Download Snapshots - We Choose Now

SNAPSHOTS: Economic recoveries in other jurisdictions
Estonia’s Economic Development Profile
Background







Since regaining independence in 1991, the Government of Estonia has established a flat
income-tax rate, encouraged privatization and generated sound money within the
economy. These measures have transformed Estonia into an economy with the highest
ratio of startups per person. According to the World Bank, over 14,000 new companies
registered in Estonia in 2011; 40% more than during the same period in 2008.
Estonia is a leader in the technology sector, with tech industries accounting for 15% of
its GDP.
In 2013, Estonia’s nominal GDP and nominal income growth were 5.9% and 7.8%
respectively.
In 2013, Estonia’s productivity rate per employee was 70% of the average of EU
member nations. Although this is a significant increase from its 2000 rate of 47.2%,
Estonia’s productivity rate has grown slower relative to other EU nations.
Over the next five years, the working age population in Estonia is expected to decrease
by 44,000 people, threatening a labour shortage.
The Government of Estonia has established Estonia 2020 with the objectives to increase
Estonia’s level of productivity to 80% of the EU average, and its rate of employment to
80% of the EU average by 2020.
Each year, the Government of Estonia has committed to immediate objectives that
support these ultimate objectives. Objectives for 2015 include integrating long-term and
young unemployed people in the labour market and developing their skills. Estonia is on
track to achieving its 2015 targets.
Strategic Outcomes
To increase the productivity and employment rates in Estonia, the Government of Estonia has
established 15 intermediate objectives within four strategic outcomes:




A cohesive society with improved quality and availability of education and skilled
workers;
A competitive business environment with policy that supports the improvement of the
long-term competitiveness of companies;
An environmentally friendly economy that promotes energy resource savings; and
A sustainable and adaptive state promoting the sustainability of public finances and the
ability to react to changing circumstances.
Key Actions

The Government of Estonia established the Estonian Entrepreneurship Growth Strategy
2014-2020 to increase productivity, entrepreneurship and innovation. By 2020, the
government envisions Estonia as the center for start-ups in the Baltic States, Nordic


countries and north-western Russia, as well as the most attractive country for major
corporation development in central Europe.
The Government of Estonia has established The Lifelong Learning Strategy 2020 to
instill lifelong learning in a rapidly changing creative economy.
In 2012, the Government of Estonia launched ProgeTiiger, a public-private partnership
aimed to teach five-year-olds the basics of coding and to foster entrepreneurship in
schools.
Sources
How did Estonia become a leader in technology?
Estonia 2020
Estonian Entrepreneurship Growth Strategy 2014-2020
The Estonia Lifelong Learning Strategy
Oregon Economic Development Profile
Background





Oregon has experienced rapid job and income growth in 2015 at rates that are quicker
than in other states. Its growth has contributed to an influx of high-skilled jobs.
Oregon’s labour market has returned to two-thirds of its pre-recession levels, and is
expected to reach full employment by 2017. Its annual GDP growth has been 3.6%.
Oregon’s unemployment rate in 2015 was its lowest in eight years at 5.2%.
Oregon’s population has been projected to reach 4.35 million by 2022, with an annual
growth rate of 1.16% between 2014 and 2022.
Oregon’s comparative advantages include a well-established industrial structure and
strong in-migration flows. Its strongest industries are health care, manufacturing,
professional and business services and hospitality.
Guiding Principles
In 2012, the Government of Oregon created Oregon’s 10-Year Plan, and committed to creating
a diverse, dynamic economy that drives job creation and prosperity for all. Oregon’s 10-Year
Plan comprises the following strategies:




Streamline efforts to attract, grow and support businesses;
Coordinate with local governments and private sector associations;
Develop a dynamic and resilient workforce, and
Create better opportunities for people to transition off of public assistance and into living
wage jobs.
Key Activities

The Government of Oregan has invested in the following economic clusters with the
most exports and greatest potential for creating high-value jobs and attracting capital




investments: Natural Resource Industries (e.g. agriculture, forestry), Advanced
Technology (semiconductors, software), Fabricated Metals (transportation and medical
equipment) and Clean Technology (biomass energy, green building and development).
Its sector and cluster strategies are industry-driven partnerships.
The Government of Oregon has prioritized the middle “40” of its 40/40/20 education plan
by increasing the number of adults earning associate degrees and other postsecondary
credentials.
The Government of Oregon has committed to improve the coordination of private and
public resources (e.g. universities, economic development, not-for-profits, microcredit
organizations) to cultivate emerging businesses and entrepreneurship.
The Government of Oregon has created opportunities for women and minorities in jobs
and business development.
The Government of Oregon has leveraged its educational resources and invested
strategically in programs that support the present and emerging needs of its economy.
Sources
Oregon's 10-Year Plan
Oregon Economic and Revenue Forecast
Scotland’s Economic Development Profile
Background





