Cities Key to Growing Saskatchewan - U of S Public Policy Brief

Posted January 13, 2006


FOR IMMEDIATE RELEASE - Friday, January 13, 2006 2006-01-04-OTHER

Cities Key to Growing Saskatchewan - U of S Public Policy Brief

Growing Saskatchewan's urban centres is the best potential source of
economic growth and prosperity for the province, says a new University of
Saskatchewan public policy brief aimed at improving government planning.

"Saskatchewan is clearly not holding its own in the national context,
suggesting the need for urgent changes," state agricultural economists Rose
Olfert, Murray Fulton, and Mark Partridge (U of S Canada Research Chair in
the New Rural Economy) in Growing Saskatchewan in an Urban Age.

"Our engines of growth -- our nine urban centres -- are collectively
struggling and rural Saskatchewan is in serious decline."

Their research shows that Canadian cities with more than 500,000 people are
not only self-sustaining engines of growth, but these "mega-centres" also
support the growth and vitality of the smaller urban centres and rural
communities around them.

If Saskatchewan continues on its current trajectory without recognizing the
power of the city in the 21st century, it could have dire long-term
consequences for the province, the authors warn.

"Our future depends on acknowledging who, where and what we are and building
on the opportunities that are available to us," they say, noting that
Saskatchewan enjoys a relatively well-educated labour force, has abundant
natural resources, and borders on the world's largest market. Growing
Saskatchewan's urban centres is dependent on supporting these growth points.

Among the province's challenges are "small population, long-run declines in
agricultural and natural resource employment, and our business environment
relative to neighbouring Alberta."

To prosper, the authors say Saskatchewan must improve transportation access
to the lucrative U.S. market, create a more competitive business climate,
and enhance quality-of-life urban amenities that attract and retain people.

Saskatchewan tax rates relative to other Canadian provinces, especially
neighbouring Alberta, as well as U.S. states, should be competitive to make
Saskatchewan an attractive location for investment and growth. This extends
to both personal and business tax structures.

Cities offer urban amenities such as public services and private or
semi-private facilities such as recreation venues, professional sports,
up-scale shopping, and cultural events and facilities. "The presence of
these urban amenities attracts population, which then makes the cities more
attractive to employers," the brief states. "This feedback loop reinforces
the city's advantages."

But growing Saskatchewan's urban centres does not have to harm rural
Saskatchewan, the researchers contend. The group is calling for new forms of
rural governance to ensure the participation of rural areas in economic
growth. Further delay, they say, puts the very survival of small
Saskatchewan communities at risk.

"Rural communities benefit by simply being nearer to any urban centre," they
note. "The growth created by cities positively affects the rural areas
surrounding them. Urban growth is not a zero-sum game."

The authors point out that the natural resource revenue "windfall" that
Saskatchewan will enjoy over the next few years presents a unique
opportunity to build on the province's strengths.

But they caution that throughout the world, growth led by natural resource
revenue "has generally not been sustainable." Saskatchewan needs "to think
clearly about how it can wisely invest the resource revenues that will be
generated during the current upward price cycle in the energy industry."

The researchers are with the Canada Rural Economy Research Lab, a
state-of-the-art U of S research facility designed to study issues that
affect the vitality of rural Canada such as diversified economy, healthcare,
environment, transportation and sustainable agriculture.

They will discuss their policy brief on Tuesday, January 17th at a public
forum sponsored by the Saskatchewan Institute of Public Policy. The forum
will be held at the Sheraton Cavalier Hotel in the East Room from 4 p.m. to
6 p.m. Joining the panel will be Dale Eisler, a long-time Saskatchewan
journalist who is currently working as the assistant secretary to the
federal cabinet. Contact Marian Goodman at (306) 966-8893 to register.

For a copy of the complete policy brief, please visit:
http://crerl.usask.ca/policy.php

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For more information, contact:

David Hutton
Research Communications
University of Saskatchewan
(306) 966-6490
dave.hutton@usask.ca
www.usask.ca/research

Rose Olfert
College of Agriculture
University of Saskatchewan
Associate Director, Saskatchewan Institute of Public Policy
(306) 966-4023
rose.olfert@usask.ca