Graduate Capstones

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Post-conflict social events and stress-related behaviors in Japanese macaques (Macaca fuscata)
(1995) Lamarsh, Craig C.; Pavelka, Mary S. McDonald
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Real Talk: The Search for Clarity and Certainty in Aboriginal Consultation
(2012-09-21) Apps, Chris J; Knopff, Rainer
With project applications in Canada's extractive industries on the rise, the assertion of Aboriginal rights has brought the duty to consult to the forefront of public consciousness. The Crown is obligated by case law and the Constitution to consult with Aboriginal communities on any action that may affect their rights, treaty rights and title. While some steps have been taken to clarify the process of consultation, ambiguity concerning criteria, responsibilities and expectations persists, creating a great deal of uncertainty for proponents and Aboriginal groups who may benefit from resource projects. The revenues brought by resource developments are vital to Canadian economies, and the ability to strategically plan is central to their success. Uncertainty and inconsistent consultations serve to weaken plans and prolong poor relationships between the Crown and Aboriginal peoples. Moreover, variable consultative practices may be a source of inequality amongst different Aboriginal communities, as well as within them. The purpose of this project is to provide an analytical map of the ongoing areas of ambiguity and controversy with respect to the duty to consult. Such a consolidation of the issues and policy options does not exist, and this research aims to provide a systematic (as opposed to piecemeal) effort at clarifying this important but murky policy area. A series of general interviews were conducted with individuals involved in, or highly familiar with, Aboriginal consultation. Participants included a government official, a former council member of an Alberta First Nation, and several industry representatives. lnput was also sought from an industry association, an expert in Aboriginal Law, and an independent consultant. Findings from these interviews suggest there are significant problems surrounding consultation processes: the guidelines provided by provincial governments are vague, do little to elaborate on specific responsibilities of different parties, and - in their current form - may have the effect of creating a minimum standard of consultation; the Crown, while obliged to conduct consultations, delegates the procedural aspects of the process, creating misaligned expectations and inconsistent information flows; and insufficient Aboriginal capacity funding places extra demands on proponents for compensation, leading to ill-defined and problematic consultation fees. Three policy recommendations may alleviate these issues: I) the creation of a one window or single desk approach - akin to the BC Oil and Gas Commission's - to streamline processes and handle monetary exchanges; 2) the establishment of a fee schedule of negotiable fee allotment windows based on an assessment of the characteristics of the community and proposed project; and 3) greater Crown involvement in consultation and policy revision.
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The State Infrastucture Bank Finance Model: Potential for a Canadian Application
(2013-09) Bazel, Philip; Mintz, Jack
This paper will consider the potential benefits of adopting the State Infrastructure Bank finance model in Canada, and examine the rational for its application. The state infrastructure bank finance model (SIB) has proven to be an effective institution for federal and state governments to assist local governments and private developers in securing financing for infrastructure projects in US states1• State Infrastructure Banks, which now exist in 32 states, have effectively lowered capital costs for municipal projects, increased the amount of capital available for development, and advanced project selection practices surrounding local infrastructure investment. In Canada there is currently a need for innovation in municipal infrastructure finance. This need is the consequence of aging infrastructure, deferred maintenance, and growing infrastructure demands in expanding cities. Given broad implementation of the infrastructure bank finance model in US states, and its record as an effective finance institution for local infrastructure development, provincial governments should consider whether they can effectively adapt the SIB finance model as a means to address the infrastructure challenges facing Canadian municipalities. The purpose of this paper is to identify the features of the SIB model which might be effectively implemented in Canadian provinces, and highlight how these features would contribute to effective and efficient infrastructure investment practices in municipal governments.Enhanced project selection practices: The infrastructure bank model improves on Canadian project selection practice by formally incorporating a comprehensive evaluation process that prioritizes financing for alternative infrastructure options based on project merit. This process integrates consistent, criteria driven, cost-benefit analysis across competing alternatives, and integrates many aspects of project design, including economics, risk assessment, and project planning, capital management. This encourages the allocation of resources to projects that maximise return to public investment, and/or contribute to development goals. The SIB model also establishes the bank as an arm's length institution with private management, which introduces safe guards against political consideration in the allocation of resources. Innovative finance mechanism: In the US the SIB model has increased the level of capital available for infrastructure development by leveraging state funds, and lowered the cost of capital for municipalities through reduced transaction cost, credit backing, and subsidization. While it is likely that there is currently an opportunity to increase finance capital immediately available for infrastructure development in Canada by leveraging government capital in a infrastructure bank, it is unclear whether the unsubsidized cost of capital for priority municipal infrastructure can be lowered beyond the provincial-backed interest rates currently in place.
