CANADA – “we are not colder, we are cooler..”

by – Rahil AhamedRahul Talukdar

CURRENCY OF CANADA

• The Canadian dollar (symbol: $ code: CAD) is the currency of Canada.

• Canada's dollar is the 5th most held reserve currency in the world, accounting for approximately 2% of all global reserves, behind only the U.S. dollar, the euro, the yen and the pound sterling.

CAPITAL, IMPORTANT CITIES, PLACES OF REPUTE

OTTAWA- CAPITAL OF CANADA

CALGERY, ALBERTA

EDMONTON, ALBERTA

HAMILTON, ONTARIO

KITCHENER, ONTARIO

MONTREAL, QUEBEC

QUEBEC CITY, QUEBEC

TORONTO, ONTARIO

IIMPORTANT CI TIES

BAFFIN ISLANDPLACES

OF

REPUTE

BAY OF FUNDY

CN TOWER

NIAGARA FALLS

OLD TOWN OF QUEBEC

STREETS OF LUNENBERG

FORTRESS OF LOUISBOURG

PERCE ROCKS

AREA, RESOURCES, IMPORTANT SECTORS CONTRIBUTING TO THE GDP, BALANCE OF PAYMENT, BORROWINGS FROM OTHER COUNTRIES / BANKS

AREA 9,984,670 km2 (2nd)3,854,085 sq. mi

RESOURECS • COAL• CRUDE PETROLEUM • FUEL OILS• IRON ORES AND CONCENTRATES • WHEAT• STONE SAND • GRAVEL • CRUSHED STONE

TOP PRODUCTS EXPORTED • CARS (17%)• PLANES, HELICOPTERS,

SPACECRAFT (2.6%)• COAL BRIQUETTES (2.4%), • POTASSIC FERTILIZERS (2.3%)• AND WHEAT (2.2%)

TOP PRODUCTS IMPORTED • CARS (7.4%)• CRUDE PETROLEUM (4.4%)• DELIVERY TRUCKS (3.7%)• COMPUTERS (2.9%)• GOLD (2.8%)

OFFICIAL LANGUAGES • ENGLISH • FRENCH

GOVERNMENT CONSTITUTIONAL MONARCHY-MONARCH –QUEEN ELIZABETH II

POPULATION (2011) 33,476,688 (4TH LARGEST)

ECONOMIC DIVERSITY: 2014

Canada is ranked 35 with an Economic Complexity Index (ECI) of 0.86919

2010 2011 2012 2013 2014

1.2 0.8 0.7 0.6 0.6

BANK NON PERFORMING LOANS TO TOTAL GROSS LOANS(%)

The quarterly balance of payments is published in accordance with the revision policy of the Canadian System of National Economic Accounts

Year 2008 2009 2010 2011 2012 2013

Total current account

1,908 -45,750 -58,419 -48,466 -62,215 -60,287

Goods and

services

28,466 -23,010 -31,604 -21,866 -36,221 -31,702

Goods 43,670 -6,773 -9,703 753 -12,016 -7,287

Services -15,204 -16,237 -21,900 -22,618 -24,205 -24,415

Travel -12,101 -11,998 -14,317 -16,351 -17,643 -17,960

Transportation -9,436 -8,452 -9,452 -10,086 -10,188 -10,147

Commercial

services

5,694 3,496 1,424 3,554 3,350 3,576

Government

services

639 716 439 289 416 116

Primary income -25,944 -20,151 -23,499 -23,117 -22,448 -26,225

Secondary

income

-613 -2,589 -3,316 -3,483 -3,546 -2,360

THE POLITICAL SYSTEM

SENATE• 105 MEMBERS APPOINTED

BY THE PRIME MINISTER WHO MAY SERVE UPTO THE AGE OF 75

HOUSE OF COMMONS• 301 MEMBERS ELECTED

FOR UPTO 5 YEARS

THE POSITIVE OUTCOMES BECAUSE OF THAT POLITICAL SYSTEM IN THAT COUNTRY

Canada's electoral system is referred to as a "single-member plurality" or "first-past-the-post"

It provides a clear-cut choice for voters between two main parties.

It excludes extremist parties from representation in the legislature. Unless an extremist minority party’s electoral support is geographically concentrated, it is unlikely to

win any seats under FPTP.

THE PROBLEMS / CHALLENGES / LIMITATIONS FACED BY THE COUNTRY BECAUSE OF THAT POLITICAL SYSTEM Representatives can get elected with small amounts of public support, as the size of

the winning margin is irrelevant: what matters is only that they get more votes than other candidates.

Having small constituencies often leads to a proliferation of safe seats, where the same party is all but guaranteed re-election at each election. This not only effectively disenfranchises a region’s voters, but it leads to these areas being ignored when it comes to framing policy.

It leaves a large number of wasted votes which do not go towards the election of any candidate. This can be particularly dangerous if combined with regional fiefdoms, because minority party supporters in the region may begin to feel that they have no realistic hope of ever electing a candidate of their choice. It can also be dangerous where alienation from the political system increases the likelihood that extremists will

be able to mobilize anti-system movements.

REMARKABLE ECONOMIC DEVELOPMENTS ACHIEVEMENTS BY THAT POLITICAL SYSTEM

The Economic Development Agency of Canada for the Regions of Quebec, is a Federal agency that has the responsibility of promoting economic expansion in Quebec by promoting small or medium-sized enterprises. Under its Act, which came into effect on October 5, 2005, the object of the Agency is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or opportunities for productive employment are inadequate.

