Defence in an Age of Austerity

Projecting Canadian 'soft power' means developing 'hard power' first.

To slay the deficit, and at the same time create jobs and sustain growth, is now the leitmotif of western governments living in an age of austerity. It is a tall order, especially given globalization and the competition from India, China, and Brazil, and, in most western nations, the challenges of an aging population.

Approaches vary. The British are applying a latter-day version of Thatcheromics. In France, President Nicolas Sarkozy has rolled back benefits and the retirement age. The Greeks, Irish, and Portuguese are enduring IMF-imposed restraint – and they are likely to have more company in their misery. For now, grumbling German taxpayers keep afloat the idea of a European Union. A divided America is debating all options, but eventually its citizens will have to settle for a combination of fewer services and more taxes.

In this slough of western despair, the Canadian situation is comparatively better, but the Harper government’s deficit commitments mean hard choices.

The only federal program with some immunity will be the one related to First Nations, for whom most Canadians, including the prime minister, acknowledge an abiding obligation. The burden of spending cuts will be shared with the provinces and municipalities, but the effective counterweight lobby on local MPs of teachers, nurses, and the public will mitigate some of the pressure on the biggest spending programs.

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Source: The Mark