BridgingImportReplacementTheoryandPractice:

AsociologicalexaminationofthepotentialforimportreplacementinAtlanticCanada

PREPAREDBY

DR.KARENFOSTER

ASSOCIATEPROFESSOR,SOCIOLOGYCANADARESEARCHCHAIRINSUSTAINABLERURALFUTURESFORATLANTICCANADA

DEPARTMENTOFSOCIOLOGY&SOCIALANTHROPOLOGY

JANUARY2018

BRIDGINGIMPORTREPLACEMENTTHEORYANDPRACTICE:ASOCIOLOGICALEXAMINATIONOFTHEPOTENTIALFORIMPORTREPLACEMENTINATLANTICCANADAPREPAREDBYDR.KARENFOSTER|ASSOCIATEPROFESSOR,SOCIOLOGY|CANADARESEARCHCHAIRINSUSTAINABLERURALFUTURESFORATLANTICCANADA|DEPARTMENTOFSOCIOLOGY&SOCIALANTHROPOLOGY|DALHOUSIEUNIVERSITY

REPORTBACKGROUND 1

INTRODUCTION 1

METHODOLOGY 4

DETAILEDFINDINGS 6FERTILEGROUNDFORIR 7RISKSANDCONSIDERATIONS 12COMEANDGO:THENEEDFORDIVERSIFICATION 12NOTJUSTJOBS,BUTGOODJOBS 17ENVIRONMENTANDSUSTAINABILITY 20RIGHT-SIZEDDEVELOPMENT 23

BARRIERSTOIMPORTREPLACEMENT 26ANUNEVENPLAYINGFIELD:ECONOMIESOFSCALE 27REGULATORYNETS 30DEMOGRAPHYANDDEMAND 33LOCALAMENITIES 36THEMYTHOFENTREPRENEURIALSPIRIT 42

OPPORTUNITIES 42LOCALMANUFACTURING(EXCEPTFOOD) 43LOCALWHOLESALEANDRETAIL 43LOCALPROFESSIONALSERVICES 44LOCALFOOD 44LOCALFINANCE,INSURANCE,ANDREALESTATE 45

HOWTOGETTHERE 47THREEI’S:IDENTIFYINGLEAKS;INVENTORYINGOPPORTUNITIES;INVITINGENTREPRENEURS 47WORKINGTOGETHER:COOPERATIVESANDWORKER-SELF-DIRECTEDENTERPRISES 48ENCOURAGINGLOCALPURCHASING 51LOCALIZEINSTITUTIONALPROCUREMENT 53LABOURFORCEATTRACTIONANDRETENTION 54SUCCESSIONPLANNING 55HOWTOIMPROVEBUSINESSINFRASTRUCTURE 56THEROLEOFGOVERNMENT 57

CONCLUSION 59

APPENDICES 61APPENDIX1:RESEARCHINSTRUMENTS 61APPENDIX2:COMMUNITYSELECTIONTABLE 75APPENDIX3:TYPESOFCOMMUNITYASSETS,ANDAQUESTIONNAIRETOGUIDEINVENTORYDEVELOPMENT 77APPENDIX4:ENDNOTES 79

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REPORTBACKGROUNDThis report is one part of a collaborative project spearheaded by the Centre for LocalProsperity(CLP)andfundedbytheAtlanticCanadaOpportunitiesAgency’s(ACOA)AtlanticPolicy Research Initiative (APRI). 1 The project, entitled Import Replacement: LocalProsperityforRuralAtlanticCanada,assessesthepotentialforimportreplacementintheAtlanticregionthroughtwocomplementarystrategies:

I. Macroeconomic leakage analysis: a snapshotof import andexport activity ineachofthefourAtlanticProvincesidentifiessectorsandindustrieswherethereishighlocaldemandandsignificantroomforlocalproducersandsupplierstomeetthatdemand.

II. Focusgroupcasestudies: in-depth,sociologicalexaminationsofthesocialand

cultural factors in specific communities that might frustrate or, conversely,supportimportreplacement.

This report covers only the second component: the focus groups (II). Michael Shumanpresents the findings from the macroeconomic leakage analysis (I) in a separate report,entitledProsperityThroughSelf-Reliance:TheEconomicValueof ImportReplacementIn Atlantic Canada & How to Achieve It, and available athttp://centreforlocalprosperity.ca/studies/.Dr.KarenFoster,CanadaResearchChairinSustainableRuralFuturesforAtlanticCanadaand Associate Professor of Sociology at Dalhousie University, designed the focus groupmethodologytomeetandexceedthestandardsoftheTri-CouncilGuidelinesfortheEthicalConductforResearchInvolvingHumans,leddataanalysisandproducedthisreport.TheCLPcoordinatedlocalresources,relationshipsandsupport ineachcommunity,andshapedtheobjectives,methods, and scope. The CLP’s ExecutiveDirector,Robert Cervelli, facilitatedthefocusgroupsdescribedbelowandservedasthestudy’smainliaisonwithACOA,whileCLP Senior AdvisorGregory Heming observed select groups and provided input on themethodology and analysis. Andrea Vandenboer, a staff member of CLP, organized andrecorded the focus groups, coordinated recruitment and advertising, and arranged travelandotherlogistics.ResearchAssistantKatieHarris,aDalhousieSocialAnthropologyPhDstudent, co-facilitated two focus groups, conducted background research on eachcommunity, ledthedevelopmentof theconsumptionsurveyreferencedinthisreport,andhelped analyse focus group transcripts and survey data. Dr. David Banoub, Historicalresearcherandconsultant,transcribedfocusgrouprecordings.Additional background, including more information on the focus group methodology, isdescribedintheMETHODOLOGYsectionbelow.1TheCentreforLocalProsperityisaregisterednon-profitorganizationpromotinglocaleconomicsolutionsforruralcommunitiesthroughoutCanada,withafocusontheAtlanticregion.Seewww.centreforlocalprosperity.ca

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INTRODUCTIONThereisalottobeoptimisticaboutinAtlanticCanada’ssmalltownsandvillages.Ruralmainstreetsinmanycommunitiesareundergoingrevivals,withmaker-spaces,farmers’markets,independentcafesandrestaurants,andsmallbusiness“hubs”bringingculture,socialityandcommercebackintobuildingsthatevenadecadeagowereshuttered.Craftbreweriesandcideries, small organic and free-range farms, and sustainable, community-ownedaquaculture, internet, and woodlots have managed to challenge the dominance ofcorporationsandfactoryfarms.But at the same time, the narrative of rural decline—one most Atlantic Canadians arefamiliarwith by now—still rings true: young people are leaving and those remaining aregrowing old; families are separated by the westward pull of oil economy jobs; majorindustries and employers are shifting operations to places with lower wages and looserregulations;andtaxandconsumerbasesaretooweaktohangontolocalschools,grocerystores,hospitals,librariesandcommunitycentres.WeknowthisstorybyheartbecauseAtlanticCanadianeconomies,foraslongastheyhaveexisted as such, havebeen seen as a “problem” to be solved through government policy.1Economic development in the region is almost an industry unto itself,withmany careersbuilt and sustained by it. But in the 150 years since Confederation, despite continuousgovernment intervention in rural economies, from the ‘smokestack chasing’ of the 20thcentury to the mantras of ‘opportunity,’ ‘competitiveness’ and ‘growth’ that drivedevelopmentagendas today,AtlanticCanada’s ruralpopulationhas steadilydeclinedwithonlyahandfulofperiodsofstability.Some rural communities have disappeared entirely, and relocation programs continue toenticeresidentsofisolatedoutportcommunitiestomovetomorepopulatedcentres.2Eventheruraleconomicdevelopmentmandatesthathavebeenrobustenoughtosurviveelectioncycles have had limited success stimulating rural economic activity;moreover, they haveoftenbeenoutofstepwithwhatruralAtlanticCanadiansneedandwant—andwhatisright-sized,achievableandsustainable—fortheircommunities.Theslowandsteadyrevivalofcraftindustries,localfood,andcommunityownershipmodelsshows that Atlantic Canadians understand implicitly the benefits of increasing localproduction,ownership,andconsumption.Everywherethereisapushtoward‘buyinglocal,’andeatinglocal,butthisfocuseslargelyatthelevelofconsumerchoice.Asthefocusgroupsconductedforthisreportmadeclear,wethinkofthefatherpurchasingtheweeklygroceries,ortheauntchoosingabirthdaygift,andwehopetheywillchoosethingsthataregrownormadeclosetohome,fromalocally-ownedretailer.Implicitly,weappreciatethatitisbetterto give a dollar to a neighbour than to a faceless corporation. But we rarely stretch ourimaginationstoconsiderthewholelocalbalanceoftrade:thetotalrelationshipsbetweenimports,exports,andlocalandnonlocaldemand.

