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Manitoba's regional development corporations : lessons for locally-based rural development Becker, David A. 1991

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MANITOBA'S  REGIONAL DEVELOPMENT CORPORATIONS:  LESSONS FOR  LOCALLY-BASED RURAL DEVELOPMENT by DAVID A. BECKER  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS (PLANNING)  in THE FACULTY OF GRADUATE STUDIES SCHOOL OF COMMUNITY AND REGIONAL PLANNING  We accept this thesis as conforming to the required standard  THE UNIVERSITY OF BRITISH COLUMBIA January 1991  • DAVID A. BECKER, 1991  In  presenting  degree  this  at the  thesis  in  University of  partial  fulfilment  British Columbia,  freely available for reference and study. copying  of  department  this or  thesis by  for scholarly  his  publication of this thesis  or  her  The University of British Columbia Vancouver, Canada  DE-6 (2/88)  w  , ^  requirements  for  an  , Iqqo  advanced  I further agree that permission for extensive  purposes  may It  be is  granted  by the head of  understood  that  for financial gain shall not be allowed without  Department  J  the  I agree that the Library shall make it  representatives.  permission.  Date  of  copying  my or  my written  ABSTRACT  Over the last century the Prairie region has undergone a transition from predominantly rural to predominantly urban settlement. By the early 1900s emphasis began to shift from rural-based primary activities to urban-based industrial activity. One product of this transition was the marginalization of rural communities.  An examination of literature pertinent to Canadian development policy reveals no single solution to rural decline. Instead there are numerous theories and recommendations which communities can adopt. One such strategy has been locally-based development. The purpose of this thesis is to contribute to knowledge concerning what locally-based organizations can do to mitigate the impact of decline in rural communities. As a case study, Manitoba's Regional Development Corporations (RDCs) are analyzed within the context of the provincial government's overall approach for rural development in order to investigate their effectiveness in contributing to locally-based rural development. This effectiveness is measured in goals, strategies and processes of an RDC as they changed over three periods: (1) 1963/73, (2)1973/83, (3) 1983/90. In each period the following questions were asked: 1.  What priorities policy?  or  objectives  were  emphasized  in  provincial  2.  What strategies development?  were used by  3.  What role was established for locally-based participation?  the province and RDCs  development  to achieve rural  Throughout the three study periods the province's regional policies remained based on laissez-faire economic principles, while the RDC approach was oriented to regional-national integration (i.e., merging of regional economic activity with national and international markets). The conclusion is that RDCs affected rural development by enhancing the abilities of local businesses participating in the provincial marketplace.  RDCs have concentrated on supporting a process for adapting to rural transition, rather than reversing forces impinging on rural communities. Lessons extended from the RDC study suggest that if efforts to enhance a rural area's competitive position in national or international markets become the principal objective for local development, the unique qualities associated with rural life may be difficult to maintain.  ii  T A B L E OF  CONTENTS  Abstract  ii  Table of Contents  iv  List of Tables  v  List of Figures  vi  1. INTRODUCTION 1.1. Problem Statement 1.2. The Research Question 1.3. Rationale for the Research 1.4. Research Method  1 1 1 3 4  2. THEORIES RELEVANT TO RURAL DEVELOPMENT IN CANADA 2.1. Introduction 2.1.1. The Macro-economic Development Perspective 2.1.2. Locally-based Development Theories 2.2. Summary  9 9 9 19 29  3. AN INTRODUCTION TO THE MANITOBAN CASE 3.1. The Background of Regional Development Corporations 3.2. The Provincial Background 3.2.1. The Rise of the United Farmers of Manitoba 3.2.2. The UFM in Power 3.2.3. Crisis and Decline 3.2.4. The Second Approach 3.2.5. Extending the Limits of Intervention 3.3. Summary  33 33 36 42 45 5^ 56 60 65  4. THE RDC IN MANITOBAN REGIONAL DEVELOPMENT 4.1. Introduction 4.2. 1963/73: The First Period 4.2.1. Events at the Provincial Level 4.2.2. COMEF and the Initial Vision of RDCs 4.2.3. Discussion of the First Period 4.3. 1973/83: The Second Period 4.3.1. Events at the Provincial Level 4.3.2. Development Strategy in Guidelines for the Seventies 4.3.3. The Impact on RDCs 4.3.4. Discussion of the Second Period 4.4. 1983/90: The Third Period 4.4.1. Events at the Provincial Level 4.4.2. Rural Development Strategy in the 1980s 4.4.3. The Impact on RDCs 4.4.4. Discussion of the Third Period 4.5. Summary  iii  70 70 70 71 73 83 87 87 90 96 100 108 108 110 114 120 127  5. SUMMARY AND LESSONS FOR LOCALLY-BASED RURAL 5.1. Summary and Conclusion 5.2. Lessons for Locally-based Development  DEVELOPMENT 131 131 135  BIBLIOGRAPHY  140  APPENDIX I:  146  iv  LIST OF T A B L E S  Table  Page  2.1 Summary of Approaches to Locally-based Development 3.1 The Growth of Manufacturing in Winnipeg, 1900-1970 3.2 Machinery and Equipment on Census Farms in Manitoba, 1951, 1961, 1971, 1976 3.3 Percentage Changes in Provincial Expenditures, by Function, 1958-1969 4.1 Changes in Revenue and Expenditure, Manitoba, 1965-1985 4.2 Summary of Programs Implemented to Support the "Stay Option" 4.3 Summary of RDC avtivities, 1974 4.4 Activities Aided by the ERDC, 1990  29 41 57 63 89 95 98 119  v  LIST OF FIGURES Figure  Page  1.1 Regional Development Corporation Boundaries 2.1 Models of Long-term Regional Development 3.1 Rural-Urban Population Distribution in Manitoba, 1911-1981 3.2 Number and Size of Farms, Manitoba, 1939-1981 3.3 Farm Operating Costs vs Incomes Manitoba, 1969-1986  vi  7 25 39 58 59  1. INTRODUCTION  1.1. P R O B L E M  Changes  in  STATEMENT  the  structure  of  Canada's  economy  will .have  impacts  on  rural  communities across the nation. Because the potential exists for many communities to face negative circumstances, it becomes important to consider what can and cannot be done to mitigate the impacts. One way to understand what alleviates or  accentuates  approaches  the impact of structural change  being  applied by  thesis  is  rural  development by  different groups  intended to extend knowledge analysing  is  to explore the variety of  to address  rural  problems. This  concerning locally-based alternatives for  the Manitoban  approach  known  as  Regional  Development Corporations (RDCs).  1.2. T H E R E S E A R C H QUESTION  The process of change discussed in the problem statement obviously involves more than provincial government and the RDCs. The federal government, trans-national companies and many other actors have some influence over the rural transition that locally-based organizations attempt to address. The influence all participants have had on rural transition and RDC  activities is beyond the scope of this  study. Within this analysis of Regional Development Corporations the focus is on the  goals  strategies  and  processes  of  the  1  RDCs  within  the  context  of the  INTRODUCTION / 2 provincial government's rural development efforts.  From the discussion of theories presented in Chapter 2, the focus of this thesis is brought down to three specific questions: 1. What priorities or objectives were emphasized policy?  in  provincial  2.  What strategies development?  3.  What role has been established for locally-based participation?  Answering  these  understanding Development  were used by  questions  in  the province and RDCs  subsequent  chapters  will  development  to achieve rural  yield  a  greater  of the approaches adopted by provincial government and Regional Corporations,  and  provide  enough  insight  to answer  the primary  research question. Before proceeding further, a definition is required for "rural development." Rural express.  development is  "Development"  implies  a concept often mentioned, but difficult to  evolution from one state, or  form, to another  more sophisticated and complex state. In the urban planning field "development" is  often associated  Therefore, planners  with movement from less to more intensive use of space. often equate  "development"  with the objective of achieving  "highest and best use" in regard to space.  Development can also refer to a capacity in individuals to increase responsiveness to their surroundings. Development in this second interpretation involves a process of learning means,  and  and  adaptation  formulating  which  responses  enhances that  take  proficiency in the  measuring  individual(s)  closer  available to their  desired objective.  In this thesis the second definition is of greater importance. The analysis here  INTRODUCTION / 3 concerns how  residents  organize  and select their approach to influencing rural  transition, rather than how real-estate is shaped and regulated. Therefore, "rural development"  will  follow  the  second  interpretation, and  will  be defined as  a  process which allows residents to become more proficient in evaluating what they can do to improve the quality of life in rural communities.  1.3. R A T I O N A L E FOR T H E R E S E A R C H  Manitoba's efforts in rural development were singled out for several reasons. part,  Manitoba  was  selected  because  of  the  author's  familiarity  with  In  that  province. But, Manitoba constitutes an interesting subject for three other reasons. First, Manitoba's history is tied to rural transition. The province has experienced a boom based on expansion and settlement of the rural west. The province has also experienced stress related to sustaining rural functions under conditions which favour  urbanization.  Because  Manitoba's  rural  residents  have  been  through  prosperity and decline, examining their planning efforts will illuminate information of  interest  to  rural  Manitoba's RDCs  development  practitioners  in  represent a cooperative effort by  other  locations.  Second,  local people to take more  control of the social-economic destiny of their communities. Thus, RDC experience relates directly to locally-based organization. The third reason is that Manitoba's RDCs  date  back  twenty-seven organizations. cannot provide.  to  years The  1963, of  lengthy  which  experience history  means with  offers  the  province  locally-based  has  accumulated  rural  development  insight which more  recent initiatives  INTRODUCTION / 4 1.4. R E S E A R C H METHOD  The method involves a case study analysis  of economic  and  of one RDC  political events  embedded within an historical  which  shaped  rural  development in  Manitoba. This analysis has been divided into four parts, each represented by a chapter.  Chapter  2 involves  development  in  the examination  Canada.  This  of a  series  series  was  of theories  split  into  relevant to rural  two  categories:  (a)  Macro-economic Development Theories, and (b) Locally-based Development Theories. The first group have inspired planning for large geographical regions and, in the past,  have  second  usually  group  of  been  applied  theories  by  emphasize  national  or  planning  provincial  which  begins  governments. at  the  The  local, or  community level, and usually apply to non-governmental organizations. (a) Macro-economic Development Theories  "Growth pole/centre" theories are examined as examples of regional development through  selective public  (1978; 1981)  support  for  intervention in labour  specified locations.  mobility  and  Thomas  government  Courchene's  non-intervention  is  examined as an alternative theory of regional development. (b) Locally-based Development Paradigms.  Various  authors  are  cited to illustrate  the  nebulous  nature  of,  "locally-based  INTRODUCTION / 5 development" (Bryant Usher, 1986). distinguish  The  and Preston,  unique  1987; Weaver  contributions  locally-based approaches  of  each  and Jessop, author  are  1986; Ross and discussed  to help  from their macro-economic counterparts. The  theories are also organized according to their emphasis on economic integration or non-economic priorities.  Chapter 3 encompasses an introduction to the Manitoban study. This introduction is split into two parts. (a) The Background for Regional Development Corporations  Two  publications  COMEF,1963)  (Manitoba  Regional  Development  Corporations,  1973;  are employed to outline the inception date, legal status, geographic  areas, and initial operating philosophy. (b) The Provincial Background  A history of economic and political events in Manitoba illustrates the dynamics leading problems  to  regional  development  in  the  province,  surrounding local participation in Manitoban  and  demonstrates  that  the  regional development have  roots established long before RDCs appeared.  Chapter 4 contains the study of an RDC  within Manitoban  rural development.  The RDC study was conducted by: a) comparing provincial and RDC documents pertaining to regional development and the contribution envisioned for rural residents during three distinct periods of time (these periods are described later in this  INTRODUCTION / 6 section); b) interviewing Mr. Leo Prince (acting director of the provincial agency most closely associated with RDCs), and Ms. Marie Louis van Schie, (acting manager of one RDC) to supplement the understanding of what relationship exists between these institutions, how each interprets development, and how each interprets the role for rural residents in development.  Provincial and RDC by  searching  documents were obtained directly from these institutions and  libraries in both of Winnipeg's  concerning the RDC  universities.  However,  information  approach is scarce and scattered throughout many locations.  There are seven RDC regions within the province (see Figure 1.1), and resources available for this thesis  did not allow for research in each region. To gather  data required focusing on one RDC  in particular. East-Man was selected because  this author has previous knowledge of the region and has dealt with East-Man's RDC office.  The twenty-seven years of RDC history have been divided into three periods: (1)  1963-1973; (2)  1973-1983; (3)  introduction of RDCs  and  ends  1983-1990. The first period begins with the  with  what one group  of government  (M.O. Harvey and Associates) considered a significant change in RDC  In  1983  the  Manitoba  Department  of  Business  Development  advisors  strategy.  and  contracted the consulting firm of M.O. Harvey and Associates (1984) to  Tourism  INTRODUCTION / 7  Figure 1.1 RDC BoundarlM  •ouro* Manitoba'* loonomio Dawtlopwnt Network, Jww 1889.  INTRODUCTION / 8 undertake a review of the Regional Development Corporations in Manitoba. The purpose of this review was to: 1. Assess the performance of RDCs since their introduction. 2.  Obtain recommendations to improve the effectiveness of the corporations in the light of anticipated future socio-economic conditions.  Harvey  and Associates  argued that a change  in regional policy came in 1973  with the introduction of a government publication known as Guidelines for the Seventies. Guidelines was identified as the policy statement which turned provincial government and RDCs away from planning based on "growth pole" theory. Thus, a second period had been identified. The end of this second period was marked by the introduction of the Harvey and Associates report.  The 1983/90 period encompasses events which occurred following the Harvey and Associates report's introduction, and was added to bring more recent events into the study. Since the Harvey and Associates report managed to put a great deal of information into a well structured format, and represents an important review of the RDC approach, information collected for this thesis has been fitted to their chronology. In following the authors' original chronology, conclusions made by that team concerning RDC activity during each period also provided starting points for analysis in this thesis.  The final chapter contains presented highlighted  to by  answer  a summation  the primary  the analysis  of the analysis,  research  are extended  locally-based rural development in general.  question. into  In  lessons  and a conclusion is addition, experiences which  contribute  to  2. THEORIES R E L E V A N T TO R U R A L D E V E L O P M E N T  IN  CANADA  2.1. INTRODUCTION  To understand what Regional Development Corporations have achieved requires an appreciation of the issues surrounding regional and locally-based development in Canada.  In  this  chapter  development literature, and  the  intention is  to establish  to  some  examine  a  range  specific questions  of  views  in  for examining  locally-based rural development in Manitoba.  2.1.1. The Macro-economic Development Perspective In  Canada residents have accepted a capitalist, or laissez-faire, system as the  "rule book" for exchange. Critics can dispute whether or not residents actually "accept" this system, or whether the Canadian economy can even be considered purely capitalistic. All such issues are worth discussion, but for the purposes of this thesis it is sufficient to agree that citizens do accept the system, and that it is fundamentally a laissez-faire economy.  By definition a laissez-faire economy is one in which individuals and governments agree not to tamper with the basic dynamics of market operation. For regional development the implication of adhering to a capitalist system can be viewed as follows. In attempts to meet the needs of marginalized groups, governments have made the decision not to transform free markets into some alternative system. Because of the decision not to Change the market system, regional policy makers  9  THEORIES RELEVANT  TO RURAL DEVELOPMENT  IN CANADA  / 10  have often seen stretching market activities into marginalized areas as the only option.  Government  policy  makers  are,  therefore, willing  to  influence where  economic activities take place, but resist influencing how they take place.  In  the  1960s  makers  act  on  "growth  poles"  "growth where and  poles"  and  activity  "growth  "growth  occurred.  centres"  In  appeared  discussions  of  to  help policy  regional  planning  centres" were mentioned frequently, but were not  always clearly explained.  Francois Perroux first introduced the term "growth during  the  "...from  1950s.  which  Perroux  centrifugal  (1964:27) forces  pole" in economic literature  described the  emanate  and  "growth  pole"  as  a  firm  to which centripetal forces are  attracted." His reference to centripetal force was depicted as labour and materials being attracted to the firm's uses,  such  as  tourism,  being  location, while centrifugal force referred to other excluded  from  the  site  because  of  the  firm's  activity.  Perroux tried to convey the notion that a growth pole existed in two types of space. The first, called "banal" space, can be interpreted as geographic The second, economic space, was  not intended to have spatial  space.  limits. Instead,  economic space encompassed the components related to a given industry (Perroux, 1964:27). For example, a furniture manufacturer  would be linked to suppliers  (labour markets, lumber mills, a supplier of fasteners), and clients (retailers, and wholesalers).  From  Perroux's  perspective  it  was  not  important  whether  these  economic activities were neighbouring or distant. Darwent (1969:5) points out that  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA / 11  Perroux also introduced the term "propulsive industry." Darwent highlighted three traits Perroux associated with "propulsive industries": 1. that the firm/industry was highly interconnected, or manj' other industries;  was  associated  with  2.  that the firm/industry dominated trade with the interconnected industries;  3.  that size was dominance.  significant  -  a  large  firm/industry  would  have  more  These traits relate to economic relationships, and were not necessarily of value when  trying  industries industry  in  to  assess  specific  spatial  attributes  locations,  but  of  initially  industry. that  in a given region would attract growth  observed was  that  growth  Perroux  evaluation to that  did  did  evaluate  not  suggest  region. All Perroux  would occur within economic space. The focus on  economic space was the distinguishing characteristic of Perroux's "growth pole".  In  later work Perroux (1970:94) began to add more spatial implications to his  analysis, same  "the bitter truth is this: growth does not appear everywhere at the  time; it becomes  manifest  at points  or poles of growth,  with variable  intensity; it spreads through different channels, with variable terminal effects on the whole of the economy." From his initial non-spatial concept, Perroux added the  idea  that  economic  activity  requirement for stimulating  concentrated around  growth  was  "poles"  of  growth.  a propulsive industry large  The  enough to  attract new clusters of industry into the region (Ibid. 101). This concentration was  referred  to  agglomeration" stimulating economic  as  suggested  spatial space  "territorial agglomeration", that  the  "growth  and  pole"  introduction of "territorial was  considered  capable  of  concentration. The examination of industrial performance in  was  beginning  to  mingle  in  Perroux's  mind  with  geographic  concepts. Given this mingling there is little wonder that "growth centres" have  THEORIES RELEVANT TO RURAL  DEVELOPMENT  frequently been considered equivalent to Perroux's  "growth  IN CANADA  / 12  pole." The two are  actually significantly different.  Growth-centres centralized  are  defined  economic  infrastructural  as  activity  services  that  locations,  such  capable  of  support  industrial  as  providing  cities, the  having labour  expansion  geographically force  and  the  (Mathews, 1983:  43;  Bradfield, 1988:57).  Friedmann and Weaver (1979:126) state that Lloyd Rodwin (1963) was the first North American author to associate the non-spatial "pole" with conditions for its appearance  in  geographic  space.  Rodwin  claimed that  urban  industrial  growth  could be diffused to less industrialized communities by concentrating investments in locations selected on the basis of some criteria of "growth potential." Rodwin was  suggesting that the location of economic expansion  could be planned and  induced. When "growth centres" began to appear in American planning research the  emphasis  was  on  diverse,  but  spatially  co-ordinated,  economic  activities.  Berry's (1973:48) study of growth centres in the United States provides a good example: By "growth centers" or "centers" is meant a complex of one or more communities or places which, taken together, provide or are likely to provide a range of cultural, social, employment, trade and service functions for itself and its associated hinterland.  In  Berry's  industry.  research Instead,  the emphasis  the  emphasis  was was  no on  longer  on  communities  a  particular  connected  to  propulsive form  concentration of activities capable of sustaining that system of communities.  a  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  / 13  Some of the prominent issues Friedmann and Weaver found in their examination of growth centre theory were: 1. optimal city size - this debate concerned whether large cities were growth efficient or, whether smaller cities were equally capable of generating self-sustaining growth; 2.  spatial diffusion of growth - concerned how benefits flowing from activity in a growth centre rippled through surrounding communities. This rippling is often called "spread" (benefits flowing out from the growth centre) and "backwash" (benefits flowing back to the growth centre from the periphery).  The  issues  associated  with  growth  centres  are  similar  to  the  traits  Perroux  originally associated with propulsive industry in so far as both involve size and interconnectedness. detectable  Growth  requirements  centre  supported  issues,  however,  economic  implied  activity,  and  that that  a  series once  of  these  requirements were replicated in targeted locations predictable spatial development would occur. A link was assumed between economic and spatial activity, and this economic-spatial link separates growth centre theory from growth poles.  Friedmann (1973:10)  pointed out that the growth centre concept had immediate  appeal in regional planning because it implied that scarce resources could yield larger economic benefits when applied in centres deemed to have potential for growth. Viewed another way, the theory implied that targeted investment would lead to growth throughout a region. Another attractive quality of growth centre theory was the idea that private enterprise remained intact. Friedmann (Ibid. 10) cautioned  that  while  the  idea  of  planning  growth  centres  had  appeal, little  empirical evidence of its validity existed. In concluding his review of growth pole and growth centre theories, Darwent (1969:23) also stated that:  ...this lack of evidence is serious since it means that while we observe that cities grow, and because of their growth attract more firms, investment and people, and while we have some idea about  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA / 14  how growth is transmitted, we have little evidence except post facto to indicate how growth is best initiated... We therefore have no' firm theoretical grounds for planning growth at particular locations.  Despite the lack of empirical verification, the Department of Regional Economic Expansion  (DREE)  represents  one  example  of  growth  poles/centres  used  in  Canadian regional planning. Initiated in 1969, DREE became the first Canadian agency  with the mandate  for a co-ordinated, nation-wide  development. Lithwick (1986:255)  approach to regional  states that within their first year of operation  DREE staff had mapped a hierarchy of Canadian cities and selected twenty-three "special areas." The "special areas" referred to by DREE were defined as centres within  lagging  "substantial  regions  which  improvements  could  be  were made  areas  was  expected to  attractive  to  industry  to the infrastructure and  currently available in them" (Francis special  made  once,  social services  and Pillai, 1972:54). Development based in  assist  not  only  the  specific  targets  but  also  neighbouring towns and villages.  DREE  staff were following a mix of growth pole and growth centre concepts.  DREE staff targeted particular industries as the engines to create new activity, examined  factors  manipulate  which  these  factors  attracted in  industries  order  (Mathews, 1983:107). DREE's strategy by  assuming  that  DREE's strategy to locations  particular  firms  to  to  entice  a  location, and  industry  into  a  then tried to lagging  area  crossed into Perroux's growth pole notions were  at  the  centre of  economic  activity.  also followed growth centre theories since industries were sent  which DREE  felt were dominant  amongst the hierarchy of local  communities. Staff assumed "spread-effects" would start economic activity rippling  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  / 15  throughout the hierarchy.  Numerous DREE's For  authors  impact  example,  have  was  reviewed DREE's  questionable  Courchene  efficacy  (Lithwick,1978;  (1978:165)  notes  and  the consensus  Savoie,  that  is  that  1986; Courchene, 1978)  DREE  received  criticism  for  targeting locations which the provinces themselves did not consider catalytic. The implications of Courchene's comment are that federal and provincial criteria were divergent,  and  that  Courchene (1978:165)  DREE  was  selecting  targets  without  provincial  input.  also identifies a lack of co-ordination between DREE and  other federal agencies. The Industrial Development Bank, then a subsidiary of the Bank of Canada, focused lending activities primarily on areas not designated by DREE.  As  a result, industries could locate almost  anywhere and receive some  subsidy. DREE's locational incentive was neutralized.  The  DREE  approach  is  described  by  most  sources  as  ineffective. Lack  effectiveness, however, does not detract from DREE's value development  strategy  based  on:  (a)  direct  public  as  intervention  of  an example of as  a  tool for  development, and (b) the belief that growth can be brought to all parts of all regions.  In  light  of  the  lack  of  success  with  DREE's  interventionist  approach  an  alternative! referred to as "neoclassical adjustment theory," (Polese, 1981:519) has received theory  attention. refers  to  Exemplified letting  free  by  Thomas  market  Courchene  dynamics  direct  (1978; 1981) industrial  adjustment development.  Courchene contends that existing public interventions actually exacerbate regional  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  / 16  disparities.  Adjustment theorists like Courchene (1981:508) differ from interventionists in their interpretation of regional disparities: the fact that regional disparities exist does not imply, as is frequently suggested, that there also exists regional disequilibrium. Indeed the opposite is true...equilibrium merely describes a state that is selfreinforcing. We need not approve of the characteristics of the regional equilibrium, but we should not deny its existence.  Growth centre theory was  interpreted by institutions  regional  be  differences  could  minimized  by  such as  government  DREE  action.  to mean Courchene  (1981:512) states that differences amongst provinces need to exist: To attempt to homogenize Canada on the regional economic front in the face of this [regional] diversity will be tantamount to flouting the underlying laws of economics and will tend to create national economic disparity relative to our trading partners.  Courchene (1981:511)  argues that the global economic order is changing. To be  competitive, Canada must de-emphasize regional disparities and focus on building a  healthy  national  economy.  The  essence  of  Courchene's  argument  is  that  propping up declining activities in lagging regions keeps a surplus of resources in low-productivity industries. Such mis-allocation simultaneously reduces the resources available  for  new  and  more  productive  endeavours  elsewhere.  The  result  is  reduced national economic efficiency.  As  an  example  of mis-allocation  Courchene  (1978:154)  wage inflexibility. Referring to Robert Lacroix  (1977),  discusses  the effect of  Courchene identifies two  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  / 17  causes for wage inflexibility. First, the federal government pays employees almost everywhere the same wage. Federal pay scales  are not sensitive to the going  wage for labour in the local private sector and often distort market conditions. Therefore,  high  public  sector  wages  are  blamed  for  creating  unrealistic  expectations and an outcry for parity in other sectors. Second, minimum wage legislation  reduces the numbers  of people firms  can  afford to employ.  When  facing decreasing demand for regional products, local wages resist adjustment and unemployment individuals Lacroix's  follows.  are  If  wages  unemployment  argument  do  or  not  move,  out-migration.  then  the  Courchene  only  options  (1978:155)  by focusing on breakdown of the out-migration  for  extends  mechanism.  