Abstract
Abstract This article examines Canada’s relative success in restoring ‘economic inclusion’ and ‘inclusive growth’ between the political and economic disruptions of the 1990s and the mid-2010s. Noting competing views of the concept of ‘inclusion’, it explores four major factors which contributed to reducing domestic tensions during this period. These include the intentional accommodation of diverse regional interests through increased decentralization of Canadian federalism, the use of international trade policies to facilitate largely complementary regional economic policies, the restoration of fiscal sustainability in federal economic policies and to varying degrees across provinces, and the cultivation of cross-partisan consensus on immigration policies to avoid the social polarization experienced in other industrial countries. It concludes by noting areas of political vulnerability with the potential to disrupt this consensus.
Highlights
Profound economic shocks may unearth deep social and cultural cleavages hidden or assuaged during times of relative prosperity
The Po litic s o f ‘Economic Inclus ion’ in Can ada right and the radical or populist left in several major industrial countries, including the 2016 Brexit referendum, Donald Trump’s subsequent election and the disruption or replacement of dominant centre-left or centre-right parties by radical or populist challengers in several European countries. These developments have seriously disrupted the varied compromises of market liberalism, ‘third way’ social democracy and their national variants in the United States and other countries
Several major factors have contributed to these upheavals: the disruption of established economic or social regimes; prolonged periods of high unemployment and/or widespread income stagnation; growing regional economic disparities, contributing to increased inequality and/or declines in social or economic mobility; and the inability or unwillingness of political leaders to recognize and respond to these challenges
Summary
Profound economic shocks may unearth deep social and cultural cleavages hidden or assuaged during times of relative prosperity.
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