Business Editor Charles Frank (2007) cites a FirstEnergy Capital Corp newsletter to clients comparing Alberta’s provincially-funded analysis “Our Fair Share” chaired by Bill Hunter on royalties, to the modus operandi of socialist governments Kazakhstan and Venezuela. Premier Ed Stelmach commissioned a full analysis of provincial royalties as the price of a barrel of oil soared. It is now c. $82.881 a barrel. (It has to be $50 a barrel to extraction of oil from the oil sands profitable.)

EnCana CEO Randall K. Eresman threatened to redirect a billion dollars of EnCana’s planned capital investment out of Alberta to other parts of Canada or the United States if Premier Stelmach adopt’s the “Our Fair Share” report proposals in their entirety.

2007-10-02 Saskatchewan politicians hope that companies like EnCana will act on their bluff and move at least part of their billion dollar threat out of Alberta and into Saskatchewan if royalties are raised too much. Canadian Association of Petroleum Producers industry vice-president David Pryce adds to the oil companies threats saying that if Alberta opts for their fair share of royalties the oil companies will shift activity to the other jurisdictions like Saskatchewan. However, even though Saskatchewan politicians might hold out for awhile, they would pay at the polls just like Stelmach if they continue to operate their energy sector as if the rules of the 1970s still apply. Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge so how much is Saskatchewan willing to give away to enjoy an Alberta boom? (Wood 2007-10-02). Do they really want the housing crisis, the long delays in service to drive their thriving economy even more? Are they willing to forego their fair share to entice fickle oil companies to their province.

CBC. 2007-10-05 ConocoPhillips President Kevin Meyers threatened Alberta Premier Ed Stelmach that ConocoPhillips will postpone $8 billion proposed oilsands projects. Meyers claimed that if royalties are raised as suggested in Our Fair Share and by the Alberta auditor ConocoPhillips would lose an oilsands project worth $500 million next year. They threaten to cut 30 to 40% of the $2.5 billion to $3 billion it plans to spend in 2008 on Alberta-based activity. It is estimated that if all the recommendations of Our Fair Share were implemented, the Alberta government would benefit by $2 billion a year. Alberta has a history of hospitality for oil and gas companies with the low energy royalties (based on oil at ?20 a barrel versus $80 and rising4), no provincial sales tax, no Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge. Oilsands developers have been allowed to use Alberta’s limited natural gas resources to extract their oil as quickly as possible instead of slower technology-intense methods. (Even the oil industry DOE report urges the need for patient money). Images of the Fort McMurray’s envirnomental nightmare landscape of Fort McMurray are courteously not shown around at dinner tables (although in quieter voices Albertans will ask, “Have you ever been to Fort McMurray?”).

Who’s Who

EnCana 10th place in Fortune Global 500′s Mining, Crude-oil production Industry: EnCana with an overall Fortune 500 rank of 431/500 (previously 396/500) and revenues of $17,081.0 millions. EnCana’s profits are $5,652.0 million; Assets: $35,106.0 Million; Stockholders’ Equity: $17,466.0 million. CEO Randall K. Eresman. It has 4,678 employees and is located at 855 2nd St. S.W., Calgary T2P 2S5, Canada, Phone: 403-645-2000
Website: www.encana.com
FirstEnergy Capital Corp. (started c. 1994) is a member of the Canadian Investor Protection Fund. Its 79 employees including CEO Jim Davidson, Jill Angevine, Vice-President of institutional research, John

Chambers, Ruby Wallis, Bev Thompson, Sheila Kaiser, Margie Gal, and Angelique Cyr work long days beginning at 6:15 AM and engage in the high-pressure industry of investment dealing. These investment dealings and transactions individually involve multi-millions and even billions of dollars of financings2. It is located at 1100, 311 – 6 Avenue SW, Calgary Alberta T2P 3H2 (FirstEnergy Capital (USA) Corp. is a member of the Securities Investor Protection Corporation.) The firm has raised $7 million for Calgary’s less fortunate. It now supports over 200 charities. (Every year, [they] allocate a minimum of 2.5 percent of our gross profits to charitable organizations and community groups. Often, [they] significantly exceed this minimum donation. These actions illustrate the strong sense of community that is part of [their] corporate culture.” For example a party they hosted during the rodeo with 1500 guests raised $200,000 for Calgary Communities Against Sexual Abuse (CCASA), Calgary Quest School and the Parks Foundation Calgary. In June 2006 CalgaryInc named them as the best place to work in Calgary. As well according to their own site “Canadian Business magazine ran a very complimentary article on FirstEnergy in the August 2007 edition covering the firm back to inception and including a mention of our expanded relationship with Société Générale.”

FirstEnergy Capital Corp FirstNews for investors tracks changes in the price of oil, gas through indicators such as unseasonable temperatures (for example in Toronto) or weather disturbances (such as hurricanes), consumer confidence, industry takeovers, bankruptcies, labour disputes, changes in interest rates, the housing market, oil and gas inventories and industry regulation. For example on September 25 they reported that “U.S. stocks fell on Monday, after news that Germany’s largest bank may take a hit from sub-prime mortgage investments. Citigroup and other banks fell after sources said the exposure could reduce Deutsche Bank’s profit by $2.4 billion. Furthermore, the first nation wide strike at General Motors in 37 years raised concerns about the economic outlook. Shares of auto parts suppliers fell, led by a 3% drop in Lear Corp. The Dow Jones Industrial Average lost 61.13 points to end at 13,759.06, while the NASDAQ fell 3.27 points to close at 2,667.95 (FirstNews 2007-09-25).”

Timeline

1992 Kazakhstan adopted among the world’s most open investment laws in order to encourage development.

2002 After the April 2002 aborted coup against Venezuela’s President Hugo Chávez, many observers accused Washington of having been behind the attempted ouster. The Bush administration denied any U.S. involvement in the affair. However, one relatively clear connection emerged between the U.S. government and the anti-Chávez movement: millions of dollars in U.S. taxpayer money channeled through the IRI and other U.S. organizations that funded groups opposed to Chávez during the years preceding the April coup. Writer Mike Ceaser reported that in an April 12, 2002, fax sent to news media, IRI President George A. Folsom rejoiced over Chávez’s removal from power. “The Venezuelan people rose up to defend democracy in their country,” he wrote. “Venezuelans were provoked into action as a result of systematic repression by the government of Hugo Chávez.” With NED funding, IRI had been sponsoring political party-building workshops and other anti-Chávez activities in Venezuela. “IRI evidently began opposing Chávez even before his 1998 election,” wrote Ceaser. “Prior to that year’s congressional and presidential elections, the IRI worked with Venezuelan organizations critical of Chávez to run newspaper ads, TV, and radio spots that several observers characterize as anti-Chávez” (Ceaser 2002). (IRI 2007)

2007-09-25
Rumours circulate that Germany’s largest bank may take a hit from sub-prime mortgage investments (FirstNews 2007-09-25).

