CANADA
Canada federated country of
North America, bounded on the north by the Arctic Ocean; on the northeast by
Baffin Bay and Davis Strait, which separate it from Greenland; on the east by
the Atlantic Ocean; on the south by the United
States; and on the west by the Pacific Ocean and Alaska. It was formerly
known as the Dominion of Canada. Occupying all of North America north of the
conterminous United States,
except Alaska, Greenland, Saint-Pierre Island,
and the Miquelon Islands,
Canada is the world's second
largest country, surpassed in size only by Russia. It includes many islands,
notably the Canadian Arctic Islands
(Arctic Archipelago) in the Arctic Ocean.
Among the larger members of this group, which in aggregate area is about
1,424,500 sq km , are Baffin, Victoria,
Ellesmere, Banks, Devon, Axel Heiberg, and
Melville islands. Cape Columbia, a promontory of Ellesmere Island at latitude
83°06' north, is the northernmost point of Canada; the country's southernmost
point is Middle Island
in Lake Erie, at latitude 41°41' north. The
easternmost and westernmost limits are delineated, respectively, by longitude
52°37' west, which lies along Cape
Spear, Newfoundland,
and longitude 141° west, which coincides with part of the Alaskan-Yukon
frontier. Canada has a total
area of 9,970,610 sq km , of which 755,180 sq km is covered by bodies of fresh water such as
rivers and lakes, including those portions of the Great
Lakes under Canadian jurisdiction.
Canada contains great reserves of
natural resources, notably timber, petroleum, natural gas, metallic minerals,
and fish. It is also an important manufacturing country, and its major cities,
such as Toronto, Montréal, Vancouver,
Ottawa (the country's capital), Edmonton,
Calgary, and Winnipeg are bustling centers of commerce and
industry. Most of Canada's
inhabitants live in the southern part of the country, and vast areas of the
north are sparsely inhabited. The country is divided into ten provinces (Alberta, British Columbia,
Manitoba, New Brunswick,
Newfoundland, Nova Scotia,
Ontario, Prince Edward
Island, Québec, Saskatchewan)
and two territories (Northwest Territories, Yukon Territory, Nunavut Territory). The name Canada is derived from the
Iroquoian term "kanatta" meaning
"village" or "community."
Land
and Resources
The coast of the Canadian mainland, about 58,500
km in length, is extremely broken and
irregular. Large bays and peninsulas alternate, and Canada
has numerous coastal islands, in addition to the Arctic
Archipelago, with a total insular coastline of some 185,290 km .
Off the eastern coast the largest islands are Newfoundland,
Cape Breton,
Prince Edward, and Anticosti. Off the western
coast, which is fringed with fjords, are Vancouver Island and the Queen Charlotte Islands. Southampton Island, covering
41,214 sq km , and many smaller islands are in Hudson Bay, a vast inland sea in
east central Canada.
Canada contains more lakes
and inland waters than any other country in the world. In addition to the Great
Lakes on the U.S. border
(all partly within Canada
except Lake Michigan), the country has 31
lakes or reservoirs of more than 1300 sq km
in area. Largest among these lakes are Great Bear, Great Slave and Baker
in the mainland Northwest Territories; Nettilling and Amadjuak on Baffin Island;
Athabasca in Alberta and Saskatchewan; Wollaston in Saskatchewan; Reindeer in
Saskatchewan and Manitoba; Winnipeg, Manitoba, Winnipegosis, and Southern
Indian in Manitoba; Nipigon and Lake of the Woods in Ontario; Mistassini in
Québec; and Smallwood Reservoir and Melville in Newfoundland.
Among the
great rivers of Canada are the Saint Lawrence, draining the Great Lakes, and
emptying into the Gulf of Saint Lawrence; the Ottawa and the Saguenay, the
principal affluents of the Saint Lawrence; the Saint John, emptying into the
Bay of Fundy, between Nova Scotia and New Brunswick; the Saskatchewan, flowing
into Lake Winnipeg, and the Nelson, flowing from this lake into Hudson Bay; the
system formed by the Athabasca, Peace, Slave, and Mackenzie rivers, emptying
into the Arctic Ocean; the upper course of the Yukon, flowing across Alaska
into the Bering Sea; and the Fraser and the upper course of the Columbia,
emptying into the Pacific Ocean.
Physiographic Regions
Excluding
the Arctic Archipelago, five general physiographic regions are distinguishable
in Canada: The Canadian
Shield, Appalachian, Great Lakes, Saint
Lawrence, Interior Plains, and Cordillera. The largest region, designated
either as the Canadian Shield or the Laurentian Plateau, extends from Labrador
to Great Bear Lake, from the Arctic Ocean to the Thousand Islands in the Saint
Lawrence River, and into the United States west of Lake Superior and into
northern New York. This region of ancient granite rock, sparsely covered with
soil and deeply eroded by glacial action, comprises all of Labrador (the
easternmost part of the mainland, which is part of the province of
Newfoundland), most of Québec, northern Ontario, Manitoba, and most of the
Northwest Territories, with Hudson Bay in the center.
Eastern Canada consists of the Appalachian region and the Great
Lakes-Saint Lawrence lowlands. The former embraces Newfoundland,
Nova Scotia, New
Brunswick, and Prince
Edward Island, and the Gaspé Peninsula of Québec.
This region is an extension of the Appalachian mountain system (continuations
of the Green Mountains of Vermont and the White Mountains of New Hampshire) and
of the Atlantic Coastal Plain. The Great Lakes-Saint Lawrence lowlands region,
covering an area of about 98,420 sq km
in southern Québec and Ontario,
is a generally level plain. This region includes the largest expanse of
cultivable land in eastern and central Canada and most of the
manufacturing industries of the nation.
Bordering
the Canadian Shield on the west is the Interior Plains, an extension of the
Great Plains of the United
States. About 1300 km wide at the U.S. border, it narrows to about
one-quarter of that size west of Great Bear Lake and widens again at the mouth
of the Mackenzie River on the coast of the Arctic Ocean to about 500 km .
Within the Interior Plains are the northeastern corner of British
Columbia, most of Alberta, the
southern half of Saskatchewan, and the
southern third of Manitoba.
This region contains the most fertile soil in Canada.
The fifth
and westernmost region of Canada
embraces the uplifts west of the Interior Plains. The region belongs to the
Cordillera, the vast mountain system extending from the southernmost extremity
of South America to westernmost Alaska.
In Canada,
the Cordillera has an average width of about 800 km . Part of western Alberta, much of British Columbia,
the Inuvik Region and part of the Fort Smith Region of Northwest Territories,
and practically all of Yukon
Territory lie within this region. The eastern portion
of the Cordillera in Canada
consists of the Rocky Mountains and related ranges, including the Mackenzie, Franklin, and Richardson
mountains. Mount Robson (3954 m) is the
highest summit of the Canadian Rockies, and ten other peaks reach elevations of
more than 3500 m . To the west of the Canadian Rockies is a region occupied by
numerous isolated ranges, notably the Cariboo, Stikine, and Selkirk
mountains, and a vast plateau region. Deep river valleys and
extensive tracts of arable land are the chief features of the plateau region,
particularly in British Columbia.
