Legitimacy of crown corporations in Canada: the case of the Canada Pension Plan Investment Board

As well-functioning welfare systems have continued to be vital in many countries, governments have needed to reform their national pension schemes quite considerably to fulfill ever-expanding obligations and responsibilities. The Canadian government has recognized this regarding the Canada Pension Plan, with significant reform initiatives having been taken in, and since, the 1990s involving its contribution rate and financial administration. A core feature of the reform was the establishment in 1997 of the Canada Pension Plan Investment Board as a semi-autonomous crown corporation to replace a more centralized mode of investment. The Board has sought actively to meet important investment targets and, in the process, to foster its legitimacy by safeguarding its operational autonomy while being responsive to changing political and socio-economic circumstances. Accordingly, it is a worthy focus of research and analysis, providing valuable insights into the establishment and empowerment of organizations in terms of declared purposes and performance expectations of governments and the public.