Lo�calbal�anceoftradephrase1. thetotalvalueofexportsfromalocaleconomy,minusthetotalvalueofimports.

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An economy that exportsmore than it imports is said tobe in a "positive" tradebalance,whereasaneconomythatimportsmorethanitexportsissaidtobeina"negative"balance.Thebalance of tradematters because, as economistMichael Shuman shows in a separatereportpreparedforthisproject,theAtlanticregionisimporting$11billionmorethanitis exporting, and every one of the four provinces in the region is running a tradedeficitaswell.3Oneofthekeystoeconomicdevelopmentintheregionistotransformthisdeficitintoasurplus.Thedominantmodeofthoughtoverthelasthalf-centuryofregionaleconomicdevelopmenthasprioritizedincreasingexportsastheonlywaytoachievemorebalancedtrade,buttheresult of this thinking is that our region and its rural communities have become furtherdependentonglobalmarkets,morevulnerabletoeconomicshocks,andlessself-reliant.Thestudyundertakenherebeginsfromthepremisethatabetterwaytoimproveacommunity’sself-reliance, and thereby its resilience vis-à-vis an expanding array of global economicshocks,couldbetobringdownimportsthroughimportreplacement.IMPORTREPLACEMENT

Im�portRe�place�ment:verb1. theactof replacing importedgoodsorservices through localownership, finance,production,anddistribution;

2. a community economic, political, and social strategy to build long-term economic and ecologicresilience.

Import replacement,an idea championed by the late Jane Jacobs,means prioritizing localproductionforlocaldemand.4Itsgoalisincreasingaregion’scapacitytomeettheeconomic,social, and cultural needs of its people from within the region—not in a spirit ofisolationism,butinaspiritofself-determination.Practicallyspeaking,thismeansfosteringeconomicactivitythathelpscommunitiesproduce,forthemselves,goodsandservicesthatarecurrentlyimported,tokeepmoneycirculatinglocally.Theoretically, a local community committed to import replacement would identify keygoodsandservicesthatresidentsandbusinessesarecurrentlyimportingfromoutside,andsystematicallydevelopwaystoproduceandsupplythemthroughlocally-ownedbusinessesinstead.Bynature,theseactivitiesshouldbringmorecontroltolocalcommunities.But how things work ‘in theory’ does not always reflect how they work in realcommunities,withtheirparticularhistories,culturesandsocialrelations.Thefocusgroupcasestudiespresented inthisreportweredesignedto identify thesocialandcultural barriers to and opportunities for import replacement in rural AtlanticCanada.Thus,theyrepresentanattempttobridgethetheoryandpracticeofimportreplacement,withaneyetoinforminganypolicyorcommunityinitiativethataimstoreduceaplace’srelianceonimports.Adescriptionoftheexactfocusgroupmethodologyusedtomeettheseobjectivesproceedsnext.

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METHODOLOGYThe focus groups were intended to address some sociological questions that attend anyeconomicdevelopmentidea.Inthespecificcaseofimportreplacement,wemustask:whatsocialandculturalbarriersmightfrustrateeffortstoplugeconomicleaks?Conversely,whatsocialandculturalfactorsmightsupportimportreplacement?Inshort,theobjectivewastounderstand theeconomyasasocialcreationandasocial space,withsocialdynamics thatmustbetakenintoaccountbyanyoneinterestedinchangingit.

Fourcommunitieswereselectedascasestudysites.Inadditiontothefocusgroups,whichare the primary source of data for this component, the research team produced a briefhistorical sketchof each, andused the focusgroupsitevisit as anopportunity to conductinformal, observational ‘fieldwork’. The latter entailed visiting commercial centres andhistorical sites in each community, and speaking to local residents and business ownersbeforeandafterthefocusgroupsthemselves.

Recruitment materials, consent/background documents and research instruments (e.g.focusgroupquestions,participantsurvey)weredevelopedtomeetthestandardssetoutinthe Tri-Council Policy Statement: Ethical Conduct for Research Involving Humans(TCPS),guidelines to which all university research conducted with human subjects must adhere.Theseresearchinstruments,includingrecruitmentmaterials,focusgroupquestions,andtheparticipantsurvey,areincludedasanAppendixtothisreport(Appendix1).

Site visits for focusgroupswere conducted in twophases: the first inApril 2016and thesecond in April 2017. In the first phase, six focus groups took place in three ruralcommunities in Atlantic Canada, with two each in Shelburne (Nova Scotia, population1,743), Souris (Prince Edward Island, population 1,053) andMiramichi (New Brunswick,population17,537).5In thesecondphase,aworkshopandpublic ‘townhall’-stylemeetingwereheld in theBurinPeninsula (Newfoundland,population17,791).6Theworkshopandtownhallhavebeentreatedinthesamemannerasthefocusgroups,althoughasexplainedfurther below, they differ in some important respects. Thus, each phase is describedseparatelybelow.Phase1:FocusGroupsThefirstthreefocusgroupcommunitieswerechosenonthebasisofpopulationsizeandagecomposition,majorindustryandnearesturbancentre,withtheobjectiveofgettingagoodmixofcharacteristicsacrossthem(seeAppendix2foradetailedexplanationoftheselectionprocess). In each locale, one focus group invited participantswhoworked in government(anylevel)orownedbusinesses(hereafterthe“BusinessandGovernmentGroup”)andonefocusgroupinvitedresidentswhocouldworkinanyfieldorbeunemployed(hereafterthe“CommunityGroup”).BusinessandGovernmentGroupparticipantswererecruited“snowballstyle”throughdirectemails to CLP contacts, who then forwarded the invitations to their networks. Calls forparticipationforthecommunitygroupswerepostedinlocalcommunitycentresandother

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high-trafficlocationsandadvertisedincommunitynewspapersandonFacebook.Intotal,62peopleparticipatedinthefocusgroups,brokendownasfollows:

Shelburne-Community12|Business-Government11=23Souris-Community11|Business-Government10=21Miramichi-Community8|Business-Government10=18Total–Community31|Business-Government31=62

Focus Group participants were asked to discuss the state of their local economy, itsstrengthsandweaknesses,howtheypersonallymakedecisionsaboutparticipatinginthateconomy, andwhat they thinkought tobedone to improve it.Halfway through the focusgroups,theywerepresentedwiththeideaofimportreplacementandaskedtoconsiderhowitcouldwork(ornot)asastrategyforeconomicdevelopment intheirtownsandregions.Participants in the Community Groupswere also given a short, anonymous survey aboutconsumptionandemploymenttofilloutafterthefocusgroup(seeAppendix2).Allgroupswereheldincommunityspaces,suchaschurchhallsandcommunitycentres.PhaseTwo:BurinPeninsulaworkinggroupandtownhallAfourthsetoffocusgroupsplannedforLord’sCove,Newfoundland,encounteredamixofobstacles that ultimately compelled the research team to try a different approach.Specifically,itwasdifficulttorecruitenoughparticipantsonthesamedate,firstbecauseofthecommunity’ssize—only162peoplelivedtherein2016—andsecondbecauseresidentswere often balancing multiple jobs, volunteer positions and family obligations, all withinconsistent and in some cases unpredictable schedules. After attempting to convert thefocus group approach into a telephone interview-based study, and encountering similarrecruitmentproblems, the research teamworkedwithone local contact (apresenter at apast CLP conference) to organize a working group on import replacement. The BurinPeninsulaWorkingGroup (BPWG) expanded the case study area to encompass the entireBurinPeninsula,whichincludesLord’sCoveandseveralothercommunities.

