Canada's economy is faced at vital crossroads

             Frank  April 29, 2015 in Waterloo, Ontario, Canada

    1. Canadian manufacturing is in decline disapointedly

     1.1.  Canada's Mid-Sized Firms in Decline

    Feb. 13, 2013, Business Development Bank of Canada published study report Canada's Mid-Sized Firms in Decline:

    Canada’s mid-sized companies, a key motor of the economy, the number plummeted by 17% from 2006 to 2010. The worst-hit sector was manufacturing, which saw over half its mid-sized companies disappear from 2001 to 2010. 

    Mid-sized firms represent 1% of the total number of companies, but contribute disproportionately to the Canadian economy, accounting for 16% of Canadian jobs, 12% of GDP and 17% of exports. It is worth noting that a greater portion of mid-sized firms have their head office in Canada, compared to large firms (90% versus 77%).

    1.2. Manufacturing industry is struggling in Southwestern Ontario 

    Now, in two years later, the matter is not better, but much disappointed?

    Feb 16, 2015, CBC News Economics Reporter Peter Armstrong who revealed disappointing reality of the manufacturing of Canada by article Why southwestern Ontario's manufacturing rebound is missing.

    Southwestern Ontario's past is well known. The region was the industrial heartland of Canada. It was here they made everything from cars to ketchup. For a long time, this manufacturing model worked. It served people in the region remarkably well.

    With the price of oil dramatically reduced and the Canadian dollar heading lower, the manufacturing should grow up as usual, but, this time, for the most part, that growth hasn't emerged. Even as the dollar hit 78 cents, Canada's manufacturing industry continued to struggle. The usual manufacturing model has been showing cracks for years now. 

    Peter Armstrong reveals a fact, though, that is what we do not want to see, but, the true fact is there, that Canada has lost the competitive advantage for the business operation in manufacturing. There are more and more underdeveloped countries also have adopted more preferential policies to attract investment, mostly focusing on the development of manufacturing, such as, Mexico now is quickly growing in manufacturing. 

    1.3. Mexico has overtaken Canada in auto industry 

    Feb 10, 2015, the article Canada falls to Mexico in share of North American auto output reported that: Canada’s share of North American production of cars and light trucks has fallen to 14.1 per cent in 2014 from more than 17 per cent in 2009. Mexico, with 18.9 per cent of production, has overtaken Canada, formerly a powerhouse in the industry. The falling investment by the automakers in Canada means it is losing its share of production to both the U.S. and Mexico.

    The big winner is Mexico, which saw its light vehicle production climb to 3.2 million vehicles in 2014. 

    Auto production in Mexico grew 6.8 per cent on the year in January 2015, according to the Mexican Auto Industry Association, with 266,424 cars and light trucks manufactured. Exports hit a record level of 204,907 vehicles, spurred by strong demand from Canada and the U.S..

    Canadian auto investment almost stagnant but, automakers have made big investments in Mexico, where wages are in the $8 an hour range, compared with close to $40 in Canada.

    Global automakers poured $7 billion of new investment into Mexico last year, according to the Center for Automotive Research, compared to just $750 million for Canada.

    Mexico is an attractive place for production and has been since NAFTA began.

    Mexico is close to markets in the U.S. Southwest and has easy shipping from its ports without the bother of snow. And it has 44 free trade agreements which open doors to its products in other countries.

    The outlook for Canadian auto production is “clouded,”  despite a falling dollar which will make production cheaper.

    And uncertainty over costs makes the outlook for Canada dim.

    Canada is now more competitive [than the U.S.] on a cost basis for labour, but that’s because of the change in the loonie. That could change in a few years.

    Automotive jobs tend to be high-value jobs that can really power a local economy.

