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180 pages, Paperback
First published August 12, 1980
Take, for instance, the word "Balkanization". Spoken with the ring of authority, "Balkanization" can be made to sound like a compressed history lesson providing the folly of small sovereignties. But what about the Balkans, really?
Before they became small and separate sovereignties, the Balkans had been portions of very large sovereignties indeed, the Turkish and Austro-Hungarian empires. As portions of great sovereignties they had lain poor, backward and stagnant for centuries, so that was their conditions when at last they became independent. If a fate called Balkanization has any meaning at all, it must mean that the Balkans were somehow made to be poor, backward and generally unfortunate by having been cut up small, but this is simply untrue. Or else it has to mean that if Romania, Bulgaria, Yugoslavia and Albania had been joined together in one sovereignty after World War I, or perhaps had been united with Greece to form a still larger sovereignty, they would be better off now. Who knows? In the nature of the thing there is not shred of evidence either to support such a conclusion or to contradict it. (6)
Montreal used to be the chief metropolis, the national economic center of all of Canada. It is and older city than Toronto, and until only a few years ago, it was larger. At the beginning of this century Toronto was only two-thirds the size of Montreal, and Montreal was much the more important center of finance, publishing, wholesaling, retailing, manufacturing, entertainment -everything that goes into making a city economy.
The first small and tentative shifts of finance from Montreal to Toronto began in the 1920s when Montreal banks, enamored of the blue-chop investments of the time, overlooked the financing of new mining opportunities which were then opening up in Ontario. That neglect created an opportunity for Toronto banks. The stock exchange which was set up in Toronto for trading mining shares merged with the old generalized Toronto stock exchange in 1934, and by the 1940s the volume of stocks traded in Toronto had come to exceed the volume traded in Montreal.
During the great growth surge of Montreal, from 1941 to 1971, Toronto grew at a rate that was even faster. In the first of those decades, when Montreal was growing by about 20 per cent, Toronto was growing by a rate closer to 25 percent. In the next decade, when Montreal was adding a bit over 35 percent to its population, Toronto was adding about 45 percent. And from 1961 to 1971, while Montreal was growing by less than 20 percent, Toronto was growing by 30 percent. The result was that Toronto finally overtook Montreal in the late 1970s.
But even these measurements do not fully suggest what was happening economically. As an economic unit or economic force, Toronto has really been larger than Montreal for many years. This is because Toronto forms the center of a collection of satellite cities and towns, in addition to its suburbs. Those satellites contain a great range of economic activities, from steel mills to art galleries. Like many of the world's large metropolises, Toronto had been spilling out enterprises into its nearby region, causing many old and formerly small towns and little cities to grow because of the increase in jobs. In addition to that, many branch plants and other enterprises that needed a metropolitan market and a reservoir of metropolitan skills and other producers to draw upon have established themselves in Toronto's orbit, but in places where costs are lower or space more easily available.
The English call a constellation of cities and towns with this kind of integration a "conurbation", a term now widely adopted. Toronto's conurbation, curving around the western end of Lake Ontario, has been nicknamed the Golden Horseshoe. Hamilton, which is the horseshoe, is larger than Calgary, a major metropolis of western Canada. Georgetown, north of Toronto, qualifies as only a small southern Ontario town, one of many in the conurbation. In New Brunswick it would be a major economic settlement.
Montreal's economic growth, on the other hand, was not enough to create a conurbation. It was contained within the city and its suburbs. That is why it is deceptive to compare population sizes of the two cities and jump to the conclusion that not until the 1970s had they become more or less equal in economic terms. Toronto supplanted Montreal as Canada's chief economic center considerably before that, probably before 1960. Whenever it happened, it was another of those things that most of us never realized had happened until much later.