The BPWGwas comprised ofmen andwomenwho are active in volunteer groups, NGOsand/orgovernments (e.g.municipal councils).Participantswere recruitedvia anemail orphonecalldirectlyfromthelocalcontact,givensomebackgroundreadingsonIR,andasked,viateleconference,toconsiderwhatitmightmeanintheirarea.Theywereinvitedtotakepart inathree-hourworkshopattheCollegeoftheNorthAtlantic(CNA)BurinCampusinApril2017;8peopletookpartintheteleconference,butonlysixattendedtheworkshop.

The workshop was divided into two halves. In the first, participants were engaged in a“visioning”exercisewheretheywereaskedtolisttheirwants,needs,hopesandfearsfortheBurinPeninsulaeconomy.Theideasweremeanttoformthebasisforavisionstatementforlocal economic development, but the group ran out of time, so this component became‘homework’.Inthesecondhalfofthesession,participantsweretaskedwithcomingupwithinventories of different kinds of local assets, for example “human capital”; “underutilizedassets”likevacantbuildings,landoruntappedlabourpools;communitygroupsworkingoneconomicdevelopment,andsoon—assetsthatcouldconceivablybeusedtoplugeconomic

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leaks.Thepracticalpointoftheseexerciseswastogetthegrouptobegintodevelopalocaleconomicdevelopmentplan, tochanneldiscontentwiththeexistingeconomyintoasetofobjectives, tools to get there, and indicators to measure progress, all with the notion ofimportreplacementasageneralgoal.Theresearchobjectivewastoobservewhathappenswhenmembersofacommunitytrytodosomethingtogaincontrolovertheirlocaleconomy,in thiscasewith importreplacement inmind.Theresultsof theworkshop—including theinventorylistsandvisionstatement—werepresentedata“townhall”stylepublicmeetinglaterthatday,ontheCNAcampus. The Town Hall meeting was advertised on Facebook, in the local print and onlinenewspaper,andviaemailsto localbusinessnetworksandcommunityassociations.Ontheeveningofthemeeting,sustainedfreezingraindidnotdeter15peoplefromshowingupandparticipating inatwo-hoursemi-structureddiscussionof importreplacement intheBurinregion.Inwhatfollows,participantshavebeengivenpseudonyms.Onlytheidentityoftheircommunities(e.g.Shelburne,Miramichi)isunchanged.DataanalysisAll focus groups and the Burin workshop (but not the Town Hall meeting) were audiorecordedandtranscribed,andthetranscriptsanalysedbyuptotworesearchersusingwhatqualitative researchers call an “emergent coding process.” In brief, researchers read thetranscripts and “tagged” passages with words that represent themes of interest. Eachresearcher’stags,calledcodes,werethencompared,organized(intomajorandsub-themes)andcombinedasappropriateforasecondreadingofeachtranscript.

Coding generally allows researchers to identify recurring themes and narratives, to drawout contradictions and tensions in what people say and believe, to examine debates anddisagreements as well as areas of consensus. Practically speaking, coding also allowsresearchers to summarizemany pages of transcripts, and to look back at transcripts andeasilyfindquotationsfromparticipantstoillustrateapoint.Forexample,Dr.FosterandMs.Harrisfoundthatmanyparticipantstoldstoriesthatcompareda“better”pasttoa“worse”present,andwetaggedthesestoriesNarrativeofDecline.Butwealsofoundinstances—lessoften, but still significant—where participants challenged narratives of decline and notedthe ways in which things in their community were getting better, or disputed theidealizationofthepast.WetaggedthesestoriesNarrativeofDecline(disagreeing).Thecodeshelped point the researchers to dominant themes in the data, which have been used tostructurethefindingsbelow.DETAILEDFINDINGSTheresearchundertakenforbothcomponentsofthisprojectconfirmsthatcommunitiesinAtlantic Canada are significantly “leaking” money, jobs and spinoff benefits. If thesecommunitiesproducedmoregoodsandserviceslocally,theycouldkeepmoremoney,jobsand tax revenue local. The project’s macroeconomic leakage analysis, available athttp://centreforlocalprosperity.ca/studies/, reveals significant import replacementopportunitiesinseafoodprocessing,forestrybyproducts,andagriculture.Butafternearlya

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century of focusing economic development on export markets, the focus groups detailedbelow show that Atlantic Canadian communities are rightly skeptical of global exportmarkets, placeless notions of “competitiveness” and economic success. They demand,instead, careful development that prioritizes local ownership and takes local needs andmarket demand into consideration. There is, in other words, fertile ground for ImportReplacement,butlikeanythingthatgrowsitwillneedplanning,careandcultivation.FERTILEGROUNDFORIMPORTREPLACEMENTIn every case study community, the negative impacts of fickle globalmarkets, export-leddevelopment, and import-dependence were recognized and felt. Participants understood,from experience, a central tenet of Import Replacement theory: that money spent onimportedgoodsandservices"leaked"fromtheircommunity.

"WhenyougotoTimHorton’sandbuyacoffeeforabuck,[…].85centsof itgoesout. If theguysonthe [fishing]boatdon’tmakethemoneyand it’smadeby3or4of thesebigplantownersdownthere, itgetsshippedoffshore."Don7inShelburne

“We’velostmostofthelocalstores[inmysmallcommunity]becausepeopleareshoppinginMarystown.”FionainBurinPeninsula

“AsachildIcanrememberatriptoMarystownwasjustlikesomebigundertaking…maybeeverytwoorthreemonths,[if]youwerelucky.Imean now it’s an everyday occurrence, because of the paved roads,thenitwasdirtroads.Plusnoteverybodyhadcars,solikeit’sgrownalotsincethen.”SarahinBurinPeninsula

Thesecommentariespointtothedouble-edgeofwhatweoftencallprogress:thegrowthofregionalcentres,thepenetrationofmultinationalbusinessesintoformerlyisolatedpartsoftheworld,thespreadofautomobilityandthefreedomofmovementitbrings—allofthesethingsopenupworldsofplacelessopportunity,buttheymightconstrainlocalpossibilities.Importantly,watchingmoneyleakoutoftheirhomecommunitiesmadepeoplefeelbad,soasmuchaspossibletheyendeavoredtobuylocally-madeproductsandspendtheirmoneywithvendorsandserviceproviderswholivedintheircommunityornearby.Overtime,wecametounderstandthesepreferencesandprioritiesasasetofconsumptionethicsthatguidepeople's choices about what to buy and from where. They are important, because theyconstitute one of several keys that are necessary to unlock the potential for importreplacement.

