1 The Canadian Resource Economy Social Studies

2 Abstarct After Russia, Canada is, geographically speaking, the second largest country of the world. Hence, it is not extraordinary that Canada ‘harvests’ many natural resources. In fact the development of the Canadian economy is often associated with Harold Innis’ Staple Growth Development Theory. This theory suggests that Canada’s economic development rests on the export of resources. It started with the catch and export of fish from the east coast, followed by furs, lumber, grains, forest products, minerals and recently, energy. As long as the population was relatively small and resources prices were high, development continued. However, in the last 50 years or so, the value of raw materials have contribute less and less to the final sales value of products. The result has been that 33 million Canadians can no longer live of the harvest and export of resources. Today, most Canadians work in the service sector of the economy, followed by the processing industry and lastly by the resource sector. Despite this the economic image of Canada abroad is still of a country that lives from the extraction and harvesting of its resources.

3 Outline of presentationIntroduction to the country – the geography of Canada – the economic picture of Canada abroad – Frankfurter Allgemeine Zeitung and the Financial Times (US) Canadian historic economic development (Staple Growth Theory of H. Innis) fish fur lumber grain forest products minerals energy The modern economy of Canada the composition of the Canadian GDP composition of the Canadian labour force the most important economic sectors exports and imports what about the future?

4 Canada

5 Basic facts of Canada almost 10 million square kilometres (28x that of Germany) twice as large as Europe and 14 time as large as Texas east-west width is 5,514 km and north-south 4,624 km considerably wider then the Atlantic Ocean!!! average population density is 3 per square kilometres 8% the area consists of lakes and rivers only 7% the land can be used for agriculture has 33.3 million inhabitants, of which 80% live in urbanised areas!! GDP per person in July 1, 2008 was 48,500 $CDN Overall GDP was 1, Billion CDN$, July 1, 2008 In terms of US$ PPP Canada = $38,600, Germany = $34,100 (2007 est.) (source: CIA, The World Factbook)

6 The Corporate Image off Canada Abroad: Frankfurter Allgemeine Zeitung, and Financial Times, USThe FZ (October 30, 2008) and the FT ( October 21, 2008) give daily information on a selection of firms trading on the Toronto stock exchange On the TSX (Toronto Stock Exchange) about 1300 firms are listed!!! The FZ (Germany) gives daily stock price information on only 49 of these firms. Their sector breakdown is as follows: 23 Resources (47%) 8 ITS (technologies) 7 Processing/Manufacturing industry 4 Services / wholesale trade 5 Financial/Banks 2 Transport companies The FT (US) gives daily stock price information on 38 firms. 14 Resources (37%) 6 ITS (technologies) 1 Processing/Manufacturing industry 10 Financial/Banks The resources firms are over-represented!!!

7 Traditional Canadian Northern Image; the polar bear Source:

8 Traditional Northern Canadian Scene: Elsmere Island Source:

9 The old northern transport image; dog sledding http://blog. ratestogo

10 Hudson’s Bay Company Store - Rankin Inlet, and the new form of transport in the North in the Winter, the skidoo Sources:

11 Newfoundland and Labrador Image; Iceberg floating past the shore Source:

12 Famous Atlantic Canada Images; Peggy’s Cove and the hated Seal Hunt and

13 Atlantic Canada: Peggy's Cove in the morning mist Source: http://www

14 The Birch Bark Canoe; the workhorse of the Canadian fur trade Source:

15 Champlain, founder of Quebec ally of the natives Sources: http://www

16 Native Canadians and the fur trade: Source;

17 The Canadian beaver; main staple of the fur trade Source: http://ci

18 Canadian loon; summer inhabitant of Canada’s northern lakes, image on the Canadian dollar Source:

19 Canadian northern lights; image of remoteness Source: www. greenstoneCanadian northern lights; image of remoteness Source:

20 Niagara Falls; tourist destination, Summer and Winter (1911) Source: and

21 Indian Summer in Ontario, Maple Lake, 2008 Source: A. Hecht

22 Maple Lake in the fall in Northern Ontario Source: A. Hecht

23 Our Cabin on Maple lake Source: A. Hecht

24 Relaxing on Maple Lake in the Canadian Shield Source; A. Hecht

25 Indian Summer: relaxing with a beer and having an interesting conversation with the granddaughter Source: A. Hecht

26 Marshmallow feast in the evening by the open fire Source: A. Hecht

27 The present workhorse of Canada’s peripheries; the float plane Source: A. Hecht

28 Fishing in Canada’s North; Gogama, Ontario Source: A. Hecht

29 Wheat Fields in Manitoba and Saskatchewan; Source; http://www. ec. gcWheat Fields in Manitoba and Saskatchewan; Source; and

30 Western Canada changing farm stead image Source: http://www

31 First oil well In Western Canada: Today’s office towers in Calgary Source:

32 Western Canada grizzly: Source; http://www. muchmormagazine

33 Grizzly bears of Knight Inlet British Columbia: Source: http://www

34 Western Canada wholesome image: The Rockies Source: http://upload

35 Historic Canadian city: Quebec City Source: http://www. bonjourquebec

36 The Canadian economic heart; Toronto Source: http://en. wikipedia

37 The economic growth centre in the west; Calgary Source: http://en

38 Harold Innis’ Development Theory Source: constructed by A. Hecht

39 Relative ressource prices through time Source: constructed by A. Hecht

40 The fishing staple fish was the first export from Canada to EuropeCod was first salted and then transported in casks. Came mainly from the 'Grand Banks' of Newfoundland. Later it first was dried on the mainland and exported to Europe Salmon was and is the most important fish from the west coast In 2004, the fish catch was valued at $ 2,212,274,000. Aquaculture added another 30% to this value. Canada’s fish catch presently ranks 17th in the world Canada exported 2 times as much fish as it imports. The fish catch is now highly restricted by the Federal government. Almost all fishing villages have high unemployment rates both on the east and west coast!!

