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The Great Corporate Colony: Welcome to Canada Inc., A Subsidiary of the American Empire & Co.
By: Andrew Gavin Marshall
The following is a sample from the first volume of The People’s Book Project, a crowd-funded initiative to produce a series of books studying the ideas, institutions, and individuals of power and resistance. Please consider donating to help the Project come to fruition.
As one of the most resource-rich countries on earth, and the largest single trading partner with the United States, Canada is strategically positioned to influence the changing nature of global power structures. Do we support – and siphon our resources for the benefit of – the American Empire, co-operating in the wholesale plundering of the world, the oppression and impoverishment of peoples, destruction of global ecology, all for the benefit of an increasingly small class of global corporations and banks… Or, do we become independent and free? Canada’s Prime Minister Stephen Harper once said, “You won’t recognize Canada when I get through with it.” With multiple “free trade” agreements under way, expanded corporate rights, expropriation of vast amounts of natural resources, Canada is becoming one of the world’s foremost corporate colonies, unrecognizable from what Canadians once imagined our nation to be.
The Plundering Potential of Resource Wealth
Canada is the second largest country by landmass in the world, after Russia, and with roughly 10% of the population of the United States, it is also one of the most resource rich countries on the entire planet. Looking at a list of the ten most resource-rich nations on earth (determined not by the multitude, but rather the ‘market value’ of the resources they contain) is rather revealing. At number ten, and in descending order is: Venezuela, Iraq, Australia, Brazil, China, Iran, Canada, Saudi Arabia, the United States, and Russia. Canada has one of the largest oil reserves in the world after Saudi Arabia and Iran (though these are largely located in the difficult-to-extract Alberta tar sands), as well as having some of the largest mineral resource deposits in the world, with the second-largest proven reserves of uranium and the third largest amount of timber. According to Statistics Canada, the nation’s natural wealth tripled in value between 1990 and 2009, then valued at $3 trillion, largely due to the increased price of oil.
In June of 2012, the United Nations released a major report in which it established a new index to account for and define ‘wealth’ beyond mere reports of GDP. Termed the “Inclusive Wealth Index” (IWI), it determines national wealth based upon three types of assets: “manufactured” (machinery, buildings, infrastructure, etc.), “human capital” (the population’s education and skills), and “natural capital” (land, forests, fossil fuels, minerals, etc.). The study, Inclusive Wealth Report 2012, analyzed 20 different countries, and was intended to take into account depleting resources and sustainability for future generations when determining a nation’s real wealth. While GDP growth has taken place in China, the U.S., South Africa and Brazil, these nations have significantly reduced their natural capital. Between 1990 and 2008, the “natural capital” of the United States declined by 20%, 17% for China, 25% for Brazil, and 33% for South Africa. In fact, 19 out of the 20 countries studied showed a decline in natural capital, offset only by an increase in human capital (education and skills).
Human capital is based upon the average years of schooling, wages that the country’s workers can demand, and how many years they are expected to work before they retire or die. With this measurement, human capital amounts to the largest percentage of a nation’s wealth (except for Nigeria, Russia, and Saudi Arabia), accounting for 88% of Britain’s wealth and 75% of America’s. Canada is of course included among the 19 countries with rapidly declining natural capital.
Canada’s Minister of Natural Resources Joe Oliver spoke to a gathering of Canaccord Genuity Corporation (a financial services conglomerate) in Toronto in September of 2012, where he explained that Canada’s “tremendous natural wealth” included “huge capacities and reserves of energy, including the third-largest proven oil reserves in the world,” as well as “tremendous hydroelectric capacity, massive tracts of forests and an abundance of minerals and metals.” He added, however: “it’s not enough to have the resources… You have to do something with them.” Oliver listed some of the many resources which Canada has and produces in abundance: oil, natural gas, hydroelectricity, uranium (second largest producer in the world), more than 200 mines turning out more than 60 minerals, “including more potash than anyone else,” as well as aluminum, cobalt, diamonds, nickel, platinum group metals, titanium concentrate, tungsten, chromite, the second-largest exporter of primary forest products, and is the “biggest exporter of wood pulp, newsprint and softwood lumber.” The resource sector, explained Oliver, “is the cornerstone of our economy, our long-term prosperity and our quality of life.”
Oliver explained that the energy, forestry, metals and minerals industries accounted for roughly 15% of Canada’s nominal GDP, the “direct contribution” to the Canadian economy, while the indirect GDP (taking into account “goods and services purchased from other sectors – construction, machinery and equipment, business and professional services”) takes the number up to roughly 20%. The key areas and industries are oil in Alberta, forestry in British Columbia, potash and uranium in Saskatchewan, mining in Ontario and hydro-power in Quebec. Oliver told the assembled crowd in the heart of Toronto’s finance industry that there was “about $650 billion invested in over 600 major resource projects currently underway in Canada or planned in the next 10 years.” He added: “Countries in the Asia-Pacific region are especially hungry for the energy and minerals and metals and forest products they need to fuel their growth and build a better quality of life for their citizens.” There were, he acknowledged, still inherent problems with the global economy which could effect this outlook, but suggested that what the Canadian government can – “and is doing – is establish a competitive business climate so the private sector can capitalize on our enormous potential.” In other words, the Canadian government will establish a highly protective and subsidized market for multinational corporations to more effectively plunder the natural resources. All for altruistic intentions, of course!
Canada’s highly influential big business dominated think tanks have not been far behind in promoting resource plundering by multinational corporations. The Conference Board of Canada published a report in June of 2012 arguing that “Canada’s trade strengths are concentrated in industries that extract natural resources and process raw materials,” including agricultural and food products, minerals and metals, forest products, and electricity exports. In the report, Adding Value to Trade: Moving Beyond Being Hewers of Wood, Michael Burt wrote: “These industries rely heavily on natural resource wealth such as land, water, forests, and mineral products. The abundance of these resources gives Canada a robust comparative advantage in the industries that extract and process them.” Thus, it would be desirable to promote the “development and use of our natural resources, and industries that support the primary sector are competitive with world standards.” The board of directors of the Conference Board of Canada includes executives and/or board members of the Business Development Bank of Canada, EPCOR Utilities, CGI Group, GE Canada, Canada Post Corporation, TransAlta Corporation, ICICI Bank Canada, Cisco Systems Canada, Desjardins Group, IBM Canada, Shell Canada, Xerox Canada, SaskTel, SaskPower, and John Manley, the President and CEO of the Canadian Council of Chief Executives (CCCE), the main business interest group in Canada, made up of the top 150 corporate CEOs in the country.
In October of 2012, the Canadian International Council (CIC) – the Canadian counterpart to the Council on Foreign Relations in the U.S. – published a report entitled, Becoming a Resource Superpower, in which the author, Madelaine Drohan (the Canada correspondent for The Economist) argued that, “without strong leadership and collaboration we risk losing an opportunity to become a real resource superpower.” A series of recommendations were laid out, including the possibility of establishing a sovereign wealth fund (SWF) to pool and invest money made from resources, encouraging the provincial and federal governments in Canada to “stop treating” revenue from resources “as income to be spent and start treating them as capital to be saved or invested.” In other words, the money made from resources should not go back to benefit Canadians, but rather be used to exclusively benefit the investor class.
Other recommendations focused on expanding the relationship between government, business, and academia (as if we don’t have enough of this already): “To do this, federal and provincial governments must concentrate their funding for research and development on collaborative projects between groups of companies and academic institutions.” Another recommendation focused on expanding “trade” networks and energy customers, specifically in the Asia-Pacific, noting: “Canada should focus on negotiations involving the largest possible number of countries, such as the Trans-Pacific Partnership, and look beyond China so we do not repeat the error of putting all our eggs in one basket.” The report then recommended the government to establish highly protectionist trade agreements for corporations, writing: “Government can help companies plug into global value chains by removing impediments and securing the right trade and investment deals.” By definition, that is the opposite of “free trade,” which is why it is important that we call it “free trade,” when in actuality, it is highly protectionist, involving state intervention designed to undermine the ‘market’ and give corporations a subsidized advantage, thus, undermining competition. The last major recommendation was for federal, provincial, and territorial governments to “collaborate on a national blueprint for resource development that identifies the gaps to be filled – including in infrastructure, environmental protection, trade diversification, education, immigration, technology, and supporting sectors – and sets out how to address them, with achievable goals and deadlines.” In other words, massive state-capitalist planning and plundering is required.
The board of directors of the Canadian International Council (CIC) includes the president and CEO of the Canadian Chamber of Commerce, Chair of the Atlantic Council of Canada, Raymond Chrétien (nephew of former Prime Minister Jean Chrétien), while the chief sponsors of the CIC include: Bennett Jones, Power Corporation of Canada (owned by the Desmarais family, Canada’s Rockefellers), the Royal Bank of Canada, AGF, Barrick Gold, BMO Financial Group, Sun Life Financial, Scotiabank, and TD Bank. So naturally, it has everyone’s interests at heart, and by ‘everyone’, I mean, everyone that matters to the investor class (i.e., the investor class).
