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Geog 2227 Natural Resource Management Lecture _3 Canada's


									        Geog 2227 Natural Resource Management
       Lecture #3 Canada’s Resource Economy cont.

   Review

   Staples Theory

   Post-Staple Theory

   Resource and environmental policy
   Reasons for increasing resource and environmental
       Size
       Wealth
       Public land
       Stakeholders

   Spectrum of ideologies (deep ecology, bioregionalism,

   Sustainable development
       Neo-classical
       Ecological economics
   Resource management
       Interdisciplinary

   Frontier economics

   Evolution of Canadian resource policy
Staples Theory

   Origins of the staples political economy
     The staples thesis set out an export led model of

      economic growth and attempted to describe how
      regional natural resource endowments led to the
      autonomous demands for the dependence upon
      exports, their spreading effects (linkages) to the rest
      of the economy and technological social change”
      (Wellstead 2008, 20).
Staples Theory

   Definition of a staple: a commodity which dominates
    an economy’s exports. In the staples thesis, the
    commodity must be relatively unprocessed. Fish, wheat
    and flour, timber and furs are all considered Canadian
    staple products.
Staples Theory

   Spread effect linkages
       Backward (agriculture inputs)
       Forward (agriculture milling and processing)
       Final demand linkage (required for diversification but difficult
        with foreign direct investment)

   Staples trap - a dependence on the economies that
    receive exports or supply manufactured goods
Staples Theory

   Four main assumptions of the staple theory

       Linked to other state economies

       Expanding resource exports

       New world economies

       Difficult terrain requiring state involvement
Staples Theory

   Growth and evolution of staples
    1) Rapid expansion as the new staple is developed using
    easy to access supplies
    2) Maturing phase as limits of low cost resource supplies
    are reached and/or competition limits market growth
    and the rate of expansion
    3) Disequilibrium phase is in slow growth requiring
    subsidized growth, weaker regulations and search for
    new supplies - usually a short term solution
    4) Decline phase as subsidies stop and industries
    downsize, move to other countries, new resource activity
    (aquaculture from wild fish)
Staples Theory

   Canada’s staple economy
       Lack technological capacity to process
       Relied on importing consumer goods
       Cheap supply of raw materials
       Policies and local resources support developing exports
           Railways to transport wheat and lumber, later minerals and pulp and paper

   Breaking the staples trap: Canada
       “The Staples Trap” - a high living standard supported by local or global
        demand must remain constant or increase, otherwise drastic consequences
       1890s to 1920s Wheat exports supported the manufacturing industry in
        central Canada
       1950s Resource economy impact of provincial development and foreign
        direct investment (Gordon Commission)

       Staples approach only applies to new countries - ratio of natural resources
        to labour and capital
Staples Theory

   Four phases of growth
    1) Frontier staples

    2) Expanding staples

    3) Mature staples state

    4) Post staple state
Post-Staples Theory

   Significance of the transition to post-staple economy

    1) Large scale development (staples trap or addictive

    2) Limited need for education and technical skill

    3) Uncertainty - boom bust cycles, public expenditures
    over other societal needs (health care, education, more
    capital and less labour…)
Post-Staple Theory
 Empirical evidence in Canada
Post-Staple Theory
 Empirical evidence in Canada

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