2007-09-25 The first nation wide strike at General Motors in 37 years raised concerns about the economic outlook. Shares of auto parts suppliers fell, led by a 3% drop in Lear Corp. (FirstNews 2007-09-25).

2007-09-28 The Global Energy Conference for members only was held in Toronto, Canada on September 28 and announced on FirstEnergy Capital Corp. website.

2007-09-28 “The Kazakh parliament unanimously approved a bill Sept. 26 that would allow the government to modify or break any contract unilaterally in which the “interests of Kazakhstan” are threatened (as defined by the government). They are demanding royalties of 40% up from 30%. Kazakhstan now produces 1.3 million barrels per day (bpd) of oil, and if the projects currently signed are completed, within 10 years it hopes to be producing 3.5 million bpd [. . .] Royal Dutch/Shell, ExxonMobil and ConocoPhillips are part of the oil consortium developing Kazakhstan’s oil. [. . .] The best that Kazakhstan [might end up with a] Venezuela-like situation, in which foreigners freeze all expansion efforts and focus solely on inexpensive methods of maintaining existing output. In Venezuela output has fallen from 3.5 million bpd to 2.3 million bpd since government restrictions began 10 years ago. One of Kazakhstan’sfields is one of the most technically challenging in existence, boasting vertical and variable deposits loaded with high-pressure hydrogen sulfide. The field itself is in a high wind zone that freezes over in the winter. Kashagan will be the most technically challenging — and expensive — oil project ever attempted.” [China has the capital to invest in Kazakhstan but perhaps lacks the technology for now (Offnews.info 2007)."

2007-10-02 Saskatchewan politicians hope that companies like EnCana will act on their bluff and move at least part of their billion dollar threat out of Alberta and into Saskatchewan if royalties are raised too much. Canadian Association of Petroleum Producers industry vice-president David Pryce adds to the oil companies threats saying that if Alberta opts for their fair share of royalties the oil companies will shift activity to the other jurisdictions like Saskatchewan. However, even though Saskatchewan politicians might hold out for awhile, they would pay at the polls just like Stelmach if they continue to operate their energy sector as if the rules of the 1970s still apply. Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge so how much is Saskatchewan willing to give away to enjoy an Alberta boom? (Wood 2007-10-02). Do they really want the housing crisis, the long delays in service to drive their thriving economy even more? Are they willing to forego their fair share to entice fickle oil companies to their province.

CBC. 2007-10-05 ConocoPhillips President Kevin Meyers threatened Alberta Premier Ed Stelmach that ConocoPhillips will postpone $8 billion proposed oilsands projects. Meyers claimed that if royalties are raised as suggested in Our Fair Share and by the Alberta auditor ConocoPhillips would lose an oilsands project worth $500 million next year. They threaten to cut 30 to 40% of the $2.5 billion to $3 billion it plans to spend in 2008 on Alberta-based activity. It is estimated that if all the recommendations of Our Fair Share were implemented, the Alberta government would benefit by $2 billion a year. Alberta has a history of hospitality for oil and gas companies with the low energy royalties (based on oil at ?20 a barrel versus $80 and rising4), no provincial sales tax, no Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge. Oilsands developers have been allowed to use Alberta's limited natural gas resources to extract their oil as quickly as possible instead of slower technology-intense methods. (Even the oil industry DOE report urges the need for patient money). Images of the Fort McMurray's envirnomental nightmare landscape of Fort McMurray are courteously not shown around at dinner tables (although in quieter voices Albertans will ask, "Have you ever been to Fort McMurray?").

Footnotes

1. "Crude oil prices posted big gains on the day. The continued decline of the U.S. dollar and concerns that supply may not be able to meet demand this coming winter, fuelled the price increase. NYMEX light sweet crude for November delivery gained $2.58 to end at $82.88 per barrel [. . .] Canadian stocks continued their five day rally closing higher on strong commodity prices. The government also reported a $13.8 billion budget surplus for fiscal 2006-07, which will be used to pay down debt. Suncor Energy was the biggest weighted gainer, up $2.17 or 2.3% to $95.71. The S&P/TSX Composite Index gained 94.76 points to close at 14,129.73. [. . .] U.S. stocks ended higher on Thursday, as energy shares were elevated by higher oil prices. However, a report released earlier in the day showed a plunge in new home sales and the sharpest year-over-year drop in prices in nearly 37 years. The Dow Jones Industrial Average gained 34.79 points to 13,912.94, while the NASDAQ gained 10.56 points to close at 2,709.59. (FirstNews 2007-09-28).”

2. In an online summary FirstEnergy includes in their recent report on their 800 financings and over 200 M&A assignments that they has participated in since c. 1994.$701,000,000 disposition by EnCana Corporation of its Interest in Petrovera Resources LimitedPartnership in January 2004. Others are: $495,000,000: the Sale of Sound Energy Trust to Advantage Energy Income Fund in September 2007; $3,500,000,000: of CCS Income Trust as Formal Valuator and Advisor to the Independent Committee September 2007; $508,000,000: Sale of Capitol Energy Resources Ltd. to Provident Energy Trust. June 2007; $91,000,000 Compton Petroleum Corporation Acquisition of Stylus Energy Inc.August 2007; $980,000,000 for TriStar Oil & Gas Merger with Real Resources Inc. August 2007; $440,000,000 Sale of Find Energy Ltd. to Shiningbank Energy Income Fund September 2006; $431,000,000 True Energy Trust Acquisition of Prairie Schooner Petroleum Ltd. September 2006; $1,500,000,000 Savanna Energy Services Corp. Merger with Western Lakota Energy Services Inc. August 2006; $320,000,000 Highpine Oil & Gas Limited Acquisition of Kick Energy Corp. August 2006; $4,000,000,000 Viking Energy Royalty Trust Merger with Harvest Energy Trust February 2006; $4,400,000,000 Precision Drilling Corporation Reorganization into an Income Trust November 2005; $350,000,000 UTS Energy Corporation Partnership and Asset Sale to Teck Cominco Limited December 2005; $1,400,000,000 Cequel Energy Inc. and Progress Energy Ltd. Merger and Reorganization into a Trust and Spinout of ProEx Energy Ltd. and Cyries Energy Inc. April 2004.

