National Policy

Definition

The National Policy was a set of economic measures introduced in Canada in the 1870s aimed at promoting national economic development through protective tariffs, railway expansion, and immigration. This policy sought to strengthen Canadian industry and economy while fostering national unity and reducing dependency on the United States.

5 Must Know Facts For Your Next Test

1. The National Policy was first introduced by Prime Minister John A. Macdonald in 1879 as a response to economic challenges facing Canada after Confederation.
2. It included three key components: high tariffs on imported goods, the construction of a transcontinental railway, and aggressive immigration strategies to populate the West.
3. The policy aimed to protect Canadian manufacturers from foreign competition while promoting local industry and job creation.
4. The construction of the Canadian Pacific Railway was crucial for connecting the east and west parts of the country, facilitating trade and migration.
5. Critics of the National Policy argued that it favored central Canadian industries at the expense of Western provinces, leading to regional tensions.

Review Questions

• How did the National Policy influence the economic landscape of Canada during its implementation?
  • The National Policy significantly shaped Canada's economic landscape by fostering domestic industries through protective tariffs that made imported goods more expensive. This led to a growth in manufacturing sectors, particularly in central Canada, as businesses adapted to the new economic environment. Additionally, the construction of the transcontinental railway enabled efficient transportation for goods and people, further stimulating trade and regional development across the country.
• Evaluate the impact of the National Policy on regional disparities within Canada.
  • The National Policy had a profound impact on regional disparities in Canada by concentrating economic growth in central provinces like Ontario and Quebec while neglecting the needs of Western provinces. High tariffs benefitted eastern manufacturers but often made goods more expensive for consumers in the West. This created a sense of discontent among Westerners, who felt marginalized and saw little return on their investment in nation-building efforts like the railway.
• Critically assess how Laurier's domestic policies interacted with the National Policy and influenced Canada's development.
  • Laurier's domestic policies represented a shift from Macdonald's strict adherence to the National Policy, as he sought to create a more inclusive approach that acknowledged Western interests. Laurier focused on promoting free trade and reducing tariffs, which conflicted with aspects of the National Policy that favored protectionism. This tension reflected broader economic changes and regional demands, showing how Laurier's governance aimed to balance national cohesion with regional needs, ultimately shaping Canada's development trajectory during his tenure.

Related terms

Tariff: A tax imposed on imported goods, used to encourage domestic production by making foreign products more expensive.

Transcontinental Railway: A railway system that spans a continent, providing crucial transportation links across vast distances, vital for trade and movement of people.

Immigration Policy: A set of laws and guidelines that govern how immigrants can enter, settle, and integrate into a country, impacting workforce growth and cultural diversity.