Here in Canada, tipping is pretty typical in many situations. The worst practice I find is the 'mandatory' tipping that's sometimes enforced by some businesses. For example, if you go into some restaurants with a group of 10 or more, an automatic %15 tip is applied to the final bill. They say because the large group requires extra effort on the part of the server, but largely I think it's because big groups tip poorly, so to make up for it the business puts a policy in place.
Long story sort, I'm not a super huge fan of tipping, especially as it's become an expected or even mandatory practice here in North America.
When my family went for a vacation in Mexico, they encouraged us, quite often actually, NOT to tip, as tips were already worked into the prices we'd paid on everything. However, knowing how little the staff at the resort we worked at, and the people we encountered actually make, it was hard not to want to tip them.
I think the best policy any country should have is that tipping is an act of generosity based on a good encounter of service from another. I'm happy to tip anyone, but I hate being told you 'have' to. I think our country should change the policies for restaurants, and that restaurants should pay their workers better and we should simply pay our bill. But ask any server, and they'll tell you they'd rather get tips, because it's all 'tax free.' When you only get taxed on a minimum wage basis, you rarely end up with much tax at the end of the year, you keep most of your wage. If you get 'tips' to make up the large difference, and you don't claim them, you usually can walk away with all the cash, no taxes, and in the end you're a drain on our system. Servers love it. Customers who are aware, don't.
Jacob