Existing  government interventions are compared to bribing people to remain in  regions  with  designed  to  low-productivity defer  the  jobs.  Generous  provinces'  costs  federal  for  transfers  supporting  and  assistance  unemployment  impede  out-migration by counteracting the incentive for labour mobility. Labour mobility is not  presented  poorer regions poorer  regions  as  a  panacea, but  and shifts come  mobility  labour to regions  closer  to  supposedly  reduces  the burden on  creating new jobs. Blossoming and  equilibrium  and  the  country's  international  competitive position is improved.  The principal difference between growth centre and adjustment theory is that the former  makes  allowances  for  direct  government  participation  in  industrial  development, while the latter diminishes the public role in favour of the market's "invisible hand." Although growth centre and adjustment theories explain events in  different  ways,  and  prescribe  different  actions,  both  stress  industrial  organization, the marketplace, and national economic management. Both approaches  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  / 18  also minimize concerns about impacts on individual communities in their efforts to organize  economic growth.  activity over  large  Because  geographic  both of these  areas,  and because  approaches  concern economic  they discount  local impacts,  they will be referred to as Macro-economic Development Theories.  A  problem  has  emerged  from  the  preoccupation  with  economic  activities  in  macro-economic development theories. Development has been related primarily to the expansion  and growth  of production measured over some  geographic  area.  Several authors have highlighted what they consider incongruities between theories rooted in economic analysis, and assumptions  about enhancing the quality of life  (Friedmann,1981, Ross and Usher,1986; Weaver  and Jessop,1984).  To illustrate  the incongruity one need only consider how the wealthiest countries or regions of the world are becoming the most polluted and environmentally ravaged. Another example  of  absurdity  Friedmann (1981:8), becomes a greater  in  the  economically-oriented  who points  approaches  out that crime increases  threat in society, more money  is  is  provided  our GNP.  by  As crime  spent on home security  systems, enlarging police forces, expanding the justice system, hiring lawyers, etc.. These events increase cash flows  in the economy, thus  providing more people  with more income, but at what cost to society?  Authors  critical  planning  must  of macro-economic encompass  more  development than  economic  theory  argue  activity  that  before  development claiming  any  connection to quality of life can be made. These authors also tend to emphasize the local implications which macro-economic development theories discount. Because of the local perspective, these authors have been grouped in this thesis under  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN  CANADA  / 19  the title Locally-based Development Theories.  2.1.2. Locally-based Development Theories The first distinctive characteristic of locally- based development is drawn from Coffey  and  development  Polese as  (1981:1).  a process  These  authors  define  local, or  adopted and implemented by  the  locally-  regional  based,  residents  which is founded on the talents, initiative, and knowledge of regional residents. An important aspect of locally-based theories is, therefore, that action comes from within  the  community  or  region  being  observed, rather  than  directed by  an  outside agency.  Another  trait  economic  common  strategy  to  to the  locally-based political  theories  and  social  has values  been the of  effort  residents  to in  link small  territorial units. Friedmann (1981:5) presented the objective of locally-based efforts as follows: to make steady and continuous progress towards an equalization of access to the basis of social power. Reference is to such bases as knowledge and pertinent skills, social and political organizations, instruments of production (including access to good health), relevant information, social networks, and financial means. Improving a household's access to them will enhance its ability to pursue its own objectives in cooperation with others. In this view poverty is not simply a condition of low income. It is substantial inequality in access to the means for an autonomous life within the community, [original emphasis] Friedmann has observed that efforts to improve quality of life encompass more than  economic  factors.  Few  locally-based  theorists  would  deny  that  economic  considerations have value in development theory. However, economic considerations are not assumed to be the end in itself. Put simply, locally-based theories stress  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA / 20  that people work to live rather than living to work. Increasing opportunities to find a livelihood is a necessary activity, but, as Friedmann's statement indicates, not sufficient to improve the quality of life.  While  the "locally-based" concept (action from within communities)  is relatively  straight forward, countless diverse strategies have been established to achieve the broad non- economic objectives. Despite differences in detail a basic similarity can be  discerned. Strategies  communities  either  with the existing  adopt  economic  principles  and  economy, or identify problems  integrate  small  with the market  system and strive to decrease dependency on the mainstream. In this section the work  of  several  authors  will  be  introduced  to  illustrate  the  variety  of  locally-based development theories being explored. a) Regional-National Integration Bryant and Preston (1987:54) describing  a  conventional  furnish a good starting point for this section by  interpretation  of  locally-based  development.  Their  interpretation begins by stressing the place for local approaches within a national system: The objectives of a theory or conceptual framework for local economic development initiatives should not be to replace the more traditional views and strategies of regional development. Rather, it must complement these traditional approaches, and it must be regarded as one essential part of a broad-based foundation upon which local economic development must rest ...Furthermore, such a framework must provide a link between the local and broader regional-national context.  The authors base their approach on the assumption that a national development system  exists  in which small  communities  can find an  ancillary  role.  Having  THEORIES RELEVANT TO RURAL DEVELOPMENT outlined this  regional-national  context, Bryant  and Preston  IN CANADA / 21 (1984:62)  provide a  four stage description of local economic development: 1.  emergence of local entrepreneur ship;  2.  growth and expansion of local enterprises;  3. 4.  maintenance of local enterprises under local control; and attainment of a locally autonomous control structure for the local business sector.  To  organize  local action for this  process  the authors  draw  from Coffey  and  Polese (1984) to suggest that development can be organized into three categories: 1. animation - involves communities organizing to undertake development; 2.  information - involves how local organizations bridge gaps between local and regional/national markets;  3.  finance - concerns initiatives.  Bryant and Preston's the  catalyst  for  how  communities  improve  access  to capital  for local  approach focuses on organizing commercial development as  community  revitalization.  But,  the  authors  do  add  that  development should be "appropriate" for the community. The defining attribute of an  "appropriate"  development  process  is  seen  as  community  participation  in  ensuring that actions associated with development are guided by local values and priorities (Ibid.55). New activities are supposed to reinforce, rather than detract from, these values  and priorities. Because their strategy  and priorities, the authors  believe their strategy  reinforces local values  increases  the ability of local  residents to reach beyond economic issues and solve other problems. While the authors do not refer to Friedmann their article implies that along with economic revitalization, regional-national integration is intended to increase local access to social  power.  But,  a  significant  limitation  remains.  Local  control  is  always  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  tempered by their insistence that the development strategy  / 22  must dovetail with  national policies and priorities.  The strength of Bryant  and Preston's  work  is their pragmatism.  The authors  suggest that communities can find all the ingredients for prosperity within the existing regional economy, and present a model which communities can use to participate  with  the  regional  economy.  Bryant  and  Preston  step  back  from  strategic planning to describe the context in which communities should view their planning. Then, by merging, their regional perspective with Coffey and Polese's advice  on  assessing  local  economic  strategies  that  development, small  the  communities  authors may  present  use  a  framework  to achieve results  for in a  relatively short period of time. b)Territorial Integration  While  Bryant  re-establishing  and  Preston  suggest  that  locally-based  a role in the national marketplace, Weaver  present a different interpretation. These authors and  industoy  into  a  global  network  means  argue  development  involves  and Jessop (1984:4)  that expansion of trade  governments  and  individual  communities have less influence over national and regional problems: The imposition of a corporate model of economic organization onto the international economy was the determining factor in establishing global patterns of production, making possible a radical reordering of the production process itself. There was a fragmentation of the stages of production and their geographical distribution among those areas which offered particular strategic corporate advantages. Traditional regional specialization, with all the factors of production assembled in one place, gave way to a new technical division of labour...Regions were no longer identified with a particular industrial sector but rather according with their role in the production process  THEORIES RELEVANT TO RURAL DEVELOPMENT The authors  IN  CANADA  / 23  assert that commercial firms have sought independence from local  and national influence. To this end, fragments  of the production process were  distributed  jobs,  around  the  world.  Highly  skilled  such  as  research  and  development, were likely to remain in urban centres because that was where the specialized labour  resided. Less  skilled tasks  related to mass  production were  "footloose." Locating mass production facilities was said (Ibid.6) to depend upon a new set of factors: local political stability, minimal regulation, low taxation, low unionization and low wages:  These dramatic changes in the economic organization of global industries have been responsible for the increased dependence and integration of what in earlier times had been relatively closed, self-sufficient national and regional economies. Many places are now organized by a few chosen regional centres in the world economy. They perform specific functions within the broader economic order and there is little room within this scheme for independent action.  To explain this negative series of events Weaver and Jessop (1984:18-21) identify three traditional approaches to regional development: 1. Market Expansion - a classic free- market model allowing market mechanisms to allocate factors of production among industries and geographic areas; 2. The Development State - refers to co-operation between business, labour and the state. Most important components are entrepreneur ship, government intervention in markets to insure full employment, and national accounts as the yard stick of economic performance; 3. Command Planning - the fully centralized model of development. A strong central government or, more ominously, trans-national corporations control all aspects of allocation and production.  Adherence to any of the three approaches contributes to the dilemma Weaver and Jessop describe by creating an environment which favours organizations that  THEORIES RELEVANT TO RURAL DEVELOPMENT flourish  in  global  trade,  and/or  reduce  the  IN  contributions  CANADA from  / 24  individual  communities.  Like Bryant and Preston, Weaver and Jessop describe a global environment in which locally-based efforts are low level supplements to a larger economic system. Unlike Bryant and Preston they see this global system as part of the problem facing small communities. Each level in the global environment harbours different institutions  with  different relationships  to  the  production process.  The  various  levels and institutions appear to co-exist like parts in a Russian doll. But, the authors  caution that  local/regional organizations  have  little impact  on decisions  made at higher levels. Instead, it is institutions at the trans-national level which shape  the  regional  environment.  Weaver  and  Jessop  do  not  suggest  that  regional/local planning is impotent in the face of globalization, but that some local organizations  are  pursuing  solutions  in  fundamentally  counter-  productive  approaches. Their fourth approach, called "communal co-operation," represents the antithesis  of the previous  three approaches.  Rather  than  integrating  with the  global system this approach calls for selectively minimizing external linkages, and increasing  regional  co-operation improving  self-sufficiency  displacing  (Ibid.27). The  multi-national  their well-being by  commerce  authors but  do not  envision  co- ordinatirig exchange  see  some  communal  communities  within smaller territorial  units, rather than struggling in the global market place.  Ben-David various  Val  (1983) uses simple graphics  development approaches. His  to illustrate the spatial impact of  representation of functional integration and  decentralized territorial integration helps  convey  the outcome of traditional and  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA / 25  alternative approaches as Weaver and Jessop portray them (See Figure 2.1).  The  strength  of Weaver  and Jessop's  work  is  in relating local problems to  globalization. While Bryant and Preston state that local groups should plan with regard for the policies and priorities of higher level organizations, Weaver and Jessop clearly identify the influence of higher  levels  as  a limitation to local  action.  Figure 2.1  Models of Long-term Spatial Development  ®  Functional Integration  • Emphasis on exchange economy. e Development benefits through intraregional linkages fostered by dispersed investments e Diverse functional linkages lo other regions.  Sourc* Ben-Oavid Val.WBS.  Decentralized Territorial Integration e Emphasis on use economy. e Development benefits through •ubregional self-sufficiency fostered by locally determined dispersed investments. * Selective closure.  THEORIES RELEVANT TO RURAL DEVELOPMENT The  weakness  of Weaver  and Jessop's  work  is  that  IN CANADA  they  distinguish  / 26  several  "traditional" strategies in their critique, yet offer only a brief description of one alternative  for  localty-based  development. Their  alternative  is  not discussed  in  depth and, therefore, appears extreme, ill-defined and difficult to attain. c) Formal-Informal Economic Balance. Ross and Usher (1986) offer yet another perspective on locally-based development. These authors examine the relationship between "formal" and "informal" economic activity, and the preference for formal activity in development policies.  Ross  and  Usher's  description  of formal  activity  closely  resembles  how  many  people describe conventional economic principles. The basis of the formal economy is assumed to be a wage economy involving two sets of actors - producers and consumers.  Producers  and  consumers  are  considered mutually  exclusive  groups.  Ideally, there exist countless numbers of producers and consumers, each motivated by their own interests and in competition with one another. The market place is viewed as competition,  an impersonal arena for activity between the actors. Specialization, large  scale,  and  hierarchy  are  identified  as  the  inevitable  consequences of pursuing the formal economy (Ibid.26-28).  The informal economy is presented as  a network for meeting essential human  needs the formal economy can not meet. However, the authors do not suggest that  informal economies  are merely the opposite of their formal counterparts.  Examples of informal activities Ross and Usher (1986:31-33) provide are: pre-industrial economies - small scale subsistence agriculture, fisheries, hunting or trapping. These activities involve families or other kinship ties. What ever they produce goes first to domestic need and subsistence marks  THEORIES RELEVANT TO RURAL DEVELOPMENT the primary motive marketable product;  for  these  activities.  Only  the  / 27  IN CANADA surplus  becomes  a  neighbourhood or mutual-aid economies - goods and services are produced through well established links between households. Exchange is typically non-monetary and established in order to provide goods and services which donors can furnish and other households need. the alternative economy - a socio-economic system which typically exists in opposition to the predominant social environment. Amish and Hutterite colonies are given as two examples. Weaver and Jessop's communal cooperation' would also Fit into this category.  The  differences between formal  and  informal  are  defined as  tendencies  seen  relative to one another, rather than polar opposites. For example, the authors identify the impersonal quality of the formal marketplace as its strength, while the informal economy's strength is based on familiarity.  In  theory, the formal  market  operates  according  to merit. Price  motivate purchases rather than family obligations or coercion. A  and  quality  labourer's skill  and performance attract employers rather than personal attributes. In striving for a perfect market, nepotism and other forms of interference are minimized, and individuals achieve more equal standing. However, the perfect market is illusive, and  this  is  why  the authors  believe an  informal economy  has  a valid role.  Because the informal economy is based on the assumption that people know one another, and  are  willing  to allow  for individual capabilities  and incapabilities,  people can attain things which they are not equipped to compete for in the formal  marketplace. Tasks  are undertaken for people known  and relied upon.  "And because work and produce tend to be performed and distributed locally and the effects of the enterprise felt locally - there is much more understanding and involvement in the control over what is going on" (Ross and Usher, 1986:49).  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN  CANADA / 28  Ross and Usher try to demonstrate that the 'economy' is not exclusively formal or informal, but held together by both dimensions. Formal and informal economies are only authors  distinguished have  by  the relationships  no quarrel with  they  people using  promote between people. The  either economy. The problem the  authors (1986:53) perceive in "development" is that people have given too much weight to the formal dimension:  A century ago, a much higher proportion of economic output was derived from the informal economy, this shift is also associated with the transformation from a rural agricultural economy (and in the North, a hunting and gathering society) to an urban industrial one. We commonly think of that process as modernization and the result as economic development. Conventional economic development theory claims that any substantial increase in national and per capita output requires a shift from informal to formal economic relations. According to conventional theory a primary position must be allocated to: the market, industrial organization and money.  When the economy is shifting, the authors point out that the standard solution is either public investment to stimulate employment, or providing social assistance to those suffering from the shift. In hard times people have been taught to put their faith in mechanisms of the formal economy. It is during hard times that the authors believe the informal economy could provide the most help. Ross and Usher  (1983:102)  present  a  better  balance  between  the  two  economies  as  "development." "The ultimate and proper task of economic policy should be to determine the mix of formal and informal activity a society wants and provide incentives and encouragement required to support this balance"  THEORIES RELEVANT TO RURAL DEVELOPMENT 2.2.  In  IN CANADA  / 29  S U M M A R Y  this section Bryant  and Preston, Weaver  and Jessop, and Ross and Usher  were cited to highlight diverse and contrasting theories of local-development. Their contributions are summarized in Table 2.1.  Table 2.1 Summary of Approaches to Locally-based Development Authors Interpretation of Development Development Involves looal Input, but focuses on linking local commercial activity and the regional-national eoonomy.  Bryant and Preston  Weaver and Jeeeop  Development involves small communities increasing their eelf-relianoe and pulling away from the mainstream economy.  Roee and Usher  Development Involves expanding the informal dimension In locally-based planning, and in government poliolee.  Oauncey  Development Involved a process of social tranaformation in which locally-based development was only one stage.  This chapter has introduced material which contributes to: 1. some sense of the difference between macro-economic paradigms; 2.  and  locally-based  understanding that a range of theories and strategies can be placed within macro-economic or locally-based categories.  The alternatives outlined in this chapter share some similarities but cannot be considered  interchangeable.  foundation for growth  We  have  seen  that  economic  analysis  was  the  centre and adjustment theories. Both addressed industry,  public intervention in allocating resources, and how intervention or non-intervention  THEORIES RELEVANT TO RURAL  DEVELOPMENT  IN CANADA  / 30  would benefit residents of the nation. Implicit in these theories is the assumption that by focusing on the relationship between people and the marketplace solutions will be found for whatever problems are perceived in lagging regions.  Each locally-based theory described in this chapter emphasized the importance of having  local  groups  increase  their capacity  for  assessing  and  managing  community's relationships with the marketplace. Some of the strategies  their  (such as  Bryant and Preston's) proposed only moderate changes, but others (such as Ross and Usher's)  suggested that communities have to utilize resources found outside  the limits of the laissez- faire marketplace. Whether moderate or sweeping change was recommended, the objective of each locally-based writer was some measure of local  control  over  relationships  between  communities,  marketplace. Implicit  in this objective were assumptions  entails  the  more  than  material  goods  furnished  or  regions,  and  the  that: a) quality of life  through  free  markets,  b)  individuals cannot remain passive, and expect the "invisible hand" to satisfy their quality of life concerns.  All of the theories introduced in this section emphasize some  unique goal for  development. Growth centre theory emphasized the ability to channel growth into specific locations. Adjustment theory emphasized achieving more efficient allocation of  resources.  Ross  and  Usher  stressed  decreasing  dependence  on  laissez-faire  markets. None of these theories is entirely objective. Underlying each is a set of beliefs, or values, which explain why the goal associated with that theory is the desirable goal  to pursue. Any  involve specific assumptions  policies based on one of the theories will also  about what is desirable in development. As Mathews  THEORIES RELEVANT TO RURAL DEVELOPMENT (1984:54) system"  stated,  all  the author  policies meant  involve  that  a  any  "goal-value  policy is  IN CANADA  system."  By  / 31  "goal-value  an attempt to achieve a goal  deemed legitimate and desirable when assessed using a specific set of values.  Recognizing that theories and policies are subjective, an effort must be made in the  analysis  underlying  of  Manitoba's  relevant  policies.  rural  development  Examining  the  to  illuminate  "goal-value  system"  the  emphasis  guiding  rural  development in Manitoba is the reason for adding the first subsidiary question: 1. What priorities development policy?  Macro-economic  and  or  objectives  locally-based  theories  were  emphasized  differ  not  in  only  provincial  on  what  benefits  economic activity can provide, but also differ on where control over development activity  should  rest.  Courchene  connections to market activity  recommended  that  governments  and allow individual firms  prevailing conditions. Locally-based  reduce  their  to respond freely to  writers were recommending  that communities  gain some measure of control over factors that govern economic activity. Bryant and Preston, for example, recommended that governments and local organizations share control, while Weaver and Jessop recommended that regional residents alone should influence what interacted with their territorial economy.  The differences concerning where control over economic activity should rest create tension between macro-economic and locally-based theories. Exclusive adherence to a  macro-economic development theory will minimize tolerance for local control.  Adherence to Weaver and Jessop's territorial integration would minimize tolerance  THEORIES RELEVANT TO RURAL DEVELOPMENT  IN CANADA  / 32  for control by exogenous actors. Any compromise on one side erodes the influence of  that  group.  locally-based  Given  the  possible  theories, examining  tensions  between  macro-economic  the balance of power amongst organizations  and in  Manitoba will provide additional insight into rural development in that province. To  illuminate  the  distribution  of  influence  the  second  and  third  subsidiary  questions are added: 2. What strategies were used to achieve rural development? 3. What role has been established for locally-based participation?  In  this  chapter  an  examination  of development  theories  has  highlighted  two  categories of development theories, and several alternatives within each category. The differences among  these alternatives  were presented in order to illustrate  how particular values underpin development policies, and how influence amongst institutions can be distributed in different ways. In  order to disclose the value  content of policies and balance of control amongst institutions in Manitoba, the three subsidiary questions were formed.  3. AN INTRODUCTION TO THE MANITOBAN CASE  This chapter is divided into two sections. The first section outlines what an RDC is and why RDCs were initially established. The second section provides a review of significant trends in Manitoba's economic history. Some understanding of the province's past is required in order to understand the dynamics into which RDCs have been placed.  3.1. THE BACKGROUND OF REGIONAL DEVELOPMENT CORPORATIONS  A report from the RDCs (MRDC,1974:3) stated that seven have been established since 1964:  Pembina V a l l e y Central Plains East-Man Nor-Man  -  1964 1968 1968 1970  West-Man Park land Interlake  -  1966 1968 1970  Through negotiation between RDCs and the Provincial Government, Manitoba was divided into eight "regions" (see  Figure  1.1).  Seven  for the purposes of economic development planning will  Development Corporation (RDC)  be  referred  to  as  members  of  the  Regional  network. Winnipeg constitutes the eighth and will  AN INTRODUCTION TO THE MANITOBAN CASE / 34 be referred to separately.  An RDC is a non-governmental local development organization. Each of the eight regions RDC  outside  offices  Winnipeg  has  been represented by one RDC  are combined into one Regional  Development  office. The eight  Network  which  has  been connected to various Provincial departments over time. Each RDC is formed by two or more local government bodies through authority passed down in the Companies  Act of Manitoba  and the Municipal Act (MRDC, 1974:3). Membership  in an RDC is voluntary and open to all incorporated cities, towns, villages, rural municipalities, and, in some cases, Indian Reserves. The policies and programs of each  RDC  usually  are  established  consists  directors  of  selected  the  by  by  RDCs  elected  a  Board  of  full-time officials  in  Directors.  manager member  Each  plus  a  RDCs board  communities  directorate  of volunteer (Harvey  and  Associates, 1983:60). This arrangement provides for a Board which is answerable to the municipal councils in each region.  Funding for RDC has  been  operations comes from two sources. To date the major portion  supplied  as  an  unconditional  operating  grant  by  the  Provincial  Government. The remainder comes as an annual membership fee in the form of a  per capita levy  applied to each member  municipality  (MRDC,1974:3).  RDC  funds are used only for operating and promotional expenses. RDCs do not have a mandate to use their funds as venture capital.  An interview with the Mr. Leo Prince, acting director of Manitoba's Department of Rural Development (DRD), in July  1990, uncovered one recent exception to  AN INTRODUCTION TO THE MANITOBAN CASE / 35 the typical RDC structure. Early in 1990 the DRD redesigned the Parkland RDC. Because  of local  dissatisfaction  with  divided into an eastern half and re-established.  Two  RDC  a  managers  the  RDCs  western now  region  was  half, and no central office  was  travel  achievements  a  the  circuit  between  various  communities. Another significant modification is that no local board of directors was re-established. At the present time Parkland RDC  managers answer directly  to the DRD.  Most of the details chapter. In  this  concerning RDC  history  will be included in the following  section the intention is only to give  some  indication of why  RDCs were initially created.  The first support for locally-based regional organizations  in rural Manitoba came  in a report prepared on behalf of the Provincial Government, entitled, Report of The  Committee on  Manitoba* Economic Future  (COMEF,1963). A  report prepared  eleven years later by the RDC network (MRDC, 1974:2) stated that: The regional development system grew out of the economic conditions in rural Manitoba in the early 1960s. Rural communities originally were established to serve the needs of agriculture, and their locations were based upon the transportation capabilities of the times. The mechanization and consolidation of farms resulted in a decline in farm population. The automobile and better roads, resulting in improved transportation, enabled the farmer to travel farther to larger cities and towns which offered a wider variety of goods and services. The changes that occurred in agriculture, in transportation, in employment, and in population brought about sweeping changes in the rural setting. It readily became apparent that individual communities were too small to effectively influence the development that was taking place in their areas, and that many of the economic opportunities which existed were regional in nature. It was suggested that groups of communities with common interests could pool their resources for development.  