FRONTIER CENTRE FOR PUBLIC POLICY 2003

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FRONTIER CENTRE FOR PUBLIC POLICY 2003

FRONTIER CENTRE FOR PUBLIC POLICY 2003

“New Zealand would be a better country if we had a Frontier Centre for Public Policy. You need some

think tanks that “mix it,” take the ideas that other think tanks have got and translate them into more

popular language. There are certain principles about think tanks. Why think tanks work better than politicians is because political parties have less credibility. A political party wants

something. It wants your vote and tends to say what you want to hear. The think tank is not looking

for your vote, so think tanks can raise issues that political parties tend to run away from.”

Hon. Richard Prebble,Minister of State Owned Enterprise,

New Zealand Labour Government 1984-1989

The Frontier Centre is an independent, non-profit thinktank founded to undertake research and education insupport of economic growth and social outcomeswhich will enhance the quality of life in our communities.

Through a variety of publications and public forums,the Frontier Centre explores policy changes required tomake the Prairies a winner in the open economy. It alsoprovides new insights into solving important issues facingour cities, towns and provinces.

A professional staff and an advisory board of policypractitioners and experts research, write about andcommunicate new policy ideas, sharing them with themedia, decision-makers and opinion leaders throughoutthe Prairies.

ContentFrontier Centre for Public PolicySuite 25 Lombard ConcourseOne Lombard PlaceWinnipeg, ManitobaR3B 0X3

Tel: (204) 957-1567Fax:(204) 957-1570E-mail: newideas@fcpp.orgHomepage: www.fcpp.org

BOARD OF DIRECTORS

Wayne AndersonRobert Binding (Treasurer)Tom CarsonRob CoghlanSue HicksPeter HolleLisa LewisSandi Mielitiz (Secretary)Don PennyJames RichardsonRichard M. RiffelBruce Thompson (Chair)Curt Vossen

STAFF

Peter HollePresident

Claire ToewsDirector of Administration

Dennis OwensSenior Policy Analyst

Luc TremblayDirector of Development

Robert SopuckDirector, Rural Renaissance

Project

Daniel KlymchukImmigration Frontiers

Project

Message from the PresidentMessage from the PresidentMessage from the PresidentMessage from the PresidentMessage from the President 33333

OutreachOutreachOutreachOutreachOutreach 44444

PublicationsPublicationsPublicationsPublicationsPublications 55555

MediaMediaMediaMediaMedia 77777

Financial SummaryFinancial SummaryFinancial SummaryFinancial SummaryFinancial Summary 99999

FRONTIER CENTRE FOR PUBLIC POLICY 2003

The world of ideas is constantly changing. The peoplewho work in the think tank world and attempt todefine it learn to adapt and respond to mercurialpublic conditions and perceptions. At the Frontier Centre,we try to bring leadership to that condition of perpetualflux with an order derived from core principles of publicpolicy. Out of a diversity of themes we struck in 2003, inretrospect there emerges common elements key to ourcentral mission of stimulating policy innovation, theadvancement of prosperity in the Prairie region.

Central to these times is the issue of competitiveness.As trade barriers melt away and borders and distancebecome less important, the question of what composes arelative social or economic advantage and how ourcommunity can best exploit it becomes more crucial allthe time. Viewed broadly, that means we must makesure that rules for the exchange of value with other actorsin the world make sense. From a local perspective, wemust be ready for constant correction in our internalmarkets, so that the workings of our own public servicesand our methods of achieving important goals are asefficient and productive as possible.

In 2003, the Frontier Centre moved forward on bothfronts, engaging in significant activity to explore andpropose improvements in each. The following is anoverview of the outreach and publication outputs pro-duced by the Centre’s different project areas which focuson specific policy envelopes. These include the optimisticand forward-looking Rural Renaissance Project; theEducation Frontiers, Healthcare Frontiers and ImmigrationFrontiers projects and the Winnipeg Policy Blueprint.

Peter Holle,President

“Commentaries which

combine the twin virtue of solid public policyand a presentation understandable and persuasive to the ordinary reader...”

