Canada losing ground in global economy
01 November 2012
Canada is losing economic ground in the global economy, according to Bombardier CEO, Pierre Beaudoin. At a time when emerging markets, especially in Asia, are leading global economic growth, Canada's ranking among global traders has dropped from sixth to 10th since 2001.
Beaudoin is thus proposing a new strategy to gain entry into emerging markets’ value chain, to fulfill Canada's potential in these economies. Beaudoin would like to see "policies that not only promote exports, but also spur two-way investment, international research and development partnerships, and strategic sourcing".
As many emerging economies practice "state capitalism", through "assertive industrial policies to support their domestic manufacturing industries", Beaudoin is asking Canada's government "to identify and vigorously support strategic sectors that can help drive our country’s growth".
It is true that free trade and investment agreements can promote business with emerging economies, and governmental cooperation does help, especially with countries like China.
But in reality, experience also shows that companies that succeed in China, for example, are those that put in a lot of effort, have a higher appetite for risk, a willingness to fail, and above all a CEO who is willing to take the time to tackle China.
Mr Beaudoin, where are you animal spirits?