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ConsumptionEthicsItmaynotbesurprisingthatparticipantsineverycommunityspokeaboutconsumption—purchasesoffood,householdessentials,‘bigticket’items,businesssupplies—asanactivitywithethicalconnotations.“Buyinglocal”wasconsistentlypresentedastherightthingtodo,becauseitwasawayto“support someone local.” Some even pointed to purchasesmade in other communities oronlineas“deprivingsomebodylocal.”Ayoungerparticipant inMiramichiemphasizedthatbuyinglocalwasbetterfortheenvironment,becausepurchaseswerenotshippedasfar,andan older participant underlined that itwas away to trustwhat you buy. But the clearestexpressions of ethics camewherever people usedwords likeguiltand shame to describepurchasesthatdonot“support”localproducersandsellers.AliceinShelburneadmittedshedroveoutoftowntoalargechainstoreearlierthatdaytogetanewvacuum,butitmadeherfeel“ill,I’mallergictoit.”

“IgetupsetwhenIseetheUPStruckcomeupmystreetthreetimesaweektodropoffstuffbecause IknowpeoplearebuyingonlineandIthinkaboutwhatthat’sdoingtoourcommunityandit—it—itbothersme.”

NancyinShelburne

Joanie used similar language to explain how she feltwhen shewent to buy a souvenir ofNova Scotia for aChinese exchange student in town. Shewas late, ranout of time, storeswereclosed,andsheendedupbuyingthekidalittlelighthouseandcalendarbothofwhichweremadeinChina.Shetoldushowbothered,mad,andupsetshewaspeelingthe'madeinChina'stickersoffthosepurchases.ThelmainSouristoldusaboutacommunitywheresheusedtolive,acompanytownwhere,beforethe1960s,“thepeoplenevershoppedanywhereelse[…]becauseeverythingtheyfelttheyneededwasthere.”Butthroughthesecondhalfofthetwentiethcentury,people“hadmore access to automobiles” andwould travel further to shop. By the time Thelma livedthere,going “across theborder toCalais,Maine”wasa regularoccurrence.Describingherownexperienceofthosetrips,Thelmasaidshewas"guiltyofit"too.At times, other people became the target of judgment. For example, some participantspointedtothe"summerpeople"whokeepcottagesinruralcommunities,livingthereforthesummeranddisappearinginthewinter.

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"A lot of summer people don’t help the economywhen they’re here in thesummer time. They will go to Montague or Charlottetown on a regularbasis.Theybarelybuygrocerieshere;Iknowthatforafact.Theymaygotothe liquor store. […] So there ismoneyhere, it’s justnotnecessarily spenthere."SandyinSouris

Sandy’schoiceof“the liquorstore” isprobablynotaccidental. Itmaybeanodatvice inamorally-tingeddiscussionofshopping—oneshemadeagain,inasubsequentcomment,andoneanotherparticipantmadewhenshe joked that “theonlybusiness that’sworkingwellrightnowistheliquorstore.”In contrast to the online shoppers and "summer people", participants reminisced abouthistorical practices—canning, salting fish, and mixed farming—valorizing the work thatwentintothesesubsistenceandinformaleconomyactivitiesandadmiringtheasceticismofforegoing convenience. Some suggested it would be beneficial for rural people to forgetabouteating freshstrawberriesallyearround,andget to freezingorcanning them in thesummer. They proposed that they and their neighbours should try to grow the food theycan'tfindinthelocalgrocerystore;perhaps,theysaid,kidscouldlearntofarmatschool.Inallcomments like these, there isahintofmoralityaboutconnectiontocommunity, theseasons, the earth, where food comes from—and perhaps the notion that being a goodcitizen (one goal of education) involves orienting oneself to preferring the taste ofsomethinggrownlocally.AsNickinMiramichisaid,“IhappentothinkthatthattomatofromRogersvilletastesbetterthanthattomatothat’sspenttwoweeks[onatruck],sonotonlyisittherightthingtodo,it’snotreallymoreexpensiveandittastesalotbetter,sotome,ifit’savailableit’sanobrainer.”IfweacceptthesociologistErvingGoffman'stheorythatpeopleseektopresenttheirbestselvestotheiraudiences,likeactorsinaplay,wemightimaginethatNickchosetopresentaselfthatcantastethedifferencebetweenalocaltomatoandanimportedtomato,anabilitythatstemsfromanethicalconcernforhiscommunity.8All of this simply underscores the important sociological fact that people's economicchoices—aboutwhattobuy,when,andfromwhere—areimbuedwithethical,moralandsocialmeaning.Peoplewanttodo"therightthing",andinruralcommunities—asin metropolitan cities!—this is understood to mean prioritizing local products,vendorsandserviceproviders,becausedoingsomeanssupportingone'scommunityandhelping it survive into the future,andalsobeingable to trust the integrityandwholesomeness of what you are buying. These connotations are important tounderstand,encourageandcultivateifwewanttomaintainhealthy,prosperousruralcommunities.However, focusgroupdiscussionsandsurveysrevealedthatpeopledidnotalwaysabidebytheirownethicalrules.Below,wewillexploresomeofthethingsthatcausepeople to compromise on their ethical positions. But first, a further finding that suggeststhereisfertilegroundandcommunitysupportforimportreplacementinAtlanticCanada.

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TheabsurdstoryIneachplace,weheardmultipleversionsofthesameabsurdstory:smallcommunitiessendtheirproducts away, either for consumptionor furtherprocessing, and thenbuy thoseorequivalentproductsback for theirownconsumption—orhave trouble finding thematall.Thestoryoftenrevolvedaroundfood,mostoftenseafood:Shelburne,Souris,andBurinallfeed distant markets from their oceans and then suffer from food insecurity themselves.Community living facilities and hospitals next door to some of the most active fisheriesanywhereservedtheirclientele“CaptainHighliner,”asoneparticipantputit.Localsdidnotknow what to tell tourists looking for a fresh lobster roll in Shelburne or cod andscrunchionsinBurin;withtheexceptionofahandfuloftimeswhenalocaltriedandsoonfailedtostartaroadsidestandorrestaurant,therewerefewobvious,accessible,ocean-to-table options. One of the research partners at the Shelburne focus group,moderating thediscussion, asked, "tonight, if I wanted to get steamed lobster?" And the group told him:"you’renotgettingit.It’sadamnshame."

“You’re not going to find fresh lobster, lobster capital of Canada—lobstercapitaloftheworld![And]youhavetogotoSobeystobuyfresh,anddoityourself.”

ShelburneFocusGroup

In Burin, the same thing: “The locals and tourists are amazed. We’re known for being afishing province, and there’s no fishmarkets,” said Fiona. Therewas somehope that thiswould soon change, due to a recent regulatory change that allows fishermen to sell theircatchdirectlyoff thedocktoconsumers forhouseholdconsumptionandrestaurateurs forpreparationandresale.The ironic scarcity of seafood in fishing communities stems partly from broad structuralchangesinthewaytheAtlanticfisherieshavebeenmanagedfromaboutthe1970sonward.AsfisheriesscholarsApostleet.al.explain,althoughwenowthinkoffishasastockthatismanaged through quotas and licenses, thiswas not always the case. It took internationalagreementsandtheestablishmentof“exclusiveeconomiczones”(EEZs),whichturnedthefishalongcoastlinesintothepropertyoftheneareststatesandprohibitedothercountries’fisheries fromharvesting in those zones to create “a global fishmarket.” “Coastal nationswith relatively abundant fish stocks becamemajor suppliers of fish on theworldmarket.Countries that had traditionally fished around theworld became importers of fish. Therewas thus an enormous increase in measured trade in fish products.” These changes,alongside targeted government policies and subsidies, “meant a weakening of the linksbetween harvesting and processing […] as it became cheaper for companies to sourceproductelsewhereintheworld,ratherthanharvestit locallywiththeirownvessels,ortobuyfromtheinshorefleet.”9