So, as Canada increases production of oil from Alberta’s tar sands, the government is seeking to expand the major pipelines to the coast in the hopes of acquiring China as a major trading partner, instead of just the United States. Canada sits atop “unknown quantities” of natural gas reserves, what The Economist calls an “unconventional bonanza,” adding: “Just as the 20th century was the age of oil, the 21st could prove to be the century of gas.” However, in August of 2012, Canadian Prime Minister Stephen Harper declared that Canada’s future economic hopes depend upon the natural resources of the Arctic, which has been the focus of a new global grab for resources since the Arctic ice has begun to break up more rapidly. On a visit to the region, Harper stated, “Obviously, there is a tremendous economic opportunity here. The fact that we are attracting investment not just domestically, but from around the globe speaks very highly to the future.” As revealed by documents released to the press, in late 2011, the Mining Association of Canada was lobbying the Environment Minister Peter Kent “to change regulations and allow non-metal mines, such as diamonds, oilsands and coal, to discharge potentially polluted water under federal guidelines.”
In other words, now that the ice is breaking and resources are being readied for plunder, the major mining conglomerates want the government’s permission to treat the Canadian environment the way they treat the environment in the rest of the world, notably, in poor, conflict-ridden countries like Colombia and the Democratic Republic of Congo. After all, what is plundering without the added bonus of environmental devastation? It’s not just a matter of extracting and exploiting all available resources, from which to gain massive profits, but it’s also important for corporations to destroy the surrounding environment so that little, if anything, can flourish and replenish. That is plundering at its most profitable. In October of 2012, it was reported that Canada was going to claim ownership of a massive size of undersea territory in the Arctic, larger than the size of the province of Québec, and roughly equal to 20% of the country’s surface area.
In 2013, Canada will begin chairing a two-year term of the Arctic Council, a grouping of eight nations working together to manage the development of the Arctic as an economically and strategically important global region. With the opening of new and large opportunities for economic exploitation and resource plundering, the states with territory in the Arctic have become increasingly aggressive in their military posturing in the region, “increasingly designed for combat rather than policing,” according to a study by the Centre for Climate and Energy Solutions. The report noted: “Although the pursuit of co-operation is the stated priority, most of the Arctic states have begun to rebuild and modernize their military capabilities in the region.”
Canadian Prime Minister Stephen Harper had been publicly making aggressive statements about competition in the Arctic, particularly in relation to Russia. In private, however, Harper had been making different claims. As revealed by Wikileaks, Harper expressed the message to the Secretary-General of NATO that there was no real military threat in the Arctic, instead expressing the perspective that, “Canada has a good working relationship with Russia with respect to the Arctic, and a NATO presence could backfire by exacerbating tensions.” Harper added, according to the released cables, “that there is no likelihood of Arctic states going to war, but that some non-Arctic members favoured a NATO role in the Arctic because it would afford them influence in an area where ‘they don’t belong’.” All the public statements and aggressive military stances in the region have, however, helped to sway public opinion into believing that there is a “security or sovereignty threat to the northern border,” and thus justify increased expansion into the region for exploitation. The issue is not one of security, but of securing resources (for corporations, no doubt). One released cable from 2009 relayed this point accurately, noting that Canada’s defense plan to build six Arctic Patrol ships for the navy was “an example of a requirement driven by political rather than military imperatives, since the navy did not request these patrol ships. The Conservatives have nonetheless long found domestic political capital in asserting Canada’s ‘Arctic Sovereignty’.” By the summer of 2012, the aggressive rhetoric had essentially vanished, and Harper’s missions to the Arctic were entirely diplomatic and aimed at exploiting the region’s vast natural resources. The Obama administration has also identified the Arctic as “an area of key strategic interest.”
Canada For Sale: “Free Trade” Fanaticism
Canada has been pursuing a vast array of so-called “free trade” agreements with specific countries around the world, as part of the overall program of plundering resources and giving multinational corporations unprecedented control over society. Since the 1988 Canada-U.S. Free Trade Agreement and the 1994 North American Free Trade Agreement (NAFTA), Canada has pursued agreements with several countries, including Israel, Jordan, Chile, Costa Rica, Colombia, Honduras, Panama, Peru and is in talks with the European Union and Japan, as well as China and India.
On August 15, 2011, the Canada-Colombia Free Trade Agreement – a highly protectionist corporate-driven agreement (like all “free trade” agreements) – came into effect. The agreement was reached in 2008, receiving “royal assent” in 2010, and is sure to benefit major corporations and help finance a state which is responsible for the greatest human rights violations in the Western Hemisphere. Canada’s top five exports to Colombia include wheat, newsprint and paper, machinery and equipment, dump trucks as well as beans, peas, and lentils. Colombia’s top five exports to Canada include coal, coffee, bananas, fuel oil and cut flowers (note: this list excludes illicit trade products like cocaine, of which Colombia is a major global exporter).
As critics of the deal pointed to Colombia’s record on human rights abuses, Stephen Harper commented, “No good purpose is served in this country or in the United States by anybody who is standing in the way of the development of the prosperity of Colombia,” by which he means to say that human rights are irrelevant so long as multinational corporations are making large profits. And indeed, policies fit that paradigm very well. Harper added: “Colombia is a wonderful country with great possibility and great ambition. And we need to be encouraging that every step of the way. That’s why we have made this a priority to get this deal done. We can’t block the progress of a country like this for protectionist reasons.” In this sense, the word “protectionist” refers to any impediments, regulations, or barriers to the unhindered exploitation and plundering of a country by multinational corporations. When agreements are protectionist in favour of corporations, securing and enforcing their unhindered monopolization of markets and exploitation of resources, this is called “free trade.”
With more than 70 Canadian corporations in Colombia, from oil and mining to finance, the agreement will open up more access for major companies. For those who mention human rights abuses, Harper had this to say: “I think there are protectionist forces in our country and in the United States that don’t care about development and prosperity in this part of the world. And that’s unfortunate.” Chris Spaulding of Talisman Energy, a Canadian corporation doing business in Colombia, commented that, “It’s very business friendly. They want foreign investment. The labor force is very good. The resources are there.”
According to the Globe and Mail, Colombia has “near bullet-proof potential for rapid growth,” due to low wages, abundant resources, and with the return of “order” (a euphemism for state oppression and control), though the country still has a high murder rate, five times the rate of the United States. Colombia not only signed a free trade agreement with Canada, but also with the U.S., and has received top rates from the World Bank for fostering a good “business climate.” Scotiabank, one of Canada’s big five banks, made a $1 billion purchase of a 51% stake in Colombia’s fifth largest bank, Banco Colpatria. Rick Waugh, the CEO of Scotiabank, declared that, “Colombia is very important to us.”
Toronto-based mining company Gran Colombia Gold Corp has been seeking to remove an entire town, a 500-year old community, to make way for an open-pit mine. When the Colombian government was preparing to displace the town, villagers in the community formed a committee to defend themselves. One of the organizers, a local priest, Father José Reinel Restrepo, publicly denounced the plan to move the town for the benefit of a foreign corporation, even giving television interviews in which he denounced “Canadian imperialism.” He explained: “If they are going to drive me out of here, I would tell them they would have to expel me by way of bullets or machetes – but they can’t oblige me to leave.” Four days later, Father Restrepo was shot dead while traveling to visit his family.
Colombia has a long history with powerful business interests allying themselves with paramilitary outfits to “silence opponents and displace rural populations living atop natural resources.” Under the guise of the “war on drugs,” Colombia’s military, with billions in “aid” from the United States, has co-operated with big business interests and criminal paramilitary groups, purportedly to fight rebel groups (notably FARC), but mostly to clear rural communities to allow for corporate plundering of the resources upon which they sit. In recent decades, some four million people have been displaced by such actions, leaving the country with Latin America’s “most inequitable distribution of wealth.” On top of that, Colombia is a major narco-state, with state, paramilitary and rebel groups all participating in the massive cocaine trade. Many historians have described Colombia as “the world’s most enduringly violent country,” with over five decades of constant internal warfare. With over 20 major Canadian companies holding major investments in Colombia, it’s no wonder that the World Bank rated the country as the best investment climate in Latin America.
The brand of “order” that the government of Colombia has enforced in recent years represents a continuation of the policies of several administrations before it. The human rights and humanitarian crisis in Colombia is “staggering in scale,” with millions displaced, killed, tortured, raped, kidnapped or “disappeared,” more than 280,000 people had to flee their homes in 2010 alone. State, paramilitary and rebel groups have all routinely been accused of vast human rights abuses and war crimes. While the new government of President Santos promised to prioritize human rights when he came to power in 2010, the reality, according to Amnesty International, was that “threats against and killings of leaders of displaced communities and of those seeking the return of lands misappropriated during the conflict, mainly by paramilitary groups, have increased during the Santos government.” In criminal investigations of human rights abuses, witnesses, victims, lawyers, and judges have continuously been threatened or even killed. Threats and murders have also increased for human rights activists, trade unionists, and community leaders.
Canadian law demands that the government table a human rights report for Parliament on the impact of the Canada-Colombia Free Trade Agreement. Instead of submitting the report, the Canadian government decided, in May of 2012, that it would not even adhere to Canadian law, and refused to submit any such report, instead stating that it would produce a report for May of 2013. With more than 259,000 people displaced from their homes in Colombia in 2011 (on top of the 280,000 displaced in 2010), human rights abuses and war crimes will continue, with the tacit (and perhaps active) cooperation of Canadian corporations, notably mining companies. The Canadian government has effectively given the green light for such abuses to continue. While Colombia’s Constitutional Court identified 34 Indigenous nations in the country that were in “grave danger of extinction,” Canadian indifference continued. Alex Neve, the Secretary General of Amnesty International Canada declared that, “Canada must not turn its back on the human rights crisis in Colombia for yet another year… The crucial question that should not be postponed is what role is Canadian investment playing with regard to this emergency?” Neve added: “Failure to carry out a full impact assessment violates Canada’s responsibility of due diligence under international law and denies Canadian corporations working in Colombia the information they need to avoid implicating themselves in grave human rights violations.”
