Continuation

CHALLENGES

Lack of identity of wetland resource: We have been slow to recognize that wetlands contribute significantly to the Canadian economy. As such, we must characterize and quantify the economic impacts and social benefits of each of the sectors or sub-sectors involved in the wetlands industry. Part of the difficulty has been that the wetlands industry is diverse and the business enterprises perhaps unconventional. The wetland resource can and should be viewed in the same way as other natural resources such as forests, fisheries and mining. It is likely to be revealed that wetlands contribute as much or more to the economic well being of Canadians as other resource sectors. Wetlands have been a component of the landscape that has been difficult to differentiate from other landscape units. There is now consensus in the scientific community that wetlands are distinctive and unique landscape units and that perhaps only Russia has more wetlands than Canada. The wetland resource needs to be managed differently than other resources and in ways that are specific to wetlands.

Lack of recognition of the wetland industry: Canada has a long and well-established history of business involved with wetlands. The industry is different in some ways than other industries. It is also diverse and difficult to define clearly which may have contributed to its low profile or apparent lack of identity. Clearly, there is a large industry linked to this common wetland resource. The wetland resource is something that can be regarded as uniquely Canadian.

Lack of tools for resource economic evaluation: After more than 20 years of work, there are tools, such as a Canadian Wetland Classification System (Warner and Rubec 1997), that are important first steps in characterizing the wetland resource of the nation. Canada was one of the first countries in the World to have a national wetland classification system. Also, in spite of its large size, we have a good first approximation on the nature and extent of Canadian wetland resources though improvements are still required. There is however an urgent need to develop tools to allow assessment on the value and economic impact of the wetland resource of Canada. Regional tools for some aspects of wetland significance exist but nothing nationally. Methods and models for quantifying some aspects of the economic contribution of wetland resources also exist, and even some specialized tools exist for some small sectors of the wetlands industry (i.e. Dufournaud et al. 1999). However, much that has been done is localized geographically and unrepresentative for the wetland industry as a whole. Economists and wetland specialists must work closely together to better assess the true economic worth of the Canadian wetland industry.

The available techniques need to be explored and tested or modified to suite the various sectors in Canada’s wetland industry. There may also be the need for new techniques to be developed. Confidentiality reasons may prevent some information from being available to adequately assess and quantify economic impacts. Estimating economic impacts in some sectors may prove difficult. However, we should attempt at least good first approximations. This would be more than what currently exists.

Industry is comprised of small enterprises: Many of the businesses are small enterprises – many being family-run operations. There may be reluctance or a feeling of being “too small to count.” Individual operations, indeed, may be too small to influence or regulate their own industry in areas such as pricing, total supplies, production quotas, product quality, industry codes of ethics or other business aspects that will ensure their position in the economy. Regardless, there is much to be gained by working together and pooling resources as a group of independent operations or businesses, not unlike other associations, councils, and administrative units representing business enterprises.

Industry is intermittent: Much of the wetland industry is seasonal with many operations or activity occurring in the spring-summer-fall. This is not a characteristic unique to the wetlands industry, being true of most natural resource industries.

Industry is diffuse: Much of the business involved the wetland industry are widely scattered, being located in rural and remote regions of the country. This is both a weakness and strength in that they are situated in economically disadvantaged parts of the country. The wetland industry may be the sole economic activity in these regions.

Non-entrepreneurial mindset: There must be a willingness to change old ideas on how some sectors of the natural resource sector, in general, and a readiness to accept the new and different requirements offered by wetland resources to take full advantage of the economic opportunities. For example, even though business as usual in non-wetland may be “easier” than wetland, there must be an open-mindedness to accept the new challenges and economic opportunities of wetland resource.

BARRIERS

The Canadian wetland industry’s enterprises have been slow or reluctant to recognize themselves and the value of their existence. To some, the very concept of a wetland industry may seem strange or unnecessary. Efforts, therefore, should be made to raise the profile of the wetland industry and its contribution to the Canadian economy. As such, there is considerable merit in the industry coming together to identify a common purpose and the diverse and cross-linked interests in the wetland resource.

OPPORTUNITIES

There are many opportunities that can be promoted by common action:

• The Canadian wetland resource is huge
• No other country has as the extent and diversity of wetland resources as does Canada
• Canada has been a world leader in recognizing the importance and value of wetlands resources and has the unique opportunity to (and obligation) to continue to be a leader
• Canada has a long history of entrepreneurship and innovation with respect to its wetlands resource that have led to prosperous businesses and contributions to local and national economies
• Canada’s wetland industry is a well kept secret that must be promoted and have its profile raised both nationally and globally
• The wetland industry has much potential to expand existing activities and move into many new, as yet, under-exploited sectors
• Canadian businesses can work with each other and can assist and teach other nations about Canadian approaches, policies and technological innovations internationally
• The Supplies and Distribution and Services sectors in the wetland industry represent major areas for growth
• A large part of what the wetland industry does involves “green” ecologically friendly technologies that are the technologies of the future

