“Competition, the Key to Unlocking Canada’s Economic Potential”
In a world where economies are constantly evolving, the need for competition has never been more crucial. Matthew Boswell, the Commissioner of Competition with Competition Bureau Canada, warns that Canada is facing a productivity crisis that threatens the well-being of its citizens and the growth of its economy. The urgency of the situation is undeniable, as even the Bank of Canada is signaling for immediate action to be taken.
The Power of Competition
The evidence is clear – competition is the key to unlocking productivity and fueling economic growth. Studies have shown time and time again the positive impact that increased competition can have on economic performance. When companies face competition, they are forced to innovate, invest, and provide better services at competitive prices. However, without meaningful competition, companies become complacent, leading to higher prices for consumers and a lack of innovation in the economy as a whole.
Challenges and Solutions
Canada is facing a competition problem, with outdated regulations and policies creating barriers that hinder competition. Despite recent positive changes to strengthen the Competition Act, there is still much work to be done. Boswell suggests a three-pronged approach to address this issue:
1. Drawing inspiration from successful competition reforms in other countries.
2. Setting clear, measurable targets for change and making competition a priority in all sectors of the economy.
3. Investing in institutions and research to better understand the impact of competition and empower regulators to push back against anti-competitive practices.
It’s Time for Change
To unleash Canada’s economic potential, bold and long-term economic policy decisions rooted in competition must be made. By tearing down barriers to competition and fostering a competitive environment, Canada can generate unprecedented returns for current and future generations.
As Boswell aptly puts it, “If we heed the alarm bells and move to tear down barriers to competition today, we can generate unprecedented returns now and for future generations.” It’s time for Canada to embrace competition as the catalyst for economic growth and prosperity.
Reference
