A year after the referendum that nearly split Canada in two, Quebec is as polarized as ever, its economy in disarray and its morale soured by ceaseless debate over separatism.

Officially, Quebeckers who opposed independence were the victors on Oct. 30, 1995, casting a bare majority 50.6 percent of the votes that were tallied during an evening of wrenching tension.In many ways, however, the outcome turned Quebeckers on both sides into victims. In part because of political uncertainty, outside investment in Quebec has shrunk and thousands of people are leaving for other provinces. Montreal's 12.6 percent jobless rate is the highest of any big Canadian city.

"Nobody should have to live with a sword of Damocles constantly hanging over their heads," Prime Minister Jean Chretien said during a recent foray into Montreal to preach the rewards of Canadian federalism.

Quebec's separatist-led provincial government doesn't minimize the economic woes. Premier Lucien Bouchard is convening a three-day summit of business and labor leaders Tuesday to seek a consensus on deficit-cutting, job creation and tax policies.

Bouchard hopes to gain support for painful government spending cuts that would, in a few years, prove to Quebeckers and outsiders that his Parti Quebecois is capable of governing an independent, solvent nation.

And he wants the province on firmer financial footing when the next referendum takes place, perhaps in four or five years.

Monique Simard, vice president of the Parti Quebecois, said the turn of the century could be a highly symbolic moment for Quebec, though she stopped short of predicting the referendum would be held then.

"Four, five, six years - in politics that's an eternity," she said. "But people who've been strong sovereignists for 20, 25 years agree with our timetable. They are patient. It will happen someday."

Chretien and his federalist allies insist separation is not inevitable, but their strategies vary from week to week.

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Several prominent Quebec federalists were upset when the national government decided in September to ask the Canadian Supreme Court for a ruling on whether Quebec has the right to secede unilaterally.

Justice Minister Allan Rock said the point was to show that Quebec, if it did vote to secede, would face tough negotiations over division of government debt and assets. But the move seemed to play into separatist hands - "It's an attempt to treat Quebec as a captive people," said Bouchard.

Federalists strive to show Quebec benefits of staying in Canada. Chretien just announced an interest-free, federal loan of $64 million to help Quebec's Bombardier Inc. develop a new passenger jet.

Yet some federalists can't resist spotlighting any bit of economic bad news in Quebec, hoping hard times will eventually erode the popularity that Bouchard consolidated with his passionate referendum campaigning last year.

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