Scotland’s economic strengths include its highly skilled workforce, its international
reputation for innovation and its strong presence in the global market, with exports and
investments in a diverse range of sectors.
Scotland’s economic success has been challenged by its income inequality. Although
ranked lower than in other UK countries, Scotland’s level of income equality has been
ranked 20th in the OECD index. The OECD estimates that rising income inequality
reduced GDP growth in the UK by 9% between 1990 and 2010.
The Government of Scotland considers fairness to be essential to the sustained, longterm prosperity of its economy.
In 2007, Scotland’s Economic Strategy was established to affirm the Government of
Scotland commitment to sustainable economic growth. To achieve sustainable growth,
the strategy focused on increasing competiveness and fairness.
In 2013, Scotland returned to its pre-recession levels of economic growth and reached
record levels of employment.
Strategic Objectives
Scotland’s Economic Strategy has been guided by the following strategic objectives:


Invest in people and infrastructure in a sustainable way;
Foster a culture of innovation in business through entrepreneurship and
commercialization of research and development;



Promote inclusive growth and create opportunity through a fair and inclusive jobs market
and regional cohesion;
Promote Scotland on the international stage to boost trade and investment, influence
and networks; and
Meet these objectives through a whole-of-economy approach that emphasizes
partnerships with other sectors and levels of government.
Key Activities






The Government of Scotland has introduced the most competitive business rate scheme
in the United Kingdom.
The Government of Scotland has established a Scottish Business Development Bank to
support SMEs with high growth potential.
The Government of Scotland has committed to measures to boost business investment
in innovative activity.
The Government of Scotland has designed the Curriculum for Excellence to instil
ambition at all stages of the learning process.
The Government of Scotland has pledged to provide 30,000 new modern
apprenticeships every year by 2020.
The Government of Scotland has created a seven-year strategy in response to the
Commission for Developing Scotland’s Young Workforce’s final report.
Sources
Scotland's Economic Strategy
New Zealand Economic Development Profile
Background




Although New Zealand had a record high GDP of $188.38 billion USD in 2013, its
income per capita has been ranked below average in the OECD index, resulting in
productivity and income growth that is slower than other OECD countries.
Approximately 70,000 New Zealanders left the country over the past decade in pursuit of
more promising economic prospects elsewhere.
The Government of New Zealand identified productivity as a primary contributor to
income growth and well-being.
The New Zealand Productivity Commission was established in 2010 to advise the
Government of New Zealand on how to improve productivity in ways that would support
the overall well-being of New Zealand’s diverse population.
Guiding Principles
The work of the New Zealand Productivity Commission has been guided by the following
principles:





Maximize productivity through generating more value from all resources including
raw materials, skills and knowledge;
Enhance the level of openness and competition in markets to improve allocation of
resources and produce more dynamic performance;
Promote ongoing training and business improvement;
Improve the quality of education and attitude of students towards the value of
learning; and
Improve the quality of government decisions in setting policy and sharing regulatory
environments.
Key Activities




The New Zealand Productivity Commission developed a Productivity Hub in
collaboration with other government agencies to improve the coordination of research.
The Hub is addressing gaps in knowledge and has improved the contribution of policy to
productivity growth.
The Commission engages stakeholders in its work through expert consultations, surveys
and focus groups in order to enhance public understanding of productivity
The Government of New Zealand accepted reports and recommendations made by the
Commission, including recommendations relating to increasing productivity in the service
sector and regulatory agencies.
The Commission publicly reports its periodic progress reviews on New Zealand’s
productivity.
Sources
New Zealand Productivity Commission
New Zealand GDP
OECD Economic Survey: New Zealand
Saskatchewan Economic Development Profile
Background


In the early 1990s, with a GDP of $21.8 million and a debt-to-GDP ratio of 33.6%,
Saskatchewan’s economy was characterized by a fiscal deficit, shrinking population,
declining employment and slow growth.
In 2004, the Government of Saskatchewan created A New Vision for Saskatchewan to
rebound its economy. A New Vision for Saskatchewan attributed Saskatchewan’s poor
economic performance to fiscal policy, program spending, mega-project debt financing,


loan and grant provisions and Crown corporations that cumulatively encouraged the
private sector to be reliant upon the public sector for economic growth and prosperity.
A New Vision for Saskatchewan characterized the private sector as being the primary
driver of economic growth in the province. Rather than directly intervene in the economy
through investing in businesses, the role of the Government of Saskatchewan became to
create an environment of opportunity in the province so that businesses and individuals
could create growth.
By 2013, Saskatchewan had grown its GDP to $83.2 billion and shrunk its GDP-to-debt
ratio to 5.1%. It also accelerated its population growth to a rate of 1.5-1% per year, and
shrunk its unemployment rate to 4%.