The website for the Canadian ministry for Foreign Affairs and International Trade declared that the Canada-Colombia FTA provided “a key boost for Canadian companies in five important sectors: agriculture, information and communication technologies, mining, oil and gas, and services.” Noting that Canada’s interest in the narco-state was “growing strongly,” the ministry website added that Colombia had “undergone important economic and legal reforms, spurring democracy and global direct investment.” The business climate, it declared, was “now stable and predictable, making Colombia a secure business partner and a solid investment destination.” With that in mind, Canada’s Defence Minister Peter MacKay signed an agreement with the Colombian military in November of 2012 to strengthen its “military relationship with Colombia,” which MacKay stated, “represents a natural evolution in our relationship… And we look forward to continuing to build our ties with the Colombian Armed Forces.” No doubt, as they continue to displace hundreds of thousands of innocent people in order to clear the land for foreign corporations, and of course, to help advance the profits of the international illicit drug trade.
Scotiabank decided to expand its operations further in Colombia, with the purchase of a majority stake in one of Colombia’s largest pension fund companies. Scotiabank has taken on a major role in “financing Colombia’s energy and mining sectors,” with the bank’s head of global wealth management stating, “We look to continue the growth and expansion of this business.” Another executive at Scotiabank stated, “We continue to invest in Colombia because we see this as a market with great potential for growth.” Interestingly, the Canadian Embassy in Colombia is located in the new Scotiabank Tower in Bogota.
Canada continues to pursue further “free trade agreements” with other countries as well, notably, Japan and China. In March of 2012, Canada and Japan agreed to begin free trade talks, already steadfast trading partners. On top of “free trade,” the Japanese Prime Minister Yoshihiko Noda announced that Canada and Japan would also be advancing defence and security “co-operation.” At the announcement, Harper declared that, “This is a truly historic step that will help create jobs and growth for both countries.” Jayson Myers, the president of the Canadian Manufacturers & Exporters association stated, “Japan is a strategic commercial partner… However, it is also a country with whom we’ve had a persistent trade deficit when it comes to manufacturing. These negotiations provide the appropriate forum to resolve ongoing concerns.”
As revealed by secret documents obtained by the media, the Canadian government had been lobbying the United States to join the Trans-Pacific Partnership agreement for the main reason of gaining more access to Japan, with one document noting that the TPP without Japan “does not excite us.” In November of 2012, it was reported that Japan was likely to follow Canada’s entrance into the TPP, the largest and most secretive trade agreement in history, involving 11 Pacific rim countries, and negotiated in cooperation with over 600 corporations. The TPP is highly controversial within Japan, since it could potentially – and likely would – lead to reduced protections and subsidies for the Japanese agriculture sector, an area long considered untouchable. A spokesperson for the Canadian department of Foreign Affairs and International Trade stated, “We welcome Japan’s interest in joining the TPP. Japan’s participation in the TPP would further strengthen Canada and Japan’s strong trade and investment relationship. We are already working closely with Japan towards a bilateral free trade agreement that will bring new jobs and increased prosperity to Canadians and we would welcome the opportunity to also work together in the TPP.”
(For more information on the TPP, please see my three-part series here: The Trans-Pacific Partnership)
Canada has also begun talks with India and hoped to sign a free trade deal with the country by the end of 2013, with Stephen Harper stating, upon a visit to India, “I think I am very clear that we need to go farther and faster.” Stephen Harper lamented against the fact that India has democratic institutions, and thus, undemocratic policies are harder to implement. He stated: “What we do have to realize when we deal with India, as opposed to some other countries that we’re dealing with in the developing world – this country is a democracy… And that means that governments cannot simply dictate a whole set of policy changes to happen the next day. That means governments must develop consensus behind policy changes. And that, in this country is not easy. We understand that.” Luckily for Harper, he doesn’t have to face any such problems at home, with a majority government, tearing the country to pieces day-by-day. Stephen Harper once boasted many years ago, that if he was given the chance to become Prime Minister, “You won’t recognize Canada when I get through with it.” Indeed, that turns out to be quite true. Indeed, back in 1997, Harper wrote an article in which he referred to Canada as “a benign dictatorship,” though there seems to be little ‘benign’ about his majority-government rule.
In September of 2012, Stephen Harper signed an investment treaty with China (as a precursor to a potential free trade agreement), called the Foreign Investment Promotion and Protection Agreement (FIPA). The details of the agreement were kept secret until the deal was tabled in the Canadian Parliament in late September, but the agreement is not to be debated in Parliament because treaty making “is a royal prerogative,” and can thus become law through the initiative of the Prime Minister’s cabinet alone, so long as the treaty is ‘tabled’ in Parliament. Canada already had roughly 24 FIPAs in operation, with roughly a dozen more in the works. FIPAs are not “free trade agreements,” but are designed to simply “protect and promote” foreign investment in legally-binding agreements. In essence, they are quicker and smaller versions of “free trade” agreements, and designed with a similar purpose: to advance corporate rights and the expense of democratic rights.
China’s ambassador to Canada stated that the two countries should move quickly toward a free-trade agreement within a decade, adding, “It’s time to open each other’s markets.” The comments came as a major Chinese state-owned corporation was seeking to take over a Canadian energy company, which would be the first direct foreign takeover of a major actor in Canada’s energy sector, a major concern for Canadians who fear Canada’s resource wealth will not benefit Canadians. On this issue, the Chinese ambassador noted, “Business is business. It should not be politicized… If we politicize all this, then we can’t do business.” The ambassador told a Canadian journalist, “We are not coming to control your resources.” No, of course not, they’re just coming to take the resources. Within a couple months, Prime Minister Harper approved of the Chinese takeover of the Canadian energy company Nexen, as well as another takeover by a Malaysian company in the Canadian energy sector. However, Harper then stated that there would be restrictions on foreign governments buying some of Canada’s largest energy conglomerates (just not these ones in particular). At a press conference, Harper stated, “When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments.” Except, of course, for all the exceptions to that rule.
Critics of the Canada-China FIPA warned that it would reduce Canada to little more than a “resource colony,” which would bind Canada to new investment rights with China for 30 years. Not only does it allow China to gain an increased foothold in Canada’s economy, and specifically, in purchasing Canadian resources, but it also acts “to protect Canadian capitalists when they go into China.” What more could someone ask for? The Council of Canadians, a public interest organization, referred to the Canada-China FIPA as a “corporate rights pact” that would have serious repercussions on Canadian environmental, energy, and financial policies. This is because the deal would allow for lawsuits against the Canadian federal and provincial governments for having “barriers” to investments, which could then be overturned.
Canada is also in the final stages of negotiating a trade agreement with the European Union, called the Comprehensive Economic Trade Agreement (CETA), designed to reduce tariffs and open up “new markets,” having major impacts upon agriculture, intellectual property rights (copyright and patent laws), with drug prices likely to increase “significantly,” as well as allowing for more “labour mobility,” a euphemism for increased labour exploitation. The agreement, which has been in negotiations for years, would “deal another blow to Canada’s already battered manufacturing sector,” with roughly 28,000 jobs under threat, deemed to be the “best-case scenario” by the Canadian Centre for Policy Alternatives. The “worst-case” scenario could see up to 152,000 jobs being “vaporized.”
As is typical, the negotiations are “behind closed doors” and barely deal with actual “trade.” CETA is, much like the TPP, termed a “next generation” free trade agreement, negotiated since May of 2009, and would further deregulate and privatize the Canadian economy, and of course, therefore, increase corporate power, and thus at the expense of democratic accountability. The agreement could restrict how local and provincial governments could spend money, even banning “buy local” policies, increase the cost of drugs by $3 billion, increase Canada’s trade deficit with the EU, allow for European corporations to attack environmental and health protections within Canada as “barriers to investment,” potentially even apply pressure to privatize water, transit, and energy, and even prevent farmers from saving their seeds, as a major gift to GMO manufacturers. Where corporate rights are advanced, democratic rights are dismantled.
A leaked document from the European Commission dated November 6, 2012, revealed that the practice of Canadian municipalities “buying locally” would disappear with the Canada-EU CETA, and that “provincial development programs could go with them.” Canadian municipalities were offering better terms for European access to municipal contracts that those which Canadian provinces give each other. The document, prepared for the European Commission’s Trade Policy Committee noted that the agreement is “the most ambitious and comprehensive offer Canada and its provinces have made to any partner, including the U.S.” EU negotiations will, however, continue to press for more access to energy sectors. Maude Barlow of the Council of Canadians noted: “The amount of room our provinces, municipalities and local communities have to support local farmers and otherwise create the jobs of tomorrow is threatened again by a Canada-European Union free trade deal that will forever prohibit these kinds of economic strategies.” The province of Ontario could alone lose between 13,000 and 70,000 jobs as a result of the agreement, according to the Canadian Centre for Policy Alternatives.
