Putting Society in context
Achieving the goal that the Conference Board sets out for Canada—that of providing a high and sustainable quality of life for all Canadians—requires much more than economic success. Self-sufficiency, equity, and social cohesion are the three dimensions assessed in the Society report card. By "high quality of life," we mean communities that ensure the active participation of individuals within society, including its most vulnerable citizens (such as youth and people with disabilities). Communities with a high quality of life also minimize the extremes of inequality between the poorest and richest citizens, and are free from fear of social unrest and violence.
What is Canada’s grade on social performance?
Overall, Canada earns a “B” and ranks 9th out of 17 countries on this report card. Its position below the Nordic countries is not surprising; the Nordic countries have long outperformed Canada. But Canada now also ranks below the Netherlands, Austria, Switzerland, and Belgium. Our middle-of-the-pack ranking means that we are not living up to our reputation or potential.
Canada has been a steady “B” performer overall in the Society report card, ranking in the middle of the pack in the 1990s and 2000s. Canada has not been able to close the gap with the top performers. Four countries have earned “A”s over the two decades: Denmark, the Netherlands, Norway, and Sweden.
The rise in poverty rates over the past decade is a major problem that must be addressed. The increase in the child poverty rate is particularly disheartening. Between the mid-1990s and mid-2000s:
- The child poverty rate increased from 12.8 per cent to 15.1 per cent;
- The working-age poverty rate rose from 9.4 per cent to 12.2 per cent; and
- The elderly poverty rate increased from 2.9 per cent to 5.9 per cent.
Most OECD countries have experienced an increase in poverty over the past decade, despite the fact that incomes at all levels have risen over the past two decades. Oxford Professor Sir Anthony Atkinson noted that the poverty statistics released by the OECD in Growing Unequal: Income Distribution and Poverty in OECD Countries show that “a rising tide does not necessarily raise all boats.”1 And, according to the OECD, in Canada, Finland, Germany, Italy, and the U.S., the gap also widened between the rich and the middle class.2
The OECD cites three factors that have been driving changes in inequality and poverty in Canada: changes in the age and household structure of the Canadian population, growing inequality of household earnings (particularly between middle- and upper-income groups), and a decline in the effectiveness of taxes and transfers in reducing poverty and inequality. The OECD notes that “increasing employment is the best way of reducing poverty . . . Thus, a key element in tackling poverty and inequality lies in creating more and better jobs.”3
Is Canada really a “kinder, gentler nation”?
Society is a category the Conference Board likes to call a “myth buster.” The self-image of Canada as kinder and gentler is based largely on a narrow Canada–U.S. comparison. Yes, Canada’s social safety net results in lower rates of poverty and income inequality, along with higher rates of self-sufficiency of vulnerable populations than in the United States. But many Canadians would be surprised to learn that U.S. assault and burglary rates are about the same as those in Canada and that the U.S. has a lower suicide rate and greater gender equity.
Canada scores an “A” on intergenerational income mobility—a measure of equality of opportunity rather than equality of outcome. It measures how well children fare as adults in relation to their parents’ financial status.
Canada also does well on the indicator measuring how accepting Canadians are of racial diversity—it ranks 2nd out of 15 peer countries and earns an “A” grade.
Canadians should care about social outcomes. In addition to promoting social justice, a strong social fabric ultimately contributes to sustainable economic prosperity.
1 Anthony Atkinson, “Unequal Growth, Unequal Recession?” OECD Economic Observer, No 270/271 December 2008–January 2009 [online, cited September 6, 2009].
2 Michael Forster, “Growing Unequal: Poverty and Incomes Over 20 Years,” DELSA Newsletter Issue 7. (Paris: OECD, 2009), [online, cited September 5, 2009].
3 Angel Gurria, “Launch of Growing Unequal? Remarks by Angel Gurria, OECD Secretary-General.” October 21, 2008. [online, cited September 12, 2009].