Canada’s star shining less brightly
WORTH REPEATING
This is an edited excerpt from the Conference Board of Canada’s report “ Performance and Potential, 2005- 06 — The World and Canada: Trends Reshaping Our Future.” The full report is available at www. conferenceboard. ca: Canada remains one of the best countries in the world in which to live. Our economic, social and environmental performance stacks up well against the world’s best. But although our overall performance is decent, our star does not shine to the degree that it once did. There are three reasons for this.
First, other countries are not standing still. Canada has lost rank on a number of indicators, not because our performance has slipped, but because other countries have improved.
Second, Canada’s performance in certain categories — notably health and society — could be better.
Third, our economic performance is slipping, despite the relatively strong economy of recent years. Some structural issues are still very much in evidence, particularly our lacklustre productivity growth. We have repeatedly pointed out that sustaining increases in productivity is the key to sustaining a high standard of living. Higher productivity levels will increase the resources available for future investment, for the ongoing provision of public services, and for private consumption. The world is changing more rapidly than ever before, and Canada must position itself to respond and act. Looking to the future, projected trends will offer both opportunities and challenges.
Rapid structural changes in the global economy will create new competitors, but they will also create new markets with the potential to enhance Canadian incomes and productivity through increased trade and investment links.
Asia’s rise will provide a window of opportunity during which high resource prices could ensure ongoing Canadian prosperity — if we act as good stewards of our resource wealth. The aging of the Canadian workforce will create serious pressures in Canadian labour markets, but if we embrace and adapt to it, we have the potential to make many of our older citizens more productive — enhancing both their incomes and lifestyles.
Finally, the world around us will
become a riskier place. Canada will
manage to avoid the full impact of
traditional security threats, such as
war, and is well positioned to thwart
terrorism. Still, we will not be immune to the newer risks spawned by increased global interconnectedness — such as the rapid spread of infectious disease or international crime. However, we cannot escape these risks through isolation. Indeed, their existence provides a compelling case for Canada to embrace the world around us and to work in co- operation with other countries to identify and manage these threats to our individual, national and collective security.