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When Politics and Economics Collide: Policy Implications for Reforming Oil and Gas Royalties
(2012-09) Beatty, Patrick; Mintz, Jack
Rising oil and gas prices have encouraged governments to increase their take from oil and gas development. In the last seven years, both Alaska and Alberta updated their fiscal regimes to ensure they received their 'fair share' from petroleum projects. The fiscal changes implemented in both jurisdictions have proven to be extremely controversial and provoked a strong debate over the best royalty design. In North America, the debate over fiscal regimes is often too politically charged to take account of the economics behind achieving the most efficient regime. This paper will argue that the political debate over oil and gas fiscal regimes does not reflect the economics of efficient oil and gas taxation. To make this case, this paper will examine the economics of oil and gas royalties and the politics surrounding the fiscal changes in Alaska and Alberta. The political experience in both jurisdictions is illuminating as they share many similarities and offer excellent case studies for how royalty changes occur. This paper will conclude by providing some insight into how politics and economics have collided to produce less than efficient results.
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Extracting Value From the Canadian Extractive Sector
(2012-09) Boucher, Daniel; McKenzie, Kenneth
This paper seeks to provide an initial evaluation of CIDA's CSR development project partnership policy, which is related to the Canadian government's CSR strategy for the Canadian international extractive sector - titled Building the Canadian Advantage: A Corporate Social Responsibility (CSR) Strategy for the Canadian International Extractive Sector. This evaluation is important because CIDA's funding of CSR development project partnerships may represent a long-term fundamental realignment of Canada's foreign aid policy. The conclusion of this evaluation is that CIDA' s support for CSR development project partnerships can be an effective use of limited resources because CSR development projects can result in positive development outcomes being achieved, as long as best practices are followed in the design and implementation of the projects. In fact CSR development projects present a unique opportunity to leverage the fiscal resources and potential expertise of corporations operating in a community to achieve positive development outcomes.
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A Trans-Pacific Welcome?
(2012-09) Brown, Jasmine; Flanagan, Tom
Canada has built a strong global rapport in foreign relations that provides a solid foundation in which future trade may realize success. The Canadian government has acknowledged the importance of growing trade and investment to the standards of living and future prosperity of Canadians.1 Among Canada's international priorities and objectives stand the Trans-Pacific Partnership (TPP) and the Latin America region as areas of focus.2 Although Canada has specified interest in exploratory discussions with Mercosur to enhance trade relations with related countries, it may not be the only way to access Latin American markets moving forward and consideration should be placed on other multilateral agreements with strict standards and great promise. The Trans-Pacific Partnership is a potential multilateral agreement in which not only Canada, but also multiple Latin American countries have expressed interest. It is from this base and through this connection which this study stems.
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Housing First in Alberta
(2012-09) Campbell, Rachel; Kneebone, Ronald
This paper investigates the way in which the Housing First philosophy and model have been adapted to suit the setting in Calgary and Alberta. It also touches on the relationships between different stakeholders in the realm of homeless service delivery in Alberta, as well as incentives these stakeholders have to reach common goals. The Alberta government has pledged hundreds of millions of taxpayer dollars to end homelessness through adoption of Alberta's 10-year plan to end homelessness. Calgary has adopted a similar plan. Both plans commit to end homelessness in Alberta and Calgary, respectively, by 2018 by employing a strategy known as "Housing First". Housing First is a fairly new and revolutionary philosophy and service delivery model in which clients experiencing homelessness are offered a permanent housing solution before any other needs, such as mental health, addictions, poor employability, etcetera are addressed. While Housing First has been widely acclaimed in the academic literature, it has only been so in the context of single men and women with a diagnosis severe mental illness. There is no literature proving its efficacy or effectiveness for other populations such as families with children. However, the plans in Calgary and Alberta more widely call for Housing First to be applied to all populations. As time passes and more data is collected, we will see whether this wide adoption of Housing First is hailed as an innovative and forward-thinking or premature on the part of the government and the Calgary Homeless Foundation.