Gordon Gibson,Author and columnist

Message fromthe President 3

FRONTIER CENTRE FOR PUBLIC POLICY 2003

Former Ontario Premier Mike Harris, set the tone inMay with a speech titled, Unleashing Canada. Hewas appropriately preceded in April by the dynamicyoung Swedish author and globalization guru, JohanNorberg, who talked about the benefits of disappearingborders. In an optimistic discussion of the prospects forour rural communities Rural Renaissance project directorRobert Sopuck’s December exposition on Lone Eagles,described how rapidly changing technology is allowinginformation professionals to repopulate our hinterland.

Specific opportunities for enhancing our region’scompetitive advantages were discussed in several Frontierforums, including Optimizing Manitoba’s ElectricityExport Potential, a July Meeting for Policy Experts seminarwith Energy Probe’s Tom Adams, and an EnvironmentNight, a shared venue with Rick Verspeek of the KillarneyBiomass Project and Bill Campbell of the Canadian CleanPower Coalition. In January, Assistant Deputy MinisterGerry Clement from Manitoba Labour provided an over-view of Manitoba’s Provincial Nominee Program, whichhas dramatically increased the amount of immigrationinto the province.

The Frontier also stimulated more public discussion oncreating higher-performing government. Foremost amongthese was a November speech by the Honourable RichardPrebble, a self-described “radical for good government”who sat at the cabinet table during the seminal publicsector reforms in New Zealand twenty years ago. In May,Roy Romanow’s former finance minister from Saskatch-ewan, Janice MacKinnon, struck the same note forstronger policy leadership with Minding the Public Purse.One detailed model for results-based service delivery,Manitoba’s Special Operating Agencies, was the theme inFebruary, courtesy of John Wilkins, a former ManitobaFinance official now working at the Treasury Board ofCanada.

“ I was very impressed with the calibre

of the speaker as well as the array of

well recognized civicopinion leaders

in attendance.”

Scott Mackay,President,

Probe Research Inc.

The most visible public services, of course, are localones and the Frontier’s focus on municipal governmentstook the stage in two presentations. In April, the City ofWinnipeg’s retiring Chief Administrative Officer, GailStephens, displayed her formidable fiscal knowledge in ANew Deal for Winnipeg? We followed that in Septemberwith David L. Littmann, chief economist of the ComericaBank, whose talk was billed as Detroit’s Comeback Index:A Model for Tracking Winnipeg’s Progress?

We were pleased to host Andrew Nikiforuk, therenowned author, journalist and critic, at our annualEducation Frontiers Lecture in October. His exciting,iconoclastic speech, Five Ways to Improve Public Educa-tion, attracted a lot of attention from both students andfaculty at St. John’s College. Three speeches dealt withhealth policy. In March, former NDP health minister LarryDesjardins agreed with us that More Money Is Not theAnswer for Better Healthcare. Johan Hjertqvist discussedthe essentials of Health Care Reform in Sweden in Juneas part of a Canadian tour arranged by the Frontier Centrewith support from the Max Bell Foundation which tookhis work to several forums in Toronto, Saskatchewan andAlberta. In November, the chairman of Genome Canada,Dr. Henry Friesen, laid out his futuristic and positive visionof Healthcare as an Economic Driver, Not a Drain.

Our events attracted an enthusiastic audience from across-section of the Prairie community. The FrontierCentre’s trademark formula for encouraging widespreaddiscussion and exposure of important ideas – skillful andeloquent exponents, follow-up appearances in a variety ofmedia outlets, the publication of well-written explanationsof the concepts and supporting research, and overlappeddistribution through electronic media like faxes and e-mails – is proving its worth. The feedback we receive ismostly positive in tone, but even occasional critiques onthe opinions advanced are valuable indicators of oureffectiveness.

Outreach 4

Johan Hjertqvist (L),Frontier’s Swedishhealth reform expert,spoke at theSaskatchewanInstitute for PublicPolicy. With SIPPFellow John Allan(C), and FC President,Peter Holle (R)– June 2003.

FRONTIER CENTRE FOR PUBLIC POLICY 2003

The Frontier Centre’s output of new publicationscontinued at an ambitious pace with a mix of longand short items that are accessed constantly andfrequently from our burgeoning website at www.fcpp.org.and mailed to supporters, libraries, and public policy leaders.