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While they did not always articulate the issues above in terms of a global supply chain,people in the focus groups had an acute sense that the convoluted path locally-caughtseafoodtakesonitswaytomarkethurtsindustriesandpeopleinsmallcommunities.Theyhadasensethattheircommunitiesoughttobetryinghardertobenefitfromthefisheries—to engage inmore ‘value-added’ initiatives, to keep processing and distribution closer tohomeand thusmaintainor regain somecontrolover the supply chain. InShelburne, Joshlamentedhow"a lotof theproducts,weskipoverthevalue-addedpart,andweskipoverthemanufacturingpart,andwejustshiptherawproductandthere’sopportunitytoexpandonthat."Josh’sperceptionof thesituation isveryaccurate.AtlanticCanadian fisherieshaveshiftedtoward a “high-volume, low-cost” model where the objective is to get rid of product asquickly as possible, in contrast to a low-volume, high-quality model that adds value andtraceability thatconsumersareactuallywillingtomorepay for. LookingonlyatHaddockimports and exports from Nova Scotia, a 2013 report from the Ecology Action Centreshowed that over 90% of haddock is exported unprocessed,a loss of “over $7million indirectexportrevenuein2011.”NovaScotia’sGDPtakesafurtherhitbecausetheprovincethenimportshaddockfilletsbackin(usuallyfromChina)fordomesticconsumption.Indeed,“overthepastfouryearstheexportofwholehaddockandre-importofhaddockfilletshasdirectlycostNovaScotia’sGDPbetween$5and$20millioneachyear,notaccountingfortheeconomicimpactofemploymentinprocessing.”10Thisdoesnoteventouchonthedeferredenvironmental costs—costs our grandchildren will pay—of packaging, transporting, andsellingandre-sellinghighvolumesofseafoodaroundtheworldandback.Whilethisproblemisparticularlysignificantintheseafoodindustry,itplaysoutinsimilarways inmanyother industrieswhere, in industryparlance, the“valuechain” isnot locally“integrated”and/orexportmarketsareprioritizedtosuchanextentthatdomesticmarketsareshortonsupply.This is trueof theenergysector, and incertainareasof forestry.Welearned, for example, thatMiramichi had experienced a shortage ofwoodpellets becauselocalproducersshippedeverything toEurope,where theproduct is subsidized.Thereareways to add value to almost every raw product, including production waste—but it waswidely perceived that Atlantic Canadian communitieswere letting those opportunities goand then payingmore to import superior products. Themacroeconomic leakage analysisconducted for this project, and available at http://centreforlocalprosperity.ca/studies/suggeststhisperceptionisaccurate.Furthermore, people in the focus groups understood that relying heavily on importscompromised foodsecurity in their communities.On theBurinPeninsula,Bennett framedthisasadireproblemwithapotentiallyeconomicallylucrativesolution:

OneofthegreatestopportunitiesIthinkintheprovinceasawholeisinthearea of produce [food] production […]. Becausewe’re dependent upon theferriestobringinallourproduceandit’sestimatedthatonly10%ofwhatweconsumeisproducedhereintheprovince,wehaveabouta4-daysupply,iftheferriesarenotrunningin4days,you’llseetheshelvesinSobeysand

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othersgettingprettybare. So there’sabigopportunity, especially inagri-foodssector,to[do]importreplacementforsure.

BurinFocusGroup

Interestingly, other Burin participants connected food insecurity and import dependence,withsocial inequalityanda lossof traditionalskills.ToFiona itseemed like thewealthierher community and the entire island had become in general—and the more unequal, intermsofwealthdistribution—thelesstheywereabletomanageontheirown.Sherecalledatime, several decades ago, when her community was ice-bound for 20 days. “We had noissues.Therewasnoshortageoffood,therewasnoissueswithheatingyourhouse…power.Wewereprepared.”Incontrast,morerecentlysheheardofasmallcommunityiceboundfortwodaysthathadfightsbreakingoutinthebarrensupermarketaisles.“TheproblemIfindnow,”shesaid,“isthataswebecomebetteroff,there’smoremoneycominginatthetop,butpeoplearepokingmoreholes in thebottomof thebucket.” Inotherwords, the resiliencywas being drained from small communities by an emphasis on the wrong kinds ofprosperityandprogress.Thus, it was clear within minutes of beginning each focus group that rural AtlanticCanadians know this story by heart, and therefore the rationale for ImportReplacement, and theneed toput it in practice,was a foregone conclusion. Instead,discussionzeroedinonthepotentialrisks involved in importreplacement,considerationsfor any policy or initiative designed with import replacement in mind, and barriers tomeetinglocaldemandwithlocalproduction.RISKSANDCONSIDERATIONSComeandGo:theneedfordiversificationFocusGroupparticipantsineverycommunityhadlittletroublepointingtoopportunitiesforlocaleconomicdevelopment,particularlythoseopportunitiesassociatedwiththeindustrieswiththedeepest localhistories—likefishinginShelburne,SourisandtheBurinPeninsula,and forestry in Miramichi. They could imagine doing more with the byproducts ofestablished activities, for example generating energy from landfills or wood pellets fromforestbiomass;theycouldpointtotechnologyandrawmaterialseachindustryneedsthatcould be made and sourced locally—this is import replacement; they could identifyopportunities for value-added and increased local consumption—another importreplacementexample—inalready-thrivingexportindustries.Buttherewasalsosometrepidationabout ‘leaningin’todominantindustriesbyinvestingmore in processing, distribution, and other value-added activities, for one main reason:peopleineachcommunitywereuneasyaboutthereliabilityofexportmarketseveningoodtimes, because every export boom they had been through had been followed by a bust.Accordingly, the storieswe heard in Burinwere anchored to pivotalmoments in the codfishery—fromageing fishermen'sboyhoodmemoriesof boatspacked to the gunnelswith

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fish,tothelastingimpactsofthe1992codmoratorium.InShelburne,participantsrodetherise and fall of lobster stocks and prices like deep oceanwaves. InMiramichi, itwas thecollapse of the town's entire pulp and paper industry over the course of five years, from2004 to 2009.11These economic ups and downs shaped community perceptions of past,presentandpossiblefutures,andparticipantsunderstoodthateconomicfluctuationswereintimatelyconnectedwithcommunitylifeandwell-being.

"When I moved here, the mills were going strong and people werespendingallkindsofmoneybecauseofthatandtherewasmorestoresyou could buy things in. And groceries weren’t as astronomicallyexpensive.Theywereverycheap,actually,whenwecameherebecauseof the mill. Restaurants were really powerful […but] when the millwentdownand thenwhen theair force left […] things just fellapartandIhavefoundthatnothinghascomeintofillit."

AliceinMiramichi

"WhenIwasakidwehadtheboy’sschoolandthebase.Therewasabigger population here sowe had two grocery stores instead of oneandallthatstuff."

ShelleyinMiramichi

Whilemostfocusgroupdiscussionswerepremisedon,andthendominatedbyanarrativeofdecline, there were notes of optimism, resilience and rebuilding. In response to Alice'srecollectionoftheriseandfallofMiramichi,Monicasaid:

"Ifindthatinteresting,becauseI’mnotfromhereoriginallyeither.I’mfrom the North, fromDalhousie, where it’s bad there right now, butwhenIcameinhereitwastheendofthemillandIneverknewtheairforcepart,soInevergottoseetheboomofthat.AndIwashere,itwasdown…[but]nowIseeforthenextcoupleofyearseverythingthat iscomingintoourcityfordifferentreasons,whetheritistourismornewbusinessesthatarecoming.IhopeandIthinkthatwhatIseeismoreofan‘up’thatiscominginthenextfivetotenyears.Sofingerscrossed.Everythingwearesupposedtohavewillhappen."

