Academic journal article British Journal of Canadian Studies

Boom and Bust Again: Policy Challenges for a Commodity- Based Economy

Academic journal article British Journal of Canadian Studies

Boom and Bust Again: Policy Challenges for a Commodity- Based Economy

Article excerpt

Politics and social sciences David L. Ryan (ed.), Boom and Bust Again: Policy Challenges for a CommodityBased Economy (Edmonton: University of Alberta Press, 2013), 347 pp. $39.95. ISBN 978-0-88864-628-6.

This collection of essays examines government attempts to manage fluctuations in income from and investment into the natural resource sector of the Canadian economy. Specifically, it outlines in a clear and accessible way the difficulties administrations have had, firstly saving excess revenues accumulated during a boom and secondly spending those revenues productively. Campaigners in Canada and the UK argue that a diverse economy (read subsidy for companies engaged in manufacturing and curbs on oil production/financial services respectively) is desirable. These essays demonstrate that instead, successful countries focus on areas in which they have a competitive advantage, i.e. in which their exports are in greatest demand.

Even at the height of the recently ended boom, the Canadian oil and gas sector remained relatively small, amounting to just 3 per cent of GDP. The entire natural resource sector only employs 300,000 workers, compared to 1.75 million in manufacturing. Nevertheless, the price of oil and volume of oil exports do influence the value of the Canadian dollar. However, it is incorrect to think that a high oil price and increased oil sands production has caused a decline in manufacturing. The manufacturing sector, in all developed countries is in long-term structural decline and while manufacturing may from time to time experience a resurgence due to currency movements, this will likely be temporar y. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.