The New Staple State: Political Economy and Public Policy Regimes in Canada’s Primary Industries

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The New Staple State:

Political Economy and Public Policy Regimes in Canada’s Primary Industries

Edited By

Michael Howlett

Department of Political Science

Simon Fraser University

Burnaby BC

Keith Brownsey

Public Policy

Mt. Royal College

Calgary, ALTA

Manuscript Submitted to the

University of British Columbia Press

July 29, 2005

Table of Contents

Table of Contents ii

Table of Tables ix

Table of Figures x

Part 1 - Introduction 1

Chapter 1 – Introduction – Michael Howlett (SFU) and Keith Brownsey (Mt. Royal College) 2

Part II: The New Political Economy of Consumption Industries: Agriculture and Fish 3

Chapter II: “The Two Faces of Canadian Agriculture in a Post-Staples Economy” – Grace Skogstad (Toronto) 4

Introduction 4

I. Agriculture as a Dominant Staple: late 19th century – 1930 7

IV. State Retrenchment, Regionalisation, and Globalization in the 1980s and 1990s 11

Regional Market Integration and Dependence 13

Integration into the Multilateral Trading Regime 15

Redefining State Fiscal Obligations 16

V. The Political Organization of the Agri-Food Sector and State-Sector Relations 17

Chapter III: “The New Agriculture: Genetically-Engineered Food in Canada” – Elizabeth Moore (Agriculture Canada) 31

Chapter IV: "The Impact of International Trade Liberalization on the Canadian Fisheries Industry" - Gunhild Hoogensen, (Tromso) 32

Chapter V: "Caught in a Staples Vise: The Political Economy of Canadian Aquaculture” - Jeremy Rayner (Malaspina) and Michael Howlett (SFU) 33

Introduction: 33

(Overly) Optimistic Expansion in the 1980s and 1990s 33

Emerging Problems with Aquacultural Development 35

A Post-Staples Policy Process? 38

Aquaculture as a Problematic Post-Staples Industry 39

The Finfish Sector 42

The Shellfish Sector 44

The Existing Canadian Aquaculture Regulatory Framework 45

The Federal Situation 47

Provincial Developments 54

Conclusion 60

References 64

Part III: The New Political Economy of Transmission Industries: Oil and Gas, Electricity and Water 73

References 96

Chapter VI: “Between Old Provincial “Hydros” and Neoliberal Energy Regimes: Electricity Energy Policy Studies in Canada" - Alex Netherton, (SFU) 100

Chapter VII: "Canadian Oil and Gas In the Age of Bush" - Keith Brownsey , (Mount Royal College) 101

Chapter VIII: "Offshore Petroleum Politics: A Changing Frontier in a Global System" - Peter Clancy, (SFX) 102

Offshore Petroleum as a Distinct Political Economy 104

Spatial and Temporal Dimensions 106

Offshore Petro-Capital as a Political Factor 111

Technology as a Political Variable 117

Science, Knowledge Domains and Epistemes 120

Federalism and the Offshore Domain 123

State Strength and Capacities 125

Offshore Petroleum Regulation in the New Millennium 129

Conclusions 133

References 138

Part IV: The New Political Economy of Extractive Industries: Minerals and Forests 146

Chapter IX: Shifting Foundations: a Political History of Canadian Mineral Policy - Mary Louise McAllister (Waterloo) 147

Promising Prospects: Staples and the nascent mineral industry 149

Embedded Interests: Establishing the Staples Economy 152

Shifting Ground: Competing Interests 155

Competitive Pressures on the Resource Industry: 156

Access to Land Issues 158

Adverse Environmental and Social Impacts of Mining 159

Uncertain Territory: Complex Environments 166

Emerging Conceptual Perspectives 166

Rising to the Challenge? Responses to Change 167

Seismic Shifts or Minor Tremors in the Status Quo? 169

Conclusions: New Frontiers 173

Notes: 175

References 176

Chapter X: “Complexity, Governance and Canada's Diamond Mines” – Patricia J Fitzpatrick (Waterloo) 181

Complexity, Governance and Canada's Diamond Mines 181

The Northwest Territories Policy Community 183

Aboriginal organizations 184

Territorial Government 186

Non-Governmental Organizations 187

Proponents 188

Summary 189

Diamond Development in the North 190

West Kitikmeot Slave Society 191

Community Capacity and Public Participation in the BHP Review Process 192

The Implications of Superadded Agreement 194

BHP Independent Environmental Monitoring Agency 197

The Diavik Diamonds (DDMI) Project: Comprehensive Study 198

West Kitikmeot Slave Society Revisited 198

Community Capacity and Public Participation in DDMI EA 199

Superadded Agreements: New Players 201

Advisory Board 202

Cumulative Effects Assessment and Management Strategy 204

Other Diamond Developments in the North 204

Cross Scale Institutional Linkages 205

Conclusion 208

References 209

Tables 210

Chapter XI - Knotty Tales: Exploring Canadian Forest Policy Narratives - Jocelyn Thorpe and L. Anders Sandberg (York) 213

Introduction 213

The Staples to Post-Staples Narrative 215

Questioning the Staples to Post-Staples Transition 220

The Softwood Lumber Dispute 220

Forests as Carbon Sinks 222

Parks Versus Staples? 223

Summary 225

Staples By and For More People 225

Summary 230

Beyond the Staples to Post-Staples Transition 230

Summary and Policy Implications 236

Conclusion 238

Chapter XII: “The Post-state Staples Economy: The Impact of Forest Certification as a NSMD (NSMD) Governance System” – Benjamin Cashore (Yale), Graeme Auld, James Lawson, and Deanna Newsom 253

Introduction 253

Emergence of Forest Certification and its Two Conceptions of Non-State Governance 255

Table 1: Different Conceptions 257

Conception One 257

Conception Two 257

Key Features of NSMD Environmental Governance 263

Emergence and Support for Forest Certification in Canada 266

British Columbia 269

Standards-setting process 273

U-turn 276

Canadian Maritimes 278

Development of the Standards 280

Conclusions: Non-state Governance 285

Part V: Conclusion 290

Chapter XIII - The Dynamic (Post) Staples State: Responding to Challenges—Old and new - Adam Wellstead (Alberta) 291

Introduction 291

Contemporary Staples Economies 294

Defining the Staples State 300

Minimalist State 300

Emergent State and New Industrialism: The Staples State’s Golden Era 302

KWS Legacy and Crisis: Wither the Staples State? 304

Type 306

Time period 306

Organizations 307

Coordination 307

Dominant staples 307

Governance 310

Anthropology of the state and neo-pluralism 312

Policy Communities and Networks: Drivers of Richardian (Staples) Competitive States 314

Conclusion 317

References 320

Chapter XIV – Towards a Post-Staple State? – Tom Hutton (UBC) 332

Contributors 333

Endnotes 334

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