Connect with us
[bsa_pro_ad_space id=12]

Business

Canada should already be an economic superpower. Why is Canada not doing better?

Published

11 minute read

From Resource Works

Tej Parikh of the Financial Timess says Canada has the minerals but not the plan

Tej Parikh is the economics editorial writer for The Financial Times, a British daily newspaper. He joins our Stewart Muir for a Power Struggle interview. And we include in the following report some points from a guest column by Parikh in Canada’s National Post, which carried the headline ‘How Canada can unlock its economic superpower potential.’

Parikh begins the Power Struggle interview with this: “There’s an enormous economic potential here, very much the same geographic advantages that have underpinned America’s economic emergence over the last 100 years. . . . Given everything we understand about the advantages that countries need to grow, why is Canada not doing better economically?” He added: “When you break it down and you look at why income per capita in Canada has perhaps not increased as fast as we might expect on the basis of those advantages, it really kind of breaks down to three components. One is investment, so how much capital goes into the country?

The second is labour, and not just the amount, the size of the workforce you have, but how well you utilize the workforce. And then the third component is something that economists like to call a total-factor productivity, which is essentially your innovative ability and your ability to bring together capital and people. “And when you look at Canada as opposed to other large economies . . . you begin to see that actually there are a lot of restrictions in Canada, not just because of its vast geography but because of regulation, that it actually can’t combine its capital and labour as productively as it could.

“It’s about creating those supply chains and critical minerals that the Western world is currently short of. Given it (Canada) has these vast raw material resources, there is a massive scope for it to become even more integrated into Western supply chains in particular and to become a supplier of these things.” From Parikh’s National Post column: “The country is energy independent, with the world’s largest deposits of high-grade uranium and the third-largest proven oil reserves. It is also the fifth-largest producer of natural gas.Canada boasts a huge supply of other commodities too, including the largest potash reserves (used to make fertilizer), over one-third of the world’s certified forests and a fifth of the planet’s surface freshwater. Plus, it has an abundance of cobalt, graphite, lithium and other rare earth elements, which are used in renewable technologies. “But the nation has lacked the visionary leadership and policy framework to capitalize on its advantages.”

Watch the full interview here:

Baçk to Power Struggle: “Investors right now will know that Canada has all of this latent potential, they will know that there are resources there, they will know that there are talented workers in Canada. But (they need) the answers to what barriers there are to business and how they can be reduced, and I think that’s the piece that Canada and its provinces can do a better job on. “That’s the thing that I think Canada would benefit from, showing how it is a kind of a more unified country and showing how that it is a unified marketplace where investors and businesses can develop expansive supply chains.”

In the National Post: “A country with its geography could clearly generate higher output. To do so, the Canadian economy needs to become more efficient, raise investment and attract more high-skilled workers. Here’s how. “Canada places significant bureaucratic burdens on the movement of people and goods too. This includes restrictions on the sale of certain goods across provincial borders, and variations in licences and technical standards that hinder scaling, competition and efficient resource allocation across the country.

“A 2022 study by the Macdonald-Laurier Institute found that Canada’s economy could grow by 4.4 to 7.9 per cent in the long term — up to $200 billion a year — if it eliminated internal trade barriers via mutual recognition policies. Similar reforms in Australia in the 1990s helped to boost productivity there. “Simplifying its complex tax system, expediting planning processes, easing red tape for foreign direct investment and developing economic partnership mechanisms for Indigenous populations, in tandem with internal trade reforms, would help businesses across the industrial supply chain tap into the nation’s vast energy and mineral resources.”

On Power Struggle: “You can be rich in oil and natural gas. But obviously over the last 10, 15 years the global economy has been thinking about alternatives. In Europe and in the UK and in some states in the US, there’s a concerted effort to shift to cleaner energy sources. Canada has vast access to the critical minerals that underpin a lot of renewable energy sources. And then you can go further than that. “This isn’t just about having access to those, you know, old world energy sources. This is access to the type of energy sources that the world is looking for. So Canada is aligned to the renewable transition and I was quite surprised, actually, that in the last 10 to 15 years you haven’t really heard Canada’s name in that. I thought it was about time that Canada plays that up a bit more and the opportunities it has there.”

Tej Parikh continued: “This isn’t about just digging up Canada and exploiting its raw materials. It’s about finding ways in which you can create economic compacts with Indigenous communities, create economic compacts with Indigenous communities. “It’s a way in which you can sustainably mine parts of the country and ensure that, as you are developing underground resources in Canada, you are also developing local economies. Developing an industry means you develop jobs.

“Once you start developing factories and industries in certain areas, then financial services, commercial roles, all of these things build up, and that’s how I think the debate needs to be kind of pushed forward a little bit. “Once you start developing finance around these industries, you can also find ways to make these industries even more sustainable and environmentally friendly.”