Guiding Principles of Saskatchewan’s New Approach
The Government of Saskatchewan’s economic development policy has been guided by the
following principles:
•
Invest in infrastructure that is required for growth;
•
Educate, train and develop a skilled workforce;
•
Ensure the ongoing competitiveness of Saskatchewan’s economy;
•
Support increased trade, investment and exports through international engagement;
•
Advance Saskatchewan’s natural resource strengths, particularly through innovation, to
build the next economy;
•
Ensure fiscal responsibility through balanced budgets, lower debt and smaller, more
effective government, and
•
Avoid direct intervention in the economy
Key Activities
•
The Saskatchewan Immigration Nominee Program has brought in 32,000 immigrants
since 2007. The Government of Saskatchewan committed to increasing its immigration
cap through negotiations with the federal government.
•
Saskatchewan’s business tax is 12% (2% for small business, threshold of $500,000)
•
Innovation Saskatchewan has been developed as central agency supporting innovation,
science and technology with a focus on R&D, commercialization, commercial
demonstration, technology transfer and infrastructure (labs, innovation sandboxes).
•
Between 2007 and 2012, the Government of Saskatchewan has invested over $3.5
billion in post-secondary education and skills training programs to ensure education and
training met the needs of its economy.
Source
http://gov.sk.ca
South Carolina Economic Profile
Background




South Carolina’s unemployment rate reached a six year low of 5.5% last year.
Industries experiencing high job growth include construction, manufacturing and leisure
and hospitality. Agricultural and forestry industries have also contributed, with $34 billion
in economic impact and nearly 200,000 jobs.
In 2014, new businesses invested $5.088 billion into the economy and created 19,020
new jobs. Thirty per cent of these new jobs were located within economically distressed
rural communities. Over the past 15 years, rural counties collaborated to create seven
regional economic development alliances to improve competitiveness.
In 2014, South Carolina exports increased by 13%, to a record value of 39.7$ billion.
Most of these were in the auto and manufacturing sectors.
As of 2014, South Carolina’s GDP was $190.3 billion. Its GDP growth rate has been on
par with the national rate of 2.2%.
Guiding Principles



In 2013, the Government of South Carolina created an Innovation Strategy to improve its
economic competiveness and standard of living for all citizens. The strategy has both
short-term (two years) and long-term (five years) goals.
Implementation of the Innovation Strategy has been guided by the following objectives:
Develop a critical mass of high-tech firms in targeted clusters;
Ensure South Carolina’s innovation community is well-connected with ample
opportunities for networking;
Ensure entrepreneurs have adequate access to funding for all stages of business
development; and
Ensure South Carolina’s workforce is equipped with the skills and knowledge that
tomorrow’s high-tech companies will require.
South Carolina’s Science and Technology Plan has been created in support of the
Innovation Strategy and has improved K-12 education, STEM higher education, and the
South Carolina Research Enterprise.
Key Activities

New Carolina, South Carolina’s organization for cluster development, has activated
fifteen clusters across the state. Incubator support has been provided to the following
clusters that bring the highest value jobs to the economy: Transportation, Distribution
and Logistics Cluster, the Digital Media and IT Cluster, the Advanced Materials Cluster,
and the Advanced Manufacturing Cluster.

The Government of South Carolina has created 12 Regional Education Centers to
connect educators, students and parents to the job opportunities and training required
for in-demand careers in their own backyards.
The Government of South Carolina has committed to increase the visibility of resources
available to entrepreneurs, as well as opportunities for geographically dispersed
entrepreneurs, technical experts and investors to network.



The Government of South Carolina has committed to increase the number of venture
capital firms with a physical in-state presence, the amount of venture capital funding
available to entrepreneurs, and angel and R&D investments.
The Government of South Carolina established the Office of Innovation within the
Department of Commerce in 2013. Its first round of grants were awarded through the
South Carolina Innovation Challenge, which directed $2.4 million in state dollars toward
14 organizations in 11 counties of the state.
Sources
South Carolina Department of Commerce Reports
US BEA: South Carolina Profile
SC economy ‘firing on all cylinders’
The South Carolina Model
South Carolina Department of Finance, 2014 Activity Report