buffered by oil

The Economist is reporting that the global economy has been holding up despite various perils like "investor panic and a credit crunch." However, this stability is tenuous and readers are advised to remain cautious, no matter where they live in the world.

As a conscientious media monitor, I am moved to consider what affect a potential recession would have on my home province of Newfoundland and Labrador (NL).

The search for an answer starts with Canada, of which NL is a province. Canada's economy is historically influenced greatly by that of it's southern neighbour, the United States. Some major causes of panic on the market originated in the US, and as such their economy will likely show clear effects. Thus, Canada is poised to feel them as well.

However, Canada has been slowly wrenching itself free of America's economic grip and as such has become an attractive destination for foreign investors. Our economy is more secure as Canadians are traditionally less likely to take major risks. And an influx of production of our abundant natural resources is pumping dollars into our government coffers and potentially shielding us from (or hiding) various economic perils.

Along with the protection given to us as citizens of a wealthy nation, our provincial economy has been improving as well. Just in terms of revenue stream, our government has recently signed a memorandum of understanding (MOU) with a consortium of oil companies. Once finalized, this project (Hebron-Ben Nevis) will pump about $16 billion into the province over 25 years.

This massive number ignores the other economic benefits, many of which are near-immediate, that the project will bring to the province. The number of jobs alone will surely increase the population and inject further millions into regional economies. Not to mention the family members who will be looking for and making their own work.

One expects that premier Danny Williams intends to avoid the types of problems that are still being faced in Alberta thanks to a booming oil and gas industry. Shortages in all areas of social services and infrastructure plague the province despite record budget surpluses and salaries.

The proof that Williams is planning for a major economic boom in our province can be found in the many initiatives his government has undertaken in the four years of his first term as premier.

Millions of dollars have been invested in infrastructure and education. Mandates to reduce poverty, violence, and crime have been reinforced by action plans and policy amendments. Immigration policy has become a priority for the current government. And within government itself major overhauls are occurring with respect to health care, governance, and bureaucracy (though stimulated by scandal).

So as the world goes through its rapid transformation into a truly global village, our province is preparing itself. And while the global economy takes a natural stumble, the people of Newfoundland and Labrador will begin to enjoy a new era of prosperity.