Canada And Natural Resources

Canada is addicted to making money from natural resources, which fuels the Canadian economy. Canada is the world’s leading exporter of softwood lumber, newsprint and wood pulp. Canada has the third most oil reserves in the world (Canada. Government of Canada). Canada is also one of the world's highest per capita consumers of energy (United States of America). Canada is known for its abundance of natural resources, however it is not known for many other great opportunities that Canada holds. Canada is becoming an unsustainable economy from its reliance on natural resources. This creates volatility in the Canadian economy; Canada is not aggressively pursuing other market share opportunities; and Canada’s resource-based economy creates a ripple effect towards other sectors of the economy.

Volatility in the Canadian economy is not suitable for investors and Canadians since it is unpredictable of where the economy might end up. In parts of Canada such as Alberta, the government is reliant on the taxes collected from the oil extraction industry. In Alberta ninety two percent of Alberta’s Gross Domestic Product (GDP) comes from oil sands (Campbell). This is unsustainable because of the volatility of commodities, and the reliance the government has on natural resources. The Canadian economy is affected by the prices of natural resources. There are many factors that could rapidly change the prices, which make it volatile in the Canadian economy such as the demand in the commodity markets, disruptions from trade disputes, natural disasters, and environmental issues. This creates an economy that is controlled by external factors, which create massive amounts of volatility, and unsustainability. Canada is dependent on the worlds’ ...

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...nsive to produce products in Canada (Dobson). This has direct impact on Ontario businesses, in particular importers and exporters. The higher the dollar the less foreign businesses would buy from Canadians.

As time passes Canada is becoming an unsustainable economy from its reliance on natural resources. This unsustainability creates volatility in the Canadian economy, missing out on market share opportunities, and it is creating a negative ripple affect to other sectors of the economy. Canada should move forward and expand its spectrum and play an aggressive role in the global marketplace. Canadians need to adopt a long-term approach that will benefit the growth in Canada, as opposed to the short-term gains, that currently exist. Canada has many opportunities to exceed in today’s globalized economy and it should act now, since Canada’s future depends on it.