Northern Development Challenges

The North is a resource-rich area that covers almost 85% of the country's landmass but holds less than 6% of the total population. A harsh climate, remote and dispersed resources and communities, a significant Aboriginal population, as well as economic, political and social disparities, are some characteristics that shape the development of the northern economy. These distinctive conditions create both opportunities and challenges in realizing the region's full development potential.

Lack of Northern Awareness
A lack of awareness of northern society, culture and economy leads to inappropriate policies, programs, and services, along with the subsequent loss of potential investment in the North. Informing public and private decision-makers about northern opportunities and challenges will increase their understanding of the North and its importance to the future of Canada.

Infrastructure
The challenge of providing transportation and municipal infrastructure frequently restricts the level of growth in the North. Transportation provides communities with access to the technology, resources, markets, and services necessary for social and economic development. Other infrastructure is also essential to enhance the quality of life in northern communities, especially housing, telecommunications, and facilities for education and health care. Investment in northern infrastructure is critical for the North's development.

Recruitment and Retention
Shortages of technicians, engineers, as well as trades, health care and education workers, are prevalent throughout the North. Best practices in recruitment and retention in the North support competitive salaries and benefits, improved working conditions, and enhanced opportunities for professional development.

Dependence on the Resource Sector
Although primary resource industries drive the northern economy, many communities and regions become dependent on the resource sector and vulnerable to volatile commodity prices and international trade disputes. Greater opportunity, capacity, and incentive to participate in other sectors and to add value to their primary products is vital to diversify the economies of these communities.

Security
The increasing number of international commercial aircraft, cruise ships and other vessels travelling over, by and to the North is placing greater pressure on the region's limited capacity to meet national security and safety objectives. A long-term strategy is required to address northern security, safety, and sovereignty issues as northern resources become increasingly important to the Continent.