 

3. 1st place in Fortune Global 500′s Mining, Crude-oil production Industry: Anglo American with an overall Fortune 500 rank of 195/500 and revenues of $33,072.0 million; 2nd place in Fortune Global 500′s Mining, Crude-oil production Industry: BHP Billiton with an overall Fortune 500 rank of 205/500 and revenues:$32,153.0 millions; 3rd place in Fortune Global 500′s Mining, Crude-oil production Industry: Rio Tinto Group with an overall Fortune 500 rank of 313/500 and revenues:$22,465.0 millions; 4th place in Fortune Global 500′s Mining, Crude-oil production Industry: RAG with an overall Fortune 500 rank of 345/500 and revenues:$20,365.0 millions; 5th place in Fortune Global 500′s Mining, Crude-oil production Industry: CVRD with an overall Fortune 500 rank of 359/500 and revenues:$19,651.0 millions; 6th place in Fortune Global 500′s Mining, Crude-oil production Industry: Oil & Natural Gas with an overall Fortune 500 rank of 369/500 and revenues:$19,237.4 millions; 7th place in Fortune Global 500′s Mining, Crude-oil production Industry: Occidental Petroleum with an overall Fortune 500 rank of 377/500 and revenues:$19,029.0 millions; 8th place in Fortune Global 500′s Mining, Crude-oil production Industry: Surgutneftegas with an overall Fortune 500 rank of 392/500 and revenues:$18,413.1 millions; 9th place in Fortune Global 500′s Mining, Crude-oil production Industry: Xstrata with an overall Fortune 500 rank of 414/500 and revenues:$17,632.0 millions; 10th place in Fortune Global 500′s Mining, Crude-oil production Industry: EnCana with an overall Fortune 500 rank of 431/500 and revenues:$17,081.0 millions; 11th place in Fortune Global 500′s Mining, Crude-oil production Industry: China National Offshore Oil with an overall Fortune 500 rank of 469/500 and revenues:$16,038.9 millions.

4. Not to mention Tertzakian’s $100 a barrel peak!


Webliography and Bibliography

2007. “EnCana.” Snapshots. Fortune Global 500. September 30. http://money.cnn.com/magazines/fortune/global500/2007/snapshots/11155.html

CBC. 2007-10-05 “Energy giant rages against plan to hike Alberta royalties.” http://www.cbc.ca/canada/calgary/story/2007/10/05/royalties-protests.html

Ceaser, Mike. 2002. “As Turmoil Deepens in Venezuela, Questions Regarding NED Activities Remain Unanswered,” Americas Program, December 9.

FirstNews. 2007. FirstEnergy Capital Corp. September 28. http://firstenergy.com/research/news/News-2007-09-25.pdf

FirstNews. 2007. FirstEnergy Capital Corp. September 28. http://firstenergy.com/research/news/News-2007-09-28.pdf

Frank, Charles. 2007. “Tough Talk Just the Start to Ugly Royalty Fight.” Calgary Business. Calgary Herald. September 29. C1 & c14.

(IRI) International Republican Institute. 2007. Right Web Profile. Silver City, NM: International Relations Center, July 19.

Offnews.info. 2007. “Kazakhstan – End of an Era.” Offnews.info. Buenos Aires, Argentina. September 30. http://www.offnews.info/verArticulo.php?contenidoID=9429

Wood, James. 2007. “Politicians in no mood to alter Sask. energy royalties system.” The StarPhoenix. Saskatoon.


Creative Commons License 2.5 Flynn-Burhoe, Maureen. 2007. “Fear Industry marries Oil Industry: Albertastan? Canazuela? Who’s Afraid of Social[ism] Capital?” http://docs.google.com/Doc?id=ddp3qxmz_380dvhvz9 September 30. Creative Commons License 2.5 Flynn-Burhoe, Maureen. 2007. “Fear Industry marries Oil Industry: Albertastan? Canazuela? Who’s Afraid of Social[ism] Capital?” >> Speechless. September 30.


How to allocate scarce medical resources is a touchstone question with ethical, economic, social and political dimensions. Debates focus on rationally coherent and justifiable procedures for prioritizing health-care. Norman Daniels (1985) provided a useful non-utilitarian ethical principle for distributing health care resources which he later developed with James Sabin into a theory of “accountability for reasonableness” (A4R) (Daniels and Sabin 2002). University of Toronto Political Science professors David A. Welsh and Melissa Williams, wrote an Op-Ed (2002) for the Globe and Mail in response to the Canadian Romanow report on health care. They described how a just health-care system through the Rawls lens would be one that works to the greatest benefit of the least-advantaged member of society.

 

 

In 2007 the US c. 9 million children still have no health insurance. In 1997 the US government introduced a bipartisan program called S-CHIP broadly supported by both Democrats and Republicans which expanded health coverage to millions of at-risk children from low income families. Private insurance companies like Medicare Advantage, backed by the CATO Institute, are lobbying Senators to minimize the access of vulnerable families to health care by equating these social services based on social justice to a step towards socialism and away from the rights of market freedom (Lieberman 2007).


 

“By every measure, the ten-year-old program–passed during the Clinton Administration as a bipartisan, incremental effort to expand health coverage to millions of poor kids–has been a success. Thanks to S-CHIP, the number of low-income uninsured kids dropped by one-third over the decade, even as the number of uninsured adults went up. Three out of four eligible kids participate, and studies show they receive preventive care and have improved health outcomes and school performance. “It has been the only success story in initiatives to improve healthcare access,” says Cindy Mann, who directs Georgetown University’s Center for Children and Families [. . .] S-CHIP enjoys broad support among Democratic and Republican governors. Its flexibility allows states to tailor their own programs or build on existing Medicaid arrangements to target children typically in families with incomes of up to 200 percent of the federal poverty level[1] (about $41,300 for a family of four this year) [. . .] This summer the House and Senate passed bills reauthorizing S-CHIP, but by mid-September it became clear that the House bill, which added 5 million uninsured kids to the rolls and paid for their coverage partly by cutting government over-payments to Medicare Advantage plans, would lose to the more minimal Senate approach. Giving health insurance to more kids instead of overpaying highly profitable insurance companies seemed like a good trade. But the Senate, lobbied all year by the insurance industry, didn’t see it that way [. . .] Influential GOP senators, targeted by sellers of Medicare Advantage plans heavily marketed in rural areas, are adamantly against cuts to Medicare Advantage [. . .] Nearly 9 million kids now have no health insurance, and up to two-thirds of them are eligible for S-CHIP or Medicaid. Even so, for [. . .] the White House, both bills cover too many children. [. . .] Apparently the Administration prefers to unleash families into the Darwinian jungle of the private insurance market, where only the wealthiest and healthiest can buy a policy. [. . .] The price for family coverage now averages $12,000, or about 20 percent of income for a family of four with income at 300 percent of the poverty level. [There are] new bare-bones policies, such as the one sold in Ohio by Anthem Blue Cross and Blue Shield with deductibles ranging from $4,000 to $20,000 ($8,000 to $40,000 if the family uses out-of-network providers). The policy covers only two doctor visits per year, and families must pay 30 percent of any hospital bill after satisfying the deductible [. . .] The Cato Institute held a briefing called “Sinking S-CHIP: A First Step Toward Stopping the Growth of Government Health Programs.” Heritage and the American Legislative Exchange Council called their briefing “S-CHIP Expansion: Bad for Kids, Families, and Taxpayers.” They are equating health-care for poor kids with socialism. If that’s the case, our children will be the first casualties on the way to marketplace perfection (Lieberman 2007).”