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How Effective is Canadian Bilateral Aid in Improving Access to Quality Education in Tanzania?
(2012-09) Chacha, Maisory; Flanagan, Tom
Tanzania is among the poorest countries of the world with approximately one third of its population living below the poverty line of less than $1 a day. The country has been heavily reliant on foreign aid assistance, with close to 40 percent of its national budget and up to 70 percent of its education development budget dependent on donor assistance. Moreover, according to OECD calculations, Tanzania is the third largest recipient country of development aid behind Iraq and Afghanistan, having received $2.811 billion in donations. In this project, I reviewed Canadian bilateral assistance to Tanzania during the period of basic education reform in Tanzania, from 2002 to 2011. I reviewed Canada's policy documents on its support for basic education, a breakdown of Canadian aid funds disbursed to support basic education in Tanzania as reported in the Creditor Reporting System of the OECD, as well as reports of Tanzania's PEDP implementation. I argue that Canada's support for basic education in Tanzania may be ineffective because there is no Canadian policy document to guide the country's engagement in ensuring improvement of learning outcomes (quality education); Canada allocates smaller amounts in improving the education policy and administration management in Tanzania than other education components; Canada has shifting funding priorities and overemphasizes funding its national NGOs and CSOs. Also, the efficacy of Canadian aid is constrained by Tanzania's overreliance on donors, institutional gaps facing the country's education ministry, inflation, and lack of legal responsibility and accountability.
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Aboriginal Migration, Economic Incentives, and Community Well-being: A Proposal
(2012-08) Chowdhury, Nazmul; Kneebone, Ronald
City Migration Patterns:Data indicate that migration is not a major determinant of Aboriginal population growth in major Canadian cities and provinces. As the reserves have experienced net in-migration of First Nations since 1966, increase in the affiliation of individuals to Aboriginal identity due to the legal changes by the Bill C-31 and C-3, and natural growth have been the major contributors to Aboriginal population growth in cities. Small urban areas and rural areas have been losing Aboriginal population overall. The percentage of Aboriginal population residing in cities has increased due the changes in legal frameworks and natural growth. Provincial Migration Patterns: Provincial migration is a small factor in the geographical distribution of Aboriginal population. However, there has been a clear trend among the Aboriginal peoples to move out of Ontario, British Columbia, and Quebec to Alberta between 2001-2006. Statistics Canada projection indicates that Alberta may become the second largest home to Aboriginal populations by the end of 2017, following Ontario. Particularly, the Métis have been moving primarily to Alberta from all other provinces. Projection indicates that growth in the Aboriginal population in Alberta, Manitoba, and Saskatchewan may relegate British Columbia to the fourth largest position for hosting Aboriginal populations from its current second. Ontario is expected to remain as the largest home to the Aboriginal population until the projection period of 2017. Migration and Impact: International studies indicate that migration is positively correlated with well-being in the community of origin. Similarly, study findings strongly suggest that migration is positively correlated with Aboriginal well-being; particularly higher out-migration is correlated with higher education and income among the First Nations in Canada. Since First Nations have had net in-migration to the reserves since the 1960s, the paper examines such trends by focusing on the relative economic incentives between on-reserve and off-reserve locations. Policy Recommendation: The paper recognizes that the current balance between on-reserve and off-reserve economic incentives may need to be adjusted for the greater well-being of First Nations. In order to offset the gap in economic incentives between on and off-reserve locations, the paper recommends a tax credit to off-reserve First Nations members for investing in the reserves. The credit may generate additional capital for economic growth in the reserves on the one hand, and offset any gap in economic incentives between on and off-reserve locations on the other. Such a credit may transform the growing urban Aboriginal population as a source of opportunities for the on-reserve communities and increase economic growth in the reserves that may allow the band councils to initiate taxation in the reserves in the long run.
