Introduction
Canada’s economic model is one that is envied by other countries all over the globe because of its stability and ability to weather the financial crisis. The economy is characterized by well-regulated structures and minimal leveraging especially in comparison to financial institutions in other first-world countries such as Europe and the United States of America. This paper will look at Canada’s economic model in the 21st Century.
The country is located in the Northern part of North America and covers about 41% of the globe. Canada covers a region between the Atlantic Ocean on the Eastern side, the Arctic Ocean on the North, and the Pacific Ocean. The geographical location of the rich nation has made it commonly referred to as the region that is “Sea to Sea”[1]. Canada has a population of about 35 million individuals who are sparsely populated throughout the vast nation. The beautiful realm has quite a varied geography with mountains, lakes, and rivers. Canada is a multilingual country with French and English languages. It is part of the Commonwealth nations ruled by a Federal government. Canada derives its income from natural resources and a good network of well-established trade networks. It is also highly developed and is one of the First World nations in the world. It is stated as being one of the richest nations in the world with the country ranking position 8 among the richest countries in the world today. Canada has ranked highly in terms of the quality of life lived by its population, the transparency showed by the government, and the freedom accorded by individuals to conduct economic activities 1[i]
Canada has many natural resources which contribute to a large chunk of its GDP. Canada is second in position in exporting timber and timber products to other parts of the world such as Europe after the United States of America. The key industries in Canada include; minerals that have been processed and those that have not been processed. Canada also has deposits of oil and natural gas. The country manufactures and imports transport products. The country ranks second in position after the United States of America and Japan. [2] Canada is highly productive in the agricultural sector with large acres of land that produce wheat, tobacco, greens, and corn. The large production of agricultural food products means that the Canadian government does not have to spend large sums of money exporting food for its population. Money that could have been used exporting food products is instead used on developing infrastructure and other important sectors such as healthcare.
Canada Economic History
In the 19th Century, the Canadian economy was predominantly dependent on farming for its income. The largest contributor was timber farming being exported to neighboring countries. With the discovery of minerals, the country expanded its economy and earnings through mining in areas such as oil, natural gas, and gold. Currently, some of the largest tax contributors to the Canadian government include Bell Canada Enterprise, Scotiabank, George Weston, Royal Bank of Canada, Magna International, and Agnico Eagle Mines Limited Company among others. The Canadian government plays a large role in ensuring that the country’s economy is stable and continues to perform well especially when benchmarked with other countries economies. The Canadian government has a major role to play in industries such as healthcare, insurance regulation, and education. The regulation that the government enforces ensures that there is fair play and consumers are not taken advantage of through their hard-earned money and income. Ottawa is the capital city of Canada with a well-developed infrastructure and thriving businesses. Vancouver, Quebec, Toronto, Edmonton, and Calgary are some of the other major cities in Canada. [3]
Quebec City is one of the largest cities in the land and has the highest population of French-speaking Canadians. Calgary forms a large tourism attraction mainly because of its “winter” weather which promotes winter-related sporting activities such as skiing. Calgary also majors in oil and natural gas processing which has led to the development of industries that are employers of a large number of Canadians.
The city of Vancouver is one of the largest film production cities in the world compared with other large cities in the world such as Hollywood in the United States of America. The city of Vancouver also serves as a major tourist destination with its contribution to forestry in the country also being a major contribution to the Canadian economy.
Edmonton city developed in the early 20th Century due to the setting up of General Electric Company. The biochemical industry is also well developed in Edmonton City because of the presence of the petrochemical industry.
The economy of Canada after World War I and World War II
World war II saved as an economic boost for the Canadian economy whereby mining and manufacturing sectors in the country grew by large proportions. After the First World War, agriculture had been the major contributor to the growth of the economy whereby over 65% of the population in the country lived in rural areas. In the 1930 and 1940 decades, there was a high rate of unemployment of about 30%. The First World War contributed to the Great Depression in the country whereby the level of unemployment went up, the Gross Domestic product reduced and there was a decrease in the number of births in the country. However, the Second World War led to a lot of mechanization in the country with more efficient agricultural methods being used.[4] As a result of the newer methods of farming and better methods of production in industries, there were more jobs were created. The jobs were more specialized leading to higher and better standards of living. The level of exports from the country rose upwards leading to a greater GDP for the country. [5]
The Benefits and Disadvantages of Immigration to the Canadian Economy
The Canadian economy is very well developed and is continuously developing. Ottawa is rated as one of the best and cleanest cities to live in the world today. There are many big technology companies in the city that would serve as employers such as IBM, Adobe Systems, Hewlett Packard, and General Dynamics among others. The Canadian federal government is also based in Ottawa which creates a pool of good jobs available to qualified legal individuals that live in the city.
