The two-day 2007 Atlantica Conference began yesterday at the Halifax World Trade and Convention Center. For those of you who don’t know, ‘Atlantica’ is an effort at better economic integration for the Atlantic region of North America that spans both US and Canadian cities/provinces. The initiative is headed by AIMS – The Atlantic Institute for Market Studies

A lot of controversy surrounds Atlantica. Yesterday, protestors took to the streets with signs and chants condemning the effort, as they believe the deal will be bad for Nova Scotia. At least two websites exist that denounce the effort (like stopAtlantica.org). A research paper outlining the flaws of the initiative was also prepared by the CCPA – The Canadian Center for Policy Alternatives

Proponents of Atlantica, (including government, business, and political supporters) are pushing to utilize Atlantica to cope with a changing economic environment in Atlantic Canada where the future seems bleak for Nova Scotia if it fails to become competitive in areas of trade and skill-adoption. With factories closing doors in the province and relocating to more affordable locations around the world, globalization will leave Nova Scotia with no alternatives but to embark on new industry adoption and re-train the work force. Charles Cirtwill, President of AIMS, explained ‘Atlantica’ in his May article on the Chronicle Herald.

Opponents of the initiative are concerned about Atlantica’s effort to open discussion on the possible deterrents to business investment in the region, including minimum wage standards and excessive unionization of labour in the Province. They claim Atlantica’s trade vision is unrealistic and is inconsiderate of environmental and social impacts.

(Image from the Maritimes Independent Media Centre website)

I believe that, while some of the details of the Atlantica initiative remain to be tweaked and studied, the idea as a whole is reasonably sound. The region working as a whole can achieve synergies that will allow it to become more competitive in the global market than any one individual part of the region can achieve on its own, this much is uncontestable. However, some of the criticisms in the CCPA paper may be legitimate (though the language used was far from ‘neutral Professional-Academic’).

Regardless of the criticisms, the initiative shouldn’t be scrapped altogether just because ‘some’ elements are not completely hashed out to everyone’s satisfaction yet. To do so will exemplify the knee-jerk reaction typical of a Province that has traditionally resisted change. Unfortunately, Nova Scotia can not afford to remain complacent in the face of the deteriorating economic situation. A strong dollar (fueled by positive economic growth of other Canadian regions), coupled with high regulations and excessive unionization is spelling disaster for Nova Scotia.

This year alone two plants have closed their doors in Nova Scotia already, sending close to 1000 (One Thousand) workers on government assistance (yes, that’s your tax dollars). In the words of Bill Furman, President and CEO of Greenbrier – the U.S. parent company of the foreclosed TrentonWorks plant in Trenton, NS: “The very strong secular outlook for the Canadian dollar, uncompetitive labour and benefit costs coupled with geography and other factors really meant that we didn’t have a choice“.

Already dubbed a ‘land of mediocrity’ in a scathing new report card from the Conference Board of Canada, this country suffers from over-confidence in the area of self-perception. Canadians think that they are untouchable, have one of the best social and health care systems in the world, and are invincible to economic strife. The country is extremely risk averse when it comes to making changes or embracing a global business view. Canadian labourers expect to be paid premium wages with extensive benefits, while ignoring the fact that they are easily replaceable since the skills they offer are hardly unique or hard to find in labour markets of other countries. More insight on this was provided previously from Andrea Mandel-Campbell in my blog post titled “Why Mexicans Don’t Drink Molson“.

And so, in the face of all studies and advice, what are some Canadians doing when someone takes the initiative to prepare for the long term inevitabilities of globalization? They form groups and organize protests to maintain status quo and, while at it, yell a little about the environment and global warming.

I will leave you with the infamous quote from Stephen Harper. Will Harper be proven correct in his assessments of Atlantic Canada?

“Atlantic Canada’s culture of defeat will be hard to overcome as long as Atlantic Canada is actually physically trailing the rest of the country.” – Stephen Harper.