“I think there are very clever ways in which Canada and all Canadians can see that actually these natural resources that the country has is actually an asset that everyone has a share in.” Stewart Muir then raised the Donald Trump issue: “Where have you landed on what Trump is all about? I mean, is this a poker game? Is it a chess match? Is it a street fight?”

Tej Parikh: “He likes negotiating and I think, from what we can understand from his tariff policy, he takes things to extremes and then he rows things back and he tries to gain concessions where he can. And I think he will take the same approach on most policy he has. I mean, he sees the world through a transactional lens. It’s ‘what can the other people offer me and how can we do a deal to ensure that I can gain that?’ “And I think in some sense, you know, yes, he is unpredictable, above and beyond that. But I think if you know that that's his framing, then I think it means that you know others just need to adjust to it and be pragmatic in it. And that is essentially what we have seen from the way the Canadian prime minister has been interacting with Donald Trump. You have to be pragmatic if you know what the threat could be.”

Parikh added: “I think the first thing is (Prime Minister Mark Carney) should build on the momentum that he has, the political momentum he has on reducing internal trade barriers in Canada. You then create the groundwork in order to start taking advantage of the mineral resources and the natural resources.” “Once Canadians start to feel that everyone is benefiting from the natural resources in the country and there are avenues to recycle the revenues from those sectors into the country, whether that’s through housing or developing infrastructure, improving public services, you then have this kind of reinforcement effect between the country and its natural resources and its assets and the development of peoples, and I think working on that will kind of provide the groundwork for Canada’s emergence.”

In the National Post: “The Canadian economy is at a crossroads. The belligerence of its main trading partner is driving consensus around boosting the national economy. The world needs what Canada has in abundance. The nation has a unique chance to reach its potential. If it wants to.”

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

More from this author

Business

Prime minister can make good on campaign promise by reforming Canada Health Act

Published on

From the Fraser Institute

By Nadeem Esmail

While running for the job of leading the country, Prime Minister Carney promised to defend the Canada Health Act (CHA) and build a health-care system Canadians can be proud of. Unfortunately, to have any hope of accomplishing the latter promise, he must break the former and reform the CHA.

As long as Ottawa upholds and maintains the CHA in its current form, Canadians will not have a timely, accessible and high-quality universal health-care system they can be proud of.

Consider for a moment the remarkably poor state of health care in Canada today. According to international comparisons of universal health-care systems, Canadians endure some of the lowest access to physicians, medical technologies and hospital beds in the developed world, and wait in queues for health care that routinely rank among the longest in the developed world. This is all happening despite Canadians paying for one of the developed world’s most expensive universal-access health-care systems.

None of this is new. Canada’s poor ranking in the availability of services—despite high spending—reaches back at least two decades. And wait times for health care have nearly tripled since the early 1990s. Back then, in 1993, Canadians could expect to wait 9.3 weeks for medical treatment after GP referral compared to 30 weeks in 2024.

But fortunately, we can find the solutions to our health-care woes in other countries such as Germany, Switzerland, the Netherlands and Australia, which all provide more timely access to quality universal care. Every one of these countries requires patient cost-sharing for physician and hospital services, and allows private competition in the delivery of universally accessible services with money following patients to hospitals and surgical clinics. And all these countries allow private purchases of health care, as this reduces the burden on the publicly-funded system and creates a valuable pressure valve for it.

And this brings us back to the CHA, which contains the federal government’s requirements for provincial policymaking. To receive their full federal cash transfers for health care from Ottawa (totalling nearly $55 billion in 2025/26) provinces must abide by CHA rules and regulations.

And therein lies the rub—the CHA expressly disallows requiring patients to share the cost of treatment while the CHA’s often vaguely defined terms and conditions have been used by federal governments to discourage a larger role for the private sector in the delivery of health-care services.

Clearly, it’s time for Ottawa’s approach to reflect a more contemporary understanding of how to structure a truly world-class universal health-care system.

Prime Minister Carney can begin by learning from the federal government’s own welfare reforms in the 1990s, which reduced federal transfers and allowed provinces more flexibility with policymaking. The resulting period of provincial policy innovation reduced welfare dependency and government spending on social assistance (i.e. savings for taxpayers). When Ottawa stepped back and allowed the provinces to vary policy to their unique circumstances, Canadians got improved outcomes for fewer dollars.

We need that same approach for health care today, and it begins with the federal government reforming the CHA to expressly allow provinces the ability to explore alternate policy approaches, while maintaining the foundational principles of universality.

Next, the Carney government should either hold cash transfers for health care constant (in nominal terms), reduce them or eliminate them entirely with a concordant reduction in federal taxes. By reducing (or eliminating) the pool of cash tied to the strings of the CHA, provinces would have greater freedom to pursue reform policies they consider to be in the best interests of their residents without federal intervention.

