The Manitoba miracle

Image via WikipediaSix years ago, Rylan Hart, a contractor from Winnipeg, packed up his tool box and headed west. While Manitoba’s economy was expected to continue plodding along, British Columbia was on the cusp of a housing boom, and as a skilled tradesman he was perfectly positioned for the windfall when it came. But Hart had been warned by veterans of B.C.’s “roller coaster” construction sector not to expect the good times to last, and they didn’t. The combination of recession, an Olympic hangover and the new harmonized sales tax sent shivers through his industry. “Everything just tanked,” says Hart, 35. So in July he did what a lot of others in the Manitoban diaspora have done over the last year—he packed up and headed back to the Prairies.
But if the Winnipeg that Hart left was dull but stable—it’s often said Manitoba doesn’t suffer economic slumps because it never enjoys boom times in the first place—the Winnipeg he returned to, with its luxury condo projects, massive housing developments and stunningly low unemployment, is scarcely recognizable. “From the moment I got back I’ve been going full tilt,” he says. “I keep having to tell [potential clients], ‘No, I’m too busy.’ I’ve already got work until at least next spring lined up.”

By many measures, Manitoba has emerged as the shining star of Canada’s recession and subsequent recovery. True, economic growth fell to zero last year, but that meant it was the only province that didn’t shrink. And with the recovery in full swing, Manitoba enjoys the lowest unemployment rate in the country, at 5.2 per cent, compared to a national average of 7.9 per cent and 8.6 per cent in Ontario. The housing market is going strong, and Manitobans are outspending their countrymen at the mall and at car dealerships. “The mood is very optimistic here,” says Dave Angus, president of the Winnipeg Chamber of Commerce. “Psychologically, our ability to weather the economic storm has been huge.”
There are several reasons for all this. The one economists typically point to first is the diversity of its economy. No other province has as eclectic a mix of businesses and services at its core. There are Manitoba’s vast fields of wheat and other crops, of course, which in a similar way helped American states like North and South Dakota and Nebraska survive the recession easily. But crop production makes up just five per cent of the Manitoba economy. Far more important are sectors like manufacturing, with its focus on aerospace and buses, as well as financial services, transportation, and mining and petroleum production. “Manitoba is the most diverse of all the provinces,” says Paul Ferley, assistant chief economist for the Royal Bank of Canada. “In booming times you don’t see Manitoba at the top end, but in periods of economic weakness it usually doesn’t show the extreme declines.”
But that doesn’t tell the full story of how the province dodged the Great Recession bullet. Even before infrastructure became the buzzword of the global recovery, Manitoba had a number of high-profile projects on the go that helped shield it from the downturn, such as the $800-million expansion of the Red River floodway, a $585-million project to expand Winnipeg’s airport, and the construction of the 23-storey Manitoba Hydro tower in downtown Winnipeg. While construction on those projects has largely wrapped up, work is under way on the Canadian Museum of Human Rights, and the province appears intent on building a new stadium for the Winnipeg Blue Bombers, even though the price tag has soared 40 per cent to $160 million.
