Canadian Economy from 2007 till 2009 - Coursework Example

 Canadian Economy For the last ten years, a new arc of globalization has developed that has greatly affected almost all the economical sectors across the globe. These sectors involve business, economics, healthcare, educational systems, etc. This developed arc has caused a pressing demand of change in policies and development of promising development strategies that can face the challenges imposed by globalization and assure rapid growth as well. Other than globalization, the economical receding is very significant problem faced by countries throughout the world. The effect is more destructive in economical sector and it is rendering devastating effects on every economy. Among the countries who had suffered greatly by this declining arc, Canada along with many other developed countries of the world top the list (Thiessen, 1999). Experts have analyzed that Canada has endured inauspicious consequences of economical receding. Nevertheless, Canadian Governments and the policy makers faced the challenges imposed by economical recession very effectively, and hence the Canadian economy is still moving at the swifter and stable pace. Although the Canadian government has met greater encouragements on coping up with the recession, it has received notes of criticism as well. The criticism involves the fact that during the period of coping with economical challenges and after that, the Bank of Canada never played any outstanding role to get the country running as swift as before. By making a comparison between the functioning performance of Canada and other G-7 countries, one may notice the decline in Canada’s performance. Now it has become very crucial that the Canadian government along with the Bank of Canada provide some concrete base to prevent the decline in Canada’s performance graph. This paper deals with the description of Canadian Economy; it makes a recognition and analysis of the role of Canadian government in collaboration with the Bank of Canada in order to prevent the economy from any downfall. Moreover, the paper throws light on certain economical revolutions faced by the economy, resulted by the efforts of two authorities and prime forces in the country. In addition to it, it cross check various economical policies and development strategies made by Canadian government for the last two years. After the devastating effect of arc of globalization and the economical receding, economists of the country propose that the government and the banks should bring some new policies in order to counter the slurp in global economical growth, in addition to the present policy of constraining the development to regional sectors only. Studies made on the part of Canadian government have showed that the government in collaboration with the Bank of Canada has formed their macro-economic strategies and other development policies in the same manner. However, the Canadian government still strives to insert strategies and policies that would encompass the global economical effects and not only limiting their economical policies to the regional needs. Such planning by Canadian government is most likely to bear fruits in a long-term setup, as these strategies would help the Canadian government not only in boosting its own economy but also to play a significant role in economies of the world. Numerous experts make analysis about Canadian government by taking it in comparison with the American government on the grounds such as executing economical issues of the country and making the economical growth as swift as possible. This analysis have resulted that the Canadian Government is capable of coping up with the economic recession more efficiently then the American Government. Moreover, the results have showed the Canadian baking sector has developed at a rapid pace for the last two years in comparison with the US banking sectors, and in the end, the Canadian banking sector has extended its support towards the Canadian government in countering the global recession influences in this particular period. Talking about the banking department of the country, the Bank of Canada is an effective prime authority in operating the sector of private banks by enforcing efficient management, and administrative polices and strategies that centered principally on the implementation of rigid regulatory systems. This inflexibility relative to the monitoring of finance department has permitted the Bank of Canada to counter the consequences of economical receding that has placed devastating results in the USA for past few years. Moreover, the Canadian government has rendered an effective macro economical program to the sector of banks in order to make them grow profitably. Particularly, experts has indicated the prime focus of attention of the Canadian government on the resolutions worldwide and the global requirements that are very fruitful for the progress of economy of any country, this is evident from Canada’s significant position among G-7 countries. In addition to it, this system of Canadian government has served as an ideal or role model for other countries that are striving to enforce successful systems like that of Canada in their countries in order to nullify the devastating effect of global economic recession (NRCC, 2009). Along with such