Equalization: Its Contribution to Canada's Economic and Fiscal Progress

Gordon C. Shaw is professor emeritus in the Faculty of Administrative
Studies at York University.

This volume of five essays and three commentaries sets out to examine
Canada’s equalization program. Its appearance is timely given that the
program is now under review.

Each of the five essays provides a different viewpoint on equalization,
or the distribution of funds by the federal government to the provinces.
The first essay makes the case for both efficiency and equity in
equalization, pointing out that “equalization is not an instrument for
redistributing income but, rather, helps provide an instrument for equal
treatment of benefits.” Of particular interest to the general reader
is an essay that describes the workings of equalization programs since
1982 and proposes nine criteria that can be used to evaluate such
programs. Another paper compares the Canadian system of equalization
with those of other federated countries, particularly Australia,
Germany, and the United States.

Each essay is well written and well documented. Although the book may
be too technical for the general reader, it provides an excellent
overview of its subject.