Canada Land of Hope and Hustle

By Peter Stoler/Montreal

A decade ago, the adjectives most often used to describe Quebec were angry, sullen or depressed. Now writers seeking to characterize Canada's French- speaking province are more likely to use such words as vibrant, self- assured and confident. With good reason. Back in the 1970s, Quebec was a troubled and troubling region, riven by internal frictions, feuding with Ottawa's federal government and openly threatening to secede from the country. Political turmoil was aggravated by economic crisis, as nationalism among the 80% of Quebecers whose first language is French drove out many English- speaking businesses and helped boost the unemployment rate to 18%. Today Quebec is at peace not only with Ottawa but with itself as well. Many parts of the province are already enjoying newfound prosperity; elsewhere, at least the beginnings of a recovery have taken hold. "Quebec," says the Montreal daily Le Devoir, "has entered a whole new era."

The most significant change is the deflation of the separatist bubble. The cooling of extremism resulted partly from the passage of provincial laws making French Quebec's official language and assuring French speakers that they would not be treated as second-class citizens. More important, probably, was the realization that Quebec, whose 6.5 million residents comprise nearly a quarter of all Canadians, could not hope to stand alone either politically or economically. Quebec voters said non to separation in a 1980 referendum. They repeated the message two years ago by turning against the nationalist Parti Quebecois long led by Rene Levesque and overwhelmingly electing a Liberal government headed by Robert Bourassa, 54, the same man they had ousted from office in 1976.

The province definitively buried the separatist banner last June, when it agreed to ratify Canada's 1982 federal constitution. In return, Quebec won passage of amendments recognizing it as a "distinct society," giving the provincial government increased power to preserve French-Canadian culture and allotting it the right to nominate three of the country's nine Supreme Court justices. "Quebec has won one of the greatest victories of her history," exulted Bourassa. His elation was shared by Canada's Conservative Prime Minister Brian Mulroney, himself a bilingual Quebecer, who could personally claim much of the credit for the deal that finally anchored the province in the Canadian confederation.

With the end of the sterile political feuds, Quebec has witnessed a dramatic upturn in its economy. Three new office towers are adding nearly 2 million sq. ft. of office space to Montreal's thriving real estate market. Other construction -- apartments, condominiums, new hotels -- is altering the Montreal skyline so fast that photographs taken only a year ago are already outdated. In Quebec City the building of a new downtown convention center and hotel complex has left the old historic quarter essentially unchanged. Hemmed in by the St. Lawrence River on the south and its ancient walls elsewhere, vieux Quebec remains a warren of narrow, hilly streets, dominated by two landmarks -- the venerable, copper-turreted Chateau Frontenac hotel and the ornate 19th century building that houses Quebec's National Assembly. South Korea's Hyundai Motor Co. is building a new automobile factory at Bromont, located 40 miles southeast of Montreal, that will provide jobs for some 2,000 Quebecers.

There are other signs of economic improvement. Discouraged from participating in business or federal politics by language barriers, tradition and prejudice, Quebecers used to lean toward provincial government, the priesthood or university professorships when it came to choosing careers. Now a growing number are hearing the call of the cash register. Quebec's colleges and universities currently produce 40% of Canada's M.B.A. graduates, many of whom go to work for Quebec-based firms or start their own local businesses. Five years ago only 7.5% of all Quebecers owned shares in companies. Today, aided by a provincial program aimed at encouraging stock ownership, at least 11% of the population invests in the market. Quebec's businessmen, meanwhile, are becoming ever more aggressive salesmen. Last year the province exported nearly $11.5 billion (in U.S. dollars) worth of goods and services to the States, in contrast to less than $3 billion in 1976. "Business is Quebec's new religion," says Insurance Agent Jean-Louis Beaubien, 32. "We've all become converted."

The effects of that conversion are not limited to the marketplace. In the cultural field, Quebecers have long pointed with pride to Montreal. Home to a worldclass symphony orchestra and a theater and gallery complex called the Place des Arts, the city is host to an annual film festival that draws cinema professionals and fans from around the world.

Economic recovery and cultural resurgence, however, have not totally dissipated the lingering clouds over Quebec. A new recession could erase the . recent economic gains. Unemployment remains unacceptably high: though more than 100,000 new jobs have been created in Quebec since the beginning of the year, the local jobless rate continues to hover at 10.6%. The Bourassa government, which has taken long-overdue steps to reduce the provincial deficit, hopes to accelerate Quebec's economic revival by selling unprofitable government-owned corporations and offering incentives to companies that wish to invest money, open new plants and create more jobs.

So far, the government's hopes seem justified. A study by the Conference Board of Canada, a business research group, shows that Quebec's economy is growing almost as fast as that of Ontario, the country's most heavily industrialized province. After Ontario and Alberta, Quebec has the highest per capita income in the country. Moreover, census figures suggest that the exodus some feared would depopulate Quebec has ended. Since 1976 the province's population had declined steadily as Quebecers left in search of jobs -- a trend aggravated by a declining birthrate that this year fell to a mere l.5 children per family. Figures released this summer show that for the first time in a decade, Quebec's population actually increased slightly. By voting with their feet, returning Quebecers and other migrants seemed to be expressing confidence in the future.