Upon
Confederation in 1867, the new Dominion of Canada consisted only of Ontario, Quebec,
New Brunswick, and
Nova Scotia. However, what was then known as the North-West—much of it officially
Rupert's Land and owned by the
Hudson's Bay Company—was already a significant factor in Canadian plans. Among the country's founders,
George Brown was particularly insistent that the North-West was the key to Canadian prosperity, offering resources, plentiful land for agricultural settlement, and the potential for a captive market for eastern manufacturers. In 1869, HBC gave up its control of Rupert's Land, which became part of Canada in 1870 under the name
North-West Territories.
The National Policy The first Canadian
Prime Minister,
John A. Macdonald, designed the
National Policy to integrate the North-West Territories into Canada and to develop it economically as part of a Canadian economy. The key planks of the National Policy were the building of a
trans-continental railway that would connect the east to British Columbia, help to settle and populate the west, and easily ship goods across the country (mostly grain and agricultural products grown in the Prairies, manufactured goods produced in central Canada); immigration to populate the Prairies with
homesteaders; and
tariffs to protect Canadian manufacturers. The protectionist tariffs were an immediate issue in the North-West, as it effectively forced western farmers to purchase more expensive equipment from eastern Canadian manufacturers rather than less-expensive farm equipment from manufacturers in the
United States, and it impacted prices for farm products—farmers of the North-West Territories therefore favoured free trade between Canada and the U.S. This began a long battle between farmers on the prairies and the federal government and led to the establishment of farmers' organizations to help control grain shipping and marketing, and to agitate politically for free trade and economic protection for farmers as well. Eventually, farmers entered the political sphere directly, forming
United Farmers parties and the
Progressive Party, both of which helped to lay a foundation for a national democratic-socialist party,
Co-operative Commonwealth Federation (CCF).
Western provinces The first province established in the North-West was Manitoba, and it entered Confederation under unusual circumstances. Negotiations were instigated at the behest of the
Métis at
Red River, who were wary of losing their land and rights as Canada encroached upon the territory. After the quelling of the
Red River Resistance, Manitoba entered Confederation as a small province—it was jokingly derided as the "postage stamp province"—with limited rights, including a lack of control over its natural resources. British Columbia negotiated its own entry in 1871. It was better positioned than the rest of the North-West. It demanded and got a promise of the construction of a trans-continental railway. By the turn of the twentieth century, agitation for provincehood for the rest of the North-West increased as the land settlement grew. NWT premier
Frederick Haultain proposed the creation of a large province between Manitoba and British Columbia, for which he favoured the name
Buffalo. However, some in the federal government, wary of creating too powerful of a province, opposed the creation of such a large province in the west. The result was the 1905 establishment of the provinces of Alberta and Saskatchewan, both of which were not given control of their resources, like Manitoba a generation earlier. To protest this, Haultain led the
Provincial Rights Party in Saskatchewan from 1905 until 1912. While each of these provinces received federal grants as compensation for this lack of resource control, it remained a significant issue until 1930, when the
Natural Resources Transfer Acts finally gave those provinces control of their own resources.
The Great Depression The Prairie provinces were by far the most impacted by the
Great Depression. The economic depression was deepened on the Prairies by drought and
dust bowl conditions, and all together farmers across the region were impoverished. Getting little in the way of relief from the federal government, the region was the slowest to recover from the Depression, which only passed with the arrival of the
Second World War and the consequent revival in manufacturing, primarily benefiting business interests in
Central Canada. The depression caused the establishment of two parties that would dominate politics in Alberta and Saskatchewan for much of the next half-century-
Social Credit and the
CCF, both of which drew on the legacy of the
United Farmer movements. The two new parties sought to transform economic and social conditions on the Prairies, albeit from different ideological positions, and their successes contributed to a tempering of western alienation for much of the middle of the twentieth century. A related factor was an increased focus on resource development on the Prairies. This succeeded, filled provincial coffers and buoyed a recovery from the Depression. When
John Diefenbaker became prime minister as the leader of a
Progressive Conservative government in 1957, this also marked a shift in western relations. Diefenbaker, hailing from Saskatchewan, considered himself an unabashed champion of western interests, and his popularity helped to align conservatism at the federal level with the needs of Prairie farmers.
Resource development Before the Second World War, western alienation was principally rooted in a sense of being unequal in Confederation and held back in economic development—in a sense, the notion that the west was a colony of eastern Canada. This changed after the war, when the prairie provinces in particular became more prosperous, based largely on newfound resource wealth. Feelings of alienation returned in the 1970s, but by then were based principally on a sense of unjustified intrusion by the federal government into western economic interests. In part, this was an outcome of the expansion of the federal state in the postwar period, and in part this was due to the rising economic power of the prairie provinces. It had largely to do with debates over
federalism versus decentralization in Canadian politics. The
1970s energy crises led to rapid increases in energy resource prices, which produced windfall profits in the energy-rich western provinces. The
1974 federal budget from
Pierre Trudeau's
Liberal government terminated the deduction of provincial natural resources royalties from federal tax. According to
Roy Romanow—then Saskatchewan's attorney general—this move kicked off the "resource wars", a confrontation between Trudeau's federal government and the prairie provinces over the control of and revenues from natural resource extraction and energy production. Following an increase in the world
price of oil between 1979 and 1980, Trudeau's government introduced the
National Energy Program (NEP), which was designed to increase Canadian ownership in the oil industry, increase Canada's oil self-sufficiency, and redistribute the wealth generated by oil production with a greater share going to the federal government. While the program was meant to mitigate the effect of higher gas prices in eastern Canada, it was extremely unpopular in the west due to the perception that the federal government was implementing unfair revenue sharing. In response, a quote from future Alberta Premier
Ralph Klein—then the mayor of
Calgary—featured prominently on
bumper stickers in that province: "Let the eastern bastards freeze in the dark". The program was ultimately repealed in 1985. Resource rights were prominent in negotiations of the
Patriation of the Canadian Constitution in the early 1980s. Alberta and Saskatchewan premiers
Peter Lougheed and
Allan Blakeney negotiated to ensure that provincial resource rights were enshrined in
Section 92A of the
Constitution.
The Reform Party Brian Mulroney's Progressive Conservatives replaced the Liberals with an historic majority in the
1984 election. However, Mulroney was seen as similarly neglectful of western Canada, which led to the establishment of the conservative
Reform Party in 1987. Led by
Preston Manning—son of former Alberta Social Credit premier
Ernest Manning—Reform campaigned on the slogan "The West Wants In". Despite controversy over the party's
social conservatism, it surged to third party status in 1993, winning 52 seats—all but one of them in Western Canada—in the
fall election while the PCs were reduced to just 2. In the 1997 election, Reform became the Official Opposition. In 2000, Reform rebranded as the
Canadian Alliance in an attempt to appeal to voters beyond Western Canada; in 2003, the party merged with the PCs to form the
Conservative Party of Canada, the power base of which has since resided in the west. == Contemporary western alienation ==