Canada ‘not living up to its brand’

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Canada slipping in global economy: report
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Canada is sagging in its global stature as a wealthy, socially-conscious, healthy nation as its economy slided to 12th in 2005, the Conference Board of Canada reported Tuesday.

«The message of this report is that we’re slipping,» Anne Golden, president of the Conference Board, said.

The think-tank has been ranking Canada and other industrialized countries for a decade now in its annual Performance and Potential report, measuring the world’s 24 richest nations in the areas of economy, innovation, environment, education, health and society.

According to the report, Canada remains one of the best places in the world to live, but it is falling behind in some key areas.

In the area of economy, Canada has plunged to 12th place in 2005, from sixth in 2004 and third in 2003.

Golden cited three main reasons behind the slip: lagging productivity; the improved performances of other countries; and the country’s failure to embrace trade.

The report found that Canada’s productivity is stagnating, with a widening income gap between Canadians and Americans to the tune of more than 8,000 US dollars per person. American productivity grew by 3.6 in 2004, tripling the Canadian rate.

On health care front, Canada has fallen from eighth to tenth place. The board took Canada to task for its high child poverty and infant morality rates, and the continued shortage of health care professionals.

But Canada still scores high for its openness to foreign ideas, entrepreneurship and tax treatment of research and development, the report said.

The report sets out 15 recommendations for action, including spending more on education and infrastructure, removing tax and trade barriers to innovation and commercialization and a greater investment in natural resources.