<Li> The fourth party system has involved the rise of the Reform Party, the Bloc Québécois, and the merger of the Canadian Alliance with the Progressive Conservatives . It saw most parties move to one - member - one - vote leadership contests, and a major reform to campaign finance laws in 2004 . The fourth party system has been characterized by market - oriented policies that abandoned Keynesian policies, but maintained the welfare state . </Li> <P> Clarkson (2005) shows how the Liberal Party had dominated all the party systems, using different approaches . It began with a "clientelistic approach" under Sir Wilfrid Laurier, which evolved into a "brokerage" system of the 1920s, 1930s and 1940s under William Lyon Mackenzie King . The 1950s saw the emergence of a "pan-Canadian system", which lasted until the 1990s . The 1993 election--categorized by Clarkson as an electoral "earthquake" which "fragmented" the party system, saw the emergence of regional politics within a four party - system, whereby various groups championed regional issues and concerns . Clarkson concludes that the inherent bias built into the first - past - the - post system, had chiefly benefited the Liberals . </P> <P> The Liberals are descended from the mid-19th century Reformers who agitated for responsible government throughout British North America . These included George Brown, Robert Baldwin, William Lyon Mackenzie and the Clear Grits in Upper Canada, Joseph Howe in Nova Scotia, and the Patriotes and Rouges in Lower Canada led by figures such as Louis - Joseph Papineau . The Clear Grits and Parti rouge sometimes functioned as a united bloc in the legislature of the Province of Canada beginning in 1854, and a united Liberal Party combining both English and French Canadian members was formed in 1861 . </P> <P> At the time of confederation of the former British colonies of Canada (now Ontario and Quebec), New Brunswick and Nova Scotia, the radical Liberals were marginalized by the more pragmatic Conservative coalition assembled under Sir John A. Macdonald . In the 29 years after Canadian confederation, the Liberals were consigned to opposition, with the exception of one stint in government . Alexander Mackenzie was able to lead the party to power in 1873 after the Macdonald government lost a vote of no confidence in the House of Commons because of the Pacific Scandal . Mackenzie won the 1874 election, but lost the government to Macdonald in 1878 . Liberals spent the next 18 years in opposition . </P>

When was the liberal party of canada formed