successful assigns of the country’s economy, the Canadian policy developers and economic experts have depicted remarkable consistence and appraisable stability in the respective micro economical strategies and policies particularly in the past two-three years. This steadiness has bore economical advantages continuously. Moreover, the Bank of Canada has played a leading role in making of the economical policies for countering inflation has rendered greater economical benefits with respect to the mature and stabilized economy of the country. One of the most significant advantages of the collaboration of Canadian Government and the Bank of Canada is the consistent rate of inflation of under 2% for about ten year period and has endured to be under the same count for the last two years as well. Like the economy of the country, the finance department of Canada has been beneficial as well. The grounds of financial stability have its roots in stable and powerful regulation strategy of the Canada’s main bank. For example, the bank of Canada controls every private bank and stakeholders, regulates, and instructs information to it as to get greater financial stability in terms of federal banking. This made the federal banks to monitor, regulate, and control the economy in a very coordinated manner dissimilar to other American and European economies around the world (NRCC, 2009). In this particular situation, the fundamental technique of Canadian government is utilization of federal laws and legislature to operate the economical sectors of the country. Nevertheless, though the Bank of Canada has inflexible policies for the private sector, it also performs restoration and redevelopment measures in terms of banking and micro economical strategies and policies. This step is mandatory because of the quick change in economies throughout the world. This exercise of periodic change in the regulatory policies has modified and made the government capable of estimating economical growth and development in a more natural way. Moreover, these variations and change enables the private banking sector to participate and formulate more quickly and effectively in the matters of the country. That is why that private investors and stakeholders have always believed and entrusted Canadian economy because of its stable and steady nature. Another important attribute of the Bank of Canada is the existence of its fundamental management system that has ensued in reduction and eradication of ambiguities that permit the stakeholders working in private in other countries to have a disastrous and devastating effect on the economy of country. Taking the Canada’s Economy in view, the Bank of Canada has enforced a central management system that encompasses all the stakeholders under one program; therefore, every investment finds its inlet and exit only through this platform. Because of implementing this central exercise, the Bank of Canada can effectively control and regulate the functioning of private side of banking sector more efficiently as compared to other economies of the world. Specifically, ‘Office of the Superintendent of Financial Institutions’ (OSFI) is the fundamental monitoring agency accountable for dealing finance sector in Canada. In this matter, Canadian government promotes private banking sectors and private stakeholders to invest in the country’s economy however, on the other side of the picture; it has implemented a central monitory conceptualization that makes the Bank of Canada capable of guiding the private banking sector in an ore productive and profitable manner (Rajasekaran, pp. 1-11, 2009). Another important approach of the collaboration of two prime authorities is the inspirational and challenging approach that has made both the groups more capable of handling the economy more efficiently and expertly. For example, the target of OSFI is to have seven percent of Tier 1 capital, nevertheless, experts have indicated that Base II has reached only to four percent comparing to the actual target. These high settings of the target has enabled the Canadian economy to ensue in challenging consequences, and more effective advantages that are evident from the greater functioning of Canadian economical development on both regional and global basis (NRCC, 2009). Moreover, the Government of Canada has always showed interested and rendered appraisal in consistence of the amount of assets. In addition to it, experts have analyzed that the Bank of Canada promotes reasonable and good capital, necessary for achieving and for the maintenance of assets that has resulted as a very beneficial attribute for the company’s economy particularly in the last two- three years of Canadian exceptional development in an exceptional global economical development. The government has been excellent in countering the peaks effects of recession during the peak period of global economic recession. Viewing the other side of picture, analysis done on global economics has showed that the other economies of the world including American and European countries has adopted the system of creation and dispersion while the Canadian economy holds its focus on consistency of assets and healthy capitals, so that the results are clearly beneficial (NRCC, 2009). An important result of this consistence in the macro economical policies