Flanking this central belt on the west and generally parallel to the Pacific Ocean is another great mountain system. This
system includes the Coast Mountains, an extension into British
Columbia of the Cascade Range of the United States, and various coastal
ranges. The loftiest coastal uplift is the Saint Elias Mountains, on the
boundary between Yukon Territory and Alaska. Among noteworthy
peaks of the western Cordillera in Canada are Mount Logan (5951 m/19,524 ft,
the highest point in Canada and second highest mountain in North America after
Mount McKinley), Mount Saint Elias (5489 m/18,008 ft), Mount Lucania (5226
m/17,147 ft), and King Peak (5173 m/16,971 ft); all are in the Saint Elias
Mountains.
Geology
The
Canadian Shield, which occupies the eastern half of Canada's landmass, is an ancient craton,
or stable platform, made up of rocks that formed billions of years ago, during
the Precambrian time of earth history. The shield, with its assemblage of granites,
gneisses, and schists 2 to 4 billion years old, became the nucleus of the North
American plate at the time that the earth's crust first began experiencing the
tectonic forces that drive continental drift. See also North
America: Geological History.
During
the Paleozoic era, large parts of Canada were covered by shallow
seas. Sediments deposited in these seas formed the sandstone, shale, and
limestone that now surround the Canadian Shield.
The Cambrian and Silurian systems are represented by great thicknesses of
strata that appear in outcroppings in Nova Scotia,
New Brunswick, and Newfoundland,
along the Saint Lawrence Valley, and on the shores of Lake Ontario.
Flat-lying beds of Paleozoic and younger rocks extend westward across the
Interior Plains throughout the prairie provinces
of Alberta, Saskatchewan,
and Manitoba.
In these areas, the rocks contain valuable deposits of oil and gas. In the
Cordilleran region of western Canada,
the rocks were subjected to tectonic forces generated by the collision of the
North American plate with the Pacific plate. In the ensuing upheavals, which
began during the Cretaceous period, mountain ranges rose throughout the
Cordilleran region. The easternmost of these ranges, the Rocky Mountains, are
similar in structure to the mountains of Colorado,
Wyoming, and Montana, having been built by uplift and
folding of sedimentary rocks and, in lesser degree, by volcanic activity. The
strata of which they are composed range in age from Paleozoic to Tertiary and
contain valuable deposits of base and precious metals as well as fossil fuels.
During
the Quaternary period, nearly all of Canada
was covered by vast ice sheets that terminated in the northern United States.
Landscapes were profoundly modified by the erosive action of this vast mass of
moving ice, particularly in the creation of Canada's many thousands of lakes
and its extensive deposits of sand, clay and gravel. See also Ice Ages.
Climate
Part of
the Canadian mainland and most of the Arctic Archipelago fall within the Frigid
Zone; the remainder of the country lies in the northern half of the North Temperate Zone. As a consequence, general climatic
conditions range from the extreme cold characteristic of the Arctic regions to
the moderate temperatures of more southerly latitudes. The Canadian climate is
marked by wide regional variations. In the Maritime provinces (New Brunswick,
Nova Scotia, and Prince Edward Island), extremes of winter cold and summer heat
are modified by oceanic influences, which also cause considerable fog and
precipitation. Along the western coast, which is under the influence of warm
ocean currents and moisture-laden winds, mild summers and winters, high
humidity, and abundant precipitation are characteristic. In the Cordilleran
region the higher western slopes of certain uplifts, particularly the Selkirks
and the Rockies, receive sizable amounts of
rain and snow, but the eastern slopes and the central plateau region are
extremely arid. A feature of the Cordilleran region is the chinook, a
warm, dry westerly wind that substantially ameliorates winter conditions in the
Rocky Mountain foothills and adjoining plains, often causing great daily
changes. For further climatic information, see articles on the individual
provinces.
Natural Resources
Canada is richly endowed
with valuable natural resources that are commercially indispensable to the
economy. The country has enormous areas of fertile, low-lying land in the Prairie provinces (Alberta,
Manitoba, Saskatchewan)
and bordering the Great Lakes and Saint Lawrence River in southern Québec and
southern Ontario.
Canadian forests cover about 49 percent of the country's land area and abound
in commercially valuable stands of timber. Commercial fishing in Canada dates
back nearly 500 years, and ocean waters, inland lakes, and rivers continue to
support this industry. The mining industry of Canada has a long history of
exploration and development that predates confederation in 1867. The Canadian Shield contains a wealth of minerals; the nation
is also rich in reserves of crude petroleum and natural gas. The river and lake
systems of the country combine with the mountainous topography to make
hydroelectric energy one of the permanent natural assets of Canada. The
wildlife of the country is extensive and varied.
Vegetation
The flora
of the entire northern part of Canada
is arctic and subarctic . A good part of the Maritime provinces is covered by forests of
mixed hardwoods and softwoods. The Prairie provinces
are comparatively treeless as far north as the Saskatchewan
River system; prairie grasses, herbage, and bunchgrasses are the
chief forms of vegetation. North of the Saskatchewan
a broad belt of rather small and sparse trees extends from Hudson Bay to Great
Slave Lake and the Rocky Mountains. Spruce,
tamarack, and poplar are the principal species. The dry slopes and valleys of
the Rocky Mountains support thin forests,
mainly pine, but the forests increase in density and the trees in size westward
toward the region of greater rainfall. On the coast ranges, especially on their
western slopes, are dense forests of mighty evergreen trees. The principal
trees are the spruce, hemlock, Douglas and
balsam firs, jack and lodgepole pines, and cedar.
Animals
The
animals of Canada are very
similar or identical to those of northern Europe and Asia.
Among the carnivores are several species of the weasel subfamily, such as the
ermine, sable, fisher, wolverine, and mink. Other representative carnivores
include the black bear, brown bear, lynx, wolf, coyote, fox, and skunk. The polar
bear is distributed throughout the arctic regions; the puma, or American lion,
is found in British Columbia.
Of the rodents, the most characteristic is the beaver. The Canadian porcupine,
the muskrat, and many smaller rodents are numerous, as are hare, and in the
Interior Plains a variety of burrowing gopher is found.