There’s an obvious theme to many of those projects—they wouldn’t be happening without massive spending by all levels of government. Critics argue that government spending is crowding out private investment and inflicting long-term damage to the economy. Manitoba has the highest net provincial debt as a share of its economy of any of the western provinces, at 24.4 per cent, though that’s still far below the Canadian provincial average of 37.6 per cent. And, ironically, as a have-not economy Manitoba relies heavily on the generosity of Ontario taxpayers as well as Alberta through federal-provincial transfers. It’s led Peter Holle, president of the Frontier Centre for Public Policy, to label Manitoba a “zombie economy.”
But those concerns have taken a back seat as the job market and consumer confidence have heated up. Retail sales in the province climbed 6.6 per cent in August from the year before, while the country as a whole managed an increase of just 3.5 per cent.
On a recent Saturday, a cold wind failed to keep car buyers away from Birchwood BMW on the western edge of Winnipeg. Francis Fang, an accountant, strolled between shiny black Bimmers on the hunt for a sports coupe to go with the Mercedes C-Class he recently bought. “I’ve travelled to Calgary and Vancouver and you could just feel things were more depressed,” he says. “We’d watch the recession on the news, but you didn’t feel it through your work or your jobs.” It’s been a similar story at the Gauthier Cadillac Buick GMC dealership in the city’s north end. “We’re seeing it from the front line,” says vice-president Jason Cross. GMC truck sales have doubled over the last year. Not surprisingly, national retail chains have taken note. Ikea has announced plans to open its first store in the city, possibly in 2012.
Low unemployment in Manitoba isn’t necessarily a new phenomenon, but in the past it’s been driven by the fact so many people leave the province to look for work elsewhere. Manitoba still suffers from negative net interprovincial migration, but that has slowed down and is more than made up for by a healthier inflow of foreign immigrants. (Over the last year, the province saw its highest population growth since 1982.) Manitoba has been the most aggressive of all the provinces at using the Provincial Nominee Program to lure skilled immigrants, says Mario Lefebvre, director of the Centre for Municipal Studies at the Conference Board of Canada. Manitoba now attracts roughly 13,000 immigrants a year, which, given the size of the province’s population, is a rate on par with Toronto’s. Manitoba’s immigration strategy got a shout-out from the New York Times recently, when the paper hailed Winnipeg as “a hub of parka-clad diversity.” It’s helped drive the local housing market—even amid the recession, housing starts came in at around 4,200 last year, one of the highest levels since the 1980s.
Can Manitoba keep it going? Ferley at RBC believes economic growth in Manitoba will actually come in below the national average this year, partly because grain production is down 25 per cent due to poor weather, and because other provinces that saw their economies hit hard are enjoying a strong rebound. But Ferley expects growth in Manitoba to pull ahead again next year, hitting 3.7 per cent, a full percentage point above the national average.
Problems persist, of course. Incomes in Manitoba still lag far behind those in other western provinces. Downtown Winnipeg continues to suffer from poverty and high crime rates. And one of the big lures for former residents boomeranging back to Manitoba has been affordable house prices and a lower cost of living—both of which are at risk as a result of the housing boom. But for now, Manitoba’s fortunes appear to finally be moving in the right direction. “This is a great place to be right now,” says Hart, the contractor who returned this past summer. “I’m very happy with the way things are going, and I don’t plan on leaving any time soon.”

