Western Standard
November 8, 2004

Rescuing Canada's Right


Conservative thought is losing the battle of ideas across the country. Tasha Kheiriddin and Adam Daifallah argue that there's only one way to change that—and it's not through traditional party politics

After a decade in the political wilderness, a rare moment of elation occurred last December for Canada's right wing. The new Conservative Party of Canada, created from a merger between the Progressive Conservatives and the Canadian Alliance, was taking its first baby steps. The joy, however, was short-lived. Despite facing a new Opposition leader and public fury at the worst government corruption scandal in generations, the Liberals still managed to beat the newly merged party in the June 2004 election and retain their hold on power.

Conservative voters were disappointed, party activists were distraught, and the party's leadership was left scrambling. Ever since, the Conservatives have been acting like participants on the reality TV show, Extreme Makeover . To change the party's image, leader Stephen Harper has reshuffled his office to bring in more people from the old, more centrist, Progressive Conservative fold. He has increased the number of staff members from Quebec. He has sent out signals that he is inclined to moderate party policies, by supporting the recent federal-provincial health accord and state-run health care. And, if experience from past policy conventions is any indication, the policy convention set for March in Montreal will probably not deviate from that middling path. In short, Harper's doing everything that conventional wisdom dictates he needs to do to win the election next time around. And win he might. But at what cost? And, perhaps more importantly, for what purpose?

It is hard to blame Harper for buying into the commonly held belief that if the Conservative party is ever going to form a government, it must run from the centre—essentially transforming itself into a second Liberal party. There's a lot of evidence at hand that seems to indicate that Canadians are unprepared to embrace small-c conservative ideas. In Ontario, John Tory, the most centrist candidate in the recent Ontario Progressive Conservative leadership race, was crowned leader of the party; something that, to most observers, effectively marked the end of former premier Mike Harris's Common Sense Revolution. In Alberta, Premier Ralph Klein long ago abandoned any pretence of shrinking the size of government. His government now outspends every other, and still appears poised for yet another landslide victory in the coming November provincial election. In Atlantic Canada, provincial governments—all PC-led—have shown little interest in any sweeping or particularly conservative change.

But the notion that conservative ideas make for unwinnable platforms is only driving political strategy because parties have become so reliant on polls, focus groups and media spin. In other words, the public agenda is setting the course, and until voters embrace conservatism, it will remain, politically, a failing platform. For that to change, the conservative agenda must first drive the public agenda. Only then will it get the keys to the party machine. Change must come from the bottom up, not the top down. If the federal Conservative party is ever to win on a program of ideas that resembles conservatism, the national attitude of Canadians—and the media's perception of that attitude—must change.

What's needed goes far beyond the borders of the party and party organization. Simply padding the party with volunteers, platitudes, star candidates and clever campaign ads will not cure the problem. What's needed is a genuine movement to fuel the fire; an organized effort to build a critical mass of conservative counterculture. Such a movement would encompass the creation of think-tanks, publications and media organizations. It would require the training of bright young conservatives in professions traditionally dominated by liberals, such as the media and academia. It would mandate the establishment of legal action funds to bring forward conservative court challenges.

It would require something akin to a revolution.

For a blueprint for change, Canadian conservatives need look no further than south of the border. A well-funded conservative infrastructure, acting as a support network for the Republican party, has been instrumental in that party's victories in the U.S. Over time, this infrastructure has successfully made conservative ideas a major force in the national discourse. It did not develop out of thin air, however, but only because American conservatives were willing to make it happen.

Throughout the 1960s and '70s, American conservatives realized they were losing the battle of ideas. After the watershed defeat of Republican Barry Goldwater for president to Lyndon Johnson in 1964, U.S. conservatives got organized. Authors like Irving Kristol and William Simon called for the creation of a conservative “counter-intelligentsia” that would support scholars oriented in favour of liberty, rather than against it. Wealthy benefactors—among them the late beer magnate Joseph Coors and banking heir Richard Mellon Scaife—provided the seed money for the right-wing revolution to begin.

The result was a vast conservative network that spent more than $1 billion in the 1990s alone. Money went to fund such influential policy organizations as The Heritage Foundation, the American Enterprise Institute and the Manhattan Institute—all of which played crucial roles in the advancement of conservative ideas in the eighties, shoring up support for Ronald Reagan's presidency (the current Bush administration would later loot the think-tanks to fill various government posts).

A roster of subsidized conservative magazines—most notably The American Spectator —was later crucial in exposing details about Bill Clinton's sexual dalliances, helping to lead to his eventual impeachment in the House of Representatives. The growing chorus of conservative media voices was key in defeating several Clinton administration proposals, such as Hillary Clinton's big government health care reforms. The movement has become so popular, it has taken on a life of its own in the mainstream media. Regnery Publishing has consistently churned out one blockbuster right-wing book after the next, while television's Fox News channel and right-wing talk radio personalities like Rush Limbaugh and Michael Savage are ratings hits.