 



University of Toronto Political Science professors David A. Welsh and Melissa Williams, wrote this Op-Ed (2002) for the Globe and Mail in response to the Canadian Romanow report on health care. They described how a just health-care system through the Rawls lens would be one that works to the greatest benefit of the least-advantaged member of society:

 


 

John Rawls, one of the most important political philosophers of the 20th century, died last week near Boston. We both had the pleasure of studying under him in graduate school, where we came to know him not only as a brilliant thinker, but as a kind and gentle man. He will be sorely missed. Last week Roy Romanow released his much-awaited report on the Canadian health-care system. As proponents and critics predictably squared off, we naturally wondered what Mr. Rawls might have to say about it. Quite a lot, we suspect. And his particular take on the matter would have productively re-framed what is becoming a tiresomely clichéd debate. Part of what made him such a decent human being was his unyielding commitment both to liberty and to equality. What made him a brilliant philosopher is that he had far more success than most in reconciling the two. In his greatest work, A Theory of Justice (1971), he argued that if we understand society as a scheme of co-operation for mutual advantage, we can best accommodate the demands of liberty and equality by designing social institutions around two core principles. The first is that every member of society should be entitled to the fullest scheme of personal liberty consistent with a like liberty for all. The second, or “Difference Principle,” is that inequalities in the distribution of primary goods (things it is rational to want no matter what your particular life plan or conception of the good might be — such as wealth) should work to the greatest benefit of the least-advantaged member of society. It is perfectly all right to have rich people and poor people in society, according to Mr. Rawls, as long as the poorest would be even poorer under any alternative set of basic principles of social distribution. Advocates of private health-care provision stress the importance of liberty — of the right to choose how and where to spend one’s health-care dollar. Advocates of universal public health care stress the importance of equality, of every citizen’s right to the same quality of health care at the same speed of delivery. Mr. Rawls would argue that access to health care is a quintessential primary good: No matter what your life plan might be, it’s rational for you to want it. It’s a limited resource in all societies, and all societies must decide how to distribute it. Some choose market mechanisms; others socialize it. As a primary good, he’d argue, it should be governed by the Difference Principle. A just health-care system is one that works to the greatest benefit of the least-advantaged member of society. Which model would we choose if guided by Rawlsian principles? Existing systems in countries comparably wealthy to Canada offer us clues. From the perspective of the least-well-off, largely private systems such as the American one fare poorly in comparison to public systems such as Canada‘s (though they have advantages such as speed of delivery for costly cutting-edge procedures). But this casual comparison is insufficient. It’s possible that some creative blend of public and private health care might serve the worst-off in society better than does Canada‘s current system, even if revamped in the way suggested by the Romanow report. Mr. Rawls would ask us to think imaginatively about alternatives, model them intensively, and choose accordingly. He would have us embrace whatever worked to the benefit of the least-advantaged — perhaps some creative blend of public and private. Without scrutinizing the alternatives from the perspective of the least-well-off, he’d say, we cannot know whether inequalities in access to health care would be just or unjust. That strikes us as a perspective well worth pondering. Melissa Williams and David Welch teach political science at the University of Toronto (Williams and Welch 2002).

 

 

Emanuel ‘s review of Daniels and Sabin’s Setting Limits Fairly – Can We Learn to Share Medical Resources? summarizes the strengths and weaknesses in this widely cited theory of “accountability for reasonableness” (A4R).

“In 1985, Norman Daniels published Just Health Care, which articulated the first useful, nonutilitarian ethical principle for distributing health care resources. Daniels claimed that health care was important because it helped to ensure “normal human functioning,” which in turn enhances people’s opportunities to pursue their life plans. In Daniels’s view, a just health care system tries “to make sure that individuals maintain normal functioning, where possible” — an ethically valuable way to ensure equality of opportunity. Although Daniels’s fair-opportunity principle was an important advance, it became clear that it had problems. First, it appeared to justify the provision of almost all available health care services, since almost everything physicians can do is aimed at maintaining normal functioning and enhancing people’s opportunities. In this sense, it hardly seemed to be a way to set priorities; rather, it seemed to be a way to justify doing nearly everything medically possible. To his credit, Daniels was among the most perceptive critics of his own principle and identified other limitations, such as its inadequacy for helping to determine whether priority should be given to lifesaving interventions for a few patients or to services that improve the quality of life for many. In this new book, Daniels and James E. Sabin offer another approach. They argue that in Western democracies, there is no agreement on substantive principles for the distribution of health care services. Consequently, the challenge is to define the conditions under which it is ethically acceptable for institutions to set limits on health care. They propose four conditions, collectively termed “accountability for reasonableness”: first, publicity (decisions to limit health care and their rationales must be publicly accessible); second, relevance (the rationales invoked must be based on evidence, reasons, and principles that fair-minded persons would affirm); third, appeals (mechanisms for challenging allocation decisions must exist); and fourth, regulation (public procedures must ensure the fulfillment of these three conditions). Daniels and Sabin believe that requiring the use of public, explicit decisions “will improve the quality of decisions making” and will improve public confidence that decisions are made for ethical and not self-interested reasons. Daniels and Sabin devote the second half of their book to studies of how accountability for reasonableness works in the real world. They examine approaches to last-chance therapies, ways in which various managed-care organizations have confronted lung-volume-reduction surgery, and the problems of pharmacy benefit design. One conclusion of Setting Limits Fairly is that, because of limited resources and nonmedical priorities, justice does not entitle people to all effective medical services. Another is that justice does not entitle every person to the same set of medical services. Different health care plans might well come to different determinations, for example, about whether to cover the cost of an artificial heart or the latest migraine medication. Consequently, one person might be entitled to an artificial heart, but his or her neighbor might not be. Yet if the plans’ procedures for determining these distributions fulfill the conditions of accountability for reasonableness, both determinations might be ethical. People are entitled not to the same set of services but, rather, to determinations made through fair procedures. Daniels and Sabin note that agreement on substantive principles for allocating medical resources is unlikely; defining fair procedures for priority setting should be the goal. What is at issue is whether accountability for reasonableness is the right approach. In my opinion, this approach is too passive. Powerful health care institutions make the decisions and provide the reasons, and persons subjected to the decisions merely have the right of appeal. There are, however, avenues for influencing the distribution of resources, such as participation in debates about funding priorities, communication with political representatives, and formation of political associations to lobby and advocate. Fair procedures require the empowerment of those who must live with the medical services that are covered. To augment Daniels and Sabin’s four principles, we need at least three additional principles: first, fair consideration (there must be mechanisms to assess and incorporate every person’s interests and preferences); second, empowerment (there must be mechanisms for persons to influence decision makers and to participate in the decision-making process); and third, impartiality (those formulating and implementing decisions about resource allocation should not have a conflict of interest). In the next decade, every country will face very hard choices about how to allocate scarce medical resources. There is no consensus about what substantive principles should be used to establish priorities for allocations. Instead, we will need fair procedures. Debate will focus on what those procedures should be. Daniels and Sabin’s accountability for reasonableness and illuminating case studies will be invaluable in furthering that debate (Emanuel 2002).”