Atlantic Canada Opportunities Agency, is the Canadian federal government agency responsible for helping to build economic capacity in the Atlantic Provinces by working with the people of the region – in their communities, through their institutions and with their local and provincial governments and businesses – to create jobs and enhance earned incomes. Planned spending for 2014-2015 consists of $165 million for enterprise development, $87M for community development, $25M for internal services and $11M for policy, advocacy and coordination.

The Federal Economic Development Initiative for Northern Ontario (or FedNor) ,is a program of Industry Canada whose mission is to address the economic development, diversification and job creation in Northern Ontario. FedNor especially aids women, Franco-Ontarians, youth, and Aboriginal peoples in Ontario. While a lot of progress has been made in achieving FedNor'sobjectives, communities in Northern and rural Ontario continue to face the ongoing structural challenges that necessitate a stable, long-term regional development effort.

Western Economic Diversification Canada (WD), is a Canadian federal department that works towards building strong, competitive and innovative businesses and communities in Western Canada. Their main priorities focus on community economic development; trade and investment; innovation; and business development.

INDIA- CANADA TRADING RELATIONSHIPS Canada and India enjoy a prosperous trading relationship.

Since 2004, despite the Late-2000s recession, trade has increased by over 70%.

In 2009, Canadian exports to India totalled C$2.1 billion, while in the same year Canadian imports from India totalled C$2.0 billion, giving Canada a C$ 100 million trade surplus.

Canada and India are currently holding negotiations on the Comprehensive Economic Partnership Agreement (CEPA) to improve the trade relations between the two countries.

CEPA is signed in the year 2013.

India celebrated the year 2012 as year of India in Canada to promote business, cultural and political relations with India.

In the year 2010 from January to July, India's total exports to Canada was $ 1097 Million and import from Canada was $ 1113 Million.

In the year 2011 from January to July India's Exports to Canada was $1483 Million

and Import from India was $ 1197 Million.

INDO-CANADA BUSINESS RELATIONSHIP The Indo-Canada Chamber of Commerce (ICCC) headed the trade mission, which provided an

opportunity to Canadian small businesses to explore the Indian market. Delegates actively participated in the Business Leaders’ Summit in Mumbai, Pravasi Bharatiya Divas (PBD) in Kochi, and the Vibrant Gujarat Convention in Gandhinagar, where Canada was declared the partner country and ICCC was the partner organization.

The delegation focused on food processing, hospitality, travel and tourism, construction and development, information technology, and the service sector.

ICCC has a vested interest in promoting the role of SMBs in bilateral economic relations between Canada and India. Over the years, the chamber has provided valuable networking opportunities to interested businesses from India and it organizes more than 80 annual events across Canada. The 35-year-old Toronto-based organization is the largest institution with membership comprised of Canadians of Indian origin.

In Canada, SMBs account for 45 per cent of GDP, 75 per cent of net employment growth, and 60 per cent of all jobs, with a commanding share of exports in agriculture, forestry, transportation, and construction – at present these are largely directed to the region covered by the North American Free Trade Agreement (NAFTA). SMB figures from India are equally impressive, accounting for 20 per cent of India's GDP, 65 million jobs and 45 per cent of manufacturing and exports.

IMPORT EXPORT STATISTICSTop 5 Canadian Exports to India, 2013

Commodity Cdn $Millions Share of Total

Leguminous vegetables, dried and shelled $726.3 27%

Mineral or chemical fertilizers, potassic $304.5 11%

Newsprint, in rolls or sheets $221.1 8%

Copper ores and concentrates $205.3 7%

Coal and solid fuels manufactured from coal $182.9 7%

Total $2,740.7 100%

Top 5 Canadian Imports from India, 2013

Commodity Cdn $Millions Share of Total

Medicaments, put up in measured

doses or packed for retail use $166.6 6%

Petroleum oils and oils obtained from

bituminous minerals other than crude $165.5 6%

Articles of jewelry $123.3 4%

Linen $112. 4 4%

Diamonds $101.2 3%

Total $2,975.7 100%

PRE-HARPER FREE TRADE DEALS

SUGGESTIONS FOR ECONOMIC PROSPERITY OF CANADA

Build critical infrastructure

Ottawa has been on an infrastructure binge since 2007, spending roughly $33-billion. But it’s still not enough. From crumbling bridges and choked roads to inadequate public transit, the needs outstrip available funds. Canada also needs new bridges, ports and pipelines to get its resources to buyers in increasingly distant markets.

Ottawa recently reached out to the provinces and Canadian municipalities to renew its existing infrastructure spending arrangements, which expired in 2014. It’s also committed to handing over at least $2-billion a year of federal gasoline tax revenue to municipalities.

Cities and provinces will have to find new funding sources.

Unleash the innovation potential of Canadian companies

Of all the challenges facing the Canadian economy, this could prove to be the most intractable.

Research and development is one of the keys to making the economy more productive and wealthier, and Canadian companies do far too little of it. In spite of generous tax incentives, Canada has been falling steadily behind other developed countries. Canada spends 1 per cent of GDP on business R&D, compared to 1.6 per cent among wealthy countries, and spending is now lower than in 2006.

Stephen Harper says he’ll embrace some of the recommendations of a recent federal R&D expert panel, which urged scaling back tax breaks in favor of more direct spending.

The key now will be to reinvest the savings more productively. Otherwise, the R&D gap between Canada and its main rivals will continue to grow.