Gerard was at the shiny new Ryerson School of Business building today, and appropriately his comments centered on his vision for an 'enterprising' Canada.
As usual, the speech covered a wide range of topics. I really appreciate how Gerard tries to bring different threads together. Our society doesn't work in neat little compartments, and real leadership cannot be compartmentalized either.
Enterprise begins with recognizing a problem. We have become complacent, given a great country with many distinct advantages by our parents. But we have not increased that complement of advantages. We were able to succeed relative to many nations based on a manufacturing sector that rode a low dollar, and now on a resource sector buoyed by high world prices. We should not think that these temporary successes are to our credit. A number of pervasive gaps with our OECD competitors persist: in higher education, in productivity, in small business investment.
By contrast, other small nations (by which he means small in the OECD context, as we are) have been able to forge a consensus on a direction, and have been able to create real advantage in that direction. Ireland and Sweden are common examples.
But for Gerard, enterprise is not about business, and that's why it is not the same as entrepreneurialism. Entrepreneurship is about profit, whereas Enterprise involves government and the non-profit sector. Enterprise does share much in common with entrepreneurship, however, including a willingness to take risks, and the associated willingness to make mistakes.
This willingness to take risks must be fostered by strong leadership, leadership that strives to build a consensus on the direction that Canada should be taking. Gerard cited several top line goals for Canada: To push into the top 5 in productivity within 5 years; to halve the Canada/US gap in higher education; to sign bilateral trade deals with our five biggest trading partners. Some strategies for meeting these objectives include the national education strategy, tax credits for small business investments; attention to infrastructure (both of the bricks and social kinds); economic incentives to R+D; and clarification of IP rules governing public/private research.
Accordingly, Gerard thinks the role of the Federal Government is in identifying those areas where the economic and social interests of Canada are aligned, and driving towards a consensus in those areas to enable concerted action between government, non-profit, and industry. The immigrant success gap, for example, is a social problem with a healthy return on investment. The economic loss from their underutiliziation has been estimated at $6 billion a year. Solving the social problems associated with immigration is not simply a cost or a burden, it is an opportunity to better utilize our human capital and make Canada a wealthier place, from doctors driving cabs to Albertans who can't find employees.
Other particular areas Gerard mentioned included action on the environment (for example fuel cells or small-footprint oil sand extraction technologies, the implementation of a cap-and-trade system) and the opening protected industries to harness competitive energy (telcos and banks).
A key point, however, is that it is not the job of the PM to select these areas. A participative system involving a broad cross-section of Canadians has to identify these areas of censensus; they cannot be driven top down and so the plan is not about fuel cells and investment credits, but about breaking down the artificial conflict between our social good and our economic good, and thereby enabling their mutual support and improvement.
Finally, Gerard emphasized the cost of missed opportunity. Kyoto, for example, was an area where a lot of consensus was generated about the direction, but it was never translated to action on the ground. The longer we wait, the more the consensus falls apart and the more difficult it will be to make headway towards our objectives. This is not just about promises made - our failure will damage our competitive position as compared to many of our friends in the OECD.
I was really pleased with Gerard's speech and I'm excited about the prospect of co-operative enterprise. I have long been disappointed at the ability of certain stakeholders in industry to portray change as zero-sum (think record companies and oil companies), or to portray social ills as only drains on our purse, and not opportunities (as in environmental technologies and immigration). Gerard admits candidly that this kind of change is not easy, and there will be some dislocation. The result, however, will be a stronger and wealthier Canada, vigorous and competitive on the global stage, and not just a cork bobbing in a global ocean.
UPDATE
Get more details from the official press release
here.