National Policy

Definition

National Policy refers to a series of economic measures implemented in Canada during the late 19th century aimed at promoting economic growth and national unity. This policy primarily focused on protecting Canadian industries through tariffs, encouraging immigration to populate the West, and constructing a transcontinental railway to facilitate trade and transportation across the vast country.

5 Must Know Facts For Your Next Test

1. The National Policy was introduced by Prime Minister John A. Macdonald in 1879 as a response to the economic challenges facing Canada after Confederation.
2. It included three main components: protective tariffs on imports, promotion of Western settlement through immigration, and the construction of the Canadian Pacific Railway.
3. The protective tariffs were designed to support Canadian manufacturers by making foreign goods more expensive, which helped stimulate local industries.
4. The completion of the Canadian Pacific Railway in 1885 was essential to implementing the National Policy, as it facilitated trade and transport across the country and helped unite the provinces.
5. The National Policy played a significant role in shaping Canada’s economy and encouraging regional development, although it also led to tensions with provinces like Alberta and British Columbia over resource management.

Review Questions

• How did the National Policy impact Canada's economy in its early years?
  • The National Policy significantly influenced Canada's economy by fostering industrial growth through protective tariffs, which encouraged consumers to buy domestic products. It also stimulated the agricultural sector by promoting immigration, leading to increased settlement in the West. The construction of the Canadian Pacific Railway further enhanced trade and movement across Canada, linking disparate regions and supporting economic expansion.
• Evaluate the effectiveness of the National Policy in achieving its goals of economic growth and national unity during its implementation.
  • The effectiveness of the National Policy can be evaluated through its initial successes in fostering economic growth and creating national unity. The protective tariffs provided much-needed support for emerging Canadian industries, while increased immigration bolstered population numbers in underdeveloped areas. However, tensions arose between different provinces due to perceived inequalities in resource distribution and economic benefits, suggesting that while it achieved some goals, it also left challenges unaddressed.
• Critically analyze the long-term consequences of the National Policy on regional relationships within Canada and its implications for future economic policies.
  • The long-term consequences of the National Policy have been significant in shaping regional relationships within Canada. While it initially spurred growth and development, it also fostered disparities between provinces that felt marginalized by federal policies. These tensions contributed to ongoing debates about resource management and economic equity that resonate in contemporary discussions about national policy frameworks. Future economic policies will need to address these historical inequalities to foster a more inclusive approach to development across all regions.

Related terms

Tariffs: Taxes imposed on imported goods designed to protect domestic industries by making foreign products more expensive.

Transcontinental Railway: A railway that spans the entire length of Canada from coast to coast, crucial for connecting regions and facilitating trade and movement.

Immigration Policy: Regulations and guidelines that govern the entry of individuals into Canada, particularly aimed at increasing population and workforce in developing areas.