¹ “An Act to provide for the establishment of an Economic Council of Canada,” 08 2, 1963, art. 9.Google Scholar

² Ibid., art. 21.

³ Economic Council of Canada, First Annual Review, Economic Goals for Canada to 1970 (Ottawa, Queen's Printer, 12 1964).Google Scholar Henceforth we shall refer to this document as the Review.

⁴ The expression “healthy economic growth” (ibid., 45), encountered in lay literature, is vague and uncertain and might have been avoided by the Council. So might also the term “equitable growth” (ibid., 192), since economic growth is neither equitable nor inequitable.

⁵ In dealing with productivity changes the Council notes that “annual productivity gains are generally measured by very small numbers, and changes of a few decimal points” may make all the difference between a dynamic and a sluggish economy. It remarks that the difference between a productivity growth of 1.0 and 1.9 per cent yearly “may appear as a very small difference, but in fact the latter figure is 90 per cent above the former.” (ibid., 42–3). It is not clear by what standards 1.0 or 2.0 per cent is a “very small number” or a difference of .9 is a “very small difference.” Mathematically or logically these statements are questionable, while in matters of economic and social development the rates of the various changes which constitute the composite process of economic development are not meaningfully comparable.

⁶ The yearly increase in productivity envisaged in the Italian draft program of economic development for 1965–69 is 3 to 3.5 per cent in the non-agricultural sectors and about 6 per cent in agriculture. See del Bilancio, Ministerio, Progetto di programma di sviluppo economico per il quinquennio 1965–1969 (Rome, 01 1965), 15–17.Google Scholar

⁷ After setting the productivity target the Council notes that there are a number of factors, “both currently and prospectively, which may be more favourable to productivity gains in the future than in the past. … Among these factors are accelerating industrial research and technology and its more widespread application, an increasingly educated and skilled labour force, improving managerial competence and know-how, and rapidly growing population and markets in Canada and abroad, …” The Council notes that “the effects or many of these factors are difficult to measure with precision. We have therefore not attempted to take them specifically into account, but intend to explore further in these areas in the future.” (Review, 46)

⁸ In a staff study prepared for the Council the following three broad sectors are distinguished: agriculture; public administration and community services; and the commercial non-agricultural economy. The last sector includes “the fishing, trapping, forestry, mining, manufacturing, construction, trade, transportation, communication and storage industries and all financial, personal, business and recreation services, whether owned privately or by governments.” ( Drabble, B. J., Potential Output 1946 to 1970, Economic Council of Canada, Staff Study no. 2 (Ottawa, 1964), 7, n. 2, and 24, n. 2.)Google Scholar

⁹ See Review, 43, 52, 186.

¹⁰ For a case in point see Tinbergen, J., Central Planning (New Haven, 1964), 58–9.Google Scholar

¹¹ See especially chap. 8.

¹² Review, 21.

¹³ With respect to the argument in the text see for example Gates, T. R. and Linden, F., Costs and Competition: American Experience Abroad, National Industrial Conference Board, Studies in Business Economics, no. 73 (New York, 1961), 19, 22, 28–32, 38–9 45 81 Google Scholar; 14, 48, 90; 25–6, 32, 35–6, 83–7, 90, 108–9.

¹⁴ Some of Canada's important exports (e.g., wheat and newsprint) faced weak markets much earlier.

¹⁵ Review, 88–9.

¹⁶ Ibid., 97. In view of Canada's location and internal geography reference presumably is made to the processing of domestic materials.

¹⁷ The creation in Canada of industries processing domestic materials is often looked upon as an employment outlet. However, several types of metallurgical industries, for example, would provide employment for a rather limited volume of labour.

¹⁸ Review, 99. Reference to the underdeveloped countries as “developing,” appealing as it may be to diplomats and the broad public, can be confusing or misleading. First, some of these countries are developing very slowly, if at all, while many advanced countries are developing more rapidly. Second, the essence, characteristics and problems of the state of development are quite different from those of the rate of development.

¹⁹ Since the present total income of the underdeveloped countries is smaller than that of the advanced, even if the proportional growth of the former were to be greater, the absolute growth might still be smaller. It should be noted also that a limited increase in incomes in underdeveloped countries will be directed to agricultural goods rather than to the manufactures which Canada seems anxious to export. Canada's prospects in agricultural exports may be brighter than usually assumed.

²⁰ Review, 42, 187.

²¹ Ibid., 190, italics supplied.

²² Ibid., 190.

²³ Growth of Labour Force, 1960–1970

²⁴ Review, 166–7.

²⁵ Ibid., 128.

²⁶ Ibid., 47.

²⁷ Ibid., 128–9. Some may consider it odd that we should refer to the war period. However, if the rate of income growth of this period approximates that forecast for 1963–70 more closely than the rate of the peace years, the war period would on this count be the more relevant. Peace and “normalcy” are not the most important determinants of saving, and the effect of the war on private saving should not be exaggerated, especially in view of the conditions of Canada's participation in the last war. While certain goods were scarce, there were numerous other spending outlets and saving was not the only alternative. See Katona, G., “Contribution of Psychological Data to Economic Analysis,” Journal of the American Statistical Association, vol. 42, 1947, 456–7.CrossRefGoogle Scholar See, however, idem, Psychological Analysis of Economic Behavior (New York, 1951), 79.

²⁸ Review, 71.

²⁹ Act, art. 9.

³⁰ Review, 1. It would seem that the Council is referring to the distribution of total income, rather than incomes. It may be interesting to note also that in p. 7 of the Review a “balanced regional development” is substituted for the “equitable distribution of rising incomes” in the listing of the five basic goals for Canada. This might give the impression that non-regional inequalities of income are not a prime concern of the Council and Canada.

³¹ Review, 200.

³² Review, 2, 200–1. The Act requests the Council “to study how national economic policies can best foster the balanced development of all areas of Canada.” (Article 9) It would appear that the Council has used the term “balanced regional development” inadvertently. (Review, 25, and elsewhere). This term refers to a single region and the need for balance in the development of that region; while what the Act and the Council have in mind is a “balanced national development” or a “regionally balanced development.”

³³ Review, 201; see also 28.

³⁴ In spite of concerted government efforts the gross national product per head in Italy's South has declined compared to that in the North: in 1951 the former was equal to 51.8 per cent of the latter, by 1960 it had declined to 42.8 per cent, and by 1963 it had recovered only less than half of this decline. See Banca Nazionale del Lavoro, Italian Trends, vol. 5, No. 7–8 (July-August 1964), 3.Google Scholar

³⁵ Review, 125–6. This surplus does not include the expected net accumulation under the proposed government-administered universal pension plans.

³⁶ Act, art. 9.

³⁷ Review, 51.