Special Report B.C. & Brazil: what do they have in common? An Economic perspective ByYgaen Hansen *

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What does British Columbia have in common with Brazil? It too has dual economies, one on top and one at the bottom…

At the feet of the highly visible high-tech, glamorous real estate, and financially sophisticated sectors of the economy, lies the valley of “the traditional sectors,” those which made what BC, Canada, is today: its lumber, agriculture, retail, and tourism sectors.

The “upwardly mobile” sectors are the ones which we try to climb. It is enough to take a cursory glance at the public billboards promising careers in computers, financing, and portraying the rich, real estate rewards to be had from those endeavours. In these sectors we are told, intelligence,effort and being able to pay for an education, is all it is needed to succeed.

In 2001, 29.3% of workers were employed by the best paying sectors: finance and insurance, professional, manufacturing, and construction. This represents a slight decrease from 1997 (29.9%.)

While getting up the mountain is labourious, its promises of wealth and excitement entice many to take this route. However, the slide down the mountain is inevitable in many cases since higher profits attract new players and fierce competition ventures are perilous.

At the bottom, is where the “traditional economy” rests.

The image of a pastoral, home-coming to the valley, where a welcoming economy awaits us if one is forced down the “mountain”, is true only for a few in British Columbia. And may be this is a blessing in disguise, because it is not an efficient arrangement.

If someone lost his/her job in the volatility of the high-tech, real estate, or finance sectors, and got a job right away in the traditional economy, then he/she probably is the son/daughter of three-generation residents of British Columbians. Because the traditional economy in B.C., is very similar to traditional economies anywhere in the world, well established family ties and carefully nurtured friendships are in the end, what guarantees survival – not government programs.

During the slow economic times, you are likely to find the most disgruntled, ill-equipped employees in the “traditional” economy. These are people who sled down the mountain of the new economy, or who are planning their trip up. Those well suited to perform the often casual and temporary jobs available in the traditional economy (and interested in doing so because it matches their career paths), become displaced by the boss’ in-laws and friends. Similarly, those displaced from their jobs in the “traditional” sectors, apply (and may get) jobs where lesser training and experience are required.

Many people resort to lying about their resumes, not to portray themselves as being more skilled than they are, but to portray themselves as being less skilled and more suitable to less attractive jobs.

So the secret is out, BC, Canada, if your tourism paradise is somewhat shaded by poor service, ask yourself if the BC economy is in a slump. If it is, you are being probably assisted by displaced employees.

BC, like Brazil, has a “traditional” sector strongly influenced by social ties which employ people ill suited for jobs, not unlike many other economies around the world. The difference in Canada, is that you would never see it during economic booms and that the “traditional” sector is a smaller share of the total economy.

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(1) Statistics were obtained from the Statistics Agency of the Britsh Columbia government. These sectors were chosen because they are the most closely related to finance, real estate, and the high-tech sectors.

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(*) Ygaen Hansen represents North American manufacturers in Brazil and Brazilian companies in North America. She also teaches Microeconomics and Statistics at the University of Phoenix, Vancouver Campus. Mrs. Ygaen Hansen is the daughter of a Brazilian and considers Brazil her home.

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