Neo-Liberal Arguments for "Ensuring a Resilient Economy"Dr. Richard Florizone is president and CEO of the International Institute for Sustainable Development and one of the heads of the Task Force for a Resilient Recovery, which describes itself as "an independent and diverse group of Canadian finance, policy and sustainability leaders determined to make sure Canada seizes this opportunity." Dr. Florizone says that "Ensuring a resilient recovery is not just a question of what's good for the economy or what's good for the environment. It is now an issue of national competitiveness." He argues the case as follows in an article published by the Ottawa Citizen on August 24: The idea that stimulus spending should drive a green, resilient recovery has wrongly become a partisan issue in this country, apparently playing a role in the departure of Bill Morneau as finance minister on one side and highlighting the lack of strong Conservative leadership on climate on the other. Ensuring a resilient recovery is not just a question of what's good for the economy or what's good for the environment. It is now an issue of national competitiveness. Leaders around the globe and across the political spectrum are making historic commitments to build a low-carbon future, rejecting the false compromise between economic growth and climate action. The scale of investment and economic change around the world illustrates the urgency with which Canada needs to lift its eyes to this horizon and move forward with the best Canadian ideas, informed by fast-moving global trends. Of course we need recovery plans that are focused on our own country -- addressing first and foremost the needs of Canadians most impacted by the pandemic. But if we, and our political leaders, don't pay attention to these broader global efforts, we risk falling behind. The roadmap for Chrystia Freeland as our next finance minister is clear, drawing on her international and economic perspective as a former minister of Foreign Affairs and International Trade. A good start is looking to the examples coming out of Europe. In July, the European Union agreed that at least 30 per cent of its €1.8 trillion multi-year budget and COVID-19 recovery fund would target climate objectives. That historic commitment is further supported by national and regional investment, including more than €40 billion in green stimulus in France and Germany, respectively. These are massive investments. To put them in a Canadian context, they represent around CAD$2,000 per capita, or a total expenditure of CAD$75 billion for our nation. That equates to nearly a quarter of the federal budget in 2019, though the spending will take place over three to seven years. Much of the planned spending aligns with recent academic research by Nobel laureate Joseph Stiglitz and others on measures that quickly yield the best economic and environmental outcomes, including building efficiency retrofits, clean energy infrastructure, and investments in nature. Governments are also investing in cleaner and more efficient transportation. Many Canadians will be surprised to learn that conservative governments are leading some of these programs. For instance, in the United Kingdom, Boris Johnson's government recently announced billions in new investment towards building retrofits, public transit, and walking and cycling infrastructure. These investments build on that country's decision to ban future sales of gasoline and diesel-fuelled passenger cars -- a decision the Conservative government accelerated last year, moving its implementation from 2040 to 2035. That decision is part of a broader global trend; according to the International Energy Agency, 17 other countries have announced similar bans on future sales of vehicles powered by fossil fuels, some taking effect as soon as 2025. In sharp contrast, Canada's approach to climate and green recovery is heavily politicized. As we quibble over domestic politics, we run the risk of eroding Canada's national competitiveness -- a topic that should be of utmost concern for all political parties. Case in point: Germany announced a €7 billion Hydrogen Strategy, which aims to use hydrogen as a storage medium for renewable energies. According to the Eurasia Group, 18 other nations (comprising 75 per cent of global GDP) are now rolling out similar hydrogen strategies. Canada has yet to determine its response, and that's a risk. In the U.S., meanwhile, should Joe Biden win the upcoming presidential election, our most important trading partner will move forward with a USD$2 trillion green stimulus plan. Canada can either prosper from this or lose ground in the American market. So, how will Canada respond to these historic, global changes? How will leaders -- across the political spectrum -- ensure our automotive, energy and other industries survive and thrive? Simply taking a side on lightning rod issues like carbon taxes will not be enough to address these global developments, and Canada will suffer if we continue to focus on old and divisive debates while ignoring global trends. Canadians of all political stripes must work towards a recovery that builds back better. It's a global race to respond to the pandemic and ensure a resilient recovery that is positive for the economy and environment. But it's also about Canada's industrial competitiveness, supporting the jobs, infrastructure and growth for the future. In building the clean economy of the 21st century, will Canada lead, lag or be left behind?
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