OECD sees signs of Dutch Disease affecting non-resource provinces in Canada - InfoNews

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OECD sees signs of Dutch Disease affecting non-resource provinces in Canada

June 13, 2012 - 10:00 AM

The Organization for Economic Co-operation and Development says Canada needs to do more to develop non-resource aspects of the economy in order to maintain employment and an equitable distribution of wealth.

A comprehensive report by the multinational organization says the rise in commodity prices has tended to concentrate wealth in Canada's resource-rich provinces.

In turn, commodity sales have pushed up the value of the Canadian dollar to the disadvantage of export-oriented manufacturers in Ontario and Quebec — a phenomenon known as "Dutch Disease."

The report says there's no question the decline in central Canada's manufacturing base is correlated to the appreciation in the dollar.

The analysis is similar to one advocated by NDP Leader Thomas Mulcair, who has been accused of pitting regions against each other for political purposes.

The OECD report says Canada should seek solutions that boost innovation and improve education resources that produce skilled workers.

News from © The Canadian Press, 2012
The Canadian Press

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