The Frontier produced fivenew policy studies in 2003:

· · · · · The Lone EaglesThe Lone EaglesThe Lone EaglesThe Lone EaglesThe Lone Eagles. . . . . Rural Renaissance project directorRobert Sopuck describes how the internet is re-empower-ing challenged rural communities and why governmentsshould pay attention to the infrastructure and policyreforms necessary to advance the trend.

· · · · · Pelletized Biofuels – A Manitoba OpportunityPelletized Biofuels – A Manitoba OpportunityPelletized Biofuels – A Manitoba OpportunityPelletized Biofuels – A Manitoba OpportunityPelletized Biofuels – A Manitoba Opportunityexamine a remarkable new fuel source increasingly invogue in Europe, one derived from grasses that grownaturally across the Prairies, and at the technology thatwill allow us to exploit this new advantage.

· · · · · Should We Close Our Borders? – Canada’sShould We Close Our Borders? – Canada’sShould We Close Our Borders? – Canada’sShould We Close Our Borders? – Canada’sShould We Close Our Borders? – Canada’sImmigration Policy Immigration Policy Immigration Policy Immigration Policy Immigration Policy challenged the belief that high levelsof immigration have harmed Canada’s economy, anddescribes the dynamics that make a forward-lookingpolicy on the intake of human capital a positive andnecessary step for our future economic prospects.

· · · · · Australia’s Dairy Reforms – Lessons for CanadaAustralia’s Dairy Reforms – Lessons for CanadaAustralia’s Dairy Reforms – Lessons for CanadaAustralia’s Dairy Reforms – Lessons for CanadaAustralia’s Dairy Reforms – Lessons for Canada.....Agricultural economist Paul Earl examines the successfultransformation of Australia’s dairy industry from a regu-lated system of supply management into a modern,competitive model, and looks at the trade pressures thatare pushing Canada to do the same for these heavilyregulated sectors of our farm economy.

· · · · · A Merit Pay Plan for Manitoba TA Merit Pay Plan for Manitoba TA Merit Pay Plan for Manitoba TA Merit Pay Plan for Manitoba TA Merit Pay Plan for Manitoba Teacherseacherseacherseacherseachers.....The University of Manitoba’s Rod Clifton recommends ourpublic schools adapt the methods of teacher remunerationbased on credentials and years of experience and incorpo-rate a performance-based element of academic results intothe process of deciding professional rewards.

The Frontier Centre augmented theselonger studies with nine Backgrounders,five dealing with the education sector:

· · · · · Educational Accountability in ManitobaEducational Accountability in ManitobaEducational Accountability in ManitobaEducational Accountability in ManitobaEducational Accountability in Manitoba focuseson the abandonment of standardized tests in Manitobapublic schools, and contrasts this loss of accountabilitywith trends in other provinces.

· What Can Be Done About the “Underfunding”What Can Be Done About the “Underfunding”What Can Be Done About the “Underfunding”What Can Be Done About the “Underfunding”What Can Be Done About the “Underfunding”of Canadian Universities?of Canadian Universities?of Canadian Universities?of Canadian Universities?of Canadian Universities? refuted the idea that ourcountry is giving short shrift to post-secondary education,and recommended changes in our methods of fundinguniversities and colleges to improve their performance.

· · · · · Gaming the System: Special Education FundingGaming the System: Special Education FundingGaming the System: Special Education FundingGaming the System: Special Education FundingGaming the System: Special Education Fundingin Manitobain Manitobain Manitobain Manitobain Manitoba critiqued the perverse incentives at theheart of provincial spending programs for disadvantagedstudents and suggested changes that would make districtsuse the funds more productively.

· · · · · The Public School Market in the NetherlandsThe Public School Market in the NetherlandsThe Public School Market in the NetherlandsThe Public School Market in the NetherlandsThe Public School Market in the Netherlandsdescribed the virtues of Holland’s system of schoolfunding and how it enhanced choice and competitionbetween public and private providers.