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A Comparative Analysis of Domestic Violence Protection Legislation in Canada
(2012-09) Dennett, Thom; Kneebone, Ronald
Domestic violence is a pervasive social problem. It affects all Canadians to some extent, but is especially worrisome for women. "Every hour of every day, a woman in Alberta will undergo some form of interpersonal violence from an ex-partner or ex-spouse" (Wells, Boodt, & Emery, 2012). Although Alberta falls on the higher end of rates of domestic violence compared to other sub-national jurisdictions, it is not uncharacteristic of the rest of Canada (Sinha, 2012). One of the strategies to deal with domestic violence has been the introduction of specialized domestic violence legislation. Nine of the thirteen sub-national jurisdictions in Canada have active specialized domestic violence legislation, and two sub-national jurisdictions had bills for specialized domestic violence legislation that did not get royal assent. The federal government has a bill for specialized domestic violence legislation that was passed through the Senate, and is currently in the House of Commons (Canada P. o., 2012). These statutes all have similarities, but have significant differences in several areas. Specifically they differ in their definitions of violence and what kind of relationship one has to be in, the offence and penalties provision, whether there is an arrest provision, and the duration of orders. This report compares the various legislations, highlights the differences in legislation, and discusses the implications of the diversity of legislation throughout Canada.
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An Analysis of High-Frequency Trading's Effects on Market Quality in the Grain Futures Complex
(2013-08) Fransoon, Jason M.J.; Mintz, Jack
The grain industry is heavily reliant on the futures market to effectively market their products. Whether it be a producer, merchant or processor, the grain industry benefits from the price discovery and risk transfer functions of the futures market. Any disruption to the functioning of the futures market will likely have negative consequences for grain industry profits and the general economy in the form of misallocated resources. In recent years, the grain industry has alleged that the activities of high-frequency traders (HFT) have caused a disruption in the grain futures markets by causing prices to be more volatile, manipulating prices, and trading at a technological advantage. Whether or not these allegations hold merit is difficult to determine, given the relatively new emergence of HFT in securities markets, and more recently commodity and agricultural commodity markets. The empirical evidence currently surrounding HFT is inconclusive regarding whether or not HFT causes volatility and highlights other benefits of HFT that are not commonly included in grain industry complaints. These benefits include, that HFT increases market liquidity and improves the price discovery function by making prices more efficient. These benefits are important to the grain industry as they lower the cost of hedging their products and ultimately improve marketing decisions.The challenge for regulators in developing policies surrounding HFT is twofold: first, since HFT is new, acquiring complete and robust evidence is difficult; and secondly, they are challenged with balancing the interests of all futures market users, from HFTs to the grain industry. How they proceed will not only have consequences for these two interests, but ultimately the general economy will be impacted.
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Environmental Corporate Social Responsibility Reporting in the Oil Sands: New Directions
(2012-09) Gacek, Keith; Flanagan, Tom
The environmental performance of oil sands development in Canada is under intense public scrutiny. The prevailing narrative positions industry development with an essential contribution to Canada's economy and energy security against potential environmental damage and negative impacts on communities. This research paper studies whether the range of current corporate social responsibility (CSR) indicators used by oil sands companies effectively addresses the main environmental externalities associated with oil sands development. This research finds that, while improvements have been made, there are still significant gaps in reporting methods. This paper then explores ways to both improve these CSR reports and suggests drivers (policy or other) that will help incentivize a more consistent release of information on environmental externalities by corporations. The suggestions for improvement are placed in the context of communicating more effectively with a broad range of multiple stakeholders. Finally, this paper concludes by discussing how improved environmental CSR reporting in the oil sands will not only help enhance the industry's "social license to operate," but will also contribute to our understanding and advancement of the political and socio-economic setting in which oil sands development occurs.
