Economic Change in Saskatchewan

Economic Growth Economic Change in Saskatchewan "If there were a change in Saskatchewan's economic circumstances from one of "boom" to one of "normal" or "bust," which current areas of government activity would you expect to be affected by this change, and, what would you expect the government's policy response to be to adapt to these new economic conditions?" Currently, Saskatchewan was seen significant and rapid development in economic activity.

The province has been able to take advantage of the rich supply of natural resources and exports many commodities to global markets. Much of the growth that the area has experienced can be attributed to the growth of potash and oil. However, these resources may not sustain the levels of economic growth that the region has experienced indefinitely. If Saskatchewan does not work to diversify its economy then the economic boom that it has experienced could slowly dwindle away.

Furthermore, if this is the case, the government will have to adapt their policy to a new set of economic conditions. This analysis will provide a brief background of the issue as well as what a policy response from the government might look like under a different set of economic conditions. Discussion The rate of job growth in Saskatchewan has increased at an unprecedented rate.

Through the first nine months of 2013 the number of people working in Saskatchewan rose by over twenty thousand compared to 2012 and unemployment was estimated at 4.3 per cent, the lowest in Canada for the ninth consecutive month (Government of Saskatchewan, N.d.). This rate of growth has prompted the government to respond to a new set of challenges. The province has invested in infrastructure, education, and increasing trade among others. The province is planning for a significant level of growth well into the future.

About 95% of all goods produced in the province directly depend on its basic resources (grains, livestock, oil and gas, potash, uranium and wood, and their refined products) (Government of Saskatchewan, N.d.). The province has an estimated 75% of the world's potash reserves, large deposits of high grade uranium, and large deposits of oil and natural gas. The extraction of these resources as attracted many workers and has fueled population growth over the last decade.

This has led the government to develop a plan to sustain this growth into the future that is referred to as the Vision 2020 and Beyond plan and advocates (The Institute of Certified Management Consultants of Saskatchewan, N.d.): • Increased investments in growth-enabling infrastructure; • Developing a more skilled workforce; • Enacting measures to increase the competitiveness of Saskatchewan's economy; • Increased trade, investment and exports through international engagement; • Advancing Saskatchewan's natural resource strengths through innovation, to build a Saskatchewan post-commodity-centric economy; and • Maintaining sound fiscal policies of balanced budgets, lower debt and smaller, effective government.

However, an economy that is dominated by the exportation of natural resources will ultimately run out of these resources or face increased competition from other markets that could make the extraction of these resources no longer viable financially. The challenge now is to move beyond a sole reliance on commodities to more "value-added" opportunities in order to sustain growth and diversify the economic opportunities that the province possesses (Craig, 2014). Although the province is rich with resources, there are many economic threats that it could face into the future.

If the province had a different set of economic circumstances then it would undoubtedly have to change its investment activities in such things as infrastructure development and education. Under the current tax system the province could not support these investments without growing economic activity and a growing population. It could increase revenues by raising taxes to.