Running head: FEDERALISM 1

Federalism in regards to Canada’s Response to the Covid-19 Pandemic

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Federalism in regards to Canada’s Response to the Covid-19 Pandemic

Federalism happens to be a form of governance where two tiers of government (central

and regional) work together to enhance service provision and avail resources to its citizens.

According to Hueglin and Fenna (2015), a federal state (Federation) comprises self governing

states or provinces which are unified under a central government that consolidates different

common governance aspects amongst the existing provinces. Canada and the US happen to be

examples of countries that operate on a federal system of governance. In light of this, the Covid-

19 Pandemic has highlighted the strengths as well as challenges of federalism, based on how the

two governmental tiers in Canada have collaborated to counter the pandemic’s adversities. In

China, for instance, the government relied on tools such as big data and information technology

to ensure the impact of the pandemic was quickly countered and brought under control (Nathans,

2020). The measures undertaken by the various world governments illustrate how governments

play a key role in protecting the welfare of citizens. To effectively alleviate the adversities of the

pandemic, federal governments have had to institute aligned agile treasury operations essential in

ensuring that pandemic responses are effective. Through agile government interventions,

business continuity has been upheld across different economic sectors. Such interventions will

also facilitate emergency arrangements for individuals and organizations impacted by the

pandemic. This paper is going to reflect on the significance of federalism in regards to the

Canadian government and how instrumental this system has been to countering the socio-

economic adversities of the Covid-19 pandemic.

Economic help by the Canadian Federal Government

The emergence of the pandemic saw many Canadian citizens lose their employment and

means of earning a livelihood. As the shutdown of non-essential services came into effect in
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Canada, approximately two million jobs were lost in April alone (Evans, 2020). It is worth

noting that the pandemic has not only led to the loss of jobs but has also forced individuals to

stop looking for work. As is the case in many societies and countries, Canada is faced with a

variety of inequalities in its labor markets. As the Covid-19 pandemic continues to impact the

country, the existing inequalities in the labor market are bound to be more pronounced. For

instance, in the case that minimum wage workers lost their employment, they would be unable to

pay for rent and other basic necessities they may require. The first step in the governments’

response strategy should entail understanding which workers have been mostly affected by the

outbreak of the pandemic. Such an understanding will ensure effective policy recommendations.

The available literature on the impact of the pandemic reveals that the pandemic has largely

affected workers who are younger, unmarried or less educated. Contrastingly, it has been

revealed that unionized workers have been less affected by the pandemic. It therefore be argued

that the pandemic has deepened the already existing inequalities.

In a bid to alleviate the impact of the pandemic, the Canadian central government

pledged more than $19B to provinces and territories in Covid-19 support (Turnbull, 2020). The

government’s deal with the provinces was aimed at enabling them recover from the economic

impact of the pandemic. The funds are specifically aimed at improving the provinces’ testing

capabilities and have also been channeled towards the stockpiling of personal protective

equipment which have come to be largely needed by the health professionals. Effectively

combating the disease requires agile government interventions as was the case in Hangzhou, the

capital city of Zhejiang Province. The Hangzhou administration effectively mitigated the impact

of the pandemic through agile action. For instance, the province was the first to “raise the risk

management response to the highest level in the early days of the outbreak” (Nathans, 2020).
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Such measures saw it effectively mitigate the impact of the outbreak despite being located only

1000 miles away from Wuhan where the disease originated. The outbreak of the pandemic has

presented an unprecedented challenge to financial ministers and administrators not only in

Canada but all over the world. The pandemic has created fiscal stress for many governments due

to the limited budgets available to oversee the running of various functions. Some of the factors

that have largely contributed to the spread of the pandemic is the shortage of protective medical

supplies and the limited knowledge on the virus (Turnbull, 2020). It would therefore be practical

to prioritize the welfare of health workers as they play a central role in mitigating the impact of

the disease. Agile treasury operations by the federal government will ensure the requisite

emergency operations are put in place. For instance, through recent literature on the pandemic, it

has been identified that the lack of awareness of the disease has largely led to the loss of lives in

areas such as Wuhan. To control the spread of the pandemic, it is essential to ensure that

Canadians are properly informed on all factors pertaining to the disease. The greater impact of

the disease that was felt in regions such as Wuhan was attributed to the limited knowledge of the

virus among the people (Turnbull, 2020). There is a need for the Canadian federal government to

improve the flow of funds due to the fact that the provinces are not well-equipped to mitigate the

effects of the pandemic by themselves. It would be practical to allow budgets allocated for other

purposes to be used to fight the pandemic. The budget could include the option of budget

reallocation after the dangers of the disease are dealt with.

Government’s Direct Action for Canadians

The Canadian government has taken a variety of direct actions aimed at protecting

Canadian citizens from adversely being impacted by the Covid-19 pandemic. One of the methods

through which the government aims to protect its citizens is through ensuring the access of
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information to the greater population. Access to information is key in the fight against the Covid-

19 pandemic. The novel nature of the disease presents a problem due to the limited knowledge

available (Evans, 2020). Information on issues pertaining to the disease will therefore go a long

way in ensuring Canadian citizens make more informed decisions in regards to the safety

measures to be undertaken. The fact that the Canadian society is a democratic state implies that

its leaders are obligated to facilitate the dissemination of information as it is an essential pillar of

democracy. Effective communication strategies by the Canadian government will foster the

people’s trust in the government institutions and therefore facilitate more effective responses to

the pandemic. To facilitate information access, the Canadian government established a website

where the country’s residents are usually informed on the methods through which they can

protect themselves and their communities (Nathans, 2020). Keeping the public well-informed

has proven to be an effective strategy in regions such as Hangzhou where major news outlets

provide clear communication to the public on matters to do with the pandemic.

