Chile

Job growth strategies in resource-based communities

A significant proportion of rural communities in both Canada and Latin America, especially remote communities
with large Aboriginal populations, continue to depend on natural resources to drive their economies. In 2001, an estimated 2,000 communities in Canada – many with large Aboriginal populations – derived at least 30 percent of their employment income from natural resources such as agriculture, energy, fisheries, forestry and mining. In Latin American countries, agriculture provides some 238 million rural inhabitants with half of their income.

In the first phase of a longer-term collaboration, research partners investigated factors affecting economic growth in resource-dependent rural communities in Canada and Chile. The principal investigators were supported by colleagues at their institutions, as well as from Ohio State University (U.S.), University of Waikato (New Zealand) and the University of Southampton (U.K.). Given an era of budget constraints and similarities among rural communities, researchers attempted to identify place-based policies that could determine strategic interventions in selected rural communities without creating disincentives.

Researchers proposed four “types” of communities based on population growth and poverty with Type I as the most likely candidate for intervention. They also used geographically weighted regression to explore spatial variations on the impact of local job growth. They confirmed that the effectiveness of local job growth varies across resource-dependent communities. Meanwhile, their typology can help focus the investigation on the most likely communities for place-based policy. “The project turned out really well, beyond my wildest expectations,” said Margaret Rose Olfert, who notes the grant helped strengthen her research network and supported her successful bid for a SSHRC grant of $75,000. “The need to examine ways of helping particular places improve and participate in growth and development seems to be gaining ground.”