Canada`s welfare state needs transformation, not more tinkering

For immediate distribution – April 9, 2015
NEWS RELEASE
Canada’s welfare state needs transformation, not more tinkering
Montreal – As changing demographics, globalization and rising income inequality bring the future of
social policy to the forefront of public debate, a new essay in the IRPP’s Policy Horizons series argues
that an entirely new framework is needed to replace Canada’s outdated welfare state.
Social policy expert Peter Hicks warns that fine-tuning the existing system will not be enough to fix the
architecture of Canada’s social programs. While he does not disagree with recent calls to enhance
access to child care, pensions and pharmacare, Hicks argues we are missing the basic point –
Canada’s social policy framework must be modernized to meet new realities.
"Many of the assumptions built into the welfare state are outdated, because demographics and public
expectations have changed considerably since the 1960s and 1970s,” Hicks says. “We see this in the
form of increased demand on the part of citizens for customized services; greater need for flexibility in
how people transition between work, family life, and education; and greater preference for investments
in training and education over income support.”
The welfare state’s approach of addressing broadly defined needs in a broadly uniform manner, at a
single point in time, is no longer adequate, Hicks argues. Instead, what is needed is an individualized
approach to social policy focused on the long-term outcomes of a person’s life.
Such an approach is now possible thanks to advances in technology and data analytics. “Just as
companies have been able to transform the way they operate and interact with consumers, there is a
tremendous opportunity to improve how governments reach citizens,” says Hicks.
In what he refers to as the “enabling society,” Hicks envisions a citizen-centred approach to social
policy where programs and services are fully individualized and adopt a life-course perspective. These
would be supported by a system of “big statistics” that provides detailed information in real time to
policy-makers, service providers and the public on which interventions work best, based on an
individual’s profile and preferences.
For example, someone who is contemplating going back to school or changing careers would be able
to know in advance the probability of success in terms of prospective employment, earnings and job
stability, given their present skills, past work history and future goals.
Transitioning to the enabling society will require a major overhaul of Canada’s statistical system. Hicks
calls on governments to empower Statistics Canada with the needed data, resources and mandate to
establish an evidence base of what works (big statistics).
Hicks also proposes a fundamental restructuring of Canada’s income security system. Specifically, he
recommends reconfiguring the system around three pillars:
 providing a relatively modest guaranteed annual income to prevent people from falling through the
cracks;
 refocusing social insurance programs (such as employment insurance) on the core mandate of
providing income replacement during periods of unemployment or disability; and
 creating a new system of lifetime accounts that will allow people to take greater control of planning
and managing their learning, work, caregiving and leisure.
The Enabling Society by Peter Hicks can be downloaded at irpp.org. The Policy Horizons Essay series
provides a vehicle for thinkers to look beyond the day-to-day questions facing government and
consider the major social, economic, and cultural shifts that will have a lasting impact on Canadian
public policy.
-30The Institute for Research on Public Policy is an independent, national, bilingual, not-for-profit
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Media Contact:
Shirley Cardenas
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