3 - Twentieth-Century Canadian Economic History

Summary

INTRODUCTION

This chapter covers growth and structural change in Canada over the last century. During this period Canada grew from a country with a small and widely scattered population and vast unsettled lands to an urban-industrial nation. The transformation, although not without its problems, nevertheless was highly successful, chiefly due to the discovery and then successful exploitation of a series of staple exports, beginning with wheat in the 1890s and broadening to include pulp and paper, minerals, and, most recently, oil and natural gas. The export of natural resources is therefore an enduring theme in any explanation of the forces generating long-run growth in Canada. However, as the century progressed, other factors were added to the determinants of growth. With a larger population and higher average income the Canadian economy itself proved to be an effective promoter of growth. Hence, by the end of the century, the forces generating change had become more complex. They involved influences associated with both the international sector as well as with internal developments, and their interaction. What follows, then, is an attempt to offer explanations for these changes and to set out some of their consequences.

The twentieth century can be divided into three broad periods. First, the years from 1896 to 1929 were ones of rapid growth. They include such important developments as western settlement, the emergence of wheat as Canada’s primary export staple, and the creation of an integrated national economy. Second, the period 1930 to 1950 is one of disruption. It covers the Great Depression and war.