By 2000, conservatives had displaced liberals as “the party of ideas,” according to the late New York Democratic senator Daniel Patrick Moynihan. In an article published in the September-October 2004 issue of Philanthropy magazine, James Piereson, executive director of the conservative John M. Olin Foundation, notes that “there is now a robust debate in American intellectual life between conservatives and liberals. The one-sided debate, dominated by the left, is a thing of the past.”

If Canada wants to once again engender genuine policy debates, ones that are open to all perspectives, it's going to have to follow suit, creating the media and scholarly networks that will bring conservative thought in from the cold and back to mainstream acceptability. With the right united and the popularity of the federal Liberals weaker than it's been for a decade, the time to do it is now.

Luckily, the timing is also right in terms of available capital. “Canada will undergo a $1 trillion intergenerational wealth transfer over the next decade,” says Sylvia LeRoy, a policy analyst for the Fraser Institute, a Vancouver-based free-market think-tank. All that money changing hands, from parents to children, means nonprofit groups will have access to a whole new market of potential donors. “This is a huge opportunity for conservatives — as long as the message gets out and they take up the challenge,” says LeRoy.

And, these days, it's easier than ever to establish charitable foundations. While a typical foundation requires a minimum investment of about one million dollars, the establishment of community foundations allows smaller donors to band together by pooling smaller donor-directed funds of as little as $25,000. Despite the fact that Canadian tax law does not allow “activist” organizations to qualify for charitable status, charities focused on education and research are legal. But it's not as though the Canadian public policy landscape is rife with foundations bankrolling conservative scholarship.

“You could list on one hand the number of philanthropic foundations in Canada that support or bankroll the efforts of Canadian think-tanks,” says Don Abelson, professor of political science at the University of Western Ontario and author of the 2002 book, Do Think Tanks Matter?. “For the conservative movement, if they could somehow tap into some success stories in the United States, they could really have an impact, and what it might come down to is drawing on conservative foundations in the United States and elsewhere to support the policy initiatives they want to advocate.”

Because private money is so scarce in Canada, even a small reduction in funds can have an important impact on the well-being of the conservative cause. Such is the case with the Donner Canadian Foundation, the lifeblood of conservative research in this country. A decade ago, with a mission to “encourage individual responsibility and private initiative to help Canadians solve their social and economic problems,” and an annual giving budget of over $5 million, the Donner made a huge difference. From 1993 to 1999, under the leadership of executive directors Patrick Luciani and Devon Cross, it provided seed money to start a host of topnotch free-market think-tanks across Canada: the Atlantic Institute for Market Studies, the Montreal Economic Institute, the Frontier Institute, the Society for Advancing Educational Research (dedicated to promoting charter schools), the conservative The Next City magazine (now defunct), and Energy Probe (a free market–oriented environmental organization).

According to the Donner's records, in 1997 it gave $4,632,944.49, or 69 per cent of its total budget, to public policy research. The bulk of it went to projects with conservative themes, such as advancing the role of free markets, the effects of trade liberalization, and the impact of taxes and regulation on jobs in Canada. In 1998, the Donner allocated $2,190,561, or 67 per cent of its budget, to the same sort of work.

But, starting in 1999, that figure dropped dramatically, to $1,041,802, or 25 per cent of that year's budget. Insiders say that the cuts happened when family members on the Donner's U.S.–based board decided they wanted more say in the granting process in Canada. And, besides funding projects that, in the words of then-program director Sonia Arrison, “promoted liberty,” the foundation also started backing causes that mattered to individual board members, including donating money to land and wildlife conservation, international development, medical research and the arts.

Today, while the Donner's pro-individualist mission statement remains, only 26 per cent of its 2003 budget— $1,349,667—ended up in the hands of public policy researchers. (By comparison, the Donner gave half that much—$624,985—to animal welfare organizations, including $270,000 to the Calgary Zoological Society to repatriate its mountain bongo antelope to its native Kenya). Arrison, now with the Pacific Research Institute, a San Francisco–based free-market think-tank, calls the impact of the cutbacks on the conservative movement in Canada “devastating.”

Allan Gotlieb, Canada's former ambassador to the U.S., who is now chairman of the Donner Canadian Foundation, says the organization is still “the most significant contributor among foundations to policy studies in the country.” While he concurs that the Donner's funding for university-based research has declined, he emphasizes that the foundation continues to support groups like Winnipeg's Frontier Centre for Public Policy (focused on promoting fiscally conservative economic policies in the Prairies), the Toronto-based C.D. Howe Institute (a pro-market economic research centre), and the Fraser Institute. “I think the last five years has been very rich in support for these groups,” says Gotlieb. “I think the impact has been greater in the last few years than in earlier times.” As an example, Gotlieb cites the Montreal Economic Institute, the feisty voice of free markets in Quebec, which over the years has received, he says, “between $600,000 and $700,000” from the foundation.

It's true that Canada's free-market proponents owe much to the Donner. Even with the cutbacks, the foundation is still one of the most generous benefactors to the right in Canada. The trouble is, they're one of the only groups that many researchers can rely upon for funding. And as the Donner goes, so go Canada's conservative scholars.

