influence america

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influence america

  1. 1. Back to basics: simple ideas to reshape the future of BC’s communities Michael A. Goldberg Fullerton Professor of Urban Policy – Sauder School and Associate Vice President International The University of British Columbia Annual General Meeting The British Columbia Chamber of Commerce Prestige Inn, Salmon Arm, BC 8:00-9:00 am, Saturday, 29 th May 2004
  2. 2. Toward Better News <ul><li>Things have been rough in “ Heartland BC” </li></ul><ul><li>We are inundated with bad news to prove it </li></ul><ul><li>Instead, I want to look at the upside today </li></ul><ul><li>To do so requires a reality check first </li></ul><ul><li>So, this is where we start </li></ul>
  3. 3. Canadian and BC Settings <ul><li>Economic restructuring </li></ul><ul><ul><li>Goods  services </li></ul></ul><ul><ul><li>Natural  human resources </li></ul></ul><ul><ul><li>Goods  information, knowledge, thinking, ideas </li></ul></ul><ul><li>Demographic restructuring: aging, immigration, urban not rural growth </li></ul><ul><li>Inter-provincial migration positive now </li></ul>
  4. 4. Canadian and BC Settings (continued) <ul><li>Social restructuring: lost high pay low skill jobs; growing income and skill inequality </li></ul><ul><li>Declining populations in resource regions </li></ul><ul><li>Declining incomes in resources regions </li></ul><ul><li>Global integration, deregulation/reregulation </li></ul>
  5. 5. The Challenges Facing BC’s Two Economies <ul><li>Southwestern BC Challenges </li></ul><ul><ul><li>Congestion </li></ul></ul><ul><ul><li>Governance </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Restructuring </li></ul></ul><ul><li>“ Heartland” BC Challenges </li></ul><ul><ul><li>Declining resource rents, incomes & population </li></ul></ul><ul><ul><li>Infrastructure and poor access to markets/people </li></ul></ul><ul><ul><li>Increasing global competition in core markets </li></ul></ul><ul><ul><li>Aboriginal land claim uncertainties </li></ul></ul><ul><ul><li>Poor access to venture and other capital markets </li></ul></ul><ul><ul><li>Softwood, pine beetles, fires, …, </li></ul></ul>
  6. 6. Some Difficulties with Past and Current Views of BC Economy <ul><li>If resources are the BC economy, how can Vancouver, Victoria, Nanaimo & Kelowna prosper given: </li></ul><ul><ul><li>Softwood and pine beetle disasters </li></ul></ul><ul><ul><li>Previous low lumber and pulp prices </li></ul></ul><ul><ul><li>Forest fires and floods </li></ul></ul><ul><ul><li>Unsettled land claims </li></ul></ul><ul><ul><li>Mining malaise </li></ul></ul><ul><ul><li>Collapsed fisheries </li></ul></ul><ul><ul><li>Growing environmental controls & demands </li></ul></ul>
  7. 7. Heartland & BC Weaknesses (Often Self imposed) <ul><li>Outmoded economic models and metaphors </li></ul><ul><li>Little strategic thinking or visions for future </li></ul><ul><li>Rent-seeking, not rent-creating, economic culture and tradition </li></ul><ul><li>Complacency : waiting for good ol’ times return </li></ul><ul><li>Victim thinking; no responsibility for local future economic future </li></ul>
  8. 8. So, Let’s Look for Different Sources of Prosperity <ul><li>Customer not production driven </li></ul><ul><li>Improve extinction rates </li></ul><ul><li>Innovation </li></ul><ul><ul><li>New ways or processes to do old things </li></ul></ul><ul><ul><li>New technology to do old things </li></ul></ul><ul><ul><li>New things to do for old customers </li></ul></ul><ul><ul><li>New things to do for new customers </li></ul></ul><ul><ul><li>Not just technology, but new ideas or ways of seeing our world, customers, products, services </li></ul></ul>
  9. 9. A Way Forward: Thinking and Acting Strategically <ul><li>Strategic thinking and action is 4 things </li></ul><ul><ul><li>Seeing the world as it really is, which is not a pretty picture right now in much of BC </li></ul></ul><ul><ul><li>Responding to changed reality by developing new choices and metaphors for the future </li></ul></ul><ul><ul><li>Making choices among new alternatives </li></ul></ul><ul><ul><li>Seizing the chosen opportunities </li></ul></ul><ul><li>Today let’s discuss new effective choices </li></ul>
  10. 10. Thinking – Acting Regionally and Cooperatively: Governance Issues <ul><li>Need regional gov’ts as regional fiduciaries </li></ul><ul><ul><li>NIMBY – NIMTE are blocking regional needs </li></ul></ul><ul><ul><li>Presently no one speaks for regions </li></ul></ul><ul><ul><li>GVRD, GVTA, RDN, CRD, CORD…not regional </li></ul></ul><ul><ul><ul><li>Enshrine NIMBY – NIMTE in their structures </li></ul></ul></ul><ul><ul><ul><li>Fail regional needs: transit, economy, narrow bounds </li></ul></ul></ul><ul><ul><li>Sydney is extreme, but possible cure </li></ul></ul><ul><ul><li>Canada-US Joint Commission another </li></ul></ul><ul><ul><li>Provincial intervention is key </li></ul></ul><ul><ul><ul><li>Appoint both Boards with accountability to PLA </li></ul></ul></ul><ul><ul><ul><li>Elect both Boards at large in region </li></ul></ul></ul>
