1867 - Present

Economy and Development: The contemporary Period

Confederation and the National Policy

The development of the Dominion of Canada is based on industrialization and the expansion of the territory to the west.

The purpose of the National Policy (1879) is to develop railway networks, introduce protectionist policies and increase immigration.

National Policy

More railroads = greater connections between cities and natural resources, the cheaper transfer of goods and people

Increased immigration = larger number of people to buy Canadian products

Protectionist policies = supporting Canadian businesses by making foreign products more expensive.

Proposed Routes for Railroads

Second Phase of Industrialization

The Federal Government had been giving land away for very cheap to people in the West to encourage farming of wheat.

Thanks to the National Policy, a second phase of industrialization began from 1900-1929. This was encouraged by:

The increase in production and exporting of wheat

Foreign investment in natural resource industriesBusinesses supplying the army during WWI,

modernization of factories.

Second Phase of Industrialization

Creation of Hydroelectricity helped grow industrial sectors in Quebec.

Industrialization created disparities between social classes. Particularly, between industrialists (factory owners) and the workers.

Workers form Labour organizations (unions) to fight for better working conditions and pay

Specialized production (using technology to improve efficiency) helped grow the dairy industry from 1880. Farmers made butter, cheese, milk, and cream.

Hugh Allan

Hugh Allan: Ravenscrag

Lady Allan’s Card Party

Working class home in St. Henri

Working class home

The Great Depression and the Impact of WWII

To reduce the gap between the rich and poor because of the depression of the 1930’s, governments became more involved in the economy.

WWII helped bring Canada out of the Great Depression because of it meant factories were hiring to produce supplies for the war effort.

There was a period prosperity following WWII and the purchasing power of the population increased which created a consumer society.

American entrepreneurs invested capital into industries that exploited natural resources.

Exploitation of the resources allowed development of new cities in Northern Quebec.

Public Investments in the 1960’s and 1970’s

The Quiet Revolution of the 1960’s is symbolized by the nationalization of electricity (Hydro Quebec). This allowed Quebec to control a key sector of their economy. This is the beginning of the welfare state in Quebec.

New infrastructures and public institutions allowed for the emergence of a new Francophone elite. These included the creation of Ministry of Education, CEGEP’s, and the Caisse Desjardins which helped grow companies like Bombardier and Lavalin.

The Tertiary sector (service sector) became increasingly important in Quebec and Canada.

Recessions and Recoveries since the 1980’s

In the late 1970’s, the Western world experiences an economic slowdown ( a recession).

In the 1980’s and 90’s. governments reacted to the slowdown by reducing their expenditures.

Canada signs a series of Free Trade Agreements with the United States (NAFTA in 1994)and other foreign countries.

Quebec’s economy shifts away from primary (Ex: mining) and secondary (ex: factories producing goods) and more towards the tertiary sector (ex: financial services)

Ubisoft Building in Mile End: former textile factory

Northern Electric Building

Building artillery shells during WWII at Northern Electric

Red Path Lofts on Lachine Canal: used to be sugar refinery