Tag Archives: OECD

Threat to Prosperity: Canada Should Mind Business Investment Gap

August, 2022 – Business investment in Canada is so weak that capital per member of the labour force is falling, and the implications for incomes and competitiveness are ominous. Governments, particularly the federal government, need to get serious about growth to get workers more of the tools they require to compete and thrive, according to a new report from the C.D. Howe Institute.

In “Decapitalization: Weak Business Investment Threatens Canadian Prosperity”, authors William B.P. Robson and Mawakina Bafale write that since 2015 Canada’s stock of capital per available worker has been declining and its rate of gross investment per worker has been well below that in the United States and other OECD countries.

Capital= Business “bread and butter”

They examine why Canada might be lagging as well as what action to take.

“Business investment and productivity are closely related: productivity growth inspires investment by creating opportunities, and investment drives productivity growth by equipping workers with more and better tools,” says Robson. “Investment per available worker lower in Canada than abroad tells us that businesses see less opportunity in Canada, and prefigures weaker growth in Canadian earnings and living standards than in other OECD countries.”

New investment per available worker in Canada, adjusted for purchasing power, was only slightly above 50 cents for every dollar of investment per available United States worker in 2021 – lower than at any point since the beginning of the 1990s. In addition, in 2022, OECD projections show that Canadian workers will likely enjoy only 73 cents of new capital for every dollar enjoyed by their counterparts in the OECD excluding the US, according to Robson and Bafale.

The authors’ calculations from OECD projections for 2022 show $20,400 of new capital per available worker this year for OECD countries excluding the United States, compared to $14,800 for Canada.

In other words, new capital per available worker in Canada will be more than one-quarter less than in those countries this year.

Declines in the stock of machinery and equipment (M&E) and intellectual property (IPP) per member of the workforce are particularly worrisome, the authors explain, because those types of capital may be particularly important for economy-wide productivity. “Whatever special messages the recent M&E and IPP numbers may convey, the message from stocks of business capital overall is clear: the average member of Canada’s labour force began 2022 with less capital to work with than she or he had in 2014,” says Bafale.

Robson and Bafale identify a few probable causes for Canada’s dismal investment performance. These include: weak business in the natural resource industries; restricted access to finance for small and mid-size firms; a loss in Canada’s competitive edge in business taxation, notably against the United States; an uncongenial environment for IP investment; regulatory uncertainly; unpredictable fiscal policy; and governments’ in-house spending and transfers to households that are steering resources into consumption and housing rather than non-residential investment.

Is business investment capital trajectory predetermined?

“The prospect that Canadians will find themselves increasingly relegated to lower value-added activities relative to workers in the United States and elsewhere, who are raising their productivity and earnings faster, should spur Canadian policymakers to action,” conclude Robson and Bafale. “The first step is to recognize that recent trends are a symptom of threats to Canada’s prosperity and competitiveness – that low business investment is a problem that governments can and should address.”

Supplemental- Are you a small Canadian business frustrated with the difficulties involved in accessing capital? For example, our experience has shown that the multitude of Business Development Corporations operate with autonomy but without accountability, poor vision and nepotism. Essentially, gleaning business plans and strategies before revealing ‘jump through these application hoops” which include personal finance and personal life details. It is sobering to discover that they also receive a hefty commission % for every applicant they ‘certify as successful’. Do you agree or have you had a more positive experience? We want to hear from you in the comments below.

Renewable Energy Outlook for 2040 Includes Cancelling Your Print Newspapers

Hey Silo readers! This infographic courtesy of FuelFighterUK demonstrates how production could look in 2040 and what is being done to make our world a greener place. The infographic covers the projected worldwide growth in energy demand, what is being invested to change the renewable outlook and some awesome eco-friendly innovations that have been made by technology companies. For the Silo, Louis Dixon


Energy Outlook For 2040 Infographic 

Peter Robinson On Job Obsolescence- Government Should Not Protect Jobs

A recent OECD report finds that low and middle income earners have seen their wages stagnate and that the income share of middle-skilled jobs has fallen. Rising inequality has led to concerns that top earners are getting a disproportionate share of the gains from global “openness and interconnection”. During a Summer 2017 meeting of OECD, employment outlook revealed that job polarization has been “driven by pervasive and skill-biased technological changes.

Founded in 1945, the United States Council for International Business (USCIB) builds awareness among business executives, educators and policy makers around issues related to employment, workforce training and skills enhancement. CMRubinWorld spoke with USCIB President and CEO Peter M. Robinson, who serves as a co-chair of the B20 Employment and Education Task Force, through which he helped develop recommendations to the G20 leaders on training for the jobs of the future. Robinson also serves on the board of the International Organization of Employers, which represents the views of the business community in the International Labor Organization.

“I think the guiding principle for government should be to protect and enable/retrain the worker, not protect the job. Policy makers and educators should focus on making sure that workers are as equipped as possible to transition to new opportunities” Peter Robinson.

Peter, welcome. How severe do you believe jobsolescence will be over the next 20 years? How big will the challenge be to offset it and maintain a growing workforce?

