‘We are facing more challenges than in recent decades, and I think it’s time we be more thoughtful and focused on the longer term’
Author of the article:
Stephanie Babych
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As calls for economic diversification are renewed in Alberta amid work to recover from the economic toll of the COVID-19 pandemic, a Calgary researcher says traditional diversification may not be the answer to stabilizing the province’s economy.
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When things get tough in Alberta, people often say the province needs to diversify by stepping away from a reliance on oil and gas toward new or better industries, said Robert Mansell, a professor emeritus of economics at the University of Calgary and research fellow at the School of Public Policy.
The shocks of low oil prices and the COVID-19 pandemic have revived the discussion, Mansell said.
However, he argued that effective diversification is more likely to include increasing the range of goods and services produced by existing sectors in the province, promoting growth of markets for exports and creating competitive substitutes for imports.
“We can’t think there’s a quick fix to changing the industrial structure. There are things we can do, in terms of diversifying markets, expanding the range of products and improving the investment climate for new industries,” Mansell said Thursday.
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Mansell and his fellow researchers determined that Alberta’s rate of employment diversification is one of the best in the country, but is worse off when it comes to income diversification and value-added — or GDP — due to the size of the oil and gas industry.
Some of his suggestions for improving the stability of Alberta’s economy include reintroducing a heritage fund to save money, rebalancing federal procurement and repatriating the federal carbon tax.
“We do have a record of building strength in adversity,” said Mansell.
“We are facing more challenges than in recent decades, and I think it’s time we be more thoughtful and focused on the longer term. As opposed to looking for short-term fixes, let’s have a serious conversation about what we need to do over the next decade or more, and how we’re going to do it.”
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The paper concludes that the instability of the province’s oil and gas sector remains the highest risk to Alberta’s long-term prosperity. However, the province has the tools to adapt and innovate in a way “that will be critical in achieving a successful transition for this dominant sector.”
Mansell’s report is one of 24 research papers by the School of Public Policy, which will ultimately be grouped together to create three e-books published by the school. The research for the Alberta Futures Project is anticipated to form a basis for new policy to revitalize the province, with information on alternatives for Alberta’s fiscal, economic and policy future.
The reports touch on various topics — including financial planning and sustainability, Alberta’s energy sector and poverty — from a number of experts and researchers. And the project will also look at the future of Alberta’s health care, as the province transitions out of its pandemic response in the coming months.
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“This is to bring together thoughtful analysis of where we’ve been, where we are and what the future looks like, and what we should be doing to anticipate it,” said Mansell.
“Not everybody agrees and some talk about some of the hard choices that need to be made, like if we’re ultimately going to have a sales tax.”
Two of the reports — written by authors Mansell and Robert Ascah — were released Thursday as pre-publications.
Ascah’s research looks more closely at the province’s debt, the importance of addressing debt and how Alberta’s current fiscal crisis compares to those of the past.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.