After more than four decades of effectively mandating failing health policy, it’s high time to remove ambiguity and minimize uncertainty—and the potential for politically motivated interpretations—in the CHA. If Prime Minister Carney wants Canadians to finally have a world-class health-care system then can be proud of, he should allow the provinces to choose their own set of universal health-care policies. The first step is to fix, rather than defend, the 40-year-old legislation holding the provinces back.

Continue Reading

Alberta

COWBOY UP! Pierre Poilievre Promises to Fight for Oil and Gas, a Stronger Military and the Interests of Western Canada

Published on

Fr0m Energy Now

By Maureen McCall

As Calgarians take a break from the incessant news of tariff threat deadlines and global economic challenges to celebrate the annual Stampede, Conservative party leader Pierre Poilievre gave them even more to celebrate.

Poilievre returned to Calgary, his hometown, to outline his plan to amplify the legitimate demands of Western Canada and not only fight for oil and gas, but also fight for the interests of farmers, for low taxes, for decentralization, a stronger military and a smaller federal government.

Speaking at the annual Conservative party BBQ at Heritage Park in Calgary (a place Poilievre often visited on school trips growing up), he was reminded of the challenges his family experienced during the years when Trudeau senior was Prime Minister and the disastrous effect of his economic policies.

“I was born in ’79,” Poilievre said. “and only a few years later, Pierre Elliott Trudeau would attack our province with the National Energy Program. There are still a few that remember it. At the same time, he hammered the entire country with money printing deficits that gave us the worst inflation and interest rates in our history. Our family actually lost our home, and we had to scrimp and save and get help from extended family in order to get our little place in Shaughnessy, which my mother still lives in.”

This very personal story resonated with many in the crowd who are now experiencing an affordability crisis that leaves families struggling and young adults unable to afford their first house or condo. Poilievre said that the experience was a powerful motivator for his entry into politics. He wasted no time in proposing a solution – build alliances with other provinces with mutual interests, and he emphasized the importance of advocating for provincial needs.

“Let’s build an alliance with British Columbians who want to ship liquefied natural gas out of the Pacific Coast to Asia, and with Saskatchewanians, Newfoundlanders and Labradorians who want to develop their oil and gas and aren’t interested in having anyone in Ottawa cap how much they can produce. Let’s build alliances with Manitobans who want to ship oil in the port of Churchill… with Quebec and other provinces that want to decentralize our country and get Ottawa out of our business so that provinces and people can make their own decisions.”

Poilievre heavily criticized the federal government’s spending and policies of the last decade, including the increase in government costs, and he highlighted the negative impact of those policies on economic stability and warned of the dangers of high inflation and debt. He advocated strongly for a free-market economy, advocating for less government intervention, where businesses compete to impress customers rather than impress politicians. He also addressed the decade-long practice of blocking and then subsidizing certain industries. Poilievre referred to a famous quote from Ronald Reagan as the modus operandi of the current federal regime.

“The Government’s view of the economy could be summed up in a few short phrases. If anything moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

The practice of blocking and then subsidizing is merely a ploy to grab power, according to Poilievre, making industry far too reliant on government control.

“By blocking you from doing something and then making you ask the government to help you do it, it makes you reliant. It puts them at the center of all power, and that is their mission…a full government takeover of our economy. There’s a core difference between an economy controlled by the government and one controlled by the free market. Businesses have to clamour to please politicians and bureaucrats. In a free market (which we favour), businesses clamour to impress customers. The idea is to put people in charge of their economic lives by letting them have free exchange of work for wages, product for payment and investment for interest.”

Poilievre also said he plans to oppose any ban on gas-powered vehicles, saying, “You should be in the driver’s seat and have the freedom to decide.” This is in reference to the Trudeau-era plan to ban the sale of gas-powered cars by 2035, which the Carney government has said they have no intention to change, even though automakers are indicating that the targets cannot be met. He also intends to oppose the Industrial Carbon tax, Bill C-69 the Impact Assessment Act, Bill C-48 the Oil tanker ban, the proposed emissions cap which will cap energy production, as well as the single-use plastics ban and Bill C-11, also known as the Online Streaming Act and the proposed “Online Harms Act,” also known as Bill C-63. Poilievre closed with rallying thoughts that had a distinctive Western flavour.

“Fighting for these values is never easy. Change, as we’ve seen, is not easy. Nothing worth doing is easy… Making Alberta was hard. Making Canada, the country we love, was even harder. But we don’t back down, and we don’t run away. When things get hard, we dust ourselves off, we get back in the saddle, and we gallop forward to the fight.”

Cowboy up, Mr. Poilievre.

Maureen McCall is an energy professional who writes on issues affecting the energy industry.

Continue Reading

Trending

X