“It's very difficult to get research money for Canadian conservative ideas,” says Arrison. “The ‘professional Canadians' [Arrison's term for government bureaucrats who grant research money] don't want conservatives to go anywhere . . . [They] want to keep Canada in one mode—they love state health care, they speak two languages. There's this idea of what Canada is, and there's this entire apparatus that exists to keep it that way.”

Abelson agrees that a lack of private funding is problematic for think-tanks. “In the United States, most free-standing think-tanks are privately funded; in Canada, few think-tanks have the luxury of turning down government money. And that's a huge, huge problem.” And, while Canadian conservative scholars may struggle to make do with what limited private sector funding they can get their hands on, their ideological enemies are often propped up with the public's own tax money. Examples include the government-funded Policy Research Initiative and Canadian Policy Research Network, both established in the mid-nineties. The latter is a quasi-public think-tank with the Trudeau-esque mission “to make Canada a more just, prosperous and caring society,” and it's received more than $14 million in public money over the past nine years. The PRI was set up to counter the perception that the government was cutting the size and policy capacity of the public sector; in 2000, its annual budget was $3 million in public funds.

Latest but not least, in 2002, the federal government gave a $125-million endowment to found the Trudeau Foundation. Based in Montreal, the foundation's main activity is awarding fellowships (worth up to $175,000 over three years) and doctoral scholarships (worth up to $50,000 annually) in the humanities and social sciences. While officially non-partisan, according to its website, the foundation's work “focuses on four themes that shaped the life and career of Pierre Trudeau,” among them “Human Rights and Social Justice” and “Responsible Citizenship.” The foundation announced its first roster of fellows in 2003. Included in the list was University of Toronto professor Janice Gross Stein, who served on Ontario Liberal Premier Dalton McGuinty's transition team.

Naturally, left-leaning think-tanks have no problem accepting public funds to promote a big-government agenda. And, presumably, big governments are more than happy to pay to have their own squad of tax-and-spend cheerleaders. The Pembina Institute, an Alberta-based organization that has been publicly pushing the Kyoto accord, received roughly $300,000 in funding in 2000 and 2001 from the federal Liberal government. Between 1991 and 2001, B.C.'s then NDP government handed over more than $400,000 in taxpayer dollars to the Canadian Centre for Policy Alternatives, a hard-left think-tank. (Its prize publication is the annual “Alternative Federal Budget,” which advocates such “alternatives” as higher spending, higher taxes, a wealth transfer tax, higher capital gains taxes and ending public-private partnerships.)

Some on the left argue that any government money they receive balances the backing that conservative groups have from their big-business allies. It would seem natural, after all, that those who make their profit from the free market would want to sponsor those researchers working to articulate the benefits of the capitalist system and the dangers of government intervention. But the notion that Bay Street is any pal of Canadian conservatives is just not true.

In the past 10 years, Canada's business community gave most of its money to the Liberal party—more than it did to the old Progressive Conservative and Canadian Alliance parties combined. In the decade after 1993, when the Liberals first formed the federal government, they collected a total of $91,436,281 in corporate donations. Compare that to $39,253,276 for the old Progressive Conservatives and just $18,089,629 for the Canadian Alliance. That doesn't necessarily mean that Bay Street rejects the right-wing ideology. Odds are that most of that money was intended to curry favour with a governing party that has made it known that its influence can be bought. In the meantime, however, those in Canada's capitalist class are working to entrench a government opposed to careful fiscal management and sound economic principles, and, therefore, against their own interests.

If a conservative revolution is going to happen, that's going to have to change. Abelson puts it bluntly: “You need a philanthropic revolution, institutions prepared to bankroll it, and a stronger entrepreneurial spirit; (you need) people who are prepared to step up to the plate, are passionate about policy issues and are prepared to support them.”

And this revolution must start now. Given the current reality, conservatives must seriously begin to ask themselves whether a point may soon be reached from which there is no return. There could come a time when the power of liberal and statist forces will be so entrenched that it can no longer be seriously rolled back. Wealthy Canadians and business people will have to put their cash where their convictions are, or conservative ideas will continue to be drowned out by those more powerful interests dedicated to preserving the status quo: the CBC, with its billion-dollar-a-year taxpayer-funded budget, the country's major newspapers, the Toronto–Montreal axis of cultural literati and elite, our major institutions of learning and professional associations, and, of course, the federal government. 

For anyone—right or left—who cares about the future of the country, and a competitive political system, that would be a tragedy. A revival of conservative thought and ideas could only help to engender a genuine dialogue about what Canada should be, and how we should define ourselves, that has not been seen since the great debates of Confederation. If conservatism is ever to play its rightful role on the Canadian political stage, the revolution has to start today.

Tasha Kheiriddin, Ontario Director of the Canadian Taxpayers Federation, and Adam Daifallah, a member of the National Post editorial board, are collaborating on a book about the future of the conservative movement in Canada.

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