The politics of local economic development in Canada's city-regions: New dependencies, new deals, and a new politics of scale

Abstract

This paper examines the current round of ‘scale politics’ between Canada's largest global cities and the existing national policy architecture and intergovernmental context. Economic actors in Canada's largest city-regions feel hamstrung by the existing institutional arrangements which remain ill-suited to the changing urban realities and global spatial flows. While the long-standing national regime is now under challenge, the extent to which it can be changed is also under question as the federal government seems reluctant to implement any explicit urban-based policies that could be seen further to accentuate regional (especially urban–rural) difference in Canada. The main thrust of this paper, then, is to provide an explanation for the limits of institutional convergence in the politics of local economic development in Canada. This is not to say that there is not evidence of convergence in terms of economic strategies and institutional responses, only that Canada's particular round of ‘scale politics’ must be situated in the history of Canada's particular national economic regime, including the origins of local economic development, state forms and history of local dependencies.

I would like to acknowledge the financial support of SSHRC. I would also like to thank Kevin Cox for his helpful comments throughout the process of writing this paper as well as acknowledging the comments of anonymous referees. Finally thanks to Ruza Princip and the Colbert family (especially Zeke) for the time and space to write this article. All errors are my own.

Notes

1. The concept of local dependency (Cox and Mair, 1988) is particularly useful here as it reminds of the importance of other interests, including other business interests, with a stake in the local economy. These interests cannot solely be attributed to the simple ownership of property.

2. The Quiet Revolution is the name given to a period of Quebec social history extending from 1960 to 1966 in which there was a major rejection of past values, in particular with respect to traditional components of French Canadian thought (agriculturalism, anti-statism and messianism) (see Bélanger, 1999). The past was replaced by increasingly liberal attitudes and a rejection of long-standing demographic tendencies, linked to a traditional rural way of life (high marriage, birth and fertility rates). During this time, mass numbers of francophones moved to urban Montreal, resulting in the formation of a new middle class. The aim was to reform Quebec politics to better meet the needs of modern francophone values. Part of this process also involved wrestling control out of the hands of the English Montreal élite (for more on this fascinating history, see Sancton, 1985; Germain and Rose, 2000; Paul, 2004; Hallenbeck, 2004).

3. Their vocal opposition has recently culminated in a referendum vote to demerge 15 suburban municipalities on 19 June 2004. Under Bill 9, these municipalities are currently negotiating this process. However, these satellite cities will still have services provided by a central city. Most municipal services will continue to be delivered by the central city, including policing, public transit and municipal courts. Demerged cities will take over urban planning, garbage collection, snow removal, parks and libraries.

4. See for example, the new discussions in Ontario on the New City of Toronto Act (Ideas that Matter, 2005).

5. For example, Provincial constitutional responsibility for municipal governments can still be respected while at the same time fully recognising that urban policy issues transcend existing jurisdictional boundaries.