On January 27, the federal government will unveil a mix of fiscal measures and infrastructure investments aimed at reinvigorating the economy. This past week, former Finance Ministers, John Manley, Don Mazankowski and Paul Martin were interviewed by CBC/Radio Canada asking for their advice to Minister Flaherty. All three, including Mr. Mazankowski who was Minister of Finance during the Mulroney years, insisted on the necessity of investing in "infrastructure" and building projects to stimulate our economy and emerge from the global recession.
The theory of investing in "infrastructure" during a recession is to make use of human resources that are available because of a depleted job market and to provide people with income that can be spent immediately in the country. As the theory goes, the projects should aim at building or renovating what is necessary to bolster the country’s competitiveness when times get better and private investors are ready to inject money in the economy. When speaking about infrastructure, Mr. Martin, Manley and Mazankowski mentioned bridges, roads, and a fast train service between major cities—a very traditional way of understanding infrastructure.
In 2009, one has to ask what is necessary to build Canada's competitiveness and attract future investment. Bridges, roads and public transportation are important but this a knowledge economy, we must broaden the concept of infrastructure to take into account the fundamental changes in our world.
The knowledge economy needs highly-skilled workers and infrastructure made up of world-class research, state-of-the-art labs, and well-funded universities. An effective innovation agenda requires a strong capacity to generate new ideas and turn them into products, services and policies that benefit the public. Only investments in knowledge infrastructure will create this innovation capacity so needed in Canada.
It is essential to consider innovative approaches both to simulate the economy today and to ensure that Canadians are ready to seize the opportunities that will arise tomorrow. University research and the transfer of knowledge to every sector are critical to ensure the long-term sustainability of our economy and the prosperity of Canadians. Successful innovation requires research investment in every discipline, including the social sciences and humanities. Research in the social sciences and humanities helps ensure that Canadians understand the world and its diversity, communicate across cultures, and contribute to a strong economy and reap its benefits. It is therefore important to think about the meaning of infrastructure in a way that corresponds to our current understanding of today’s economy.
Canada needs to invest not only in bridges and roads but also in its universities and its research. A strong investment in the knowledge infrastructure should provide universities with the funds needed to stimulate research in health, social sciences, technology and in the humanities—investments that will position Canada in the competitive world when we emerge from the recession.
Bricks and mortar are not enough in the 21st century. We need to rethink our concept of "infrastructure" and modernize it. What was appropriate in the 1930s will not be enough in the 2010s. The federal government needs to invest in research and innovation— Canada’s knowledge infrastructure—as part of any public spending program to stimulate the economy.
Nathalie Des Rosiers
President
Canadian Federation for the Humanities and Social Sciences