Openly acknowledged by European politicians was that Canada would be getting the short end of the stick in the CETA deal, as a Danish member of the European Parliament stated, “At the moment Europe will be able to export more than what Canada will be exporting.” Another European official closely linked to the negotiations stated, “We will gain a bit more.” Canadian Trade Minister Ed Fast said, “[t]he potential benefits to Canadians under a free trade agreement with the European Union are immense,” though he forgot to acknowledge that the ‘Canadians’ he was referring to are largely corporations, and the elite class that owns them. Michael Hart, a trade expert at Carleton University noted, “[t]rade agreements do not create jobs. Never have. Never will. But ministers have never accepted that economic insight.” And understandably so, after all, it’s rather challenging to sell a trade deal to the public if one openly declares it is for the singular purpose of advancing corporate rights, domination, and plundering. So instead, politicians must always mutter the magical word of “jobs,” which in political language, translates accurately into “profits,” as Noam Chomsky has suggested in the past. Thus, when politicians say that trade agreements will “create jobs,” which they never do, what they are actually saying is that such agreements will “create profits,” and exclusively for major multinational corporations, which they always do.
Canada’s trade agenda is of course driven by big business, whose interests will be served by such “free trade” agreements. In regards to CETA, the Canada Europe Roundtable for Business (CERT) was established in 1999 to contribute “recommendations on trade and investment to government officials and hosting thematic, high-level meeting focused on developing strategic relationships between company executives and with government officials,” according to the website for CERT. A declaration of support in 2008 for a Canada-EU trade agreement was signed by over 100 executives in Europe and Canada, urging Canadian and EU leaders to “design a new type of forward-looking, wide-ranging and binding bilateral trade and investment agreement.” Such an agreement, the document stated, “will provide European companies with a gateway into the vast North American free trade area, while increasing Canadian opportunities in the European Common Market,” serving as “a strategic and important step towards the eventual creation of a comprehensive transatlantic trade and investment area.” Among the signatories to the statement were top executives at the following companies: Anglo American plc, AstraZeneca, Barrick Gold Corporation, BASF, Bayer, Bertelsmann, BNP-Paribas, Bombardier, British Airways, Canadian Chamber of Commerce, Canadian Manufacturers & Exporters, CN, Commerzbank, Deutsche Bank, E.ON AG, Gaz de France, GlaxoSmithKline, Lafarge, Manulife Financial, Merck, Monsanto Canada, Munich Re, Pfizer Canada, Power Financial Corporation, Rio Tinto plc, Royal Dutch Shell, Siemens, SNC-Lavalin, Société Générale, SUEZ, Suncor, ThyssenKrupp, TOTAL SA., TSX Group, Ubisoft Entertainment, and Volkswagen, among many others.
In late October 2012, a number of European and Canadian big business lobbying groups, including BusinessEurope, the Canadian Chamber of Commerce, and the Canada Europe Roundtable for Business (CERT), sent a letter to the Canadian and European trade negotiators, Ed Fast and Karel de Gucht, respectively, urging them to push through on the CETA. The signatories called for Canada and the EU to reach “an ambitious and successful conclusion to the Comprehensive Economic and Trade Agreement (CETA) negotiations by the end of 2012.” The letter said it was “imperative” to “maintain a high level of ambition” in key areas which would benefit Canadian and European corporate interests. Among the many areas for which the letter suggested “a high level of ambition” were in recommending the “full and rapid dismantling of tariffs for all industrial goods,” and “[a]ccess to raw materials and energy products,” the removal of barriers and “discriminations” in service sectors, “full access” to the agricultural sector, including “a satisfactory path forward on the bio-tech issues that have caused trade impediments,” by which is meant to advance the interests of GMO manufacturers. Further recommendations included “access to government procurement” which removes all barriers and allows for increased privatization, and of course, “[r]obust protection and enforcement of intellectual property (IP) rights in both markets,” which would include “the targeting, seizing and destroying of counterfeit imports and exports,” so as to undermine competition and protect monopoly and oligopoly corporations. Finally, the letter stated that the Canada-EU agreement “must also ensure improved labour mobility,” which would allow for increased labour exploitation, enhancing competition between the labour forces of Europe and Canada, which always results in lost jobs, lower wages, and reduced protections and benefits. These are, of course, all very good things for multinational corporations. Since they are terrible things for the populations, they have to be coded in political and economic language, so instead of saying, “we want easily exploitable and cheap labour,” they suggest, “improved labour mobility,” which is also at times referred to as “labour flexibility” (i.e., making labour “flexible” to the interests of multinational corporations).
The Great Canadian Corporate Colony
Such letters from corporate leaders are necessary in order to remind political leaders whose interests they are in office to serve. The Canadian government ensured that it would serve big business interests through trade policy by appointing, in May of 2012, a new ‘advisory panel’ which would “help guide Canada’s ambitious, pro-trade plan in large, dynamic and fast-growing priority markets.” Speaking at the Canadian Chamber of Commerce, International Trade Minister Ed Fast stated: “Our government’s top priority is the economy – creating jobs, growth and long-term prosperity for Canadian workers, businesses and families… We understand the importance of trade to our economy… That is why we are deepening Canada’s trading relationships in priority markets around the world.”
Ed Fast announced the formation of the new advisory panel at the Canadian Chamber of Commerce. The members of the panel include: Murad Al-Katib, president and CEO of Alliance Grain Traders Inc.; Paul Reynolds, president and CEO of Canaccord Financial; Kathleen Sullivan, executive director of the Canadian Agri-Food Trade Alliance (CAFTA), representing 80% of Canada’s agri-food sector; Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, former president and CEO of the Canadian Manufacturers & Exporters, former president and CEO of the Canadian Broadcasting Corporations (CBC), and former government minister; John Manley, former Deputy Prime Minister of Canada, former Foreign Affairs and Finance Minister, and currently president and CEO of the Canadian Council of Chief Executives (CCCE), a corporate interest group made up of Canada’s top 150 CEOs; Catherine Swift, president and CEO of the Canadian Federation of Independent Businesses; Jayson Myers, president and CEO of Canadian Manufacturers & Exporters; Brian Ferguson, president and CEO of Cenovus Energy Inc, a major Canadian oil company; Serge Godin, founder and executive chairman of the board of CGI Group Inc, one of the largest information technology businesses in the world; and Indira Samarasekera, president of the University of Alberta. Upon the announcement of this panel, Ed Fast stated: “I look forward to receiving advice from these knowledgeable Canadian leaders.”
So we return to the statement once made by Prime Minister Stephen Harper: “You won’t recognize Canada when I get through with it.” Sadly, this is quite true as Harper Inc. advance Canada to the status of one of the world’s premier corporate colonies, where plundering for profits, environmental degradation, mass privatization, deregulation, and democratic devastation are the rules of the day. A Canada once thought of as democratic, free, and peaceful, is ever-advancing toward a fully privatized outpost of global corporate tyranny: Canada Inc., a subsidiary of the American Empire & Co.
Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project and has a weekly podcast show with BoilingFrogsPost.
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Meet Canada’s Ruling Oligarchy: Parasites-a-Plenty!
Class War and the College Crisis, Part 7
By: Andrew Gavin Marshall
As hundreds of thousands of students in the province of Québec continue to strike into their 13th week against tuition increases, as the provincial government continues to employ legal repression and state violence against the youth, as Canadian families are over $100,000 in debt, as a looming housing crisis begins to rear its ugly head, as youth unemployment increases, student debt explodes, jobs vanish, poverty deepens, and oppression increases, it’s time to meet those responsible, those who are doing better than ever, those who are making record profits, sitting comfortably in their estates which are larger than the entire island of Manhattan, who travel by helicopter and private jet, who co-mingle with the Rockefellers, Rothschilds, Spanish royalty, presidents and prime ministers at home and abroad: meet Canada’s ruling oligarchy.
As this series, “Class War and the College Crisis,” is more focused on the issue of education, I will focus here on the composition of the oligarchy in terms of how they control our educational system. This part in the series will be part article and part research annex. First, I will introduce the reader to Canada’s most powerful family, our version of the Rockefeller’s south of the border, or the Rothschilds in Europe, and of course, all these families are close in both business and social circles. Such is the nature of being an elite in a globalized world. The Desmarais family, located in the province of Québec, are without question the most influential and powerful family in the country, and it’s no wonder, considering their power is vested in an investment company known as Power Corporation.
Why is Power Corporation important?
The name says it all: it has Power. Founded in 1925, Power Corporation of Canada is an investment company involved in communications, business, and especially finance. Power Corporation was founded by A.J. Nesbitt and P.A. Thomson, two partners in the Montreal investment firm, Nesbitt, Thomson and Company, who wanted to consolidate Canada’s power sector, and established Power Corporation as a ‘holding company,’ meaning, it owns other corporations. In the 1960s, the company began to invest in energy, finance, industry, and real estate. In 1968, financier Paul Desmarais took over the leadership of Power Corporation, and rapidly expanded the assets held by the company, including by the 1970s: Canada Steamship Lines (transportation); Consolidated Bathurst (pulp and paper); Investors Group, Great-West Life, Montreal Trust (financial services); and Gesca (communications). Power Corporation expanded across Canada, Europe, and into China. Paul Desmarais stepped aside as Chairman and CEO in 1996, though remaining as the controlling shareholder, and had his two sons, Paul Jr. and André, become Chairman and President and Co-CEOs. Power Corporation owns Gesca, a communications company which in turn owns La Presse as well as six other daily newspapers in Quebec.
