The structure of party competition and politics of blame avoidance: A Review of the OAS reform in Canada

Eun Min Su

doi:10.17000/kspr.21.2.201406.151

This article tries to explain the retrenchment of universal pension OAS in canadathrough change of party competition structure and blame avoidance strategy. Asstate debt and deficit increased, The conservative party and liberal party stopedthe politics of welfare expansion and played the politics of welfare retrenchmentcompetitively. First, the try of conservative party to introduce the partialde-indexation on OAS benefit was failed by popular opposition. The reasonconservative party fail was contributed to social democratic lined 'new democraticparty(NDP)' opposition with liberal party to the ruling party's effort to reduce OASbenefit and to lacking of politically technical arrangments to mitigate an oppositionthough the partial de-indexation on OAS benefit were very visible action to applythe elderly of OAS recipients in canada. But the second try of conservative partyto clawback benefits from OAS were introduced successfully. The reason ofconservative party's powerful drives and success was contributed to positiveconfrontation to the rising of extremely right lined 'reform party' demanded theend of universality, and to politically technical arrangements to mitigate anddisperse an opposition, making pension system selectively and complicatelythrough pension benefit linkaged tax system. The liberal party that came to power in 10 years proposed tax-exempted and family income-tested ‘Senior’s Benefit’, combining OAS and GIS for reduced budgetand deficit similiar with conservative party. Senior’s Benefit ran into strong criticismfrom the left and right of political spectrum, and the reform eventually waswithdrawn in late July of 1998 though it was progressive style and liberalgovernment made efforts to minimize an political backlash. Getting encouragedwith the fall of NDP and conservative party, liberal government attempted so-called‘centrist’ policy but received attack for demise of universality from left pary andexessiveness of progressity from right. For understanding liberal government’ failureof introducing Senior’s Benefit, considering timing condition of improved financialsituation and expected budget balancing was necessary except for party competitionstrucuture and political technicque.

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