The quality of life in Montreal is one of the best in the world. But Montreal is stagnating. Economic performance is weak: the lowest among 23 cities in North America with populations of 2.0 million or more inhabitants. This is a far cry from the past. Unless something changes the situation will only get worse.

The main cause of the problem is the modèle québécois whose aim, understandably, has been to protect a small French‐speaking island in a vast English‐speaking ocean. The main elements of the model are French supremacy, high taxes, the highest in North America, and a defensive attitude. Unfortunately, they have proved to be a toxic cocktail for Montreal, a cosmopolitan city which lives on the creativity of its people and the economic stimulous of its close business connections with the out‐side world.

Drawing on the theory of business strategy, we argue that a new segmentation strategy is required to break‐out of the current immobilisme created by three competing and irreconcilable visions for Quebec: federalism, independence and transformation. A new strategy that recognizes that Quebec and Montreal are different entities that require different business strategies.

As Quebec continues to pursue the governance framework it has developed over the past fifty years to create the future it requires, Montreal must adopt a modèle montréalais to create the future it requires. In short Montreal must becomes a city state, similar to Hong Kong for example. Such a strategy is not impossible to achieve; it is only a question of will.

The city-state, we suggest, offers the best environment for creativity and entrepreneurship to flourish, and our best opportunity for economic renewal because it offers:

1. The highest level of liberty in Canada, including two official languages.
2. The best support for entrepreneurs.
3. An intelligent system of taxation which rewards risk taking.
4. The best educational system where our children will be taught to be trilingual citizens of the world.
5. One of the best qualities of life in the world.

The success of the project will be easy to measure: by the growing number of our university graduates who stay to pursue their careers and new educated entrepreneurial – immigrants who are drawn to the city.

The author of this proposal is a concerned Montrealer and management consultant, specializing in business strategy, who has been persuaded by his eldest daughter to write down his thoughts on how to solve the riddle of Montreal’s long economic decline, which has attracted much attention in the French press and more recently in the English.

It is hoped that this proposal will generate more than conversation. My belief is that the time has come for action. Success is a matter of will. Our future, ours and our children’s, depends on it.