Strategic Context

The Strategic Context section identifies and documents the Ministry's key issues, opportunities and challenges that are likely to have an impact on its 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. Asia's dramatic demographic changes have created a demand for not only our traditional resource products, but also new products and services in areas such as urban infrastructure design, planning and development; engineering; clean technology; health care; and tourism — all areas where British Columbia has expertise and competitive advantage.

Economic Expansion: According to B.C.'s independent Economic Forecast Council, the B.C. economy grew 4.0 per cent in 2006, stronger than the 3.6 per cent expected at the start of the year. B.C.'s economic growth is expected to ease somewhat, but remain strong for 2007 through 2011. The Council's average forecast called for growth of 3.4 per cent in 2007. Further information on the B.C. outlook may be found in the Budget and Three Year Fiscal Plan released with the budget.

Labour Market and Trade: New trade and investment opportunities and implementation of provincial initiatives aimed at labour markets, the workforce and the economy will advance the growth of skilled, diversified and well-paying jobs for British Columbians. Immigration is a key source of labour force growth in British Columbia and building on the objectives implemented to date by government ensure conditions are in place to support continued provincial economic growth. The broadly recognized success of the British Columbia-Alberta Trade, Investment and Labour Mobility Agreement encourages other provinces, territories and the federal government to build more open and competitive markets for the benefit of all consumers, workers, businesses and investors.

New Relationship: The Government of British Columbia is leading the nation in developing a New Relationship with First Nations and Aboriginal people. Guided by principles of trust, and by recognition and respect of First Nations' rights and title, we are building a stronger and healthier relationship between government and Aboriginal people. By working together, we will bring tangible social and economic benefits to Aboriginal people across the Province and narrow the gap between Aboriginal people and other British Columbians.

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. The province is maximizing these opportunities internationally and creating programs so businesses can take advantage as B.C. prepares to host the 2010 Olympic and Paralympic Winter Games. In addition, infrastructure investments leading up to the Games will give a significant boost to the provincial economy.

Research and Innovation: The Ministry participates on the Interministry Research and Innovation Committee, led by the Ministry of Advanced Education. The committee serves to enhance linkages and communication about key research and innovation initiatives among ministries.

Key Challenges

Export Growth Strongly Rooted in Resource Industries: Approximately 80 per cent of B.C. goods exports, 66 per cent of manufacturing shipments and 69 per cent of goods exported to other provinces are resource based. However, the B.C. economy continues to diversify. High tech industries now account for over five per cent of provincial GDP and services make up to close to 75 per cent of the economy. Several world-class industry clusters are flourishing and opportunities for international trade are occurring in a wide range of sectors. Growth in export diversity will help balance the strong cyclical forces common in resource industries.

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 B.C.'s standard of living.

Demographics and Skill Shortages: British Columbia's robust economic growth and record high employment 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 B.C. Initiatives and programs that focus on ensuring the availability of a skilled workforce are necessary to meet the demands of the province's growing economy.

Mountain Pine Beetle: Projections indicate the mountain pine beetle infestation could kill 80 per cent of the pine forest in British Columbia by 2013. Pine forests dominate the interior of B.C., and their loss has significant implications to the forest environment, economy and the communities that depend on those forests for sustainability. The B.C. Government, through coordination by the Ministry of Forests and Range and the Provincial Mountain Pine Beetle Action Plan, is working across a number of ministries to minimize and mitigate negative environmental and socio-economic impacts of the infestation, while recovering the greatest value and protecting public health, safety and infrastructure.