About This Report
This report lays out a framework for an inclusive industrial policy, as well as some promising options to pursue. At the core of the paper is a toolkit of promising practices that have been used successfully in Canada and internationally. These tools fit into three overarching themes: more strategic use of procurement; democratizing access to capital; and using government investment decisions to shape behaviour in ways that advance the goals of inclusion, community wealth and sustainability, which should include more equity investing by governments in firms.
The economic futures expected at the start of 2020 have evaporated, and many Canadians have lost their jobs, their businesses, and the paths they saw for themselves. The pandemic has revealed and exacerbated well-known problems, accelerated changes that were already underway and reminded us that effective government is absolutely essential to help Canadians and businesses through this period of unprecedented disruption. This generational economic crisis demands a generational economic response to ensure a strong economic recovery and lasting prosperity.
Increased economic nationalism, deteriorating multilateral economic institutions, and a rising intangibles economy require more proactive economic strategies. It is not a question of whether Canada embraces industrial policy but whether we do it well. With massive public investments occurring in economic recovery, it will be a generational failure if we fail to account for what kind of growth we want to see and what kinds of communities we want to build.
Read this report to help you:
- Understand the growing political consensus around the case for active industrial policy in Canada.
- Learn about Canada’s history of industrial policy and its successes and shortcomings.
- Identify proven policy tools that promote economic growth that is both inclusive and environmentally sustainable.
The Canadian Inclusive Economy Initiative is a new project to identify, develop and advance policy and program ideas that deliver shared, inclusive and sustainable prosperity for Canadians.