The liquidation of the ALCB was intended to demonstrate to the public that the new Klein government was dedicated to reducing the size and scope of Alberta's provincial state.