Several
varieties of Virginia deer are indigenous to southern Canada; the black-tailed deer occurs in British Columbia and
parts of the plains region. This region is also the habitat of the pronghorn
antelope. The woodland caribou and the moose are numerous and widely
distributed, but the Barren Ground caribou is found only in the more northern
areas, which are also the habitat of the musk-ox. Elk and bison are found in
various western areas. In the mountains of British
Columbia bighorn sheep and Rocky Mountain
goats are numerous. Birds are abundant and diverse, and fish are numerous in
all the inland waters and along all the coasts. Reptiles and insects are
scarce, except in the far south
Population
The
racial and ethnic makeup of the Canadian people is diversified. About 28
percent of the population is composed of people of British origin. People of
French origin total about 23 percent of the population. The vast majority of
French-speaking Canadians reside in Québec, where they make up about
three-fourths of the population; large numbers also live in Ontario
and New Brunswick,
and smaller groups inhabit the remaining provinces. French-speaking Canadians
maintain their language, culture, and traditions, and the federal government
follows the policy of a bilingual and bicultural nation. During the 1970s and
1980s the proportion of Asians among the Canadian population increased, and
today those who count their ancestry as wholly Asian make up more than 5
percent of the population. More than two-thirds of the Asian immigrants live in
Ontario or British Columbia. The remainder of the
population is composed of people of various ethnic origins, such as German,
Italian, Ukrainian, Netherlands Dutch, Scandinavian,
Polish, Hungarian, Greek, and Native American.
Blacks
have never constituted a major segment of the Canadian population, but their
history has been an interesting one. Although Louis XIV of France in 1689 authorized the importation of
slaves from the West Indies, black immigration into Canada
has been almost entirely from the United States. Some Loyalists
brought slaves north with them during and after the American Revolution
(1775-1783). The British troops that burned Washington
in the War of 1812 brought many slaves back with them to Halifax, Nova Scotia.
However, Nova Scotia abolished slavery in 1787
and was followed six years later by Upper Canada,
thus setting precedents for the whole British Empire.
The presence of free soil in Canada
was a major influence in the operation of the Underground Railroad, which,
during the abolition campaign in the United
States, transported many slaves into Canada, particularly to Chatham
and Sarnia in Ontario. Blacks make up less than 2 percent
of the Canadian population.
Native
Americans make up nearly 4 percent of Canada's inhabitants, including
those who claim at least part Native American ancestry. These people belong
predominantly to the Algonquian linguistic group; other representative
linguistic stocks are the Iroquoian, Salishan, Athabascan, and Inuit
(Eskimoan). Altogether, the indigenous people of Canada are divided into nearly 600
groups, or bands.
Political Divisions
Canada comprises ten
provinces, each with a separate legislature and administration; the Yukon Territory, which is governed by a federally
appointed commissioner, assisted by an elected executive council and
legislature; and the Northwest
Territories, which is governed by a federally
appointed commissioner and an elected assembly. In descending order of
population (1991 census) the provinces are the following: Ontario,
Québec, British Columbia,
Alberta, Manitoba,
Saskatchewan, Nova Scotia,
New Brunswick, Newfoundland,
and Prince Edward Island.
The provinces
(facts and capitals):
area in sqkm / inhabitants / inh. Per sqkm
|
Alberta (Edmonton)
638233 2914500 4,6
|
British Columbia (Victoria) 892677 4009000 4,5
|
Manitoba (Winnipeg)
547704 1138700 2,1
|
New Brunswick (Fredericton) 71569 753000 10,5
|
Newfoundland(St. John's) 371635 543800 1,5
|
Nova Scotia (Halifax)
52841 934200 17,7
|
Ontario (Toronto)
916734 11413700 12,5
|
Prince Edward
Island (Charlottetown) 5660 136500 24,1
|
Quebec (Quebec)
1357812 7334500 5,4
|
Saskatchewan (Regina)
570113 1024300 1,8
|
|
Territories
|
Northwest Territories (Yellowknife) 136389 40100 0,02
|
Nunavut Territory (Iqualiut) 1900000 27200 0,02
|
Yukon Territory (Whitehorse) 531844 31700 0,1
|
|
Canada (Ottawa)
9203211 30301200 3,3
|
Austria 83857,8 8082819 0,01
|
Principal
Cities
Among the leading cities of Canada are Toronto, Ontario, a port and
manufacturing city ; Montréal, Québec, a port and major commercial center ;
Vancouver, British Columbia, a railroad, shipping, and forest-products
manufacturing center ; Ottawa, Ontario, the capital of Canada and a commercial
and industrial city ; Edmonton, Alberta, a farming and petroleum center ;
Calgary, Alberta, a transportation, mining, and farm-trade center ; Winnipeg,
Manitoba, a major wheat market and railroad hub ; the city of Québec, Québec, a
shipping, manufacturing, and tourist center ; Hamilton, Ontario, a shipping and
manufacturing center ; London, Ontario, a railroad and industrial center ;
Saint Catharines, Ontario, an industrial and commercial city Saint
Catharines-Niagara metropolitan area. Kitchener, Ontario, a city of
manufacturing industries ; and Halifax, Nova Scotia, a seaport and
manufacturing city (320,501).
Religion
The
largest religious community in Canada
is Roman Catholic. Nearly half of Canadians who are Roman Catholic live in
Québec. Of the Protestant denominations in Canada the largest is the United
Church of Canada, followed by the Anglican Church of Canada. Other important
Protestant groups are the Baptist, Presbyterian, Lutheran, and Pentecostal.
Nearly 2 percent of the population are Eastern Orthodox, and Muslim and Jewish
adherents each number about 1 percent. Immigration in recent years has brought
a substantial number of Buddhists, Hindus, and Sikhs to the country. Nearly 13
percent of Canadians claim no religion.
Education
and Culture
The
educational system in Canada
is derived from the British and American traditions and the French tradition,
the latter particularly in the province
of Québec. English or
French is the language of instruction, and some schools provide instruction in
both official languages. Each of the ten provinces has responsibility for
establishing and maintaining its own school system. In Québec, the
French-Canadian tradition is followed by the Roman Catholic schools. The
province also maintains Protestant schools, however, which are widely attended.
Although Canada
does not have a central ministry of education, the federal government provides
schools for children of Native Americans on reserves, inmates of federal
penitentiaries, and the children of military personnel.
Economy
Until the
early 20th century, Canada
was primarily an agricultural nation. Since then it has become one of the most
highly industrialized countries in the world. To a large extent the
manufacturing industries are supplied with raw materials produced by the
agricultural, mining, forestry, and fishing sectors of the Canadian economy.
Between
1973 and 1993 Canada's
output of goods and services, or gross domestic product (GDP), increased in
real terms by 76 percent to $551.6 billion. Federal government annual revenues
in the early 1990s were $92.34 billion; expenditures for the same year were
$123.04 billion, leaving a deficit of $30.7 billion.
Agriculture
The
Canadian economy depends heavily on agriculture, which employs about 4 percent
of the labor force. In the early 1990s Canada had some 280,000 farms, which
averaged 242 hectares in size. The
annual value of farm output amounted to $18.6 billion in the early 1990s.