· · · · · Amalgamating School Boards Not An AnswerAmalgamating School Boards Not An AnswerAmalgamating School Boards Not An AnswerAmalgamating School Boards Not An AnswerAmalgamating School Boards Not An Answershowed that larger school districts are not necessarilybetter, and that smaller divisions could not only be just asefficient but in fact more efficient than unwieldy adminis-trative units.

“ Saskatchewan and Manitoba

need bold ideas to prosper and succeed.The Frontier Centre has a big opportunity to help this process and to challenge conventional thinking.”

Hon. John Messer,former Saskatchewan Agriculture and Transport Minister

Publications 5

FRONTIER CENTRE FOR PUBLIC POLICY 2003

flowing elsewhere, and of Manitoba’s level of healthcarespending with similar budgets in other parts of Canada.

Our series of Perspectives, essays on public policytopics from guest writers, advisory board members andassociates of the Frontier, remained strong in 2003. Itconsidered the importance of talks to improve traderelations, and how internationalization of our lives isalready a very established fact; the harm caused byagricultural subsidies, and the confused notion thatmarketing boards enhance food safety. Other controver-sial topics included why “Smart Growth” planningprotocols are flawed, the downside of Canada’s pricecontrols on prescription drugs, Manitoba’s labour lawsand Indian residential schools. Lastly, we marked thedebut of the Frontier’s bright new Agricultural PolicyFellow, Rolf Penner, who laid out the case for farmchemicals in Pesticides and Pumpkinheads.

All of these publications achieve wide “mind share”through mentions and reprints in the popular mediaincluding the Winnipeg Free Press, the Brandon Sun, theNational Post and other daily and weekly papers acrossthe prairies and Canada. As well they continue to bedistributed on a regular basis by fax and email to over5,000 locations in Manitoba and the world.

During 2003 the Centre’s newly revamped websitecontinue to expand its traffic rapidly. Among Canada’smost technologically advanced think tank websites, byyear end the electronic repository was recording over114,000 page views a month compared to 25,000 inJanuary.

This wide swath of intellectual energy is still character-ized by the Frontier Centre’s strict adherence to non-partisanship and to the values of fairness and civility. Butour flagship publications, our regular columns in theWinnipeg Free Press and the Brandon Sun do on occa-sion generate some lively and entertaining feedback.

Two Backgrounders dealt with healthcare,and two others with aboriginal andimmigration policy:

· · · · · The Catalan Health Care ModelThe Catalan Health Care ModelThe Catalan Health Care ModelThe Catalan Health Care ModelThe Catalan Health Care Model compared Spain’ssystem of medical administration with Canada’s andfound it superior in two respects, that it contracts withprivate providers for service delivery and that it empha-sizes preventative medicine.

· · · · · TTTTTen Myths About Canadian Medicareen Myths About Canadian Medicareen Myths About Canadian Medicareen Myths About Canadian Medicareen Myths About Canadian Medicare found theRomanow Report wanting and countered it by discussingseveral commonly held, erroneous beliefs about theeffectiveness and capability of our largest, but failingsocial program.

· · · · · Harvard Project Lessons on Self-GovernmentHarvard Project Lessons on Self-GovernmentHarvard Project Lessons on Self-GovernmentHarvard Project Lessons on Self-GovernmentHarvard Project Lessons on Self-Governmentdiscussed why the “one size fits all” system of aboriginallaw is doomed to fail, because the hierarchical structuresmandated by the Indian Act are a poor fit with the diverserange of native leadership traditions.

· · · · · An Immigration Profile of WAn Immigration Profile of WAn Immigration Profile of WAn Immigration Profile of WAn Immigration Profile of Winnipeginnipeginnipeginnipeginnipeg presented astatistical and demographic description of new arrivals andhow they differ from those absorbed by other regions ofCanada.

In addition to the writings described above, our highlysuccessful Healthcare Frontiers Project posted several itemson the topic of Swedish healthcare reforms. Among them,The End of the Beginning, Political Prestige or Commu-nity Focus? and Social Democrats Welcome PrivateCompanies into Swedish Healthcare presented thepositive side of bold health reform and continued theFrontier’s productive and effective partnership withStockholm-based health policy expert Johan Hjertqvist.

