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Although Canada is a relatively young country, it has a rich cultural make-up encompassing contributions from all continents. A large part of the multi-faceted Canadian identity is influenced by its natural riches. As the second largest country in the world (the only nation larger in area being Russia), it contains mountain ranges, the Great Lakes, and both Pacific and Atlantic Coasts. Canada's myriad natural resources include the largest supply of fresh water in the world, ancient forests, natural gas (Canada is the world's third largest producer and the number one supplier for the USA), and various metals (Canada is the world's leading producer of Uranium, accounting for about 1/3 of the world's output) and minerals.

Despite the expansive resources mentioned above, Canada's largest export  are, currently, highly-specialized, thoroughly-trained professionals. From film, health, and telecommunications to the internet, Canada has a worldwide reputation for academic excellence that is reflected in its highly sought-after graduates and professionals. In its most recent history, Canada has been a safe haven and a host to immigrants and international students with professional and personal potential in addition to invaluable cultural contributions.

Canada's early history shows a strong European and Native cultures influencing the first few centuries, from the British and French coming into contact with the Aboriginal peoples to Americans leaving their own states for the young nation that would eventually become synonymous with tolerance and diversity.

from the December 2003 publication Canada's Journey to an Information Society by Statistics Canada
 
Over time the Canadian economy has been profoundly reshaped, from one based almost exclusively on natural resources to one striding with confidence into the knowledge-based era of technology and innovation. Canadians have been transformed from ìhewers of wood and drawers of water to a leading Information Society workforce.  While natural resources will always be important for Canada, much has changed over the course of the last century. The country has a new make-up and a new outlook for the future. How did this happen?

"Canada has come a long way from the economic revolution sparked by the railway and the telegraph in the early 1800s" (Statistics Canada 2001)

From its beginnings the Canadian economy relied heavily on natural resources. For generations the countryís prosperity was based on harvesting the resources of the land and seas. This was the driving force behind early settlement and development. Other important milestones in the country's history, notably the completion of the Canadian Pacific railway from east to west towards the end of the 19th century, were related chiefly to the movement of natural resources and people.

The primary industries of agriculture, fishing, mining and forestry made up the original foundations of Canadaís economy.  Although a far cry from their relative significance in the beginning of the 20th century, as recently as the early 1960s they still contributed 11% to the country's gross domestic product (GDP).  These four sectors now contribute only 5.8% to GDP (2002).  In parallel, the number of Canadians working in primary industries represents a shrinking slice of the labour force (from 34% in 1911, to 15% in 1951 and only 4% in 1981). This transformation took place gradually, but prepared the ground for the profound changes that were to come at the sunset of the 20th century.

In the early years of the 20th century, millions of settlers arrived in the prairies to begin a new life. These ìwheat kingsî intensified the existing agricultural tradition, but their presence was also the lifeblood behind
the emergence of strong and growing manufacturing and transportation sectors in the east.  Supplies had to be shipped to the prairies and other parts of the country in order to support the thriving agricultural, forestry and mining industries.  In turn, these industries produced farm, forest and mineral products which were shipped back to the cities for further processing or consumption.

The export boom of the roaring twenties followed, as Americans, British and other Europeans bought Canadian farm, forest and mining products in large quantities. When demand for iron, wood and paper began to decline, however, mines and mills began to close.  The effects were felt throughout the manufacturing and service sectors, signaling the start of the Great Depression.

Post-WWII construction and growth brought the Canadian economy back to vibrancy.  The 1950s and 1960s were characterized by high employment and low inflation. Steady growth in personal incomes financed an expanding social safety net, including the Canada Pension Plan, generous unemployment insurance, inexpensive post-secondary education and universal health care (Statistics Canada 1999).

Of all the changes Canada's economy has undergone, the most dramatic has been the rise of the services sector.  This was particularly the case for four large groups of services, namely communications, transport and trade; government; finance, insurance and real estate; and community, business and personal services. The rise of the services sector began in the early 20th century, as the first city dwellers lacking the skills and time to do tasks that had been part of daily life on the farm created work for tailors, shopkeepers, bakers, butchers and so on.  By the end of WWI, the services sector already employed more people than primary industries and took over as lead contributor to GDP in the early 1920s.

