June/July 2007

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Excellence Without a Federal Ministry

A multitude of community colleges with high completion rates raises Canada’s standing

By Richard Van Loon

REUTERS/J.P. Moczulski
Canadian Governor General Michaëlle Jean rings a “Liberty Bell” at York University in Toronto to commemorate the opening of a research institute on the global migrations of African peoples in March 2007. The original bell was mounted in South Buxton, Ontario, in the 1850s and was rung whenever an American slave reached freedom in Canada.

Higher education, generally described in Canada as post-secondary education, was not specifically mentioned in the original Canadian Constitution when it was adopted in 1867. Instead, the British North America Act assigns education exclusively to provincial governments, subject to a number of qualifications regarding religious schools.

The fathers of the constitution were attempting to create a centralized federal structure, while still protecting the cultural and religious integrity of Quebec. What Canada got, through a combination of judicial interpretation, provincial government insistence, and cultural diversity, was one of the most decentralized federations in the world.

The combination of a decentralized federation and the attribution of educational jurisdiction to provincial governments might have created a minimal federal role as each province developed a unique system of post-secondary education. But the fiscal power of the federal government, together with a conviction that higher education was vital to the future of the Canadian economy, has resulted in the federal government exercising considerable influence over higher education and paying nearly 40 per cent of the costs.

The substantial entanglement of federal and provincial roles, however, is not accompanied by coordinating mechanisms where the two orders of government actually discuss policy. The fact that Canada has one of the highest higher-education participation rates in the world and that several universities can be viewed as world-class institutions is a tribute to the ability of institutions and diffuse governance structures to create a decentralized coordination.

More Than 1.5 Million Students Each Year
Post-secondary education is big business in Canada. In 2005, more than 1.5 million of Canada’s 32.5 million people – four per cent of the population – were enrolled in higher education, with 80 per cent of them enrolled full time. More than 40 per cent of these full-time students are enrolled in community colleges, primarily in two- or three-year technical programs. Canada has the second highest attainment rate for higher education of any Organization for Economic Co-operation and Development (OECD) country, although its university attainment rate of 22 per cent is only slightly higher than the OECD average. It is in the area of sub-baccalaureate attainment that Canada ranks at the top of the OECD nations.

Approximately three-fifths of public expenditures on higher education are funded by the 10 provincial governments, the remainder by the federal government. Tuition fees account for a steadily increasing level of institutional revenues, now about 40 per cent for universities. Tuition fees vary widely by province. They range from C$1,668 in Quebec for in-province students to C$6,030 in Nova Scotia. The median is C$4,416. Total public and private expenditures per student in Canada were us$20,000 in 2004, placing Canada third only to Switzerland and the U.S., where spending per student was closer to us$25,000. The OECD average was us$11,300.

In Canada, public universities are highly autonomous. Individual boards of governors and senates control the respective management and the academic programs of all universities, and provincial governments interfere very little in their decisions.

Thus several provinces have instituted quality assurance bodies. All are concerned that student mobility is unduly hindered by the lack of intra-provincial systems for transferring credits for courses. Canada has been relatively slow in developing quality assurance and course credit transfer mechanisms.

Ottawa and Provinces Argue, Then Agree
In the field of higher education, much of the highly decentralized formal nature of the Canadian arrangements must be attributed to the insistence by Quebec that education is exclusively the concern of the provincial government. But $9 billion per year in various forms of federal support for purely provincial institutions is not to be disregarded, so provincial governments have developed reasonable levels of coordination, all the while incorrectly insisting that the federal role is, at most, a minor one.

Canada views research as one of the major keys to economic advancement, and believes that support of university-based research is a legitimate area of federal activity. And since research is strongly concentrated in universities (as much or more than in any other advanced country), this has meant a
major role for the federal government. As a result, over 80 per cent of public support for university research in Canada comes from the federal government.

Two other major areas of federal support for higher education are student assistance and intergovernmental transfers. Federal student loan programs supplement provincial student support schemes in all provinces to the tune of approximately $2 billion per year. In addition, the federal government provides tax relief for interest payments on all student loans and savings incentive programs for higher education. Federal and provincial officials have worked out protocols and procedures to work together. Intergovernmental transfers for higher education are paid separately from other social transfers and unconditionally. However, in the federal budget of March 19, 2007, a 40 per cent increase was promised for the next fiscal year, dependent upon the federal government being satisfied that all the money is
going to higher education.

Working Without a Federal Minister
In Canada there are no formal consultative and planning mechanisms to attempt coordination and there is not a federal minister of education charged with working with the other levels of government. Yet, while the systems(s) are far from perfect, they appear to work effectively, providing a high standard of education to a large proportion of the Canadian population and sustaining successful research programs. The paradox is all the greater since, at a formal level, the Canadian Council of Ministers of Education, nominally the highest-level coordinating mechanism available, consists only of provincial ministers and it excludes attendance by any federal minister.

In fact, the outcome has been one of effective informal coordination. To some degree, this coordination is done by the higher-education institutions themselves. Also to some degree, it reflects the ability of Canadian bureaucrats to plan together, sometimes despite their political masters. It is also reflective of the insistence of the Canadian polity that the Canadian federal system must, in the end, deliver results.

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Richard Van Loon served as president and chancellor of Carleton University in Ottawa from 1996 to 2005. He also served as associate
deputy minister, Health Canada as well as associate deputy minister, Indian Affairs and Northern Development. He taught political studies at Queen’s University and public administration at Carleton University and the University of Ottawa. He has a Ph.D. in political studies from
Queen’s University.

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