Canada’s milk policy is another example of the triumph of the
well-organized few over large numbers of people by using the power of
government,” says William Stanbury, Professor Emeritus, University of British
Columbia and the study’s author. “It is in the best interest of politicians to
create policies that benefit vocal groups like milk producers because it
increases their chances of election or re-election.”
Stanbury shows that as a result of these political pressures, Canada’s dairy
policy has become increasingly counterproductive: industrial milk prices have
risen faster than the overall rate of inflation, produced rising prices for milk
quotas, (the right to sell a certain volume of milk to a provincial milk board
each day) and required massive efforts by the federal government in
international trade negotiations to limit changes that would open up the
market and reduce quota values.
“Canada’s dairy policy is an example of a policy that may be ‘bad’ in
economic terms but is quite successful in political terms and so is very
difficult to change,” notes Stanbury.
He argues that a political leader who seizes this issue and is able to gain
sufficient political support to get into power and dismantle the system is
necessary to bring about major reform.
well-organized few over large numbers of people by using the power of
government,” says William Stanbury, Professor Emeritus, University of British
Columbia and the study’s author. “It is in the best interest of politicians to
create policies that benefit vocal groups like milk producers because it
increases their chances of election or re-election.”
Stanbury shows that as a result of these political pressures, Canada’s dairy
policy has become increasingly counterproductive: industrial milk prices have
risen faster than the overall rate of inflation, produced rising prices for milk
quotas, (the right to sell a certain volume of milk to a provincial milk board
each day) and required massive efforts by the federal government in
international trade negotiations to limit changes that would open up the
market and reduce quota values.
“Canada’s dairy policy is an example of a policy that may be ‘bad’ in
economic terms but is quite successful in political terms and so is very
difficult to change,” notes Stanbury.
He argues that a political leader who seizes this issue and is able to gain
sufficient political support to get into power and dismantle the system is
necessary to bring about major reform.
Comment