The Desmarais family, wrote Christa d’Souza for the London Telegraph, are “Canada’s equivalent of the Rockefellers or Vanderbilts.” Indeed, it would appear that the Desmarais are very much akin to the Rockefellers, the most powerful family in the United States, and one of the most powerful families in the world (perhaps only challenged by the older European-based Rothschild banking family). The Rockefeller family developed the Standard Oil empire, which branched off into several different oil companies, including Exxon and Chevron; founded the Rockefeller Foundation as an engine of social engineering, founded the University of Chicago, became a dominant force in global banking (through Citibank and JP Morgan Chase), highly influential in politics (Vice President Nelson Rockefeller and Senator Jay Rockefeller), and of course, remain a dominant influence in think tanks, such as the Council on Foreign Relations, the Bilderberg Group, and the Trilateral Commission, which ultimately play a major role in shaping policies of industrial nations.
The Desmarais family, while not as powerful in a global sense as the Rockefellers, have nevertheless made themselves a powerful name in the global oligarchy, and most certainly the most powerful family in Canada. Paul Desmarais Sr. is one of Canada’s richest individuals, which is, of course, no surprise, and as Konrad Yakabuski wrote for the Globe and Mail, “Desmarais has been personally consulted by prime ministers on every major federal economic and constitutional initiative since the 1970s. Most of the time, they’ve taken his advice.” Power Corporation has taken large stakes in major European companies such as Bertelsmann, Total and Suez. Peter Munk, a friend of Paul Desmarais and the CEO of Barrick Gold Corporation (a major mining company profiting off of genocide in the Congo), said that, “Paul built that business with an enormous capability for networking that no one in Canadian history has ever matched. And the boys got introduced to his contacts. They were educated well, they married well. And they’ve behaved.” In the mid-1960s, a protégé of Desmarais was a young Montreal lawyer named Brian Mulroney, who would later become Canada’s Prime Minister. Paul Sr. groomed his sons, and especially André, who is now perhaps the most well-known Canadian businessman in China. André also married the daughter of another Canadian Prime Minister, Jean Chrétien. Desmarais Sr. also got involved in French banking through Paribas, and later, Pargesa, which handled investments in a wide range of European corporations, and shot Desmarais into the accepted ranks of French nobility and the old-monied European elite. Paul Desmarais Jr. is close friends with the recent French President Nicolas Sarkozy, and socializes with Spanish royalty, the Rothschilds, and other European oligarchs.
The Desmarais family have strong connections to Canada’s four major political parties: the Liberals, Conservatives, Bloc Quebecois, and the NDP. This has included close ties to Lucien Bouchard, former leader of the Parti Québecois and Premier of Quebec, Jean Chrétien, former Canadian Prime Minister; Brian Mulroney, former Canadian Prime Minister who worked for Power Corporation; Bob Rae, an NDP leader, and Paul Martin, another Liberal Prime Minister who worked for Power Corporation. When André Pratte, the chief editorialist of the Desmerais-owned paper La Presse, wrote in 1994 that, “Power Corp. controls everything, everyone knows that. Chrétien, [then Quebec premier Daniel] Johnson, it’s Power Corp,” Paul Desmarais Sr. intervened directly with the paper to ensure that Pratte was demoted. Claude Masson, the deputy publisher of La Presse at the time, stated that, “When you bite the hand that feeds you, there are consequences.” Indeed, the hand bites back.
The Desmarais’ also have close connections with James Wolfensohn, the former President of the World Bank, who has extensive ties to the Rockefeller family. Paul Jr. married Hélene Blouin, the “founder and CEO of le Centre d’entreprises et d’innovation de Montréal, an incubator for tech businesses; a director of the Montreal Board of Trade; chairman of HEC Montréal; and a co-founder of the Montreal Economic Institute, a think tank that has become Quebec’s leading policy advocate on the non-partisan right.” André married France Chrétien, daughter of Jean Chrétien, and he even served as a press secretary to Jean Chrétien while he was Minister of Justice in the Pierre Trudeau government. In the 1990s, the international advisory board of Power Corporation included former Prime Ministers Brian Mulroney and Pierre Trudeau. Brian Mulroney was sure to create friendly ties between the Desmarais family and soon-to-be Canadian Prime Minister Stephen Harper, who put two Desmarais-connected politicians in his cabinet, Peter Mackay and Maxime Bernier.
Quebec author Robin Philpot wrote a scathing critique of the power of the Desmarais family several years ago, suggesting that, “Over the last several years, [Paul Desmarais Sr.] has spun his web to such an extent that it now enables him to call the shots,” especially in promoting his right-wing economic vision, with “a disproportionate influence on politics and the economy in Quebec and Canada.” Of course, it’s not only Canadian politicians with whom Desmarais is close, but French and American politicians as well, including Sarkozy, George H.W. Bush, and Bill Clinton. Desmarais owns seven of the ten French-language newspapers in Quebec, and has been close to nearly every Quebec premier, apart from Parti Québécois leaders Jacques Parizeau and Bernard Landry. Philpot alleged that Desmarais “has a lot of influence on Premier Jean Charest,” who is the current premier imposing tuition increases. When Desmarais received the French Légion d’honneur (Legion of Honour) from Nicolas Sarkozy, Jean Charest was in attendance, of which Philpot stated, “He took him along like a poodle.” Philpot added, “It’s a very unhealthy situation for a government to be indebted to a businessman that has his own interest at heart. They get their hands tied.”
Jean-François Lisée, the director of the Center for International Studies and Research at the University of Montreal stated that, “They are in a class all by themselves… There’s the Desmaraises, then there’s everyone else.” However, as one man close to the family said, in regards to their influence in politics, “We live in a village in Canada, and there are a lot of circumstances which come together which make it appear as if there’s some great manipulation… These are the coincidences of life. It might be more notorious than substantial.” Indeed, the elite live in “a village,” and that’s the whole point, which is, I might add, “substantial.”
In rural Quebec, the Desmarais family has an estate the size of Manhattan, with a private golf course and pheasant shooting range, as well as a music pavilion where opera is performed. This is the home of Paul Desmarais Sr. Guests, such as former U.S. Presidents George H.W. Bush and Bill Clinton, come play golf on this vast estate, and are flown in on helicopters belonging either to Power Corporation or Desmarais personally. As one of Canada’s richest billionaires, this is a simple matter. Power Corporation, which owns a controlling share in Power Financial Corporation, an insurance giant, has established ties with one of Belgium’s richest men, Albert Frere, with whom they have been in business for decades, and together hold significant shares of Total SA (the third largest oil company in Europe), Lafarge SA (the world’s largest cement maker), and GDF Suez SA (the world’s second largest utility company).
The Desmarais family has even had the internationally renowned Cirque du Soleil perform on their massive 15,000-acre estate. King Juan Carlos of Spain has even been a guest from time to time. André Desmarais is himself a member of the Trilateral Commission, founded by David Rockefeller, and is also on the International Advisory Board of David Rockefeller’s former bank, JP Morgan Chase, alongside other notables such as former British Prime Minister Tony Blair. Both brothers have regularly attended meetings of the Bilderberg Group, of which David Rockefeller is a top official (founded in 1954 as an elite think tank linking Western Europe and North America). The Desmarais also hold a major international meeting of elites in Montreal every year, the Conference de Montreal, drawing in thousands of top policy-makers, industrialists, bankers, strategists, and international elites from the major nations of the world. A son of Paul Desmarais Jr., Paul Desmarais III, is a banker with Goldman Sachs. At times, the influence of the family is shyly acknowledged. As French President Sarkozy stated upon awarding Paul Desmarais Sr. with the French Legion of Honour, “If I am the president of France today, it is thanks in part to the advice, the friendship and the loyalty of Paul Desmarais.”
So while Quebec students are being asked to pay double their current tuition to reduce public spending, the Desmarais family is hob-nobbing around with a top public-sector individual responsible for investing $150 billion in Quebecers’ public-sector pension and insurance plans, Michael Sabia. Though apparently a weekend stay at the Desmarais estate by Sabia did not involve business discussions, it was merely “friendly.” No doubt. Meanwhile, Power Financial profits rose 37% in March of 2012, earning the company $533 million, while Power Corporation itself earned $314 million in the same amount of time, with its profits also increasing by 37%.
The Canadian Oligarchy Assaults Democracy
In the 1970s, just as the United States elite were organizing for their assault on the democratic advances brought about by the activism and popular mobilizations of the 1960s, so too was Canada. With the Powell Memo and the Trilateral Commission’s “Crisis of Democracy” report in the early and mid 1970s, we saw the emergence of a vast array of right-wing pro-business think tanks which sought to – and successfully did – promote neoliberalism and thus, created enormous repercussions for universities and education. Canada was not to be left behind in the elitist assault on democracy.
As William Carroll and Murray Shaw wrote in the journal Canadian Public Policy: “Integral to the rise and consolidation of neoliberal hegemony were the emergence of new centres of class-wide business activism and the retooling of established policy institutes along neoliberal lines.” A few major think tanks and policy institutes were integral to this approach for Canada. The Conference Board of Canada was founded in 1954 when the New York Conference Board opened an office in Montreal, later moved to Ottawa, and now one of the largest think tanks in Canada, linking academia, government and corporate elites. The Private Planning Association of Canada (PPAC) was founded in 1958 by members of the Canadian American Committee (CAC), “a group of business and labour leaders from Canada and the US” who were seeking closer and deeper ties between Canada and the United States, specifically in relation to trade. When the PPAC merged with the C.D. Howe Memorial Foundation in 1973, the C.D. Howe Institute was formed. The C.D. Howe Institute became a major force pushing for free trade agreements such as NAFTA, and by the mid-1990s, was portraying social programs as a major source of Canada’s economic problems.