Because of its abundant production and relatively small population, Canada is a
leading exporter of food products. Farms in Canada are about equally divided
between crop raising and livestock production. Wheat is the most important
single crop, and the Prairie provinces of Alberta, Manitoba, and Saskatchewan form one of
the greatest wheat-growing areas of the world, with an average annual production
of more than one-fifth of the world's supply. One-half of Canada's wheat is grown in Saskatchewan. The prairie
provinces also grow a large percentage of the coarse grains and
oilseeds produced in Canada.
After wheat, the major cash receipts from field crops are obtained from sales
of canola, vegetables, barley, maize, potatoes, fruits, tobacco, and soybeans.
Annual output totals in the early 1990s included (in metric tons) wheat, 29.9
million; barley, 10.9 million; maize, 5.6 million; canola, 3.7 million;
potatoes, 2.9 million; and oats, 3.0 million.
Livestock
and livestock products account for about 50 percent of yearly farm cash
receipts. Ranching prevails in the west, and the raising of livestock is a
general enterprise, except in parts of Alberta
and Saskatchewan,
where beef cattle form a specialized industry. Ontario and Québec rank highest in
production of dairy products, with about 71 percent of the national output; in
poultry farming, with 64 percent; and in egg production, with 54 percent.
Québec produces 82 percent of the maple products, and Ontario produces 89 percent of the nation's
tobacco crop.
In early
1990s the livestock population of Canada included about 14.7 million
cattle and calves, of which approximately 1.2 million were milk cows; 10.7
million hogs; and 949,000 sheep and lambs. Fruit farming is done in Ontario, British
Columbia, and Québec, with apples contributing about
40 percent of the total value. Berries, peaches, grapes, and cherries are other
important crops. Tomatoes, onions, carrots, turnips, peas, and beans are major
vegetable crops; Ontario produces about
one-half of the total vegetable crop, followed by Québec and British Columbia.
Mining
The
mining industry in Canada
has a long history of exploration. The most significant period of growth,
however, has been since World War II ended in 1945, with mineral discoveries in
almost every region of the country. Mining is an important source of national
wealth; in the early 1990s annual mineral production was valued at about $29.3
billion. The Canadian mining industry is strongly oriented toward exports, and Canada is one
of the world's leading mineral exporters. The United
States, the European Union, and Japan are the
leading purchasers of Canadian minerals.
The
growth of the mining industry is due in part to petroleum and natural gas
discoveries in western Canada; development of huge iron-ore deposits in
Labrador and Québec; the discovery and development of large deposits of nickel
in Ontario and Manitoba, uranium in Ontario and Saskatchewan, and potash in
Saskatchewan; extraction of sulfur from natural gas in the western provinces; development
of copper, lead, and zinc deposits; and the production of gold in Ontario,
Québec, British Columbia, and Northwest Territories. The leading minerals, in
order of value, are crude petroleum (591.2 million barrels annually in the
early 1990s), natural gas (118.9 billion cu m), natural gas by-products (26.6
million cu m/939 million cu ft), gold (157,600 kg), copper (744,700 metric
tons), zinc (1.2 million metric tons), nickel (189,100 metric tons), coal (64.6
million metric tons), and iron ore (32.8 million metric tons). These minerals
together typically account for more than four-fifths of the value of annual
mineral production. Alberta leads the country
by a wide margin in the yearly value of mineral output; it is usually followed
by Ontario, British
Columbia, Saskatchewan, Québec,
and Manitoba.
Canada
usually leads the world in the annual production of asbestos and zinc and ranks
second in production of nickel, potash, and uranium. Other minerals in which
the country is among the leading producers are cobalt, copper, gold, gypsum,
iron ore, lead, molybdenum, natural gas, platinum-group metals, silver, sulfur,
and titanium concentrates. The mining industry is subject to market
fluctuations that adversely affect dependent local economies.
Tourism
The
natural variety of seasons and scenic wonders of Canada draw large numbers of
tourists. In the spring, blossom festivals flourish across Canada, especially in the Annapolis Valley of
Nova Scotia and the Okanagan Valley in British
Columbia. Noteworthy is the Ottawa Festival of Spring
(Tulip Festival) in May. Alberta's
Calgary Exhibition and Stampede in July is world-famous. The Niagara Grape and
Wine Festival and autumn-color tours in central Ontario and the Laurentian Mountains of
Québec are among the other attractions. In the winter the abundant snowfall has
been exploited; skiing centers are expanding. Also attracting visitors are more
than 730,000 sq km of natural areas
preserved in Canada's
federal, marine, and provincial parks.
Tourism
has become one of the leading industries of Canada. In the early 1990s the
country was visited by some 36.8 million tourists annually, of whom about 91
percent came from the United
States. Expenditures were about $6.8 billion
a year, with U.S.
residents spending some 46 percent of the total.
Currency and Banking
The unit
of currency in Canada
is the Canadian dollar, which consists of 100 cents
(approximately 0,8 US-Dollars). The Bank of Canada has the sole right to issue
paper money for circulation. Chartered commercial banks operated more than 7600
domestic branches in the early 1990s and had combined assets exceeding $515
billion. Under the Bank Act of 1980, no Canadian subsidiary of a foreign bank
may hold assets equal to more than 16 percent of the assets of the entire
banking system. A major revision of the Bank Act in 1992 permitted banks, trust
companies, and insurance companies to diversify into each other's markets. In
the mid-1990s there were 9 domestic and 54 foreign-owned banks operating in Canada. Most
foreign-owned and major domestic banks have their head offices in Toronto; a few are based
in Montréal. Trust and mortgage loan companies, provincial savings banks, and
credit unions also provide banking services. Securities exchanges operate in Toronto, Montréal, Winnipeg,
Calgary, and Vancouver.
Transportation
The
rivers, lakes and train are the important connections for trade.Two major
airlines, Air Canada
and Canadian Airlines International, maintain a broad network of domestic and
international routes. Other smaller carriers are licensed. Of the more than 510
airfields certified by Transport Canada,
the busiest are Lester B. Pearson International Airport,
in Toronto; Vancouver
International Airport;
Dorval and Mirabel international airports, near
Montréal; and Calgary
International Airport.
Government
Canada is mainly governed
according to principles embodied in the Constitution Act of 1982, which gave
the Canadian government total authority over its constitution. Previously, the
British North America Act of 1867 and subsequent laws had reserved some
constitutional authority with the British Parliament. Canada is a
federal union, with a division of powers between the central and provincial
governments. Under the original 1867 act, the central government had
considerable power over the provinces, but, through amendments to the act and
changes brought by practical experience, the provincial governments have
increased the scope of their authority. However, considerable tension continues
to exist between the federal government and the provincial governments over the
proper allocation of power.
