Canada is losing ground in comparison to other developed countries, according to the Conference Board’s 10th annual Performance and Potential report released today.

“Canada runs the risk of squandering its abundant endowments and opportunities. Our report card shows that Canada’s relative performance continues to slip, and other countries are not standing still. Most of the challenges that we noted in our first Performance and Potential a decade ago persist in 2005,” said Anne Golden, president and CEO of the Conference Board, in a release.

“Even in areas such as health and society, where we believe that we have created a strong social fabric, our public record does not measure up to our international brand.”

In the Conference Board’s benchmarking, Canada earned top 12 rankings in all six categories, but lost ground in four of them, including a decline from sixth to 12th place in the Economy ranking.

According to the report, Canada’s relatively weak performance in economy indicators occurred for three reasons:

  • “Canada is a chronic laggard in key areas, notably productivity and investment;
  • “Other countries are not standing still, and many are outperforming us; and
  • “Canada has failed to keep pace in the growing competition for global trade and investment.”



The report examines four major global trends that will have profound effects on this country in the years ahead.

Emerging markets-led by Brazil, Russia, India and especially China (the BRIC nations)-will drive global economic growth and shape future investment, trade and commerce. As a consequence, Canada’s longer-term interests may lie in becoming a central part of a wider circle of influence, such as a revitalized G20, that includes the major emerging markets. Canada’s most important future trade and investment relationship, however, will continue to be with the United States, the report says.

Strong international demand for Canadian resources, especially from China and India, will offer opportunities for Canada.

Public and organizational policies and practices must begin to change now to offset the economic and social repercussions of an aging society. Keeping older workers in the workforce is one effective way of dealing with labour shortages.

Three types of threats to global security are expected to dominate the world in 2020: conflict risks, economic risks, and social and health risks, the latter potentially the biggest threat of all.

The report also sets out 15 recommendations for action.