Sunday, 17 July 2011

How to help Canada's economy?

So far, the Canadian government has managed to greatly reduce the impact of the global economic crisis on our country, but with reports coming in about the upcoming bursting of the real estate bubble (http://www.bnn.ca/News/2011/7/13/Real-estate-set-for-slowdown-TD.aspx) and a possibility of the U.S. defaulting on its debt (http://www.cbc.ca/news/business/story/2011/07/12/f-us-default-canadian-effects.html), shouldn't we be worried?  Our population is aging and birth rate is dropping.  Ontario and other provinces, are expecting to see lebour shortages in the near future (http://www.collegesontario.org/news/news-releases/2007/ontario-faces-labour-shortage-of-360000-people.html).
Either one of the above issues should be a big cause for concern, but there is a long-term solution - increasing Canada's immigration.  However, it's not as simple as just letting more people in, the system needs a lot of tweeking to ensure the desired results.
Accepting more immigrants, does not mean refugees, or elderly family members, but skilled workers, tradesmen, doctors and people with capital to boost the economy.  However, it is one thing to accept these new Canadians, but another to actually let them work, which is the biggest problem facing new immigrants right now.  Their credentials are often not recognized and the recognition takes many years and often forces them to give up.  The process needs to be changed and simplified. 
Doctors for example need to jump backwards through hoops of fire to be able to practice.  There are four exams: MCCEE, MCQE1, MCQE2, CaRMS and then a minimum of two years of residency.  If the person is lucky, they might be able to finish the process in four to five years.  Each exam is very expensive and the immigrant doctor is not guaranteed residency spot.  In fact the competition is so stiff, there is a less than 1 in 4 chance that the person who passes the exams will get a position (http://www.thebigwait.com/international-medical-graduates/lower-percentage-of-foreign-trained-doctors-matched-for-medical-residency-in-carms-2010-match/).  It makes no sense to be losing doctors to the U.S., having shortages in Canada and making it so difficult for trained and ready professionals to be able to practice in Canada. 
Another issue is the language barrier, especially among tradesmen.  For higher-education skilled workers, a language profficiency test is required and justified, but is it necessary for carpenters, tile setters, construction workers and people needed to work in the oil sands, or other natural resource extraction?  Wouldn't easing the requirements for these professions encourage more immigration and ease the backlog?  What currently ends up happening is newcomers with a higher education end up being forced into this form of labour, because they cannot get their diplomas recognized and they cannot survive.  Why not make it easier for them to do so, while at the same time allow immigrants with specific skills, but who may not speak English very well to immigrate? 
The housing bubble does not have to burst, although right now a new wave of immigrants would probably arrive too late and a significant price drop is imminent.  However, when they do arrive, there will be more new home buyers, more builders and they will bring a boost to the economy and allow for recovery.
Newcomers are also key to Canada's future should the U.S. economy collapse.  With strong, booming economies in China and India, we need to think about expanding business there.  What better way than through their own people?  They are our future trade partners and if we can speak their language and understand their culture, it gives Canada an advantage.  There should be a greater focus on building relationships with these prospective economic giants.
The aging population also needs to be cared for, and more imporantly - paid for (http://www.reuters.com/article/2007/07/17/us-aging-idUSN1721514720070717).  Soon they will be retiring and leaving the workforce, they will require nurses, doctors, caregivers.  The government will have to pay out more and more in pensions.  Where will this money and caregivers come from?  Canadians are not having enough children.  Again, immigrants are the only answer - more taxpayers and more workers.
Let's revamp the immigration system:
- Increase the number of immigrants per year.  According to NDP and RBC it needs to be around 400,000.
- Lower language requirements for trades people and labourers.
- Make it easier for immigrants with a higher education to get their diplomas and training recognized.
- Give equal opportunity to new immigrants - same wages, don't discriminate based on lack of Canadian experience.
- The reduction in immigration for sponsored parents and grandparents is the right move at the moment, but it should be changed once the Canadian population becomes more balanced again and the number of children is higher than the number of seniors.  If it will be difficult for the immigrants be reunited with their families, they may return to their countries.  Losing them after investing in them is bad business.
Nicholas Keung, a Toronto Star reporter, is a big proponent of immigratin and in a 2010 article he writes about the boost to innovation, art and cluture that immigrants give to Canada (http://www.thestar.com/news/investigations/immigration/article/875649--immigrants-help-boost-canada-s-innovation).  We have nothing to lose and everything to gain. It's time for change and the government needs to listen.

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