The
Canadian Charter of Rights and Freedoms, added by the passage of the 1982
Constitution Act to the country's constitution, guarantees to citizens
"fundamental freedoms," such as those of conscience and the press; "democratic
rights" to vote and seek election; "mobility," "legal," and "equality" rights
to move throughout Canada, to enjoy security of person, and to combat
discrimination; and the equality of the French and English languages. The
charter changed the Canadian political system by enhancing the power of the
courts to make or unmake laws through judicial decisions. It also contains the
so-called "notwithstanding" clause, which allows Parliament or the provincial
legislatures to designate an act operative even though it might clash with a
charter provision. Although the constitution and charter apply uniformly
throughout Canada, the province of Québec has never formally signed the
agreement.
The head
of state of Canada is the
sovereign of Great Britain.
In theory, the head of the national government is the governor-general, who
represents the British monarch; the actual head of government, however, is the
prime minister, who is responsible to Parliament.
Central Government
The
central government of Canada exercises all powers not specifically assigned to
the provinces; it has exclusive jurisdiction over administration of the public
debt, currency and coinage, taxation for general purposes, organization of
national defense, fiscal matters, banking, fisheries, commerce, navigation and
shipping, energy policy, agriculture, postal service, census, statistics,
patents, copyright, naturalization, aliens, indigenous peoples affairs,
marriage, and divorce. Among the powers assigned to the provincial governments
are education, hospitals, provincial property and civil rights, taxation for
local purposes, the regulation of local commerce, and the borrowing of money.
With respect to certain matters, such as immigration, the federal and
provincial governments possess concurrent jurisdiction.
The
nominal head of the government is the governor-general, the representative of
the British crown, who is appointed by the reigning monarch on the
recommendation of the prime minister of Canada. The governor-general
adheres to the advice of the majority in the House of Commons (the lower
chamber of the legislature) in appointing the prime minister, who is the
effective head of government, and follows the prime minister's wishes in appointing
the Cabinet. The Cabinet consists of as many as 40 members, most of whom are
ministers presiding over departments of the federal government. The cabinet has
no formal legal power but submits its decisions to Parliament.
Legislature
The
Canadian Parliament consists of two houses, the Senate and the House of
Commons. Senators are appointed by the governor-general on the advice of the
prime minister to terms that last until the age of 75; there are normally 104
senators (6 from Newfoundland; 10 each from Nova Scotia and New Brunswick; 4
from Prince Edward Island; 24 each from Québec and Ontario; 6 from Manitoba,
Saskatchewan, Alberta, and British Columbia; and 1 each from the Northwest
Territories and Yukon Territory). In 1990 the Conservative federal government
found that proposed legislation was being held up by the Liberal-controlled
Senate. Invoking a measure in Canada's
consitution that had never been used before, Prime Minister Brian Mulroney
added 8 new senators, thereby increasing the total number of senators to 112
and achieving a Conservative majority. The number of senators has since
returned to 104.
Members
of the House of Commons are elected in 295 federal electoral districts whose
boundaries are periodically adjusted to reflect population growth or
redistribution. Each district contains, on average, about 100,000 constituents.
Federal elections are held at the prime minister's discretion, but must be
called within a five-year period; in practice, they are called about every four
years. Laws are first debated in the House of Commons, but must also be
approved by the Senate and signed by the governor-general before coming into
effect. The prime minister is the leader of the majority party in the House of
Commons; if no majority exists, the party with the most seats in Parliament
leads a "minority government."
Judiciary
The legal
system in Canada
is derived from English common law, except in Québec, where the provincial
system of civil law is based on the French Code Napoléon. The federal judiciary
is headed by the Supreme Court of Canada, made up of a chief justice and eight puisne
(associate) judges, three of whom must come from Québec. It sits in Ottawa and is the final
Canadian appellate court for all civil, criminal, and constitutional cases. The
next leading tribunal, the Federal Court of Canada, is divided into a Trial
Division and an Appeal Division. It hears a variety of cases, notably involving
claims against the federal government. Provincial courts are established by the
provincial legislatures, and, although the names of the courts are not uniform,
each province has a similar three-tiered court system. Judges of the Supreme
Court and the Federal Court and almost all judges of the higher provincial
courts are appointed by the federal government.
Provincial and Territorial Government
The
government of each of Canada's
ten provinces is in theory headed by a lieutenant governor, who represents the
sovereign of Great Britain
and is appointed by the governor-general on the advice of the federal prime
minister. Like the governor-general, however, the lieutenant governor has
little actual power, and in practice the chief executive of each province is
the premier, who is responsible to a unicameral provincial legislature. Yukon Territory and the Northwest
Territories are both governed by federally appointed
commissioners, assisted in the Northwest Territories
by a legislative assembly and in Yukon
Territory by an elected council and legislature. A
third territory, Nunavut,
will be formally created in 1999 and will have a similar governmental makeup to
the other two territories.
Defense
The
Canadian armed forces are integrated and are headed by the chief of the defense
staff, who reports to the civilian minister of national defense. Under the
defense staff are five major commands, organized according to function:
maritime command, land force command, air command, communication command, and
headquarters northern area command. Canada
is a member of the North Atlantic Treaty Organization (NATO), and allocates air
and land forces to support NATO in Europe. Canada participates jointly with the United States
in the North American Aerospace Defense Command (NORAD). It also contributes
troops to United Nations peacekeeping operations. In the early 1990s the
Canadian armed forces included about 78,100 people.
History:
The first man who discovered a part of today's Canada was the
Viking Leif Eriksson. Around the year 1000, he landed at three places of the
new discovered land. First at "Helluland" perhaps the area of today's Baffinland, at "Markland" perhaps Labrador
and "Vinland", perhaps the area between Newfoundland
and Cap Cod. This new discovered land was not colonized by the Vikings, because
of the large distance to their home-land and some angry Hurons (Indians), who
didn't like to be disturbed.
After the time of the Vikings, Canada
remained unexplored until 1534, when the French sailor Jacques Cartier declared
Newfoundland
as a colony for the French crown, although there was already a little British
settlement in this area. In the same year he founded (the first) Montreal in the area of
the Indian settlement "Hochelaga" at the Saint-Lawrence-river. Jacques Cartier
is meant to be the founder of the French-colonial Empire in North
America.
In 1608 Samuel de Champlain founded Quebec in the area of the Indian settlement
"Stadacona". 25 years later Champlain became the first governor of New France,
which included Acadia and Canada,
the large lakes and the territory near the Mississippi
down to Louisiane (later Louisiana
named after king Louis XIV). 1701 General Antoine de la Mothe Cadillac founded
the Fort "Pontchartrain du Detroit" for the safety of the French colonies.
In1753 the British-French War starts out in Europe,
and 1755 the war takes place in the colonies,too. After the seven year war,
British troops arrived at Montreal, which leads
to the delivery of Canada to
Great Britain.
With the first rebellions of the colonies against the British crown, the Royals
reacted, concerning Canada,
with the "Quebec Act", which assured Canada special rights, like the
right of free religion, the remaining French civil right and a say in the local
government. During the war of Independence, Canada was the important start-point for British
troops; after the war 40000 loyal "Englishmen" immigrated to Canada, many of
them were German-speaking people.