  11. 11. Elements of New Thinking <ul><li>Build on traditional economic strengths to embrace / facilitate the emerging economy </li></ul><ul><li>Need new deeply held metaphors and themes </li></ul><ul><li>Must build BC economy on industries & firms: </li></ul><ul><ul><li>With responsive and innovative cultures </li></ul></ul><ul><ul><li>Eager to compete & win in global economy </li></ul></ul><ul><li>Move from AM to FM to better hear emerging and actual economy signals </li></ul><ul><li>Need new measures and goals for new futures </li></ul>
  12. 12. Core Strategies to Move Ahead <ul><li>Generic strategies </li></ul><ul><ul><li>Cost leadership </li></ul></ul><ul><ul><li>Differentiation or Niche </li></ul></ul><ul><li>Commodity (cost) strategy when price is given </li></ul><ul><li>Differentiation - niche strategy to differentiate product-service and add value to customer </li></ul><ul><ul><li>Branding/quality of assurance </li></ul></ul><ul><ul><li>BC Hothouse </li></ul></ul><ul><ul><li>VQA </li></ul></ul><ul><ul><li>BC Tree Fruit – Sun Rype </li></ul></ul>
  13. 13. Opportunity & Possibility in BC <ul><li>Examples Galore </li></ul><ul><li>Kamloops: among biggest bandwidth; major IT and software centre potential </li></ul><ul><li>Prince George: Aboriginal health leader; transport-logistics hub; renewable resource CoE; education-research hub; oil refiner ($73M) </li></ul><ul><li>Prince Rupert: major trans-Pacific port; oil & gas; transport-logistics centre; forest centre </li></ul><ul><li>Nelson: tourism, service, education centre </li></ul>
  14. 14. Opportunity & Possibility in BC (continued) <ul><li>More Examples </li></ul><ul><li>Nanaimo: tourist, consulting, tech, retirement and second tier convention and meeting centre </li></ul><ul><li>Gold River & Tumbler Ridge: follow Elliot Lake </li></ul><ul><li>Hundred Mile House: Viewscape3D Graphics </li></ul><ul><li>Kimberley: 4 seasons tourism; retirees </li></ul><ul><li>Valemont: renewing & investing in tourism </li></ul><ul><li>Whistler: from a garbage dump to #1 resort </li></ul><ul><li>Chemainus: lumber->galleries, culture... </li></ul><ul><li>Cranbrook: Rockies/Kootenays tourist gateway </li></ul>
  15. 15. Opportunity & Possibility in BC (continued) <ul><li>And Even More Examples in Kelowna -- the Okanagan </li></ul><ul><ul><li>Summerland Agri-Foods Station & spin-offs </li></ul></ul><ul><ul><li>Penticton Observatory and IT spin-offs </li></ul></ul><ul><ul><li>Kalamalka Forest Research Centre in Vernon </li></ul></ul><ul><ul><li>UBC-Okanagan </li></ul></ul><ul><ul><li>Wines and fruits </li></ul></ul><ul><ul><ul><li>Sun-Rype ORAC (oxygen radical absorbance capacity) </li></ul></ul></ul><ul><ul><ul><li>Wine Research Centre </li></ul></ul></ul><ul><ul><ul><li>Mission Hill and Burrowing Vintourism Owl Complexes </li></ul></ul></ul><ul><ul><ul><li>Aurora Golden Gala Apples </li></ul></ul></ul><ul><ul><li>Four season recreation </li></ul></ul><ul><ul><li>Retirees </li></ul></ul><ul><ul><li>Hi-tech: Kelowna Flightcraft, Limnology Research Corporation, and Summit Environmental </li></ul></ul>
  16. 16. Moving from Opportunity to a Prosperous Future Reality <ul><li>SUM: All BC can do it, </li></ul><ul><ul><li>If we drop hope o f return t o past & embrace new and often different futures </li></ul></ul><ul><ul><li>If we are creative and innovative </li></ul></ul><ul><ul><li>Think about customers, not production </li></ul></ul><ul><ul><li>Work together and share responsibility for our futures </li></ul></ul><ul><ul><li>In short, if we stop whining & start doing </li></ul></ul>
  17. 17. Investing in Our Future <ul><li>Communities must build shared visions </li></ul><ul><li>We must invest in people and ideas </li></ul><ul><li>We must continuously embrace change </li></ul><ul><li>Business, labour, government and academia must cooperate to innovate </li></ul><ul><li>Need leadership and effective governance </li></ul><ul><li>Spread such vision & leadership across BC </li></ul><ul><li>You are precisely the people who do it </li></ul>
  18. 18. Conclusions and Extensions <ul><li>Conclusion </li></ul><ul><ul><li>BC must focus on innovation, not on past </li></ul></ul><ul><ul><li>Extinction threat is best innovation & change agent </li></ul></ul><ul><li>What we lack is vision and leadership </li></ul><ul><ul><li>Little leadership & cooperation: n o “BC Inc” </li></ul></ul><ul><ul><li>You can and must provide it </li></ul></ul><ul><ul><li>No one else will </li></ul></ul><ul><ul><li>So, get on with business, its your business </li></ul></ul>

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