14.4 Management Of Regional Development

Question 1

Location

Answer 1

• second largest country in the world
• 10 provinces + 13 territories
• greatest east-west expanse = 5200 km
• greatest north-south expanse = 4600km

Question 2

Population

Answer 2

• small pop of 35.5 million
• huge variations in its population distribution + density
• underpopulated = difficulties increasing GDP

Question 3

Main causes of core-periphery contrasts

Answer 3

• urban-industrial core of the country is in southern regions of Ontario + Quebec = climate conditions for agriculture + other activities the best
• Canada’s two main urban areas are Toronto + Montreal (as well as Ottawa, Quebec, London) = all located relatively close to the Great Lakes + St Lawrence Seaway
• also have access to the Trans-Canada highway + the Transcontinental railway system
• major urban sub core is Vancouver city = main port of the Pacific Ocean —> ranked consistently as one of the highest quality of life urban areas (hosted 2010 Winter Olympics)
• Alberta has the highest above average incomes in Canada = largely due to its natural resource endowments

Question 4

What are the main causes in the regional disparities?

Answer 4

• huge size of the country
• contrasts in physical environment
• uneven access to resources
• major contrasts in population density + distribution
• large variations in provision of transport infrastructure (influences an areas potential for investment)

Question 5

Ontario

Answer 5

• industrial powerhouse of Canada = highest GDP of $519720 million
• however = unstable growth due to the movement of industries to MICs, high fiscal deficit + debt = restricted investment

Question 6

Quebec

Answer 6

• high GDP $266400 million
• suffered similar problems to Ontario
• investment has also been negatively affected by the political debate surrounding Quebec’s independence from Canada

Question 7

The Atlantic provinces

Answer 7

• lowest per person incomes in the country + weaker growth in GDP
• however - recent development of oil reserves has boosted per person income

Question 8

The territories

Answer 8

• very sparsely populated
• combined GDP is about 0.5 of national total
• per person incomes high - particularly in north west territories + Yokon (economies resource based)

Question 9

British Columbia

Answer 9

• 4th largest economy = largely resource based
• Vancouver (3rd largest urban area) is a major pacific port + the terminus of the transcontinental railway
• the HQ of many western based natural resource companies
• 5% of province is arable land = farm productivity high
• climate + landscape encourages development

Question 10

Prairie Provinces

Answer 10

• Canada’s rich agricultural heartland = 3/4 of Canada’s farmland is in these provinces
• hot dry summers favour wheat - other farming activities include dairying, cattle ranching, feed grains etc.
• Alberta benefits from considerable energy resources = large increase in investment, employment + income growth
• 1981-2013 Alberta’s pop increased by 76% compared to Canadian average of 42%
• Alberta’s GDP twice that of combined GDP of Saskatchewan + Manitoba

Question 11

What policies did the govt use in attempt to reduce regional disparities?

Answer 11

• phase 1 = equalisation policy
• phase 2 = introduction of regional tax incentives
• phase 3 = department of regional economic expansion
• phase 4 = department of regional industrial expansion
• phase 5 = decentralisation

Question 12

What was the equalisation policy (phase 1)?

Answer 12

• first direct effort to solve regional disparities was in 1957
• based on the concept that the federal system should enable every province to provide services of average Canadian standards to its population without having to impose heavier than average tax burdens

Question 13

Strengths + weaknesses of the equalisation policy

Answer 13

• since 1957, the annual equalisation transfers to low income provinces has risen by $100 million to $12 billion in 2013-14
• BUT not all provinces qualified for equalisation payments - Alberta, Saskatchewan, Newfoundland and Labrador + British Columbia

Question 14

Introduction of regional tax incentives (phase 2)

Answer 14

• began in 1960 to help areas of high unemployment + slow economic growth
• scheme allowed firms to obtain the double the normal rate of capital cost allowances (any profit used to purchase machinery would not be taxed)
• an area specific scheme was established in 1962 to improve the economic structure of the Atlantic provinces (poorest part of Canada)

Question 15

Strengths + weaknesses of regional tax incentives

Answer 15

• enabled firms to extend the scope of their manufacturing (productivity + output) + increase the number of jobs available —> goal was to trigger cumulative causation in the Atlantic provinces
• BUT only applicable to the larger firms who can afford the capital in the first place
• focused in only certain areas = not necessarily ‘equalising’ = variations in local uptake due to it being under the control of the fed govt

Question 16

Department of regional economic expansion (phase 3)

Answer 16

• established in 1969 to provide the national coordination frequently lacking in previous schemes = encouraged more federal + provincial cooperation
• the emphasis was put on places that had the potential for significant economic growth
• 1972 = introduction of General Development Agreements (GDAs) that allowed more fed + provincial cooperation

Question 17

Strengths + weaknesses of department of regional economic expansion

Answer 17

• the GDAs were 10 year programs that covered a wide range of development projects