Strategic Context
Planning Context and Key Strategic Issues
The planning context section identifies and documents the ministry’s opportunities and challenges that are likely to have an impact on the ministry’s planning in the next three years.
Key Opportunities
Asia-Pacific: British Columbia is Canada’s gateway to the growing Asia-Pacific region. Establishing British Columbia as the pre-eminent trade and cultural hub between Asia and North America (which includes trade, commerce, education, transportation, immigration, innovation and culture) will ensure all British Columbians benefit from our growing relationship with and proximity to the Asia-Pacific.
Economic Expansion: B.C. emerged as an economic leader in Canada over the past year. B.C.’s real GDP grew 3.8 per cent, stronger than the 3.3 per cent expected at the start of last year, according to B.C.’s independent economic forecast council. The Council now expects the strong economic performance to continue in B.C., with growth of 3.6 per cent expected for 2006. Further information on the B.C. outlook may be found in the Budget and Three Year Fiscal Plan released with the budget
New Relationship with First Nations: In November 2005, the Province signed a historic agreement with First Nations and the federal government to work together to close the social and economic gap between First Nations and other British Columbians, reconcile Aboriginal rights and title with those of the Crown, and establish a new relationship based on mutual respect and recognition. This will include the creation of new opportunities for Aboriginal participation in the British Columbia economy.
2010 Olympic and Paralympic Winter Games: The 2010 Winter Games create the opportunity for unparalleled international exposure for British Columbia and will open up new opportunities for investment and business development. In addition, infrastructure investments leading up to the Games will give a significant boost to the provincial economy.
Key Challenges
Export Growth Remains Strongly Rooted in the Resource Industries: British Columbia has made progress towards diversifying its economy. The high-tech industries account for 3 per cent of provincial GDP. Several world-class industry clusters are flourishing and opportunities for international trade are occurring in a wide range of sectors. Nonetheless, 80 per cent of British Columbia exports, 69 per cent of manufacturing shipments and 63 per cent of exports to other provinces are resource-based.
Productivity: A key factor to improving living standards is increasing productivity, generally measured by output per worker, per hour. Improvements to productivity in British Columbia have generally lagged that of other Canadian provinces and American states. Improvements in productivity would fuel economic growth and raise British Columbia’s standard of living.
Demographics and Skill Shortages: British Columbia’s robust economic growth and record low unemployment rate have increased the shortage of highly skilled people that businesses need to grow and expand. Immigration is now the key source of labour force growth in British Columbia. Initiatives and programs that focus on ensuring the availability of a skilled workforce are necessary to meet the demands of British Columbia’s growing economy.
Mountain Pine Beetle: As of fall 2005, the mountain pine beetle has affected 8.5 million hectares of British Columbia forests. While increased harvesting is creating economic growth in the short-term, the Mountain Pine Beetle presents a major long-term challenge for many communities in various regions of the Province. Many of these communities have begun planning for a transition stage and the province is working with them to help examine their potential for developing other economic opportunities.
