Governing Austerity in Montreal

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In this post,  Gregoire Autin reports the findings from the exploratory research in Montreal, carried out as part of the collaborative governance under austerity project, sponsored by the Economic and Social Research Council as part of its Urban Transformations Network, and led by Prof. Jonathan Davies. In developing this case study, Gregoire worked with Professors Roger Keil from York University and Pierre Hamel from the University of Montreal.

In Montréal, we started our exploration of the relationships between governance institutions and austerity measures by interviewing executive members of important collaborative institutions. This was an interesting starting point as it allowed us to gather insiders’ views of collaboration at the metropolitan scale. We conducted 11 interviews and our questions were largely oriented towards meanings and origins of “austerity” on one side and the forms, functions and practices of collaboration in, with and against austerity measures on the other. While using the general comparative framework built for the research, we had to adapt and take into account the specific context of Montréal.

One of the main specificities is that the city was not really hit by the crisis in 2008 in particular; it has rather undergone different consecutive and ongoing crises since the 1970s. Consequently, austerity is never presented nor understood as a necessary policy in times of crisis. It is rather understood as a policy (and a politics) of state restructuring, rooted in a conservative and neoliberal ideology. Many respondents made a distinction between a supposedly necessary austerity in countries undergoing economic crises such as Greece or Spain, for example, and austerity measures rooted in a conservative ideology such as the ones implemented by the federal government under former Conservative Canadian Prime Minister Harper (2006-2015) and by  Quebec Premier Philippe Couillard’s Liberal provincial government. As such, the respondents’ understanding of austerity is strongly related to a deep dynamic of state restructuring in the context of a historic crisis of the Welfare-State. As an ideology, austerity – usually called “rigour” by the politicians in power – is upheld by conservative politicians, be it at the federal level of government under Harper’s reign or at the provincial level with Couillard’s government (in power since 2014).

One important aspect we investigated, and which remains to be further explored, is the articulation, at a local scale, of the different levels of government and decision-making. In Montréal, the history of collaboration is a long one: these different levels of government have always had to collaborate to some extent on different aspects. The three tiers of government – federal, provincial and municipal – don’t necessarily follow the same ideological approach. Thus, when the provincial administration undergoes serious austerity measures and cuts different programs, the municipal administration has to choose between increasing their participation in those programs (e.g. in public transportation), in order to supplement what has been cut at the provincial level, or maintain their financial participation and ask the other tiers of government to maintain commitments. This implies that the municipal government’s importance, at the local level, as a financing and regulating power, increases with the relative withdrawal of the provincial and federal governments.

But collaboration operates also at a different level, not only between the three tiers of government but also with actors of civil society, community organisations, the business sectors and trade unions. This is one of the notable features of Montréal where such tripartite consultations and collaborations have existed for a long time. Many community organisations get caught up between managing and contesting austerity measures which puts them in an uncomfortable place of tension: this fine line between providing a service and becoming a substitute to the state must always be walked by the different actors involved in collaboration. This is a sign of the conflicts and tensions of the state restructuring process going on in Canada and Quebec in general and more precisely in Montréal. After the failure of two successive urban regimes (from the 1950s to the 1970s and from the 1980s to 2010), Montréal is still in search of a new regime. It is interesting to see how collaboration mechanisms are redefined within austerity measures and how this impacts on the willingness of different social, economic and political actors to build a new urban regime.

Austerity measures are the harshest for the poor and underprivileged particularly in the health and education sectors. Reducing financing opportunities for the different institutions and community organisations, cutting in different programs, these measures usually target the welfare system and old social solidarity mechanisms. Even though it is difficult to predict what will come out of these austerity politics, it is still the poorer, the most underprivileged and the newest immigrants who will suffer most of it.

While those in power at the provincial level share a consensus around the “need” to reduce the public debt and, at the municipal level, the mayor has been willing to reduce its’ administration, in accord with the austerity ideology, other actors, notably the trade unions, community organisations and student movements, are actively contesting these measures. One of the main challenges these contesting actors face is coordination between them: in other words, mobilisation against austerity seems to be more sectorial than converging. Each actor faces their own problems and contradictions and this hinders the opportunity for collaboration and convergence in a movement against austerity.

This exploratory research allowed us to draw a general portrait of collaboration at the municipal level in Montreal, to look at the specificity of the context and, at the same time, the deeper trends and dynamics underlying austerity measures and programs and changes in collaboration patterns. What is particularly relevant to note is that austerity measures are not a new thing, born out of the 2008 crisis: it is rather rooted in a long historical process of state restructuring and redefinition of social solidarity and state legitimacy. It is in this perspective that we will have to continue analysing and studying collaborative governance and austerity in Montréal. The future research will focus more specifically on social practices looking at the way neighbourhood roundtables, managed by community actors, are promoting social values when negotiating or adapting to austerity measures.

Gregoire Autin is a PhD candidate in the Department of Sociology at the Université de Montréal

The Justin Trudeau Brand of Photogenic Austerity

This week’s guest contributor John Clarke argues that the Liberal Party and Justin Trudeau’s recent electoral victory in Canada is not one to be celebrated by the anti-austerity left. Rather than pursue alternative policies, we can expect the new Canadian Government to ‘stealthily’ pursue the Austerity agenda and continue a raft of reactionary policies implemented by the Conservative Harper administration.

