Economic Development Policies in Toronto

Introduction

  • Toronto: Rapid economic growth, 2.2% GDP increase since 2009 vs. national average of 1.8%.
  • Contributes over 20% to Canada's GDP and 53% to Ontario's GDP.
  • Official plan directs employment growth to create complete communities.

Challenges

  1. Housing Affordability: Average home cost > $1.1 million (2023).
  2. Inadequate Funding: $26 billion investment for infrastructure maintenance.
  3. Low Productivity: Toronto ranks low internationally; gap widening.
  4. Economic Polarization: Uneven sharing of economic benefits.
  5. Reduced Office Space Demand: Shift to hybrid work models.
  6. Traffic Congestion: Longest travel times in North America.
  7. Climate Change: $1.28 billion health costs from pollution; $1 billion damages from floods in 2024.
  8. Tariff Wars: Threats of high tariffs on Canadian exports to the US.

Economic Development Processes

  • Key considerations in developing economy sectors:
    • Agglomeration effects
    • Linkages (Forward and Backward)
    • Economies of scale

Advantages and Disadvantages of Economic Activities

  • Advantages: Cumulative causation, agglomeration effects, economies of scale.
  • Disadvantages: Agglomeration diseconomies, creative destruction, de-industrialization.

Economic Development Policies

  • Aim to create a cycle of sustainable growth; addressing challenges is crucial.
  • Economic uncertainty stems from slow recovery post-2008/2009 and COVID-19 impact.

Collaborating for Competitiveness

  1. Make Toronto competitive in North America.
  2. Ensure business input availability.
  3. Encourage investment and business formation.
  4. Enhance business growth.

Employment Growth and Job Creation

  • Target: 20,000 new jobs annually; focus on high-value sectors.

Land and Infrastructure

  1. Land Supply: Maintain land for employment to support taxes.
  2. Infrastructure: Essential for transportation of labor and goods; some capacities nearing limits.

Encourage Business Investment

  • Support for SMEs vital; they constitute a key part of the workforce.

Boost Business Growth

  1. Enhance regional value in high-value sectors.
  2. Maintain manufacturing as a mainstay of the economy.

Policies and Marketing Strategies

  • Place branding as a tool for attracting investment; emphasis on quality of life and human capital development.

Place Branding and the Creative Class

  • Discuss compatibility and benefits of place branding with creative class strategies.