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Directive 074: An Analysis of Compliance and Its Implications on Public Health and Safety
(2012-09) Hong, Michael; Moore, Michael
In light of the growing oil sands tailings ponds, the Energy Resources Conservation Board has issued Directive074. With Directive 074, oil sands operators are mandated to submit to the ERCB a tailings management plan that outlines when and how they intend on meeting a set of objectives the Directive has outlined. The Directive has a specific timeline as to when operators should meet these objectives. This essay has examined the tailings management plans submitted and has found that most operators will not meet this timeline. With this the essay will examine what the effects of this delayed compliance are and what public policy suggestions could come of it.
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The Incentive Structure of the Pooled Registered Pension Plan
(2012-09) Horsfield, Kai; Mintz, Jack
The potential impact the federally proposed Pooled Registered Pension Plan could have on the Canadian pension landscape depends upon the incentive structure within the plans design. The ability of the new pension scheme to achieve lower investment management fees is important, however, other design tools should not be over looked. The impact of employer costs, automatic enrollment and other design elements are also critical in determining whether the PRPP will improve upon the current market for pension in Canada. The overall impact this plan is not yet clear since no province has implemented it, however, economic theory and examples from Canada and the USA can help make useful predictions. The analysis within this paper leads to the conclusion that a number of specific design features of the PRPP deserve particular attention.
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Residential Energy Efficiency and the Role of Public Participation
(2012-12) Hunt, Nathan; Dahlby, Bev
Albertans are currently engaged in a policy debate on approaches to curtail their energy usage through the adoption of energy conservation strategies. Currently in Alberta there are significant energy savings to be captured, stemming from the proper application of energy efficiency technologies. While energy efficiency savings are primarily to be made in the industrial sector, significant and untapped potential energy savings exist in the residential sector. Tapping these energy savings presents a unique challenge for public policy creators, as in order to successfully bring about energy savings in the residential sector a high degree of public engagement is necessary. This high degree of public engagement is necessary due to the problems present in creating a public policy that aims to affect many different users in many different residential situations. In such a realm cookie cutter public policies will fail to target all residential users effectively. As such it should be the policy makers' objective to determine the most effective policy in light of its ability to create engagement within the residential sectors, as engagement of the residential sector will lead to numerous policy benefits including higher compliance rates and cost savings. It is through this public engagement, brought about through public participation in the policy development and implementation process, that households will be empowered to capture the maximum potential benefits of energy efficiency technologies currently present in our market.
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The Effect Bylaw Enforcement has on Calgary's 10-Year Plan to End Homelessness
(2012-09) Hutton, Sarah; Kneebone, Ronald
In 2008, the City of Calgary was the first Canadian city to implement a 10-year plan to end homelessness and the city has since been regarded as a Canadian leader in the effort to end homelessness. This report will address whether bylaws or enforcement methods affect Calgary's effort to end homelessness. Does the enforcement of bylaws create a cycle of jail and shelter usage that is difficult for many homeless individuals to escape? Does the current enforcement method create an economic burden for taxpayers or prevent the success of the Calgary 10-Year Plan to End Homelessness? According to the City of Calgary, "bylaws are created as a way to address issues and concerns of the local community. They are created to protect the environment, public health, public safety, or to maintain an orderly appearance in your community and city" (The City of Calgary, 2012). The City of Calgary must enforce bylaws in a way that serves both Calgary's housed and homeless citizens. The enforcement of bylaws is expected to preserve the quality of life and economic interests for Calgary's housed citizens, while at the same time respecting the rights of homeless individuals and assisting them in getting off the street. The purpose of this report is to provide an overview of the current bylaw enforcement approach in Calgary and to assess to what extent the current method affects Calgary's 10-year Plan to End Homelessness. This report will address how the City of Calgary balances the interests of various stakeholders; those interested in how bylaws are enforced and those interested in how the homeless are supported. The report will describe how in an attempt to balance the interests of stakeholders the City of Calgary is inadvertently creating a cycle of jail, and shelter usage amongst homeless people. The first section of the report will discuss why bylaw enforcement is necessary to control certain homeless behaviours. Specific discussion of Calgary's Public Behaviour and Panhandling bylaws and Calgary's law enforcement agencies will be included. The second section of the report will discuss what happens when law enforcement leads to ticketing of homeless people, and what happens when tickets lead to court appearances and time spent in custody. The third section of the report will discuss how homeless people return to the street once they are released from custody. This section will represent the end/start of the jail and shelter usage cycle. Each section will include some discussion of the social and economic costs and benefits associated with the enforcement of bylaws in the City of Calgary.