In 2003, we expanded our collaborations with otherindependent think tanks. At the end of the calendar year,on the occasion of Jean Chrétien’s retirement, we partici-pated – led by Vancouver’s Fraser Institute with anendorsement from the Montreal Economic Institute – increating a comprehensive “think piece” called Mandatefor New Leadership for a New Prime Minister. As well,we were pleased to reprint several items from the AtlanticInstitute of Market Studies, particularly part of its analysisof the Romanow Commission on healthcare.

The Frontier Centre’s output of Charticles, graphicaldepictions of public policy data, benchmarked someimportant economic values against other jurisdictions.They included comparisons of the efficiency of Canada’suse of electricity with other industrialized countries, ofAlberta’s tax levels with those in other provinces, ofManitoba’s rate of business investment with the money

“ The Frontier Centre is a fantastic forum to discuss

innovative policy options, a criticial ingredient in sound public policy

and forward looking government.”

Hon. Janice MacKinnon,Saskatchewan Finance Minister 1993-1997

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FRONTIER CENTRE FOR PUBLIC POLICY 2003

Radio commentary

In March 2003 the Centre debuted its radio commentaryprogram “Pushing the Boundaries” on GoldenWest Radio.This program is a weekly, 90-second, independent com-mentary on Prairie issues and current affairs by the Cen-tre’s policy experts that is heard throughout rural Mani-toba. The program airs Fridays at 12:10 p.m. on CFRY inPortage La Prairie and 12:55 p.m. on CFAM Altona, CHSMSteinbach, and CJRB Boissevain. The radio program isheard by an estimated 120,000 listeners weekly, primarilyin the rural community.

Community Coverage

Frontier Centre events generated a variety of mediacoverage in 2003. In September, economist DavidL. Littman appeared on both CJOB and CBC radio to talkabout his Detroit Comeback Index, and its applicabilityfor the City of Winnipeg. The CBC’s Margeaux Watthosted Andrew Nikiforuk in October to explore the con-tent of his Annual Education Frontiers Lecture, Five Taboosin Public Education. Nikiforuk also aired his iconoclasticviews on CJOB.

The release of a new Frontier publication often drawsattention. Professor Rod Clifton’s policy study on the ideaof merit pay for teachers attracted the notice of CJOB andCBC radio in January. In July, Senior Policy Analyst DennisOwens talked about the content of his report on specialeducation funding on CJOB’s Adler on Line. In Novem-ber, Rural Renaissance Director Robert Sopuck’s paper onLone Eagles brought him to the airways on two CJOBshows, Adler on Line and the Water Cooler, where he

“ The Frontier Centre for Public Policy challenges conventional thinking and even popular

opinion about important issues of public policy. This stimulation to public discussion

and debate is a critical public service to an improving society. It deserves hearty applause.”

Hon. Duff Roblin,Premier of Manitoba (1958-1967)

Media 7

David Littmann – Chief economist, Comerica Bank,Detroit – On measuring city performance, September 2003

Author Andrew Nikiforuk discusses “Five Ways toImprove Public Education” on CBC radio, Winnipeg

FRONTIER CENTRE FOR PUBLIC POLICY 2003

also appeared during the year to talk about opening upcottage country and to sing the praises of rural living.

Much of the Frontier’s exposure results from neitheran event nor a publication, but from requests from themedia for our expertise on issues in the news.

For instance, Frontier President Peter Holle talkedabout the new federal budget as part of CJOB’s hour-longforum in February, sponsored by the Chamber of Com-merce. In May, he appeared on the same station for aroundtable discussion on urban strategy, and he alsoappeared twice on Global TV in October to speak aboutthe merger of the Reform and Progressive Conservativeparties, and about property taxes. In November, Hollewas a panelist on CBC-TV’s response to the provincialSpeech from the Throne.

In January, Dennis Owens provided the Report maga-zine with some perspective on unfunded pension liabilitiesin the public sector and the problem caused when gov-ernments fail to budget for them. In April, he took part ina five-part forum on CBC radio on the topic of childprotection, where he recommended that Manitoba’s Childand Family Services consider the Kansas model ofoutsourcing to competitive providers. The Winnipeg Sunsought out the Frontier’s expertise on the hot issue ofurban reserves in September, and in October the Aborigi-nal People’s TV Network asked Owens to comment onaccountability on Indian reserves during a one-hournational telecast.