    Auto industry decline hits young families hardest, study finds

    GM holding back until 2016 on decision over Ontario plant

    Ontario chambers of commerce fight 'aggressive' U.S. incentives

    1.4. Canada's traditional manufacturing is permanently losing

    This trend can only be more and more intense, because the undeveloped countries will continue to improve their policies and related facilities for more conducive to the development of foreign manufacturers. And also, after working from foreign manufacturers, their nationals will be trained as skilled industrial army from unskilled peasants. and their local manufacturers will quickly grow up to form a new competitive forces.

    The report that More Mexicans Leaving Than Coming to the U.S. is a ggod proof: "From 2009 to 2014, 1 million Mexicans and their families (including U.S.-born children) left the U.S. for Mexico, according to data from the 2014 Mexican National Survey of Demographic Dynamics (ENADID). U.S. census data for the same period show an estimated 870,000 Mexican nationals left Mexico to come to the U.S., a smaller number than the flow of families from the U.S. to Mexico." 

    In overall, the Canadian economy is mainly composed of manufacturing industry and service industry, and manufacturing is the basis of the service sector. So, the economy of Canada is facing the key point of Life or Death. 

    2. The amazing low productivity in Canada

    2.1. The shocking reality on poor productivity in Canada  

    June 5, 2013, the article that A Canadian magic trick: wages that rise even if productivity doesn’t said with that:

     “If you spend any time reading about the Canadian economy, you have inevitably come across the Great Canadian Productivity Puzzle. Canada’s productivity is much lower than that of other countries, and we don’t really know why. Neither do we seem to be able to fix the problem. Policymakers have used every trick in the book to try to boost productivity, but the results have disappointed.”

    “Canadian productivity growth has stagnated since at least 2002. You’d think Canadian incomes would also have stagnated, but they haven’t. There’s another piece that has to be added to the productivity-income puzzle.’

     Canadian labour productivity growth has been lagging that in the U.S. 

    Oct. 1, 2012, the article that Canada’s productivity lags U.S. in ‘virtually every instance': Deloitte said with that:

    “Canada’s economy and ability to compete internationally is being hampered by its businesses’ inability to sustain growth over the long-term, says a report released Monday by consulting firm Deloitte.”

    "The study shows Canada’s productivity lags behind that of the United States in “virtually every instance,” including those industries that have been the cornerstone of Canada’s economy for decades — mining, oil and gas, financial services and manufacturing. The manufacturing sector was called out as a particularly poor performer, noting that U.S. productivity in the manufacturing has grown at a ratesix times faster than that of Canada since 2000.”  

     2.2. The cost of Canadian manufacturing is higher than that of  Japan or Britain

     Aug. 20, 2014, the article that Canada losing steam in its push for an export boom said that “It is now cheaper to make goods in once-high-cost countries such as Japan or Britain than in Canada, according to a new map of global manufacturing competitiveness.”

    "The consultants' report benchmarks the relative cost of making goods in the top export economies by comparing the cost in each country to levels in the U.S. On an index where U.S. costs are equal to 100, Canadian factories tick in at 115 - a rise of 11 points since 2004.”

    "Statistics Canada data show that only 1.7 million Canadians were employed in the manufacturing sector this year compared to more than 2.3 million a decade ago. Auto makers, in particular, have been pouring billions of new investment dollars into the United States or Mexico while giving this country the cold shoulder.”  

    3. The poor management is main cause of low productivity

    For the economic downturn in Canada, many social elite, even most of officials are over-emphasizing the drag of uncontrollable macroeconomic environment, while ignoring the controllable micro-economic cells - the business of the main body of the economy.

    I have been concerning about the economic issues of Canada. In the past 13 years I intended work in different type of enterprises of Canada with a terrible experiences that most of them were poor managed, and even shrouding with absurd ideological with poor corporate culture.

    In Canadian businesses, some employees, even some management personnel lack of the sense of responsibility, and even makes vandalism in workplace. It is not only resulting in production inefficiency, but also caused many enterprises' closure.    

    They boldly make nonsense without worry about being punished, since that has no proper law to regulate such behaviors.