MonicainMiramichi

BackinShelburne,participantsinbothfocusgroupstoldusthatthingswere“boomingrightnow. Booming with lobster. Booming with what we have. And tourism.” Don, however,cautionedthat,tohismind,"thecriticalthingistonotthinkit’sgoingtoboomtomorrow."

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ButinSouris,Joeofferedthepointthat“thefisherieshereisprobablygoingtostaywhetherit’s good or bad.” “It doesn’t make a whole lot of difference,” he surmised, and Thelmaagreed.Theirthoughtsreflectaruralfolk-perspectiveoneconomicsthatscholarsBeckandIonescudescribedinarecentarticleaboutruralNewBrunswick:“asenseofva-et-vient[…]inpartdefinesour communities:whatwashes inwith the tidalborewill just as easilybeeffaced with its retreat.”12On the one hand, the "come and go" of these communities'historiesmadethemfeelcapableofweatheringanyeconomicstorm;ontheotherhand, ittemperedtheirexcitementaboutfutureeconomicdevelopment.Nevertheless,thebearersofthissituatedwisdomdidnottakeittomeantheyshouldceasetryingtoimprovethelocaleconomy,evenifthetaskseemedSisypheansometimes.Acrossthefocusgroups,participantsrightlyemphasizedtheneedtofocusdevelopmenteffortsondiversification, as a way of simultaneously generating local wealth, creating jobs, andinsulatingagainstshocksinthemarketsfortheirprimaryexports.Forexample,everyoneinShelburnesawthepotentialforadominoeffectwheneverlobsterstocksorpricesbegantofall.Inthebusinessandgovernmentfocusgroup,Donpointedoutuneasilythataneighbouringfishplantownerwas"puttingabigextensionoverhereonhismachineshop"."Andwhy?"heaskedrhetorically."Lobster.Boats.Boatbuilding.It’sallaboutthelobster."Bernadette,whoworkedintourism,cautionedthat"it’sdangeroustobaseyoureconomyon lobster just toconcentrateonthatonethingasgoingtobesavingeverythingelseorboostingeverythingelse,because[…]youdon’tknowifit’sagoodyearorabadyearcoming,andyoucouldhaveseveralbadyearsinarow."The dominance of lobster fishing over other species in Shelburne—"swordfish in thesummer, rockweed, […] Haddock, halibut, groundfish"—worried local residents. Theyunderstood,asGregsaid,"oneofourbiggeststrengthsisalsooneofourbiggestweaknesses.Youknow, lobster is key, it’s crucial butwe’re so focusedon that, thatwedon’t have thediversityandifanythingeverwentwrong,goodnessIdon’tevenwanttosaythat,itwouldbedevastating."Thus,theypointedtopotentiallylucrativeopportunitiestofishotherspecies.Forexample,DannyinShelburneremarkedonthe"enormouspotentialforsecondaryorunusedfishingspecies.Ithinkthere’swhat,8activespeciesthatarethemainstayofall fishing?Andhowmanytensofthousandsofdifferentspeciesareoutthere,almosteveryoneofthemwhichwouldbeconsumedbysomeoneinAsia,wedon’tmarketanyofthem.There’spotentialforallofthembutwearenot[takingadvantage]."Anotherrealisticavenuefordiversificationinthethreecoastalcommunitieswasalsooneofthemostrisky:offshoreoilandgas.AccordingtoGreg,

"We’dlovetohavethe[offshoreoilandgas]revenuebecauseithelpsusdiversify,butontheotherhand,oilandlobsterdon’tmixverywell.Soyouhave our biggest industry saying we don’t really want that, we havemunicipalitiessayingtheywanttherevenueandthatitwouldbegreatto

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diversifyabitbutatthesametimewehavetoprotectthelobsterandthefishingindustryatallcosts,soit’sareal…whatdoyoudothere?"

GreginShelburne

Coreyagreedthatthecommunitywouldbe"supportiveofit",butonly"inavery,verysafeenvironment"withregulationstoprotectthelobsterandotherfisheries.Thus,participantsfelt the need for sensible, sustainable diversification that complemented extant industries,and did not directly interfere with or threaten other industries, without being entirelydependent on the success of those other industries. And just as they understood, fromexperience,theimportanceofnotputtingallofacommunity'seggsinasingleexportbasket(as is the case with oil and gas), they knew production for the local market had to bediversified too. The perceived opportunities for smart, diversified, import-replacingbusinessarediscussedlaterinthisreport.Fornow, it is important tomakeadistinctionbetweentwokindsofdiversification. In theprecedingdiscussion,thefocushasbeenondiversificationatthelevelofindustry.Butthereisanothersenseinwhichruralcommunitiesareattunedtotheneedfordiversification: intheir own individual livelihoods. It is common in rural communities with seasonalindustries—andhasbeenforcenturies—forpeopletoengageinwhatanthropologistsandhistorianscall "occupationalpluralism." Insomecases,peopleholdmultiplepaid jobs,butthe more likely arrangement is for people to engage in "petty production", odd jobs orunder-the-table work in the so-called “informal economy” in addition to their primaryoccupation.13Infact,ruralCanadiansarefarmorelikelythantheirurbancounterpartstobeinvolvedinsome formof self-employment, and this is usually in addition to someother formofpaidemployment.14Inthefocusgroups,thiswasbothacommonattributeofparticipantsandapractice they observed—and valued—in their communities. In Shelburne, Lill recalled:“whenImovedtoLockeport, IwastoldI’dneedtwojobs.Don’tgiveupyourediting.”Shethoughtinretrospectthatitwas“goodadvice.”OntheBurinPeninsula,participantsrevealedtheextentof“trading”servicesandgoods—forexample,quilts forelectricalwork—inthe informaleconomy,apracticethat intersectswithoccupationalpluralism.“Thatstuffisstillgoingon,”Fionatoldus.“It’snotasstrongasitusedtobe,butit’sstillthere.”Bennettconcurred:

“MostpeopleinruralNewfoundland,they’remastersoftheirdestiny.Ifyouneedabitofelectricalworkdone,plumbing,plastering,carpentry,theydoit…. They don’t have to depend on making a call for a carpenter andwaitingforsixmonthsforsomeonetocomefixastep,orfixyourbridge.”

BennettinBurin

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Sarahadded, “if theydon’tknowhowtodo it, theirbuddydowntheroadcan trade themsomething.”Fionarecalled“therewasakidinmyclass,hisfatherhadabigbusinessandhesaid tome one day, ‘my father said, that if he three jobs he’d hire one Newfoundlander,becausehecoulddothethreeof them.’”Sheandtheothers in theBuringroup,aswellasparticipantsacrosstheotherthreecommunities,perceivedalossoftheseeclecticskillsetsamong rural Atlantic Canadians. Fiona believed that rural people had more useful skillswhenunemploymentwashighand labourmobilitywas low. Inotherwords, theallureofhigh-payingjobs“outwest”promptedpeopletospecializeinsuchawaythattheylosttheability to adapt to and take advantage of sporadic, diverse local opportunities. Theseanecdotesweretingedwithprideinthetraditionalresourcefulnessandresiliencyoflocals,buttherewassomeambivalenceaboutmultiplejobholdingoroccupationalpluralism.Noteveryonewanted a return to the past of “jobbing around,” nor did they want to leave itcompletelybehind,becauseithaditsbenefits.InShelburne,Vincesurmisedthat"thereisthebasisofawonderfuleconomyhere,anditisworking.But,"hecontinued:

"Muchof thework is seasonal—which isnotabad thing,notadirtyword.SorryOttawa, it’snotabad thing. It’s thestyleofwork that isavailable. It is profitable, it is available, and it is eternal (if wellmanaged)."