The Business Council on National Issues (BCNI) – now known as the Canadian Council of Chief Executives (CCCE) – was founded to create consensus on policy issues among Canada’s top 150 CEOs, making it less of a think tank, and more of a “shadow government.” Founded in 1976 in order to bring together the corporate elite of Canada into forming a more long-term strategic position with the government, directly lobbying the state. The mandate of the Council is “to ensure that Canadian chief executives play an influential role in the international financial, trade, investment, environmental and foreign affairs domains.” Since the era of the Trudeau Liberals, politicians have come and gone from power, but the Council, “the voice and organizational embodiment of corporate rule, is a permanent presence.” Another major player is the Fraser Institute (FI), dedicated to mythical “free market” policies and neoliberalism, founded in 1973 with money from fifteen different mining executives, and is essentially a replica of the American Enterprise Institute in the United States. The Fraser Institute is perhaps the most quoted institution in the Canadian media, ensuring that its neoliberal ideology is firmly entrenched in popular ‘information’ (i.e., propaganda). One study from 1998 showed that over the course of a year, the left-wing think tank, the Canadian Centre for Policy Alternatives was quoted in business news stories 16 times, while the Fraser Institute was quoted in over 140 stories.
Today, Hélène Desmarais, wife of Paul Desmarais Jr., is on the board of the C.D. Howe Institute, alongside top officials from GE Canada, Manulife Canada, HSBC Canada, Enbridge, Barrick Gold, BMO Financial Group, and a number of other top financial and industrial corporations. Power Corporation is listed among the C.D. Howe Institute’s supporters, alongside other notable entities such as: Astral Media (a major media conglomerate), Bank of America Merrill Lynch, Barrick Gold Corporation, BMO Financial Group, Bombardier, Canadian Bankers Association, Canadian Chamber of Commerce, CIBC, Canadian Pacific Railway, Canadian Oil Sands Limited, Cargill Limited, CN, Deloitte & Touche LLP, Desjardins Group, Deutsche Bank, Enbridge, Encana, Ford Motor Company, HSBC, Google, Imperial Tobacco, JP Morgan, National Bank of Canada, Pfizer, Procter & Gamble, RBC Financial Group, Rio Tinto Alcan, Scotiabank, Shell Canada, SNC Lavalin, Standard Life Financial, Swiss Bankers Association, TD Bank Group, and many others. The C.D. Howe Institute also gets a good deal of financial support from several Canadian universities, including Carelton, HEC Montréal, Laval, McMaster, Queen’s, Ryerson, Calgary, Lethbridge, Western Ontario, Université de Sherbrooke, U. of Alberta, UBC, Ottawa, Saskatchewan, U of T, and Wilfred Laurier University.
Looking at Power
The board of directors of Power Corporation includes: Pierre Beaudoin, President and CEO of Bombardier; Marcel R. Coutu, President and CEO of Canadian Oil Sands Limited and Chairman of Syncrude Canada, director of Great-West Lifeco (owned by Power Corporation), and is a member of the Canadian Council of Chief Executives; Laurent Dassault, Vice President of Groupe Industriel Marcel Dassault (a Paris-based investment and financing company), and a director of a number of European companies, including SITA, Generali France, Kudelski, and the Banque Privée Edmond de Rothschild Europe (a major banking house owned by the Rothschild family); Guy Fortin, Vice Chairman of Sanpalo Investments, former senior partner at Ogilvy Renault, Chairman of the Canadian Tax Foundation; Anthony R. Graham, President of Wittington Investments, formerly with National Bank Financial Inc., Chairman of President’s Choice Bank, on the board of Power Financial, Loblaw Companies, George Weston Limited, Brown Thomas Group Ltd, Holt Renfrew & Co., the Canadian Institute for Advanced Research, Council for Business and the Arts in Canada, and is a member of the Canadian Council of Chief Executives; Robert Gratton, former Chairman and CEO of Montreal Trust, director of Power Financial, member of the Harvard Business School Canadian Advisory Board, the Conference Board of Canada, the C.D. Howe Institute, and the Trilateral Commission; Isabelle Marcoux, Vice Chair of the board of Transcontinental Inc., on the boards of George Weston Ltd., Rogers Communications, the Board of Trade of Metropolitan Montreal; Donald Mazankowski, director of Power Financial, former member of the Canadian House of Commons and member of Parliament for 25 years, former Canadian Minister of Transport, Deputy Prime Minister, President of the Queen’s Privy Council, and Government House Leader, and is a former member of the board of governors of the University of Alberta.
Other board members include: Raymond L. McFeetors, Vice Chairman of Power Financial and Chairman of Great-West Lifeco, a director of London Life, Canada Life Financial, Canada Life, Crown Life, IGM Financial, Investors Group, Mackenzie Financial, Putnam Investments; Jerry E. A. Nickerson, Chairman of Nickerson & Sons Ltd., director of several Power Corporation companies, honorary director of the Bank of Montreal; James R. Nininger, on the Board of Management of the Canada Revenue Agency (responsible for administering the tax laws of Canada and most of the provinces), on the board of Canadian Pacific Railway, former President and CEO of The Conference Board of Canada (a major research institute/think tank); R. Jeffrey Orr, President and CEO of Power Financial, a board member of several Power group subsidiaries, former Chairman and CEO of BMO Nesbitt Burns and Vice Chairman of the Bank of Montreal’s Investment Banking Group, and is a member of the Canadian Council of Chief Executives; Robert Parizeau, Chairman of Aon Parizeau, Inc., director of National Bank Life Insurance Company, former Chairman of Gaz Métro, former director of Van Houtte, and director of the National Bank of Canada for over 20 years, and is a director of the Institute of Corporate Directors; Michel Plessis-Bélair, Vice Chairman of Power Corporation, director of several Power group subsidiaries, and a director of Lallemand Inc., Université de Montréal, Hydro-Québec, and is a member of the International Advisory Board of École des hautes etudes commerciales (HEC) of Montréal (Business School of Montreal); John A. Rae, director of a number of Power subsidiaries, a director of Fednav Ltd, BNP Paribas (Canada), McGill University Health Centre Foundation, former Executive Assistant to Jean Chrétien, National Campaign Chairman for Jean Chrétien’s 1984 and 1990 leadership campaigns, and Coordinator of the National Campaign of the Liberal Party of Canada for the 1993, 1997, and 2000 elections, and is also Chair Emeritus of the Board of Trustees of Queen’s University; Henri-Paul Rousseau, a director of several Power group subsidiaries, board member of the Global Financial Markets Association, former President and CEO of the Caisse de depot et placement du Québec (which manages public pensions for the province of Quebec), former President and CEO of the Laurentian Bank of Canada, former CEO of Boréal Assurances Inc., and former Senior VP of the National Bank of Canada; T. Timothy Ryan, Jr., President and CEO of the Securities Industry and Financial Markets Association (SIFMA), the leading trade association representing global financial market participants, CEO of the Global Financial Markets Association (GFMA), a director of a number of Power subsidiaries, as well as a director of Lloyds Banking Group, Lloyds TSB Bank, HBOS, the Bank of Scotland, and the United States-Japan Foundation, formerly a top official with J.P. Morgan, is a private sector member of the Global Markets Advisory Committee for the U.S. National Intelligence Council (NIC), the Council which oversees all sixteen U.S. intelligence agencies; and Emoke J.E. Szathmary, President Emeritus of the University of Manitoba, former President and Vice Chancellor of the University of Manitoba, Provost and Vice President of McMaster University, and former Dean of the Faculty of Social Science of the University of Western Ontario, is currently a director of a number of Power subsidiaries, and is a director of the International Institute for Sustainable Development, the Pierre Elliott Trudeau Foundation, the Canadian Foundation for Innovation, and the Board of Governors of McMaster University.
And of course, we have the Desmarais family themselves, including Paul Desmarais Sr., Paul Desmarais Jr., who is not only a director of several Power subsidiaries, but is Vice Chairman of the Board and Executive Director of Pargesa, a director of Group Bruxelles Lambert, GDF Suez, Total, Lafarge, and is a member of the European Institute of Business Administration, Chairman of the Board of Governors of the International Economic Forum of the Americas, a trustee and Co-Chair of the International Advisory Council of the Brookings Institute, founder and member of the International Advisory Board of the McGill University Faculty of Management in Montreal, and the founder and member of the International Advisory Committee of HEC (business school) in Montreal. André Desmarais is not only on several Power subsidiaries, former Special Assistant to the Minister of Justice of Canada, a director of Pargesa in Europe, CITIC Pacific Ltd. in China, is a member of the Chairman’s International Advisory Council of the Americas Society (founded by David Rockefeller), and is Honorary Chairman of the Canada China Business Council.
As for Power Financial, while there is a great deal of overlap between the two boards, there are some unique names on the board of Power Financial. Among these are J. Brian Aune, President of Aldervest Inc., former Chairman of St. James Financial Corporation, is Governor Emeritus of Concordia University; V. Peter Harder, President of the Canada China Business Council, former Canadian Deputy Minister of Foreign Affairs, former Deputy Minister of the Treasury Board, Solicitor General, Citizenship and Immigration, and Industry Canada, and is a director of IGM Financial, TimberWest, Telesat Canada, Energizer Resources, Northland Power, Pinetree Capital Ltd, and is an independent advisor to the Auditor General of Canada.