    The law is over protection of employees with lesser concern about businesses owners, in irrationally encouraging mindless people perfunctory work and striking for gaining more with doing less. 

    Instead, the managers or owners dare not strictly constraint employees with the fear to be prosecuted. The loopholes in the law encourage some mindless mind into mad action in workplaces.  

    Even, there some people take enterprises as the object of lawsuits to extort money.  

    The closure of some companies are simply caused by some mindless individuals.  

    3.1. Stifling intellectual work environment 

    The one of the important factors in the success of world-class enterprises is that encourages employees to participate in management.

    The successful enterprises are mainly driven by motivating their employees fully exerting intelligence.

    The failed enterprises are mainly due to that their employees can not free exerting intelligence.

    May 28 2012, in the article The DNA of the Success of German Manufacturing, I indicate that the driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the proposals to motivate all staff to pay their full talent into the business running since Mr.Krupp initiated it in 1872. That is 142 years ago.

    May 28 2012, in the article, The DNA of the Success of IBM & America's best-run companies, I indicate that the driven force for patent invention of 102 years old IBM has been counting on the top of those world-class corporate giants in the United States for 20 consecutive years is the patent-related bonus incentive system.

    However, Canadian companies are just going on the contrary.

    Jan. 27, 2014, in the article The Fatal DNA of RIM & Canadian Enterprises, I said with that, RIM - Research In Motion Limited, a designer, manufacturer and marketer of wireless solutions for the mobile communications that headquartered in Waterloo, Ontario. As a successful high-tech enterprises, once was the pride of Canada. Its Headquarter is just several blocks away from my home.  

    Recent years, facing new competitors rapid rising, it has been retreating. The bad news are continuous, the sales decline, the stock devaluation, downsizing, the arguments of the privatization or so, every bad news have deeply hurt my nerves.

    For RIM's decline, people can find many sound reasons, however, I think that, the most fundamental one is the stifling intellectual work environment, which is that suppresses the free exertion of intelligence of the employees without a proper channel for employees expressing their views freely to have damaged the driving force for continuously self-revolution to fit the market that increasingly rapid changes.

    June, 2011, an RIM senior exec has to express opinion by an Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around him with 8 suggestions: 

    1) Focus on the End User experience.

    2) Recruit Senior SW Leaders & enable decision-making.

    3) Cut projects to the bone.

    4) Developers, not Carriers can now make or break us.

    5) Need for serious marketing punch to create end user desire.

    6) No Accountability – Canadians are too nice.

    7) The press and analysts are pissing you off. Don’t snap. Now is the time for humility with a dash of paranoia.

    8) Democratise. Engage and interact with your employees — please! 

    Above 8 suggestions were all to hit on the root cause of the failure of RIM.  

    The proposals are not only pointed out the problems, but also offered workaround, especially reconstruction of management, interaction with employees and to be managed in accountability. It shows the writer's honesty in deep concern for RIM's future, and well thought out.

    However, RIM’s responds to open letter was not only with no thanks, instead, was somewhat hatred condemnation.  

    This is one of important lethal Gene fragment in Canadian enterprises.

    Such a corporate culture is common in Canadian enterprises, which is just opposite that of smart doing in IBM and German Companies.    

    3.2. A RIM scientist has similar experience of the Open Letter 

    After reading the open letters, RIM's responds, the emails of RIM's employee and the readers' comments, I once talked with an employee who is working in the lab of RIM as a material scientist. She said that she once wrote a suggestions’ letter to the management of RIM, but without any response.  She felt that the corporate culture of RIM is not worthy for appreciation. 

    Besides above, I once called my friends who were working in RIM at that time.

    The one who works in the service department said that their work efficiency has a lot of room for improvement.  

    Obviously, in RIM, it has no normal channels for facilitating the communication between subordinates and superiors to promote the development with the wisdoms of all employees.

    3.3. Low quality of some executives

    In the article The Fatal DNA of RIM & Canadian Enterprises, I indicated the low quality of some executives.

