Time for a radical new economic development strategy

Over the next six months Calgary will revisit its economic development priorities. There are abundant signals that it is time to forge a radically new pathway to prosperity.

Ecological economist Herman Daly argues that we are now in a full world — there is no more room for expansion without destroying the natural systems that underwrite the human economy. Our economic development strategy should move beyond growth to a focus on well-being in a world where resource consumption is maxed out.

In light of the breach of the 400 ppm threshold in atmospheric carbon dioxide concentration that was the focus of my previous column we desperately need an economic development strategy that mounts a full-on assault on climate change with a long-term view to a post-carbon city.

Former CIBC World Markets chief economist Jeff Rubin argues convincingly in two recent books that the new normal of oil prices in the range of $100 per barrel means “the end of growth” and that our economies will have to be re-engineered to once again manufacture most of our stuff locally.

Finally in the recent study Economics versus Politics: Pitfalls of Economic Advice two Harvard economists warn policies that “economically strengthen already dominant groups are especially likely to tilt the balance of political power further” and magnify economic inequality and democratic dysfunction.

Given all of these converging analyses it’s time for a radical new strategic thrust in Calgary — one that transitions us to a no-growth world gets serious about climate change fosters greater economic equality and is a catalyst for a post-oil gas and tarsands-fuelled future. Based on the first meeting of its advisory committee there seems to be at least the openness at Calgary Economic Development to debate the merits of such a departure in strategy.

Let me offer one way forward that draws from a report entitled Citizens Agenda a Sustainable Calgary initiative undertaken with the participation of about 1000 Calgarians from all walks of life. The initiative asked what the most important policies are that would make our city more healthy caring and vibrant. Ultimately it recommended a dozen priorities.

Prominent among the recommendations was a call for sustainable economic diversification. Many of the remaining policy recommendations provided a framework for where to diversify.

In light of the fact that the lifestyle of the average Calgarian requires more resources than that of Canadians in any other city the Citizens Agenda calls for the creation of a zero-waste economy. Instead of sending millions of tonnes of material to landfills we need to develop industries and industrial processes and districts with the mantra of “waste equals food.” That is waste from one enterprise finds a home as the raw material for the next.

Homelessness is still a major scourge in our city. In partnership with the 10 Year Plan to End Homelessness our economic development strategy could spur innovation in affordable housing from the design of urban community land trusts to ultra-low cost shelter to laneway housing to the evolution of planning and development processes that enable innovative community-building approaches like Prairie Sky co-housing to proliferate.

Our economic development strategy should support the development of the most robust green building industry in the world demanding the highest standard — whether it be LEED platinum Net Zero or the Living Building design — for all new buildings. With the population expected to double in the next 50 years Calgary would boast the greenest building stock on the planet.

Rather than competing in the race to attract the best and brightest to Calgary why not put our resources into improving the skills of people who already live here and of making sure that every new immigrant is empowered to contribute the full potential of the skills he or she brings to our city? Driving a cab is an honourable profession but trained medical doctors or engineers shouldn’t be driving cabs for a living.

We buy and drive cars more than any other Canadians and that represents money leaking out of our economy like oil out of the hull of the Exxon Valdez. Calgary could become a design and manufacturing centre for cold climate commuter and cargo bikes. We could use our logistical know-how to design super efficient car-sharing systems reduce the number of cars in our city by 70 or 80 per cent and eliminate the need for every household to own and maintain its own car or two or three.

The biggest opportunity for sustainable economic diversification is indeed in the energy sector via the development of the vast solar and wind resources in southern Alberta. Calgary economic development could take up the challenge of charting the course to a fully renewable energy economy — the next generation.

An economy built for everyone designed for the future for a city that knows how much is enough. It’s entirely within our grasp.

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