Some Canadians seem to feel that a high number of immigrants to their country reduce the number of jobs that are available to them. However, a greater number of highly qualified individuals that migrate to Canada work in low-skilled jobs. Such immigrants are poorly paid and their skills and talents underutilized. Such cases might arise if individuals do not do thorough consultations before moving to the land to seek employment. The government should step in and ensure that individuals that migrate to the realm are those who can find employment.
The consequences of emigration to the United States of America on the Canadian economy.
Most individuals seem to feel that the grass is always greener across the lawn. This is one of the reasons why Canadians will move to the United States in search of greener pastures. In order to get a job in another country where one is not a national, an individual should have high academic and experience qualifications. A countries national is given first priority when a job is advertised.
Qualified individuals that move from Canada to America reduce the pool of talented employees that can contribute to improving the economy.
Immigration of qualified personnel from Canada to America leaves the country with a deficit of human personnel. Such deficiencies are especially witnessed in fields such as healthcare, biotechnology research, and engineers. [6]
The economic partnerships that the Canadian government has made with the European Union, South American nations, and African nations.
Canada has similar languages and cultures to various countries that are members of the European Union such as France, Belgium, Luxembourg, and the Netherlands. The two nations have been in discussions over trade agreements that could be of mutual benefit. In 2009, members of finance departments from the Canadian government and the European Union governments agreed to sign a deal on the Comprehensive Trade and Economic Agreement. The agreement would lead to more trading between the two governments that would benefit the citizens of the nations.
The social changes that occur as a result of economic progress.
When there is economic progress in a country, individuals have more money to spend. As a result, there is more money in circulation; which in most cases has a positive effect on interest lending rates.[7] A higher number of businesses and individuals can be able to access funds from banks at lower interest rates and develop their lives such as through furthering their education.
When nationals of a country have money, they can also be able to access better social amenities and facilities such as healthcare. Individuals can also go into business and become employers through entrepreneurship. Such potential entrepreneurs can access funds to start businesses through government youth funds and community-initiated projects.
The public debt of the Canadian government and ways of bringing it under control.
The Canadian government has placed a lot of emphasis on sustainable development, as a way of developing its economy. The government’s public debt is one of the highest in the world, with economic analysts stating it as being higher than that of the European Union and the United States. As of 2013, the Canadian national debt was 1.2 trillion Canadian dollars. The debt is owed by both the provincial and federal governments in Canada. The Canadian government has funded research organizations that have their main theme as sustainable development geared towards economic development. Science offers some of the best and suitable possibilities for developing the Canadian economy while providing long-term solutions to the high national debt.
The taxation system of the Canadian government and how it affects local and international companies.
Canada does not offer any tax breaks for the members of its population. The country taxes both the local and foreign income of resident individuals, foreigners that reside in the country. The taxation system that is used in the state has no major impact on the business that is conducted in the country.[8] International companies that might want to set up in Canada can negotiate for taxation based on the demand for their goods or services in the country. Companies that offers highly demanded goods or products in the country can get a tax break especially if there is no Canadian company that offers similar commodities or services. Provincial legislatures in the country have the mandate to decide on the taxes that are used in the province (Pomfret, 2006). This is because different provinces have different resources and decide on the area that the income earned is to be used in.
The future plan of the Canadian government to promote the economy.
Globalization has resulted in higher competition among many markets all over the world. The rich state has been on the front line to ensure that it remains competitive in the world market especially when benchmarked against other markets; both current and emerging. The Canadian government has invested in educating its citizens up to the university level so that they can have the necessary skills needed to improve and grow the economy. A good education population is one of the key pillars to ensuring that a country develops and gets permanent solutions to the problems that it encounters.
Effects of improved information technology and communications on the Canadian economy.
Improved technology has resulted in better connectivity among individuals and businesses. Individuals can save time and money as virtual meetings among friends, relatives, and business associates can now be conducted online. The Canadian economy has improved due to the growth of the telecommunication industry. With current trends set on higher communication across social platforms such as Twitter, Facebook, and linked in, there is a higher number of individuals that subscribe to such services. The sale of telecommunication gadgets such as phones, tablets, and laptops has increased and led to the growth of businesses. Businesses can reach out to a higher number of clients through social media platforms. [9]
The effect of the financial crisis of 2008 on the Canadian economy.
Just like other countries in the world, the Canadian economy was no exception o suffering negative figures during the 2008 financial crisis.
The Canadian economy has rebounded back with high performance after the 2008 financial crisis that was experienced all over the world. Economic analysts were surprised after the growth of the Canadian economy by 0.6% in July of 2013because a forecast of only 0.3 – 0.5 % had been made (Raphael, 2010).
The demographic challenges that face the Canadian economy.