    In local Canadian firms, there are a considerable group of executives with childish mentality in lack of rational thinking ability, such staff should belong to Low IQ. 

    As management staff, some of them, the interests are more in the enjoyment of the privilege of dominating others, with less in consideration of the interests of the business. Once give them right for fart once, they dare explode nuclear bombs endlessly. As that of the supervisor John that introduced in my article Family Business and Management Board. 

    Such management staff is not only incompetent as management, even without the basic moral as the member of human beings.

    Followed with the Open letter to BlackBerry bosses, the comments of RIM employees revealed a typical example of an incompetent executive. 

    “I was an employee at RIM for a year and a half. I worked in the legal and business affairs departments, and despite having originally thought I’d landed the jackpot job-wise, it took no time for me to begin planning my exodus.”

    “My first week started with a complete change in my title and duties without anyone telling me, and when I dared ask what was happening, the director (my boss) and her BFF the OD business partner ganged up on me and threatened to let me go, setting the tone for the remainder of my time there.” 

    “Over a year an a half, the four of us in the same position dwindled to just me and yet I was responsible for getting all four jobs done for the better part of a year, since this is how long it took the department to hire other entry-level people. Two individuals who had less education and experience (not to mention drive or intelligence) than me were promoted several times while my boss continued to tell me up and down that I had reached my ceiling at RIM due to my lack of education (two degrees!) and experience (5 years!)–as an administrative assistant. Rather than attempt to fight this system I figured I could transfer departments, only the company policy requires the supervisor to act as a liaison and reference for internal applicants. The insanely high turnover rate meant the department head wouldn’t let anyone go, in addition to refusing to promote from within (pets excepted). People were pitted against each other and an incredibly tense and hostile work environment was fostered. People around the office started referring to the office politics as “Survivor: RIM edition.” And we all remember the great movement to make recycling physically impossible across the entire company because one person let some confidential information slip.” 

    “Then, as I was saving up to return to school and make a better life for myself, I received a series of nasty emails from HR letting me know that since my boss had failed to log my vacation time a year earlier on SAP (despite my insistence on her doing it at three different times), I would have two full pay cheques deducted to “pay back” the company for what was being portrayed as my mistake. I never received an apology and almost had to drop out of school due to the loss of a full month’s pay. On my last day my boss deliberately avoided me at all cost. The best part is that I recently heard that my boss just got promoted to the VP of the business affairs department.”

    Why a middle management was so daredevil? The Open letter to BlackBerry bosses: Senior RIM exec has told us the reason - No Accountability – Canadians are too nice.

    Above absurd phenomenon seems related with Canadian corporate culture.

    3.4.  Manage-Right Improper Centralized or Decentralized

    3.4.1. Free innovative work environment of IBM and American companies

    April 14, 2014, in the article The DAN of IBM's Success & the Lessons from America's best-run company, I introduced Mr. Kenneth Chang, who emigrated from Hong Kong to United States in 1958 when 40 years old, after 4 years’ work on the production of semiconductor chip from a beginner in GI Company, he transferred into IBM in 1963, and in the following nine years period, he was promoted 4 times to the highest technical position of IBM due to his creative works with many innovations and inventions, which shocked all people in IBM.

    After worked 26 years in IBM, when Mr. Kenneth Chang was preparing for retirement, his immediate executive requested him to summarize his achievements as archives for retaining in IBM. So the book 26-years'IBM career was born with published 5100 copies. 

    Oct. 7, 1995, I fortunately discovered it in a dirty heap of the used books at a Flea Market in North East China. Since then I take it as valuable treasure. In the past 16 years, I have it with me. 

    The book was not only introduced his achievements, but also involved great details of incentive method of IBM for encouraging employees to make creative job. It revealed the secret of IBM growing into Big Blue.

