Ouvrir / Fermer Cacher / Voir les abstracts Table des matières

• Sélectionner
• • PDF
  • LIRE
  Assessment and Recommendations
  The Canadian economy has continued to deliver excellent results in nearly all respects. Output and employment growth have been robust, while the unemployment rate has fallen to its lowest level since 1974. Inflation remains comfortably under control, and the general government and current account balances are in surplus. Altogether, Canadians enjoy one of the highest living standards in the OECD, a result that reflects the pay-off from good macroeconomic management and the structural reforms put in place. But despite all these positive dimensions, hourly productivity growth in the business sector has been weak in recent years, although it showed a sharp pick-up in 2005.
• • PDF
  • LIRE
  Managing the Challenges ahead
  The Canadian economy has performed well in recent years, and its per capita GDP gap with the United States has been narrowing, once adjustment is made for terms-of-trade gains. However, a number of challenges lie ahead. Rapid population ageing is expected to affect the size of the workforce and weigh on public finances through a surge of elderly and health care spending. Improving productivity performance will be crucial to achieving durable prosperity gains, given the nation’s already high employment rates. In addition, it will be important to ensure that the federal and provincial fiscal arrangements, as well as social policies, are on a sustainable path.
• • PDF
  • LIRE
  Improving the Business Environment
  This chapter considers policies affecting the business environment in Canada and examines how the federal, provincial and territorial governments could move towards establishing a more level playing field where firms can compete against one another and in the global environment by making the most of market opportunities. A number of issues need to be tackled. High marginal effective tax rates on capital reduce new investment and also lead to a misallocation of resources. Product market competition would be invigorated by liberalising electricity markets; lifting foreign direct investment restrictions in telecommunications, broadcasting and transport; dismantling inter-provincial barriers in services; and scaling back occupational licensing. Agricultural supply management systems should be replaced by open markets and industrial subsidies should be minimised. The cross-subsidy component of unemployment insurance needs to be addressed. Regulation of banking and securities ought to focus on building deeper, integrated markets by allowing consolidation to take place, by ensuring effective competition from foreign bank entry and by achieving a single securities market.
• • PDF
  • LIRE
  Innovation and Economic Performance
  Innovation plays a key role in economic progress and lifting living standards. The most critical factor in encouraging innovation is getting the framework conditions right so that businesses can flourish. This chapter concentrates on the more specific aspects of innovation in Canada to identify where policies could be improved. It first reviews Canada’s performance on innovation, which is relatively good on product innovation but weaker on processes. The country’s innovation strategy focuses on knowledge, skills, the innovation environment and community-based innovation. Public R&D needs to be governed by an integrated strategy, while generous tax credits for business R&D should be re-examined. More attention is being paid to commercialisation of R&D. A skilled and talented workforce helps to diffuse innovation through the economy, but while Canada has enough scientists to meet current demand, it lacks people with management, marketing and other business skills. Diffusion would also be aided by lifting general literacy and life skill levels. Well-designed co-financing arrangements would encourage participation in adult education and training. Lastly, the venture capital market would perform better if the tax advantage provided to Labour-Sponsored Venture Capital corporations were removed.
• • PDF
  • LIRE
  Adapting Fiscal Policy and Financial Arrangements in the Federation
  This chapter examines the sustainability of financial arrangements within the Canadian federation. Fiscal performance is currently amongst the best in the OECD countries, but some refinements to the fiscal framework both at the federal and provincial levels may be helpful to prepare the economy to cope better with the long-term challenges of rising spending on health and long-term care. In addition, long-term projections at the general government level will help to verify whether current policies are consistent with Canada’s future needs. The federation has thus far achieved its goal of ensuring provinces have sufficient revenues to deliver similar public services at comparable levels of taxation. However, existing federal-provincial arrangements may not be sustainable over the medium run. Streamlining the system of transfers, as well as strengthening the accountability of the various levels of governments, would be beneficial. Moreover, the present equalisation system needs to be adapted to structural changes underway and the growing importance of the energy sector.
• • PDF
  • LIRE
  Social Policies
  This chapter reviews recent changes that have been introduced to improve the welfare mix of social policies in Canada and suggests further adjustments to raise their efficiency. Family policies need to be redesigned to lower the disincentives to work they currently embody, particularly for low-income earners. Social programmes need to shift their focus from short-term intervention to high quality skill-upgrading. Social and economic inclusion of the Aboriginal population and recent immigrants could be accelerated by tailored measures, while programmes for disadvantaged children and at-risk families could be further developed. Access to early education and childcare services could be facilitated for young children and especially, low-income families. As the population ages, making it easier for older workers to remain in the labour force will also be beneficial.
• Ajouter à ma sélection