AN INTRODUCTION TO THE MANITOBAN CASE / 36 The description of economic disarray recommendation Manitoba reveals  had that,  for come  in  RDCs  in  to  watershed.  a  fact, the  the  given in the quotation, and the early  problems  A  1960s, look  which  create  back  inspired  the  on the RDCs  COMEF  impression province's  were  that  history  anything  but  unique to the 1960s.  3.2. T H E PROVINCIAL BACKGROUND  Manitoba  ranked as the fifth most populous province in Canada in 1986, with  1,071,200 persons (Canada, 1990). The province contains one large urban centre Winnipeg.  As  of  1986  the  city  of  Winnipeg  held  594,600  constitutes  55.5 percent of provincial population (Manitoba  people,  which  Bureau of Statistics,  December, 1988). However, in the past the province was considerably different. In 1881, 83.5 percent of Manitoba's population was rural.  It was expansion of the agricultural sector and settlement of the west, stimulated by the federal government during the 1800s, which ignited economic growth in Manitoba. Agriculture and settlement reached an important cross-road during the first decades of the 1900s. In Winnipeg the economy diversified, industry became king and problems arose between employers and workers. In rural areas wheat was  still  king  and  the  provincial leadership. By  problem  was  between  1921 both labour  farmers  and farmers  and  the  urban-based  attempted to increase  control over their respective grievances. Labour in Winnipeg faced a major defeat in the general strike of 1919. Farmers managed to gain power in the provincial  AN INTRODUCTION TO THE MANITOBAN CASE / 37 legislature  and,  perhaps  unwittingly,  set  the  mold  for  rural  development in  Manitoba.  Phillips (1990:5) argues that the connection between prairies and agriculture can be traced back to the National Policy presented during the federal election of 1878. The National Policy consisted of four elements: 1. The British North America Act and confederation framework for the policy. 2.  A transcontinental railway was to join the regions.  3.  A land and settlement.  4.  A system of tariffs protected central Canadian industry.  The  National  consumer  Policy  immigration  established  policy  a  role  reinforced  for  the  the  west  established  west  as  as  an  resource  a  legal  agrarian  base  and  market for central Canada. Manitoba, and especially Winnipeg, grew  largely  as  a result of the transportation element of the new federal policies.  Bellan  (1978:19-25)  points  out that the Canadian Pacific Railway put its line  through Winnipeg despite the existence of a less flood-prone route through the town of Selkirk: The location of the railway through Winnipeg promised that the fledgling city, strategically located at the point where the transcontinental railway entered the western plains, was destined to become the entrepot of the great agricultural economy which would come into being on those plains.  Geographic location gave Winnipeg an advantage which other prairie cities did not have. By the early 1900s, Winnipeg's importance as a transportation centre was reinforced by  two events. First, the Grand  Trunk Railway and the Canadian  AN INTRODUCTION TO THE MANITOBAN CASE / 38 National Railway added lines through the city. The convergence of three railways increased  the  volume  of  activity  channelled  through  the  province  (Phillips,  1990:13). Railway construction alone generated business for Manitoba.  Second, in 1898 the Canadian Pacific Railway (CPR) favour Ashdown  Winnipeg  (Bellan,1978:73).  convinced members  of  On the  behalf Federal  of  structured freight rates to  local  wholesalers  Government  and  the  Mr.  J.H.  C.P.R. to  structure rates such that Winnipeg merchants paid the same reduced rates as central Canadian merchants for goods shipped into the west. At that time no other prairie city received such an inducement.  To put the province's importance into perspective, Phillips (1990:8) states that by 1910 Manitoba was home to 70 percent of all the manufacturing in the Prairies. Artibise (1977:36) and  states  that manufacturing output in Winnipeg between  1881  1913 leapt from $1,700,000 to $50,000,000. The western wholesale trade  also blossomed in Winnipeg as a result of freight rate and locational advantages (Bellan,1978:73).  In  a short period the cities industrial base diversified beyond  wheat-related production into meat packing, building materials, services for the railways, finance, and other enterprises. By  1911 Winnipeg ranked as the third  largest city in Canada, and 43.4% of the province's population was considered urban (Figure 3.1). Because of unprecedented growth Winnipeg also became the focal point for skilled and unskilled labourers. Whether it was farmers or  AN INTRODUCTION TO THE MANITOBAN CASE / 39  Figure 3.1 Rural/Urban Population Distribution in Manitoba  Year 1911 1021 1931 1941 1951 1961 1971 1981  V  u 0  - — — i  10  20  Sources: Artibise, 1977:200 & S t a t i s t i c s C a n a d a , 1981 C e n s u s  30  40 Percent  60  60  70  80  AN INTRODUCTION TO THE MANITOBAN CASE / 40 industry looking for help, Winnipeg was where they looked.  The opportunities created by federal policy, geographic persuasiveness  good fortune, and local  gave Manitoba, and especially Winnipeg, an early lead over other  western provinces. But, Morton (1967:29) pointed out that the approach of World War I served to demonstrate how fragile Manitoba's prosperity was: The end of the great western boom had been prepared by rising freight rates and falling farm and land prices. It was precipitated when in 1912 and 1913 the Balkan Wars, by the demand for money and the fear of war they created, dried up the flow of British loans to Canada. The stream of pounds sterling which had made possible the building of the railways and the elevators, the purchase and equipment of farms, the building of towns and cities, diminished and soon was to be cut off entirely.  The  War  construction  brought came  contrasting to  a  effects  halt,  in  and  Manitoba.  western  Railway  demand  and  for  commercial  goods  slowed  (Bellan, 1978:130). But, demand for prairie wheat increased as Allied nations were cut off from continental supplies.  In  1915  Manitoba  produced and  shipped a  record crop. A mini-boom developed in rural areas, and farmers expanded their operations to meet the challenge. This boom also ended quickly. Rapid expansion entailed heavy financial investment and more stress on the land. As  early as  1917 farm debt and decreasing yields were significant problems, and by merchants  experienced  a  rapid  decline  in  farm  related  business  1920  (Morton,  1967:356).  Completion  of  the  Panama  Canal  (1914)  compounded  problems  of  decreased  demand for manufactured goods and poor harvests. Vancouver emerged as a new  AN INTRODUCTION TO THE MANITOBAN CASE / 41 shipping port and began to erode Winnipeg's  transportation advantage. In order  to stay competitive with the ocean going freighters, Bellan (1978:154) noted that Canadian  railroads had to reduce transcontinental shipping rates. At this point  Vancouver gained the same low cost rail connection to Alberta and Saskatchewan that Winnipeg formerly monopolized.  Despite the war and loss of transportation advantages, Artibise demonstrates that Winnipeg's  manufacturing did not show the abrupt decline found in construction  (see Table 3.1).  Table 3.1 The Growth of Manufacturing in Winnipeg, 1881 to 1971 Year 1881 1891 1901 1911 1921 1926 1931 1936 1941 1946 1951 1956 1961 1971  Number of Population Firms* 7,985 25,639 42,340 136,035 179,087 191,998 218,785 215,814 221,960 229,045 235,710 255,093 265,429 246,270  106 307 103 177 419 446 543 594 677 756 849 869 736 633  Payroll $(000)  Value of Products $(000)  411 950 1,177 2,359 3,155 1,811 7,614 11,705 11,406 15,500 20,087 15,474 22,293 17,693 18,061 16,673 23,831 30,169 42,355 26,730 27,704 65,742 26,629 80,892 86,394 23,694 22,667 133,361  1,700 5,611 8,616 32,699 75,200 87,696 73,723 73,316 127,913 206,381 292,497 309,520 326,881 465,804  Number of Employees  Source: Artibise, 1977:199. In fact, Table 3.1 describes slow but continuous growth in payroll and value of products until 1931. War increased the demand for labour, however, the cost of living  was  also  escalating  while  wage  levels  remained  inadequate.  Artibise  AN INTRODUCTION TO THE MANITOBAN CASE / 42 (1977:110)  noted  that  union  activity  became  more  common  in  an  effort to  improve wage levels and working conditions: At one point in May thirteen unions were simultaneously off their jobs and more than 6,800 strikers included workers from such crucial municipal services as fire, water, light and power, and public transportation.  Working  class  resistance  to  conscription, and  rising  concerns  about  living  in  poverty while industrialists profited from the war, added fuel to labour's cause. Employers resisted changes to their relationship with labour and unrest eventually came to a head in 1919 with Winnipeg's general strike. Kendle (1987:98) states that  over  20,000  workers  entered the  protest.  The business  communit3' and  government viewed the strike as the precursor of revolution. With a negotiated settlement unlikely, local and federal police were eventually used to arrest labour leaders and put down the strike by force. Thus, before 1920 labour in Manitoba became  organized, had  gone  to  extremes  in order  to make  their  grievances  known, and had been derailed by the province's business and political leaders.  3.2.1. The Rise of the United Farmers of Manitoba During attack  the same  period that  Winnipeg's  labour  movement  was  beginning  inequities in the economic and political system, the province's  to  farmers  were agitating against similar inequities.  Morton  (1967:412-413)  described growing  concern amongst rural residents  that  traditional lifestyle was disappearing. The farmer was becoming less a craftsmen and more a mechanic, or manager. Urban industry attracted more people from  AN INTRODUCTION TO THE MANITOBAN CASE / 43 the countryside: This depopulation of the countryside was a bitter loss, publicly lamented by farm leaders...It was, however, a loss which could not be checked until the farm offered its young people opportunities of a good life comparable with those, real or fancied, offered by the city"  By 1918 European wheat demand had tapered off and, as a result, wheat prices began to tumble. At the same time, the costs associated with operating larger and more mechanized farms were increasing. While farmers began to suffer costs related  to  modernization  they  witnessed  the  federal  government  supporting  increased freight rates and refusing to reduce tariffs on agricultural implements (Morton,1957:362).  In Manitoba disputes over issues like the tariff were serving as proof that the existing  host  of  politicians  Canada  remained  harness  prairie resources, but natural resources were kept under federal rather  the  locus  were of  not  responsive  economic  to  prairie  control. The  concerns.  National  Policy  Central helped  than provincial jurisdiction until 1930 (Kendle, 1979:102). Tariffs were structured to protect eastern industry, and while Manitoba's trade advantages seemed to shrink, central Canada continued to enjoy protections.  Out of the debate surrounding tariffs emerged a new political group known as the "Progressives," rural  western  originating in Winnipeg and led by T.A. Crerar to represent  interests  Crerar's Progressives  at  the federal level (Coates  and  McGuiness: 1987:100).  stimulated an interest in direct political action amongst the  farmers. Tired of having provincial affairs monopolized by what were perceived  AN INTRODUCTION TO THE MANITOBAN CASE / 44 as  Winnipeg-based  reshaped  their  elites,  in  organization  1920 into  the  a  Manitoba  new  political  Grain  Growers'  association  Association  named,  United  Farmers of Manitoba (UFM) (Coates & McGuiness, 1987:100).  The UFM adopted what their members considered a radical approach to political conduct. The U F M  promised that members  Instead, each member was  would not respect party solidarity.  expected to voice the opinion of their constituency  (Kendle, 1979:28). Thus, grass-roots democracy was  brought  by  recording  making  the  legislature  into  an  agency  for  to provincial politics sentiment  amongst  constituents, and UFM constituents were primarily in the rural districts.  Another twist was that the U F M did not support any province wide campaigning organization. Each local  acted as  concerns  were  Grain  Growers' branch that made the change  an independent group. chosen  to  compete  Thus,  against  into a  UFM  local people representing localized incumbents  from  the  mainstream  parties. The U F M found their first opportunity for action after capturing 22% of the legislature's seats in the election of 1920 (McAllister, 1984:111). T. J. Norris was re-elected as Premier but his Liberal party lost their majority position.  Looking back on the rise of urban and rural protest movements, it is interesting to note that both organized independently, but took action at the same point in history. Just one year after the Winnipeg general strike ran its course, farmers successfully advanced their protest movement into the political arena. It odd that labour  met defeat because  of their allegedly  seems  radical behaviour while  U F M members joined the legislature despite their promise not to respect political  AN INTRODUCTION TO THE MANITOBAN CASE / 45 procedure. In the following sections it will be demonstrated that the UFM's rise to government was related to their support for minimal government intervention, and development through free enterprise. The UFM's free market philosophy of government represents an important component for understanding the formation of Manitoban development policy.  3.2.2. The UFM in Power While heralded as a victory for long suffering rural folk, the downside of the UFM's  entry  into  politics  was  that  the  legislature  of  1921-1922  became  deadlocked (Morton, 1967:378): The Norris government, supported by twenty- one Liberals, the largest group in the house, continued in office. The next largest group, UFM members, refused to join the Norris government or to become the official opposition. Their stand was that it was their function to represent their constituents and to support such legislation as met their approval. The necessity of maintaining a stable administration was no part of their political philosophy. The Conservatives continued as official opposition, while the Labour and Independent members skirmished vigorously as they pleased.  During this watershed period no one party dominated politics and there appears to have been no effective political voice for the province. During  the 1921-22  period the provincial economic crisis also continued to grow. Rural-urban migration continued to  accelerate (see Figure  3.1).  Unemployment  in urban centres  was  rising. Wheat prices were declining, and when the Wheat Board was dismantled in 1921 price stabilization disappeared entirely.  Feeling pressured by lack of influence in the legislature and over the economy, Norris  called another  election in  1922. During  this  campaign  the UFM  saw  AN INTRODUCTION TO THE MANITOBAN CASE / 46 another  opportunity, and a more organized  uniformly  criticised  management,  and  government  for  was  conducted. Members  over-expenditure,  financial  mis-  and a scandal surrounding the construction of the new legislative  building. The U F M thrift,  Norris's  campaign  drafted a party  non-partisan  government  platform based on efficient administration, (Kendle, 1979:28).  The  Winnipeg  Board  of  Trade, representing the cities commercial leaders, were receptive to the UFM's call for economy and the U F M suddenly found support within Winnipeg's business community.  In  the  1922  election the  UFM  won  26  of  50  seats  and  formed  the new  government. Morton (1967:379) refers to the UFM's victory as a significant shift in  Manitoban  history  because  it,  "marked  the  attempt  predominantly agricultural to find relief from the stresses exhausting  war, and a deep depression by  by  a  province  still  of rapid change, an  returning to its  origins,  the rural  virtues of thrift, sobriety and patient labour."  Of six cabinet positions, five were held by members directly linked to agriculture. The  new  Premier, John Bracken, was  a  farmer, had been educated at the  Ontario Agricultural College, was President of Manitoba's Agricultural College, and was elected as The Pas' representative. His connection to rural and agricultural life were  undoubtable. The new  farmer's  party  had  successful  brought  strong  representation for communities outside Winnipeg to the highest ranks of provincial politics.  The UFM's first order of business  was  to reduce the debt built up by the  AN INTRODUCTION TO THE MANITOBAN CASE / 47 Norris government. By  1915 the provincial debt had reached $40,000,000, and  by 1926 the U F M reduced this debt to $4,552,000 (Kendle,1979:37). The farmers were proving their ability in Financial management. financial  goal  allowance  severe reductions were made  funding,  and  civil  expenditure reductions Bracken's  service  However, to achieve their  to the education budget, mother's  hiring  (Morton, 1957:386).  Despite  the  government could not make satisfactory impact  on the debt. To reduce more required not only lower expenditure but increased revenue, and  to  this  end the UFM  established  a new, and, very unpopular,  comparatively generous  agricultural policies were also  income tax.  The Norris  Government's  cut back. For example, the Rural Credit Society, a publicly funded lender of last resort, had their operation scaled down. The Farm Loans Board was instructed to adopt more  restrictive policies  and began refusing  most  applications. Loan  programs for purchasing livestock were also terminated (Morton, 1957:386).  Another blow to farming came as a result of the non-partisan approach which initially made the U F M prices  ($3.19  in  1920  popular. In to  $1.10  response to the ongoing decline in wheat  in  1922;  Morton, 1957:380),  governments  in  Saskatchewan and Alberta pushed Parliament to re-instate the wheat board. The federal level agreed, but added the proviso that all three prairie provinces first pass  enabling  acts.  In  1923,  wheat  board  legislation  was  voted  down  in  Manitoba.  It  seems  strange  that  a farmers  government would not support wheat price  AN INTRODUCTION TO THE MANITOBAN CASE / 48 stabilization, explains  but  that  the bill  Manitoban  was  the  farmers  victim had  of poor enjoyed  timing.  better  Morton  weather  (1957,384) than  their  counterparts in other provinces and were able to harvest earlier and sell their wheat when prices were higher. Since U F M members voted in response to their constituent's  wishes, the bill did not receive enough support in the legislature.  The wheat board event served as party  a reminder of the UFM's  solidarity. However, in upholding non-partisanship  refusal to adopt  the UFM  sacrificed an  initiative the federal government was prepared to grant the entire grain growing region. The UFM's new approach to government had also scuttled a vehicle for achieving  one  of their  objectives:  Manitoba's shortsightedness  stabilizing  farm  incomes.  Farmers  paid for  as wheat prices continued falling to sixty-three cents  per bushel during 1923.  Cutbacks  in public funding, increased taxation, and the wheat board defeat are  examples of the impact of the UFM's dedication to austerity and non-partisan government. But, Bracken's government cannot be described as entirely Draconian. Kendle  (1979:53)  familiarity  argues  that  with the instability  because of wheat  of  the  UFM's  rural  farming, Bracken  roots,  and their  recognized that the  rural economy had to diversify: By the mid-twenties he [Bracken] was making it clear on a number of public platforms that important as agriculture was, as serious as its problems were, and necessary their solution was, the province could not continue to depend on agriculture alone. Forestry, mining, fishing, and water power would all have to be developed, as would secondary industry.  In Kendle's (1979) biography of John Bracken, the author describes in detail the  AN INTRODUCTION TO THE MANITOBAN CASE / 49 difficulties  Bracken's  government  faced  in  achieving  diversification  outside  Winnipeg. These problems can be linked to two conditions placed on growth by the UFM: 1. private investors were to undertake the development ventures; 2.  the provincial government investment taking place.  wanted  to  control  the  scale  and  type  of  A great deal of public time and energy went into allowing investors enough room to  find  development  example, in  profitable, while  maintaining  some  public  1925 Bracken himself began soliciting candidates  influence. For  for a pulp and  paper operation in northern Manitoba. His first choice was a Manitoban named J.D. McArthur. What McArthur and his partners requested was the right to cut a much larger area of land than Bracken felt any one company should control (Kendle, 1979:54). Bracken's concern was that one company might monopolize the Province's timber lands. McArthur argued that the large area was necessary to make cutting and processing viable. The Premier refused to support McArthur's request without significant modification.  Negotiations for cut size and price went on for some time and were complicated by the fact that the federal government actually controlled natural resources in Manitoba  at  that  time.  While  Manitobans  began  promoting  and  supporting  resource-based industry in Manitoba, potential clients actually had to receive legal authority  for  their  government  offered  comfortable  with. A  projects a  from  license  bidding  for  war  federal departments. a  much  larger  Eventually  cut  ensued between several  then  the federal  Bracken  investors.  was  McArthur  ended up with the license but at an inflated price (Kendle,1979:56). There was  AN INTRODUCTION TO THE MANITOBAN CASE / 50 some relief in government that the project was Manitoban  had  won.  Unfortunately,  because  of  Finally under waj*-, and that a the  inflated  purchasing  cost  McArthur could not make the project Financially feasible. After more negotiation an American Firm ended up with control of the timber land while McArthur held on to the milling operation. Of the government's two criteria for development, the second  (public  control)  was  sacriFiced in  order  to  maintain  the  First  (private  investment).  In mining the sacriFices again accrued to government in order to make private investment stick. A mining operation in the north was considered the surest way to stimulate  growth in that  region. An  investor was  found in New  York to  establish a mining operation in Flin Flon but the site was isolated from potential markets.  A  rail  link  became  the  essential  ingredient  for  development. After  another period of negotiation the provincial government ended up subsidizing both construction and operating costs for a rail link built by the Canadian National Railway (Whitcomb, 1982:41; Kendle, 1979:63).  In hydro-electric development the private investment scenario was repeated again. Three Firms became involved in hydro- electric development at a southeastern site known as the Seven Sisters' Falls. Two of these companies were privately owned while the third, the Manitoba Hydro Commission, was a public holding. Kendle's (1979:71) research proved that as early as  1925 Bracken had been petitioning  the federal government to reserve the Seven Sisters site for provincial use. The Premier  was  not  convinced  that  private  development  would  insure  amounts of cheap power for the province over time. Despite Bracken's  sufficient original  AN INTRODUCTION TO THE MANITOBAN CASE / 51 position, Morton  (1957:402)  relates how, in  1928, a report sponsored  by the  provincial government on dam development at Seven Sisters Falls, "declared that it  would  be  uneconomical  to  develop  the  site  under  public  ownership  and  recommended that the site be leased to a private company." The Seven Sisters project became an achilles heel for the U F M  because a contract between the  Province and a private firm was entered into without consulting or informing the legislature.  In  assessing the UFM's development efforts one must acknowledge their success  in hosting diversification. Artibise (1977:114) notes that Manitoba's manufacturing was expanding during the late twenties, with gross value of products rising from $75  million  in  1921  to  $109  million  by  1929.  The  Manitoba  Industrial  Development Board announced in 1927 that 437 plants, involved in 43 branches of manufacturing, were operating in Winnipeg. Thirty-eight new firms had opened in the last year alone (Morton,  1957: 395). In  addition, mining in the north  helped establish The Pas and Flin Flon as new provincial centres.  On the downside, the public role in development appeared to stop at identifying opportunities  and  providing  the  necessary  infrastructure. A  pattern  of private  ownership and control of the initiatives which drove development was emerging. The  government  was  not  as  successful  as  originally  intended in  achieving  a  balance between private investment and public control. To stimulate diversification through  pulp  and paper, and mining,  about monopoly and Manitoban control  of a  vital  resource to  the UFM  had  sacrificed their concerns  investment. In hydro-electricity the U F M handed one  private  corporation. What  these  examples  AN INTRODUCTION TO THE MANITOBAN CASE / 52 indicate is that the U F M where more willing to concede on public control than on their desire to develop through private enterprise.  3.2.3. Crisis  and  Decline  In the early 1920s the U F M responded to what rural voters considered a crisis by applying their conservative approach to administration. The UFM's  strategy  appeared to regenerate prosperity in the province. However, the prosperity was short lived. By  1928 Bracken had six years to establish his party's vision of  good government and provincial development, yet could not buffer the province from the oncoming depression. On the political front, during the provincial election of  1927 the farmer's  party  actually gained  an additional seat. However, the  Conservatives had also regained more seats (McAllister, 1984:111). Despite voter's support for the UFM  their organization  had eroded, and the UFM's political  organization dissolved in 1928. Signs of prosperity seemed to shift some people back  to former alliances  with other parties, and other voters went to small  reformist groups splitting from the UFM. Compounding problems in maintaining a party foundation, the government was plagued by criticism surrounding the Seven Sisters  contract.  The  Conservative  opposition  charged  that  the  UFM  had  abandoned their policy of public control in development (Morton, 1957:404). Based on allegations  that the contracted firm had made a large contribution to the  UFM's campaign fund, Conservatives also discredited the deal as corrupt.  Kendle (1979:94) states that without support from a party organization Bracken and the former U F M representatives slowly developed a coalition with the Liberal party. Political leadership became unsettled and Bracken was  searching for the  AN INTRODUCTION TO THE MANITOBAN CASE / 53 means to fend off the Conservatives.  Surrounding  the  political intrigue  of the late  1920s  were  numerous  signs of  economic decline. Artibise (1977:122) notes that while Manitoba's primate city had enjoyed an industrial boom during the previous years, from 1924 through 1930 Winnipeg's importance as a distribution centre was declining. Wholesale trade in Winnipeg  is  cited in  Artibise's  research  falling  million over the same period, while in Calgary  from  $96.7  Kendle  (1987:134)  highlights  frequent  to  $72.9  and Edmonton wholesaling  increasing in value. Distress amongst the unemployed was visible.  million  marches  was  also becoming more  on  the  legislature  to  demand assistance from the government.  A growing farm crisis soon added to problems in the cities. Agriculture suffered drought  conditions  suddenly  caught  and  another  cycle of record low  in a struggle between farmers  crop prices. Bracken  was  and the banks that had lent  them money. He had to intervene to keep farming viable during the depression. However, the government held fast to its belief in the market system and would not  interfere  (1987:110)  in  quote  favour Bracken  of  either making  creditor the  or  following  debtors.  Coates  statement  after  &  McGuiness attending  conference on the farm debt crisis: It was the feeling of the meeting that if there were no interference with the operation of ordinary economic laws the situation would right itself more quickly and more fairly than it would if temporary and more or less unsound measures were resorted to. It was considered that arbitrary or radical measures at this time would not only work out inequitably but do more harm than good.  a  AN INTRODUCTION TO THE MANITOBAN CASE / 54 The farmers' reaction to the Bracken government's attitude became more forceful. In  1932  marched  a  group  into  of  500  Winnipeg  to  farmers  confront Bracken  (Kendle, 1979:134). Later that same tax  sales  organized  marched into the small  by and  the Farmer's present  Unity  their own  League proposals  year another band of 500 farmers fearing town of Arborg, forced their way  into the  municipal offices, and destroyed the assessment records.  To their credit the provincial government accelerated capital works create jobs. The province also  subsidized make  work  schedules to  efforts generated by . the  municipalities. None of these efforts created sufficient support, and slowly drained away  revenues. By  1932  the  federal government  threatened to end financial  support extended to Manitoba, and suggested that a federally acceptable controller be installed. Trade unions, workers councils and other labour groups had been in the background  for some time arguing  Board of Trade was demanding accept  a  Satisfying  committee any  appointed  one group  for additional assistance.  The Winnipeg  that the government balance their budget and by  meant  the  Board  Bracken  to  would  act  as  alienate  economic the others  advisors. to  some  degree. The desire to maintain a balanced budget finally prevailed in the budget of 1933. Expenditures were cut back by an estimated $2.6 million and a new 2% tax was placed on all salaries and earnings (Kendle, 1979:131).  While  the  depression's  impact  on  Manitobans  cannot  be  diminished,  residents  somehow prevailed. At the height of the depression 30% of Winnipeg's population were receiving relief. However, 30% means that many people were still employed. Artibise (1977:126)  demonstrates that several conditions combined in the city to  AN INTRODUCTION TO THE MANITOBAN CASE / 55 create  a  niche  for  services  and  manufacturing.  