Mr. Speaker, I have studied economic development for the last 30 years of my professional life. I would like to put some historic perspective into this discussion.
In the post-war years in the 1950s and 1960s there were two economic development models floating around in the academic world and in the world of reality. On the one side we had the Soviet Union. It promised to solve all problems of economic development through deliberate central government action of planning and strict control over the lives of its members.
On the other extreme we had the market liberal model of the 19th century which believed that economic development was essentially the responsibility of individuals and that the role of the government was limited to setting down rules that protected and set up property rights, law and order, protection of individuals from both foreign and domestic interference. It essentially believed that minimal government was best to set free the energies and entrepreneurship of the individuals.
There was a lot of discussion during this period as to which was the best model, which would best succeed in raising the welfare of people in this world. It was largely a theoretical model because we never, ever have had any experience with the kind of planning model which was used in the Soviet Union.
We now know differently. We have now learned that the alleged success of the Soviet Union was all a big lie, that after all planning does not work.
At the same time we have the very great success of the Asian tigers, Singapore, Taiwan and Hong Kong, which in a very short time by using basically the model of the libertarian 19th century market oriented philosophers succeeded in bringing unprecedented rates of economic growth to their people.
I believe that the recent experiences are directly relevant to what is going on in Canada and what I believe Canada should do. Unfortunately in my judgment in the post-war years the Government of Canada travelled a great deal toward the model that is exemplified by the experiences in the Soviet Union and Cuba. I do not wish to say that we have become totalitarian. I merely wish to say the government has taken on the role of a major agent in economic development. This is in contrast to the idea that the government should merely facilitate economic development through some basic rules.
We heard from a couple of representatives from the government ministry this morning. They still believe they can do essentially what has failed in so many other countries around the world. They believe they are responsible for the export success of some industries which they have mentioned.
If there really is a project in Canada which can demonstrably be successful in exporting products to China which it now cannot do, many greedy capitalists in New York and elsewhere would love to put money into such a project. If it is worthwhile it should be done by the private sector.
When there is a government agency which says: "Fill out 15 forms and subject yourself to all kinds of hearings and then we will give it to you", no wonder they all come to the government and say: "We will do it your way. It is much easier than subjecting ourselves to the rigours of the market". Then the minister can say: "Oh, what a great success this was".
If it had been anticipated to be a great success, why did the private sector not do it? The private sector would have done it, but one of the problems in Canada is that the government is constantly stepping in and removing the incentive for the private sector to engage in this kind of development.
The future of Canada can go in either of two ways. One is the vision of the present government, which is continued government involvement in regional development projects. In the rest of the world it is almost a totally discredited approach to economic development. There is hardly an economist in the world who will disagree with the proposition that the government cannot pick winners. The government is not good at picking winners for economic development and which of the industries should be supported. The failure rate is extremely high.
Remember that every time the government supports an industry and then fails, it has taken away money from the rest of Canadians. They are therefore less able to do the kind of economic development projects which traditionally were within their abilities.
My vision for Quebec and Canada is let us make our country and Quebec after the model of Switzerland. Let us have free trade. Let us have a federation where all of the policies for economic development and social development are undertaken at the lowest level possible.
The minister said that unless we do it from Ottawa we will not have a country. Switzerland has a very strong sense of country, but a very weak central government. The government in Switzerland is doing what the 19th century model says it should do: provide security, internal rules, freedom, property rights. That is what the Swiss government is doing. To say that unless we take money away from the rich provinces or cantons and give it to the poor there will not be a country is obsolete. That model has failed. Just look at the countries which have pushed it to the extreme.
In conclusion, I support the position of the resolution that is before us today. The government should generally support decentralization of function. It should go back to the function it had in the first place up until the end of the second world war.
Also, if I may be so bold as to suggest, although I am not supporting it, but if it were to take place unhappy as I would be that Quebec became independent, I do hope it would take the model of Switzerland and not that of Albania in deciding which policies it would adopt with respect to trade and economic development. If Quebec were to become like Switzerland then many of the fears which have been voiced about the consequences for the rest of Canada, even the consequences for the people of Quebec on independence would be unwarranted and unjustified.
I wish I could be optimistic about the people of Quebec and the Government of Quebec accepting my advice. Unfortunately from what I have heard in this House we will not have much support for a market Liberal type of policies. I am afraid the indications are and it makes me very sad that we will move closer toward the model that has failed.