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Spotlight on Columbia's Growing Petroleum Sector
(2012-09) Beach, Shantel; Mintz, Jack
Governments from around the world seeking to exploit their country's oil and gas reserves must make a number of difficult decisions, including policy decisions about how to attract inward foreign direct investment (FDI). To do this, there are a variety of policy options available to governments, but some policies yield better results than others. Colombia is an example of a country where institutional policy reforms to its petroleum sector appear to have caused notable economic growth and prosperity. In fact, over the past ten years Colombia's oil and gas sector has attracted record-levels of inward foreign direct investment, particularly from Canadian investors. This paper seeks to describe how Colombia, despite having only moderate oil and gas reserves, has attracted more FDI than many of its oil-rich neighbors. After interviewing investors about their experiences in Colombia, this project finds that reforms aimed at strengthening petroleum institutions were critical. More specifically, this report finds that the creation of Colombia's first independent regulator, the Agenda Naciona/ de Hidrocarburos (ANH), has been the most effective public policy enacted by the Colombian government to secure petroleum-related foreign direct investment.
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Save Our Schools
(2012-09) Kong, Jerry; Knopff, Rainer
California previously stood upon the mountaintop for the best public schools in the nation. Today, the state struggles with growing class sizes and dwindling per-pupil spending that ranks near the bottom in the country. This decline of public education in the state stems from the unintended but cumulative consequences of thirty-plus years of policy by ballot initiative, which has choked public financing not just for education but also for most local public services. By radically constraining public taxing authority, Proposition 13 ( 1978) sits at the foundation of California's governmental dysfunction and democratic deficit. The impetus to reform the law, once the untouchable "Third Rail" of state politics, has finally gained momentum. This project will develop policy recommendations for a new ballot initiative to address the key issues of restoring local accountability in the short-term and state budget stability in the long-term, with high priority given to the campaign necessary for success of any new reform. Recommendations will flow not just from documentary research but also from interviews conducted with political and policy experts in public education and state governance. The context and background for reforming Prop. 13 are established in the section immediately below. The problems that the ballot measure caused, the subsequent attempts to address them, and why previous reforms have failed to address the core issues are explored in the sections 3 - 4. The fifth section explains why serious reform may now be possible in the next few years. Against this background, sections 6 - 8 draws from research and interviews to outline the most plausible reforms in both the short- and long-term.
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Chinese Investment into the Canadian Oil Sands
(2012-09) Lai, Daniel; Moore, Michael
As the demand for energy and the price of oil continues to increase, Canada has become a major player in the global oil market. China's continuous economic growth over the past decade has created an increased demand for energy and natural resources. Active outward investments from Chinese National Oil Companies (NOC) over the past three years in the Canadian oil sands suggest the need for a better understanding of NOCs, investment trends, and possible impacts to Canada with future DFI. Although it appears that Chinese NOCs have been acting according to estimated market guidelines and principles of conduct, it is clear that there have been strategic purchasing of key energy systems in developed countries. Until the recent proposed acquisition of Nexen by PetroChina, Chinese investments into Canadian oil sands were limited by comparison with other oil producing countries. In the absence of new pipeline capacity aiming at the Pacific Coast, the primary customer for Canadian crude supplies remains the United States. This is problematic since it artificially limits the market, and exposes Canadian producers to price manipulation and non-competitive behavior. This project concludes that the Canadian government should seek to diversify the energy economy by allowing the building of a pipeline to the Pacific Coast and allow for competition in the oil sands market by exploring potential customers in Asia though new and increased infrastructure development. To improve diversification, it is recommended that a positive and welcoming diplomatic attitude towards China is crucial. Lastly, advancements in the transparency of investment sources and enhancing dialogues between stakeholders of the oil sands can better inform Canadians and improve communication between the energy community, foreign companies, and the Canadian government.