First, the difficult cash flow  conditions of the time meant manufacturers and retailers had to be capable of swift manufacturing and delivery. In Manitoba this efficiency gave firms a slight edge  over competitors  in  the east,  who  were more  distant  from  the prairie  market. Second, the population of unemployed provided a steady supply of labour, or when opportunities appeared, skilled labour opened their own small businesses. Third, large  hydro-electric projects from the earlier development period provided  the city with abundant cheap power. Finally, contraction in the wholesale sector opened up a supply of affordable space for industries to take up. As a result of the conditions described above Artibise notes that manufacturing firms increased from 519 in 1930 to 648 in 1939.  The  fortunes  of the rural-based  reform movement  had  come  full  circle. The  farmer's party won office on the promise to act on behalf of rural residents. But, during the 1930s farmers and other rural residents turned against Bracken's leadership as they had turned on his predecessor twelve years earlier. In good times and bad, the U F M and coalition governments had upheld their support for private enterprise and financial restraint. For a short period development efforts seemed to stimulate growth. But, when conditions in the global economy soured, the Bracken- Liberal coalition was  reduced to managing damage control. While  UFM-style laissez-faire development had fostered new industrial activity, primarily in Winnipeg, the party's development strategy contributed little to appease rural residents.  Bracken  continued on  as  Premier until  1943. But,  from the time the  UFM  AN INTRODUCTION TO THE MANITOBAN CASE / 5 6 backed out of politics in 1928 until 1943, Bracken continued on as Premier by balancing coalitions with the Liberals, Social Credit, and Conservatives.  This historj' of the farmers' movement illustrates how, in the 1920s Manitobans were already wrestling with problems presented decades later by the government and RDCs as issues of the 1960s. All the components of Manitoba's economy were floundering and no decisive action was  coming from within the province.  The solution in 1922 was to vote into power a rural-based party dedicated to reviving rural stability. Compared to creating RDCs, the 1922 solution was more extreme. Rather than designing  local organizations  to deal with regional issues  the U F M tried to establish control over economic destiny by making rural/regional issues the priority for Provincial Government.  3.2.4. The Second Approach In the period between 1935-58 Bracken left politics but was replaced by fellows of like mind. Stuart  Garson and Douglas Campbell became the next Premiers  and both were former Bracken cabinet ministers. Manitoban general  agreement that while Bracken was  remained  fundamentally  unchanged  historians seem in  gone the approach to government (Whitcomb, 1982:52;  Coates  and  McGuiness, 1987:160; Morton, 1957:463). Government ran on the same principles of non-partisanship and austerity established in 1922. However, the scale and rate of change  farmers objected to in the  1920s  began to pale in comparison to  change after 1941. Rural-urban migration began to accelerate again after World War  II  (see  Figure  3.1).  Measured  in  terms  of  the  numbers  of machines  appearing on farms, mechanization also accelerated in the post-war period (see  AN INTRODUCTION TO THE MANITOBAN CASE / 57 Table 3.2).  Table 3.2 Machinery and Equipment on Census Farms item  1951 1361 i ? 7 !  ;  13/  h U i-OfnO D i i S z  i'iosor T r u c k s If 3£ tors G r a i n Combine  Source:Census of Canada, 1976 Coinciding with the mechanization in agriculture, Figure 3.2 illustrates a decline in  the  number  of  individual  farms  and  an  increase  in  the  area  of  each  remaining farm. In addition, farm incomes continued to take extreme swings (see Figure  3.3).  Together  increased  mechanization  and  unstable  wages  made  it  impossible to make wages for farm help competitive with other industries. By the late 1950s the incentive to leave rural areas was stronger than it had been in the  past.  Morton (1957:463) points out that industrialization was well rooted by the 1950s, and  the  old  rural-based  government  was  falling  out  conditions. While the Campbell government managed years,  aggregate personal income in Manitoba  1958  (Chorney, 1970:20). Compared to Ontario's  Scotia's  80% increase over the same  grew  of  budget by  step  with  surpluses  only  changing for eight  71% from  1948  120% increase and even Nova  period, people sensed that the time had  come for a new approach to development.  AN INTRODUCTION TO THE MANITOBAN CASE / 58  Figure 3.2 Number and Size of Farms Manitoba, 1936-1981 Farms  Acres  800  (Thousands)  700  80 - 70  6 0 0 -;  r 60  500 -  50  400  - 40  300  30  200  20  100 -I 1936  1  1  1  1  1941  1946  1961  1956  Ave. F a r m S i z e Source: Westaro Group Inc..June, 1088.  -i 1961  1  1  1  1966  1971  1976  No. of F a r m s  (- 10 1981  AN INTRODUCTION TO THE MANITOBAN CASE /  Figure 3.3 Farm Operating Cost vs Incomes Manitoba, 1966-1986 $ Million 1 8 0 0 -i  0 H 1966  1  1  1  \  1  1  1  1970  Source: Ghoryashi,l990, ' Expenses= Operating + Deprecation Charges  1 1974  1  1  1  1 1978  1  1  1  1 1982  1  1  r 1986  AN INTRODUCTION TO THE MANITOBAN CASE / 60 In  the election of 1958 the Conservatives  emphasizing how Manitoba's  of  direct  austerity,  growth was below the national average despite the  increased industrial activity. Duff Roblin platform  leapt on the government's  intervention  to  and the Conservatives  aid  development  and  offered a new  won  a  minority  government. Two significant changes occurred in development policy as a result of the  Conservative's  attitude  towards  intervention. These  because: (a)they increased the government's changes  included  defining  the  initial  changes  are  significant  concessions to industry, and (b)these  role  for  the  Regional  Development  Corporations. The first change (increasing concessions) will be discussed below as the last section in this chapter. The changes leading to regional organization will be dealt with in Chapter 4.  3.2.5. Extending the Limits of Intervention Rather than rigidly adhering to balanced budgeting, as his predecessors had done, Roblin  began  borrowing  to  finance  an  aggressive  series  of  development  aids  (Gonick, 1990:28). For example, during their first year in office the Conservatives established the Manitoba Development Fund (MDF) resort balance  for  small  economic  particularly  businesses.  Whitcomb  development  interested in  Winnipeg. The MDF  using  (1982:56)  throughout the MDF  the  to act as a lender of last  notes  province,  to foster  requires special mention as  that the  small  in  an  effort to  government  industry  outside  was of  an example of the Province's  new aggressive development strategy.  While  small  industry  outside  Winnipeg  was  the  initial  target,  this objective  quickly changed. Harold Chorney (1970) prepared a critical review of the MDFs  AN INTRODUCTION TO THE MANITOBAN CASE / 61 performance and while the tone of his review is overtly hostile, the facts he included are revealing. Between 1958 and 1970 two- thirds of the capital loaned by the MDF  went into only four companies  (Ibid. 21). In  a 1967 speech the  MDF's manager made it clear that the fund would be used to attract American investors, "we want U.S.  investment because we believe it is vital to Canadian  growth...the provincial government is willing to use its influence where appropriate to create a profit opportunity where none might otherwise exist". Evidently the MDF had moved beyond being a lender of last resort for small business.  Providing profitable opportunities for investment was the same rationale the UFM had adopted in its diversification strategy. In this regard the Conservatives were only  continuing  a  tradition. The  Conservatives  also  appear  another pattern established by the Bracken government's That pattern was  the willingness  to  have  followed  diversification strategy.  to concede public control in order to recruit  new industries. What was new, however, was the scope of concession considered legitimate by the Roblin government. For example, while the original intention of the MDF was to act as a lender of last resort, a $20 million loan was used to attract the Simplot Chemical Fertilizer Company into Brandon. Chorney (1970:22) argued  that  Fortune  magazine  had  estimated  Simplot's  yearly  sales  at  $200,000,000. The MDF had little reason to believe Simplot was hard pressed to find  venture  capital.  Another  Industries project (CFI). operation initiated near  This  infamous  example  project was  to be  the northern community  was a  the  Churchill  massive  pulp  of The Pas.  In  and this  Forest paper case a  group of European investors were attracted by an extensive list of concessions. Quoting directly from the CFI  contract some of the terms  Chorney  (1970:42)  AN INTRODUCTION TO THE MANITOBAN CASE / 62 discovered were: the company was granted rights to timber land equalling 16% of the area of Manitoba (40,000 sq. miles); no guarantees were made for job generation. The government agreed to pay for vocational training of local residents, but the company was not bound by any agreement to hire local residents; the project was tax exempt for twenty years; the pulp mill was excluded from any noise and pollution by-laws passed in The Pas; regarding pollution controls, the government agreed that the company's "obligation shall be limited to the taking of reasonable steps to render such waste, etc., harmless to downstream interests, having due consideration to the...economic necessity of holding costs to an extent that provides a reasonable profit".  Examples of the MDF's undertakings demonstrate that the Roblin government had not dramatically changed the strategy for provincial development. What was new was  the  government's  willingness  to  accept  larger  costs,  in  terms  of  loans,  training, infrastructure, and environmental damage, to attract industries into rural and northern Manitoba.  The  magnitude  of  expenditures  on  education, health  and  social  service, and  transportation, during Roblin's term in office also indicate that Simplot and  CFI  were not the only firms government hoped to recruit with extensive inducements (see Table 3.3).  AN INTRODUCTION TO THE MANITOBAN CASE / 63  Table 3.3 Percentage Changes in Provincial Expenditures, by Function Function  Percentage Change  Health. Social Welfare Education Transportation and Communicalion Natural Resources and Primary IndustryOther (including debt charges and contributions to municipalities)  367 591  56 302  309  Source:Gonick, 1990:29  The new spirit guiding development in Manitoba is best explained by the 1963 report  from  the  COMEF  was  conduct  a  Committee  organized by  review  of  the  on  Manitobas  the government provinces'  Economic in  economic  1961  Future  (COMEF).  The  to achieve the following:  performance  over  the  previous  decades, identify opportunities for generating employment during the 1970s, and outline methods for achieving growth and employment.  In  their introduction, the COMEF  stated that by  1975 a 75,000 job shortfall  was anticipated in the province. In searching for solutions the COMEF examined the each sector of the provincial economy, but Section VI,  Chapter  1, entitled  Manufacturing - The Key to Development and Full Employment, clearly identified where  government  could  expect  new  employment  to  come  from.  Secondary  industry was singled out as the cornerstone for future growth:  Manufacturing need not be limited by the local market or by increases in local population to the same extent as other sectors of the economy such as service industries and construction. This opportunity to produce for export markets makes possible an expansion  AN INTRODUCTION TO THE MANITOBAN CASE / 64 of manufacturing on a scale adequate to provide more additional employment than can be provided by agriculture and the other primary industries concerned. Moreover, expansion of manufacturing has an important multiplier effect on development, growth, and employment in other industries. For example, growth in manufacturing will induce further development in industries which supply it with raw materials, such as agriculture, forestry, and mining, and in industries which distribute its products, such as transportation and wholesale and retail trade.  The  process  favourable  described  tax  electrification,  rates but  also  to  induce  and  industrial  infrastructure  improved  development such  educational  as  involved  roads,  attainment,  not  only  railways,  and  business  skills,  recreational facilities, community services, and financial assistance. What emerges from the COMEF report (1963:VII-7-7) is a process to be applied province wide: Identifying potential manufacturers and assessing what social, economic, and cultural location requirements they have; Finding locations within the province which which can develop these requirements; Selling the manufacturer given their requirements.  What  COMEF  described was  on  a  the  "plug  offer  appropriateness  in"  approach  these requirements, or of the  to  selected location  development. Analysts  assessed what industry needed, found some community that could fill the needs, and then tried to plug the industry into the appropriate environment. Once the private firm was in place it was expected that expansion would occur in both forward and backward linked industries.  AN INTRODUCTION TO THE MANITOBAN CASE / 65 3.3. SUMMARY  This chapter has introduced the RDC  network and its origins. The chapter also  included data which give an indication of Manitoba's economic development since 1922. The information in this chapter indicates that: 1. while records state that RDCs were created in an effort to solve rural problems of the 1960s, these problems extend farther into the history of the province; a. from 1922-1960s rural-urban migration continued to accelerate; 2> b. mechanization in farming accelerated throughout this period; c.  in 1941 individually owned farms began a decline which continued into the 1980s;  d.  despite increased industrialization indicators of growth;  Manitoba  fell  behind  national  e. 2.  by 1963 the government was anticipating the need for 75,000 jobs to match the number of able workers in 1976. Between 1922-1960s Manitoba tried two approaches to influencing development: a. in 1922 the UFM founded a diversification strategy on public support for private sector resource development in rural Manitoba. b.  in the 1960s the provincial government modified the role of the state to include greater public intervention.  Answers to the subsidiary questions outlined in Chapter 2 follow below: 1. What priorities development policy? During this pre-RDC  or  objectives  were  emphasized  in  provincial  period there is little evidence of concern for anything but  economic priorities. In the 1920s the farmers representatives intended to reshape the  political  austerity,  agenda.  financial  What  restraint,  they and  come through private enterprise.  established a  clear  was  an  statement  period that  characterized by  diversification would  AN INTRODUCTION TO THE MANITOBAN CASE / 66 Viewing  the farmers  representatives  after they  had built up experience as  a  government, one does not see much evidence of a reformist movement. Judged by their cautious fiscal policies and track record in dealing with development, the UFM-type  government  followed  a  laissez-faire  approach  typical  of  most  "mainstream" parties in that era.  In  comparing  the  Bracken  government's  attitude  towards  development  to the  theories outlined in Chapter Two of this thesis, Courchene's free market theory comes  closest.  There are, however,  many  differences between the two. First,  research carried out for this thesis did not uncover any indication that Bracken's approach  was  as  carefully  calculated  and  argued  as  is  Courchene's  theory.  Bracken's approach appears based on a simpler belief in the self-righting ability of the marketplace. Second, unlike Courchene, labour mobility was not Bracken's primary concern. Bracken was concentrating on attracting new industry. A third difference was  that Courchene focused on the national economy while Bracken,  and his party, focused on provincial affairs.  Despite the differences, Bracken and Courchene both made clear the belief that market forces were best left to solve most problems. Like Courchene, Bracken also emphasized the importance of building overall economic health rather than favouring one sector or region.  With the U F M record outlined, the Roblin government's approach to development was  shown to share the interest in insuring  private  enterprise. But,  unlike  the  UFM,  that development was  the  Conservative  driven by  approach  saw  a  AN INTRODUCTION TO THE MANITOBAN CASE / 67 legitimate  role  for  interventionist  strategy.  The  Conservatives  won  the  1958  election by criticising the lack of growth created by past policies. The focus on growth is itself significant because it highlights a change in policy objectives since 1922. The farmer's party was founded to solve a series of rather poorly defined rural complaints. At least in the early years general economic growth was not the UFM's primary interest. By the time the COMEF 1963,  the  focus  of  development  had  shifted  from  report was presented in broad  rural  problems  to  provincial economic growth and employment. 2. What strategies development?  The  UFM  example  were  used  demonstrates  by  that  the  province  Manitoba's  to  achieve  early  rural  attempt  at  local  participation gained little influence for rural residents. The events described in this chapter demonstrate that once UFM representatives formed the government, their task became more complex than simply establishing rural reforms. Bracken quickly recognized that agriculture alone was an insufficient economic base, and at  that  point  strategy.  Through  hydro-electricity ranging  Manitoba's  the  provincial  diversification Bracken  government  projects  government  in  began  pulp  became  its  and  entwined  far beyond what rural residents likely expected.. In  importance  to  the  provincial  economy  first  paper, in  development mining,  complex  and  factors  addition, Winnipeg's  could not be ignored,  and  finally, the  depression forced government to deal with unforeseen issues.  Within a short period the Bracken government had to step from their narrow rural agenda in order to serve the interests of the province as a whole. At this  AN INTRODUCTION TO THE MANITOBAN CASE / 68 point locally-based government ended. Decisions were being made based on what the government believed was  best for the province, rather than any particular  section of the population. The government's firm stand on non-intervention in the farm debt crisis was  one example of how non-partisanship  and sound financial  principles, the virtues for which this government was elected, kept Bracken from jumping to the farmers' defence. The rebirth of rural protests during the 1930s were other signs that the government was  no longer automatically doing what  rural residents preferred, but following an independent development strategy. 3. What role was established for locally- based participation?  The events in this chapter demonstrate that from 1922 to 1960 the provincial government  was  control  the  at  establishing provincial  a development strategy  level.  However,  the  which kept most planning  UFM  also  represent  the  first  coordinated effort by rural residents to exert influence in provincial affairs.  When the U F M  formed a political party, rural residents were disturbed by the  farming economy's  poor performance and dissatisfied with political leadership at  all levels. Rural residents hoped that through the UFM rural concerns would, in effect, be transformed into provincial concerns. The U F M wanted to establish as direct a connection as possible between community members and the means for creating  change.  constituents,  Since  decision  therefore, this  UFM  making  rural-based  locally-based development.  representatives was  pushed  mimicked  down  the sentiments  to the  community  of their  level and,  reform effort can be considered a brief attempt at  AN INTRODUCTION TO THE MANITOBAN CASE / 69 This  chapter  has  provided  some  indication  of  the  political  and  economic  environment into which RDCs would soon be placed. The history dating back to the  1920s  government's  displayed  no  development  formal  integration  planning.  Private  of  local  investment  participation was  identified  into  the  as  the  engine for development, and provincial government attracted private investment by gradually  expanding  public  concessions.  The  following  study of how RDCs have evolved under these conditions.  chapter  will contain the  4. T H E RDC  IN MANITOBAN REGIONAL  DEVELOPMENT  4.1. INTRODUCTION  In this chapter RDC evolution is followed through three periods: (1)1963-1973; (2) 1973-1983; (3)1983-1990.  In  the first two periods, comments  made by  Harvey  and Associates (1984) concerning what development theory was guiding the RDCs will  act  as  the  recommendations  starting made  periods will highlight  for  points.  In  addition,  the  first  the foundation for RDCs  subsequent  changes  in  period  will  highlight  1963. The latter two  in provincial affairs,  and changes  in  RDC vision for locally-based development.  4.2.  1963/73: T H E FIRST PERIOD  Harvey and Associates (1984:59) state that the 1963-1973 period is distinguished by the predominance of growth  pole theory in provincial development strategy.  While the authors mention growth pole theory by name, the description provided in their report outlines  "central place" theory. The authors  place theory visualizes the service centre as  argue  that central  the place from which goods and  services are made available to local markets. Growth of a service centre is then related to demand for the services provided. Comparing Perroux's interpretation of "growth  pole"  as  a  propulsive  industry  with  the  Harvey  and  Associates  description of service centres, the authors have confused "growth poles" with a  70  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 71  vision that has more in common with growth centre theory.  Independent  examination  of  the  COMEF  report  indicates  that  during  the  1963-1973 period there was some connection between growth poles and provincial strategy.  But, examination of an East-Man RDC  report revealed growth centre  theory underlying the local organization's work. It will also be demonstrated that this  period is  notable  for the confusion  surrounding  what role RDCs  had in  regional/rural development.  4.2.1. Events at the  Provincial  Level  The background provided in Chapter 3 demonstrated that by the public  intervention  investments  was  synonymous  did stimulate  with  regional  development  diversification in manufacturing  and  1960s direct policy.  Public  related services,  and some 30,000 jobs can be attributed to the expenditures (Gonick, 1990:28-30). However, Gonick also argues that the interventions failed to halt or even slow Manitoba's  deteriorating  national  position.  Detrimental  events  continued  to  Q  out-weigh the benefits generated through public expenditures.  The CFI  project plagued the government as construction schedules and production  quotas were not met. Air Canada moved maintenance facilities out of the City. John Deere moved out parts facilities. Diesel locomotives left Winnipeg rail yards less maintenance activity. Losses in Manitoba were compounded by expansion of business  in  Calgary,  Edmonton  and  Regina.  Thus,  poor  interventionist approach strained the government's popularity.  results  from  the  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 72  To bring industry into the province quickly, Roblin had gambled on a program of comprehensive incentives. Chorney (169:22) states that the Premier defended his strategy as follows: We have to fight it out with the rest of North America. The competition is pretty tough. If you think that our inducements are high you should see what the other fellows are offering.  Whitcomb (1982:58) noted that returns from the inducements were not coming in as fast as expected, and by the mid-1960s the government had to raise taxes to cover the costs associated with their comprehensive incentives. Roblin began to lose the support of his own party, and in 1967 resigned. For two years Walter Wier  acted  as  government  leader,  adopting  a  more  restrained  approach  to  expenditure.  In  1969 the political scene in Manitoba appeared to make a another significant  shift when the New Democratic Party replaced the Conservatives. The continuity in strategies put forward by previous governments appeared to be broken. Social costs associated with the Conservative party's policies were emphasized by the NDP  during the 1969 election. The NDP  proposed reforms. Coates and McGuiness  also presented an extensive list of  (1987:168) refer to 194 separate pieces  of legislation passed in the legislature during the NDP's first term, and comment that the party presented great potential for changing the province's development. By the end of the first period the NDP brought an apparently dramatic shift in provincial  politics, and  development.  introduced what  promised  to  be  another  approach to  1  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 73  4.2.2. COMEF and the Initial Vision of RDCs As  stated in Chapter 3, the COMEF  report made two contributions to regional  development in Manitoba: 1. The legitimate domain for public intervention was expanded; 2.  Local participation was given development in rural areas.  The  first  contribution  has  already  special been  recognition discussed.  as an integral An examination  part of of local  participation will be the focus of this section.  In  the COMEF  Community promoting  report (XI-4-1 to XI-4-14)  Development regional  as  Factors  a chapter  in Economic  development organizations.  entitled,  Growth",  The benefits  "Regional and  was dedicated to  Committee  members  saw (Ibid.XI-4-9) in regional organization were presented as follows: The formation of regional development organizations that would employ their own technical staffs should be encouraged. Because many of the problems facing rural Manitoba are regional in nature, this approach offers individual committees the mechanism for attacking these problems on a united front. The regional organizations can be quite effective in dealing with problems of mutual concern such as the development of water and their resources, the establishment of regional parks, adjustments in agriculture to encourage new crop and livestock enterprises and the promotion of industrial and tourist development on a broad front. The regional organization can help also to bring about greater co-operation between farm groups and town groups  The two objectives initially presented for regional .organizations were to "stimulate development  in  the  region  (Ibid.XI-4-9).  Concerning  and  promote  "development,"  industrialization  the Committee's  of  the region..."  expectations  are not  clear. Despite being a committee charged with studying economic growth, the tone of the report suggests that "development" had considerable scope. For example, agricultural and natural resources were listed ahead of industry and tourism in  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT / 74 the  quotation  concerning  (COMEF: 1963: V-1-6)  benefits  addressing  of  organization.  primary  In  industries  an  the  earlier  Committee  chapter described  natural resource planning as follows: The "renewable" resources, soil, water, forests, fish, fur, and wildlife, must be managed to produce sustained yields in accordance with modern concepts of resource management and conservation. Minerals are classified as "non-renewable" resources since once extracted and used they cannot be recaptured. The development of these non-renewable resources must be separate and treated differently from renewable resources... This basic difference between "renewable" and "non- renewable" resources is exemplified by the need to utilize our fish, fur, and timber resources in a manner which will result in maximum long term output.  Adding to agriculture and resource management, passages spread throughout the chapter  concerning regional  organization  also  mention  water  resource  planning,  industrial development, enhancing co-operation between groups, and planning parks, schools, libraries, and streets.  The  example  subjects  of  resource  associated  with  planning  in  combination  regional  organizations  with  suggests  intended to have broad parameters. But, the COMEF framework  for  regional  organizations  to  the  integrate  such  extensive  list  "development"  of was  did not recommend any diverse  activities. The  Committee did state that each organization should have its own technical staff (Ibid.XI-4-9).  Later  in  the  same  chapter  the  authors  mention  that  member  communities, "could establish regional development and planning offices that would include a development specialist and a planner." The development specialist was to manage the office and co-ordinate the regional program. The planner would take over physical planning duties executed at that time by the government. The  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT Committee also states salaries  / 75  that government should provide matching grants for the  of the development staff. Apart from these descriptions there were no  details on co-ordinating an RDCs "development" responsibilities.  Concerning industrialization, regional growth was considered by the Committee to be dependent on each regions The  region's  attractiveness  ability to attract and hold industry  was said  to depend  on factors  (Ibid.III-2-3).  such  as natural  resource endowment, quality and quantity of labour, initiative and energy of local management, authors  and on a  "favourable  add that the Province  political  would have  programs to attract "outstanding  climate."  In  other  passages the  to be prepared to develop special  industrial companies"  (Ibid.VI-1-2). Because the  report discussed industry and factors leading to industrialization at several points, readers had an indication of what RDCs had to undertake to promote this type of growth.  Unlike nebulous advice on "development", the authors clearly state that with aid from  the Department  identify  industries  requirements,  target  of Industry  suitable specific  for  Trade rural  industries  and Commerce, Manitoba,  that  could  communities  evaluate locate  should  the  industries'  a  community  in  economically, and find methods for recruiting these firms (COMEF, 1963:XI-4-4 to XI-4-5).  A  second example of clear, practical advice on industrialization was that rural  communities, "need to encourage the establishment of 'standard' industrial parks or  districts  in  order  to  stimulate  industrial  development  in  rural  areas"  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 76  (Ibid.XI-4-11).  The Committee (Ibid.XI-4-2) did not offer much advice for communities that did not have what contemporary industries were looking for: In all probability, only a few of the smaller towns in rural Manitoba will become important industrial centres...In some respects the consolidation is not necessarily bad, because, like the consolidation of farms, it generally results in a more economic unit which can perform its function better"  For  communities  offered was generate was  that  miss  out on industrial  that if a company  employment  assuming  that  consolation  established in one community, it would likely  for residents "spread  recruitment the only  /  in  effects"  surrounding from  communities.  