OECD economist Peter Jarrett offers three areas to protect our economy against falling commodities prices.
For more on this topic, please see the related article below.
A major drop in the price of oil could lower the standard of living in Canada, so the federal and provincial governments should increase productivity to make economic growth less dependent on commodity prices, says Peter Jarrett, head of Canadian economic analysis at the Paris-based Organization for Economic Co-Operation and Development. In the following slides, he offers three areas where productivity could be boosted.
(Hasan Jamali/Associated Press)
COMPETITION: Increase competition, especially in the dairy industry. Incentives under the current quota system prevent any productivity gains from leading to cheaper milk for consumers, says Mr. Jarrett.
(JONATHAN HAYWARD/THE CANADIAN PRESS)
TAXATION: More provinces should adopt a harmonized sales tax (HST) to reduce inefficiencies and encourage companies to focus on the activities they're best at, says Mr. Jarrett.
EDUCATION: Ask universities to excel at teaching or at research, and stop wasting tax dollars with attempts to get them to be good at both. This would increase the attractiveness of our universities, raise their international rankings and improve the quality of education, says Mr. Jarrett.
(Paul Daly for The Globe and Mail)