There’s an increasing sense of anxiety among young people about their future, said Axworthy, noting the standard support, educational and employment systems are beginning to look precarious and problematic. “That sense of uncertainty has really translated into political movements and attitudes, which — in a paradoxical way — end up providing responses and answers that are totally antithesis to the kind of anxiety and grievances that people face.”
He described his early days, growing up in the north end of Winnipeg in one of Canada’s most culturally diverse neighbourhoods, which he said helped him understand the importance and benefits of pluralism. It was one of the things that led him to politics in 1968, when he represented the Liberal Party against a veteran Member of Parliament in downtown Winnipeg. The election, which he lost, made him realize the endowment of trust that’s given to leaders.
“That to me goes back to, . . . how do we begin to rebuild trust in our political institutions [and] in our democratic institutions?”
Axworthy called his 27 years as an elected official an opportunity to be engaged, to be involved in some important decisions. During his tenure as Minister of Employment and Immigration under Prime Minister Pierre Trudeau, Canada’s private sponsorship of refugees program was introduced as a response to the massive migration of Vietnamese refugees after the war.
“We were a unique country in the world. Close to 80 per cent of Canadians fully endorsed refugee and immigration programs opening up our doors. . . . We don’t do that anymore. For all kinds of reasons, the sponsorship program doesn’t work. And we brought in large numbers of Ukrainians escaping that horrible war, but we didn’t sponsor them. We gave them temporary visas, which meant they didn’t have the level of public support or government support.”
The country’s shift in attitude around immigration represents that old institutions are no longer working, he said. “We’re not paying attention to them. We’re not supporting them. We’re not funding them.”
While Axworthy agreed countries should take a look at how their systems and programs are being delivered, he also noted many countries aren’t looking towards reform, they’re trying to collapse and reject the system. In particular, he pointed to a global financial system that’s being hijacked by tariffs and even sanctions.
Institutional investors understand, he added, more than most Canadians the importance of consistency in legal rules, regulations and practices in terms of the movement of funds around the world.
“Increasingly, some of the experts are saying, ‘Wait a minute, that flow of money — which for a long time was the liquidity and the lubricant of our international economy — is now being sidetracked into a series of politically motivated decisions that decide: Who do we reward? Who do we punish? Who do we sanction?’”
Axworthy called for a collaborative approach and more diversity in foreign investment. “Sixty per cent of [the Canadian Pension Plan]’s investments are in the U.S. What happens if we start turning the tools back on them? Otherwise, we’re going to be caught in a major fight between the colossus of China and the U.S. and we’re simply going to be roadkill along the way.”
He encouraged institutional investors in the room to generate discussions that help the federal government come to grips with this reality. He highlighted the important roles they play as pension trustees, but also as Canadian citizens.
“Pension funds, universities, governments [and] businesses have a unique role to play in this changing world, trying to establish some new designs, new architectures, new institutional base, to invest not only in the companies that will shape the future, but also the guardrails that will keep that future human centred.”
In the face of the destruction and dismantling of institutions, Axworthy implored the audience to use the tools they have — in finance, diplomacy, technology, values, participation, openness and pluralism — to prove another path is possible. “As Canadians, in our pragmatism, our international reach, our anchoring in a sense of responsibility and civic obligation — put it to use for that seventh generation to come.”
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