VinceinShelburne

Theotherparticipants inhisgroupconcurred.Muchof theworkavailable locallywasnotfull-timeornotpaidwellenoughtosupportafamilyevenwithfull-timehours.Thefisheriesweregenerallyseasonal(althoughtherehavebeengrowingcallsforyear-roundactivity15)and thewages for harvesters in forestry kept low, participants said, because of overheadcostsforforestrycompanies.Theyreflectedontheresultingoptionsforlocalworkerswithbothreverencefortheirresilienceandrecognitionthatoccupationalpluralism,asastrategymitigatinginsecurity,wasneverthelessanunstableandprecariouswayofmakingaliving.

Robbie:"Whatwe’retalkingabouthere inoureconomyisthatthere’sa lotofpeoplethatworkaseasondoingonethingwhetherit’slobsterfishingorfishingorwhateverandthenanotherseason,theycouldbecarpentersorcuttingwoodorsomethingdifferent.Sotheydothingstosupplementtheirincomeandmakeagoofit."

Moderator: Sowhen you’re talking about seasonality, it seems the plus side isthatpeopleareabletobediversifiedintheirlivelihoods.Unidentifiedparticipant:They’reforcedtobe.

Lookingatparticipants'commentsontheneedfordiversificationatindustrylevel,aswellas the reality of diversification at the level of individual livelihoods (i.e., occupational

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pluralism), it is clear that the benefits of diversification do not magically accrue to anyperson or community doing any random combination of different revenue- or income-generatingthingsatonce.At the level of industries, successful diversification depends on careful consideration ofindustriesandbusinessesthatwillcomplementratherthanthreateneachother,butwhichremain somewhat independent of each other's successes or failures. At the level ofindividuals, while there is value in having multiple sources of income, occupationalpluralismshouldnotberomanticizedasaperfectstrategybecauseitstilllackssecurity.Thismattersbecauseincomesecurity(apart,even,fromincomelevel)hasbeenshowntobeoneofthemostimportantfactorsinpeople'swell-being,inruralandurbancommunitiesalike.16Notjustjobs,butgoodjobsThepointaboutoccupationalpluralismisrelatedtoasecondconsiderationtokeepinmindwhenworkingtowardimportreplacement:whenwetalkaboutnewbusinesses,productsorservices,wearealsousuallytalkingaboutnewortransformedjobs.Indeed,theMacroeconomicLeakageAnalysisproducedforthisprojectrevealedthata10%shiftinpurchasingfromnonlocaltolocalsourcescouldprovidejobstomorethanathirdofthe people living in the four provinces who are currently unemployed. According toShuman’sresearch,a10%shiftcouldcreatemorethan43,000newjobs,$2.6billioninnewwages,and$220millioninnewtaxes.17Butforlocaleconomicdevelopmenttotakeoffandbesustainable,theassociatedjobsmustbeattractivetoworkers.Everywheretheresearchteamwent,weheardasimilarperceptionthat local businesses had trouble finding and retaining workers to fill their jobs. InShelburne,forexample,Dannyknewthat“Clearwaterhastroublehiringenoughpeople,sothat means that there’s jobs but not enough people to fill the work.” Moments beforeofferinghisthoughtsonseasonalworkpresentedabove,Vincesaidsomethingsimilar:“wehavelotsofseniors.Westillhave[…]lotsofchildren,[but]wedonothaveworkerstofillthejobs–themanyjobs–thatareavailable.”However, this perception is not entirely accurate: first, the unfilled jobs that are mostobvious to participants are clustered in traditional workplaces and industries—manufacturing,resourceextractionandagriculture.Otherkindsofworkopportunities—inIT, e-commerce and other industries that use the Internet to offer opportunities toworkremotely—are not so visible, and are not likely plagued by the same challenges as, forexample,seafoodprocessingandblueberryfarms.Furthermore, thisexpandeduniverseofjob opportunities in rural areas can actually improve the prospects for import replacingjobs.Ifmorepeoplecanmovetoaplacebecausetheytelecommute,thedemandforcertainlocalgoodsandserviceswillbehigher.Thesecondproblemwithparticipants’perceptionssthatunemploymentratesineachofthefourcommunitiesvastlyexceedthenationalaverage.The latestavailablecommunity-level

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employment and unemployment data, from the 2011 National Household Survey, aresummarizedbelow. SHELBURNE SOURIS BURIN MIRAMICHI CANADAEmploymentrate 49.1% 45.9% 42.4% 50.5% 60.9%Unemploymentrate 14.3% 20.8% 20.3% 16.1% 7.8%Amorepreciserepresentationofthesituation,then,wouldbethattherehavebeen“peoplewithout jobsand jobswithoutpeople” in certain traditional industries, as oneparticipantput it. Indeed, according to the focus groups,many companies in these four communitiesbrought in Temporary Foreign Workers (TFWs) to do the jobs that locals could not, orwouldnot,do.OfficialstatisticsfromImmigration,RefugeesandCitizenshipCanada(IRCC)back this up, indicating that NS, PEI, NL and NB had 1,370, 413, 695 and 991 TFWs,respectively,in2015.18TheemploymentofTFWsperplexedparticipants.Intheirdiscussions,theyrevealedabeliefthatlocalworkersareturnedoffbythewagesofferedbylocalemployers,soTFWswhowillaccept lower wages are brought in to fill the gap. Participants were sympathetic to theindividual motivations, needs and behaviours of both TFWs and local workers, but theirrenderingofthesituationisoversimplistic.Whilewagesarecertainlyaffectedbyworkers’willingnesstoacceptthem,therearemanyothercausesforthemismatchbetweenavailablejobsandavailable labour:poor(andpoorlysupported)entrepreneurship;monopolies;thepoorly developed markets of rural areas; and the absence of co-operatives and otherstructurestosharecostsandprofits,tonamebutafew.Inanycase, the focusgroupsrevealed thatwork in rural places is often seasonal, andresidentsacceptthisasafactoflife.Again,thismainlycharacterizesthemostvisibleruraljobs, intraditionalresource-basedandmanufacturingoperations—notthetechnologyjobsoccupiedbyworkerswhotelecommutefromruralcommunities.Focusedonlyonthemostvisibleindustries,participantsbelievelocaljobscannotbeartificiallystretchedyear-round(towit,“EIisanecessityhere”).EmploymentInsurance,fortherecord,isentirelyfundedbyemployer andemployee contributions;bothparties are essentially squirreling someoftoday’swagesawayfor tomorrow’srainyday. Itallowsseasonalworkerstotakeseasonaljobswithouthavingtofindamatchingseasonaljob(highlyrareinthesecommunities)fortheoppositeseason.Thesecondpointrevealedinthefocusgroupsisthatruralresidentsrecognizethatwagesinmanyjobsintheircommunityaretoolowtoreasonablyliveon,evenyear-round.Anotherexchange,fromtheShelburneBusiness-Governmentgroup,servestoreiteratethispointbutfromtheperspectiveofemployers.Greg,alocalbusinessowner,saidhe“wantedtogetanideaout.”Hecontinued:

“Ihireabout20-30peopleand[most]makelessthan15dollarsanhour.[…]Evenif theyworkthewholeyear, theydon’tmakeenoughmoneytobuynewcarsandthere’ssomethingwrongthereandIdon’tknowwhat

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theanswer is. Thesearepeople thatareas smartas someonebuildingcars ina carplantoras smartandasgoodaworkerasadrywallguythatworks.Weneedtomakeitworthwhileforthese–toattracttherestofthepeoplewhowanttoworktogetintothesemanufacturingjobs.I’mjust throwing thatout there.Theonlypeople thatmakegoodmoney inmyindustry[…]andmakedecentmoneyarepeoplewhowork70hoursaweek.”