polarized growth  The Committee  would  offer  some  measure of growth throughout a region.  The preceding paragraphs  have outlined benefits expected from local organization,  the objectives outlined for RDCs, the few details given on RDC the ambiguity  composition, and  of "development" compared to the clarity of industrial objectives.  Two important points remained unsettled in their recommendations: 1. The Committee was indistinct about whether regional organizations were considered a vehicle for achieving local objectives, or a vehicle for bringing rural residents into Provincial objectives. 2.  The Committee was unclear on what balance economic and more comprehensive objectives.  was  expected  between  Regarding point #1: the COMEF (Ibid.XI-4-3) recommendations left room for local residents and government to interpret the "appropriate" RDC role: Communities and regions must Province's economic development  become efforts.  an integral part Although it can  of the provide  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT / 77 assistance, the real responsibility for development lies with the individuals in communities throughout the Province. Without strong community support, efforts at the Provincial level can prove useless.  This  quotation  importance communities  can  be  viewed  of local support  as  in a  two  ways.  There  necessarj' ingredient  is  a  for  reference to the development. Rural  are told that they must shoulder the "real responsibility". At the  same time, the Committee implies that the Department of Industry Trade and Commerce (representing 'the Province') has a major responsibility for stimulating development in rural Manitoba.  Despite the ambiguity concerning where RDC the  RDCs  indicates  that  by  1970  direction came from, a report from  seven  RDCs  had  been  established  (MRDC, 1974:3). Direction for the corporations had emerged from somewhere, and a hint about where that direction came from is found in the East-Man Regional Development Study(EKDC, 1970:4).  The ERDC  study  limitations  for  was  the  prepared as part of an assessment of possibilities  long-term  development  of  that  region.  In  the  and  report  (ERDC, 1974:4) the authors describe four long-term objectives: 1. To improve the quality of life for the people of the region; 2.  To maintain the ecosystem as a continuing base for the creation of an even better environment for the inhabitants of the region;  3.  To enlarge the socio-economic-political environment of the region in harmony with the needs of the people of the region and the potential of the natural ecosystem;  4.  4. To relate the regional planning and development of East-Man to the planning and development of the other adjoining regions.  These objectives reflect the comprehensive vision presented by COMEF, but the  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 78  East-Man corporation adds the following parameter: These objectives are to be realized within the framework of the policies of the Provincial and Federal Governments, which are dedicated to stimulate, support and guide an orderly and rational development of the Province of Manitoba.  The East-Man RDC was describing its role as an extension of senior government policies and programs.  This  RDCs  adoption of a role as part of government  policy was evident not only in their statements, but also in the pith of their report.  The focus of the East-Man Regional Development Study was identifying potential growth  centres in that region. In explaining their analytical method, the RDC  (ERDC, 1970:18) stated that: the hierarchial pattern was identified by using Central Place Theory in modified form to suit the peculiarities of the East-Man region. The functional index for each settlement was determined on the basis of the calculated locational co-efficient for each settlement.  This  functional index was a numerical value  used to represent the economic  importance of each settlement relative to others in the region, (see Appendix I for explanation of functional index). For example, Steinbach ranked highest with a functional index of 436.56, containing 109 firms covering 18 different activities (ERDC,  1970:19). Beausejour  ranked second with 336.97, containing  100 firms  covering 18 different services. This process was repeated down through to towns ranking  as low as 0.65. The levels of economic activity were then assembled  into four grades (Grade I being centres offering the highest level of service).  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 79  As discussed in Appendix I, the report does not explain exactly what procedures were used to derive index values, nor is there an explanation of how centres were divided into  different grades.  understand  why  used,  difficult to  and  weaknesses  some  aside,  objective of this  the  procedures assess  Lack  (such as  the  following  of explanation  validity  quote  numerical analysis  dividing of  centres  their  to  provide  it  difficult to  into grades) were  conclusions.  (ERDC, 1970:25)  was  makes  Methodological  demonstrates  some  that  the  indication of which  sub-regions were strongest in terms of economic activity, which had potential, and which were unstable:  The structure plan of the East-Man region, then, is based on the concept of a polarized region centred around growth nodes which manifest themselves from the total urban system in the region. It is also grounded on the premise that economic development does not occur uniformly over the spatial extent of the region, but rather tends to develop nodes of concentration which in turn generate the necessary growth and identify growth centres of various sizes. If this phenomenon is viewed in terms of growth, it would seem that in fact this pattern of concentration is both inevitable and a necessary condition for growth itself. The  quantitative  approach  was  justified  duplication of services in numerous  by  listing  benefits  such  as  avoiding  centres, promoting concentration of services  and manpower to make the region more attractive, and stimulating economies of scale  (ERDC, 1970:19-22).  The  authors  appear  to  have  foreseen  opposition  to  settlement shifts and tried to easy tensions by adding the following caveat: This does not mean that emphasis on growth centres as a regional policy implies the abandonment of the rest of the less prosperous parts of the region. On the contrary, this policy will generate enough economic activity and centrifugal force to effect the uplifting of the rest of the region. (ERDC, 1970:22) This strategy  of identifying and favouring key centres merges  neatly with the  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT province's  development policj . The history  Chapter  3  demonstrated  industrialization. development  that  Comments  process  ERDC's  hierarchial  COMEF  strategy  and  focused  consolidation  the  locating  analysis  fit  COMEF  likely  in  well  was  stressed  centres  for  as  extension  an  provided in  converging  on  rationalizing  the  expansion.  The  government  and  economic of  by providing data describing economic relationships  investors. on  government - policy  from  region, where future growth was potential  of development strategy  r  Linking  industrialization, as  their  all  / 80  within the  likely, and the range of services available to three  the  together  COMEF  recommended  shows  report  the  Province's  emphasizing  development  process,  activities  hierarchy  and  the  and ERDC  establishing where investment would be targeted to produce the best results. The RDC was serving as an extension of a process directed from the Provincial level.  Other ways in which the RDC  report indicates that the Province was providing  direction are: 1. that the ERDC's four long-term objectives reflect the same comprehensive concepts outlined by the COMEF; 2.  that the ERDC simply stated that their work would be confined to the "framework" provided by senior governments;  3.  that beyond statements about local participation, there were few signs of local input. The substance of their report (their quantitative analysis) did not leave much room for public input.  Given the following: the RDCs  activity in  1970 conformed to the development  process outlined by the COMEF, the RDCs long-range objectives corresponded to those  outlined  government's  by  the  COMEF,  the  RDC  placed  themselves  within  senior  "framework," and there was no evidence of public input, one can  conclude that the ERDC was acting as a vehicle for Provincial objectives.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  /81  Regarding point # 2 : The Committee was unclear on what balance was between economic and more comprehensive objectives. The COMEF  report was  expected  written such that RDCs appeared to encompass  comprehensive development concepts. But; as demonstrated above, the clear and  practical  advice  only  addressed  industrial  recruitment  and  polarized  growth.  The ERDC's quantitative analysis indicates that the RDC defined part of its role  as  assessing  the  economic  vitality  of  communities.  The  RDC  was  creating a map of the region and preparing evidence to recommend a more ideal configuration of settlements. Lesser towns and villages  were seen as  linked to the propulsive centres, much like Figure 2.1 describes in Chapter 2. Also in Chapter 2, Weaver and Jessop were used to describe functional integration.  Integration  involved  the  evolution of  a  spatial  hierarchy for  economic activities such that lower units in the hierarchy were forced to specialize in order to fit the imperative planned by higher level units. In the authors' parts  model decision making  of the world. Research  Mass production was  head offices located in relatively few  and development occurred in a few more.  dispersed to many  more centres. The implication of  ERDC's research was that industry and services were collecting in two or three regional centres while surrounding communities found a role supplying labour,  materials,  or  other  goods.  Weaver  and  Jessop's  definition  of  integrated settlements resembles the vision East-Man RDC was supporting in their 1970 report.  ' Earlier  in  / 82  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT this  section four  long-range  ERDC  goals  where  identified. To  paraphrase, the goals involved: improving local quality of life, maintaining the  ecosystem, organizing  the region  in  harmony  with  local  needs  and  natural capacity, and integrating planning in all RDC regions. The message projected by the RDC  was that regional planning would bring more than  economic benefits. But, between the RDC takes  shape  is  regional  growth  industrialization strategy. The RDC  and Provincial initiatives all that  centre  analysis  and  a  provincial  talked about ecosystems, quality of life,  and residents improving themselves. But, they did not act directly on these things.  If  the  RDC  (ERDC, 1970:5)  report  is  leaves  examined  an  with  impression  regard  that  the  to  ecology,  the  report  RDC  had  foreseen  and  engaged in sustainable development long before the rest of the country was aware of sustainability: "Development," then, is seen to be taking place in two ways: 1.  By the gradual cultivation of the natural ecosystem through the stimulation of understanding of it and the application of technology to increase its capacity for supporting human activities (as opposed to merely 'exploiting' the natural environment in a destructive manner;  2.  By the gradual enlargement of opportunities within the region for individual people, and groups of peoples, through which they may develop themselves.  Despite  the  appearance  strategy  was  the  COMEF  did  mention  only  of  progressive  concept land  use  that  thinking,  the  planning  RDC being  economic  report  dealt  integrated  development with. The with  RDC  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT operations.  However,  the  1970  report had  no  explicit land  / 83  use content,  especially not associated with ecosystems management.  Finally,  observations  Manitoba's RDC  from  a  regional  economist  not  associated  with  approach indicate that documents from the Province, and  RDCs, make the initiative seem more influential than it initially was.  In notes from a conference held to debate Manitoba's economic future, T.D. Brewis was asked to describe Provincial approaches to regional development. In  the context of describing  Manitoba's  approach  the  speaker  mentioned  RDCs in the following terms: The Regional Development Corporations are still at an early stage in their evolution and for the most part their roles, procedures and staffing are still the subject of discussion but it is hoped that they will be instrumental in producing a consensus on the steps necessary to achieve more rapid growth within the respective regions...As experience is gained, it is hoped that they will be able to draw up comprehensive regional plans. So far this has not been done. (Conference on Economic Development in Manitoba, 1971:70) There was an eight year span between COMEF's these observations.  From Brewis'  introduction of RDCs and  perspective RDCs were still undeveloped  entities.  4.2.3. Discussion of the  In  First  Period  this section information collected regarding events between 1963-1973 will be  used to answer  the three subsidiary  questions  outlined in Chapter 2. Material  representing the 1963-73 period indicates the following: 1. Provincial development policy became focused on industry and employment;  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 84  2.  Provincial government followed a growth pole strategy, while the East-Man RDC followed a growth centre strategy;  3.  During the 1963-73 period the RDC was acting as an provincial policy, and local participation had a minimal role.  1. In  the  business,  1920s  of  rural residents identified the influence of world markets, big  and urban politicians as their problems. The U F M  force with  extension  a popular mandate  became a political  to promote rural concerns and reform the old  power structure.  Since  those  early  days  the  meaning  of  rural  reform  became  significantly  narrowed. Bracken was not in office long before rural reform was equated with economic diversification. The business  community  actually  became supporters of  the farmer's movement, and the cornerstone of Bracken's diversification schemes.  The  Norris  government  brought  even narrower  meaning  to rural reform. The  Conservatives made clear their belief that industrialization was the key to future development.  The  government's  advisors  saw  the  province  headed  into  an  employment crisis and recommended that priority be given to recruiting industry and creating new jobs.  2. To open the 1963-1973 period Harvey and Associates  were cited associating  regional development in Manitoba with growth pole theory. Given the information gathered regarding  Provincial and East-Man RDC  activities  during  this period,  there is some similarity to growth pole theory but it should not be overstated.  At the Provincial level, the Roblin government won an election because of the  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 85  party's promise to modernize the province. The route to modernization was seen as industrial growth. Perroux's capable  of  stimulating  the  definition of growth  growth  of  linked  poles was  industries  Propulsive firms stimulating growth in linked industries was  in  propulsive firms economic  space.  precisely what the  government was looking for. The Manitoba Development Fund began using all the government and local resources at their disposal to recruit large scale industrial clients. The province's strategy corresponds with growth pole strategy  in so far  as the focus was on industry.  When the ERDC's strategy is considered apart from provincial strategy,  growth  centre theory appears most influential. The ERDC report was written as if key communities were themselves propulsive industries. The East-Man organization was assessing the role of service centres in regional development, and the economy of urbanization is not necessarily related to growth pole theory.  ERDC's hierarchial analysis concentrated on numbers of activities and diversity of services  per locale. The report also spoke of benefits  economies  from agglomeration  of scale. The content of their report indicates  considering consolidation  more with  development. With  urbanized  surrounding this  Jessop called it, it was efficiently, thus  areas  as  engines  communities  consolidation,  or  as  functional  that the RDC  and was  for  growth,  and  presenting  the  regions  best  hope  for  Weaver  and  integration  as  argued that all local services could be provided more  offering local residents  the best conditions  for supporting  any  enterprises. Whether or not exogenous industry became involved can be considered a  separate  issue.  What  was  important  at  the  regional  level  was  functional  /86  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  development in general rather than industrial development in particular, and this distinction separates RDC planning from growth pole theory.  The ERDC report was also dedicated to developing economic relationships within the geographic limits of eastern Manitoba. Perroux's theory of growth poles was not devised exclusively for a regional framework. Consequently, activity he related to the growth growth 1970  pole did not necessarily  pole. Harvey ERDC  report  and  Associates  demonstrates  occur in the immediate  have  that  muddled  the  RDCs  vicinity of a  Perroux's  distinctions. The  primary  interest  stimulating ' activity amongst rural towns and villages.  was  in  The deliberate premium  placed on focused activity marked another difference between growth pole theory and the RDCs approach.  Because  there were similarities  to growth  pole theory at the Provincial level,  there is some support for claims  made in the Harvey  and Associates  report.  However,  development  hybrid:  to  the  ERDC's  theory  of  was  a  linked  the  Province's strategy, but drawing on growth centre theory. Harvey and Associates' conclusion did not accurately reflect the regional development theory taking shape in eastern Manitoba.  3. The 1970 East-Man report paraphrased the comprehensive concepts raised by the COMEF. But, the RDC also stated that local objectives had to fit within the framework of senior government policies. Although the authors claimed that the study involved regional residents in "a realistic way," the resulting plan did not demonstrate any public input. In contrast, their technical analysis fit in well with  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT provincial objectives at that time by identifying the strongest  / 87  economic centres  and mapping the linkages to surrounding communities. The report presented little local participation or comprehensiveness. What one sees in 1970 is a specialized regional planning staff executing aspects of a development process defined by the Provincial Government.  4.3. 1973/83: THE SECOND PERIOD  Harvey and Associates  highlight  provincial government altering their development  objectives during the 1973-1983 period, and supporting increased local participation in  development  strategies.  However,  new policies  were written in very  broad  terms. Only minor changes to provincial development strategy and the prescribed role for locally-based planning in rural development were uncovered by research for this thesis.  4.3.1. Events at the Provincial Level Harvey  and Associates  (1983:60)  claim the growth  pole phase  ended in 1973  with the adoption of the new NDP government's statement on development policy entitled Guidelines for the Seventies. Guidelines emphasized, amongst other things, the notions that citizens had a right to basic services despite the size of their communities,  and a  role  in planning  and implementation  of public  programs  (Province of Manitoba, 1973:35-50).  In the section of Guidelines for the Seventies (1973:38) addressing rural Manitoba  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 88  the government restated the sources of problems identified in the 1960s, such as: transportation improvements allowing wider travel, mechanization and consolidation changing farming, youth seeking better opportunities in urban areas, and greying of the resident population.  Statistics  from the years  preceding Guidelines do confirm much of what the  report claimed. Farm incomes remained unstable during the period governed by the Conservatives  (although the last years  years with the NDP (1966-1973)did  of Conservative  leadership and first  show relative stability)  (see Figure 3.3). A  significant jump in net income did occur at the same date that Guidelines was introduced. Despite rising to a new plateau, instability remained a fixture after 1973. Overshadowing any increase in net income during the Schreyer years was the consistent increase in average farm expenditures. By 1973 average expenses outstripped any gains in income.  Another  problem  was  identified  as  mechanization  and farm  consolidation.  If  mechanization and consolidation are accepted as indicators of rural change, then the rate of change  has only increased over time. For example, in the period  1951-1961 use of combines in Manitoba increased from 14,477 to 21,935 (Table 3.2). And, where 256,000 individual farms were recorded in 1931, by 1961 the numbers had fallen to 172,000 (Figure 3.2).  A third problem was identified as rural urban migration. Throughout the 1950s and  1960s  statistics  indicate  that  the urban  continued to increase (see Figure 3.1).  portion  of provincial  population  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT Under  the NDP,  between  1971-1975,  the  buoyant  period. Agriculture, manufacturing,  doubled  (Coates  and  McGuiness, 1987:163).  provincial economy and  mining  Table  4.1  output  / 89  enjoyed another all  demonstrates  more  than  that under  these relatively affluent conditions the government was able to institute reforms without expanding the governments debt situation.  Table 4.1 Changes in Revenue and Expenditure, Manitoba, 1965 to 1985 (Thousands) Increase in Revenue Annual Total Amount Average' ($) ($) (*)  Period 1965-69 (PC) 1969-77 (NDP) 1977-80 (PC) 1965-80 1980-85 (NDP) Note:  191,460 821.255 623.3% 1.640.111 885,562  47.885 102,657 209.132 109.341 177.112  21.2 16.1 15.3 17 3 10.1  Increase in Expenditure Annual . Total Amount Average (S) ($) (*) 205,026 841.772 653.033 1.699.831 1.556.443  51.257 105.222 217,678 113.322 311.289  Accumulating Surplus (Deficit) During Period ($)  23.9 16.4 15.6 18.2 13.0  33,285 186.303 (16.389) 203.199 (1,686.681)  'The increase is calculated as a percentage, compounded annually.  Source:Tudiver, 1990:307 Recession reappeared in 1975, and by 1977 the government faced a $19 million deficit. Gonick (1990:35) notes that the government's resistance to raising taxes and operating in a debt position meant additional reforms were shelved. Several MDF  clients, such as the CFI project, were taken over by government, throwing  that  funds  contribution to  development  into  doubt.  The  poor  performance of  government owned enterprises, such as Flyer Industries and Saunders Aircraft, also left a poor impression of the public sector's abilities in business management (Tudiver, 1990:306).  In 1977 Schreyer's NDP government was replaced by a Conservative government advocating severe restraint policies. The Conservatives returned to a development policy reminiscent of the UFM. Private enterprise was once again held up as the  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT only  legitimate  means  McGuiness: 1987:170). priming"  for  Social  interventions  such  fostering  provincial  programs  were  as  electric  hydro  scaled  / 90  development  (Coates  down  with  "pump  public  housing  along  development  and  and  projects. Unfortunate for the Conservatives, their restraint policies came in the midst of a recessionary period.  Munt et al. (1985) reviewed Manitoba's economic growth over the 1970-80s and noted that during the early manufacturing performance  sector  1970s  actually  relative to other  (corresponding  diversified provinces  and  with the Guidelines era) the  expanded.  declined again  However,  after  Manitoba's  1976. Aggressive  restraint policies of the Conservative government, and adverse conditions in world food and  metals  markets  increased in the mid-1970s. Coates  and  McGuiness  were cited as Compounding  (1987:173)  primary  causes.  Plant  closures  also  problems in the Manitoba's economy,  point out  that  the other  western provinces  were reaping gains from oil, potash, and timber.  The economy  was  not responding  to Conservative  strategy,  election the Conservatives were replaced by another NDP  and  in the  1981  government. The new  government had been in office one year when the Harvey and Associates review of RDC performance was released.  4.3.2. Development Strategy i n Guidelines for the  Seventies  Volume Three of Guidelines for the Seventies outlined the NDP  government's plan  for addressing rural problems. Four principles were listed as the "guidelines" for rural policy:  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 91  1. Maximizing the general well-being of Manitobans; 2. Greater equalitj' of the human condition; 3. The Stay Option; 4. Widening Participation.  The  Stay  agriculture  Option described a commitment to creating enough and  local  trade  centres  that  rural  Manitobans  opportunities in  had  a  choice of  livelihood and locations.  The fourth guideline also  highlighted  the Provincial Government's  emphasis  on  public input to rural development. In Guidelines for the Seventies the RDCs were given special recognition for their part in eliciting public comment on rural policy (Ibid. 3 7).  To better understand what difference the Stay Option was intended to make in rural  development,  Premier  Schreyer's  speeches  were  reviewed  (Beaulieu, 1977:164-165) and the following excerpts were found: The principle of a 'Stay Option', a series of programs dealing with agricultural problems and rural life generally, is to give farm families and people living in rural communities the option of maintaining their present life-style instead of allowing economic pressure and shortsighted policies of centralization and consolidation to coerce people into leaving their homes and having to resettle in Winnipeg or elsewhere. We are serious about doing those things that are necessary to assure a future for rural Manitoba, and we are working unceasingly to make the Stay Option a reality. There are two basic aspects to the Stay Option. The first are agricultural programs designed to make it possible to maintain the family farm and to raise farm incomes to a reasonable level, not just one year in every five, but on a long term basis. The second aspect of the Stay Option is to maintain a level of investment and services  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 92  in rural areas so that people do not become dependant on Brandon or Winnipeg and so that business activity and employment opportunities and everyday social amenities remain comparable to those enjoyed in urban areas.  Guidelines for the Seventies marked another significant shift in provincial approach to  development, and  should  RDCs. Like the UFM's  have  changed  non-partisan  the policy  environment  platform and Roblin's  surrounding  industrialization, the  NDP had a new plan for taking Manitoba into the future. Centralization of rural activities  that  had  been  promoted  condemned, and more attention was  by  the  previous  government  was  now  focused on social costs related to polarized  development. Spreading growth across the province on a balanced basis became the new objective. The introduction to each volume of the Guidelines contained a preface prepared by the Premier which spoke of "bringing about more equality of opportunity and eventually more equality of condition."  While speeches and policy statements emphasized local participation and broader social goals, the government's system for regional planning remained limited. One example of how the government conducted planning in the rural setting can be found in the party's Northern Development Strategy. This strategy was developed by a government policy unit known as the Resource and Economic Development (RED)  subcommittee. Loxley (1990:318) explains that the RED  established ministers, economics,  by  the  Cabinet  and  consisted  of  a secretary with full deputy minister engineering,  subcommittee's  might  land-use was  planning  enhanced  provincial government and DREE.  by  and being  a  group status,  of  influential cabinet  and technical staff in  computer the  subcommittee was  point  science. of  The  RED  contact between  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT Following  the principles laid out in the Guidelines, the subcommittee  stimulate  northern  programs  and  government's improving  development  expenditures  in  that  by  co-ordinating  region.  Beaulieu  various  (1977:156)  tried to  government found  the  priorities for northern development were on use of local resources,  quality  opportunities,  economic  / 93  of life, strengthening  and  "...the  people's  The Pas  progress  to  as  the focus  economic  of employment  independence."  While  government line departments were instructed to observe the priorities stated above in their policies and plans for northern communities, there was a significant flaw in the Government's new strategy.  The entire scheme was the product of a small planning committee buried within senior  levels  of government  and  administration.  While  public participation  was  discussed in government documents, the provincial structure did not lend itself to popular  control  government's  of  the  planning  unprecedented  process.  willingness  to  Loxley allow  (1990:323)  community  commends  representatives  the to  access information. However, in an earlier article the author points out that only groups  established  process  (Loxley,1981:151-82).  consultative  by  the  government  role. Professional  In  were  willingly  admitted  addition, recognized groups  planners  into  the local  were limited to a  still controlled decision making, resource  allocation, and budgets.  The RED  subcommittee's structure and their northern strategy demonstrate that  regional development remained highly centralized, and diminished the government's ability to accommodate locally-based development.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT Despite  the government's  tight  reign  on  regional  initiatives, their support for  rural development should not be discounted. Helgi Austman Deputy  Minister  for  the  Manitoba  Department  programs  implemented by  Rural  of  Development  Agriculture, the NDP  made  between  and an  / 94  (1978:78), Assistant  Regional  extensive  1973-1978  Division  of  the  inventory  of  the  to support  their Stay  Option in rural areas. Table 4.2 provides a listing of all the initiatives within Austman's  inventory, and a brief description of a few of the new  programs.  