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Uncovering the Role of Neoliberalism in Poverty Reduction Policy in Ontario, Canada: A Descriptive Case Study and Critical Analysis
Received: 16 October 2021 / Revised: 11 December 2021 / Accepted: 14 December 2021 / Published: 20 December 2021
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This paper uses a descriptive case study method to analyze and critically review the emergence of a provincial poverty reduction strategy in Ontario, Canada, which was implemented in 2008 and updated in 2014. The purpose of this study is twofold. : first, it defines the principles of neoliberalism and examines the historical growth of neoliberal thought in Canada, and especially in Ontario, from the 1980s to the present. Using a combination of primary, secondary and gray literature, this article discusses the ways in which neoliberal ideologies and rhetoric are deeply embedded in political thought and discourse within the province. Using a critical theory framework, the paper highlights the contrasting ways in which neoliberal values have been adopted by different political parties in power and the detrimental impact this support has had on individuals living in poverty in Ontario. Second, the paper illustrates the powerful ways in which anti-poverty movements and community advocacy groups have come together to drive the creation of a provincial poverty reduction strategy. The analysis concludes with a critique of neoliberal influences on the strategy’s recommendations and the future perspective of the poverty reduction strategy based on the current political climate in the province.
Neoliberalism, as a hegemonic ideology, has played a key role in shaping Canadian public policy at the federal and provincial levels (Giroux 2004; Raddon 2012). An analysis of the political discourses and linguistic techniques used to shape policy demonstrates the extraordinary power that neoliberal principles have had over the prioritization of specific goals, such as fiscal austerity, on the political agenda. This paper uses descriptive case study methodology to weave a historical and critical narrative of the process of neoliberalization in Canada, particularly its development in Ontario and the impact it has had on poverty reduction policymaking in the province. Furthermore, this paper seeks to examine the role that neoliberal ideologies played in the creation of anti-poverty movements within the province.
This article uses a single case study design to enable a deeper and historically situated analysis of neoliberalism and its impact on welfare policy. The advantage of the case study approach is that it provides a comprehensive and detailed understanding of an intervention or topic of interest that may be too complex to study otherwise (Denzin and Lincoln 2011; Yin 2003). Understanding the impact of a political ideology, such as neoliberalism, on social policy is an example of such a complex and multifaceted phenomenon. The purpose of a descriptive case study is to explain a phenomenon or intervention in the specific context in which it occurs (Baxter and Jack 2008; Yin 2003). Data are collected without manipulating variables or changing the environment; the idea is to get a complete, rich and detailed picture of an object (Yin 2003).
The theoretical framework that underpins the analysis of this case study is critical theory. At its core, critical theory seeks to question systems of power and dominance by questioning the organization of social life that is taken for granted, recognizing the existence of structural inequalities and confronting the root causes of these inequalities (Kincheloe et al. 2018). Critical theory also emphasizes the role that political structures play in the (re)production of oppression and privilege, with the ultimate goal of elevating the voice of oppressed groups and decentralizing privilege (Kincheloe et al. 2018). Social justice, empowerment, and emancipation remain central to the ethos of the critical theory paradigm.1 The current study uses Marxist-informed critical theory to analyze how neoliberal and capitalist values are maintained and legitimized within political narratives through the imposition of specific ideas. structures and practices (Azmanova 2020; Kellner 1990). The application of Marxist critical theory is common in this research because it helps shed light on the distribution of power in society, especially between the rich and working classes, and shows how this power is realized through social and political dynamics (Azmanova 2020). Note that attention is also paid to the hegemonic2 nature of neoliberal thought, i.e., its normalization and inclusion in everyday rhetoric and the consequent consequences that rhetoric has on the lives of Ontarians living in poverty.
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Data sources for this paper come from a combination of government documents, primary, secondary and gray literature. Analysis of these sources reveals that the development of neoliberalism and poverty reduction efforts in Ontario can be broadly classified into two phases, beginning with a general shift toward neoliberal policies at the federal level, followed by the subsequent neoliberalization of provincial policy and the rise of provincial anti-poverty movements. This article attempts to offer a discussion of these two phases and examine how these influences shape the overall political arena and approaches to poverty reduction in Ontario, Canada.
Political discourse is shaped by political ideology, and one of the dominant ideologies shaping the Canadian political arena is neoliberalism. Neoliberal thought developed in the context of the global economic crisis that began in the early 1970s and spread internationally through interconnected actors and institutions. Since then, this has led to wide-ranging changes in the social organization of work, labor relations and public policy. In the book A Brief History of Neoliberalism, David Harvey states the following: Neoliberalism is […] a theory of political economic practices that proposes that human well-being can best be advanced by freeing individual entrepreneurial freedoms and capabilities within an institutional framework. characterized by strong private property rights, free markets and free trade. The role of the state is to create and maintain an institutional framework that is suitable for such practices (Harvey 2005, p. 2)
As this passage illustrates, neoliberalism is a theory or philosophy of government that holds that the welfare of the nation and its citizens is best provided by free market enterprise; where markets regulate the distribution of wealth and where few restrictions are placed on business activity and ownership versus strong private property rights (Raddon 2012; Harvey 2005).
Proponents3 of neoliberal thought claim that open, competitive and unregulated markets provide the best mechanism for the distribution of wealth within any society and that the state should not take an active role in the functioning of the economy – this premise is called market fundamentalism (Raddon).. 2012.; Giroux 2004). In addition to this basic definition, there are five central concepts that underlie neoliberalism: pro-individualism, freedom of choice, market certainty, laissez-faire government, and minimal government intervention within the market (Larner 2000; Steger and Roy 2010). The first two concepts, pro-individualism and freedom of choice, are often presented by supporters of neoliberals as progressive features that are essential in an increasingly globalized world. Harvey (2005) argues that for any ideology to become dominant or hegemonic, as neoliberalism has done, it must appeal to the general population by evoking the values, desires and possibilities of new opportunities.
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Neoliberalism has taken its place in the global political arena by arguing that state interventions within the economy and into the lives of autonomous individuals are repressive because they violate the principle of human dignity and freedom of choice (Harvey 2005). This implies that under strong state involvement collective welfare is held above individual benefit, thus preventing individuals from realizing their full financial potential (Harvey 2005). The role of government, according to neoliberal theory, should only be to protect the market by maintaining policies that support the dominance of market forces (Harvey 2005; Steger and Roy 2010). Therefore, neoliberal ideology advocates a minimalist non-interventionist state (Larner 2000).
However, a derivative of this pro-individualist concept is that citizens are expected to be financially independent, which reduces the state’s responsibility in providing social support to citizens, unless under