A radical for good government – Hon Richard Prebbleexplains the Labour Party reforms in New Zealandin Winnipeg, November 2003

8

The Frontier’s staff also delivered a number of publicspeeches during the year. In January, Peter Holle ad-dressed a CBC Forum in Regina on the topic of theRomanow Report on Medicare, and both the DowntownBIZ and the Canadian Public Relations Society on FixingWinnipeg’s Downtown. In the spring, he mapped outsome new policy directions for Manitoba for both theDowntown and Charleswood Rotary Clubs, and in No-vember he talked to an insurance and risk managementgroup about the City of Winnipeg’s financial exposure. InJanuary, Robert Sopuck spoke to the Keystone AgriculturalProducers about the future or rural communities. He alsotalked in February to a cattleman’s association in PrinceGeorge, B.C., and in the same month addressed a Fresh-water Fish meeting in Winnipeg on the topic of waterstewardship. Dennis Owens spoke at January forum atthe University of Winnipeg on reforming Medicare.

Janice MacKinnon –“Combat Barbie”,Saskatchewan’s formerFinance Minister– Winnipeg May 2003

FRONTIER CENTRE FOR PUBLIC POLICY 2003

A LONG WAY TO GO

2003 was a very busy year for the Frontier Centre, and theexpanding scope of our activity and our ambitious plansfor 2004 and 2005 are cause for celebration. We extendour heartiest thanks to the many unmentioned citizensand friends of the Frontier who helped out in so manyways during the past year and who supported us finan-cially and challenged us intellectually. We are especiallygratified to notice the expanding table of universitystudents who regularly volunteer to work at our publicevents; because they are the minds of the future, theirassistance is important to us.

We are optimistic about that future, but the taskahead is formidable, indeed. Perhaps after the Maritimes,the eastern Prairie region offers the greatest public policychallenge in Canada. A mature political culture, it beganwith halcyon years of boomtown growth during thesettlement. But throughout the days of the expansivegrowth in the government sector during the last half of

the 20th century, it burdened itself with levels of taxationthat slowed that rapid economic growth. In a world ofchange, many of our service delivery models have fallenbehind best practice, lacking transparency and resistant toself-correction and improvement. Our region is left withstatic population levels, where the best and brightest headelsewhere.

Those circumstances are man-made and can bereversed. The Frontier Centre’s mission – to find solutionsfor these public policy conundrums and demonstrate thatproductive alternatives are possible – is made all the moreinteresting by the size and depth of the challenge. Butwe are speaking to an intelligent and receptive audience,one that is ready for a better day, when their children andgrandchildren decide to remain to live and work in a moreprosperous, more open, expanding society. To that day,we dedicate our energies.

Financial Summary

“I truly believe that the Frontier Centre, with a larger budget,

could have a huge impact on Manitoba in the next few years.It has a rare ability to get policy makers to pay attention to its ideas. “

David Henderson, Senior Fellow,Hoover Institution, Stanford University

9

Comerica Bank VP and ChiefEconomist David Littmann talkscities with Geoff Currier, CJOB,September 2003

FRONTIER CENTRE FOR PUBLIC POLICY 2003

Statement of Operations for the year ending April 30th

2003

Income

Grants & Activities $ 370,281

Expenses

Salaries, Office Costs, projects & publications – $ 315,362.

Increase/Decrease in Unrestricted Net Assets from Operations $ 54,919.

Statement of Financial Position as at April 30th

Bank Account $ 33,645.

Receivables & Prepaid Expenses $ 13,400.

Property, Plant & Equipment $ –

$ 47,045.

Current Liabilities $ 576.

Retained Earnings $ 46,469.

$ 47,045.

Income Statement 10

Peter Holle and Council of Canadians Chairwoman Maude Barlow debate the futureof healthcare, Provincial Health Conference & Exhibition, Winnipeg, October 2003

FRONTIER CENTRE FOR PUBLIC POLICY 2003

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FRONTIER CENTRE FOR PUBLIC POLICY 2003