Schlander expert evidence presented (2007) to the UK House of Commons committee clearly outlines the components of Daniels and Sabin’s concept of Accountability for Reasonableness (A4R).

5.1 Recognizing both the difficulty of democratic societies to achieve consensus on distributive principles for health care and the need for legitimacy of allocation decisions, Norman Daniels and James Sabin (2002) proposed a framework for institutional decision-making, which they call “accountability for reasonableness” (A4R). In order to narrow the scope of controversy, A4R relies on “fair deliberative procedures that yield a range of acceptable answers” and consists of four conditions. 5.1.1 Publicity, ie, resource allocation decisions must be public, including the grounds for making them. Transparency should open decisions and their rationales for scrutiny by all affected, not just the members of the decision-making group; 5.1.2 Relevance, ie, “the grounds for decisions must be ones that fair-minded people can agree are relevant to meeting health care needs fairly under reasonable resource constraints.” Arguments should rest on scientific evidence, though not necessarily a specific kind of, and appeal to the notion of “fair equality of opportunity.” Although Daniels and Sabin acknowledge that stakeholder participation may improve deliberation about complicated matters, they believe it is neither a necessary nor a sufficient condition of A4R; 5.1.3 Revisions and appeal, ie, there must be an institutional mechanism to engage a broader segment of society in the process, providing those affected by a decision to reopen deliberation, and to offer decision-makers an option to revise funding decisions in light of further arguments. 5.1.4 Enforcement entails some form of regulation to make sure that the first three conditions are met (Schlander 2007).

In 2003 Daniels, Teagarden and Sabin provided a template for the application of accountability for the reasonableness in regards to benefit decisions.

“We propose an ethical template for pharmacy benefits and a fair process for using it. The template delineates four levels of decisions about pharmacy coverage, connecting ethically acceptable types of rationales for limits with decisions made at each level. It provides a framework for organizing ethically relevant reasons for coverage (or the tiered copayments). The process for using the template assures accountability for the reasonableness of benefit decisions. It requires transparency and relevance of rationales for limit setting and revisability of decisions, including through fair procedures for appeals. The template and the process facilitate broader public learning about fair limit setting (Daniels, Teagarden and Sabin 2003).”

Accountability for Reasonableness (A4R): “Norman Daniels’ and James Sabin’s theory of “accountability for reasonableness” (A4R) is a much discussed account of due process for decision-making on health care priority setting.

Central to the theory is the acceptance that people may justifiably disagree on what reasons it is relevant to consider when priorities are made, but that there is a core set of reasons, that all centre on fairness, on which there will be no disagreement. A4R is designed as an institutional decision process which will ensure that only those reasons which everybody will agree are relevant and appropriate form part of decision-making. The argument which we will put forward in this paper questions whether it is a simple matter to delineate the core set of reasons and claims that it is a potential problem in A4R that it does not provide an indication of the exact content of this process.The paper first briefly outlines the content of A4R. It is argued that disagreement on what services should be high priorities cannot be resolved solely with a reference to “due process.” In order to retain consistency over time, decision-makers are required to agree and articulate what reasons qualify as relevant and how conflicting reasons are to be balanced in the course of the process.The second and main part of the paper then considers how the reason of “solidarity” can be handled within the A4R framework, and it is shown that deciding whether solidarity should be admitted to the core set of allowable reasons is not a simple matter (Daniels and Sabin).”

Vulnerability, “the susceptibility to harm, results from an interaction between the resources available to individuals and communities and the life challenges they face. Vulnerability results from developmental problems, personal incapacities, disadvantaged social status, inadequacy of interpersonal networks and supports, degraded neighborhoods and environments, and the complex interactions of these factors over the life course. The priority given to varying vulnerabilities, or their neglect, reflects social values. Vulnerability may arise from individual, community, or larger population challenges and requires different types of policy interventions; from social and economic development of neighborhoods and communities, and educational and income policies, to individual medical interventions (Mechanic and Tanner 2007).”

“The logic of cost-effectiveness, as adopted by NICE and in contrast to traditional cost benefit analysis, does not represent an orthodox application of economic welfare theory [5-9]. The development of the cost-effectiveness framework was, instead, heavily influenced by decision analysts with operations research backgrounds, who were striving to transfer methods used to optimise the efficiency of manufacturing processes to the production of health (Schlander 2007).”


Folksonomies, tags, categories, folders, keywords: vulnerability, vulnerability to social exclusion, public versus private, ethics, accountability for reasonableness, priority setting, resource allocation, fairness, solidarity, at-risk youth, at-risk populations, social capital, distributive justice, fiduciary relationships, professional ethics, prioritisation, healthcare resources, a rationally coherent and broadly justifiable regime for prioritising healthcare, accountability for reasonableness, benefits accountable, reasonable resource constraints, share medical resources, special moral importance, touchstone question, health care limits, market accountability, fair process, managed behavioral health care, coverage decisions,


Footnotes

1. The 2007 Health and Human Services Poverty Guidelines lists the threshold for poverty as 4 persons in a household with a combined income of $20,650.


David Welch is Professor of Political Science and Director of the Trudeau Centre for Peace and Conflict Studies at the University of Toronto.