Austman's description of some programs had to be omitted in order to fit all the programs  into  organizations  the  was  table.  However,  excluded. In  no  description  mentioning  total, thirty-one programs/services  locally-based  are mentioned,  but only one short statement links the RDCs to any of these initiatives. The remaining  thirty  involve  a  direct  link  from  government  departments  to  the  targeted groups. Austman's inventory demonstrates how government continued to expand direct intervention into farm aid, infrastructure, employment and training, and social services. In contrast, the government resisted becoming a competitor in the  marketplace  influence  and  regional  offered little  direction on  how  development. Like the previous  local  organizations  Conservative  could  government, the  NDP preferred to maintain direct control over initiatives, rather than handing the responsibility  down  to  rural  organizations.  The  NDP  also  preferred programs  which enhanced the ability of residents to participate in the marketplace rather than searching for an alternative system for meeting needs.  Like COMEF,  Guidelines presented a comprehensive vision. The NDP  must be  acknowledged for implementing reform through cost of living tax credits to low income  families,  public  automobile  insurance,  public  health  insurance,  rental  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT housing  regulation, and many  development were not as  / 95  other institutions. However, initiatives in regional  comprehensive as the document's  language  suggested.  The reform-minded NDP did not shift private investment from its central role in provincial development, nor did it open up regional development to local control. Like their predecessors, the government also preferred public investments in social Table 4.2: Summary of Programs Implemented to Support the Stay Option PfogtM/folity t i n  I D t s t r i p t i o o of Sow I n i t i a t i i e s  Agntultaral D*»elop.ent  ileactitatedflanitotaAtriceltaral Credit -land lease Prograa ICorporatioa offered low interest loins for -Fan flackinery Act livestock, tackinery, and Sliding aaterials -rlamtoia leef lacoat Assirance Prograe -linstock laceetin Prograt -lndistrial Silk Eipansion Prograt IFara lirersificatioa Prograa offirid -Hay Assistaact Prograt Itauaeaent adtice, irants, aad 1MM -Fan lands Protection Act ICrop Iwarant* Protraa letised  Eeployeeat and Training Assistance  iProtincial Eeployeeat Prograa kired saeaer Ivorkers to tadertake capital works on fares KFole bares, lay skelters, barns)  Prograa T i t l e *  -Capital dorks Acceleration Prograt -Fare laboer Placeaeat Prograt  IStadent Teaporary Eaployeeat Prograa Iprotided jobs paintiag bam, fiiieo. ftnctf, letc. (oral Infrastrtctere  -Soatktra Itanitoba Airport Assistance Prograe -lecreatioa Facilities Srant Prograe -libraries Sraat Prograt -Park Planaia| Assistaact Protraa Hlaaerots riral totting prograa*  ICost stared prograas sapportcd grants for Ion-fare iaproteeeots to sewage aad drainage  « i  iVeterinary cliaics were btilt vitk FederalIProfiacial finds ICotiiaity Haaageeeat Prograa tfftred '.analytical and adtisory k«lp for riral f i m Cotaunity Strikes  iHott Ecoaoaic Prograa, Child lay Cart Prograa -Couiaity Affairs Prograa ICatldrea's lentil Prograa t i l iocrntfd .'bealtk services i i riral Heaitoba  liral Incott Assistant  {Property Tai Credit Plat aad tat Cost of iliiieg Crtdit flat vtrt tt redistribete iiMOM te Iw iacote rtral faoiUes  liral easiness Assistance IStall easiness Assistaact Prograa profited iiaforeatioe, coinstllieg, aad t rtftrral lierrice tt riral first  -Stall lisiatss flteageeeat Prograt t I  in'Tat sit hgiosil ttitlopttat Corporation Iproeidt iafortatiot tt coaauities tt 1 potestial laiHtors aad taty art tf team, ItatktsiMtic sapporters tf tat 'Stay Optioa." Based on Information axtractad from: Austman,1978. ••Quoted from pg. 88.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 96  overhead capital to address their objectives.  4.3.3. The Impact on RDCs One  year  after  the  provincial  government  introduced  Guidelines the  conducted an internal review, and released the results as a submission  RDCs to the  government of Manitoba (MRDC,1974). The purpose of this report was to justify enhancing the role for RDCs in rural/regional planning.  The  report  began  Development  by  presenting  Corporations  are  an  entrenched  fundamentally  role  responsible,  for to  RDCs, their  "Regional  regions,  for  regional planning and development" (MRDC,1974:i). To reinforce their position at the local level the authors legitimate  voice  for  executive summary  pointed out that COMEF  regional  and  the authors  community  also highlight  levels  established RDCs as the (MRDC,1974:11).  In  the  their professional resources, local  base, and regional perspective. The RDCs authors were presenting themselves as uniquely suitable for locally-based planning.  Throughout  the  participation,"  remainder  and  of  this  report  their record of involving  the  RDCs  emphasized  "grass-roots  local people in a wide  range  issues affecting regional development.  To explain their "grass-roots"  concept the report 1974:11) stated:  The RDC is involved in "grass-roots" planning for development. In this process, the RDC acts as a "technician" to bridge the gap between the local people, the "layman," and the senior governments, the "experts." In this role the RDCs present regional needs and opportunities to senior government, and  of  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 97  conversely interpret initiatives, programs and changes to local people.  Within the context of "grass-roots" planning the RDCs described a process: for expediting the total resource development (i.e. development of physical, economic and human resources) in the region by: a) Identifying the needs of the region; b) Researching these needs and opportunities; c) Documenting these needs and opportunities in an appropriate form; d) Mobilizing the resources necessary to ensure that these regional needs are resolved and/ or regional opportunities are developed. (MRDC,1974:13)  The  four  activities  government's  listed  policies as  representation of RDC  above  could just  the Stay  as  easily  serve  the previous  Option. However, what is new is the  activities as "grass-roots" planning. This term did not  appear in reports from the preceding period and its appearance in 1974 corresponds highlighting  with their  the  NDP's  redirection of  "grass-roots"  aspect  in  regional reports  policy. sent  Seeing to  RDCs  Provincial  Government suggests that they were proving compliance with the Province's new approach to development.  Table 4.3 contains a summary highlight  of the activities which the RDCs chose to  in their report as examples of their contribution to "grass-roots"  development.  The  authors  divided  RDC  activities  into  two  categories  (Resolving Regional Needs, Developing Regional Opportunities), and also listed several efforts to co-ordinate local and government efforts. Efforts in  THE  RDC IN MANITOBAN  REGIONAL  DEVELOPMENT / 98  Table 4.3 Summary of RDC Activities, 1974 rti'l  :  R e s o l v i n g Regional N r i c s  s:i  \ '. \ :• \ \  1  *•  i*SSiSt50  •  • V '.- * «.  V \ \ -  •• W'.W.  Devslooing Regic; iI G p p o ' t u m t i e s ;  *  -. \ \ V  \ *T \  ;  a?;ns:-;:iips *.  v V '. \ \-  v *•  -\ «. '(-V \ '.  -  C'eitiOr  •of a ...::. cevslopsent i b o i r d sno l i s c : gcver.iasnt- to i s e v,.i ;northa:n port f a c i l i t i e s •. ' . T V * * ». V  \ v ••»«. V  l a s t -"an  V * * V T. •'.  V V V v \ ••. J v •» \ V V S  •'. '. '. \  \- •«'.'-  V V*.  '. ^ v v -. -. V  Sesearcneo and a s s i s t e c i n s s s v i b i i s h n e n t of a -rustc-m siaeghtering operation Researcne-j c r o : a i v e r s i f i c a i i o n anc a s s i s t e d the =stab 1 i = hsser;: of coaeer;:»l crsneerr> farming  \ N V \ •- •. S 'J  aiest-flan  l E s a a i n e d highways as an iiapeoiisen; economic ; development anc pressr.tsc ; f i n d i n g s to senior .governments  Interlike  .Conducted s t u d i e s of housing . h e a l t h s e r v i c e s , anc • a g r i c u l t u r e , ana presented ifindings to s e n i o r !governments  Parkland  {Researched de«and f o r i l o c a l a i r s e r v i c e and !iobbieo government to !provide a i r t r a n s p o r t a t i o n  A s s i s t e d i n f o r a a t i o n of a fooc A j o i n ; ef-'ort to p r o v i d e p r o c e s s i n g o p e r a t i o n , and s sari.etmg c a t a and st.idy the commercial gut? brse;:r>o o p e r a t i o n f e a s i b i l i t y of l o c a t i n g a ssc-psing u i i i n the r e g i o n Studied p o t e n t i a l economies of s c a l e f o r a group of d i a r y farmers vnich r e s u l t e d i n the f o r a a t i o n of a new d a i r y company  Organizing p u b l i c a e e t i n g s for Parks Canada's to conduct part, plan reviews  -eaoma vaney  Helped i n i t i a t e a snowmobile f e s t i v a l as part of a t e s t of l o c a l tourism p o t e n t i a l  Central Plains I  F a c i l i t a t e d formation of a committee to study and e s t a b l i s h a vegetable p r o c e s s i n g plant  Baaad on Information axtracted from: MHDC. 1974:18-24.  Compiling cemeur.ity a w r e g i o n a l s t a t i s t i c s f o r the SDCs and government agencies  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT co-ordination  are  (Government-RDC indicates  in  Partnerships).  that  documenting,  presented  the and  RDC  Reviewing  role  presenting.  Table  still But,  4.3  a  third  category  projects presented in Table  centred when  as  / 99  on  evaluating,  compared  to  the  4.3  researching, spatial  and  hierarchial focus of the previous ERDC document, the projects in Table 4.3 demonstrate that by 1974 most RDCs were channelling their resources into facilitating, rather than undertaking development initiatives.  After  presenting  the  projects  listed  in  Table  4.3  as  evidence  of their  importance at the local level and conformity with contemporary government objectives,  the  authors  stated  several  more effective in their regions included: 1. Provincial Government regional planning;  recommendations  for  making  RDCs  (MRDC, 1974:27-28). These recommendations  officially  recognizing  the  that  representatives  role  of  Municipalities insuring corporation's affairs;  3.  Provincial representatives on RDC Boards coming (Branch directors or Assistant Deputy Ministers);  4.  RDC staff developing contacts organizations and agencies;  5.  Supplementary funding arranged for RDC activities; and,  6.  RDC Directors and Cabinet Ministers giving more importance tp the Cabinet Committee representing the corporations.  a  in  in  2.  with  participate  RDCs  the  from senior levels  wider  Two points stand out from the description presented in  range  of  local  1974. First, the  report did not focus on participation by residents in rural planning. Instead, the authors  were demonstrating  new objectives stated by the NDP  that  RDCs  already  adequately meet the  for serving rural residents. The MRDC's  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 100  focus was on enhancing RDCs as regional planning institutions.  Second, comparing the 1970 East-Man report and 1974 MRDC report, the most noticeable difference was that the RDC network did not discuss spatial analysis in  1974. The RDC  network, as  a whole, appeared to be more  accepting of actions selected by local people, and less concerned than the East-Man RDC analysis.  was in 1970 with idealized plans derived through technical  RDCs  in  1974  were more  action-oriented: the product of  RDC  effort was now local initiative, rather than maps or technical data.  4.3.4. Discussion of the Second Period In answering the three subsidiary questions, events during the 1973-1983 period indicate the following: 1. Provincial development policy emphasized social priorities, but the party also outlined limits to their actions. 2.  Provincial government adopted the same measures as their predecessors, and the RDCs were following a strategy similar to Bryant and Preston's local economic approach.  3.  Local organizations participated in several commercial projects, but gained only marginal movement towards non-economic local participation.  1.  At  the  Provincial  level,  the  Government  distanced  themselves  from their  predecessor's approach to development by outlining a host of on-going  problems  amongst  for  rural  communities.  The  NDP  solution  came  in  Guidelines  the  Seventies, which stressed a higher priority for social considerations in development policy. In his speech outlining the "Stay Option," the premier clearly stated that his party's intention was  to end the consolidation and centralization which had  been promoted by his predecessor. In  this regard Harvey  and Associates were  correct in stating that Guidelines broke from the growth pole policies adopted by  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 101  Roblin's government.  While the NDP were trying to promote the image of social and economic balance in their policies, the Premier also made it clear that his party had no intention to bring wholesale change to the fabric of the Province's economy. Comparing Manitoba's  NDP  to the Liberals  in America, the Premier stated  that,  "Both  approaches call for change, not radical change for change's sake, but change in an orderly, moderate and progressive manner" (Beaulieu, 1977:3). Free enterprise would remain the catalyst of the economy, and however social-economic balance was going to be achieved, the Premier was reassuring people that the province's businesses would not carry all the costs.  2. In  contrast to the sweeping changes  implied in Guidelines for the Seventies,  the government's intention was to respond in a conservative fashion rather than transform the workings of the marketplace. McAllister (1984:69) put NDP reforms into perspective by pointing out that although the NDP had increased government intervention in the economy, so Parti  Quebecois  governments  had Liberal,  elsewhere  in  Conservative,  Canada.  In  Social  terms  Credit, and  of regional/rural  development, spatial consolidation was no longer mentioned, but there was little difference  between  the  practices  of  the  NDP  and  the  practices  of  previous  Manitoban governments, or governments elsewhere in the country.  One example used to illustrate the NDP's continuity with the past was their budgetary record. During their term as government, the NDP did bring change to the  tax  credit system,  automobile  insurance,  health  care, and  several other  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT / 102 programs.  As  Table  4.1  demonstrates,  reforms  were  brought  about,  while  accumulating a revenue surplus. The party was fortunate in being in power at a time when the economy  was  buoyant  and could accommodate  social priorities.  However, comparing their fiscal performance to the Liberals preceding them and the NDP that followed them, Schreyer's government behaved in the same manner as had their predecessors. Budgetary surpluses were consistently recorded by both Liberal and NDP  governments  until 1976, indicating that Schreyer's NDP  were  no more willing to engage in extreme fiscal actions to achieve reform than were the Liberals. During the last year of in office the NDP did record a deficit, but even the deficit was minimized when compared to the deficit budgeting apparent between  1979-1985.  The  Schreyer  government's  budgeting  behaviour  speaks of  continued conservative advance rather than a daring social agenda.  A  second example  sub-committee had  of the NDP's  reserved approach to reform was  and their Northern Development  assembled  an  organization  related  Strategy. While  specifically  to  the  regional  the  RED  government  planning,  that  organization was nested well inside senior levels of public administration. Neither the sub-committee control  of  the  or its  planning  staff implemented any process.  Planning  significant  powers  increase to popular  remained  jurisdiction, and the northern residents were relied upon only  within as  Provincial  a source of  feedback.  At the regional level, the MRDC was prescribed  by  Bryant  and  Preston  pursuing in  Chapter  a strategy 2  of  similar to the one  this  thesis.  In  the  examination of locally-based development theories outlined in Chapter 2, Bryant  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 103  and Preston advised local organizations to co-ordinate their resources in order to enhance their control over commercial activity. Simultaneously, the authors advised local organizations to dovetail their efforts with the framework provided by senior governments.  With  regard to the RDCs during the  commercial  development.  Items  a-d,  1973-83 period, the focus was listed  earlier  as  components  also on of  RDC  "grass-roots" planning, were articulated more precisely in the 1974 report than in reports from the previous  period. However, they describe essentially  the same  activities stated in East- Man's 1970 report. In both periods evaluation of needs, research, and documentation RDC  supporting  economic growth  activity. In addition, the majority of the projects in Table 4.3 still focused  on commercial development and infrastructure. There is RDC  were at the heart of  (Parkland)  some  evidence of one  venturing into parks planning, but Parkland's project represented  the only departure from the conventional economic development mold.  While the 1974 RDC within  the  regions, part  report demonstrated the commercial focus of their activitythe of  report  recognition  as  the  connections  between provincial  was  province's  also  vigorously  planning  government  and  advocating:  structure,  and  the various  RDC  (a) (b)  formal  enhanced  Boards.  The  emphasis in the 1974 report was on institutional design and modification rather than the contributions of local residents. All the recommendations contained in the report put forward ways and means for RDCs, not residents, to become more influential. RDCs took for granted their suitability as a local organization, and the priority in 1974 was to enhance the RDCs place in the Provinces regional  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 104  development structure. The actions described by the RDC network in 1974, within their  regions  and  with  the  provincial  government,  corresponded  to  the  regional-national integration strategy outlined by Bryant and Preston.  3. The RDC-public relationship featured heavily in the 1974 MRDC report, but close examination indicates that public participation was not as comprehensive as suggested.  Participation, measured  in terms  of projects under RDC  supervision, was  well  documented in the 1974 report. Table 4.3 demonstrates that the RDCs assisted many initiatives based on local needs. Although most were commercially-oriented, the  Parkland  RDC  was  engaged  in  a  project without  immediate  commercial  potential. The RDCs were helping local groups to participate in specific projects. However, measured in other ways, RDCs were making marginal advances in local participation.  Referring  to  Friedmann's  (1981:14)  comments  in  Chapter  2  of  this  thesis  concerning access to social power, the author argued that poverty involved lack of access  to resources  (such  as  social  organization,  relevant  information, and  financial means) vital for achieving an autonomous life. The author was that  increasing  the  numbers  of commercial  participating in commercial projects, was participation. In  projects, or  numbers  arguing  of residents  not a sufficient interpretation of local  Chapter Two of this thesis, stepping beyond economic analysis  and into enhancing local residents' access to, and abilities to use, resources such as  Friedmann  described was  presented  as  a  significant  trait  of  locally-based  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  /' 105  development.  Whether or not the local projects listed in the 1974 MRDC report led to the kind of participation described above is debateable. In #2 under Discussion of the Second Period, RDC Bryant  and Preston's  the response to Question  strategy was associated with  regional-national integration process. In  their discussion of  the three options for local action, Bryant and Preston had independently identified several of the same resources (local organization, improved information, financial resources), that Friedmann mentioned in his work. The authors were arguing that their process for enhancing a community's influence over commercial development would  also  enhance  the  community's  access  to  "the  bases  of  social  power."  Bryant and Preston believed that their process enhanced local participation with non-economic  as  well  as  economic  underlying Bryant and Preston's  aspects  of  local  life.  Given  the  intent  strategy, one could argue that RDCs enhanced  non-economic local participation to the degree that local projects stimulated the same process Bryant and Preston outlined.  Because  the  participation,  1974  MRDC  it  difficult to evaluate  is  report did not dwell on the strategy whether  RDC  activities  guiding were  local  actually  bringing local people closer to the resources Friedmann or Bryant and Preston discussed. In  1974 the RDC  report stated that ultimately "a development plan  will fail if it is not understood by the people of the region, and if it does not reflect  the  However,  goals in  a  and quote  described an RDCs  objectives mentioned  of  the  under  region's Impact  population" on  the  (MRDC, 1974:12).  RDC,  the  authors  connection to the public as one of "technicians" acting  as  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 106  middle men between the public and government. When activities listed on Table 4.3 are reviewed, RDCs acted either as advocates for some local cause, or as advisors  to some  local group.  In  both cases the RDCs  were behaving  as  a  professional institution separate from, but supporting, their "members."  Describing local  local participation, the RDCs  people  through  their  respective  report states Board  of  that they have involved  Directors,  through  standing  committees, and through special task forces (MRDC, 1974:9). From the description of RDC  structure given in Chapter 3 of this thesis it is clear that the Boards  of Directors, and related committees, consist entirely of municipal representatives or  appointees.  standard  The practice of  allowing  corporate procedure and  only  shareholders  since municipalities  pay  onto  the Board  is  the membership fee  they constitute the shareholders.  In  a  representative  democracy  one  can  also  argue  that  elected officials  do  constitute local participation since, in theory, each official is acting on behalf of their constituents' wishes. In  addition, there also exists in democratic society a  sense that only elected officials can be held accountable for use of tax monies, and RDCs are funded by a form of taxation.  Whatever  the  reasons  are  for  elected representation, Harvey  and  Associates  (1983:4) point out that confining participation to elected officials could preclude the  meaningful  involvement  of groups  and  individuals  that  have  a  legitimate  stake in development activities. A lengthy section of the Harvey and Associates report examined public accountability  and  municipal input in the RDCs. After  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT interviewing  member  councillors  from  several  regions  about  their duty  / 107 to the  public the authors commented "they [the officials] had been elected to keep down taxes  or to deal with 'municipal issues,'  not to engage in speculative or less  than tangible development ideas" (Harvey and Associates, 1984:29). The municipal representatives were interpreting their responsibility as conserving the status quo. In contrast, interviews with the general public revealed three things: most people did not know what corporations did, only a few associated the corporations with their communities, and most felt development was handled outside the community (Ibid. 3 5).  In  their  recommendations  to  Provincial  Government,  the  RDC  network  also  acknowledged the limits of their representation by stating that connections were required with a wider range of local groups. Limited access suggests that decision making  surrounding RDC  undertakings  constituted local participation only to the  degree that municipal representatives reflected citizen's wants and needs.  By accentuating the close link between rural communities and the RDCs, and the diverse  nature  of  local  projects,  the  corporations  appear  to  have  a  broad  interpretation of local participation. Despite this appearance, careful consideration of what the RDCs reported during this period indicates that the definition of local participation was - access to an RDCs Board by municipal representatives. Planning  activities  were  limited  to  a  small  portion  of  the  local population,  therefore, the RDCs made only modest gains in terms on non-commercial local participation.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 108  4.4. 1983/90: T H E THIRD PERIOD  Unlike  COMEF  or  Guidelines, the  Pawley  government  did  not  sponsor  anj  7  exhaustive statement on development policy. Instead, reaction to the Harvey and Associates  report represents the third milestone in RDC  last study  period RDCs, and corresponding government  evolution. During  this  agencies, are noted for  returning to functional integration as the approach to rural development.  4.4.1. Events at the Provincial Level One reason for not finding any comprehensive new plan for development was the continuing threat of recession. Like John Bracken in the 1930s, Premier Pawley was  forced  into  a  damage  control  position.  Between  province from recession became the government's  1981-88  protecting the  most pressing task. The  NDP  managed to soften the recession's impact by restarting direct investment through projects such  as  the Limestone  Initiative. The NDP  hydro electric site, and Winnipeg's Core Area  also returned to the type of social priorities established by  the Schreyer government, providing new legislation  in family  law, rent control  and many other reforms. Gonick (1990:39) emphasizes that in order to meet new demands from 1981-88, public expenditures increased sixty percent. Table 4.2 also demonstrates of any  that increasing expenditure coincided with carrying the largest debt  provincial government  over the previous  20 years. Tudiver  (1990:306)  adds that declining federal transfers account for some percentage of the province's new expenditures, but between 1982- 1985 the Province increased their deficit by $1.6 billion in order to fund job creation and economic stimulation. Expenditures  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT paid  off in terms  of employment.  Manitoba  maintained  / 109  one of the lowest  unemployment rates in the country during the 1980s (Gonick, 1990:38).  In 1988 a new Conservative government came into office led by Premier Filmon. The new Conservative government has been operating in a minority position, has not had much time in office and has announced an election for the fall of 1990. In general, there has not been much opportunity for change by Premier Filmon.  Regardless of the short time in office, the Conservative party found much of its support  in the rural ridings,  (Winnipeg Free Press,March of  1989 and at  that  and has initiated changes  in rural development  18 1990). Research for this thesis began in August  time  there  seemed  to be activit}'  surrounding the  rationalizing of provincial departments dealing with the RDC network. The former Departments  of;  Business  Development  and  Tourism  (BDT),  Municipal  Planning, Water Services (formerly a part of Department of Agriculture), and several  Conservation  Districts  (formerly  part  of  Natural  Resources),  were  compressed into a new Department of Rural Development (DRD). In addition, when asked in August whether the Government would be releasing new policy guidelines to accompany the DRD, Leo Prince (1989), Acting Director with DRD, commented that a document was in development. The re-organization and  new  policy document were indications that rural development planning was under way.  The  most current development  in rural  decentralize government offices. In March  affairs  has been a sudden  drive to  1990 the Premier announced that the  Minister of Northern Affairs would oversee the movement of 692 government jobs  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT from Winnipeg  to various  rural offices (Winnipeg  Free Press, March  / 110  18,1990).  This decentralization was presented as an effort to bolster rural economies as trans-national companies  and federal agencies continued to pull out. Government  decentralization also marks the end point of the three RDC study periods in this thesis.  4.4.2. R u r a l Development Strategy i n the  1980s  While buffering the economy against recession became the government's principal task, and regional development slid to a lower priority, research for this thesis indicates that government departments were still refining the strategy  for rural  economic development.  In  October  1984, John  McGuire,  then  director  of Regional  and Community  Planning within the BDT, wrote a response to the Harvey and Associates report entitled "Role  of the Regional  Development Corporations."  In this  response the  problem facing RDCs is once again set out, but rather than being presented as a  list  of  symptoms  (rural-urban  migration,  farm  closures,  etc.) economic  globalization is clearly identified for the first time in any document reviewed for this  thesis.  The author  (Ibid. 3)  identifies  a  constant  drive  to  apply new  technology as creating changes in social, political and economic institutions: Generally speaking, the trends evolving out of these interactions have been towards greater specialization, scale, integration, and geographic concentrations of people and economic activity. A complex infrastructure has evolved dominated by large urban centres and complex linkages between these large urban centres. We see the shaping of the 'Global Village.'  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / ill  Addressing the implications of globalization for rural areas, McGuire describes a process  of  rural  ghetto-ization  and  alienation. A  ghetto  is  defined as,  "...a  community which has been virtually spun-off from the mainstream of economic activity by a cycle of re-enforcing disinvestment and deterioration" (Ibid.4). In the ghetto-ized  community,  McGuire  states  that  local  businesses  and  amenities  supporting business have been cut off from the surrounding business community.  Alienation  is  described as  the outcome of having  most workers  specialize in  production of components which are most often destined for distant markets and consuming products which came from distant markets (Ibid.4). "Concern about the impact of business decisions on the community tends to become less important relative  to  the  demands  of  the  (external)  markets"  (McGuire, 1984:4, original  parenthesis).  