Terence Corcoran: Carney leads ‘entrepreneurial state’ takeover

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFP CommentTerence Corcoran: Carney leads ‘entrepreneurial state’ takeoverThe creeping rise of government control of the economyPrime Minister Mark Carney speaks to media in Fort McMurray, Alta., announcing that the Pacific Link pipeline has been listed as a project of national interest on Oct. 1, 2026. Photo by Itoro Umanah/Fort McMurray TodayGovernment intervention in the Canadian economy continues to rapidly expand under Prime Minister Mark Carney’s Liberals, directing more and more pools of money into projects and initiatives that are deemed by the government to be essential elements of a new national state-managed crusade to global greatness.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThis week’s fast-tracking of the second phase of LNG exports through Kitimat is widely supported thanks to the impression that it represents a major change in Ottawa’s approach to the development of Canada’s energy economy in the face of Donald Trump’s radical nationalism.This advertisement has not loaded yet, but your article continues below.Never mind the fact that producing high-cost LNG from low-cost natural gas and then converting it back into gas increases greenhouse-gas emissions. Globally, turning gas into liquid for shipment produces about 65 per cent more carbon emissions than a gas pipeline, according to an International Energy Agency study. The transitions from gas to liquid and back also raises the final price, with gas currently priced at $3 per MMbtu compared with $25 for LNG. There has been no mention of the need to purchase carbon offsets for the new pipeline.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe project could also face competition from the United States, where President Trump this week announced an initial deal for an LNG project to export gas from Alaska to South Korea.The misleading policy impression fostered by Carney and others is that the LNG approval is the result of the new aggressive Build Canada Strong movement under the guidance of the Liberals. During Tuesday night’s LNG media show the prime minister droned on, saying “Canada is working. Canada is building big again.” We live in “a world where Canada fully values export diversification and the greater sovereignty it confers. A world where speed, reliability, and predictability are major competitive advantages. A world where Canadians are committed to building Canada strong for all. We have what the world wants. Canada is a reliable and trusted partner. We’re delivering big again. We are building big, building fast. And crucially, as everyone has emphasized, building in the right way. Working together, working for all Canadians. And we are just getting started.”This advertisement has not loaded yet, but your article continues below.As the Carney remake of the government’s role in the economy expands under the guise of rekindling national achievement, far too little attention has been paid to the underlying uneconomic principles driving the transformation.At the root of Carney’s tedious repetitions of national achievement is a belief in the concept of “the entrepreneurial state,” a nation where the government assumes a major role in directing, shaping and controlling investment decisions and economic activity. Carney has never used the phrase since it was popularized by economist Mariana Mazzucato in her 2013 bestseller, The Entrepreneurial State. But, as I’ve notedbefore, Mazzucato and Carney are comrades in arming the state with more economic power.In his book Value(s), Carney described one of Mazzucato’s earlier books on the benefits of government intervention, titled The Value of Everything, as “magisterial.” Two months after Carney was elected, Mazzucato co-authored a media commentary urging Carney to use public finance Institutions such as the Canada Infrastructure Bank and the Business Development Bank of Canada, the Canada Growth Fund and the Venture Capital Catalyst Initiative to “encourage” private investment.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.As an entrepreneurial statist, Carney has followed Mazzucato’s advice. In addition to aligning Ottawa with national and international corporations and financial players, Carney has begun reshaping Canada’s government-based institutions now lining up to follow state directives.• Entrepreneurial statism in action: The list of initiatives flowing out of Ottawa is long, including: The Major Projects Office (MPO) to help build high-profile developments such as high-speed trains and gas pipelines; the Canada Strong Fund (CSF) with $25 billion in government money; and the Canada Growth Fund (CGF) to support — i.e. subsidize — mining and resource developments.• The Business Development Bank (BDC): BDC claims to be “the bank for Canadian entrepreneurs,” although there is little entrepreneurial activity in the bank. Backed by Ottawa and soon with a mandate to achieve only a low “A” solvency rating on its balance sheet, the bank is now expanding into funding small and medium-sized enterprises entering the defence field, including with $700 million in new federal cash.This advertisement has not loaded yet, but your article continues below.• Export Development Corporation (EDC): Also lining up with entrepreneurial state ambitions, the EDC has decided to focus on backing Canadian firms that should be aiming to export more finished products than raw resources. As Andrew Coyne noted the other day, if Canadian business owners thought there were major opportunities to export finished products, they would be on the case.• Entrepreneurial state pension funds (and banks): Canada’s major national and provincial pension funds, previously focused on maintaining value through unbiased investment strategies, are now committing to Canadian investments. Also joining the national investment effort are Canada’s major banks.As Carney barrels ahead with his entrepreneurial state, with more to come, he has the continued indirect support of Mazzucato in the form of a new book, The Common Good Economy: How to Make Capitalism Work for Us All. Her objective: “Radically redesign our economic system around principles of the common good.”That’s not capitalism, nor is the entrepreneurial state.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.