Crow’s Nest Pass Railway Agreement

  You are working in the Government of British Columbia as an economist, and have been asked to write a briefing note to inform Premier Richard McBride about the proposed agreement between the Canadian Government and the Canadian Pacific Railway to build a rail connection between Lethbridge in the Territory of Alberta and Nelson BC. • Why should the government act? What is the rationale? Why won’t the market solve the problem on its own? • Why is there pressure to act now? • Is the agreement on the whole a good idea from an economic perspective? Who is likely to benefit, and will there be losers?