McGuire's comments about globalization and business decisions based on external markets are remarkably similar to the functional integration process recognized by Weaver and Jessop. Both saw fragmentation of production processes eroding the autonomy entirely  and  influence of small  different  from  Weaver  communities. McGuire's and  Jessop's,  and  more  solution is, however, consistent  with  the  strategy Harvey and Associates related to Provincial policies of 1963.  Many rural towns have been left with a handful of small businesses. However, the author does not see this  as  a problem if local development organizations  form initiatives based on, "a wider appreciation of the national and international economy" (Ibid.5). The author sees a symbiotic relationship between small and  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 112  large business. The large firms incorporate large scale operation and the latest technologies. The small firms develop in niches created by the large firms. By referring to mega-projects of the past as a "manifestation" of the big business sector, McGuire infers that government spending has been substituting for large business can small  in ghetto-ized regions. What the author suggests is that rural regions  also  survive  businesses  by  expanding  and  and  exogenous  large  strengthening scale  the linkages  enterprises. To  between rural  paraphrase,  large  exogenous industries can replace massive public projects.  To achieve the expansion and strengthening of linkages, McGuire described the Departments of Industry Trade and Technology (ITT), BDT, and RDCs acting in a coordinated process. ITT international  was  economies. They  to act as  could monitor  change,  business investment and promote trade. BDT quality and types of business competitive business  conditions  to  a window on the national and encourage  new  was responsible for improving the  activity in the province so that ITT  the  world.  exogenous  BDT's  responsibilities  could offer  included  providing  education and consultation, improving networks between businesses  government,  and  (McGuire,1984:6). recommendations  providing The from  means  RDCs the  for  groups  to  role  was  explained  Harvey  and  Associates  attempt  new  and  ventures  when  McGuire  applied  report  to  existing  the  departmental structure. McGuire (1984:10) suggested that:  The RDCs be used as a principle (sic) vehicle for the BDT's community development initiatives but that there be substantial reform both of the RDCs and of the working relationships between the RDCs and the Manitoba Government.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT McGuire's  response  development  to the Harvey  agencies  communities  should  and  have  Associates  committed  report indicates  themselves  to  / 113  that rural  adapting  rural  for competition in a fully globalized economy. The justification for  retaining RDCs in this effort is presented as this: if the Province maintains the position  that  regional  development  programs  must  promote  a  sense  of  responsibility amongst communities for aspects of development, "then any of the alternatives to the RDC model will lead necessarily to the formation of RDC-type organizations"  (McGuire, 1984:2). McGuire believed that if RDCs did not already  exist, then communities would create them.  In addition to McGuire's proposed development strategy, the creation of the DRD in 1989 has added another change to rural development. Precise motives for the change could not be uncovered, but Leo Prince (1990) did comment on one result of the changes: the creation of the DRD under  one Ministry  example,  when  and  asked  improves  how  rural  brings more rural-based departments  inter- departmental communities  can  policy  enforce  co-ordination. For development  created by RDCs, Mr. Prince commented that a plan assisted by an RDC  plans can  be forwarded to the Minister of Rural Development for recognition as an Official Economic Development Strategy.  After official recognition other departments are,  as Mr. Prince said, "made aware" of the Strategy, support  the  Strategy  by  co-ordinating  provincial  and an effort is made to  initiatives  in  the  area  and  steering new opportunities to the appropriate regions. The government's sectoral divisions have not been altered (Industry trade and Technology, Agriculture, etc. still exist)  but the Ministry  of Rural  Development  has  an obligation to keep  other departments aware of the regional implications of their work.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 114  The decentralization initiated by Premier Filmon constitutes a third event with implications for the RDCs. At the time Mr. Prince and Ms. Van Schie, interim manager for the East-Man RDC, were interviewed for this thesis no movement had occurred. The DRD Department confirmed.  hopes Ms.  to  Van  has  achieve Schie  prepared an internal report describing what the through  also  stated  regional that  offices  but  the impact  nothing  has  been  of decentralization is  unclear at present. Both agreed that adding regional offices adds more complexity to the rural development system  and the potential overlapping and duplication  with RDCs has generated indignation.  4.4.3. The Impact on RDCs In  McGuire's  paper the government  and RDCs  were joined by  a partnership  designed to accommodate the world market. The paper also described RDCs as a vehicle  for  delivering BDT  before the DRD  initiatives. McGuire's  paper  was,  however, written  was introduced. Before the current RDC-government  relationship  could be examined some indication of whether McGuire's strategy still applied had to be established.  When  asked  whether  or  not  the ITT-BDT-RDC  relationship  described  in the  McGuire response was still applicable after introduction of the DRD, Mr. Prince's reply was elliptical. He did comment that McGuire's response was an out-dated report,  but  other comments  suggest that  the rural development system  does  follow McGuire's proposal. Similar to McGuire's strategy, ITT was still following trends at the national and international level and was pursuing new exogenous businesses. Unlike McGuire's strategy, because of amalgamation  the DRD  has a  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT broader mandate than the former BDT. The DRD  now encompasses  / 115  aspects of  natural resource and agricultural policy along with promoting the enhancement of small business.  At  the  RDC  level,  when  the interim manager  for  the  East-Man RDC,  Ms.  Marie-Louise Van Schie (1990) was asked to define "development," she produced pages which were photocopied directly from the McGuire  paper. Evidently, the  RDC was still using McGuire's ideas to describe their objectives.  Given the examples from both provincial and RDC  staff, McGuire's paper may  miss some administrative modifications, but his strategy still appears to represent the  provincial  development  strategy.  Mr.  Prince's  comments  about  the  DRD's  continued activitj' in small business enhancement, and the photocopies provided by the  East-Man  RDC  indicate  that  even with  the DRD's  creation, development  strategy does correspond with the approach outlined by McGuire in 1984. Having established an outline of the Province's regional strategy, an examination of the East-Man RDCs role is possible.  The first indication of the ERDC's vision of development was found in their long range  work  plans.  In  ERDC's  1986-1990  Five  Year  Plan  the objectives for  development are described as follows: 1. To develop a minimum of four communities prepared to do community and economic development. 2.  To increase development.  involvement  of  the  Eastman  municipalities  in  economic  3.  To encourage and assist in the establishment, retention and expansion of businesses in the Eastman region.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT 4.  4. To prospect for local, national and opportunities for the Eastman region.  5.  To develop a regional association of community business development groups.  6.  To continue departments.  The  six  ERDC  to  work  objectives  with  cited  the  above  international  Provincial conform  and  with  business  / 116  investment  Federal  McGuire's  Government process  fori  mproving local business and strengthening linkages outside the region. While ITT, the  DRD  McGuire's  and  RDCs  divided  model, the ERDC  international  has  gone  a  and  step  provincial  responsibilities  farther and encompassed  in  tasks  from each level.  Another indication of following a McGuire-like strategy with DRD  and RDC  Stay Option was policies  was found in interviews  representatives. When Leo Prince was  asked whether the  still a priority, he cited the Atlantic Region's experience with  supporting  decentralized  development  as  an  example  of  costly  and  unsustainable strategy. When asked what development paradigm the Province was following  Mr.  Prince described how  "splashing"  money  across  every town  was  irrational and ineffective. Selective investment was described as "seed-money," and Mr.  Prince  centres"  commented that  had  been  if, over  fostered  the last  throughout  the  decade, a handful province,  there  of "regional  would  be  fewer  development problems today.  When the East-Man RDCs Manager was asked questions about the Stay Option and the RDCs minimize Schie  the  approach she commented that the RDC  kind of specialization which follows  conceded  that  building  up  regional  members would like to  consolidation. But,  vitality  meant  Ms.  re-organization  Van of  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT relationships  between  some  towns  was  inevitable.  Polarized  / 117  development  was  something the RDCs supported between 1963-1973. Now, after a brief hiatus talk of polarized spatial growth has reappeared.  So far examination of the ERDC during the 1984-1990 period has focused on provincial strategy and the role for RDCs. Some consideration must also be given to the form of local participation during this period.  In  the East-Man region local participation expanded beyond the municipal base  discussed  between  1973-83. The ERDC  1986  1990 Five Year  Plan mentioned  creating local organizations as part of the RDCs economic development strategy. Since  local  organizations  organizations appear  as  were  not  mentioned  in  any  previous  reports, these  a new level in the rural/regional development system.  Later in the five year plan the ERDC expands the explanation of each of their objectives. In the explanation of objective #4 the RDC organizations  describes a role for local  much like what the RDCs, themselves, were doing in 1974. For  example, the ERDC (1990a:3) wanted to encourage each local organization to: prepare a brochure highlighting their communities strengths, weaknesses, and opportunities; budget funds for their own promotional activities; and, establish and government. During  the  maintain  relationships  1973-83 period the RDC  with  the  appropriate  levels  of  network described amongst their functions  within the regions: identifying the needs of the region, researching needs and opportunities, and  documenting  needs  and  opportunities. The functions  in both  periods are similar, however, in 1990 these functions were associated with local organizations, not the RDC.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT In  discussing  objective #5  from the Five Year Plan, the RDC  / 118  also adds that  these local organizations need to develop their own regional association. Comparing what the ERDC describes as local activities in  1990 to activities presented in  1974 by the RDC network as part of an RDCs "grass-roots" planning highlights how many activates have been moved another step closer to the commun^. The East-Man RDC appears to have shifted from facilitating "grass-roots" initiatives to co-ordinating activities amongst a new level of community organization.  East-Man's  1990  One  Year  Work  Plan  provides  other  indirect role for RDCs. The contents of the Work parts. The first part addresses  RDC  work  indications  Plan  of a more  are divided into two  with eleven individual communities.  The second part addresses regional planning.  Table 4.4 contains a summation of the information pertaining to ERDC activities in  the eleven communities.  The projects proposed for  each  community  during  1990 were often unique to each community, but several common projects were identified. The range of projects is represented by the titles associated with each column in Table 4.4.  Examining Table 4.4 demonstrates that most of the East-Man RDCs activity is focused on initiating a local economic development process in small communities (seen in the first five columns). Looking across the list of activities shows that the emphasis is still on commercial projects, but the last four categories indicate that some unconventional activities are also being pursued. Finally, beyond the first five categories there is no particular pattern to activities across the eleven  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT communities.  The random  pattern suggests that  / 1  once the local organization  established the RDC is not imposing any priorities on the communities.  Table 4.4 Activities Aided by the ERDC, 1990  j  T3 <K  r, at  =>  I*  .o  ,22 1  CoMunity  Target  Agency  --  —  -  r *  "  ^ j i <  ^  i  * * * * * * * * * * * * * * * * * * * * * * * * * * * * i * * * * * * * * * * * * * * * * * * *  1  2  Local Cevelopient :  i  Coiiitiee  ;  NOM Existed  , i i  x  x  i  i  x  x  ****************************: ******* ************  3  l o c a l Econoiic  !  i  i  i  *.  —  T;  ui  ui  a. tn «» *-  •**  *r  =  <**  -  ° % ,£  2  lit Ul "C  Ul Ul «  =  (V • O.  2  m ^ «  *s * * * * * * * * * * * * * * • . * \ *  *N**** **-.** * * * * * * * * *  * * * * * * * * * * * * * * * * * * * *  ***V****************  I  ui u»  s  ^  2  ui  if*  J£  =-  I  Dev. Organization 1 ********************  * * * * * * * * * * * * * * * * * * * * * * * * * * * * i *******************  4  l o c a l Development ! Cou  x  i  * * * * * * * * * * * * * * * * * * * *  x  it tee  ********************  * * * * * * * * * * * * * * * * * * * * * * * * * * * * ! * * * * * * * * * * * * * * * * * * *  5 6  Hnnicipality  ! x x  l o c a l Econoiic  x  x  V^*^lVV*t«  * * * * * * * * * * * * * * * * * * * *  x  \  X  I  X  X  X  I  l e v . Organization i 7  Econoiic Dev.  !  Advisory Board  t  l o c a l Chaibcr of  !  D o n e r ce  !  Local Dev.  i  Corporation  1  x  x  X  1  8  •  9  10  l o c a l Development i Coitittee  11  '  i  x  I  X  I  X  X  X  X  X  x  1  C o m m i t y DM.  ;  Corporation  ! Totals I 2  X  3  7  7  i  I  1 1 4  Based on information extracted from: ERDC, 1S80a.  X  1 1  2  1 3  1 1  X  3  ;  i  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 120  The new importance of local organizations indicates that the RDC has grown into a position between provincial government and local communities which resembles being a regional development service. The RDC development at  the community  level, but  is trying to facilitate economic  strives  to remain  apart  from their  decision making.  4.4.4. Discussion of the Third Period In answering the three subsidiary questions, events during the 1983-1990 period indicate the following: 1. Rural development policies economic globalization.  emphasized  adapting  rural  communities  to  2.  Provincial strategy focused on strengthening the connection between international markets and rural communities, the ERDC continued to comply with provincial strategy.  3.  Local participation in economic development expanded significantly, a few more examples of non-commercial projects appeared, and local control was enhanced in the manner Bryant and Preston outlined.  1.  During  the  government  early  priority  1980s  by  appeared, but McGuire's  the  regional/rural recession.  development  No  landmark  was rural  displaced policy  as  a  statement  response to the Harvey and Associates report indicates  that rural development strategy was still being assessed. What McGuire outlined was  the  between  inevitability rural  outlined was  of  communities similar  economic and  globalization,  globalized  and  economic  the  gradual  activity.  to the functional integration process  The  breakdown process  he  described by Weaver  and Jessop. The strategy he presented emphasized business in small communities meeting demands created by large internationalized firms. McGuire was  advising  rural communities to think of outside firms as the engines for development, and that  concentrating  on  the  demands  created  by  outside  firms  could  expand  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 121  opportunities for rural commerce.  2.  McGuire  described  a  three  tier  system  using  ITT,  BDT,  and  RDCs  to  re-establish linkages between rural communities and the international marketplace. The author's descriptions of what each level in the system should be achieving highlights his belief in a need for greater co-ordination between departments, and more awareness of what each part in the three tier system was doing. At the root of his refinements was support for functional integration. The acceptance of integrated  development was  found  in  McGuire's  response  to  the  Harvey  and  Associates report when the author described the trend to globalization. Subsequent discussion of what each tier in the system should do flowed from the acceptance of integration. McGuire was  suggesting that rural development agencies stabilize  rural  strategy  communities  with  a  designed  to  link  rural  production  with  international markets.  An  indication  that  the  Province  is  presently  supporting  a  rural development  strategy equivalent to McGuire's came from Mr. Prince's references to: ineffective decentralized  development  strategy  in  the  Maritimes,  centres" in Manitoba, and his description of ITT, DRD, the  same  tasks  presented  b}'  McGuire.  These  the  need  for  "regional  and RDCs carrying out  comments  recall the  kind  of  hierarchial development discussed during the 1963-73 period.  At  the  regional  represented highlighted  by  level, Bryant  the RDC  the and  ERDC,  was  Preston's  membership  following strategy.  accepting as  a  Ms.  pattern Van  which  Schie's  is  best  comments  one of their responsibilities the  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 122  minimizing of unpleasant results from the inevitable re-alignment amongst rural communities. Information continued  emphasis  on  gleaned from the RDCs work plans also highlighted a commercial  projects  amongst  local  organizations.  In  addition, the objectives expressed in the ERDC's five year plan mimic the process McGuire presented in 1984.  In accepting the responsibility for minimizing the impacts of the consolidation, and by adopting essentially  the same objectives for local development strategy  that  McGuire presented for his three tiered system, the ERDC has adopted the same explanation of, and strategy  for, rural development that the province supported.  The RDCs program did dovetail with the provincial framework.  The continued commercial focus of local activities also indicates that the East-Man RDC  was  organizing  depending on local development to branch out from the process of local  commercial  resources.  The  process  of  organizing  local groups  corresponds with the local development process Bryant and Preston presented.  Bringing the Provincial and RDC  strategies together, Provincial departments were  providing the theories underlying rural development, and the RDC process  for  enhancing  the  commercial  capacities  of  established a  communities  within  the  East-Man region.  3. There remains  little evidence that  increasing  local  commercial development  abilities has led to the kind of participation described by Friedmann (1984), and associated  with  locally-based  development  in  Chapter  Two  of  this  thesis.  By  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 123  comparing projects listed by all the RDCs in 1974 and by East-Man in' 1990, it was  hoped  that  some  indication of what • form  local  participation was  would be noticeable. This comparison revealed that during East-Man  were  engaged  in  two  projects  that  cannot  taking  1990 communities in  be  directly  related to  improving commerce: a recycling project and an historical preservation project. All the  RDCs  combined could list  only  one parks  project in  non-commercial undertakings, East-Man made a marginal  1974. In  terms of  advance in 1990. The  preponderance of activity in East-Man still revolved around commercial activity. However,  Table  4.4  also  contains  a  great  deal  of  activity  surrounding  formation of local organizations. Only one local organization was  the  listed by any  RDC during 1974.  This  crude  examination  indicates  that  important in the development process have  access  resources  to resources  has  gradually  local in  participation  appears  to be more  1990, and that more local residents  (local organization, information). But, while access to increased, effort  remained  focused  on  local  economic  development. The Local groups are generating new ways to enhance business or start  new  small  enterprises, but, in  1990, there is  little evidence of moving  beyond economic priorities.  The East-Man RDC,  and its local organizations, still appear to assume that a  process geared towards enhancing the variety and quality of local business will somehow branch out into more comprehensive achievements. But the framework in which these local projects reside is defined by the Province, and is dedicated to adjusting rural regions to the international marketplace. The tension described  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT in Chapter Two between a senior government's and the objective of increased local autonomy  control over regional  in locals'-based  / 124  planning,  development now  comes into play.  In Manitoba the tension has been entirely avoided because the rural development strategy  has  been based  on  a well integrated  structure  and  strategy has never been shifted to the local level. The DRD the  strategy,  while  local organizations  have  long-range and RDC  been provided enough  rural furnish  latitude to  select and implement the projects which achieve rural adjustment.  Over time government departments and the RDCs have tried to define roles for the various  actors in economic development. Using the COMEF  report's lack of  advice on organizational structure as the starting point demonstrates were  initially  vague.  In  the  1963-1973  period  it  was  shown  that roles  that  COMEF  associated RDCs with everything from natural resource management to industrial recruitment. The COMEF vision and what the organizations actually did were not entirety  compatible. Since  that time roles  have  been refined. Descriptions  and  actual practices fall much closer together. For example, the East-Man RDCs Five Year  Work  Plan  development and  described  a  process  for  establishing  their one year plan provides  locally-based  proof of following  While expectations and reality concerning the responsibilities  commercial the process.  of each institution  are coming closer together, local participation in development is not necessarily being increased.  In  the 1974 report, the RDCs were advocating a larger role in the province's  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT regional  development  system.  In  1990  the  ERDC  appears  to  have  / 125  achieved  greater regional status. The 1974 report listed a series of different projects which various  RDCs  had  assisted.  At  that  time  the  authors  were trying  to show  government that RDCs were intimately involved in community activities. In 1990 the  East-Man  RDC  was  describing  distance  between  themselves  and  groups  responsible for planning and implementing local projects.  Local  organizations  were  undertaking  many  of the  tasks  associated  with the  RDCs in 1974. The ERDC had shifted more responsibility to local organizations, and presented their role as  co-ordinator for community  projects throughout the  region. In as much as the RDC had managed to refine their role as a regional organization, and provided local organizations with more ability to undertake small scale projects, the RDC has enhanced local participation in development.  In  1990  RDCs  remain  non-governmental  and  are  technically  entitled  to  independent action, but one must wonder about how limited RDCs have actually become. In describing the structure of RDCs at the beginning of Chapter 3, the re- organization  of the Parkland  Amongst the changes  to Parkland  RDC  was  the Board  mentioned  as  a  significant event.  of directors was  managers were linked directly back to the DRD.  eliminated and  How non-governmental is this  new form of RDC? Unfortunately the Parkland event is too current for effects to surface.  Another indication of the RDCs confused non-governmental status came when Leo Prince was asked about how RDC effectiveness and accountability is assessed. He  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 126  mentioned that criteria are presently Very loose. Unlike some other development organizations (for example, the federal Community Futures Program) RDCs do not track quantitative measures of "success" or "efficiency" such as numbers of jobs created or dollars spent to create a given number of jobs. Instead, funding to the  RDCs  is  only  conditional  upon  following  basic  management/  book-keeping  practices.  Mr. Prince indicated that some problems have arisen with the present funding approach. One problem was  that RDCs tend to favour municipalities that are  paying members. For example, RDC  sponsored maps of the East-Man region do  not  contrast,  include non-member  towns.  In  Mr.  Prince pointed out that the  province is obliged to represent everybody in the region and is unfavourable position by having RDC Prince  was  exploring comes  from  placed in an  funding used selectively. One solution Mr.  an  American model called "The Star  City  Program" (Minnesota Star City Program, 1989). The "Star City" program outlines an entire local development process, and this program's funding is made available as  development organizations  comply  with  program's  guidelines.  Following  this  model of conditional funding means the local organization is little more than a branch office.  The RDC-Government and  dilemma  over  relationship is funding  and  already very close. The Parkland  accountability  criteria  are  indications  changes that in  future the two may continue to merge. As the two levels jell the entire regional planning system comes closer to one government-based development approach.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT  / 127  From Provincial departments down to the local organizations, fairly well defined functions have now fallen into place. However, the DRD, have  outlined whatever  RDCs.  Local  roles  long-term development strategy  have  been  established  by  and its predecessors,  there is  handing  down  supporting the some  strategic  planning functions, but a gap still exists between the communities and the people defining the overall strategy.  4.5. SUMMARY  In  Chapter  discrete  Three the  periods.  An  evolution  effort  of Manitoba's  was  made  to  RDCs  highlight  was  divided  significant  into three  events  which  occurred during each period at provincial and regional levels. The responses from the East-Man RDC, or other RDCs, to events in each period were also assessed. Given the description of significant events and RDC  responses, answers to the  three subsidiary questions were formulated. Those questions were: 1. What priorities or objectives were emphasized in provincial development policy? 2. What strategies were used to achieve rural development? 3. What role has been established for locally-based participation?  At  the  Provincial  level  three  distinct  development  strategies  were introduced  between 1963-1990: 1. a strategy based on growth pole concepts; 2.  the "Stay Option" development;  emphasizing  social  priorities  and  local  participation in  3.  McGuire's strategy for adapting rural communities to economic globalization.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT / 128 Despite three  the appearance of three unique approaches periods  government  the  Province  has  focused  on  to development, during all  economic  priorities.  presented industrialization and job creation as  The  Roblin  their objectives. The  Manitoba Development Fund, and COMEF report both supported large industry as the  catatysts  for  growth.  Seventies appeared concentration  was  In  1973  the  NDP  to  break  from  growth  no  longer  looked  upon  government's  centre-type favourably.  Guidelines for the  strategy, But,  that  and  spatial  party  never  displaced private enterprise from its catalytic role in the province's economy, and would  not  venture  reforms. The NDP by  Roblin.  By  into  any  radical  budgetary  practices  in  order  to achieve  simply expanded the scope of public expenditures established 1984  McGuire's  vision  for  rural  development  emphasized  revitalizing regional economies by strengthening linkages to international markets.  Throughout the three periods the province's regional policies were based on the belief  that  laissez-faire  development. But,  economic  between  principles  1963-1990  rural  were  sufficient  regions were  for  directing  always  rural  targeted for  some type of effort to attract economic activity. The Provincial government has never  gone  to  the  lengths  Courchene  proposed  for  supporting  maximum  performance of the marketplace. Hence, the government was willing to intervene in order to influence where economic activity took place.  At the regional level, RDC  reports corresponding to each study period indicated  that East-Man, and the other RDCs, consistently followed two principles in their strategy.  First,  RDC  activity  would  compliment  provincial  strategy.  Second,  activities related to rural development were designed to enhance local capacity to  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT cope with economic change. Provincial government has rural  The RDC  strategy  was  / 129  structured such that the  always determined what the long term objective for  development would be. The local component in RDC  strategy  has  only  taken shape slowly.  Over  the  course  of  time  roles  for  each  actor  (government departments, RDCs, local organizations)  in  the  development  system  have become better defined.  What also becomes more apparent as roles are described in more detail is that the distance between some RDCs and the Department of Rural Development is disappearing. The Parkland RDC  has become directly connected to the DRD. The  DRD's consideration of development programs such as the "Star Citj'"  program  also indicated that government agencies are pulling RDCs farther under provincial influence.  While  some  RDCs  East-Man  has  described  a  spatial  taken  purely  and on  the  DRD  greater  have  been  proportions  technical exercise  development in the region. In  used  melding,  over to  time.  establish  1974 the RDC  local  participation  In  1970  an  image  network  the  in  ERDC  of optimal  emphasized the  "grass-roots" focus of all their activities. While local participation was limited to municipal representation, the RDCs recognized the need to broaden the sources from which participation was drawn in their list of recommendations. By the  ERDC  provided  ample  proof  of  stepping  back  from  the  selection  1990, and  implementation of individual projects. Local organizations were undertaking many of the tasks previously managed by the RDC.  