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January 21, 2008 (http://telegraphjournal.canadaeast.com/search/article/188395)

The Great Divide
Future Band province together to gain advantage in global economy, journalist tells New Brunswick

Quentin Casey, Telegraph-Journal
Published Monday January 21st, 2008 Appeared on page A1

FREDERICTON - New Brunswick must escape old - and ultimately self-defeating - internal debates if the province is to buck long-standing trends and lessen its dependence on federal transfers, says a veteran Canadian business reporter.

Andrea Mandel-Campbell, author of a recent book focused on pulling Canadian business out of global obscurity, says the province must doggedly pursue world export markets to create the type of wealth needed to be fiscally independent.

"With a population of just 750,000 you're still talking about whether it's a French-English divide, or an urban-rural divide or a north-south divide," she said in an interview Sunday.

"You're up against the whole world, like China and India. What are you doing wasting your time with trivialities like that? You should be banding together, seeing where your strengths lie and using them to your advantage."

Take official bilingualism for example. Instead of a traditional issue of tension, it should be seen as an advantage for breaking into international markets, contends Mandel-Campbell.

"We waste an inordinate amount of time in Canada on issues that in no way further our national interests, and that have blinded us to the real challenges facing us," said the Toronto-based writer, who spoke at a leadership forum in Fredericton on Saturday night.

Much like the nation as a whole, she argues, New Brunswick must strive to be more export-driven and less reliant on trade with the United States.

"Every industry, entrepreneur and company has to be thinking about how (they can) sell their goods abroad," she said.

"To rely solely on one market is a dangerous thing."

If not, numerous sectors are bound to suffer like the local forestry industry: ravaged by mills closures and lay-offs.

Success in numerous markets brings stability, chances to be more innovative and even higher wages, said Mandel-Campbell, whose recent book 'Why Mexicans Don't Drink Molson' argues Canadian businesses must boost their interest in the global market.

Ignoring the global reality will cause local industry to erode further, she contends. "Canadian companies that don't go abroad and refuse to recognize they can no longer just rely on the fat cats south of the border to buy their products (will fail)," she said. "It's that simple."

She points to Finland for inspiration on the forestry side. Following the Second World War, the Finnish forestry sector was devastated. But a commitment to international markets made the country a world leader: the Finns now have the largest, most innovative and most productive mills in the world.

According to Mandel-Campbell, half-measures are not enough - bold and decisive change is needed. While she applauds efforts by the Shawn Graham government to grow the economy and become fiscally independent, she questions whether the plan is as audacious as it needs to be.

"It's all very nice and well meaning, but I don't see anything particularly bold there," she said of Graham's much-lauded Self-Sufficiency agenda.

"The entire province is on welfare and always has been, (and) you have a declining population - that seems pretty serious to me."

Mandel-Campbell said the province should make its business tax regime competitive by international standards, not just by Canadian standards.

The Graham government has pledged to improve the business tax environment, despite raising taxes across-the-board in its first budget.

"It would be sad if we had to wait for a crisis to finally make some decisions," she said. "Arguably in this province there's been a crisis going on for a long time. Still, people are not completely convinced that something needs to be radically done.

"Without the wealth base you will never be able to afford the social benefits you as a society think are important"¦ You're already not paying the bills," she said, referring to the $1.5 billion New Brunswick pocketed this year in equalization funding.

Mandel-Campbell's insights landed her as a guest speaker at a gathering of 20-35 year-olds, touted as the future leadership of the province.

Tim Coates, is executive director of 21 Inc., the non-profit group that organizes the 10-month leadership training program. He says there is a real need for cooperation and a melding of ideas as New Brunswick looks to overcome its financial disabilities.

He hopes this year's 21 chosen participants, from all over the province, can aid that effort. "We have to march together."

 

 


 

 

 

 

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