Abstract

Canada is the eighth largest economy in the world (measured in US dollars at market exchange rates) after the US, Japan, Germany, the UK, France, China and Italy. It is highly integrated with the US economy. Canada’s mix of tough-minded economic management and social liberalism has won the admiration of many observers. Under the tenure of the Liberals who have been in power since 1993, Canada has been transformed from a debt and deficit-ridden economy into a competitive one. Canada has recorded seven consecutive years of budget surpluses. In the general elections held on 28 June 2004, the Liberals lost their parliamentary majority, yet won enough seats to form a relatively stable minority government. Prime Minister Paul Martin will need to work effectively with the opposition parties, as no single alliance has the numbers needed to control parliament. Martin has announced a major cabinet reshuffle, to heel rifts within his own party as well as to reach out to the opposition parties. Will the new minority government led by Martin be able to take the country forward? This is the question uppermost in the minds of observers as Martin gets down to his task.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Canada, Constitutional monarchy, Paul Martin, Liberal Party, Bank of Canada, Canadian economy, Canadian pharma industry, Energy, Foreign trade, Canadian industry, Immigration to Canada, WTO, World Trade Organisation, Social liberalisation