Another way through which the Canadian government has sought to mitigate the effects

of the pandemic is through investment in research. The novel nature of the disease has made it

necessary for many governments to invest in research as they seek to better understand the virus.

It is only through properly understanding the issues pertaining to the disease that it can be

effectively tackled. Effectively tackling the Covid-19 pandemic requires a concerted effort by a

variety of stakeholders. Towards this end, the Canadian government has embarked on a mission

to collaborate with provinces and territories as well as indigenous leaders and communities in

helping mitigate the impacts of the disease. While the provision of direct health care services to

Canadians is entrusted to the provinces and territories, the complex nature of the pandemic has

made it necessary for the federal government to play a greater role. Since the pandemic has also
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affected populations such as the First Nations communities, the government has been forced to

establish effective response measures. In support of public health preparedness, the Canadian

government has pledged $500 million to provinces and territories to ensure critical health care

systems are instituted.

The Provinces Need for Government Assistance

With the outbreak of the disease, the provinces were forced to institute measures aimed at

controlling the spread of the virus. The success of the instituted measures varied from province

to province. Measures taken by the provinces have largely pertained to income support.

Instituting income support measures has been prompted by the massive loss of employment for

both essential and non-essential workers. In provinces such as Alberta, Saskatchewan, and

Quebec, there has been an implementation of worker support programs. The provinces were

forced to institute such programs due to the fact that the federal response to the issue was unclear

(Turnbull, 2020). It was only later that the federal government established the Canada

Emergency Response Benefit (CERB) and the Canada Emergency Wage Subsidy. Social

assistance has come to be identified as an essential factor in the fight against the pandemic.

Towards this end, provinces have made attempts to cushion their citizens’ social needs.

However, they have failed in providing for the basic needs of their most vulnerable populations

(Turnbull, 2020). BC and Nova Scotia, for instance, have only been able to top up their CERB

allocations as opposed to being able to independently deal with the issue. The issue illustrates the

provinces’ need for government support. Agile federal government operations will ensure the

effective management of the post pandemic environment. A variety of approaches can be

effective in facilitating the recovery and reconstruction of the country for better recovery.

Business continuity plans by the government should be aimed at mitigating the key risks that
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would otherwise threaten treasury operations. Business continuity planning in provinces is

thwarted by their limited funding options. This puts them at risk of being unable to fulfil

functions such as salary and pension payments.

Government Mechanisms for Helping the Provinces

The Canadian government has shown dedication towards supporting the provinces in

mitigating the effects of the pandemic. Governmental support towards provinces and territories

has been aimed at four sectors and categories: the people who mostly require governmental

support, the health sector, the economy, and education sector. In its support of individuals

needing federal help, the federal government has helped in addressing the urgent housing needs

of its vulnerable individuals. The pandemic also saw the federal government institute temporary

wage top-ups for its low-income wage workers. In regards to health, the federal government has

shown commitment towards supporting critical health care system needs and mitigation efforts.

The economic support offered by the federal government has allowed provinces to restart their

economies and therefore support livelihoods. In regards to the issue of education, the federal

government has shown commitment towards ensuring the safety of students in the event of

returning to school.

Emphasis as a Member of the Federal Government

As a member of the federal government, I would seek to promote policies that encourage

business enterprises to let their employees work from home. Without the ability to work from

home, many businesses will not be able to sustain themselves through the pandemic. Through

sound policy formulation, the necessary technological infrastructure will be instituted to facilitate

effective adoption of home-based work. Facilities that promote home-based work functions such
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as virtual private network connections, broadband access, and conferencing systems can be

instituted. Home-based work functionalities are essential due to the fact that they promote the

continuity of economic activities within a given country. Without the application of such

strategies, the pandemic would have had more devastating effects.

In conclusion, agile treasury operations are critical and essential to support responses to

the spread and treatment of COVID 19. Federal governments can mitigate against Covid-19

impacts by increasing intergovernmental collaboration on different socio-economic matters

arising. The inability of the Canadian provinces to effectively respond to the pandemic illustrates

the importance of the central government in consolidating the provincial efforts towards tackling

the pandemic.
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References

Evans, P. (2020). Canada still has 1M fewer jobs than it did in February, even after 4 straight

months of gains. Retrieved from https://www.cbc.ca/news/business/canada-jobs-july-

1.5712085

Hueglin, T. O., & Fenna, A. (2015). Comparative federalism: A systematic inquiry. University

of Toronto Press.

Nathans, L. (2020). COVID-19: Economic relief measures announced to date. Retrieved from

https://www.mccarthy.ca/en/insights/articles/covid-19-economic-relief-measures-

announced-date

Turnbull, S. (2020). Feds to deliver more than $19B to provinces and territories in COVID-19

support. Retrieved from https://www.ctvnews.ca/politics/feds-to-deliver-more-than-19b-

to-provinces-and-territories-in-covid-19-support-1.5027090