ABSTRACT
At the beginning of the twenty-first century, federal redistributive policies and traditional models of territorial management are under attack in Canada and there is new interest in building region states in richer provinces like Ontario and encouraging the integration of smaller ‘have-not’ provinces that cannot make it on their own in a new economic era. It is a time when the moral foundations and relevance of Canadian federalism and her institutional and cultural traditions are being questioned by critics who believe there is no alternative but to accept continental integration and strengthening the role of subnational regions in North America.1 In an effort to transform the intellectual environment and the terms of the federal bargain, neo-liberal politicians and academics alike have raised questions about the merits of subsidizing Canada’s east-west ties, whether in the form of equalization to poor provinces or federal transfers to individuals. These supporters of change present a view of the world in which economic factors loom very large. However, in Canada, forging a consensus on the regional integration question has always proved difficult even when economic conditions have changed. Much of this is the product of a highly competitive and decentralized federal system that makes it possible for even small provinces to operate independently and resist economic changes. Even in an era of integration, Canadian federalism is known for its uncoordinated power and policies.