Just like the American economy, Canada is faced with the challenge of a large population of baby boomers who form a large part of the workforce. On retiring of a large proportion of the baby boomers will lead to a deficit of employees especially in industries such as mining and healthcare. The government needs to conduct a thorough and careful analysis of the baby boomers in the different industries. The government should then use this information to advertise and attract as many individuals of the younger generation to train in courses in such industries. The number of individuals that are aged sixty-five years and above is expected to increase twice the fold in the next ten to twenty years.[10] There is worry on whether the baby boomers generation is ready for retirement. Therefore, public policy analysts have made calls for the government to make a change in the retirement scheme policies that are currently in use.
The government will have to spend more money on areas such as healthcare. An aging population has a high likelihood of suffering from chronic diseases such as diabetes, benign prostate hyperplasia, and cancer; which are expensive to treat.
The rate of unemployment in the Canadian economy and what measures the government have put in place to lower it, and Job Guarantee in this economy
The unemployment rate in the multilingual realm remains at 7.5% from 7.7% in January of the year 2013. The Canadian government set out to launch an ambitious plan in the year 2012 “Economic Action Plan 2012” to promote and sustain economic growth. The government recognizes the stiff competition that it faces from other emerging markets and understands the need to remain competitive. According to the plan’s report, the Canadian government had already been able to create over 600,000 jobs post the 2008 global economic recession.
The government set out to build more schools in Aborigine highly populated areas to increase the level of education and job opportunities available to this group in the population.
The Canadian government launched an economic stimulus package in 2009 which led to the injection of funds into the economy. The money was targeted towards increasing the number of individuals that borrow funds from financial institutions and hence increase funding among consumers. Spending leads to higher circulation of funds in the economy which in turn leads to a higher growth rate of the economy.
There is no country or industry that offers a guarantee to getting and keeping a good job. The forces of demand and supply dictate the availability of jobs. However, the government can conduct research and offer information as to industries that are likely to have high chances of employing at certain time periods. Such information can be derived through analyzing the ages of individuals in the different industries and conclusions determined based on the recommended retirement ages for the jobs. The employment commission in Canada ensures the development of skills by the human resources in the country. [11]
The function of the commission in the country’s economic growth is to assure that the human person in the multilingual country remains competitive especially when benchmarked against individuals from other countries.
The social sector in Canada and transformation of the Canadian Social Economy.
The developed land in the Northern part of the globe has a highly well-developed Social Economy. The development of the country’s social economy can be attributed to the growth of the country in terms of a well-performing economy, well-developed fiscal policies, and hardworking human personnel. The social economy in the country is composed of NGOs that provide high-quality research on policy in areas like health, education, and even finance. The organizations create employment and therefore help t improve the welfare o the member of the community and environment. The social economy in the wealthy land plays a large role in taking care of areas that have been neglected in the economy such as taking care of orphans, rehabilitated criminals, and critically ill patients in hospices.
References
Alexander, J., Emes, J. & Kreptul, A. 2008. Canadian Government Debt (Toronto: University of Toronto, 2009), 187.
Pomfret, R. The Economic Development of Canada. (New York: Springer, 2006), 27.
Quarter, Jack., Armstrong, A., & Mook, L. Understanding the Social Economy: A Canadian Perspective. (Toronto: University of Toronto, 2009), 308
Raphael Dennis. Work and labor in Canada: Critical Issues. Canada: Canadian Scholar’s Press. 2010, 405.
[1] Alexander, J., Emes, J. & Kreptul, A. 2008. Canadian Government Debt (Toronto: University of Toronto, 2009), 187.
[2] Raphael Dennis. Work and labor in Canada: Critical Issues. Canada: Canadian Scholar’s Press. 2010, 405.
[3] Quarter, Jack., Armstrong, A., & Mook, L. Understanding the Social Economy: A Canadian Perspective. (Toronto: University of Toronto, 2009), 308
[4] Quarter, et al. 422
[5] Raphael Dennis. Work and labor in Canada: Critical Issues. Canada: Canadian Scholar’s Press. 2010, 405.
[6] Raphael 216
[7] Pomfret, R. The Economic Development of Canada. (New York: Springer, 2006), 27.
[8] Pomfret, 49
[9] Raphael 119 [10] Alexander et al 134 [11] Alexander et al 1
[i][i] [i] Alexander, J., Emes, J. & Kreptul, A. 2008. Canadian Government Debt (Toronto: University of Toronto, 2009), 187.
I Raphael Dennis. Work and labour in Canada: Critical Issues. Canada: Canadian Scholar’s Press. 2010, 405.
ii Raphael 185
iv Alexander et al 87
v Raphael 405
vi Raphael 106
vii Pomfret 27
viii Pomfret 109
ix Raphael 119
x Alexander 109
xi Alexander 1