    I deeply believed that the successful experiences of well organized manufacturer are significant for helping other manufacturers’ stable running. It is not only important for whole society, but also for any individual, since it is the preconditions that can provide a stable and peaceful community, in which that people can work and live to enjoy a prosperous life.

    The achievements of Mr. Kenneth Chang should thank to liberal work environment that encourages employees to innovate boldly with incentives.

    Here, I cite an experience when Mr. Kenneth Chang working in GI Company.

    With an Aeronautical radio background, before one week when he stepping on the job position of researching the manufacture of flat diode and triode in GI company, he bought a book on semiconductor knowledge. That was the initial start of his knowledge on semiconductor.

    That was the rapid development period of the integrated circuits, manufacturing technology was not mature, product quality was unstable with a lot of defects. In particular, the geographical environment of temperature and humidity affect the quality of products greatly.

    After one week training on the production line, he started to improve the production process.

    In the summer of 1962, when he was on leave, a phone call asked him immediately return back to company because the production line completely paralyzed with produced a large number of defects’ silicon chips.

    The reason was that, in order to ensure the production smoothly in his leave period, GI Company hired a senior engineer from the large company - Texas Instrument Corp (TI) to work on his position. The senior engineer changed the production by copying advanced methods of TI, but totally failed.

    Kenneth fixed the production with his own methods and explained the reason that he improved the production with the methods that looks simple, even unscientific but were effective than that of being believed as highly advanced ones used in other bigger companies, because of his methods were explored out from constantly trial and error in the practice of daily production. And, he illustrated with the comparison between the samples made in two ways. Since then, his popularity surged in GI company.

    The innovations of Mr. Kenneth were mostly made in daily production without prior application and permission of any managements, and it was same in IBM.

    However, according to my experience from that I have worked Canadian businesses; most of them practice in opposite that of American companies. 

    3.4.2. The manage-authority improperly centralized 

    In the workplace I has been trying to request mechanics to fix some problems as that of machine power cable insulation broken, some machine parts fall off, they are all easy for fixing if it is timely, once delayed may cause big problem. There lesser mechanics can meet my request.     

    I talked to the production manager with the hope getting support; however, the answer was that Company do not allow.

    I think that such a disillusionary result mainly caused by the improper concentration of the management authority.

    Such a manage-authority for daily equipment’s fixing should be decentralized to the common mechanics.

    It is what I called the manage-authority improperly centralized.

    3.4.3.  The manage-right improperly decentralized 

    I have a local friend who run a business for 20 years. We once talked about the management authority of the Supervisors. He took that how to put a chair as an example, said that “in the business of Canada, supervisor has absolute authority for making decisiveness in the workplace. If supervisor lets operator put it as this way, the operator should have to put it as so, and you can not go against instructions." The surprised me was that he was putting the side of backrest of the chair towards the table. What he meant was clear that even the instruction of the supervisor is wrong, but it also strictly enforced.

    Such a practice will cause very bad result that management staffs go their own preferred way, and even dare disregard the instructions of the business owners. The fate of the enterprise is completely determined by the performance based on the personal accomplishment of the management staff. As common sense, in more or less, that management staff can not well distinguish between the rational management and the personal enjoyment from the privileges of dominating others. 

    More terrible is that some of them are with irrational personal quality, they would dare act according to their personal like or dislike in brave enough without any scruples. 

    This is my shock experiences in several Canadian businesses, the behaviors of some supervisors are absolutely harming the business against the normal operation, with a clear manner in venting their anger against business owner.

    In the Canadian Companies that I have worked, there were two of them had to set two supervisors at same time on a position that only needs one. For the reason, I have discussed in the article Family Business and Management Board.

    Dec. 21 2010, in the article Canada's Corporate Management & Reducing Psychological Pressure, I took ABC company and DEF Company as example. The name of companies was in anonymous, but, the facts are from my personal experiences. The two companies once located in Kitchener and Waterloo, Ontario. The ABC company was closed, and the DEF company was moved to Mexico.