41 Traditional image of the Canadian resource sector: Cod fishing on the Grand Banks off Newfoundland Source: US, New England Textbook, 1867

42 The newest staple: Oil extraction on the Grand Banks Source:

43 The Fur Staple Main products are different furs - especially beaverFrom 1700 to 1850, furs were the most important export of Canada The Native Indians were part of this economy The demand for fur in Europe opened/explored the country The main carrier of furs was the canoe The current value of wild furs in Canada is less than 100 million $/year. World "Environmental" pressure holds the demand for furs low.

44 The trading post; meeting place of the fur seller and the merchant

45 Glorious image of the fur transporting voyageurs Source: Shooting the Rapids, in a master canoe. Painting by Francis Ann Source:

46 The lumber staple economy Source: USA, New England Textbook, 1867

47 The lumber and wood product staplesCanada has 10% of the world forest area 45% the country is wooded only 56% has some commercial value 12% is found in nature reserves only 0.5% the useful acreage is clear-cut per year natural forest fires consume yearly 1.2% of the total forested area Canada is the largest exporter of forest products (20%) main products are paper (26%), soft wood (20%), Pulp (15%)... Total direct addition to the Canadian economy is 3% of GDP per year.

48 The wheat staple – Craik, Saskatchewan

49 The Canadian agricultural staples: Source: Agriculture and Agri-Food Canada, see After the opening of the Prairies in 1885, Canada became a large grain exporter Canadian agricultural acreage is twice as large as all of Germany 98% of the economy units are family business The average size is somewhat over 244 ha Main products are: Grains, cattle, milk, pigs, vegetable and fruit products The economy is geographically concentrated in the west, in southern Ontario and Quebec, and in southern British Columbia Less than 3% of the Canadian workers make a direct living in this industry The contribution to the Canadian GDP in 2007 was only 2.3%

50 Canada’s mineral staples: Source: Natural resources Canada,” Minerals” see, Over 60 different minerals are mined in Canada 80% of the production is exported of large importance are the following; uranium (1 place in the world %) zinc (1 place in the world %) potash (1 place in the world %) nickel (2 places in the world %) asbestos (2 would place in the world %) sulphur (2 places in the world %) Cadmium (2 places in the world %) copper (3 places in the world - 7.2%) gold (4 places in the world - 7.1%) In 5 place are aluminums, cobalt, plaster, lead, molybdenum, Palatinum, salt, silver are and titanium-concentrate recycling may dampen demand of these minerals in the future

51 Canada’s energy staple: Source: Natural Resources Canada, “Energy”, see Main energy sources are oil, natural gas, coal, water power and nuclear power. 65% of the oil comes from traditional oil wells (65%) and 35% from the tar sands. Canada is the 12-largest oil producing country of the world. The tar sand oil reserves are almost as large as reserves of south Arabia (180 trillions against 260 trillions barrels). it is the 3-largest natural gas producer of the world. It is in 9th place in the production of oil ( ,110,000 Bbl/day). It is in 9th place in the production of coal. Alberta has 80% of the oils and natural gas production. Canada exports energy in the west and imports it in the East. Canadian energy consumption per person is almost the highest in the world.

52 Shehtah Drilling Rig: Mackenzie Delta, Northwest Territories.

53 Tar Sands excavation 1933

54 2008 Canadian GDP industrial makeup Source: Statistics Canada; see accessed Oct. 6, 2008 July 2008 % in $ (000,000) All industries 100 Goods-producing industries 369565 30.01 Agriculture, forestry, fishing and hunting 25809 2.10 Mining and oil and gas extraction 56843 4.62 Manufacturing 181482 14.74 Construction industries 74342 6.04 Utilities 31089 2.52 Services-producing industries 869617 70.61

55 Canadian employment by industrial sectors, Source: Statistics Canada, Employment by Industry, see in '000 % All industries 16,866.40 100 Goods-producing sector 3,993.00 23.67 Agriculture 337.20 2.00 Forestry, fishing, mining, oil and gas 339.30 2.01 Utilities 138.00 0.82 Construction 1,133.50 6.72 Manufacturing 2,044.90 12.12 Services-producing sector 12,873.50 76.33

56 1960 to 2000, Canadian comodety export trend

57 Canadian commodity exports, 2007 Source: Statistics Canada; “Exports of goods on a balance-of-payments basis, by product” see  2007 % in Exports 463,051 100 Agricultural and fishing products 34,370 7.4 Wheat 4,637 13.5 Other agricultural and fishing products 29,733 86.5 Energy products 91,647 19.8 Crude petroleum 40,998 44.7 Natural gas 28,378 31.0 Other energy products 22,272 24.3 Forestry products 29,263 6.3 Lumber and sawmill products 12,613 43.1 Wood pulp and other wood products 6,685 22.8 Newsprint and other paper and paperboard products 9,965 34.1 Industrial goods and materials 104,421 22.6 Machinery and equipment 93,428 20.2 Automotive products 77,304 16.7 Other consumer goods 18,737 4.0 Special transactions trade 8,176 1.8 Unallocated adjustments 5,704 1.2

58 Summary Seen from an export perspective, raw products are still very importance to Canada (33,9%). But the resources industry produces few direct jobs and contributes little directly to Canadian GDP. In a sense the Canadian Economy has become developed. Most Canadians live in cities and work in services and goods producing industries. Whether this Canadian reality will be reflected in the outside image of Canada in the near future is questionable. It is hard to change comfortable old images.

59 Danke für Ihre Aufmerksamkeit