 

Melissa S. Williams “is Professor of Political Science and founding Director of the Centre for Ethics at the University of Toronto. She is also Editor of NOMOS, the Yearbook of the American Society for Political and Legal Philosophy. Williams teaches in the history of Western political thought, contemporary democratic theory, feminist theory, American political thought, and ethics in the public sphere. “Williams’s research is predominantly in contemporary democratic theory; it frequently addresses core concepts in political philosophy through the lens of group-structured inequality, social and political marginalization, and cultural and religious diversity. Her first book, Voice, Trust and Memory: Marginalized Groups and the Failings of Liberal Representation (Princeton University Press, 1998), develops a theoretical defense of descriptive representation for historically marginalized groups. It won the Foundations of Political Theory Section’s award for the best first book in political philosophy. More recent work has addressed the relationship between peace and justice in the liberal theory of toleration; conceptions of citizenship in an era of globalization; and justice for indigenous peoples. Williams currently has two book projects under way: Equality, for the Routledge Series on Concepts in Political Philosophy; and Reconstructing Impartiality, which begins from feminist and difference-based critiques of liberal impartiality and seeks to develop an alternative account of “situated” or “contextual” impartiality within law-governed relationships. She has published thirty articles on these and other topics in Political Theory, the Canadian Journal of Political Science, numerous edited volumes, and other international journals. Williams has also co-edited a number of works: Identity, Rights and Constitutional Transformation (1999; with Patrick Hanafin); Political Exclusion and Domination (NOMOS XLVI, 2005, with Stephen Macedo); Humanitarian Intervention (NOMOS XLVII, 2005, with Terry Nardin); Toleration and Its Limits (NOMOS XLVIII, forthcoming, with Jeremy Waldron); and Moral Universalism and Pluralism (NOMOS XLIX, forthcoming, with Henry Richardson). Williams was Visiting Faculty Fellow at the Center for Ethics and the Professions at Harvard University (1996-97), Visiting Professor in the Department of Philosophy at the University of Amsterdam (2000), and Laurance S. Rockefeller Visiting Professor for Distinguished Teaching at the Center for Human Values at Princeton University (2000-2001). A former winner of the Leo Strauss Award for the best doctoral dissertation in political philosophy, she has served APSA as a member of the Leo Strauss Award Committee as well as on the Foundations of Political Thought Section’s First Book Award Committee. She is a regular and active participant in ASPA meetings (APSANET).”

Bibliography and Webliography

APSANET (American Political Science Association) Profile of Melissa S. Williams

Daniels, Norman; Teagarden, J. Russell; Sabin, James E. 2003. “Pharmacy Benefits: an Ethical Template for Pharmacy Benefits.” Health Affairs: the Policy Journal for the Health Sphere. 22:1:125-137.

Daniels, Norman, Sabin, James E. 1997. Limits to health care: fair procedures, democratic deliberation, and the legitimacy problem for insurers. Philosophy and Public Affairs. 26:4: 303-350.


Daniels, Norman, Sabin, James E. 1998. The ethics of accountability in managed care reform. Health Affairs. 17:50-64.


Daniels, Norman, 2001. Justice, health, and healthcare. American Journal of Bioethics . 1:2: 2-16.


Daniels, Norman, Sabin, James E. 2002. Setting Limits Fairly – Can We Learn to Share Medical Resources? Oxford: Oxford University Press.


Hasman, Andreas; Holm, Søren. 2005. “Accountability for Reasonableness: Opening the Black Box of Process.” Health Care Analysis. 13: 4. December:261-273(13).

Lieberman, Trudy. 2007. “Let the CHIPs Fall…” The Nation. September 20: October 8, 2007.

Mechanic, David, Tanner, Jennifer. 2007. “Vulnerable People, Groups, And Populations: Societal View: Definitions & Determinants.” Health Affairs: the Policy Journal for the Health Sphere. 26:5:1220-1230.

Schlander, Michael. 2007. Evidence submitted by the Institute for Innovation; Valuation in Health Care (NICE 18). United Kingdom House of Commons Select Committee on Health. Written Evidence. March 16.

Schlander, Michael. “The use of cost-effectiveness by the National Institute for Health and Clinical Excellence (NICE): No(t yet an) exemplar of a deliberative process.” http://jme.bmj.com/preprint/schlander.pdf

 

 

Welch, David A., Williams, Melissa. 2002. “Medicare through the Rawls Lens.” Globe and Mail. Op-Ed. December 3. Temporarily posted at http://docs.google.com/Doc?id=ddp3qxmz_56f423xr

Emanuel, Ezekiel J. 2002. “Review of Daniels and Sabin’s Setting Limits Fairly – Can We Learn to Share Medical Resources? (2002).” The New England Journal of Medicine. September 19.

Flynn-Burhoe, Maureen. 2007. “How to allocate scarce medical resources is a touchstone question with ethical, economic, social and political dimensions.” >> Speechless . September 24.

Flynn-Burhoe, Maureen. 2007. “How to allocate scarce medical resources is a touchstone question with ethical, economic, social and political dimensions.” >> Google Docs . September 24.

http://docs.google.com/Doc?id=ddp3qxmz_370dx2m96



For ten years (1990-2000) I had the most seductive job a visual artist could imagine as contract art educator at the National Gallery of Canada. The largest spaces in the gallery were devoted to the growing collection of contemporary art. So most educators included some contemporary art along with European, RCA, Group of Seven and modern art . . . in their survey tours of the collection. In the 1990s contemporary art was almost entirely postmodern and it was there in the early 1990s I experienced my own personal experience of the powers and limits of oppositional postmodernism (Altieri 1990). Perhaps I should have paid more attention that day to where the students were from. But they were an animated, interesting and interested group and the Hans Haake exhibition had just opened. I think it was Hans Haake’s (1983) controversial artwork Here is Alcan (Stephen Biko) (purchased by the National Gallery of Canada in 1983) that abruptly ended my tour. This image of Biko’s severely swollen battered face haunts the history of apartheid and adds weight to the Mandela’s honouring of those heroes like Biko who sought “to redeem the pledge to give a more human face to a society for centuries trampled upon by the jackboot of inhumanity (Mandela 1997). The professor who accompanied the group of CEGEP students from Jonquiere seemed to be personally insulted by Haake’s critique of Alcan and insisted his students leave the gallery immediately.

Yesterday was the thirtieth anniversay of Biko’s death in his prison cell in Pretoria, South Africa. Biko’s friend and biographer, British journalist Donald Woods’ gruesome postmortum photo of Biko was published around the globe resulting in such international indignation that the Security Council was forced to finally enforce the arms embargo they had instated in 1963. In 1994 Nelson Mandela acknowledged that the death of Biko was the first nail in the coffin of apartheid (Conchiglia 2007).