I really don’t think the overall effect will be as dramatic as some people fear, at least for the medium-term as far as we can tell. There is an over-hype factor at play, but the consequences still deserve serious attention. For one thing, so many of the jobs in the United States, Canada and other advanced economies are in the service sector, and involve interacting with other people. Despite all the advances in AI, we are still a long way off from robotic nurses or home health aides. Overall, history tells us that at least as many new jobs are created as are displaced by technological innovation, even though transitions can be difficult in some sectors and localities, and as long as upskilling takes place.

“The biggest threat is that our educational institutions won’t be able to keep pace with new skills demands.” — Peter Robinson

What do you think are the biggest obstacles facing college grads today trying to enter the workforce?

I actually think the greatest obstacles are faced by those who don’t make it to university or some form of higher education beyond high school (a four-year degree is not the right path for everyone). A 2014 Pew survey found that among workers age 25 to 32, median annual earnings of those with a college degree were $17,500 greater than for those with high school diplomas only. Obviously, everyone at whatever educational level needs to keep their skills sharp, and governments should join with employers and educators to instill better life-long learning. But there are far fewer established paths toward long-term employment at a middle-class level of income for those who don’t graduate from college. A greater emphasis on vocational education and apprenticeships would help. We strongly support the work being done by United States Secretary of Labor Acosta to promote apprenticeships.

Given that machines are in the process of stripping white collar workers from their jobs, what kind of skills are key manufacturing and service industries going to need from new employees?

I think the premise of your question is overstated. We’re all being told that our jobs are doomed by robots and automation. But the OECD estimates that only nine percent of jobs across the 35 OECD nations are at high risk of being automated, although of course even 9% can be generative of social difficulties. But there is an established track record across history of new technologies creating at least as many new jobs as they displace. Usually these new jobs demand higher skills and provide higher pay. The biggest threat is that our educational institutions won’t be able to keep pace with new skills demands.

“It is becoming clear that Versatility matters, in a constantly changing world, so Jim Spohrer’s IBM model of a “T-shaped” person holds true: broad and deep individuals capable of adapting and going where the demand lies.” — Peter Robinson

In an economy with a significant on-demand labor force, what competencies will these workers need to compete?

There are two types of competencies that will be needed: “technical” – or in other words, related to deep knowledge of a specific domain, whether welding or optogenetics; and “transversal,” which applies to all occupations. Those are described by the Center for Curriculum Redesign as skills (creativity, critical thinking, communication, collaboration), character (mindfulness, curiosity, courage, resilience, ethics, leadership) and meta-learning (growth mindset, metacognition).

How will managerial skill requirements change as a result of major structural changes that are likely, including human replacement by machines and growth of the on-demand economy?

OECD’s BIAC surveys of 50 employer organizations worldwide has shown that employers value not just Skills as described above, but also Character qualities as well. Further, it is becoming clear that Versatility matters, in a constantly changing world, so Jim Spohrer’s IBM model of a “T-shaped” person holds true: broad and deep individuals capable of adapting and going where the demand lies.

Canada Unemployment Rate By Provinces and Territories

“We often hear about the need for more STEM education. But I think there is an equal need for a greater emphasis on the humanities and the arts, for their intrinsic value as well as for developing skills and character qualities.” — Peter Robinson

What central changes in school curricula do you envision, both at the secondary school and college levels?

We often hear about the need for more STEM education. But I think there is an equal need for a greater emphasis on the humanities and the arts for their intrinsic value as well as for developing skills and character qualities as described above. As David Barnes of IBM wrote recently, these skills are more durable and are also a very good indicator of long-term success in employment.

How can the evolving changes in competencies required for employment be effectively translated into school curricula? Where are the main opportunities to enable this? e.g. Assessment systems? Business/Education collaboration? Curriculum change?

I’d go back to something else David Barnes said: We need much stronger connections between education and the job market, in the form of more partnerships among employers, governments and education institutions. Everyone needs to step up and create true partnerships. No one sector of society can address this alone. OECD’s BIAC has also documented employers’ wishes for deep curricular reforms to modernize content and embed competencies in order to meet today’s market needs.

What role should government play in ensuring citizens receive a quality and relevant education given the challenges that lie ahead?

I think the guiding principle for government should be to protect and enable/retrain the worker, not protect the job. Policy makers and educators should focus on making sure that workers are as equipped as possible to transition to new opportunities as these develop, and on ensuring that businesses have the freedom to pivot and adopt new technologies and business processes.

CMRubinWorld For the Silo, C.M. Rubin.  C. M. Rubin is the author of two widely read online series for which she received a 2011 Upton Sinclair award, “The Global Search for Education” and “How Will We Read?” She is also the author of three bestselling books, including The Real Alice in Wonderland, is the publisher of CMRubinWorld and is a Disruptor Foundation Fellow.

