Trends in the performance of arms-length agencies in the Government of Canada

Abstract

Canada mirrors developments in most countries with the growth of government agencies created to deliver public goods—whether it is service delivery, adjudication of disputes, regulatory oversight, enforcement activities—purported to benefit from an arms-length relationship to cabinet. There is a robust comparative literature documenting the “agencification” of the state, yet Canadian studies remain mostly absent. This article draws on the Government of Canada's Public Service Employee Survey (PSES) microdata from 2017, 2011, 2005, and 1999 to test key hypotheses advanced by proponents of agencification, specifically that agencies are more innovative, autonomous, and efficient public organizations. We find that those working in enforcement agencies exhibit few of the purported advantages of agencification. We also observe that in recent years regulatory, adjudicative, and parliamentary agencies consistently surpass conventional department organizations on these metrics. Future research avenues are proposed to explore how governance and oversight reforms may explain this shift.