    In ABC company, I took a drunkard and heavy smoker John as example. 

    Due to the bad habit damaged his brain; he was unresponsive with hands palsy. He obviously can not do a perfect job, especially the production of PCBs, which needs more mental concentration, hand-brain coordination and deft hands. But, because of that supervisor also was a heavy smoker and at break time they sit down together to smoke with swallowing fog to spit Clouds. 

    John could not do any job properly. Supervisor changed his job position many time, finally arrange him to make final testing for PCBs by a test-machine. Obviously, this was a critical position that controls the quality finally before delivering to customers. 

    Month later, a large number of products’ returns happened from GE, a big customer from the U.S., then the orders reduced, and then Company’ door was being shut down. 

    Obviously, that John has played a key role in the closure of the Company. Intuitively view the issue, we may say that it is a mindless employees to have ruined a good business - good products with stable customers. But the key cause is that supervisor did not kick out such an obvious incompetent operator timely.

    It is that company wrongly decentralized the manage-right to a unqualified supervisor. 

   3.5. Mindless employees ruin good businesses  

    Following is the story of the DEF Company. 

    I once worked in the final section of a production line of DEF Company that located in Waterloo Ontario with 1300 employee, which was a branch of a transnational company headquartered in the U.S. in manufacturing machines of banking and cashing. 

    When I newly work there was with 6 people to assemble machines. My job is installation of electrical wires and switches on the empty case-frame of the machine, and then other people install the parts insides and make final testing for sending to customers.

    In my team, there was a gentleman Jim who was in a very good appearance with good personal civilized, but he was supervising others to slow down their work with smile.

    After first hour of my first day’s work, Jim friendly told me that: “my friend, please do not work too hard like this; you may go to washroom to have a rest, or go to other work station to talk with friends. Any way, you should slow down the work.” Then, I noticed that other people were talking and joking with parts holding on hands, but did not put on machine. Due to that my team was in the final section, thus, the production capacity of whole production line has lowered 50% around. 

    Compared with other Companies, that DEF Company has occupied the top of the supply chain with welcomed end products, it certainly has greater profit margins supported by an enviable team of skilled technicians and operators. So that it should be running better and sustainable. However, it moved to Mexico before outbreak of Financial Crisis 2008. Jim and other 1300 people lost high quality jobs – good paid with good work environment, which is that Prime Minister Stephen Harper has been striving hardly.

    The jobs of our team was similar as that of assembling a big computer, it was not heavy physically and could not work fast also. I am still wondering that why Jim did that? His behavior was no any interest for himself or any others? If it was not what I had seen, I would never believe that was true.

    About half a year later, after the DEF Company was shut down, in a supermarket, I met Jim, at that time; he was looking for a new job after worked a couple of months in a job agency. I felt sadness when talking with him; he was enjoying the bitter fruit that he planted. Viewing from social perspective, he made a big trouble for other 1300 colleagues and their families.

    The mindless employees as that of Jim are common in Canadian businesses, although most of them are not severe in harming production as that of Jim, but their boldly pranks greatly reduce the productivity, it also can cause business failures indirectly. Such as the supervisor John that introduced in my article Family Business and Management Board.  

   People might ask that, why no management person stops their ridiculous behavior? Why do not fire them? The answer is not as simple as that of people's common sense.

   Later, I would like to use the fruits of modern medical researches, from the perspective of human brain, human physiology, human nature, crowd psychology, and social governance to discuss this issue.

   3.6.  3M Canada Saves Energy 30% by ISO50001 revealed the poor in management

   March 13, 2013, the Canadian Manufacturing Online published the report of Power play, said that 3M Canada saves Energy 30% by ISO50001. 

    The achievement was great, but the process was unexpected simple: ISO50001 standard makes all operators and supervisors have defined roles, so that employees try to treat the plant as they would own homes. If they leave a room, they turn off the lights and shut down equipment when it’s not being used. 

