Does Alberta need to have a revolution? Not a revolution like the Bolshevik, French, or American revolutions, which saw the overthrow and change from oppressive powers (though there are mutterings for Alberta separatism from some quarters). No, this is the need for a socio-economic revolution: a change in the way we think about business and industry.
Two centuries ago, the Industrial Revolution changed the way the world thought, changing from mercantile and agricultural-based systems of yore into the economic structure we know today. As industrial production began to improve, so did the outsourcing of raw materials needed for this industrial world. This made economies specialized on producing raw materials for manufacturing or into manufacturing economies themselves. Modern globalization became the end result of this, along with the development of various European empires – colonization, which sought to protect their economic interests of their system, as they sourced raw materials from around the globe, creating new markets for themselves in the process.
If we look at Alberta’s history, and its modern role within the domestic and international economies, this is our current role: we produce raw materials for the world, or for Central Canada (as if we are a colony) to maintain the manufacturing economies elsewhere in the world. We are also a consumer of imported, finished goods, which means our monies quickly leave this province, leaving little for the potential development and diversification of our own economy here. Can we change this?
To do so, we would have to change the way we think about the economic models we currently work with. We have hamstrung ourselves by comparative ideals of large manufacturing systems, needing a large manufacturing population along with a large market, as we see in Ontario and Quebec or, today, in China. But can we not adapt other strategies, which could see us using our own strengths of resources and energy to create the elusive secondary industry dreamed and talked of from Lougheed onwards?
There are international examples of this effectiveness already out there. In Germany and Italy, for example, there are small, specialized manufacturing sectors, usually family-owned businesses, that are competitive global leaders in their areas. The Japanese model of manufacturing has also been highly successful and dominant even though they do not have an abundance of raw materials. Can we not learn from these accomplishments to create an Albertan-based solution?
One understands that there will be many naysayers sputtering right now, stating that this cannot be done. They will give a plethora of economic answers, all based on conventional ideals. But you cannot drive forward if you continue to look through the rear-view mirror, or the inevitable crash will occur. The purpose of this article though is to ask ourselves if there is another way to plan our economy, to create a true Alberta Advantage for Albertans (a triple A economy), which transforms us from only being the “hewer of wood and carrier of water” for others, in effect, creating that needed economic revolution for our economy and ourselves. Maybe, this is something we should consider.
John Kennair is an international consultant and doctor of laws who lives in St. Albert.