The Oligarchy of Education
Canada’s universities, like all universities, are governed by bankers and corporate executives, foundation officials, and think tank presidents, media moguls and millionaires. Given the current situation in Quebec, where hundreds of thousands of students have been taking to the streets in a strike against tuition increases, with over 200 protests in Montreal over the past three months alone, I will focus here on the two major English-speaking universities in the province: Concordia and McGill. This is important to focus on, simply because throughout this crisis, the university administrations have been claiming to be “neutral,” though they have actively set themselves against the students, filing legal injunctions against picketing, hiring private security firms to patrol the schools, and even calling in riot police to disperse striking youth. The schools have claimed to be neutral on the issue of tuition increases, though they have not – in any way – applied pressure or lobbying efforts on the government to reverse its position. In fact, it has been the exact opposite. When we look at who actually sits on the boards of the school administrations, it becomes clear that these are the very same elite who, in their various other social positions, lobby the government to increase the tuition, who sit on the boards of the banks that hand out student loans and charge exorbitant interest rates, who profit off the debt and poverty of the masses.
So let’s start with my own school: Concordia University.
The Chancellor of Concordia is L. Jacques Ménard, the President of BMO Financial Group, one of Canada’s largest banks, a director of Claridge Inc., and a director of the Institute for Research on Public Policy (a think tank promoting elite interests). The Chairman of the Board of Governors of Concordia is Peter Kruyt, President and CEO of Victoria Square Ventures, a director of La Presse (the largest French-language newspaper in Quebec), a director of Picchio Pharma Inc., a director of CITIC Pacific Ltd., Chairman of the Canada China Business Council, and a Vice President of Power Corporation, a company he has been working for since 1980 when he was Executive Assistant to the CEO, Paul Desmarais.
Norman Hébert, Jr.: CEO of Group Park Avenue Inc., former board member of Hyrdo-Québec, Chairman of the Board of Société des Alcools du Québec (SAQ, a provincial crown corporation which sells liquor).
Hélène F. Fortin: a director of Larose Fortin CA Inc., member of the Institute of Corporate Directors, former Assistant to the Vice President of Quebecor Inc. (a major media conglomerate), and a former director of CBC and Hydro-Québec.
Brian Edwards: founder of BCE Emergis, one of North America’s largest electronic commerce companies, Chairman of the Board of Miranda Technologies and Biotonix 2010 Inc., and is on the boards of Camoplast Inc. and Impath Networks Canada Corporation, and Transat AT.
Jean Pierre Desrosiers: on the boards of KPGM, Aéroports de Montréal and D-BOX Technologies Inc.
Rita Lc de Santis: a partner at Davies, Ward, Phillips & Vineberg, former member of The Italian Chamber of Commerce in Canada, Board of Trade of Metropolitan Montréal, Business Development Bank of Canada and Hydro-Québec.
James Cherry: President and CEO of Aéroports de Montréal, former executive with Bombardier, Oerlikon Aerospace Inc., CAE Inc. and ALSTOM Canada Inc.
Baljit Singh Chadha: Director of the Canada-India Business Council, Pesident and founder of Balcorp Ltd.
Charles Cavell: former President and CEO of Quebecor World Inc., former Chairman of the Board of Sun Media Corp, a director of Adaltis Inc., Novelis Inc.
Tim Brodhead: former President and CEO of the J.W. McConnell Family Foundation, former Executive Director of the Canadian Council for International Co-operation (CCIC), past chair of Philanthropic Foundations Canada.
Joelle Berdugo Adler: founder of ONEXEONE, and CEO of Diesel Canada.
Jonathan Wener: President and CEO of Canderal (a major real estate investment company), a trustee of the Fraser Institute, member of the board of the Laurentian bank of Canada, Silanis Technologies, and former president of the Urban Development Institute of Canada.
Annie Tobias: former official at Deloitte & Touche
Michael Novak: Executive Vice President of SNC-Lavalin Group, a global engineering and defense contractor.
Marie-José Nadeau: Executive Vice President of Hydro-Québec, Executive Vice President of Corporate Affairs and General Secretary at Cascades Fine Papers Group Inc, and is a director of Metro.
Andrew T. Molson: Chairman of the Board of Molson Coors Brewing Company, is a partner and chairman of RES PUBLICA Consulting Group, a Montreal-based holding and management company, is Chairman of the Board of Trade of Metropolitan Montreal and a director of The Montreal Canadiens, DundeeWealth Inc., Groupe Deschênes Inc. and Montréal International, and is president of the Molson Foundation.
Tony Meti: President of G.D.N.P. Consulting Services, Inc., a former Senior Vice President at National Bank Financial Group, a director of ADF Group, Saputo Inc.
Jacques Lyrette: Executive at Innovative Materials Technologies, former CEO of ADGA Inc., an engineering consulting company.
Arvind K. Joshi: CEO at St. Mary’s Hospital Center, member of the advisory board of the John Molson School of Business at Concordia University.
Suzanne Gouin: President and Chief Executive Officer, TV5 Québec Canada, former director of Hydro-Québec.
H. Arnold Steinberg: Chancellor of McGill University, formerly worked for Dominion Securities (now RBC – Royal Bank of Canada – Dominion Securities), has been a member of the boards of Bell Canada, Teleglobe, Provigo, National Bank of Canada.
Heather Munroe-Blum: Principal and Vice Chancellor of McGill, is on the board of the Internationalization Committee, and the Membership Committee of the Association of American Universities, a member of the Science, Technology and Innovation Council (STIC) of Canada, the U.S. National Research Council’s Committee on Research Universities, the Canada Foundation for Innovation, the Trilateral Commission, and is co-chair of the Private Sector Advisory Committee of the Ontario-Quebec Trade and Co-operation Agreement, on the boards of the Trudeau Foundation, Canada Pension Plan Investment Board (CPPIB), Conférence de Montréal, and the Royal Bank of Canada. She has served on the boards of the Conference Board of Canada, Montreal Chamber of Commerce, Four Seasons Hotel, and Hydro One.
Stuart Cobbett: Managing Partner and Chief Operating Officer of Stikeman Elliott LLP, and is a Director of Citibank Canada.
Lili de Grandpré: founder of an organization strategy consulting firm, CenCEO Consulting, formerly with the Mercer Consulting Group and Bank of Montreal.
Michael Boychuk: President and CEO of Bimcor Inc., and is a member of the advisory board of Centennial Ventures, a U.S. private equity firm, former Senior Vice President and Treasurer of BCE Inc. and Bell Canada.
Gerald Butts: President and CEO of WWF-Canada.
Daniel Gagnier: former Chief of Staff to Quebec Premier Jean Charest, former VP at Alcan, former Chairman of the Canadian Manufacturers and Exporters, current chairman of the International Institute for Sustainable Development, and a board member of the Asia-Pacific Foundation.
Banking on Power
In Canada, there are five major banks which dominate the national banking sector (and together wield enormous influence over Canada’s monetary system through the Bank of Canada). These banks are the Canadian Imperial Bank of Commerce (CIBC), the Bank of Montreal (BMO), Toronto-Dominion Bank (TD), the Bank of Nova Scotia (Scotiabank), and the Royal Bank of Canada (RBC). To understand how these banks wield influence over Canada as a whole, it would be useful to examine the boards of directors of the banks, drawing the overlap of leadership between the ‘Big Five’ and Canada’s major corporations, think tanks, foundations, media and educational institutions. For the purpose of this report, I will simply take a look at the board of directors of the biggest bank: Royal Bank of Canada (RBC), and show how it overlaps with the other institutions which dominate our society.
W. Geoffrey Beattie: on the board of directors of General Electric (GE), President of the Woodbridge Company, a privately held investment holding company (the majority shareholder of Thomson Reuters, a major media conglomerate of which he is Deputy Chairman), and he is also a board member of Maple Leaf Foods Inc. and Chairman of CTV Globemedia, a major Canadian media conglomerate.
Richard L. George: President and CEO of Suncor Energy, on the board of the Canadian Pacific Railway, former Chairman and current board member of the Canadian Council of Chief Executives (CCCE), was a member of the North American Competitiveness Council (NACC), which was formed in 2006 to advise North American governments on the process of ‘North American integration’.
Paule Gautier: the first woman president of the Canadian Bar Association, on the boards of Metro Inc., TransCanada Corporation, and Transcanada Pipelines, an associate member of the American Bar Association, and is on the board of CARE, a supposed “humanitarian” organization, and she was a former director of the Institut Québecois des Hautes Études Internationales at Laval University.
Timothy J. Hearn: former CEO of Imperial Oil Limited, former chairman of the C.D. Howe Institute (a major pro-business think tank) where he remains as a board member, former member of the Canadian Council of Chief Executives (CCCE), is co-chair of a fundraising campaign for the University of Alberta and is chair of the fundraising campaign for Tyndale University, and is on the Advisory Board of the Public Policy School at the University of Calgary, a director of Viterra Inc., and is Chair of the board of directors of the Calgary Homeless Foundation.
Alice D. Laberge: former CEO of Fincentric, a current Commissioner of the Financial Institutions Commission, on the board of the Minerva Foundation, and a member of the Financial Executives Institute, and a former director of BC Hydro and Power Authority, and is on the board of directors of the University of British Columbia (UBC).
