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An inheritance to bestow

Article Abstract:

The Economic Council of Canada believes that the Canadian government has approximately 25 years to prepare for the economic ramifications of the retirement of the baby-boom generation. Reducing the federal deficit from the 1989 level of 3% of gross domestic product to 1.5% or less by 1993 should be the primary priority of the government. The deficit has stifled productivity and productivity gains are essential if Canada is to remain competitive and maintain its standard of living. Economic targets proposed by the Council include: increases in both productivity and employment of 1.5-2% annually; an increase in gross domestic product of 3-5% annually; and maintaining inflation below four percent. Along with deficit reduction, the Council recommends that the government: encourage decreased interest rates; exploit US monetary and fiscal policy changes; and cut public spending.

Analysis, Human beings, Humans, Deficit financing, Deficit spending, Canada. Economic Council of Canada

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Serious weaknesses to solve

Article Abstract:

Canada has a weak competitive position in the area of high-technology trade, necessitating a review of national science and technology policies. Canada is an insignificant exporter of high-technology products and its share of the US market has declined drastically since 1971. The problem is caused by low research and development expenditures. Total research and development (R&D) expenditures represented only 1.3% of Canada's GDP in 1985 versus 2.8% for Japan and 2.7% for the US. The expenditure on R&D by private industry is the lowest of the G-7 countries. Canada has failed to adapt to the changing global economy and has been unable to improve productivity or reduce manufacturing costs.

Innovations, Industrial research, International trade, Science

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