A decade ago Nelson Mandela unveiled the bronze statue of Stephen Bantu Biko by Naomi Jacobson as a contribution towards immortalising his life:

It also gives a certain kind of joy that the financial cost of creating the statue was footed by people in the creative field, including Denzel Washington, Kevin Kline and Richard Attenborough who will be remembered for the film on Biko, `Cry Freedom’. Another contributor is Peter Gabriel whose song `Biko’ helped keep the flame of anti-apartheid solidarity alive. This collaboration of British and American artists bears eloquent witness to Steve Biko’s internationalism (Mandela 1997).

Contemporary artist Jamelie Hassan (1987) reviewed Haake’s work,

Among the other works in this survey, Void Mean has the most visual and emotional impact — perhaps because it brings home Canada’s duplicity in tolerating Alcan’s involvement in the apartheid regime. It is in works like Void Mean that the full potency and immediacy of the issues reach us (and bravo to the National Gallery of Canada, who arranged for its loan during a moratorium on the loan of works from their collection so that Void Mean could be seen in the one Canadian gallery on the Haacke tour). Alcan’s corporate presence is appropriated from its promotional material and juxtaposed to two benign sepia images of a Montreal opera sponsored by Alcan. These images bracket a central, coloured, violent news photo of the dead Stephen Biko. In the accompanying text, Alcan’s involvement in South Africa is described: ‘The most important producer of aluminum sheet and the only fabricator of aluminum sheet in South Africa. From a non-white work force of 2,300 the company has trained eight skilled workers’ (translation from the French). To underline its source, the work is fabricated from aluminum storm windows: the top panels contain Alcan’s silver logo; the bottom panels, the images of the opera and Biko, to reinforce the reality of the violence perpetrated (Hassan 1987).

Bibliography

Altieri, C. 1990. “The Powers and the Limits of Oppositional Postmodernism.” American Literary History. 2: 443-481.
Bois, Yve-Alain; Crim, Douglas; Krauss, Rosalind; Haake, Hans. 1984. “A Conversation with Hans Haacke.” October. Vol. 30. Autumn: pp. 23-48.

Conchiglia, Augusta. 2007. “Steve Biko, la conscience noire.” Le monde diplomatique. September 12, 2007.

Hassan, Jamelie. 1987. “Hans Haacke at The Mendel Art Gallery, Saskatoon, May 15 – June 21.” Vanguard, Vol. 16:4, Sept/Oct 1987.

Mandela, Nelson. 1997. “Address at 20th Anniversary of Steve Biko’s Death.” East London, 12 September 1997. http://www.anc.org.za/ancdocs/history/mandela/1997/sp970912.html

Creative Commons License 2.5 Flynn-Burhoe, Maureen. 2007. “Stephen Bantu Biko (1940-1977) Thirty Years Later.” >> speechless http://docs.google.com/Doc?id=ddp3qxmz_361xsrzrh


In his May 10, 2007 Address to Shareholders, Paul Desmarais Jr. CEO of the Power Corporation of Canada compared and contrasted his corporation with private equity and hedge funds.

In recent years private equity funds have grown at a phenomenal pace. Collectively they have brought about the privatization of public companies worldwide worth $900 billion! In 2006 alone, the 10 largest private equity funds raised $120 billion in new money destined for privatizations. At first an American phenomenon, private equity funds spread to Canada, the U.K., continental Europe and even Japan. Today in the U.K., 19% of private sector employees, or 3.3 million people, work for businesses owned by private equity firms. In Germany the number is 800,000.

In their early years, private equity funds often brought an added value and better governance to the companies they privatized by replacing ineffective and complacent boards of directors. While they were then generally met by fiercely resistant business managers opposed to privatization, nowadays their job is made easier by the growing number of public company executives who, frustrated by the tedious, distracting and costly compliance to modern-day governance rules and regulations, are more receptive to the idea of private equity funds taking them private. And, let’s not forget that, in today’s world, managers are more mobile and can gravitate to the numerous opportunities offered by private equity funds, where they can receive considerable compensation over a relatively short period of time, while being sheltered from public scrutiny and sensational headlines.

Meanwhile hedge funds, which by nature have a shorter time horizon, now number 9,000 and manage in excess of $1 trillion (that’s right, one thousand billions!). In 2006 alone, $126 billion of new money flowed into U.S. hedge funds. Their presence in the financial markets is substantial: for example, they account for between 30% and 50% of transactions on the New York and London stock exchanges! These funds are lightly regulated private investment pools which initially attracted endowment funds and wealthy individuals, but which today also have pension funds and insurance companies as investors.

While many hedge funds are devoted to generating short-term returns by leveraging financial instruments, I would like to focus on those funds which take positions in widely held public companies and become “activist shareholders” with the view of pressuring those companies into actions which, in turn, will quickly result in added value for shareholders, including themselves. Once they become shareholders, they will often align with other institutional investors who are shareholders of the company, and promote whatever initiatives could quickly generate added value: sale or spinoff s of divisions, cash dividends or repurchase of shares, and cuts in operating costs, are a few examples of what can be on their agenda, in addition to their ultimate goal of an outright sale of the company, which would fetch a premium for control (Desmarais 2007a:3.)

In the same month in an article published in the Canadian Council of Chief Executives journal National and Global Perspectives Desmarais warned of the structural impact on the industrialized world caused by the meteoric rise of private equity and hedge funds in the financial markets.

Is it not ironic that the principal investors in private equity and hedge funds – large institutional investors – are happy to put massive amounts of money in the hands of people who do not register with any securities commission, or have few, if any, governance regulations to adhere to and report on? (Desmarais 2007:16).

In the same edition both Gordon Nixon and Dominic D’Alessandro echoed their concerns.

In 2006, more than 100 of Canada’s public companies were acquired by foreign interests. The list includes some of the oldest and most well-established companies across a broad spectrum of industries – everything from hotels to retailing, to metals and mining [. . .] My concern stems from the fact that the world is awash with capital and that the consolidation trend in many industries will inevitably continue. We are a small country with a relatively small population. Canadian companies typically are not of a size to be global players. All too often, decisions affecting the future of important firms and the communities that they sustain are made solely with a view to the short-term financial consequences. I find it particularly bothersome that so many of our natural resource companies – which I would argue represent unique and irreplaceable assets – are now owned elsewhere (D’Alessandro 2007).

Over the past year, 116 Canadian public companies were acquired by foreign interests, more than any other major country including much bigger economies such as the United States, the United Kingdom, France and all the Nordic countries combined. We have not only seen the disappearance of major Canadian household names, but the loss of Canadian presence in industries where we have long had traditional strengths (Nixon 2007:5).

