Peter Nicholson & Jeff Larsen • Guest Opinion
As we finally see the glimmer of light at the end of the long, dark COVID tunnel, it is time to ask: “What’s next?”
The world has been through a war (not yet over) and now faces the challenge of recovery. The lesson of the Marshall Plan following the Second World War is that war, despite its horror, creates a unique opportunity to “build back better.”
Those three words have become a mantra worldwide. In Canada’s case, they headline the federal government’s pledge to invest between $70 billion and $100 billion over the next three years to support an economy that is “greener, more innovative, more inclusive and more competitive.”
Opportunity abounds in Nova Scotia
Nova Scotia has an opportunity to be in the vanguard of the global and national movement to build back better. Before the pandemic hit, the province was on a roll — immigrants were choosing to come; young people were staying; other Canadians were making Nova Scotia home; innovative businesses were sprouting everywhere (and not just in Halifax). Hard as COVID has been on Nova Scotia’s social and economic welfare, our handling of the pandemic has been a model in North America which can confer a lasting reputational advantage.
So by building back better, Nova Scotians can more than pick up where we left off.
We believe that six broad policy priorities should anchor Nova Scotia’s strategy to build back better for the long run. Following are very brief summaries, recognizing that each needs to be elaborated for implementation. Some are more ready for “prime time” than others; some merit higher immediate priority; some require partnership with the federal and other governments. Strategic sequencing will be required, but there is more than enough to get started right away.
1. Develop and acquire talent — it’s the most valuable resource. This could include extending early childhood learning to age three, since early years create the foundation of human potential. The government should eliminate or greatly reduce tuition at NSCC for residents of the province, recognizing that skills beyond high school are now table stakes. Nova Scotia should steadily increase its percentage share of Provincial Nominee immigrants, at least to the national average and as long as we can absorb them productively. Finally, we should proactively identify and recruit individuals with demonstrated entrepreneurial talent, since they are the ultimate job creators.
2. Embrace the digital transformation — we’re still only at the beginning. Universal broadband access is a must. While Nova Scotia has made tremendous progress, we need to finish the job ASAP. Because we need all of our students to have digital access, we should provide free Chromebooks for students in grades 3, 7 and 10, complemented by continuing digital training for teachers. Nova Scotia should aim to more than double the enrolment capacity of computer science degree and certificate programs and develop or intensify sector-specific digital skills training, guided by collaboration between business and post-secondary institutions. Further, we should urge the federal government to re-institute a Digital Technology Adoption Program (delivered formerly, Canada-wide, by IRAP) aimed at the small and medium-sized business sector, which has lagged in digital transformation.
3. Lead in digital and virtual health care — get ahead of the future. The province should embrace the rapidly advancing field of digital health as: 1) the way to provide better and more accessible and inclusive care, and 2) a potentially vast new economic opportunity. This involves, for starters, making the electronic health record (a lifelong digital history of an individual’s interactions with the health system) a top priority since the EHR is the foundation of a digital health strategy. If we have learned anything from COVID, it is the need to rebuild a robust, digitally enabled public health infrastructure for the 21st century. Initially, we should focus on digital health applications for rural areas and for care of the elderly at home and in facilities. Finally, Nova Scotia should propose to partner with the federal government to establish — initially on a demonstration basis — a “Digital Health Innovation Fund” to support pilot projects and procurement from Nova Scotian innovators. If successful, this Nova Scotia-based proof of principle could be implemented nationally.
4. Take climate change seriously — and profit from it. Premier Iain Rankin has rightly established environmental sustainability as a top priority. It’s where the world is headed. Nova Scotia should focus on opportunities in electricity generation, transportation, and buildings which constitute almost 90 per cent of current GHG emissions. We should work with the other Atlantic provinces to implement the Atlantic Loop, a transmission infrastructure project that would enable clean electrification for the future of the Atlantic region. We need to invest heavily in battery and grid storage R&D. This is a field where Nova Scotia-based researchers have genuine world-class skills to build on with Tesla, Novonix and others. This technology is the critical component needed to expand storage of intermittent forms of renewable energy, notably wind and solar. At the same time, the province needs to prepare for the electric vehicle — e.g., with charging infrastructure, and use of car batteries for off-peak storage. The provincial government should enhance the capacity of Efficiency One to support the residential and commercial transition away from oil heating, including through increased subsidies for solar and heat pump investment to offset upfront costs.
5. Promote “Localhood”— a unique Nova Scotia advantage. Net migration to the province is on the upswing; evidence that more and more people want to live here. How can we amplify this new opportunity while turbo-charging tourism? One way is to better connect Nova Scotia — e.g., finish twinning all 100-series highways; build best-in-class networks of bike and hiking trails, and enhance community and active transit. We need a multi-year strategy to develop Nova Scotia’s lifestyle assets to attract not only more tourists but especially remote workers and “digital nomads,” recognizing that existing residents will benefit equally. To that end, the province, ideally in partnership with the federal Atlantic Canada Opportunities Agency (ACOA), should create a “Localhood Community Development Fund” for mainstreet improvements, local food and cultural attraction, as well as recreational spaces and facilities. The strategy to retain and attract far more young people must include expanded support for investments in innovative affordable housing — e.g., expanding eligibility through community or equity tax credit programs.
6. Catalyze innovation — the ultimate source of social and economic value. The province should more effectively target foreign direct investment (FDI) incentives by reallocating funds traditionally spent on “payroll rebates” to “Innovation Vouchers” that would be redeemable at Nova Scotian companies and institutions. To keep the front end of the innovation pipeline in good condition, key incubators and accelerators such as Volta and Ignite Labs need continued support. And as the local innovation ecosystem matures, the government’s early-stage innovation investment should gradually shift from public to private management. Meanwhile, we should build on the Oceans Supercluster model to create smaller, focused clusters in certain high-potential sectors like Agrifood, Cleantech, and Healthtech.
So how are we going to pay for it?
This six-point plan may be all well and good, but how are we going to pay for it? First, and most fundamentally, what we are proposing are investments, and the conditions for long-term, low-cost borrowing to finance investment in the future have never been more favourable.
In fact, these investments are essential for the future competitiveness of Nova Scotia’s economy and therefore pay for themselves if properly designed. Second, if Nova Scotia is quick off the mark with a coherent plan, it will be well-placed to qualify for a good share of federal “build back better” funds. Finally, thanks to the fiscal discipline of the provincial government over the past several years, Nova Scotia is now in a position to spend what is needed to build back better.
Got ideas on how Nova Scotia can bounce back, post-pandemic? Email us.
Peter Nicholson is former chief of staff policy for Prime Minister Paul Martin and the retired founding president of the Council of Canadian Academies. Jeff Larsen is lead of Creative Destruction Lab-Atlantic at Dalhousie University. See PolicyWonks.ca for more information.
