| Abstract: | Abstract. The authors consider two separate questions concerning the independence of Quebec: would Quebec improve its standard of living if it left the federation? and would political independence make it easier for Quebec to solve its economic problems? They argue that the first question, which is entangled in the ‘battle of regional economic accounts,’ cannot be answered satisfactorily and has drawn too much attention so far. So they focus on the second question, which they dissect into four sub-questions: 1/the options open to Quebec in the international economy; 2/structural adjustment and development policies; 3/employment stabilization policies; and 4/the organization of production and income distribution policy. The authors stress that the margins of latitude open to an independent Quebec would be rather narrow at the international level. But they conclude that, if the rigidities injected by the federal bureaucracy into the functioning of the federation and into the debate between levels of government persist, an independent Quebec could reap some net benefits in terms of economic development, employment stabilization, production organization and income distribution. Hence, the cost of political independence would be an increasing function of the capacity of Canadian federalism to display more flexibility in those matters in the future. |