THE RDC IN MANITOBAN REGIONAL DEVELOPMENT / 130 There was little evidence from the first period of anj' community-level planning. With the introduction of Guidelines for the Seventies, the RDC network displayed local participation more prominently, but the definition of "local participation" was limited to participation in RDC  affairs by municipal representatives. During the  third period the East-Man RDC  handed more development responsibilities to local  organizations.  The image of locally-based rural development which emerges from this chapter is of local organizations enhancing their ability to undertake initiatives which bring rural communities closer to the objectives that the Province has defined.  5. SUMMARY AND LESSONS FOR LOCALLY-BASED RURAL DEVELOPMENT 5.1. SUMMARY AND CONCLUSION  In  the introduction  resulting  to this  thesis  the marginalization  of rural  communities  from global economic restructuring was identified as a problem. The  intention was to contribute to knowledge concerning what can be done to mitigate the impact of decline in rural communities by analyzing locally-based participation in Manitoban rural development. Many institutions have contributed something to rural development, but the scope of this thesis was limited to the relationship between provincial government and RDCs. The research followed four steps, each corresponding to a chapter. In Chapter 2 several theories of development were examined. The examination demonstrated that each theory interpreted development in  a  different  geographic  way. Three  regions,  of the theories  addressed  development  and these were referred to as Macro-economic  in large  Development  Theories. One pair, growth pole/centre theories, were associated with using public expenditures Adjustment  as a means  for inducing growth  Theory, advocated  minimizing  in specific locations. The third,  government  interference with  market  forces.  Three additional theories, intended for development within smaller units of space, were referred to as Locally-based Development Theories. Within this category one theory from  supported national  adapting  to the free market, one supported  or international markets,  131  and one advocated  selective closure  finding  alternative  SUMMARY AND LESSONS FOR LOCALLY-BASED  RURAL DEVELOPMENT / 132  means for production and exchange in order to reduce dependence on laissez-faire markets.  Of all the theories, three advocated preserving the free market while two sought to alter community and regional linkages to laissez-faire markets. Each however, prescribed different actions for achieving development. Different interpretations of the best course of action were highlighted  in order to emphasize how policies  based on any theory would rest on a particular set of assumptions, The  differences  that  exist  amongst  the  various  theories  also  or values.  highlighted  the  potential for some tension between theories applied at the provincial or national level, and  theories applied at the local level. Each  theory implied that some  measure of control should rest within a given level. Anj' compromise at one level would reduce the related group's influence, and, therefore, some struggle regarding how control over regional policy will be distributed was  identified as  a likely  problem.  Having recognized that policies and theories carry value assumptions, and that a balance  between  consideration, questions  three  provincial subsidiary  and  local  questions  control were  would  become  presented. The  an  important  three  subsidiary  were intended to disclose the following: (a) the values emphasized in  rural development policies at any given time, (b) how policies were implemented at provincial and regional levels, and (c) what form local participation took within the given policy and implementation environment.  The third chapter contained a history of Manitoba's rural/regional development,  SUMMARY AND LESSONS FOR LOCALLY-BASED  RURAL DEVELOPMENT / 133 concentrating on the periods from approximately 1918-1935 and from 1958-1963. This history was intended to illustrate three things: 1. events which occurred prior to the introduction of RDCs, and how well entrenched the laissez-faire values underlying development policy were when RDCs did appear; 2.  that symptoms of rural decline were apparent long before the COMEF or RDCs mentioned them;  3.  that Manitoba has a record of local participation in rural affairs predating the RDCs themselves.  By  1922 the U F M were established as an attempt to insert rural influence into  the provincial legislature. The UFM into  a  pipeline  from  rural  intended to make the provincial government  constituents  to  the  means  for  creating  change.  However, once in office the UFM quickly diminished the preference given to farm concerns. To develop the province, Bracken's government determined that economic diversification laissez-faire  was  necessary.  to rural  government  had  in  economic  supremacy  of  the  given  granted  enterprise  the  diversification was established as the objective, and private enterprise was the  private  stressed  Once  of way,  and  also  diversification.  the right  system  Bracken  limited the  interests. The Premier's  statement  preference that  could be  that market forces would  solve the farm debt crisis of the 1930s, and the tax increases used to maintain balanced budgets the  Premiers  while depression eroded the provincial economy, also illustrated resistance  to  intervening  on  behalf  of  specific  groups  or  communities.  While the rural residents' link to provincial government was diminished, industry was  receiving greater  hydro-electric  consideration. Examples  development  demonstrated  that  of pulp and paper, mining, and Bracken  was  willing  to  sacrifice  public control in order to accommodate private investments. The events in each  SUMMARY AND LESSONS FOR LOCALLY-BASED project also demonstrated  RURAL DEVELOPMENT / 134 was willing to influence where  that the government  activity took place, but not how it was  to take shape. While the UFM  had  come to power as a locally-based organization, as a government they assumed all control  of development  strategy,  and  re-enforced the concept that  government  should minimize its interference in the marketplace.  When  Duff  Roblin  and  the Conservatives  formed a government  party criticised their predecessor's frugal approach to stimulating  in  1958, the  growth. While  belittling fiscal restraint, Conservatives adopted similar laissez-faire values in their new  development  Conservative  policy.  strategy  The  scope  changed.  of  COMEF  public made  expenditures it  clear  was  that  all  the new  private enterprise  would remain the cornerstone for economic expansion. A brief description of the Manitoba  Development  government  was  Fund's  willing  to  activities  make  to  demonstrated support  that  industry  the  had  been  concessions extended  significantly.  The events highlighted in Chapter 3 indicate that by the time COMEF introduced locally-based regional organizations, laissez-faire economics and the central role for private investors were already well entrenched in development policy.  Chapter four involved the examination of RDC evolution within the context of the provicial government's development efforts. Significant political events and regional policies from each period were introduced. The response from RDCs to events at the  Provincial  level  were  outlined,  and  answers  questions were formulated for the three periods.  to  each  of  the  subsidiary  SUMMARY AND LESSONS FOR LOCALLY-BASED When  RDCs  undertaking  were  planning  presented  in  the  activities ranging  COMEF  RURAL DEVELOPMENT / 135 report they were envisioned  from resource management  to improving  communication between community groups. However, the report was  unclear on  how non-economic aspects of development were to be achieved, and unclear on what "local participation" entailed.  Since  the  COMEF  report's  introduction,  evolved into a multi-tiered system  rural  consisting  development  in  Manitoba  has  of several provincial agencies  and  regional organizations. But, material in this thesis indicates that since at least the 1920s the Province has maintained the balance of control. Reports from the ERDC and provincial government, as well as one report from the RDC network, all exhibited two traits: 1. RDCs always conformed to the Province's regional development strategy; 2.  while various strategies were applied at the local level, all have channelled local participation into economic expansion.  Because  the  two  traits  identified  above  have  been  present  in  the  RDCs  throughout the three study periods, this author concludes that the RDCs primary contribution to locally-based rural development has been enhancing the ability of local businesses to participate in the provincial marketplace.  5.2. LESSONS FOR LOCALLY-BASED DEVELOPMENT  The first lesson which can be extended from this study is that any advance towards local participation in regional development will take shape over a lengthy period of time. Advances made by the ERDC have developed over a twenty-two  SUMMARY AND LESSONS FOR LOCALLY-BASED  RURAL DEVELOPMENT / 136  year period.  To consider lessons flowing from the advances made by the ERDC, the definition of "rural development"  presented in  Chapter  2 is  recalled:  "a  process  which  allows rural residents to become more proficient in evaluating what they can do to improve the- quality of their lives."  The ERDC has  satisfied this definition in so far as they have provided more  resources with which local residents can act on events effecting their lives. The ERDC have gradually improved local animation, access to information, and contact with  markets.  Hence,  ERDC  evolution  has  brought  local  residents  closer  to  several "bases of social power," as Friedmann called them.  The  evolution of RDCs  has  also  provided rural residents  communication to provincial government. In  1974 the RDC  with  a  channel of  network recommended  that the Corporations receive more recognition as the legitimate regional voice of rural Manitoba. In 1990 the ERDC has employed local organizations to deal with individual initiatives, and has re- enforced its position as a regional co-ordinator. The ERDC is evolving in accord with the vision presented by the RDC network.  Despite  the achievements  development observers assess  where  experience  such  indicates  in improving  should  a  look  strategy  that  too  adaptive  skills  upon the RDC  is close  ultimately a  and communcation, local  study  as  headed. For  relationship  an opportunity to example,  between  the  RDC  government  and  non-governmental organizations can limit locally-based action. Throughout the three  SUMMARY AND LESSONS FOR LOCALLY-BASED RURAL DEVELOPMENT / 1 Or\ —I study  periods  the Provincial  Government  maintained  their  dominion over long  range planning. Premier Schreyer's 1974 letter to the Central Plains RDC made it clear that the RDCs were looked upon only as a source of feedback in the Province's  process  for  establishing  rural  strategy.  In  1984,  McGuire justified  maintaining the RDCs by stating that if they did not exist, communities would create  similar  within  an  institutions.  RDC  can  In  present  1990  Mr.  official  Prince pointed out  economic  that  development  communities  strategy  to  the  Province. But, Mr. Prince's comments also indicated that these official strategies held no force within the province. Departments  were simply  to keep them in  mind while preceding along their own agendas.  A second example of the connection between RDC action is DRD.  that in  The  1989 the Parkland RDC  changes  in  Parkland  mean  and government limiting local  became answerable  that  development  directly to the  planning  is  coming  directly out of government agencies rather than a locally-based organization. A third example is that the DRD  is considering RDC funding linked to following a  particular development strategy. Such an eventuality would also shift control of development planning from the local level back into government departments.  The  RDC  study  indicates that locally-based organizations  need to monitor the  degree to which they act as agents for senior government strategy. By beginning the development process with the assumption that local organizations must defer to provincial policies, local control is already limited. There is no avoiding the fact  that  provincial  governments  assume  control  over  many  factors  that  a  locally-based organization must deal with: some relationship is necessary. But, the  SUMMARY AND LESSONS FOR LOCALLY-BASED  RURAL DEVELOPMENT / 138  RDC  experience demonstrates  that at some point the "locally-based"  aspect of  development comes into question.  In the near future the RDCs will continue to be a good subject for locallyObased organizations  to observe. The decentralization of government offices initiated by  Premier Filmon will provide a new opportunity to observe how much influence the RDCs have in the formation of provincial policy. Mr. Prince and Ms. Schie  both  stated  that in  concerning what role DRD  the summer  of  1990  van  no decision had been made  branch offices would have in rural development. Ms.  van Schie also commented that decentralization has  generated concern over the  possibility of over-lapping or usurping the RDCs role.  Decentralization has disturbed the distribution of influence which has taken shape since the 1960s. The alteration was presented abruptly and has the potential to take more influence back to the provincial level. Observing the negotiations which will take place amongst RDCs, rural residents, and the government oncerning DRD  branch  opinions  offices  would  provide  another  indication  of  how  seriously  are considered by the government. Observing the negotiations  final outcome  would  also  demonstrate  whether  rural  opinion  actually  rural  and the has  an  impact on the formation of these offices and, therefore, on rural development policy.  Limited influence for rural communities in the formation of development policy indicates that ERDC has not achieved as much as Weaver and Jessop or Ross and  Usher  considered  possible  in  local  development.  Weaver  and  Jessop  SUMMARY AND LESSONS FOR LOCALLY-BASED emphasized the importance policy was  of regions  RURAL DEVELOPMENT / 139 enough control over development  having  to determine whether or not integrating  with the international economy  in their own best interest. Ross and Usher  wanted  residents  to develop  capacities which reduced the need to depend on laissez-faire markets. What all these writers were stressing was that "development" included having communities or regions) independently assessing the values associated with a range of possible policies,  and  determining  region). The RDC  which  should  be  supported  by  each  community  (or  experience demonstrates that people interested in locally-based  development should concentrate not only the ability to be adaptive, but also their influence in the formation and implementation of development policies.  The last and perhaps most important lesson  arising  from the RDC experience  flows from the idea that local groups must concentrate on influencing development policy. It  is important for people to consider that sustaining  linkages  with an  internationalized economy and preserving characteristics associated with rural life are incompatible. The development process examined in Manitoba is oriented more towards adaptation than preservation. The prospect of increasing local participation in building a community's  economic strength has  appeal, but local development  specialists are again advised to examine where such a strategy is headed. There is a temptation to believe that once rural organizations  have greater adaptive  skills they will be in a better position to address issues such as preserving the rural character of communities. The unique qualities may  be difficult to maintain  with rural life  if efforts to enhance a rural area's competitive  position in national or international markets local development.  associated  become the principal objective for  BIBLIOGRAPHY Artibise, Alan, F.J., 1977, Winnipeg: An James Lorimer and Company Ltd.  Illustrated  History, Toronto, Ontario:  Austman, Helgi, 1978, "Assessment of the 'Stay Option' of Manitoba" in Wellar, B.S., (Ed.), The Future of Small and Medium-Sized Communities in the Prairie Region, Ottawa, Ontario: Ministry of State for Urban Affairs. Beaulieu, Paul, (Ed.), 1977, Ed Schreyer: A Social Democrat in Power, Winnipeg, Manitoba: Queenston House. Bellan, Ruben, 1973, Winnipeg's First Century: An Economic History, Winnipeg, Manitoba: Queenston House. Ben-David Val, Avrom, 1983, Regional Economic Analysis for Practitioners, New York, N.Y.: Praeger. Berry, B.J.L., 1970, "The Geography of the United States in the Year 2000", Transactions, 51:21-5 — , 1973, Growth Centers Cambridge, Mass.: Ballinger.  in  the  American  Urban  System,  Vol  1 and  2.,  Bryant, Chris, and Preston, R.E., 1987, "Towards a Framework of Local Initiatives and Community Economic Development", in Bryant, C , Preston, R., and Buck, B., (Eds.) Papers in Canadian Economic Development: Volume 1- Local initiatives in Canadian Economic Development, Waterloo, Ontario: University of Waterloo and Industrial Developers Association of Canada. Butler, Joseph, H., 1980, Economic Geography: Spatial and Environmental Aspects of Economic Activity, New York, N.Y.: John Wiley & Sons. Canada, Statistics Canada, 1976, Census of Manitoba,96-807,Ottawa:Ministry of Supplies and Services. Canada, Statistics Canada, 1990, Supplies and Services. Chorney, Harold, 1970, Dimension, 6(7):20- 26.  "MDF:  Canada The  Yearbook NDP  Canada,  1990, Ottawa:  Meets  Coates, Ken, and McGuiness, Fred, 1987, Manitoba: People, Edmonton, Alberta: Hurtig Publishers Ltd.  Big  Agriculture: Ministry  Business",  The  Province  of  Canadian and  the  Coffey, W.J., and Polese, M., 1981, "Local Development: Some Policy Directions", Occasional Paper No. 9, prepared for the Seminar on Local Development, held in Montreal, 27-28 February, for the Canadian Regional Science Association.  140  I 141 Coffey, W.J., and Polese, M., 1984, "Local Development: Conceptual Bases and Policy Implications", Regional Studies, 19(2):85- 9 Courchene, Thomas, J., 1978, "Avenues of Regional Adjustment: The Transfer System and Regional Disparities", in M. Walker (Ed.), Canadian Confederation at the Crossroads, Vancouver, B.C.: The Fraser Institute. —, 1981, "A Market Policy, 7:505-518.  Perspective  on  Regional  Disparities",  Canadian  Public  Darwent, D.F., 1969, "Growth Poles and Growth Centres in Regional Planning", Environment and Planning, 1:5-32. Davies, W.K.D., Studies, 4:61-79.  1967,  "Centrality  and  the  Central  Place  Hierarchy", Urban  East-Man Regional Development Corporation, (ERDC), 1970, "East-Man Regional Development Study", a report sponsored by the Centre for Settlement Studies, Winnipeg, Manitoba: University of Manitoba. — , January 1990a, "Proposed Work Plan 1990". — , January 1990b, "1986-1990 Five Year Work Plan (Updated)". Economic Advisory Board of Manitoba, 1971, The Conference on Economic Development in Manitoba: The Challenge, Winnipeg, Manitoba: Economic Advisory Board of Manitoba. Francis, J.P., and Pillai, N.G., 1972, Regional Development and Regional Policy: Some Issues and Recent Canadian Experience, Ottawa, Ontario: Department of Regional Economic Expansion. Friedmann, John, 1972, "A General Theory of Polarized Development", in Hansen, N., (ed) Growth Centres in Regional Economic Development, New York, N.Y.: The Free Press:82- 107. — , 1981 Life Space and Economic Space, Los Angeles, California: University of California. Friedmann, John and C. Weaver, 1979, Territory and Function: The Evolution of Regional Planning, Berkeley and Los Angeles: University of California Press. Ghorayski, P., 1990, "The Nature and Impact of Capitalist Development in Manitoban Farming", in Silver, J . and J . Hull (Eds.), The Political Economy of Manitoba, University of Regina: Canadian Plains Research Centre, 213-227. Gonick, Cy, 1990, "The Manitoba Economy Since World War II", in Silver, J. and J. Hull (Eds.), The Political Economy of Manitoba, University of Regina: Canadian Plains Research Centre, 25- 48.  / 142 Hansen, Niles, M., 1981, "Development from Above: The Centre-Down Development Paradigm", in Stohr, W.B. and F. Talyor (Eds.), Development from Above or Below?, New York, N.Y.: John Wiley and Sons Ltd. Harvey, M.O. and Associates, January, 1983, "Report of the Study Team on Regional Development Corporations in Manitoba", prepared for the Manitoba Department of Business Development and Tourism, Winnipeg. Kendle, John, 1979, John University of Toronto Press.  Bracken:  A  Political  Biography,  Toronto,  Ontario:  Lacroix, Robert, 1977, "The Regions and Unemployment: The Canadian Problem", in Options, proceedings of a conference on the future of the Canadian federation, Toronto, Ontario: University of Toronto Press. Lithwick, N. Harvey, 1978, Regional Economic Policy: The Canadian Experience, Toronto, Ontario: McGraw-Hill Ryerson. — , 1986, "Regional Policy: The Embodiment (Ed.), The Canadian Economy: A Regional Methuen Publications: 252-267.  of Contradictions", in D. Savoie Perspective, Agincourt, Ontario:  — , 1987, "Regional Development Policies: Context and Consequences", in W. Coffey and M. Polese (Eds.), Still Living Together: Recent Trends and Future Directions in Canadian Regional Development, Montreal, Quebec: The Institute for Research on Public Policy: 121-156. Loxley, John, 1981, "The Great Northern Plan", in Studies in Political Economy, 6:151- 182. — , 1990, "Economic Planning Under Social Democracy", in Silver, J. and J . Hull (Eds.), The Political Economy of Manitoba, University of Regina: Canadian Plains Research Centre: 318-33. McAllister, James, A., 1984, The Government of Edward Schreyer: Democratic Socialism in Manitoba, Kingston and Montreal: McGill-Queen's University Press. McGuire, John, 1984, "Role of the Regional Development Corporations: A Discussion Paper", prepared for the Manitoba Department of Business Development and Tourism, Regional and Community Development Branch, Winnipeg. Manitoba, Committee On Manitoba's Economic Future, (COMEF), to 1962- 1975, Winnipeg.  1963, Manitoba  -—, Commission on Targets for Economic Development, (TED), 1969, Manitoba to 1980, Winnipeg. -—, 1973, Guidelines for the Seventies, Vol. 3, Winnipeg.  / 143 — , Bureau of Statistics, 1988, May, "Manitoba Business Structure: 1988," 88-5, Winnipeg. -—, Bureau of Statistics, Socio-Economic Profiles," MBS  1988, December, 88-8, Winnipeg.  "Manitoba  Economic  MBS  Regions:  -—, Department of Business Development and Tourism, (BDT), 1984, "Role of the Regional Development Corporations: A Discussion Paper", Winnipeg. -—, Department of Industry and Commerce, Functions and Relationships, Winnipeg.  1974,  Analysis  of  Community  — , Department of Rural Development, (DRD), 1990, "Regional Offices", a report prepared for the Rural Economic Development Branch, Winnipeg. Manitoba Economic Consultative Board, 1965, Annual Report, Winnipeg. Manitoba Regional Development Corporations, (MRDC), 1974, "Manitoba Regional Development Corporations", a submission by the Seven Regional Development Corporations in Manitoba to the Regional Development Committee of the Government of Manitoba, December, Winnipeg. Mathews, Ralph, 1984, The Creation of Regional University of Toronto Press.  Dependency, Toronto, Ontario:  Minnesota Star City Program, 1989, "Star City For Economic Development: An Economic Development Strategy", prepared for Minnesota Department of Trade and Economic Development. Morton, W.,L., Toronto Press.  1967,  Manitoba:  A  History,  Toronto,  Ontario:  University  of  Perloff, H.S., Dunn, E.S.(Jr.), Lampard, E.E. and R.F. Murth, 1960, Regions, Resources and Economic Growth, Baltimore, Maryland: Johns Hopkins University Press. Perroux, Francois, 1950, "Economic Journal of Economics, 64:89- 104.  Space: Theory and Applications", Quarterly  — , 1964, "Economic Space: Theory and Applications", in Friedman, J. and W. Alonso (Eds.), Regional Development and Planing: A Reader, MIT Press: Cambridge, Mass., 21-36. — , 1970, "Notes on the Concept of 'Growth Poles'", in David (Eds.), Regional Economics, New York, N.Y.: Free Press, 307-320.  McKee et al.  Phillips, Paul, 1990, "Manitoba in the Agrarian Period: 1870-1940", in Silver, J . and J . Hull (Eds.), The Political Economy of Manitoba, University of Regina: Canadian Plains Research Centre, 3- 24.  / 144 Polese, M., 1981, "Regional Disparity, Migration Reappraisal", Canadian Public Policy, 7:519-525.  and Economic Adjustment: A  Prince, Leo, 1989, Senior Development Officer, Manitoba Department of Rural Economic Development. Personal Contact, August 14, Winnipeg. Prince, Leo, 1990, Acting Director, Manitoba Department Development. Personal Contact, July 22, Winnipeg. Ross, David, P., and Usher, Development as if Community Company.  of  Rural  Economic  Peter, J., 1986, From the Roots Up:Economic Mattered, Toronto, Ontario: James Lorimer and  Sarbit, Lawrence, A., and Greer-Wootten, Bryan, 1980, Spatial Aspects of Structural Change in Central Place Systems: Southern Manitoba 1961-1971, Toronto, Ontario: York University, (Geographical Monographs, no.4). Savoie, Donald, 1986, "The Toppling of DREE and Prospects for Regional Economic Development", in Savoie, D., (Ed.), The Canadian Economy:A Regional Perspective, Agincourt, Ontario: Methuen Publications. Sim, Alex, R., 1988, Land and Community: Guelph, Ontario: University of Guelph.  Crisis  in  Canada's  Countryside,  Troughton, Michael, J., 1988, "Rural Canada: What Future?", in F. Dykeman, W. (Ed.), Integrated Rural Planning and Development, Sackville, New Brunswick: Rural and Small Town Research and Studies Programme. Tudiver, Neil, 1990, "Constraints and Opportunities With Provincial Budgets: The NDP Experience", in Silver, J . and J. Hull (Eds.), The Political Economy of Manitoba, University of Regina: Canadian Plains Research Centre, 297-317. Van Schie, Marie Louise, 1990, Interim Manager, East-Manitoba Development Corporation. Personal Contact, July 23, Winnipeg.  Regional  Weaver, Clyde and J . Jessop, 1984, Industrial Redeployment and the Regional Economy: A North American Perspective, UBC Planning Papers, Vancouver, B.C.: School of Community and Regional Planning (Discussion Paper #7). Westarc Group Inc., 1988, June, "Assessing Labour Market Needs and Facilitating Optimal Use of Existing Resources in Rural Manitoba", a report prepared for Canada Employment and Immigration Commission, Winnipeg. -—, 1989, March, "Strategic Planning for Rural Development", a report prepared for Canada Employment and Immigration Commission, Winnipeg. -—, 1989, October, "Prairie People: Changes and Challenges", a report prepared for the Prairie Form on Rural Development, Brandon.  / 145 Whitcomb, Edward, A., Canada's Wings, Inc.  1982, A  Short. History  of Manitoba, Stitsville, Ontario:  Winnipeg Free Press, 1990, "$10-Million Moving Bill Likely", March 10. Winnipeg Free Press, 1990, "Tories Get Tough", March 17. Winnipeg Free Press, 1990, "Opportunity or Outrage", March 18.  APPENDIX  I:  EXAMINATION OF T H E FUNCTIONAL No  details  of the method  East-Man report.  used  for quantitative  INDEX  analysis  are found  in the  However, footnotes spread throughout the report provide simple  descriptions of the research.  For example, "growth centres are identified by the  application of the Gravity Model Technique.  This method involved consideration  of  centre:  the  following  information  about  each  population,  characteristics,  locational potential, centrality index and the economic growth characteristics of the industries"  (EMRDC, 1970:7).  Exactly what any of these terms might contain  and how the information was used is not defined.  The authors referred to a centrality index in the quote above.  The quotation on  page 81 (in the body of this thesis) refers to a functional index. two  indices  are equivalent  is  not clear.  If  the terms  Whether the  are different their  relationship in growth centre analysis is also unclear.  In a footnote associated with the quotation on page 81 the authors state that a central place can be measured by its centrality index, "based on its degree of service function to its umland (sic) and hence a measure of interdependency with the surrounding area which supports it" (EMRDC, 1970:18).  Once the number of  "functions" in a series of locales has been determined, the authors assert that a hierarchy of central places can be derived.  The only description associated with the functional index is provided in the quote on page 81: "The functional index for each settlement was determined on the  146  /147  basis of the calculated locational co-efficient for each settlement."  A  more  informative  definition  of  a  functional  index,  provided by Sarbet and Greer-Wootten (1980:172).  and  its  usefulness,  is  This supplementary definition  sheds more light on what the EMRDC staff might have been looking at.  In their 19S0 monograph, Sarbet and Greer-Wootten described their own central place analysis of the southeastern portion of Manitoba.  As part of the work the  authors explain that a common measure used to derive a central place hierarchy was Davies' (1967) functional index. Provincial  Government's  regional  This same method was also adopted in the  analysis  program  (1974).  The  index  was  calculated using the following formula:  n  Where: tj is the total number of establishments region,  of service type j in the  ti is the number of establishments of service type j in a particular location, n is the total number of different services in the analysis.  The  authors identified 144 service types in their research.  of information for identifying the numbers Dun  and  Bradstreet  reference  directories,  The main source  and types of services was the and  outlets  listed  in  these  148 directories  were  organized  according  to  the  American  Standard  Industrial  Classifiction four-digit codes.  The calculation was values  carried out for each place; by  for each place  functional index.  were  then summed  The authors  and  this  each service. total  The n  represented the  clearly state that this index is synonymous  with a centrality index, and that the value stands as a surrogate measure of importance  in defining  hierarchies.  Therefore, each location's  centrality  (Fi) represented the economic importance of that place relative to the region surrounding it.  Reviewing the data created by a Sarbet and Greer-Wootten type formula, an analyst would gain some indication of the number of services provided in each  location,  the  variety  amongst  these  services,  and  the  numbers  of  locations in a region of similar composition.  Assuming that "umland" refers  to  the  surrounding  area  or  region,  and  given  Sarbet  and  Greer-Wootten  explanation, it appears that the EMRDC centrality index achieves the same result as  a functional index.  However, without information  comparable in  detail to Sarbet and Greer-Wootten's explanation, precise differences between the EMRDC's two indices remain unclear.  

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