United Nations Sustainable Development Goals Are Shared Vision Of Humanity

A few years ago, in September 2015, 193 countries signed up to support the UN’s 17 sustainable development goals for our planet and the people that live on it. The all-encompassing plan included promises to end poverty, feed everyone, create stability and peace, provide quality education and protect the future of our world. Every man, woman and child on the planet were invited to play their part to turn 17 goals into action and the promises into reality.

Goal 4 promised to achieve inclusive and equitable quality education for all. “OECD countries have generally been successful in guaranteeing adequate infrastructure and near-universal access to basic education,” says Andreas Schleicher, Director for Education and Skills at the OECD. But he notes that participation in education is not enough “to ensure the knowledge, competence, skills and attitudes that are necessary to increase individuals’ well-being and the prosperity of modern societies.” He adds that the OECD’s programs have a key role to play “in the achievement of – and measuring progress towards – SDG 4 and its targets, as well as other education-related SDG targets.”

Richard Branson Save Our Oceans

“Just because poverty or pollution or climate change happen in another country far away, that does not mean that we are not part of the cause of these problems and their necessary solution.” — Thomas Gass
Since September 2015, education leaders and other influencers around the world have encouraged schools to promote all the goals. We’ve talked to teachers that acknowledge there’s nothing like real world challenges and case studies which allow students to apply the knowledge skills and dispositions they will need to succeed in an interconnected world.

How are we all doing so far? What have leaders learned from the implementation journey, and as a new school year begins, how can we build on those lessons to improve our efforts to achieve our planet’s plan moving forward?

Thomas Gass was appointed by the UN Secretary-General as Assistant Secretary-General for Policy Coordination and Inter-Agency Affairs in UN DESA and he took office on 3 September 2013. The Global Search for Education welcomes Thomas Gass.

Educators Have Sustainability Role

“Educators have an essential role in making sure the SDGs become a real social contract with the people.” — Thomas Gass

Thomas, please share one or two of the most important lessons you have personally learned spearheading the SDG’s implementation process thus far? It’s simple: The SDG’s are not a run-off-the-mill development strategy for big international organisations to fix the problems in the South… The SDGs are a shared vision of humanity – they are the missing (vision) piece of our globalization puzzle! This means that they can only be implemented if everyone is involved: Governments of course, but also municipalities, private companies, schools and universities, local organisations and individuals – everyone. Now, that can only happen if the people know about them… So mobilization and advocacy are crucial. The SDGs must become a new social contract between leaders and the people.

Leaders agreed that we must change the way we deal with the weakest among us, i.e. that we take the greatest care of those who are weak. What more would you ask of the leaders of rich and poor countries in terms of being good role models for this important part of the vision?

The promise to leave no one behind is the most difficult commitment of this new social contract. It requires that we all seek to understand who the most vulnerable people are and what risks they face, and then systematically empower these people and build their resilience. Political as well as economic leaders need to understand that sustainability has been redefined: If a significant economic or social group is left behind, our development is not sustainable. By the same token, we are fooling ourselves if we think that any single country or private company can be “sustainable” by itself. The SDGs demand that we are honest with ourselves about our ecological and social footprint! Just because poverty or pollution or climate change happen in another country far away, that does not mean that we are not part of the cause of these problems and their necessary solution.

United Nations Global Goals

“Know your #SDGs/#GlobalGoals and hold adults and leaders accountable for them, push back if they try to make you believe that your country, language, tribe or family is greater or more deserving than the others, and look for opportunities to make a difference yourselves.” — Thomas Gass

What more would you ask of educators in the work that lies ahead?

Educators have an essential role in making sure the SDGs become a real social contract with the people. I have the highest esteem for those committed educators who are bringing the SDGs into the classrooms, and educating younger generations to become global citizens. I firmly believe that this can be done as part of any teaching subject or class. I encourage all educators to join movements and co-create resources such as teachsdgs.org, GCEDclearinghouse.org, etc., and to encourage OECD/PISA to align their Global Competency criteria to the SDGs by 2018.

And finally, perhaps most important – what is your message to youth for the school year ahead on their part in the planet’s plan?

C.M. RubinHere is my message: This world is your world to share and enjoy. As Mahatma Gandhi said: “The world has enough for everyone’s need, but not enough for everyone’s greed.” Know your #SDGs/#GlobalGoals and hold adults and leaders accountable for them, push back if they try to make you believe that your country, language, tribe or family is greater or more deserving than the others, and look for opportunities to make a difference yourselves. Thank you Thomas.  For the Silo, C. M. Rubin.

Supplemental- Is Canada following United Nations Global Sustainable Development Goals?  

Global Search for Education

Best Countries In Which To Be A Doctor

Working abroad is an exciting and appealing prospect, but for the medical field there are differences that are worth considering. This infographic compares the top 5 countries in which to be a Doctor and looks at the cost of living as well as the quality of life to be found there.
It’s important to make a well-informed decision if you choose to work in another country and this infographic is a fun and helpful place to start. *quoted funds are in US dollars.

Brought to you by our friends at Gap Medics, the world’s leading provider of hospital work experience placements for school and university students.

havemeddegreewilltravelinfographic2