Rebuilding Policy Capacity in the Era of the Fiscal Dividend: A Report from Canada

After two decades of focusing on deficit reduction and restructuring of operations, governments in many areas of the world are once again contemplating new policies and expenditures. In Canada, where budgetary surpluses have recently replaced deficits, the federal government has been asking whether it still has the capacity to make informed choices about new programs. This article examines Canada’s recent efforts in rebuilding its policy capacity. It asks, first, to what extent and in what way was policy capacity originally lost. Second, it appraises the adequacy of new policy “networks,” consisting of think tanks, consultants and government officials, as “virtual replacements” for former government‐controlled advisory bodies, royal commissions, and in‐house policy units. Finally, it notes the relative absence of parliamentarians, and even the political executive, from capacity‐rebuilding activities, a deficiency that in the long run may undermine the legitimacy and effectiveness of such efforts.