Canadians went to the polls last week to chose their new prime minister for the next four years. It was a hard fought battle that ultimately resulted in a seismic shift in power within the country. Without getting into the specific political details, Canadians elected a majority government that has eluded the country for so many years.
Not only did Canadians elected a majority government, they elected the Conservatives who are often regarded as the ‘business friendly’ party and who are most capable of moving the country forward in a fragile global economic environment.
One would assume that this is great news for the country. There is absolutely no doubt that it is. A majority government means less volatility in a very volatile world. The country is also positioned as one of the top performing developed nations in the world.
One would also assume that the stock exchanges would shoot up against the increasingly better national outlook. Times are certainly changing. The Toronto Stock Exchange (www.tmx.com) was down around 300 point the next day (and ultimately sinking further for another three days straight). Only ten years ago, an election with such optimum results in any country would result in a strong increase in local exchanges.
It is an interesting example how economically interdependent countries have become. Regardless of how much good news is generated on a local basis, the exchanges (and ultimately the fate of entire economies) are tied so extensively to global issues and events.
I’ve been in Toronto for the past two months and have had an ‘emerging market’ perspective on many of the national hot topic issues as discussed by politicians since the race began. When we compare the positive results of the election against the volatile backdrop of the global economy, it seems to me that Canadians should concentrate more on how to position the country in a world where power is shifting from traditional leaders to new ones.
I sensed that the general Canadian populace was going through what I call ‘analysis-paralysis’. I believe Canadians need to concentrate on how to develop a solid national resource, financial, economic and energy strategy that will compete and ultimately secure its’ leadership position in the world.
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