In May and June, 2007 the 150 C-Suite executives from the top 1000 corporations interviewed by the Gandalf Group were generally optimistic about the Canadian economy (Gandalf Group 2007:4). Some expressed concerns about the increasing levels of foreign ownership in key sectors and about private equity firms hollowing out corporate Canada. 23% have concerns that private equity firms engage in too much short-term thinking (Gandalf Group 2007:32). Most executives now favour restrictions in strategic industries.

The strongest areas of consensus about the negative impacts of private equity relate to keeping the company Canadian owned and about the debt burden of the company. A substantial percentage of executives believe that private equity also has a negative impact on the economic contribution the company will make to Canada and to the community it operates in, on the labour relations of the company and on the governance of the company (Gandalf Group 2007:28).

Bibliography

2006. “Canadian Executives Indicate Human Resources and Rising Canadian Dollar are the Major Business Challenges.” CTV. June 12, 2006.

http://www.ctv.ca/servlet/ArticleNews/show/CTVShows/20060611/ctv_release_20060611/20060612

2007. “C-Suite Survey.” Globe and Mail, Report on Business. 18 June 2007: B5.

http://www.theglobeandmail.com/servlet/Page/document/video/vs?id=RTGAM.20070619.wvcsuite0619&ids=RTGAM.20070619.wvcsuite0619&hub=search

D’Alessandro, Dominic. 2007. “How Can We Conserve Canadian Ownership?” National and Global Perspectives . May 3, 2007. p. 23.

Desmarais, Paul Jr. 2007. “Private equity, public interest.” National and Global Perspectives . May 10, 2007. p. 16.

Desmarais, Paul Jr. 2007a. “Chairman’s Address to Shareholders.” Power Corporation of Canada. May 10, 2007.

http://www.powercorporation.com/powercorp/webcast/2007/PCC_Eng_Discours_P_Desmarais_jr_2007_May11_FINAL.pdf

Gandalf Group. 2007. “C-Suite Survey On The Role of Private Equity.” Report on Business. Globe and Mail. June 14, 2007. http://www.dwpv.com/images/C-Suite_June_2007.pdf

Nixon, Gordon M. 2007. “As the world changes, Canada must adapt.” National and Global Perspectives . March 2, 2007.

Flynn-Burhoe, Maureen. 2007. “Meteoric Rise of Private Equity and Hedge Funds.” >> speechless. September 2007. http://docs.google.com/Doc?id=ddp3qxmz_355dbbcxv


Patrick Watson (1980) vs CTV (2007): the case of Conrad Black: The Canadian Establishment and governance.

Throughout the trial of Conrad Black I wondered why Patrick Watson‘s articulate and well-researched CBC documentary entitled the Canadian Establishment (1980), was not viewed on CBC. Conrad Black was known for a strong and effective offensive tactics when dealing with his image management in the press and until the guilty verdict became publicized the media was discouraged from entirely objective coverage. This may change now that the jury has revealed to their decision. CTV coverage reveals a pro-Black bias describing him as stoic, proud, even …onian, in the face of this trial, almost agreeing with Conrad Black that he is somehow above the law. However, he did glare and skowl at the jury when they gave their decision. They describe how he helped every community he was a part of. They admire his rise from his university education to an emerging career with the press to the circle of the uber-wealthy. They expect him to stand up to this and continue to argue for his own innocence. He was found guilty of obstruction of justice where he removed evidence from his Toronto office and of email fraud which hold a combined possible sentence of 10 to 65 years. Charges of racketeering were dismissed. Nonetheless he stole millions of dollars from Hollinger, and continues to feel no remorse. There appears to be a strong empathetic response to the potential of his doing his real jailtime in an American jail where he is actually going to have to do work such as laundry. There is speculation and some relief that since he is so ‘astute’ in terms of money that he will have provided for himself and his family, Barbara Amiel, their son and daughter, Alanna in some ‘legal’ fashion. CTV journalists are comparing the American and Canadian legal systems in terms of fairness and approaches to access to jury information. They mused about whether American courts would be harsher on Black and his co-accused than their Canadian counterparts who would be more influenced by Black’s position of power, wealth and prestige. They seem to admire Black for his intelligence and his ability to write and do research and imagine him using his minimum security prison to study and write. Although others argue that an American minimium security prison is not an exclusive club prison like those in Canada and Black will not have access to a computer. CTV interviewees describe Black as someone very concerned with his place in history. CTV journalists look for ‘silver lining’ in his situation. They wonder how Black will survive from now to his sentence hearing by Judge … in November. He is no longer a Canadian citizen since he abandoned it to become a British Lord. This means he has no rights to go to Canadian jails which are considered to be friendlier to the uber-wealthy. Black is expected to begin quickly to appeal the jury’s findings. This will not be stalling the sentencing hearing.

What makes Watson’s (1980) revelations so compelling at this time is the way in which he reveals Black’s roots as outsider on Bay Street until he was able to take advantage of widows of Establishment members to get his toe in the door. While Black’s father had some wealth through his brewery, his family lacked the prestige and power of the Canadian Establishment. According to Watson, it was during the era of Conrad Black that the Establishment shifted towards an even more self-serving attitude of entitlement. His business ethics predates that of the mean-spirited arrogance of the financeers in the 1990s. He seems to embody that which is dysfunctional and unsustainable in a social world corrupted by extremes of wealth and poverty.

My own concern with Black was the role he played as media mogul in obstructing access to an objective press, a keystone of democracy. Like the the New Brunswick-Bahamas Irvings prior to their ethical turn, mass media moguls adopt Friedman’s motto that their sole responsibility is to make money. Black claimed that he hoped to provide more of a pro-business, economic efficiency viewpoint to counteract the perceived social justice bias of the media (Flynn-Burhoe).

Do we secretly admire white collar criminals and their brilliant lawyers? Conrad Black and three others are accused of stealing $60M from shareholders to fatten their 5- and 7-figure salaries. Prosecutor Jeffrey Cramer claimed in his opening statement that media mogul Black failed to provide the public with objective accounts of world affairs.

read more | digg story

CTV News. 2007. Conrad Black. July 13, 2007.

Flynn-Burhoe, Maureen. 2006. “Media and Objectivity: a Selected Timeline of Social Events.” >> papergirls. December 6.

Flynn-Burhoe, Maureen. 2007.

Is the Mass Media Coverage Biased in Favour of Conrad Black?”>> papergirls. May 9, 2007.

Watson, Patrick. 1980. The Canadian Establishment. CBC.

Patrick Watson.” Museum TV Archives.

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