Transcript Canada`sIndustriesHistoric

The Canadian Resource Economy
Social Studies
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.
Outline of presentation
Introduction 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?
Canada
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 $CDN
Overall GDP was 1,616.228 Billion CDN$, July 1, 2008
In terms of US$ PPP Canada = $38,600, Germany = $34,100 (2007 est.)
(source: CIA, The World Factbook)
The FZ
(October 30, 2008) and
the FT ( October
21, 2008) give daily
information on a selection of firms trading on the Toronto stock exchange
The
Corporate
Image
off Canada
Abroad:
On the TSX (Toronto Stock Exchange) about 1300 firms are listed!!!
Frankfurter
Allgemeine Zeitung, and Financial Times, US
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.
Their sector breakdown is as follows:
◦
14 Resources (37%)
◦
6 ITS (technologies)
◦
1 Processing/Manufacturing industry
◦
4 Services / wholesale trade
◦
10 Financial/Banks
◦
2 Transport companies
◦
The resources firms are over-represented!!!
Traditional Canadian Northern Image; the polar bear
Source: http://scaa.usask.ca/gallery/northern/content?pg=ex12-3
Traditional Northern Canadian Scene: Elsmere Island
Source: http://biology.queensu.ca/~pearl/PNAS2005.htm
The old northern transport image; dog sledding
http://blog.ratestogo.com/wp-content/uploads/2008/04/dog-sledding-sunset.jpg
Hudson’s Bay Company Store - Rankin Inlet, and the new form of transport
in the North in the Winter, the skidoo
Sources: http://scaa.usask.ca/gallery/northern/content?pg=ex13-3
Newfoundland and Labrador Image;
Iceberg floating past the shore
Source: http://away.com/travel_photo_gallery/atlantic_canada/index.html
Famous Atlantic Canada Images;
Peggy’s Cove and the hated Seal Hunt
http://away.com/images/gallery/atlantic_canada/gallery01.jpg
and http://www.cbc.ca/news/background/sealhunt/gfx/titlephoto.jpg
Atlantic Canada: Peggy's Cove in the morning mist
Source: http://www.atlanticcanada.worldweb.com/Photos/TownscapesVillages/10-3697.html
The Birch Bark Canoe;
the workhorse of the Canadian fur trade
Source: http://www.birchbarkcanoe.net/images/furtradecanoemain150sm.jpg
Champlain, founder of Quebec ally of the natives
Sources: http://www.sonofthesouth.net/revolutionary-war/explorers/samuel-de-champlain.jpg
Native Canadians and the fur trade:
Source; http://images.encarta.msn.com/xrefmedia/sharemed/targets/images/pho/t058/T058882A.jpg
The Canadian beaver; main staple of the fur trade
Source: http://ci.marysville.wa.us/PublicWorks/swm/docs/beaver_files/Beaver%20Pic.jpg
Canadian loon; summer inhabitant of Canada’s
northern lakes, image on the Canadian dollar
Source:
http://animals.nationalgeographic.com/staticfiles/NGS/Shared/StaticFiles/animals/images/primary/common-loon.jpg
Canadian northern lights; image of remoteness
Source: www.greenstone.ca
Niagara Falls; tourist destination, Summer and Winter (1911)
Source: http://i12.photobucket.com/albums/a215/IleneEulich/NiagaraFalls3.jpg
and
http://www.dvc.hu/best/niagara_falls.jpg
Indian Summer in Ontario, Maple Lake, 2008
Source: A. Hecht
Maple Lake in the fall in Northern Ontario
Source: A. Hecht
Our Cabin on Maple lake
Source: A. Hecht
Relaxing on Maple Lake in the Canadian Shield
Source; A. Hecht
Indian Summer: relaxing with a beer and having an interesting
conversation with the granddaughter
Source: A. Hecht
Marshmallow feast in the evening by the open fire
Source: A. Hecht
The present workhorse of Canada’s peripheries; the float plane
Source: A. Hecht
Fishing in Canada’s North; Gogama, Ontario
Source: A. Hecht
Wheat Fields in Manitoba and Saskatchewan;
Source; http://www.ec.gc.ca/EnviroZine/images/Issue49/wheatfield_l.jpg and http://wwwdelivery.superstock.com/WI/223/1647/PreviewComp/SuperStock_1647R-70644.jpg
Western Canada changing farm stead image
Source: http://www.iwantcanadaforgood.com/pic/homeimage-saskatchewan.jpg
First oil well In Western Canada:
Today’s office towers in Calgary
Source: http://picasaweb.google.com/joella.bryant/WatertonLakesNationalParkAlbertaCanada08#5220271439020817938
Western Canada grizzly:
Source; http://www.muchmormagazine.com/wordpress/wp-content/gallery/readers-pictures/grizzly-bear.jpg
Grizzly bears of Knight Inlet British Columbia:
Source: http://www.freshtracks.ca/images/lrg/grizzly-man-wallpaper-3-1600.jpg
Western Canada wholesome image: The Rockies
Source: http://upload.wikimedia.org/wikipedia/commons/d/d5/Moraine_lake.jpg
Historic Canadian city: Quebec City
Source: http://www.bonjourquebec.com/fileadmin/Image/decouvrez/experiences/villes/quebec/tvhd_130_g.jpg
The Canadian economic heart; Toronto
Source: http://en.wikipedia.org/wiki/Toronto
The economic growth centre in the west; Calgary
Source: http://en.wikipedia.org/wiki/Image:CalNight.jpg
Harold Innis’ Development Theory
Source: constructed by A. Hecht
Relative ressource prices through time
Source: constructed by A. Hecht
The fishing staple
fish was the first export from Canada to Europe
Cod 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!!