But it was increasingly sophisticated services, rather than personal services, that continued to fuel this transformation over the next several decades.  After WWII, economic boom and automation meant that workers left the factory floors for occupations in service industries. As baby boomers reached school-age, demand for education and teachers, and health care and health care workers mounted.  This was accompanied by rapid growth in financial services and recreation.  Business services were also growing
remarkably and information and communications technologies (ICTs) started to become more and more prevalent.

The services sector has been growing steadily and has dominated the economy for some time; it now accounts for almost 70% of GDP and 75% of employment (2002).  As a consequence, the relative importance of primary and secondary industries has been declining (Statistics Canada 1999). This is not to say that natural resources and manufacturing, particularly a strong automotive sector, will not always be important in the context of the Canadian economy.  However, the chances that young workers entering the labour force will find themselves employed in natural resources or manufacturing are becoming smaller as time goes by.

While the 1970s were difficult years everywhere, with oil-price shocks, increasing prices and high unemployment pushing the economy into stagflation, the 1980s brought about change, both in the economy and in societal attitudes.  Most importantly, the beginnings of the Information Society
were revealed with the introduction of ICTs, particularly the computer and the cell phone.  These and many other ICTs found their way into the lives of Canadians at home and at work. With the arrival of the commercial Internet in the 1990s, the stage was fully set.  The movement took an enormous leap with the ìirrational exuberanceî of the late 1990s which, despite the eventual downturn, was accompanied by confidence, optimism, creativity and an emphasis on training and skilled work. Through a combination of revitalized and emerging industries, a dynamic ICT sector (accounting for 8% of GDP) surfaced including a strong manufacturing component.  Although much manufacturing activity would shift to developing countries, as a trip to any retail establishment will reveal, part of its evolution involved a restructuring and compositional shift towards higher value-added products and processes. Coupled with trade liberalization, manufacturing generally took off until the recession of the early 1990s. By 1994, the manufacturing sector had recorded its strongest growth in 15 years, a turnaround due in part to the surge in demand for electrical and electronic products for computers and telecom equipment part of the ICT sector.

But these changes are only the tip of the iceberg.  While significant in their own right, they pale in comparison to the underlying economic and societal transformations that occurred from the moment ICTs were welcomed by Canadians governments, business and consumers embraced connectedness with enthusiasm.

Canada depends on its communications networks to overcome geography and distance for the movement and management of people, goods, services and ideas. Just as the Trans-Canada highway connects all parts of the country, the information highway is revolutionizing the way in which we live, work and play.  Instead of a highway built by cement and bridges, the information highway uses a network of wires, cables and satellites to connect computers, telephones and other technologies to overcome the challenge of distance.

ICTs have permeated every sector of the economy; they have taken down borders for trade and increased information traffic between Canada and the rest of the world.  To varying degrees, every sector of the economy is adapting to ICTs in order to better deliver services, conduct business, and share information.  Many museums, for instance, now use ICTs to showcase their collections, bringing Canadian culture to the world via online catalogues of virtual art work (Statistics Canada 2001).

Those industries supplying communications, such as telecommunications services and ICT manufactures, are continuously innovating to improve the range and quality of their products and services and are engaging in global competition. Moreover, convergence has increasingly blurred the distinctions between technologies and delivery of services.

Among their many applications, ICTs facilitate information sharing and knowledge management, key elements of the Information Society. We now view the transfer of information with a sense of speed and increasing immediacy.  Advances in ICTs also create challenges. For example, digital technology allows consumers to download and record music free of charge from the Internet, causing a growing dilemma for the music industry.  Many issues of a jurisdictional nature remain to be sorted out.

Author William Atkinson (2001) argues that the key to a strong economy today is to harness the most renewable and widely available of all our resources ñ fresh thought.  The flow of information fosters growth, productivity and efficiency.  Canada currently boasts one of the most sophisticated communications networks in the world. With 31 million people spread out over 10 million square kilometers, it is fitting that Canada would be a world leader in communications (Statistics Canada 1997).