Canada's strong democratic tradition faces challenges that are rooted in separatist sentiments in French-speaking Quebec, controversies over immigration, and the legacy of centuries of abuse of indigenous peoples. The country is prosperous by any standard, with ratings for education, medical care, nutrition and similar social indexes often surpassing those of the United States. Nevertheless, many Canadians remain concerned about the country's political and economic stability. The Canadian dollar, for example, is trading at near-record lows on international markets.

The Liberal Party government of Prime Minister Jean Chretien was elected to a second term on June 2, 1997, winning 155 of Parliament's 301 seats. The remaining seats were divided among four other parties, each with substantial representation. The separatist (known as "sovereigntist" in Canadian political rhetoric) Bloc Quebecois took 44 seats, while the western-based Reform Party won 60 seats. Canada's traditional opposition parties – the Progressive Conservative Party on the political right and the New Democratic Party on the left – regained official party status in the 1997 election with 20 and 21 seats respectively.

The platforms of Canada's political parties frequently reflect regional concerns. The Bloc Quebecois favors some form of independence for the predominantly French-speaking province of Quebec, while the Reform Party based in Canada's western provinces desires stronger provincial control over their abundant natural resources and energy reserves. Other parties reflect economic class-based differences over the pace and form of economic development.

The Chretien government has responded to federal-provincial tensions by giving up some of its spending power in the provinces while attempting to strengthen the federal role in foreign affairs, defense, and other sectors.

Key to the national unity debate is the ongoing issue of Quebec separatism. In a 1980 referendum, the Parti Quebecois sought a mandate from voters in the province to negotiate a new form of sovereignty-association, which would have combined political independence with continued economic union with the rest of Canada. But some 60 percent of Quebec voters rejected the proposal.

Since that time, negotiations among Quebec, the Canadian federal government, and other provinces led to a proposed constitutional accord in 1992 known as the Charlottetown Accord. Despite near-unanimous support from the country's political leaders, this effort at constitutional reform was defeated in Quebec and the rest of Canada in an October 1992 referendum. Today, the balance of power within Quebec and between Quebec and the rest of Canada's provinces continues to teeter back and forth, with election results remaining close enough to keep the sovereignty debate boiling.

The Quebec controversy has been reinforced in part by divisions among Canadians over rights of indigenous peoples and of immigrants. Commissions have recommended making significant political reforms and paying reparations to Inuits and other native peoples. Steps in that direction have sparked a racial backlash, however. Similarly, racial tensions have strained Canada's long tradition of providing haven for immigrants from around the world.

Canada's government is a constitutional monarchy with a federal parliamentary system similar to that of several industrialized European countries. Canada's Parliament consists of an elected House of Commons and an appointed Senate, which serves for life. Queen Elizabeth II of England, as Queen of Canada, remains a symbol of national unity.

The U.S. Department of State in 1998 reported these statistics about Canada's population, culture and social conditions:

Population: 30.2 million
Annual growth rate: 1.5 percent
Ethnic groups: British, 28 percent; French, 23 percent; indigenous Indian and Eskimo, 2 percent; mixed background, 26 percent
Religions: Roman Catholic, 42 percent; Protestant, 40 percent
Languages: English, French
Education: Ninety-nine percent of population 15 years and older have at least a ninth-grade education.
Health: Infant mortality rate – 7 per 1,000; life expectancy – 75 years for men, 82 years for women
Work force: 15 million

— Washingtonpost.com fellow Christopher Simpson