Having replaced the crudely reactionary and rather charmless Stephen Harper as Canadian Prime Minister, the photogenic Justin Trudeau is being presented in the media as a breath of fresh air.  However, millions of working class and poor people, impacted by an intensifying austerity agenda, have grievances that will not be solved with sound bites and selfies.

Unlike the UK, where the Liberal Party went into decline in the first part of the 20th Century, its counterpart in Canada has remained a front rank political formation up to the present day.  With social democracy here playing very much less of a role, the Liberal Party has taken turns in governing with the Conservatives over generations.  It is often said of the Liberals that they ‘campaign from the left and govern from the right’.   In these times of mounting austerity, this becomes truer than ever.  Trudeau won the election by beating back an upsurge of support for the New Democratic Party (NDP).  He did this by outflanking the decidedly Blairite NDP leadership on the left. While there leader, Thomas Mulcair, vowed to be tougher than the Tories on the deficit, Trudeau adopted a Keynesian mantle and proposed limited deficit financing to stimulate the economy.

This electoral ruse was not without irony, given that it was employed by the Liberal Party.  In 1993, austerity at the federal level in Canada, took an unprecedented leap forward at the hands of the Liberal Chretien Government.  Social housing was downloaded onto the provincial governments, transfer payments to the provinces were cut massively and the Canada Assistance Plan (CAP) was eliminated.  This had provided federal money for provincial income support systems for the unemployed and disabled, while setting national standards for these programmes.  The impact of the destruction of CAP has been enormously regressive.

There is no serious possibility that the present Trudeau Government will implement serious reforms such as a national housing programme, improvements in income support systems or reverse the decline in health care standards unless they are faced with a very serious social movement that fights for such things.  In fact, the crisis that sparked post 2008 international hyper austerity, seems to be deepening in Canada to a deeply troubling degree.  The significantly resource based economy has been hard hit by the fall in oil prices. The downtown is centred in but by no means confined to the western province of Alberta, where unemployment has skyrocketed and food banks are being overwhelmed.  Moreover, as the economy slumps, Canada has a dangerous household debt level that is the highest among G7 countries.  None of this suggests any great prospects for the Liberals rediscovering their former and very dubious progressive credentials.

Since taking power, the Trudeau regime has taken care to overturn some particularly egregious measures the Harper Tories had undertaken.  Harper, for example, had tried to prevent Muslim women from taking the oath of Canadian citizenship if they wore a niqab.  When the courts struck down this hideous requirement, the Tories launched an appeal.  Trudeau was only too happy to ostentatiously kill that appeal and ‘celebrate diversity’ at no cost.  On the more decisive question of the austerity agenda’s close relative, endless war, the Liberals have been somewhat less progressive.  Harper’s shameful $15 billion arms deal with the Saudi Arabian torture state will not be cancelled and armoured vehicles, perfectly suited to murdering protesters on the streets, will be delivered as planned.  The election pledge to end Canadian airstrikes in Syria and Iraq has not only been broken but the killing and devastation has actually been intensified.  When it comes to the implementation of austerity measures, we may expect the Trudeau Government to act more stealthily that the former Tory regime but to maintain and even intensify its regressive course.

The federal system of government in Canada makes the implementation of austerity a more collaborative effort.  Some direct federal social programmes do exist, such as unemployment insurance and the Canada Pension Plan, but for the most part, social provision is in the hands of the provinces. The federal government can cut funding but not directly implement regressive policies.  If Iain Duncan Smith lived in Canada, he’d have to impose his Work Capability Assessments on the sick and disabled in one of the ten provinces.  However, the Liberal Party is at work on the austerity project in a number of Canadian jurisdictions.  In Quebec, the government of Philippe Couillard is forging ahead with unprecedented austerity measures in the face of a huge social mobilisation.  Public services and the workers that deliver them are under enormous attack.  Despite being a Liberal, Couillard has proudly acknowledged that his greatest political role model is none other than Margaret Thatcher.

In Ontario, the Liberals have been in power since 2003. They took over from a hard right wing Tory regime and have craftily consolidated and deepened the austerity measures they inherited.  They are an object lesson in the role of the Liberal Party as a kind of political chameleon.  The present leader, Kathleen Wynne, took over the job claiming she would be the ‘Social Justice Premier’.  Since 1994, social assistance payments to unemployed and disabled people in Ontario have lost at least 55% of their spending power.  This decline continued after the Liberals came to power and despite the fact that they passed a Poverty Reduction Act that they have violated by making people poorer.

The austerity agenda in Canada will be ‘kinder and gentler’ under Trudeau and his Liberal provincial counterparts only in form but not in substance.  We are really dealing with austerity in sheep’s clothing.  The contradiction in dealing with such duplicitous regimes is that they are less hard-nosed and can be forced to retreat somewhat more easily than overtly right wing governments but, at the same time, they are far more skillful in the art of political demobilisation. Dialogue and consultation are their stock in trade. It may, however, be Justin Trudeau’s misfortune to have taken on the role of Prime Minister at a time when the intensity of the austerity agenda and the social resistance it engenders will more than his charm and photogenic qualities can deflect.  Unlike David Cameron, the present Canadian Prime Minister would never stand up in the House of Commons and refer to people in a squalid refugee camp as ‘a bunch of migrants’.  His brand of austerity, however, is every bit a vicious and harmful as Cameron’s and those impacted by have just as much reason to mobilise and fight back as do people in the UK.

John Clarke is a political activist based in Canada, and founding member of the Ontario Coalition Against Poverty. He writes regularly on political and economic issues.