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Past the 49th Parallel: An Evaluation of the Beyong the Border Agreements
(2012-09) Mallany, Sean; Mintz, Jack
In 2011, two different agreements between Canada and the US were announced to address this apparent conflict between security and economics at the border: the “Perimeter Security and Economic Competitiveness Action Plan” (PSEC) and the “Regulatory Cooperation Council Joint Action Plan” (RCC). When taken together, both documents fall under the broader label of the “Beyond the Border Joint Action Plan” (BTB). PSEC proposes joint actions designed to address border security and screening procedures, and to crack down on threats such as narcotics trafficking or terrorism. The RCC will focus on aligning regulations to reduce the “tyranny of small differences” that raise the costs of doing business for firms that trade across the Canada/ US border (Robertson, 2012, p. 34). Together, these agreements are designed to increase the security that both countries enjoy while simultaneously leading to increased economic competitiveness and growth. What is not immediately clear is whether or not PSEC and the RCC are significant milestones towards both countries actually reaching these goals. This capstone project will therefore answer the following research question: How significant are the economic and security effects of the Beyond the Border action plans? The project will begin with a brief background on past border policies since 2001. In order to effectively answer the research question, the effects that that both PSEC and the RCC have on Canada/ US border policies will be subdivided into two very broad categories: economic, and security. When measuring the potential economic impact of the documents, an analysis will focus on which industries of the Canadian economy will be affected by the regulatory alignment efforts of the RCC and how large and important these industries are to Canada’s economic prosperity. In addition to measuring the specific industries that will be affected by the RCC, we can measure how PSEC will affect trade across the 49th parallel more generally. This can be done by estimating the costs of having different regulations on either side of the border, or by examining the costs to firms of having to wait in long lineups to cross the border. While it is still too early to measure the direct effects of these two agreements on Canada/US trade flows, these costs give an idea of the potential economic benefits of reducing the “thickening” of the border. The higher the costs that the current border policy imposes, the higher the potential for PSEC to reduce these costs and be economically significant. After analyzing the economic effects of the Beyond the Border agreements, the paper will focus on the significance of PSEC to achieving security related objectives. This analysis will primarily be qualitative in nature, due to the difficulty of trying to measure a concept like security. By shifting the Canada/ US security focus away from our shared border and more towards a continental security model, we see both governments trying to “push the border out” to secure the North American continent as a whole. While this may lead to efficiencies in security procedures, this is dependent on a high degree of trust and cooperation at multiple levels of government in order to actually work. By examining patterns that are apparent within PSEC proposals, such as a focus on cooperation or shifting to higher risk targets, we can determine how significantly PSEC will change border security efforts. The final section of the capstone project will address potential problems that could interfere with the implementation of the Beyond the Border action plans. For example, some potential flaws that could limit or derail the implementation of the Beyond the Border plan could be the perceived potential of a gradual attrition of Canadian sovereignty, a lack of executive follow through as bureaucratic agencies attempt to harmonize regulations, privacy concerns regarding information sharing, constitutional and jurisdictional conflicts between the federal and provincial governments or an overwhelming of the legislative systems as the Beyond the Border agreements are implemented. Before we can actually determine how significant the BTB agreements are, we have to understand some past policy initiatives and challenges that Canadians and Americans have faced. Only by viewing BTB in the context of past initiatives designed to address both Canadian trade concerns and American security assessments, can we understand if it is a dramatic shift from past initiatives or if it is building on past policies.

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