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.

“… But we can’t compete on price, because someone will always be cheaper than you – which is why, for example the Canadian forestry industry, which pays high school educated workers $70,000 salaries to pump out two-by-fours instead of more value-added products, is being felled by foreign competition, hundreds of mills have been closing and thousands have lost their jobs.”

($70,000 with a high school diploma? I knew I chose the wrong career!)

Andrea discusses the dismal presence of competent Canadian businesses or industries on the world stage in her latest book “Why Mexicans Don’t Drink Molson: Rescuing Canadian Companies from the Suds of Global Obscurity”.

Want to know what’s wrong with Canada? Here are some note worthy quotes:

- “why is it that despite believing ourselves to brew some of the finest ales and lagers in the world, Canada can claim no beer exports to speak of. In comparison, a country such as Mexico, with little barley or fresh water, sees its beer dominate sales in 150 countries, including ours.”

- “We really don’t have competition in this country. Because we have things like foreign ownership rules in banking and telecommunications, foreigners are barred from entering Canada. As a result, we’ve tried to ‘invent’ competition here in Canada by trying to over-regulate domestic companies. The end result is that we end up with pseudo monopolies or oligopolies who carve up the market amongst themselves. Consumers are gouged on one hand (why is it that Canadian banks DON’T charge ATM fees in the US for example) while our companies remain coddled and complacent and without the skills to compete internationally.”

- “As for MacBlo, the company was always facing criticism at home in BC – every time it went abroad it was criticized for not creating more jobs at home and every time it tried to grow bigger in BC it was attacked for being too powerful.”

- “How can Canadians compete abroad when they can’t even compete in Canada, with all the red-tape, government bureaucracy, inter-provincial trade barriers and onerous regulation that doesn’t need to be there. “

- “Here in Canada there is a significant disconnect between the three (Business, Government, Academia) and an anti-business rhetoric that is quite pervasive in government and academia. As a result, government funds academic research chairs that might not necessarily have anything to do with the innovative needs and demands of business.”

… and with that ladies and gentlemen, I believe Ms. Mandala-Campbell have summed EXACTLY what is wrong with the culture and attitude of Canadians towards foreign trade and international business.

In an upcoming post, I might share my own experience in attempting to compete in Canada with an advertising venture against the only national market player.