RECOMMENDATIONS

1. A national workshop should be organized with representatives of the various wetland industry sectors and other stakeholders involved in the wetland industry as a means of recognizing, promoting, supporting and producing a product representing the wetland industry in Canada.
2. Representatives of the wetlands industry should establish an association to represent their interests, give profile to and develop sound business and management practices (including sectoral Codes of Conduct) for the on-going wise-use of wetland resources.
3. A “Wetland Industry Association” should develop partnerships with other businesses, governments, and public enterprises, both within Canada and abroad.
4. Organize an annual National Wetlands Trade Fair and Information Forum
5. An economic study should be undertaken that characterizes and quantifies the contribution of the whole wetland industry in Canada, sector by sector, including gross economic output, spin-offs and multiplier effects (as suggested in Table 2).
6. Economic development assistance programs should be put in place to support existing activities and encourage new growth of the wetland industry, especially in view of the fact that the wetland industry is a major economic driver in economically disadvantaged regions of the nation.
7. Provide information, know-how and financial support to small to medium size entrepreneurs interested in establishing wetland businesses such as through existing government programs (i.e. Industrial Research Assistance Program of the NRC) or through private organizations (i.e. Canadian Innovation Centre or through financial institutions).
8. Products and Manufacturing Sector:
   • work towards adopting an industry policy on the wise use, management and protection of wetland resources
   • adopt an industry product certification program
   • develop an industry long-range resource plan for the wise-use, management and protection for wetland resources and more detailed marketing plans for specific subsectors
   • assess the potential feasibility of adopting a resource utilization levy for reinvestment into the management and protection of future wetland resources
9. Supplies and Distribution Sector:
   • probably similar to recommendations given for the Products and Manufacturing Sector
10. Services Sector:
    • compile a directory of businesses in the services sector
    • support the training and accreditation of wetland professionals
    • have wetland resources recognized and governments take on responsibilities for wetland resources as they have for other natural resources in Canada (i.e. forests, fisheries and mineral resources. Wetland resources are the only natural resource sector not recognized by federal or provincial governments in Canada.
11. Knowledge Sector:
    • support the compilation and publication of a volume on state-of-the-art information on Canada’s wetland resources
    • support and provide funding for the resurrection of Canada’s National Wetland Working Group
    • continue with exploration, assessment and inventory of the whole wetland resource in Canada
    • opportunities for R & D business partnerships between research enterprises and specific sectors of the wetland industry should be identified, prioritized and funded (i.e. R & D tax credits)

ACKNOWLEDGEMENTS

I am grateful to my wetland colleagues, entrepreneurs, innovators and business associates in Canada and abroad for thoughtful discussions over the years who shared ideas and experiences with me so that I could write this paper.

REFERENCES

British Columbia Ministry of Agriculture 2002. Cranberries. Plant Products, Ministry of Agriculture, Food and Fisheries, British Columbia. (http://www.agf.bc.ca/aboutind/products/plant/cranberry.htm).

Daigle, J-Y. H. Gautreau-Daigle, and D. Keys. 2001. Canadian Peat Harvesting and the Environment. Second edition. North American Wetlands Conservation Council (Canada), Sustaining wetlands Issues Paper,No. 2001-1. Ottawa, Ontario.

Ducks Unlimited Canada 2001. Annual Report 2001. Ducks Unlimited Canada. Stonewall, Manitoba.

Dufournaud, C.M., J.T. Quinn, A. Olinsky, and B.G. Warner. 1999. Calibration of cost functions for individual firms as an alternative to estimation: An application to New Brunswick peat-mining firms. Environment and Planning 31:551-558.

Environment Canada. 2001. Putting an Economic Value on Wetlands – Concepts, Methods and Considerations. Great Lakes Fact Sheet. Environment Canada. Downsview, Ontario.

Rubec, C.D.A., P. Lynch-Stewart, I. Kessel Taylor and G.M. Wickware. 1988. Wetland utilization in Canada. Chapter 10 in Wetlands in Canada. Environment Canada and Polyscience Publications. Ottawa, Ontario.

Vandenberg, J. and G. Parent. 1999. Profile of the Canadian Cranberry Industry. Report? Fact Sheet? Market Industry and Services Branch, Agriculture and Agri-Food Canada. Ottawa, Ontario?

Warner, B.G. and P. Buteau. 2000. The early peat industry in Canada, 1864-1945. Geoscience Canada 27:57-66. Warner, B.G. and C.D.A. Rubec (editors). 1997. The Canadian Wetland Classification System. Second Edition. National Wetlands Working Group. Wetlands Research Centre. University of Waterloo. Waterloo. Ontario.