| Abstract: | The Caisse de dépôt et placement du Québec was created during the Quiet Revolution (la Révolution tranquille), which began on 22 June 1960 following the election of the Liberal Party whose leader, Jean Lesage, called for francophone Quebeckers to reclaim control of their destiny. Thus, promoting the economic development of Quebec was not only the Caisse's raison d'être, but also its primary mandate. This noble mission was defended by successive governments until the early 2000s. In 2008, when seemingly invincible financial institutions such as the American Lehman Brothers investment bank went bankrupt, the Caisse recorded losses of $40 billion. We argue that the collapse of the Caisse was precipitated by revolutionary actions, in the sense described by Kahn (2006), taken by the executive directors of the Caisse and the Charest government during the years prior to its downfall. In 2008, the Caisse had become, first and foremost, an investment fund manager designed to yield profits for its depositors. The downfall of the Caisse eloquently illustrates a drawback of market logic when shamelessly applied to the administration of public funds. |