In 1840 the Canada Union Act took place, which united North- and South
Canada, six years later the 49th latitude line became the official border
between Canada and the USA. With the
"British North Act" in 1867 the dominion (also called Confederation) of Canada was proclaimed; the provinces Quebec, Ontario, Nova Scotia and New
Brunswick were united. In 1870 Manitoba became
member, in 1871 British Columbia, 1873 Prince Edward Island, 1905 Alberta and
Saskatchewan and finally in 1949 Newfoundland.
The Laurier Years
The election of 1896 was won by the Liberals,
led by the French-Canadian lawyer Wilfrid Laurier. A period of prosperity
ensued as he carried forward Macdonald's national policy. Protective tariffs
supported rapid industrial expansion. A host of emigrants was attracted from Britain and central and eastern Europe and from
the United States,
where free land was running out. The prairies were finally settled, with Alberta and Saskatchewan
becoming provinces in 1905. Two new transcontinental railways were built with
public funds to serve the prairie granary. Private entrepreneurs with
provincial aid extended railways to northern Ontario and Québec, where gold, silver, and
base metals were discovered.
Laurier
also won notice as a stalwart champion of Canadian rights against the United States in a dispute (1903) over the
Alaskan boundary, which cut northwestern Canada off from the Pacific. He
preserved Canadian autonomy by skillfully managing to limit its involvement in
British imperialist expansion during the Boer War (1899-1902).
The
business community benefited most from the Laurier years. Indeed, by 1911
railway development, industrial growth, and corporate mergers had produced a
powerful big-business sector. Some Canadians, however, worried about the social
costs of rapid growth, began to attack the supposed evils of plutocratic rule.
The spread of slums and disease in overcrowded cities led to demands for
government action to improve public health, welfare, and morality. Reformers
agitated for the modernization of government and its services, along the lines
of a similar reform movement in the United States. A new women's
movement campaigned for prohibition, equal rights, and woman suffrage. Other
Canadians feared that their way of life was being threatened by alien
influences. One such influence was the nearly 600,000 "New Canadian" emigrants
from central and southern Europe, many of them
Slavic. The other was the steady Americanization of Canada through heavy
industrial investment, the domination of the labor movement by the American
Federation of Labor, and the enormous popularity of American culture in the
cities of English Canada.
In
addition to these new discontents, the old ethnic frictions were exacerbated.
Objecting to the establishment of a single English school system in Manitoba (1890) and the new provinces, and to even
limited Canadian military support of Britain, French-Canadians began
again to agitate for autonomy. Consequently, when Laurier negotiated a new
reciprocal trade agreement with the United States that seemed to
increase American influence, both French-Canadian and business interests
defeated him in the election of 1911.
World War I and Its Effects
Robert
Laird Borden, the new Conservative prime minister, was responsive to reform
demands but soon found his government's energies absorbed by World War I
(1914-1918). The Canadian war effort was impressive. The population of 8
million spent $1.67 billion. It sent 425,000 Canadians overseas, at first under
British command but by 1917 under Canadian, and lost about 60,000 troops in
such actions as Vimy Ridge and Passchendaele. As a result, in foreign affairs Canada's
autonomy was expressed by its independent participation in the Paris Peace
Conference. On the domestic scene, however, the war effort had undermined
national unity. The French-Canadians had bitterly opposed Borden's decision to
implement war conscription, and to counteract this Borden had attempted to
forge a merger of the Conservative and Liberal parties. This joint government
eventually split into two factions, the mostly English-speaking Unionists and
the French-speaking Liberals. The Unionists dominated the election in 1917,
winning every province but Québec.
The Union
government granted woman suffrage in 1918 and briefly passed prohibition. It
could not, however, handle postwar problems. The government, struggling under
war debt, was further burdened by the acquisition of bankrupt railways,
including the two subsidized by Laurier. All these were amalgamated as the
Canadian National Railways in 1923. Wartime inflation followed by peacetime
depression heightened class tensions. Winnipeg
was crippled by a general strike in 1919, raising fears of a Communist
takeover. Farmers in Ontario
and the west, caught between the high cost of manufactured goods and declining
wheat prices, revolted against the established parties. They formed the new
National Progressive party, which swept the Prairie provinces in the election of 1921.
The Progressives gave limited support to the Liberals, enabling them to form a
minority government.
The Prosperous 1920s
In the
1920s, by contrast, prosperity returned, principally in the cities, attracting
ambitious rural youth escaping farm drudgery or seeking new economic
opportunity. The latter was based on a third wave of industrial development,
especially of mineral and forest products from the north. Reflecting this
economic upturn, the labor movement declined; farmers turned from political
action to economic cooperatives; and businesspeople, as apparent creators of
the good life, regained their prestige. People spent more on personal items
such as cars and radios, setting off a retail boom. The moral rigor of the
previous generation relaxed, as manifested by the popularity of hockey, horse
racing, and other organized sports; the rising sales of liquor and tobacco; and
the enthusiasm for American motion pictures and radio programs.
The new
Liberal prime minister, the Ontario
labor expert William Lyon Mackenzie King, benefited from the new mood of
confidence and ease as he strove to unify the nation. He insisted that Canada determine its own domestic and foreign
policies as an equal of Britain,
a right recognized at the Imperial Conference of 1926 and confirmed in 1931 by
the British Statute of Westminster (see Westminster, Statute of). His defense of
Canadian autonomy was popular with both French-Canadians and western Canadians.
He partly satisfied farmers by mildly reducing the tariff, won business support
by cautious budgeting, and even earned praise from reformers for passage of an
Old Age Pension Act (1927). Conservatives were a minority, and Progressives
were in decline.
The Pursuit of Well-Being (1929-1957)
After the
prosperity of the 1920s, Canada
underwent depression and war and emerged into another era of material progress.
The Depression
In four
years the world-wide Great Depression shook the foundations of the nation. The
gross national product fell from a high of $6.1 billion in 1929 to a low of
$3.5 billion in 1933. The value of industrial production was halved. In 1933
about 20 percent of the labor force was unemployed. The drought-stricken
western provinces were particularly hard hit as grain prices toppled from $1.60
a bushel in 1928 to $0.28 in 1932. Total exports dropped by about $600 million,
a disaster for a country so dependent on foreign markets. The consequence was a
shift in the government's priority from nation building to the pursuit of
social well-being-the security, health, and comfort of the mass of people.