Because Toronto was growing more rapidly than Montreal in the 1940s, 1950s and 1960s, and because so many of its institutions and enterprises now served the entire country, Toronto drew people not only from many other countries but from across Canada as well. The first two weeks I lived in Toronto back in the late 1960s, it seemed to me that almost everyone I encountered was a migrant from Winnipeg or New Brunswick. Had Montreal remained Canada's pre-eminent metropolis and national center, many of these Canadians would have been migrating to Montreal instead. In that case, not only would Montreal be even larger than it is today, but -and this is important- it would have remained an English Canadian metropolis. Instead it had become more and more distinctively Quebecois.
In sum, then, these two things were occurring at once: on the one hand, Montreal was growing rapidly enough and enormously enough in the decades 1941-1971 to shake up much of rural Quebec and to transform Quebec's culture too. On the other hand, Toronto and the Golden Horseshoe were growing even more rapidly. Montreal, in spite of its growth, was losing its character as the economic center of an English speaking Canada and was simultaneously taking on its character as a regional, French-speaking metropolis.
These events, I think, are at the core of Quebec's charged and changing relationship with the rest of Canada. Things can never go back to way they were when an English-speaking Montreal was the chief economic center of all of Canada and when life elsewhere in the province of Quebec was isolated and traditional. These changes are not merely in people's heads. They cannot be reasoned away or even voted away. (13-16)
In this traditional scheme of things, Canada's regional cities also have their traditional role. They work primarily as service centers for the exploitation of resources from their hinterland. To be sure, all have some manufacturing, even the small ones like Halifax, Thunder Bay and Saskatoon and the larger ones like Winnipeg, Calgary and Edmonton, as well as the largest, Vancouver. But large or small, the regional cities of Canada do not serve as creative economic centers in their own right. They boom when the exploitation of their hinterland booms. They stagnate when the resource exploitation reaches a plateau. They decline when it declines.
This is devastating to Canadian regions where resources stop yielding more and more wealth. The passive regional cities, generating no innovations, replacing so few kinds of imports, creating so little new work, so few factories for transplanting, so few new markets themselves, cannot serve as substitute resources. Halifax, which boomed long ago when exploitation or resources in the Maritime Provinces boomed, cannot perform such services for the now impoverished Maritimes (Nova Scotia, New Brunswick and Prince Edward Island). Winnipeg, although it boomed when the wheat lands of the prairies boomed and was celebrated as the locus of the largest grain exchange in the entire world, promptly stagnated when the tasks of settling the prairie wheat lands and constructing the vast grain transportation and storage facilities had been more or less completed. Probably the currently booming Alberta oil cities of Edmonton and Calgary will stagnate in their turn -for the pattern is a consequence of Canada's curiously lopsided use of capital and its profoundly colonial approach to economic life. (21)
Quebec is presented with a difficulty not only unprecedented here, but unprecedented in Canada. The country has never before had a national city which lost that position and became a regional city. As a typical Canadian regional city Montreal cannot begin to sustain the economy or the many unusual assets it has now. As it gradually subsides into its regional role, it will decline and decay, grow poor and obsolescent. No boom in resource exploitation can save it because -as a national center- it had already surpassed what even the most prosperous Canadian regional cities are capable of supporting. None of the traditional Canadian approaches can contend with this new problem.
[. . .]
In sum, Montreal cannot afford to behave like other Canadian regional cities without doing great damage to the economic well-being of the Quebecois. It must instead become a creative economic center in its own right. That means it must cast up streams of new enterprises which, among them, take to producing wide ranges of goods now imported from other places, including other places in Canada, and which will generate new, city-made products and services that can be marketed outside of Montreal and Quebec as well as within; and it must become the kind of place where such enterprises can find the capital they require, and in turn generate more capital.
Yet there is probably no chance of this happening if Quebec remains a province. Canadian bankers, politicians and civil servants, captivated as they are by the sirens songs of resource exploitation, ready-made branch plants, and technological grandiosities, can hardly be expected to respond to Montreal's quite different economic claims upon their attention. Beliefs and practices common to all of Canada are not apt to change simply because one city, Montreal, and one province, Quebec, so urgently need them to change. (22-24)