Canada has one of the strongest economies in the world and is actually rated as the tenth world’s largest economy. Canada is one of the wealthiest nations of the world and is a member of Group of Eight (G8). As a matter of fact, the government’s debt burden of Canada was the lowest by 2008 among the G8 nations. The Canadian economy is majorly reliant on the service industry as major employer of most of its citizens and for economic development. International trade makes the most of the Canadian economy with the export of natural resources being at the center stage.
Northern Canada is one the major economic locations within Canada. This part of Canada controls major economic policies in Canada and basically contributes to a bigger portion of the economic growth of the country. This article looks at the major economic engines that are located in the northern part of Canada that makes this location a major economic boost to the overall Canadian economy. The major economic regional variations of Canada are also tackled in this article.
To begin with, the northern Canada has a vast measure of natural resources as compared to the other parts of the country. Northern Canada does poorly in terms of agriculture but on the other hand is vast in other natural resources like gold, uranium, nickel, lead and diamonds. As a result of the above economic resources, northern Canada has majored in mining as the main economic activity. As a result of the above natural resources, Canada has always been known to be a world leader in the production and export of the above natural resources.
Some of the largest industries in Canada lie in the northern part and are mainly natural resource industries such as Cameco, EnCana, Barrick Gold and Goldcorp. The mining industry in the northern part of Canada has brought about a lot of significant growth in country in several ways that is important for consideration at this point. Firstly, the mining industry has managed to create employment for many citizens of Canada. It is worth noting that a majority of the northern Canada citizens have been able to have stable lives due to the stable employment opportunities that the environment around there has provided.
Mining being a major source of income in the area has contributed a lot to the economic advancement to many citizens around there and hence has managed to promote economic development of Canada. The stability of the natural resource supply has also contributed to the stability of employment in the industries in this area (Howlett & Ramesh, 1992). Improvement of infrastructure has also been another positive consequence of the mining activities in northern Canada.
Because of the need for proper communication channels and transportation facilities for the natural resources, the infrastructure in the northern Canada has improved greatly and has reached advanced levels. The major industries in the areas need proper communication and transport facilities in order to effectively carry out there operations. Advanced communication infrastructure has therefore been installed in the area as well as proper road network to facilitate effective transportation of the finished products from the companies.
Infrastructure development has therefore become a major growth engine in the northern pat of Canada since it has also contributed to the development of other minor supportive industries in the region hence promoting industrial growth. The next major engine of growth in the northern part of Canada is the logging industry. The northern part of Canada has wide forest covers apart from having natural resources. Logging has therefore become another major source economic growth around this region.
Logging has brought about several advantages in this region that has spurred it to be a major economic mover in Canada. Growth of paper and pulp industries is the fist advantage. Several paper and pulp manufacturing industries have resulted out of the logging industry. These industries are concerned with the actual transformation of the raw logs into finished products such as paper and pulp. As result of this, the economy of Canada has benefited a lot out of the pulp and paper that serves several purposes in the economy of Canada.
Secondly, the paper and pulp has contributed to the increase in employment in the region. The increase in the paper and pulp industry in the region has resulted into several employment opportunities in the area. Several citizens of Canada residing mainly in the northern part of Canada have managed to benefit tremendously out of the growing paper and pulp industries. These industries have acted as major sources of employment in the region for many young men and women as well as many families in the region.
As a result of this, most families are stable financially which clearly reflects the overall economic stability of the region. Thirdly, the logging industry has contributed to the improvement of infrastructure in the region. The heavy logs need to be transported from the forests to the industries. This means that the roads networks and the means of transport have to be well developed to facilitate this. This has therefore resulted to the development of proper roads and well functioning communication system in the region (Wallace, 2002).
The government of Canada has also benefited a lot out of the logging, paper and pulp manufacturing industries. The taxes levied upon the timber and the other logging procedures from the paper and the pulp industries tend to increase the income of the government. The government also gets revenue from the exportation of some of the timber, paper and pulp products that get transported from the logging companies. This increases the income of the government tremendously. It is therefore important to note that the logging industry is one of the major engines of growth in the northern Canada.
It is important to note that Canada has vast source of wealth that is evenly spread throughout the country. The northern side of the country is mainly vested with the natural resources together with the mining industries. The British Columbia is known for the forestry industry; Alberta, Saskatchewan, Labrador and Newfoundland are known for oil and gas industry; northern Ontario is mainly known for the wide array of mines while the fishing industry is mainly vested in the Atlantic Provinces in the country.
The above resource locations reveal how the Canadian economy is and how sustainable it has remained with time. It is also important to note that most of the natural resources have remained stable and have not been depleted with time. The above qualities and resource allocations in Canada has made it to be one of the strongest economies in the world. References: Howlett, M & Ramesh, M. (1992). Political Economy of Canada: An Introduction. Toronto: McClelland and Stewart. Wallace, I. (2002). A Geography of the Canadian Economy. Don Mills: Oxford University Press.