Canadians
quickly turned to politics for a solution. Rejecting Mackenzie King, they chose
Conservative lawyer Richard Bennett, who promised swift action. He increased
payments to the provinces to support the unemployed, who by 1933 had reached
one-third of the population. He dramatically raised tariffs to protect industry
and force concessions from foreign countries, and at the Imperial Economic
Conference at Ottawa in 1932 he arranged
preferential trade agreements with Britain and other Commonwealth
countries. He enlarged the sphere of government by creating the Canadian Radio
Broadcasting Commission (1932), the centralized Bank of Canada (1934), and a
Wheat Board (1935). The economy did not recover, however, and the government
lost prestige. In 1935, Bennett announced a more radical reform package similar
to the American New Deal: unemployment insurance, a reduced workweek, make-work
programs such as "environmental restoration," a minimum wage, industrial codes,
and permanent economic planning.
The new
policy did not save the Conservatives, however. Many voters turned to three
small new parties, which promised solutions to the depression-the
Reconstruction party, a Conservative offshoot; the Co-operative Commonwealth
Federation (CCF), a socialist group; and the Social Credit party, a right-wing
radical movement based in Alberta.
Almost by default, Mackenzie King and the Liberals won the election of 1935.
Mackenzie
King dropped Bennett's New Deal package, which was eventually declared
unconstitutional in 1937 by the British Privy Council, which was then the final
court of appeal. He did, however, make a new Reciprocity Treaty (1936) with the
United States,
convert the radio commission into the Canadian Broadcasting Corporation, and
fully nationalize the Bank of Canada. Fending off provincial demands for money
to support relief programs, he instituted the Rowell-Sirois Royal Commission
(1937), which recommended federal responsibility for many provincial social
services and a more even distribution of revenue.
The War Years
The start
of World War II (1939-1945) helped save Mackenzie King's government and the
Canadian economy. Although Canada
had followed an isolationist policy in the 1930s, when Britain went to war in 1939, Canada too
joined the anti-Axis coalition. At first the government concentrated mainly on
economic contributions of food, raw materials, and goods, thereby avoiding the
conscription so odious to French-Canadians. The German invasion of France in 1940,
however, forced Canadians to accept the realities of total war.
Taking
command of the economy, the Liberal government set up boards to regulate
resources and industry, wages and prices, and a rationing system. In 1944 it
approved labor's right to collective bargaining. Most important, it agreed to a
large army, which required conscription. Again, the war effort was impressive:
Expenditure amounted to $21 billion by 1950. Out of a population of 12 million,
about 1.5 million men and women served, 41,700 of whom died in action in Europe.
During
the war the government planned a peacetime society that would ensure the
well-being of the populace according to the recommendations of the
Rowell-Sirois Commission. One key element was a minimum social-welfare package
to establish a basic living standard. It consisted of unemployment insurance
(1940), family allowance payments (1944), generous veterans' benefits, improved
old-age pensions, subsidized housing, and various health plans. The other key
element was an economic program to foster full employment with a minimum of
inflation. After the war the government dismantled industrial controls,
encouraged foreign trade, and stemmed the tide of postwar inflation.
After 22
years as prime minister, Mackenzie King retired in 1948, to be succeeded by
Louis St. Laurent, a Québec lawyer. St. Laurent
led the Liberals to an overwhelming victory in 1949, indicating national
approval of the Liberal design for Canada. Another sign of approval
was the decision of Newfoundland, including Labrador, to become a Canadian province. This union, in
1949, completed the Confederation.
Postwar Prosperity
The
success of the Liberal design and the continued rule of the Liberal party were
ensured by an enormous postwar economic boom. New oil supplies in Alberta and new iron-ore reserves in Ungava (in northern
Québec) and Labrador were discovered during
the late 1940s. In the next decade uranium resources were developed in northern
Ontario, and
hydroelectric power stations were built across the country. Manufacturing
expanded and diversified, increasing in gross value from $8 billion in 1946 to
$22 billion in 1953. The government encouraged modernization of the
transportation system. The Trans-Canada
Highway, a federal-provincial project, was begun
in 1949. Trans-Canada Airways, a crown corporation founded in 1938, expanded.
In 1956 the privately owned Trans-Canada Pipeline was approved to carry oil and
gas from Alberta
to Canadian and American markets. The boom was further fueled by the arrival of
some 1.5 million immigrants, chiefly British and other Europeans, who provided
cheap labor and a body of new consumers.
The gross
national product rose from $12 billion in 1946 to more than $30 billion in
1957. The trade unions made economic gains for their members. In 1956 the two
largest, the Canadian Congress of Labour and the Trades and Labour Congress,
merged into the Canadian Labour Congress, which became a potent force in
political and economic life. Much of this economic expansion, however, depended
on heavy American investment in Canadian natural resources and American control
of much Canadian manufacturing.
New Foreign Ties
Canada's postwar affluence
enhanced its status in a world of devastated European countries and
underdeveloped African and Asian lands. The government was especially active in
foreign aid. In 1950 it joined the Colombo Plan for assisting underdeveloped
members of the Commonwealth.
As the
old ties with Britain slowly
dissolved, Canada came
gradually into the political orbit of the United States. In 1940 Mackenzie
King and U.S. President Franklin D. Roosevelt had signed the Ogdensburg
Agreement providing for permanent joint planning of North American defense.
After the war, Canada's
foreign policy was closely linked to the United States strategy of
containing Communist expansion. In 1949 Canada
approved the North Atlantic Treaty Organization (NATO), guaranteeing the
defense of Europe under U.S.
leadership. It sent troops to the largely American-staffed UN army during the
Korean War (1950-1953). In 1956, at the time of the Anglo-French occupation of
the Suez Canal, it proposed, with American approval, a UN Emergency Force to
preserve a new truce in the Middle East. This
action further cemented Canada's
independence from Britain,
as it did not back Britain's
action in the Middle East. Canada also negotiated the North American Air
(now Aerospace) Defense Command (NORAD, 1958), confirming that Canadian defense
was a U.S.
responsibility. Thus, relations between the United
States and Canada
became, to the Canadian mind, as significant and intertwined as had been the
ties with Britain.
A Time of Troubles (1957- )
Beginning in the late 1950s, a series of
intractable problems emerged to threaten the very survival of Canada.
Affluence and Liberalism had undermined the nation's traditional supports: the
connection with Britain,
a decentralized federalism, the accommodation of French- and English-Canadian
ambitions, and social conservatism.
The 1957
election of the Conservative leader John Diefenbaker ended 22 years of Liberal
rule in Ottawa.
The next year his government won a sweeping parliamentary majority.
The Turmoil of the 1960s
A surge
of social criticism, particularly among the young, challenged existing
authority during the 1960s. The old CCF was reborn in 1961 as the prolabor New
Democratic party (NDP), intent on creating a social democracy in Canada. A wave
of anti-Americanism led many artists and intellectuals in English Canada to
attack all signs of U.S.
economic and cultural power. The most serious problem resulted from the revival
of French-Canadian nationalism. After 1960 a new Liberal government in Québec
sponsored a "Quiet Revolution" to modernize institutions, demand autonomy, and
enhance the French-Canadian presence in economic life.