Jacques Lamarre: former President and CEO of SNC-Lavalin, a major global engineering, construction, and military contractor; is on the board of Suncor Energy, the founding member and former Chair of the Commonwealth Business Council, former Chairman of the board of directors of the Conference Board of Canada, a leader at the World Economic Forum, a former director of Canadian Pacific Railway, a member of the C.D. Howe Institute’s British North American Committee.
Brandt C. Louie: Chairman and CEO of H.Y. Louie Co. Limited, a food retail distribution company, Chairman of London Drugs Limited, Vice Chairman of IGA Canada Ltd., former Chancellor of Simon Fraser University (SFU), Governor of the Vancouver Board of Trade, Governor of the British Columbia Business Council, a member of the Canadian Council of Chief Executives (CCCE), and is a member of the Dean’s Council of the John F. Kennedy School of Government at Harvard University, and is a current director of the Gairdner Foundation. He is also a board member of the World Economic Forum, Grosvenor (a property company), and the Fraser Institute, a major right-wing pro-business think tank.
Michael H. McCain: President and CEO of Maple Leaf Foods Inc., Chairman of the Canada Bread Company, board member at the American Meat Institute, the Richard Ivey School of Business Advisory Board, a member of the Canadian Council of Chief Executives (CCCE), and a former director of Bombardier Inc.
Heather Munroe-Blum: the Principal and Vice Chancellor of McGill University, board member of the Canadian Pension Plan Investment Board, a member of the Trilateral Commission, has attended meetings of the Bilderberg Group, is co-chair of the Private Sector Advisory Committee of the Ontario-Quebec Trade and Co-operation Agreement, on the board of the Trudeau Foundation, and is on the board of the Conférence de Montréal (the International Economic Forum of the Americas), which is chaired by Paul Desmarais Jr.; and she has also been on the boards of the Conference Board of Canada, Montreal Chamber of Commerce, Four Seasons Hotel, and Hydro One.
Gordon Nixon: President and CEO of the Royal Bank of Canada, a director and past Chairman of the Canadian Council of Chief Executives (CCCE), on the board of directors of the International Monetary Conference, and has been on the boards of Daimler/Chrysler, Catalyst, EnCana Corporation, and Queen’s University School of Business; is a director of the Institute of International Finance and has attended Bilderberg Group meetings.
David P. O’Brien: Chairman of the Board of the Royal Bank of Canada, Chairman of EnCana Corporation, a director of Enerplus Corporation, Molson Coors Brewing Company, and TransCanada Corporation; he is also the Chancellor of Concordia University, and is on the board of the C.D. Howe Institute. He was the former Chairman and CEO of Canadian Pacific Limited.
J. Pedro Reinhard: a director of the Colgate-Palmolive Company, a director of Sigma-Aldrich Corporation, a chemical company; former Executive Vice President and Dow Chemical Company, is a former board member of the Coca-Cola Company, and is President of Reinhard & Associates, a financial advisory practice.
Edward Sonshine: was President, CEO and a director of RioCan Real Estate Investment Trust, Chairman and a director of Chesswood Income Fund, and is Vice Chairman and a director of Mount Sinai Hospital.
Kathleen P. Taylor: President of Four Seasons Hotels and Resorts, is a director of The Hospital for Sick Children Foundation, a cabinet member of the United Way of Greater Toronto and a member of the Industry Real Estate Financing Advisory Council of the American Hotel and Motel Association and the International Advisory Council of the Schulich School of Business of York University.
Bridget A. van Kralingen: Senior Vice President of IBM, and was Managing Partner of Deloitte Consulting, and is a member of the board of advisors at Catalyst Inc.
Victor L. Young: a director of Imperial Oil Ltd., former Chairman and CEO of Fishery Products International Limited, and is a current board member of McCain Foods, former Chairman and CEO of Newfoundland and Labrador Hydro, and was a director at BCE Inc. (Bell Canada).
Our Parasitic Elite
Canada’s elite, like all elites, are parasitic to the social good and wellbeing of the people. They own the banks and financial institutions, own our central bank which sets the interest rates, gives loans and collect on debt, pushing people deeper into servitude and slavery; poverty as punishment. They control our media, which shapes our views and ‘opinions,’ they sit on the boards of our universities, putting future generations into debt before they have a chance at life, and control the ‘knowledge economy’ for which they have defined the purpose of education. They influence and control our governments and political leaders, sit on the boards of the think tanks that write policy and promote political agendas, they run the foundations and claim themselves to be benevolent philanthropists, when philanthropy is at best, moral masturbation for the wealthy, a way to feel good about their vast disparity of wealth, and at its more organized levels, is simply a means through which to engage in social engineering and social control: to give a little in order to continue taking so much. The profit off of the foreign wars our country wages and supports, blood plunderers of the Congo, Afghanistan, and Libya. The Canadian elite rule the country as a proxy for the American Empire, acting as a resource suction-cup for the behemoth below us, providing the United States with most of its oil, water, electricity, and timber. These rapacious parasites claim they hold the answers to the crises they cause and profit from; a super-class which can only be understood as a sprawling, venomous, and vacuous social succubus.
With a massive student movement in Quebec nearing its fourth month of strikes against tuition increases, the media has set against them in a massive propaganda campaign, the legal system has set against them in declaring injunctions against picketing students, the provincial state has dismissed, derided, and engaged in fallacious negotiations designed only to win public sympathy for the government, while the police have been incredibly oppressive against the youth: employing pepper spray, tear gas, smoke bombs, concussion grenades, beatings with batons, mass arrests, shooting students in the face with rubber bullets, and a disturbing trend of driving police cars and trucks into crowds of students. These are images you expect from a military dictatorship like Egypt, but not from a supposed “democracy” like Canada. In the midst of this social upheaval and state repression, the propaganda campaign against the students has been so successful that the majority of public opinion stands with the government and against the youth. Through every institution, and with every means made available, the elite have set themselves against the student movement. It is time the students and Canada at large recognize our elite for what they are: parasites!
While this rhetoric is perhaps a little inflammatory, it remains apt. A parasite is much smaller than its host, and it benefits at the expense of the host, changing its behaviour and health. The word “parasite” comes from the Latin word parasitus which is itself derived from the Greek word, parasitos, meaning, “one who eats at the table of another.” The elite have been eating at our table for far too long. They have long over-stayed their welcome. It’s time to make it known that we have no patience or place for them at our table any longer. This will not be easy, this will not be simple; this will take a long time and a great deal of effort. But if we don’t start now, if we don’t begin to take and create a society of, by, and for the people (what was once referred to as ‘democracy’), then elite parasitism will continue to sap the strength, health, environment, wealth, and the very hope and lives of future generations. They will continue to spread like a social cancer until the host is dead.
The youth are always told that the future is ours, but that remains up to us to make it so. The past and the present belong to the parasites, so if we do not stand up and struggle now and forever, we have no future to inherit, no world in which to grow and no hope in which to gaze. We have only debt bondage, state violence, table scraps, impoverishment, punishment, and oppression. The youth in Quebec are trying to just begin to stand up, to say ‘No More!’ and demand for themselves and others a chance at a future. The success of the strike is secondary to the newly-discovered strength of the students. They have been dismissed and derided, insulted and oppressed, from the left and the right, from so-called Progressives and self-congratulating Libertarians. Because the students do not articulate the same philosophy as those of other critics, they are presented as naïve and ‘entitled.’ Those who insult and deride without empathy or understanding only expose their own naivety.
The fundamental and historical importance of the present situation in Québec is not the cost of tuition, it’s the mass mobilization of youth: it is an expression of a popular and growing dissatisfaction with the way things are and an articulation and drive to create something different, to chart a course for the way things can be. Those who fail to see and recognize that, fail to see the development of progress through history, not immediate, but evolving, not instant, but incremental and persistent. If nothing else, this generation can look back and say, “At least we tried. At least we started.”
What will you look back and say?
Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.
 Christa d’Souza, The art of being Louise MacBain, The Telegraph, 26 June 2004:
 Konrad Yakabuski, Like Father, like sons?, The Globe and Mail, 26 March 2006:
 Marianne White, “Author delivers high-voltage critique of Paul Desmarais Sr. — the man behind Power Corp,” Ottawa Citizen, 21 October 2008:
 Ian Austen, “The Name Is ‘Power’ and It Fits,” The New York Times, 26 January 2007:
 Lisa Kassenaar, “Desmarais family keeps a low profile,” Edmonton Journal, 1 August 2009:
 Lisa Kassenaar, “Buffett Loses to Desmarais as Power Exceeds Return,” Bloomberg, 30 July 2009:
 Christinne Muschi, “Great-West Lifeco helps boost profit at Power Financial,” Reuters, 14 March 2012:
Kevin Dougherty, “Sabia-Desmarais meeting was “friendly”, not lobbying, Caisse de dépôt says,” Montreal Gazette, 7 February 2012:
 William K. Carroll and Murray Shaw, “Consolidating a Neoliberal Policy Bloc in Canada, 1976 to 1996,” Canadian Public Policy (Vol. 27, No. 2, June 2001), pages 196-200.
 William K. Carroll and Murray Shaw, “Consolidating a Neoliberal Policy Bloc in Canada, 1976 to 1996,” Canadian Public Policy (Vol. 27, No. 2, June 2001), pages 200-202.
 C.D. Howe Institute, Members and Supporters: http://www.cdhowe.org/members-and-supporters