Source: http://www2.macleans.ca/2010/12/06/the-manitoba-miracle/

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Ukrainian Immigration to Alberta

Image via WikipediaSource: Edukit.ca
Despite being known as the breadbasket of the Soviet Union and claiming large deposits of coal and iron, Ukraine is a nation whose history has been dominated by poverty. Foreign rulers, whether Mongols, Latvians, Poles, or Russians, have controlled or divided Ukraine among themselves for the past 100 years. These rulers have ensured that many Ukrainians remain poverty-stricken peasants. In 1891, having learned of Canada’s untapped potential, the first Ukrainian immigrants sold their meagre landholdings and headed west.
Ukraine’s immigration history to Canada can be broken into four waves, each growing progressively smaller and less important to Ukrainian-Canadian society.
The first wave began in 1891 when two peasants, Ivan Pylypiw and Wasyl Eleniak, established the community of Edna-Star east of Edmonton. Soon after, other immigrants followed in their footsteps. These pioneers came from two major regions: Galicia, part of Poland, and Bukovyna, part of the Austro-Hungarian Empire. Their reasons for leaving were many and included a growing population’ quickly running out of land, malnutrition which resulted not only from overpopulation but also from the primitive farming techniques applied at the time, and social problems such as illiteracy, drunkenness, and heavy debt loads.
These immigrants were encouraged by Canada and then-Minister of the Interior Clifford Sifton. At the time, Canada was eager to settle the untamed wilds of the prairie provinces and in exchange for only a $10 registration fee, was offering 160 acres of land each to willing farmers. For many Ukrainians who owned only a couple of acres in Europe, this was an enticing offer. In all, 170,000 Ukrainians arrived in Canada between 1891 and 1914. The majority of these immigrants were farmers who established small farming communities in Alberta, Saskatchewan, and Manitoba.
Although their immigration was encouraged by the Canadian government, many of the existing Anglo-Saxon elite held mixed opinions about the new arrivals. Some worried that the concentrated settlement in the area east of Edmonton would lead to a stretch of Ukrainian land that would resist the adoption of Canadian values and ideals. As such, in 1896, the Canadian government helped to establish several, smaller Ukrainian settlements across the prairies.
Ukrainians, along with other Eastern Europeans, faced increased discrimination after the start of World War I. The war not only brought a halt to immigration, but it also placed restrictions on Ukrainians living in Canada. Since Ukraine was partly under the control of the Austro-Hungarian Empire, with which Canada was at war, Ukrainians were designated as foreign aliens. They were told to register and report often to the nearest government office, and as a result of the Wartime Elections Act, those who entered Canada after 1902 were disenfranchised. Those who did not follow the new restrictions and some unemployed men were placed in wartime internment camps.
One positive outcome of the war was that the increase in the price of wheat allowed many Ukrainian-Albertan farmers to enjoy new-found prosperity. Some were even able to increase the size of their farms as a result.
Ukrain's independence following World War I was shortlived; the nation was soon carved up between Czechoslovakia, Poland, Romania, and Russia. Immigration resumed shortly after the war’s end. Most Ukrainians continued to arrive from the regions of Galicia and Bukovyna. Although they encountered some political oppression on the part of the Polish government, most Ukrainians chose to emigrate for economic reasons similar to those that existed before the war. In all, 68,000 Ukrainians came to Canada in the period betwen the World Wars. They were welcomed by the existing Ukrainian population, although many settled in new areas because land was scarce where communities already existed. Alberta’s Ukrainian population rose to 71,868, still less than the totals for Manitoba and Saskatchewan.
For its part, the Canadian government was no longer as eager to support Ukrainian immigration. In 1923, the government, concerned over the rising numbers of non-British immigrants, classified different nationalities as being either “preferred” or “non-preferred.” Ukrainians fell into the latter group and as such, they could only gain entrance to Canada if they had family members already living in the country or as farmers, farm labourers, or domestic help.
During the Great Depression, immigration all but stopped. Only those who could prove they had enough money to start a farm were allowed to immigrate: Canada had closed its borders in an attempt to reverse the economic slide. By the late 1930s, immigration had, to some degree at last, resumed. Many Ukrainians left their homelands fearing another war.
Just as World War I had done, World War II cut off immigration. The third wave of Ukrainian immigration resumed after the end of the conflict and consisted of displaced persons (DPs) left homeless by the war. While some Ukrainians were repatriated back to their homelands, others did not return, not wanting to move to the now Soviet-controlled Ukraine.
Between 1947 and 1953, more than 34,000 displaced persons of Ukrainian descent came to Canada. These newcomers differed from earlier immigrants in several ways: first, they tended to be better educated or have more extensive training. An inabiltiy to communicate in English, however, led to problems finding work. What's more, they came from all across Ukraine and not just from a couple of regions. Finally, they chose Ontario and Toronto in particular over Western Canada.
The fourth and final wave of Ukrainian immigration took place in the 1970s and 1980s. It was a small trickle of 10,000 or so who managed to escape communist Poland and the Soviet Union. During this time, Alberta’s Ukrainian population was bolstered not only by immigrants but also by Ukrainians’ moving from Saskatchewan and Manitoba. By 1981, Alberta, with 136,710 claiming Ukrainian heritage, boasted the highest Ukrainian population of any Canadian province. This population was mostly Canadian-born, urban, and assimilated.
In 2001, Ontario was home to Canada’s largest Ukrainian population: Ontario boasted 290,925 Ukrainians compared to Alberta’s 285,725. However, while this only accounted for 2.6 per cent of Ontario’ population, it accounted for almost 10 percent of Alberta’s. Edmonton retains the largest Ukrainain population of any Canadian city with 125,720 while Ukrainians and their descendants make up the eighth largest ethnic group in Canada with a little over a million people.

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