Disappearing Free Enterprise
Investment capital is to an economy what seed is to a farmer's
field. Nothing happens in an economy until an investment is
made. The crop in this case is all of the economic activity that
results. This is what puts the pay cheques in the hands of people
and makes the economy run.
Capital is invested where it is believed to be safe.
Saskatchewan, unfortunately, has always viewed capital with suspicion and
is incapable of understanding the concept of capital attraction without
crown investment intervention.
In 1933, the CCF adopted The Regina Manifesto as its founding
document. The document outlines the political, economic and social
goals of the CCF. It provides a blueprint of "class
struggle" in action.
The Manifesto proudly states that "no CCF government will rest
content until it has eradicated capitalism..." and what it views as
all of its inherent evils. The Regina Manifesto is still highly
visible to potential investors today at www.saskndp.com/history
(The CCF was renamed the New Democratic Party when unions officially
amalgamated with the party.) The Regina Manifesto has never been
publicly denounced.
Is it any wonder that investment in Saskatchewan is well below the
national average and that real growth in business investment in the past
20 years is non-existent? According to the Fraser Institute's May
2002 report on Saskatchewan Prosperity, real net business investment
shrank by 59.9% between 1981 and 1985, decreased 24.4% between 1986 and
1990 and contracted another 146% between 1991 and 1995. Real
business investment did increase 30.6% between 1996 and 2000, which is
still 32% below the national average of 151.6%. Without capital
investment, Saskatchewan is forced to carry about 14 billion dollars in
accumulated debt and is dependent on about 1.3 billion dollars in assorted
transfer payments from Ottawa.
Potential investors use many tools to determine which country or
province provides a welcomed environment for investment, not the least of
which is to examine political websites. Any analyst who examined the
NDP website would conclude immediately that Saskatchewan was not an investment
friendly place and would not even make the short list of preferred
locations. Once an investment analyst discovers the section in the
Manifesto that declares, "We believe that these evils [of free
enterprise] can be removed only in a planned and socialized economy in
which our natural resources and the principal means of production and
distribution are owned, controlled and operated by the people"
[meaning the government], Saskatchewan is immediately identified as an
investment risk.
This is not to single out any particular political party as none of Saskatchewan's
political parties have introduced a motion for debate in the legislative
assembly on the wisdom of keeping the Regina Manifesto as a publicly
displayed document. Every government in Saskatchewan, regardless of
political stripe, has used the "central planning" economic
interventionist model to delivery economic growth and for 50 years the
results have been less than encouraging.
If Saskatchewan is to capitalize on its immense economic potential, it
needs to attract investment capital. If it is to provide employment opportunities
to your young people and prosperity to its citizens, the Regina Manifesto
must be publicly condemned and free market ideals renewed.
The seeds of a free and prosperous society, once planted, must be
carefully nurtured, protected and defended.
Ken Dillen
October 21, 2002 |
