Future Issues and challenges in the Canadian Economy Canada’s Role in a Global Economy Demographic Patterns Disparity Sustainability

Canada’s Role in a Global Economy Canada signed on to GATT (General Agreement on Tariffs and Trade) in 1948 GATT was later replaced by the WTO (World Trade Organization) The WTO controls over 82% of trade in the world – very powerful institution The WTO is an advocate of freer trade

Canada’s Role in a Global Economy There are many opposed to the WTO They see the WTO as a body that favours the interests of big business and not of the general population (workers and developing countries) of any country There have been many protests against the WTO

Canada’s Role in a Global Economy Another trade association Canada takes part in is the FTAA (Free Trade Area of the Americas) Proposed the creation of the largest free trade agreement ever negotiated including 34 countries and over 800 million people in North and South America The agreement will eliminate all trade barriers on exports and remove obstacle to foreign investment Opponents believe this would make transnational corporations more powerful than governments

Demographic Patterns How an economy performs affects the choices of everyone involved: careers, homes, lifestyles and so on The general shift of populations from rural areas (the country) to urban centers (the city) is an example of this Urban centers generally have more opportunity and experience more prosperity due to free trade Halifax experienced a 2% increase in population sine 1996 and accounts for 39.6% of the population of Nova Scotia

Demographic Patterns Canada has recently been experiencing a slowdown in population growth The is is due to: emigration (people leaving), decreased birth rate, aging population This decline could lead to a labour shortage and stress on social programs due to increase in aging population

Economic Disparity How great is the economic gap between the rich and the poor? Statistically – since the 1980s the gap has been widening This is due in part by: 1. a shift in government structure leaving less money for social programs, 2. Prosperity of big business from freer trade practices and 3. job losses resulting from freer trade

Sustainability – Maintaining Canada’s Resources The key to maintaining our resources is to practice sustainable development The use of the GPI (Genuine Progress Index) can help measure sustainable development The GPI uses different criteria than GDP The criteria include: resource depletion Pollution Long-term environmental damage Calculates costs to our economy rather than as income

Case Study Please read chapter 11 and record definitions for vocabulary in bold print. 2. How has the trend towards a global economy affected Canada’s economic practices? 3. In a chart compare and contrast reasons for and against the FTAA. 4. Respond to the connections block on page Respond to the connections block on page How will future economic changes affect the choices you make regarding: a) your career path, b) your lifestyle.