Financing the Future: Canada's Capital Markets in the Eighties


169 pages
ISBN 0-88862-568-5




Reviewed by Stephen J. Kees

Stephen J. Kees was Chief Librarian, Niagara College of Applied Arts and Technology, Welland, Ontario.


As the economy begins to recover, so the financing of a number of projects of all sizes begins to be considered again. This book, by an acknowledged expert in the field, considers how these projects might be financed in the coming decade. The government has set a goal of general Canadianization of our industry and control of our resources, but there are doubts as to whether we can provide the funds to achieve this end.

This concentrated study indicates that we can find the funds for most of these if some adjustments can be made to our system. Following a description of the financial intermediary institutions and markets, it goes on to project the potential flow of funds up to 1986. This suggests the need for a reduction in government borrowing and some adjustments by overseas investors to free the funds for these projects. Unfortunately, most of the megaprojects are in the energy field, which gives investors little prospect of diversifying their portfolios. The influence of central bank policy in relation to interest rates is considered with reference to the possible value of the dollar.

While considering the westward shift of finance and industry, the author reminds us that the centres of the east, Toronto and Montreal, still hold a dominant position. In the matter of financing for housing, especially mortgages, he emphasizes the need for stability in interest rates and for lower ones. The funding of pensions both public and private is considered in relation to their influence on the supply of funds. A number of recommendations are given, some of which have already been nullified by time since the writing, but others should be seriously considered by the appropriate national organizations.

The general tone of this work is optimistic provided we are flexible enough to adopt some new policies and ideas; the author is to be commended for bringing them to our attention.


Donner, Arthur W., “Financing the Future: Canada's Capital Markets in the Eighties,” Canadian Book Review Annual Online, accessed July 24, 2024,