In Ottawa, Diefenbaker was
unable to govern the country effectively, and his party was beaten in the
election of 1963 by the revitalized Liberals led by Lester Pearson, a former
diplomat. Pearson's minority government was responsive to the public mood. It
unified the armed forces under a single command, revamped the broadcasting
system, and laid the foundation for medical care for all citizens (which went
into effect in 1969). The government also implemented "cooperative federalism"
to allow Québec and other provinces a greater say in national affairs. Even so,
some nationalists turned to new separatist organizations, notably René
Lévesque's Parti Québécois (PQ), founded in 1968.
The Trudeau Era
In the
1968 election the policies and personality of Pierre Elliott Trudeau, a French-Canadian,
brought the Liberals a majority. Trudeau, who dominated national politics for
some 15 years, elaborated a new vision of Canada. His government strengthened
cultural policies to promote the media and subsidized Canadian participation in
international sports events to provide a new focus for national pride. Trudeau
liberalized immigration practices, over time attracting more Asian and Central
and South American newcomers to Canada,
and implemented the idea of multiculturalism, encouraging the persistence of
distinct ethnic identities among the population. The government greatly
expanded payments to the underprivileged, the young, and the aged in an effort
to realize a social democracy in the European style.
Much of
Trudeau's personal attention was focused on preserving national unity. His
government passed the Official Languages Act (1969), which affirmed the
equality of French and English in all governmental activities. In October 1970
he used martial law to impose order on Québec after the separatist Front de
Liberation du Québec had seized a provincial cabinet minister and a British
consul.
In
foreign policy, an effort was made to forge links with Europe and Asia that
might counterbalance the ties to the United States. The government also
flirted with economic nationalism, establishing the Foreign Investment Review
Agency (1974).
A serious
blow was struck against the federal government with the victory of the PQ in
Québec in 1976, and the implementation of a provincial law giving the French
language preference there. The Liberals lost the May 1979 election to the
Progressive Conservatives, led by Joseph Clark. He, however, was unable to form
a stable majority in Parliament, and Trudeau returned to power in February
1980. In May the federal government triumphed in a provincial referendum on
Québec sovereignty, with about 60 percent of Québec voters rejecting
independence. Trudeau was also finally able to get the English-speaking
provinces to agree to a new constitution, which was proclaimed in 1982; Québec,
however, did not approve the constitution.
His
efforts to remake Canada,
however, had run into increasing difficulties. Provincial governments,
especially in the west, were often angered by the centralist ambitions of Ottawa. Business bitterly
criticized the government's economic policies. Many English-Canadians resented
bilingualism and the signs of French power in Ottawa. Above all, government spending
produced an unrelieved series of budget deficits, which reached $38.5 billion
in 1984-1985 and resulted in a $233 billion national debt by 1986.
The Conservative Reaction
When
Trudeau retired in June 1984, John Napier Turner became prime minister. In the
September parliamentary elections the Conservatives, led by Brian Mulroney,
easily won office and soon embarked on policies designed to undo Trudeau's
vision of Canada.
Inspired
by U.S. President Ronald Reagan and British Prime Minister Margaret Thatcher,
the government tried to reduce the deficits, cut back on social and cultural
policies, rebuild ties with business, and even privatize government
enterprises. The most dramatic shift occurred in 1988 when Mulroney and Reagan
signed a free-trade agreement. In the 1988 election Mulroney, strongly
supported by business and bitterly opposed by English-Canadian nationalists,
managed to eke out a win as candidates opposed to free trade split the vote.
The benefits of free trade were undone by a combination of an overvalued
Canadian dollar, corporate restructuring, a new goods and services tax (1991),
and a severe recession that led to a decline in domestic manufacturing, a
massive loss of jobs, and cross-border shopping by Canadians. In 1993 the
Canadian government signed a further agreement with the United States and Mexico to create a free-trade zone.
The North American Free Trade Agreement (NAFTA) came into effect January 1,
1994.
An even
more serious concern was the collapse of national unity. In a 1987 meeting at Meech Lake,
Québec, national and provincial leaders had approved a series of constitutional
amendments that would satisfy Québec's demand for recognition as a "distinct society"
within the Canadian confederation. Although Mulroney worked hard to win over
the provinces, English-Canadians objected to the accord and it was not ratified
by Manitoba and Newfoundland in 1990. This failure sparked a
major separatist revival in Québec, and led to another round of meetings in Charlottetown, Prince
Edward Island, in 1991 and 1992. These negotiations
culminated in the drafting of the Charlottetown Accord, a blueprint for
extensive changes to the constitution, including self-government for indigenous
peoples, a restructuring of parliament to achieve better representation, and
recognition of Québec as a distinct society. Although supported by most leaders
in politics, the press, and business, the agreement was defeated in a national
referendum in October 1992, in part because of disenchantment with politicians
and Mulroney himself.
A
government agreement to create a vast self-governing homeland for the Inuit
people in the Northwest Territories
was approved by Canadian voters at large in May 1992 and by the Inuit in
November of that year. The homeland, called Nunavut (Inuktitut for "our land"), is to
have territorial status beginning in 1999. In February 1993, with Canada mired in
recession and discord, Mulroney announced his resignation as prime minister and
Conservative party leader. Kim Campbell replaced him as head of the party in
June, becoming Canada's
first woman prime minister. Just four months later, however, Campbell and her
party, the Progressive Conservatives, were routed from office in the October
election. The Liberals won 177 seats in Parliament, while the Conservatives
dropped from 154 seats to 2 in the worst defeat for a governing political party
in Canada's
history. The head of the Liberal party, Jean Chrétien, was sworn in as prime
minister on November 4, 1993.
In 1994
provincial elections in Québec, Jacques Parizeau, the outspoken separatist
leader of the Parti Québécois (PQ), was pitted against Daniel Johnson, the new
Liberal leader and a significant federalist voice. During the campaign,
Parizeau promised another referendum on sovereignty. For this stance, Parizeau
received the support of Lucien Bouchard, leader of the Bloc Québécois in Ottawa. The popular vote
was almost tied, but the PQ emerged with a majority of the seats. After the
election, the PQ initiated a series of regional commissions throughout the
province in an effort to rally popular sentiment around the cause of
independence. However, although the public had voted for the PQ in the
election, the majority appeared to favor remaining in Canada. The PQ,
recognizing that a referendum would probably fail, announced in March 1995 it
would postpone the vote.
Quebec and its "Independence"
In 1997 nine of ten provincial leaders (except Quebec) signed a contract
for unity of the country(Declaration of Calgary); in this contract the equality
of all provinces was the important point and the acception of Quebec's French
speaking majority. In 1998 the federal government sent an appeal to the supreme
court, if it would be legal ,when Quebec
declares his Independence
without a federal election. On the 20.8.1998 the supreme court said no, so Quebec remained as a province of Canada.