Graeme Hamilton has a great article in Canada's National Post about how Quebec pulled itself out of dire fiscal problems not unlike The Bahamas faces today.
Here are a couple quotes:
"For decades, Quebec was seen as a laggard, trailing the rest of the country in economic growth and job creation while amassing substantial public debt."
"In 2012, a report by Montreal’s HEC business school warned that Quebec was en route to becoming the poorest province in Confederation."
"Not long ago, protesters upset over program cuts were carrying placards of Leitao’s face with a thick red line through it."
"It took 50 years, Vailles wrote, but Quebec, “following its twisting politico-economic path, (has) reached a financial situation considered healthier than that of its illustrious neighbour.”
"Leitao says a key part of the turnaround has been a disciplined approach to public finances."
“It’s not a big revolution what we did,” he said. “We realized that spending was growing at a much faster pace than revenues. If you do that on a consistent basis, you’re going to end up with a ballooning deficit. We said we would restrain the rate of growth in program spending and allow revenues to keep growing at three per cent a year.” (Carlos Leitao is the Quebec Minister of Finance)
Take heart that it can be done here too.
