Canada Urged to Prioritize Economic Diversification and Regional Representation Ahead of Federal Election, Says New Report
Los Angeles/Ottawa (DNA) – As the Canadian federal election approaches on April 28, a new report by the Berggruen Governance Index (BGI) has recommended that Canada prioritize navigating an economic downturn and addressing systemic issues, such as economic diversification and regional representation.
The report, conducted by researchers from the Los Angeles-based Berggruen Institute think tank, the Luskin School of Public Affairs at the University of California Los Angeles (UCLA), and the Hertie School, a German university, highlights Canada’s vulnerability to economic downturns due to its heavy reliance on extractive industries and exports to the U.S.
“Although it is wealthy by global standards, Canada’s economy faces key vulnerabilities such as excessive reliance on extractive industries, shortages of critical goods like housing and heavy dependence on exports to the U.S.,” states the report.
The BGI, which analyzes the relationship between democratic accountability, state capacity, and the provision of public goods, found that while Canada scores highly on most measures, its performance has been uneven over the last decade and has failed to address systemic problems.
The report also attributes the recent political turnaround in the country to the ascension of U.S. President Donald Trump in January 2025, as well as the resignation of former Prime Minister Justin Trudeau and the selection of former Bank of Canada and Bank of England Governor Mark Carney as the new Liberal leader.
Analysts had initially predicted a landslide victory for the Conservatives, but the report found that the Liberals have experienced one of the most dramatic electoral turnarounds in recent political history.
Carney’s vision of “One Canadian Economy” has rallied Canadians around national unity and managed to solidify a poll swing back to the Liberals, making the race to the finish line a close one.
However, the report also highlights persistent economic tensions and governance challenges that predate both Trump and Trudeau, such as disillusionment with Canada’s institutions and eroding faith in democratic institutions.
The report recommends that the next government invest in state capacity, economic diversification, and building greater democratic legitimacy through regional inclusion. It also suggests completing Trudeau’s unfinished goal of introducing a proportional representation system that includes greater geographic representation and inclusion of First Nations peoples.
Polls currently project a Liberal majority in the House of Commons.
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