Opinion: It's time to put Canada back on the investment map

Yahoo

2 days ago

It takes money to make money. This is one of the oldest truisms in business.
In national terms, it takes investment to generate economic growth. But in recent years, Canada's economic policy has lost sight of that basic principle.
A major reason for Canada's stalled economic growth and declining standard of living over the past decade is that business investment — a critical driver of growth — has been weak, suffering under a federal policy environment that has ranged from unhelpful to counterproductive. The result is a country struggling to compete, attract capital and generate the kind of prosperity Canadians expect and deserve.
When businesses look for opportunities to grow and invest, Canada has not been a clear choice for some time and the reasons aren't mysterious. Investors want to know that when they make a bet on a country, that bet won't be derailed by unpredictable policy shifts, misguided regulatory frameworks or political interference.
If we want to reverse this trend, we must act — and quickly. At a time of global uncertainty and geopolitical turmoil, countries are seeking reliable trading partners and investors are looking for stable, competitive environments. Canada can offer both.
According to recent polling, 80 per cent of Canadians supported growing investment in Canada by focusing on competitiveness. With bold leadership, we can restore confidence, attract investment and build a stronger, more prosperous future for all Canadians.
That starts with a national commitment to positioning Canada not just as a top choice for business but the top choice.
Canadians' famous modesty can sometimes work against us. We are often reluctant to say we want to be the 'first' or the 'best,' but we must. We need to send a clear message to the world: Canada is refocused on competitiveness and committed to growth. This message must be reinforced consistently, on global stages, in major speeches and in every international engagement.
But rhetoric alone won't get us there. We must back it up with action. We need to eliminate the friction that makes doing business here harder than it should be. That includes eliminating barriers to labour and trade between provinces, a long-standing Canadian problem that we've tolerated for too long.
We also need levels of government to play to their strengths and, frankly, stay in their lanes. Canada's constitution gives provinces jurisdiction over many key areas that affect investment — from natural resource development to permitting and electricity generation. To successfully build business and investor confidence, the federal government must respect this.
Playing to our strengths also applies to how we manage natural resources. Canada has a generational opportunity to meet growing global demand for responsibly produced energy, minerals and food. But to seize it, we need a policy environment that enables — rather than obstructs — investment.
This will also require a better process for Indigenous consultation, one that ensures both partnership and consistency.
And we must take a sharper, more targeted approach to immigration. Canada has the potential to attract the world's best and brightest, but we must prioritize pathways that match our economic needs and select those with the skills and capabilities to meet those needs and be set up for a long-term trajectory of success. Seven in 10 Canadians support this market-driven economic approach to immigration.
Finally, we can't talk about investment without talking about infrastructure. Moving Canadian goods to global markets efficiently is essential to our competitiveness. That means faster approvals and more significant and expansive investments in trade infrastructure — starting now.
None of this requires reinvention. These are pragmatic, achievable steps, ones we outline in a new report, From Barriers to Breakthroughs, that can strengthen Canada's economic foundation and restore our competitiveness on the world stage.
What's needed is the political will to act, the discipline to follow through and the commitment to make economic growth a lasting national priority — one that endures beyond quarterly updates and election cycles.
Adam Legge is president of the Business Council of Canada.