    There were reports taking the energy save 30% in 3M Canada as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards?   

    The achievement of energy saving is also reflecting the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the reasons of the manufacturing is in declining.

    4. The impact factors in affecting management

    I think that the corporate management may be the most intricate and most grueling tasks, since it has to deal with the labors – human beings who are with the thinking ability that can act of their own accord.

    In  writing...............

    Nov. 17, 2014, in the article Gregor Robertson a rational Mayor of Vancouver City, I once discussed related issue, I excerpt some as follow. 

    Faced the with that non-energy manufacturing in declining mainly due to that low productivity and the high cost in the relative cost of making goods in Canada, we have reason to question that has Canadian Government well played the governing role? 

    The facts clearly showed that the performance of Canadian government is worse than that of the United States. 

    Then, where is the way out for Canada's manufacturing sector?

    Peter Armstrong who also points out that governments should invest in empowering small businesses to grow and prosper from formerly on attracting big companies to build big factories by writing a big cheque. 

    However, as my view, besides the investment, governments should focus on the adjustment of the policies.

    Money can take limited effect due to it help small businesses that are limited both in number and scale of production and market, which way need a longer time to get return. But the policies can take unlimited effect due to it can help the enterprises that are both unlimited in number and existing scale of production and market, which can get quick and satisfied return.

    According to the studies of Canadian authoritative bodies, and my personal experiences in past decade, with purposefully working in different types of local enterprises in Southwestern Ontario, I am sure that, in current Canadian enterprises, there are a lot of room that can be improved by the enforcement of legislation of State Apparatus of Canada, the way is very simple and affordable for current governments but most effective, and only way for boosting manufacturing with instant huge return. 

    For this purpose, in contrast, the investment of governments has played limited role. I will show you later.

    Now, let see that what is the proper policies from the world's manufacturing giant of natural resource-scarce Germany.

    Nov. 4, 2014, I once wrote an article Smart German created a economic model for Canadian to follow to indicate that the achievements of great Germans lessons us that, the objective economic environment are not the main cause of the economic downturn at all. The key is that the government how to wisely play own governing role to promote the well play of the internal potential. 

    Feb. 16, 2014, I wrote another article Why German Economy Can Fly Against Economic recession to summarize many unique rational policies of Germany, in which, I am sure that many practices in Germany could not practice in any of other democratic countries.

    On March, 2003, the Gerhard Schroder government launched Agenda 2010 to focus on: the economy, the system of social security, and Germany's position on the world market, which includes cuts 25% in the basic rate of income tax, cuts in the cost absorption for medical treatment and drastic cuts in pension benefits, and cuts in unemployment benefits. In which, the key is to lift the job market regulation to increase the flexibility for creating more jobs. It promotes the emergence of a lot of low income work.

    Agenda 2010 has greatly promoted development of German economy, and made Germany from Sick Man of Europe to Economic Superstar, but Gerhard Schroder government had to stepped down in followed election. 

     Canada needs an own Agenda

   The huge potential for boosting manufacturing of Canada.      

    In fact, this is related to inappropriate social governance.    

    The government of Canada must actively create the conditions for the effective operation of the manufacturers, thereby to boost local manufacturers growing up, and to promote more existing successful foreign manufacturers moving in with their technologies, funds, and, especially popular products, by which, to quickly form production scale, market scale, thereby create employment scale and tax revenue scale.

    For this purpose, it is not that government negatively waits for those ill manufacturers to be killed and those health manufactures to be growing up as that of Friedrich Hayek advocated of market self-regulatory. But also, it is not that government positively invests for saving those ill manufacturers and promotes those health manufactures to be growing up as that of John Maynard Keynes advocated of government fiscal stimulus. They are all somewhat outdated due to they are generated in the condition of decades ago.

    Nowadays, the problem is that excess production capacity with a limited market availability.

