Vol. 22 No. 1 March 1996

Articles:

Public Provision of Pensions: The Doug Purvis Memorial Lecture
Peter Diamond

Public provision of pensions to the general population comes in a variety of forms. Systems designed around a benefit formula and systems designed around a contribution rate differ in their economic implications and differ in their political settings. Canada has a defined benefit system with fallback automatic adjustment of tax rates.

This paper contrasts the Canadian system with the Chilean (privatized) defined contribution system which has received a great deal of attention worldwide. The paper discusses three approaches to cutting benefits if the currently anticipated tax increase is larger than is desired.

Class, Citizenship, and Global Migration: The Case of the Canadian Business Immigration Program, 1978-1992
Trevor Harrison

This paper deals with the circumstances leading to the enactment by several Western governments of business immigration programs. The case of Canada's Business Immigration Program is specifically profiled. It is suggested that such programs are a response implemented by the governments of core states to resolve their country's fiscal problems and, ultimately, their own declining legitimacy. At the same time, business immigration programs also are emblematic of the rise of an international capitalist class. The paper concludes that such programs are unlikely to resolve the fiscal problems for which they are intended. Instead, they may cause several unintended problems, including damaging the notion of inclusiveness imbedded in the moder concept of citizenship, thus further lessening the legitimacy of the state.

Ending Universality: The Case of Child Benefits
Frances Woolley, Arndt Vermaeten and Judith Madill

The paper evaluates the 1993 child tax benefit reforms using the Social Policy Simulation Model and Database (SPSD/M) developed by Statistics Canada. The paper argues that few of the benefits of the reform went to the poorest families. Instead, because of the interaction of the tax and benefit system, the greatest net beneficiaries were lower-middle income families in the $40,000 to $50,000 income range. The paper also evaluates the effectiveness of the earned income supplement in increasing incentives to participate in the labour market. It argues that, because of tax back provisions, the earned income supplement results, on average, in an increase in marginal tax rates for Canadian families. Moreover, even when the earned income supplement decreases marginal tax rates, it will have only the most minimal effects on labour force participation.

The Effect of Different Police Enforcement Policies on the Control of Prostitution
E. Nick Larsen

This article conducts a comparative analysis of prostitution control in four Canadian cities using police enforcement policies as the independent variable. Most recent Canadian prostitution research has centred on assessing the adequacy of the existing law, and the majority of analysts have concluded that most prostitution offences ought to be decriminalized. However, the analysis in this article assumes that the law is unlikely to be changed in the near future, and instead argues that Canadian policy already possess sufficient legal discretion to decide when and where they will enforce the law. The article conducts a qualitative analysis of police enforcement policies (in Vancouver, Edmonton, Winnipeg and Toronto) ranging from strict enforcement of the law against prostitutes, customers and both prostitutes and customers through to various forms of selective toleration and negotiation among the various affected groups. Based on this analysis, the writer concludes that the most effective way of reducing both the nuisance and the political conflict associated with prostitution involves selective toleration, combined with negotiation between prostitutes and other affected groups. The article concludes with a feminist oriented discussion of the reasons why attempts to suppress prostitution will not work and why the prostitutes themselves must be part of any discussions regarding the control of prostitution.

The Ends of Three Small Inflations: Australia, New Zealand and
Canada

Guy Debelle

The increase in the independence of the Reserve Bank of New Zealand in 1989 allows a test of the theoretical implications of the central bank independence literature. Furthermore, the similar inflationary experiences of Australia and Canada provide a rare set of controls. This paper shows that in the short term, the cost of disinflation have not been less in New Zealand than in Australia and that in Canada, where increased credibility was only supported by rhetoric and not legislation, the costs were higher. However, other concurrent reforms in New Zealand may have clouded the picture and the true test may be the path of inflation in the three countries as the economies continue to recover.

 

 


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