and strategies of the Canadian government is the position of Canadian banking sectors tops the list of all the banking sectors worldwide, and it distinctly depicts the success and achievement of Canadian banking sector on the rest of the world. A detailed analysis of the macro economical policies and strategies of Canadian government has showed that the government agencies always show interest in promoting and encouraging both the open and free macro economical markets on the regional level. Nevertheless, for the purpose of preventing and controlling the shortcomings and the ambiguities, the government has eliminated and rejected the concept of such systems of the economy from the social and cultural department of the country in terms of education, soil service, healthcare etc. With reference to the social sectors, the Canadian government authorities have once again adopted inflexible conduct, which has proved to be advantageous to the people of Canada. Hence, the people of Canada has encouraged and appreciated making of these policies and strategies (NRCC, 2009). Hence, the one side of the picture shows appreciation of both the open and free markets that has encouraged foreign stakeholders and dealers to entrust the economical policies of Canada. Moreover, the virtues of free and open market that it has opened the doors of employment to many and the employment rate has increased rapidly on regional basis. However, on the other side of the picture, Canadian government has always given prime importance to the safeguard the social system and rights of the people of Canada and no compromise policy is applicable in this regard. This depicts the sound monitory assigns of Canadian government as well as the effective regulation from the Bank of Canada’s side. It is of prime significance that the economic experts and the policy developers should be affirmative in their respective positions. This is a major attribute of Canadian economical setup and economists regard it as a turning force for the success of Canadian economy throughout the world. A survey conducted by National post (Tait, pp. FP.4, 2009) indicated that about 80% of the Canadians were happy with the micro economical policies of the Canadian government, and its collaboration with the Bank of Canada. It is the highest percentage of people trust in last five years, a milestone achieved. This clearly depicts the efficiency and appositeness of Canadian government in governing the Canadian economy in the most coordinated way. In the same period, other economic experts surveyed the regional and foreign investors (Tait, pp. FP.4, 2009), stakeholders, and dealers on their own opinion about the futurity of Canadian economy. Results of this survey were rather exceptional and it showed that about one-fifth of the investors had firm faith in the future of the economy. In August 2009, this one-fifth portion even increased to about three-tenth of the total population surveyed, again a milestone achieved. Moreover, the percentage of population surveyed that was not optimistic about the future of Canadian economy was only fifteen percent. This is rather a very small portion and it clearly shows that the investors that were not hopeful about the successful functioning of the economy of country in the coming year are very minute. Therefore, the Government of Canada in collaboration with the Bank of Canada has truly succeeded in maintain strong bonding with the local and international investors across the globe. Lastly, the other supreme center of attention of Canadian government for the last 2-3 years is that advancement of regulatory conceptualization, and more significantly, the Canadian Government has showed greater efficiency in the collective endeavor of G20 countries for the improvement and betterment of economy for the years yet to come. Moreover, the Bank of Canada is a successful candidate in adding the clarity and impression of responsibility in the sector of private banks of Canada. Numerous economic experts (HRSD Canada, 2009) have published reports, which states that this attribute is most important in quick economical growth of the country. Concluding the paper, it has proved with facts that for the last two-three years, the Canadian Governments in collaboration with Bank of Canada has provided a swifter pace to the economy even in the worst time of economical recession. References HRSD Canada. (2009). “Government of Canada helping Canadians prepare for the Economy of the future.” Canadian Business Online. Retrieved on October 26, 2009: http://www.canadianbusiness.com/markets/marketwire/article.jsp?content=20091024_111503_0_ccn_ccn NRCC. (2009). National Research Council Canada. Retrieved on October 26, 2009: http://www.nrc-cnrc.gc.ca/eng/index.html Rajasekaran, Vinod. (2009). “Rebooting the Economy: What is the role of government in the transforming economy?” Public Policy Forum. Retrieved on October 26, 2009: http://www.ppforum.com/publications/rebooting-economy-what-role-government-transforming-economy Tait, Carrie. (2009). “Canadians show their best outlook of economy in two years.” National Post. Issue of September 05, 2009, pp. FP. 4. Thiessen, Gordon. (1999). “Speech on the Canadian economy.” Bank of Canada. Retrieved on October 26, 2009: http://www.bankofcanada.ca/en/speeches/1997/sp97-5.html Read More