    The production capacity of one country, such as, China can make daily necessities for whole world, at least nearly. Even one manufacturer, such as, cell phone maker, can meet the need of whole world if the market is available. 

    And also, for the cost-saving concern, the manufacturers have been moving toward low-cost undeveloped countries from developed countries. There are more and more undeveloped countries are developing as manufacturing powerhouses.

    The harsh reality, obviously, is unfavorable for developed country Canada. 

    This time, the magic of the market self-regulatory of the economics of Hayek and the government fiscal stimulus of the economics of Keynes both can not work well.

    Then, where is the effective wand?

    It is the policies that government legislated and enforced for ruling society. For boosting economy, the effect of the suitable policy based on well planned strategy is much effective than that of government investment or subsidies.

    It is the policies, neither economics nor the money, that government of Canada can effectively forge the conditions for helping local manufacturers' operation and attracting foreign manufacturers in consideration of both our strength and weakness. 

    Such as, besides, to improve our poor productivity by legislation as that of I have indicated in my Oct. 26, 2014 article How to revive Canada's non-energy manufacturing?, we also, to compensate the increased businesses operating costs, especially higher salary, by providing some appropriate incentive policies. For example, free full-services, bonded zone, and reduce corporate taxes and so on. 

    Ultimately, it is to make every effort to ensure that operating a manufacturer in Canada is easier than that of in Mexico.

    More importantly, I must specially point out, it is that must strictly prohibit the speculation on real estate with investment purpose in out of living needs, to totally eliminate the plunder of unearned speculators, to ensure business operating easier in low cost and the people who are willingly to make livings by own talent and hard work to be able to live with dignity.  

    Thus, we can avoid that happens in Vancouver, where the speculators on real estates are crazily plundering, the businesses and the locals of generations city builders are fleeing for one's living.

    It is a dead end that promote economy by free real estate market.

     Over-heated real estate market is ruining Canadian economy from Japan mirroring Canada.

    For above concerning, I Google and reedit some experiences that may be helpful for Canada.

Canadian GDP contracted 0.6% in the first quarter

    FXStreet (Mumbai) - The data released by Statistics Canada on Friday showed the economy contracted 0.6% quarter-on-quarter, missing the expectations of a 0.3% gain. This was the first negative growth rate of real GDP since the second quarter of 2011. On a monthly basis, real GDP by industry fell 0.2% in March.
    As per the official report, final domestic demand fell 0.4% after increasing 0.4% in the previous quarter, while Government final consumption expenditure was 0.2% lower. Exports of goods and services decreased 0.3%, following a 0.4% decline in the previous quarter. Exports of goods declined 0.5%, while services increased 0.8%. Imports of goods and services fell 0.4%.
      China-Belarus Industrial Park 

    From China-Belarus Industrial Park - Wikipedia, 

    The China-Belarus Industrial Park is a special economic zone in Belarus, establishedunder the intergovernmental agreement between the People’s Republic of China and theRepublic of Belarus. Theindustrial park was created in the territory of Smolevichsky district, Minsk region,near the Minsk National Airport.

 The Industrial Park in Belarus

2007-2013, Ministry of Foreign Affairs of the Republic of Belarus

http://belarusfacts.mfa.gov.by/print/en/belarus/economy_business/business_opportunities/open_investors/industrial_park/

TheIndustrial park is a territorial entity with the area of approximately80 sq. km with a special legal status for the provision of comfortableconditions for business conducting.

Chinese Enclave In The Heart Of Belarus?

Darya Firsava 21December 2012

http://belarusdigest.com/story/chinese-enclave-heart-belarus-12507

• Darya Firsava is a Minsk-based lawyer working on her PhD and leading a number of educational projects in Belarus. She worked for the Ministry of Foreign Affairs of Belarus and a top-tier Belarusian law firm. Darya authored a number of articles in the area of international economic and commercial law. She holds an honours degree from the Belarusian State University in International Law. Darya was born in Tambov, Russia. All articles 
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