Traditional image of the Canadian resource sector: Cod fishing
on the Grand Banks off Newfoundland
Source: US, New England Textbook, 1867
The newest staple: Oil extraction on the Grand Banks
Source: http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1SEC821443
The Fur Staple
Main products are different furs - especially beaver
From 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.
The trading post; meeting place of the fur seller and the
merchant
Glorious image of the fur transporting voyageurs
Source:
Shooting the Rapids, in a master canoe. Painting by Francis Ann
Source: http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0008396
The lumber staple economy
Source: USA, New England Textbook, 1867
The lumber and wood product staples
Canada 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.
The wheat staple – Craik, Saskatchewan
The Canadian agricultural staples:
Source: Agriculture and Agri-Food Canada, see
http://www.agr.gc.ca/index_e.php
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%
Canada’s mineral staples:
Source: Natural resources Canada,” Minerals” see,
http://www.nrcan-rncan.gc.ca/com/subsuj/minmin-eng.php
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 - 31.1%)
◦ zinc (1 place in the world - 16.1%)
◦ potash (1 place in the world - 37.4%)
◦ nickel (2 places in the world - 17.9%)
◦ asbestos (2 would place in the world - 22.6%)
◦ sulphur (2 places in the world - 21.0%)
◦ Cadmium (2 places in the world - 12.2%)
◦ 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
Canada’s energy staple:
Source: Natural Resources Canada, “Energy”, see
http://www.nrcan-rncan.gc.ca/com/eneene/index-eng.php
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).
Http://www.energybulletin.net/7331.html
it is the 3-largest natural gas producer of the world.
It is in 9th place in the production of oil (2005 - 3,110,000 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.
Shehtah Drilling Rig: Mackenzie Delta, Northwest Territories.
Tar Sands excavation 1933
2008 Canadian GDP industrial makeup
Source: Statistics Canada; see
http://www40.statcan.ca/l01/cst01/gdps04a.htm
accessed Oct. 6, 2008
July 2008
in
All industries
%
$ (000,000)
1238091
100
369565
30.01
Agriculture, forestry, fishing and hunting
25809
2.10
Mining and oil and gas extraction
56843
4.62
181482
14.74
Construction industries
74342
6.04
Utilities
31089
2.52
869617
70.61
Goods-producing industries
Manufacturing
Services-producing industries
Canadian employment by industrial sectors, 2007
Source: Statistics Canada, Employment by Industry, see
http://www40.statcan.ca/l01/cst01/econ40.htm?sdi=employment%20industries
in '000
%
All industries
16,866.40
100
3,993.00
23.67
337.20
2.00
339.30
2.01
138.00
0.82
1,133.50
6.72
2,044.90
12.12
12,873.50
76.33
Goods-producing sector
Agriculture
Forestry, fishing, mining, oil and gas
Utilities
Construction
Manufacturing
Services-producing sector
1960 to 2000, Canadian comodety export trend
Canadian commodity exports, 2007
Source: Statistics Canada; “Exports of goods on a balance-of-payments basis, by product” see http://www40.statcan.ca/l01/cst01/gblec04.htm
2007
%
in 000000
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
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.
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