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2. There is a brighter and more prosperous future for Atlantic Canada that can be
achieved through increased global competitiveness and international trade flows.
Canadian sectors, (e.g., energy, mining, agri-food, information &computer
technology, aerospace and education) can all be positioned to garner significant
benefits from the growth in global trade flows from these rising economies.
We in the Atlantic Region possesses many of the necessary “raw ingredients” for
success.
The Important Issues
3. Emerging economies and their rising middle
classes will rely on the rest of the world for
inputs to build their infrastructure, supply their
factories, design and fuel their modes of
transport, as well as feed, house and educate
their children.
The GDP of emerging economies now
accounts for nearly half of global GDP and is
growing at more than double the rate of
western economies.
By 2025, 52%of global middle class
consumption (approximately $22 trillion) will be
derived from the middle class in Asia and
almost half will come from China.
In Indonesia alone, over 90 million people
(2.5X population of Canada) will join the
middle class.
The Important Issues
1-2%
world
5-8%
world
2012 2013 2014
Adv.
Econ. 1.2 1.2 2.2
U.S. 2.2 1.9 3.0
Euro
Area -0.6 -0.3 1.1
Japan 2.0 1.6 1.4
U.K. 0.2 0.7 1.5
Canada 1.8 1.5 2.4
China 7.8 8.0 8.2
India 4.0 5.7 6.2
Brazil 0.9 3.0 4.0
Russia 3.4 3.4 3.8
Growth Prospects
(IMF, April 2013)
4. Switzerland and Singapore are
the most prosperous and
competitive in the world and a
key source of their
competitiveness is not natural
resources but based on
success in international trade.
Critical success factors are:
– Conscious selection of
“champion” industries and
sectors.
– Broad coordination across
public sector, private sector and
academic institutions.
The Important Issues (continued)
4
5. BUT
Today, approximately 75% of all Atlantic Canada’s regional international exports are
to the USA and are accounted for by fewer than 500 companies.
Even if the U.S. pulls out of its slow-growth rut, we can no longer afford to be so
reliant on one market which faces such severe headwinds – and with so few
internationally oriented companies.
Canadian capacity, such as energy, mining, agri-food, information and computer
technology, aerospace, education and tourism can all be positioned to garner
significant benefits from the growth in global trade flows from these rising economies.
The challenge is that other regions, often better organized and financed, see these
same opportunities. They are creating strong linkages among their private and public
sectors, and leveraging these linkages to make informed choices about where they
can create global and national champions. They have a focused global trading
strategy – and that is what we need now.
The Important Issues (continued)
6. What’s Needed
Atlantic Canada must have a clear,
granular and region-wide global trade and
investment strategy if we are to seize the
incredible opportunities in emerging
markets.
Atlantic Canada must have a clear,
granular and region-wide global trade and
investment strategy if we are to seize the
incredible opportunities in emerging
markets.
7. We urge a focus on strategic sectors where we believe we can create sustainable
and globally competitive national champion industries and companies that will, in
turn, provide a net benefit to Atlantic Canada’s economic prosperity.
– These would likely include defence and security, aerospace, information and
communications technology, oceans technology, education and training, tourism and
agri-food.
– A “Going Global” Steering Committee should be formed to ensure focus is maintained
and goals are managed for this critical objective.
– Membership should be a cross- section of both private and senior public sector leaders
who wield enough knowledge, access and influence to drive alignment and make
binding commitments at the Atlantic Canada level.
Our “Big Ideas”
8. Each task force must be given the mandate to develop a detailed regional
strategic plan for its industry sector including:
– Providing five year blueprints for building business processes, globally relevant
competencies, strengthening competitiveness and expanding international trade flows in
each sector.
– Recommending supporting activities in the areas of training (including immigration),
applied academic research, government processes, and innovation and productivity.
– Tracking our international trade performance against a peer group of countries using
key measures, such as export growth, trade penetration and share of exports to
emerging markets.
Our “Big Ideas” (continued)
9. We need a focus on making Atlantic Canadian small and medium-sized
enterprises (SMEs) more export ready. Growth-oriented SMEs are the key to job
growth and wealth creation in every region and country. To grow, SMEs need to
trade, and they need the skills to compete in global markets.
– Private sector, in partnership with governments across Atlantic Canada, and federal
agencies and organizations, should develop a series of “reverse trade missions”,
focusing on the most promising global opportunities.
– A reverse trade mission is a new format where we bring global firms to us, rather than
travelling to them.
– This transforms what we are currently doing to build export capacity into bigger,
integrated and high-impact events focused on emerging markets. Reverse trade
missions can engage literally thousands of our local firms, particularly Atlantic SMEs, at
much lower cost and higher impact.
Our “Big Ideas” (continued)
10. The big ideas outlined are appropriately ambitious, hopefully exciting, but they are
not “blue-sky impossible” – far from it.
They will flow from the collective product of thousands of personal actions taken
by committed, passionate individuals like us who want Atlantic Canada to
succeed in the changing and challenging world arena.
On the following slide is a list of some things you can do, as a business leader in
our region, to help create a better Atlantic Canada.
What You Can Do
11. Learn more about BRICS countries.
Organize or attend a “reverse trade mission” where key foreign companies come
to Atlantic Canada.
Do a strategic competitive assessment of your own company: Consider going
global: do a strategic competitive assessment of your own company. Is it ready to
compete globally? How can your company benefit from:
– Rapid economic expansion in emerging economies?
– Greater regional focus on champion industry sectors?
– The $150 billion in major capital project investment in Atlantic Canada over the next 20
years?
Mentor a new immigrant to Atlantic Canada.
Volunteer to participate on a regional sector task force to develop regional
economic and export strategies.
What You Can Do
12. Thank you for your help
with this important
initiative