Editorial - 28-12

Break out the pails and sharpen those axes. Unless Canada undertakes forceful measures to add significant value to its natural resources, the deindustrialization of Canada will continue apace. That's a key conclusion of an important new study by the Energy Pathways Task Force, released under the auspices of the Canadian Academy of Engineering (see lead story).

The Task Force — led by Dr Clem Bowman — has been studying the energy sector for several years now and its last two reports call for Canada to revive its former practice of nation building through large national projects. In the distant past, these projects led to major economic breakthroughs for Canada, contributing to technological achievements and our high standard of living.

The report argues that nine more should be seriously considered, starting with a massive public-private bitumen upgrading project and the creation of an east-west national energy grid to facilitate large block sales of electricity to the US. Others could be launched as circumstances permit, between now and 2050.

With current policies and funding that favour natural resources, a whole layer of innovation is being ignored and the task force makes a strong case that it's a major factor in the decline of manufacturing.

Other factors are also at play, of course. But until we focus on the infrastructure, technology and human resources required to move beyond raw extraction and export, Canada's future could appear decidedly déjà vu. We made a good start at developing a knowledge-based economy. Let's not squander it before it's had a chance to succeed.