Tag: Alberta Economy

China’s CNOOC Ltd.’s $15.1 billion bid for Calgary basedNexen Inc. reflects a growing interest among state-owned Asian energy companies in Alberta’s oil sands. In addition to China, three state-run Indian companiesare eyeing oil sands assets held by ConocoPhilips, jointly offering $5 billion this past July for six of its properties.

While many are skeptical of Asia’s foray into the oil sands, there is plenty to be gained by strengthening economic ties with China and India.

Although much has already been written about foreign direct investment spurring growth in the oil sands, collaboration with China and India can also address other challenges impacting the sector, as well as Alberta’s economy as a whole.

Labour shortages are by far the biggest challenge to Alberta’s economy. Demand in the oil and gas sector for workers with technical and professional skills is not being matched. Further, with the high wages being offered by that industry, workers are being driven away from other sectors of the economy, leading to a chronic labour shortage — as well as a rise in inflationary pressures — which is being felt across the province.

Solving Alberta’s labour crunch requires innovation and bold action to allow employers in the province to identify talent and entice them to live and work in Alberta.

To this end, Alberta’s colleges and universities must play an integral and much more proactive role in alleviating the province’s chronic labour shortage. Not only in training and developing young Albertans, but also connecting the province’s employers to talent the world over. This should go well beyond the international student programs operated by nearly every post-secondary institution in the province. Instead, focus should be placed on developing larger, longer term programs to train and recruit international talent to Alberta.

For instance, Alberta can benefit from recent social and legislative developments in India, which have sparked a revolutionary change in attitudes towards and opportunities for higher learning in that country.

India is experiencing a post-secondary education boom. With a middle class that has grown from the liberal economic and trade reforms of the 1990s, demand for diplomas and degrees have soared, and are seen as key to social mobility and economic advancement.

By 2020, 44 million Indians are expected to be enrolled in the country’spost-secondary education system. During the same period, the number of colleges and universities in India are expected to triple.

In order to meet the demand for higher learning, the Indian state has responded by passing legislation that would allow for foreign post-secondary institutions to establish campuses in the country. In doing so, Indian legislators hope to provide Indians greater access to the world’s leading post-secondary institutions, in addition to opening a growing sector of its economy to foreign investment.

For Indian students, instead of leaving home and paying hefty fees to attend school abroad, they can now or will be able to attend the likes of Virginia Tech, Carnegie Mellon, Warwick University and Schulich School of Business (York University) in their very own states.

In most instances, not only are the fees cheaper and the curriculum the same as their sister campuses, but students are able to complete their final semester in the home country of their college or university. This allows Indian students to obtain internationally recognized diplomas and degrees, making it easier to attain employment and immigration abroad — the goal of many.

For colleges and universities in Alberta, India offers a particularly unique opportunity.

In an era where governments are scaling back funding to post-secondary education, India presents itself as a lucrative opportunity. Alberta’s colleges and universities can make up funding shortfalls by expanding into India, with its large market, significant growth potential, and cheaper start-up and operating costs.

Further, Alberta’s post-secondary institutions can provide employers in the province with unprecedented access to India’s talent pool. Indian graduates, with their familiarity with English and strong technical skills, are aggressively sought after around the world. By being on the ground, Alberta’s colleges and universities can do a better job of identifying, developing and connecting Indian graduates to employers and industries in the province.

With respect to Alberta’s trades and technical schools, such an expansion could be especially beneficial. A shortage in trades workers is particularly acute in the province, due in part to differing regulatory requirements and expertise that make it difficult for workers from foreign jurisdictions to easily enter Alberta’s workplace.

However, by allowing NAIT, SAIT or other colleges to establish campuses in India, and offer the same trades programs and opportunities for apprenticeship in Alberta, we can standardize the training with provincial requirements. As graduates make it through the program, they can be fast tracked into Alberta on a temporary workers permit, which after the set period and application can turn into permanent residence, and eventually citizenship.

Not only will salaries and guaranteed employment opportunities draw Indian students, but a program such as this would ensure that Alberta employers are targeting individuals who have the appropriate skills and expertise to address their particular needs.

As Alberta’s economy continues to grow, novel solutions need to be developed to address the unique challenges confronting it. This requires creativity, thinking big and taking risks.

Fortunately, Albertans have a long history of doing just that.