December 2019
In October 1983, the Government of Alberta under Premier Peter Lougheed produced the discussion paper, Alberta in Canada: Strength in Diversity.
Highlights of the report
Alberta has vast potential and significant opportunities. Its natural strengths are considerable: rich farmland, vast energy resources, large tracts of forests, abundant water supplies, a varied and scenic countryside, thriving urban centres, and a creative, highly educated, and industrious populace. However, as a land-locked province with a relatively small population base, Alberta has faced some difficult problems in its efforts to build upon its natural strengths. To a considerable extent, these problems have been aggravated by federal trade, transportation, energy and economic development policies. The lack of capital available for investment within Alberta, and the reluctance of Canadian banks and investors to invest in Alberta, resulted in the need to attract foreign capital. This was particularly true in the development of the petroleum industry prior to the mid-seventies.
Historically, Alberta’s prosperity has been dependent on international market forces for the sale of its key commodities – grain and, since 1947, crude oil and natural gas. Recognizing the need for some diversification and a more balanced pattern of economic growth in all regions of the province, the Government of Alberta, since 1972, has fostered an environment which has encouraged the private sector to build upon the province’s strengths. A number of policy measures have been initiated which have provided the foundation for private sector initiatives and have reduced impediments to economic development. The basis for future development and growth has been laid.
Much of Alberta’s current economic strength is dependent upon depleting natural resources. A unique challenge of the provincial government was to ensure that the income derived from the sale of these resources was equitably shared between present and future generations. In 1976, Alberta created the Alberta Heritage Savings Trust Fund to set aside a portion of resource revenues so that future generations of Albertans also could benefit from these resources. Its policy measures have included a “savings trust” philosophy, which has assisted in establishing an attractive investment climate and a mood of confidence regarding Alberta’s economic opportunities.
Other policy measures and initiatives introduced by the Government of Alberta include:
• extensive trade promotion efforts both to assist Alberta industry in penetrating world markets, especially in the Pacific Rim, and to encourage investment in Alberta;
• support of research and development through such agencies as the
Alberta Research Council, the Alberta Oil Sands Technology and Research Authority, the Food Processing Development Centre, and the Farming for the Future programme;
• stimulation of the growth of a scientific and academic community through the Alberta Heritage Scholarship Fund and the Alberta Heritage Foundation for Medical Research Endowment Fund;
• investment in the transportation system, such as purchasing grain hopper cars and inland terminals, supporting the development of port facilities in Prince Rupert and Vancouver, and expanding road and airport facilities;
• investment in the improvement and expansion of the irrigation system;
• investment in enhancing and renewing the forestry resource;
• establishment of recreational areas; and
• expansion of available capital through the Alberta Opportunity Company, Alberta Agricultural Development Corporation, Alberta Home Mortgage Corporation, and Vencap Equities Limited. The private sector has responded to this climate for investment. It was instrumental in developing a petrochemical industry in Alberta, expanding the production mid processing of forestry and petroleum products, bolstering the food processing industry, fostering a growing financial sector within the province, and enlarging the tourism sector. These successes provide a foundation upon which Albertans can build for the future. In order to realize fully our potential, however, greater efforts must be made to upgrade our resources within the province and to strengthen and expand our markets.
Read the PDF below