GreginShelburne

Gregsaidhewas “sure that theother industriesaroundherehave the sameproblem.Wejust–forsomereasonwedon’tpayenough.”Erinchimedin:“youcanmakejustasmuchonEIasyoucanworkingthesejobs.”Mostparticipantsweredeeplysympathetictothepeople“raisingafamilyandbuyingacarandbuyingChristmaspresents”on“$30,000ayear[…]inafishplant.”“That’sthebestpeople,that’sthepeoplethatgo[towork]allthetime,”Robbiepointed out. It was no mystery to participants why locals turned down these so-calledopportunitiesinfavourofalesssecure,butmoreautonomousandpossiblymoreprofitable,patchwork of seasonal jobs, EI and under-the-table work. Yet participants also largelysympathizedwith small employers likeGreg,whosaid: “I’d love topaymyworkersmoremoneyIjustgottohavetheeconomytodoit.”ThevalidityofGreg’sperceptionsshouldbechallenged.Itisnotjust“theeconomy”—thelocaldemand,theoverheadcosts—thatlimitshisbusiness’swages;itmayalsobethestructureofhisbusiness(i.e.,corporate,noprofit-sharing),itsreachintoothermarkets,andhowitsproductionprocessisorganized(i.e.,useof technology, division of labour). All of these factors complicate the image of small localbusinessesstrugglingagainstimmutablestructuralforces.In theBuringroup,aconsensusamongseveralparticipantsemergedaroundthe idea thatyoung adults had been spoiled by highwages “outwest” and itwould take an “economicreset” to get their expectations in line with the reality on the peninsula. In Miramichi, asimilarsentimentaroseaboutthejobsofthepast,inthepulpmills,andtheimpossibilityofeverrecoveringthosehighwagesandstability.Itseemedtomanyinthefocusgroupsthattoday’sthirty-somethingswouldhavetotakeitonthechinand“learntoliveon14,15,20dollar an hour range. They’ll learn to live down there. That’swhere the reset is going tocome.”Thiswasonlyaproblem,participantssurmised,becausesomanyyoungworkershadgotten themselves into debt buying big homes and expensive cars. Importantly, thischaracterizationofyoungworkersasoverlyentitledandconsumeristichasbeendisprovenbyrigoroussocialresearch.19Furthermore,thewagequestionalertsustothesocialriskthatunderemployedandunemployedruralpeopleofallagesmayturnaway fromquestioningstructural attributes of their local and global economies and lay blame on TemporaryForeignWorkersandworkersinoutsourcedbusinessesfor“taking”jobs.Nevertheless,withtheexceptionoftheBurinconversationabouttheyoungergeneration’sexpectations, the “good jobs” discussions in focus groups tended to circle around animpossiblesituation:theresimplydidnotseem tobeenoughmoneytogoaround.20But isthis understanding of the local economy accurate? Locally-owned enterprises needsomething other than a different local economy inwhich to do their business. They need

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innovative business models. They might need profit-sharing. They might need betterunderstandings of and connections to export markets. Whatever the case, these locally-owned businesses need guidance toward a balanced approach to local economicdevelopment,includingthepursuitofexportopportunitiesandimportreplacingactivities.EnvironmentandsustainabilityOneofthetoutedbenefitsofimportreplacementisthatitcanreducehumanimpactsontheclimate, forobviousreasons:productsdonot travelvery far fromproductiontopurchase,andanimprovedlocallabourmarket,intheory,meansshortercommutesforlocalworkers.Localproductionusuallyreliesmoreonlocalinputs;smallerscaleproducersusuallydonotcause mega pollution; local ownership increases responsibility and environmentalstewardship; localself-reliance increases incomesand the taxbase,whichcanbeused forgreaterenvironmentalstewardship.Theideal-typicalimportreplacingeconomythushasasmaller environmental footprint just by virtue of reining ownership, production andconsumptionintoasmallergeographicalarea.Importantly, focus group participants did not spend much time discussing theirenvironmental concerns or the potential environmental benefits of importreplacement.Protectingtheenvironmentandensuringlong-termecologicalsustainabilitywere not as high on the priority list as demography and income: keeping people in theircommunities and attracting new income for businesses andworkers.This finding alonesuggestsaneedformorepubliceducationabouttheimpactthateconomicactivityhason the environment. Still, the few times the focus group discussions turned to climatechangeandenvironmentareinstructiveforthinkingaboutimportreplacement.

ABuy-LocalLifestyleIn Miramichi, community focus group participants discussed the “environmentalcomponent”of “buying local.”Describinghis foodpurchases,Nicksaid thatbyprioritizinglocally-grown produce, “you’re reducing those greenhouse gas emissions, and saving theplanet.”Andrewadded,“youknowwherethatapplecamefromandyouknowthatithasn’tbeen sprayed.” Interestingly, Nick tied his environmentalism and local shopping to a“generational”“lifestylething”:

“my generation, we are very concerned of the environment, but it also is alifestylething.Attheendofthedaytoo,IhappentothinkthatthattomatofromRogersvilletastesbetterthanthattomatothat’sspenttwoweeks,sonotonlyisit like the right thing to do, it’s not reallymore expensive and it tastes a lotbetter,sotome,ifit’savailableit’sanobrainer.”

WhileNick’s thoughts did not take upmuch time or generatemuch follow-updiscussion,they suggest that an import replacement strategy, and particularly any efforts toincentivize or increase “buying local”, might fruitfully appeal to the lifestyles andtastes of local young adults by emphasizing the environmental benefits of localconsumption as well as the qualityof local food.This emphasis could enhance rather

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than edge out discussion of import replacement’s other benefits, including local jobs andincome.LocalEnergyTheothernoteworthydiscussionsofIR’senvironmentalbenefitsrevolvedaroundenergy.Inthe Miramichi community group, Alice opined that the town needed “some sort of anenvironmental way to harness the energy here” that could bring in new businesses andincome. She imagined that businesses could access “free hydro” as an incentive to set uplocally,andaskedwhyNovaScotiaandOntariohadsomanywindmillsbutMiramichididnot.Shewasnotaloneinthinkinghercommunitywasmissingopportunitiestocapitalizeonthesustainableenergyrevolution.In the Miramichi Business-Government Focus Group, Mark recalled a shortage of woodpellets in the town the previous year and tied it to an absurd prioritization of exports.“Commodityshortages,that’sthirdworld,”hesaid.Hisfellowparticipantshelpedhimpiecetogether an argument in favour of reducing reliance on energy imports and putting localneeds first. Mark noted that “the equivalent of billions of barrels of oil in biomass” wassitting unused in New Brunswick’s forests. “It seems to me a very logical importreplacement.” Others in the group pointed to alternative energy sources, such as “inFredericton where they’re doing a solid waste methane collection to generate power,”wonderingwhy“wehavelandfillsitesherethatareputtingmethaneintheatmosphereandthere’snobenefitbacktous.”Theonlyexcusetheycouldgivewasthattheprovincialpowercorporationhadastrangleholdontheenergypoliticsintheprovince.Eachoftheseexamplespointstotheimportreplacementpotentialinenergyproduction—apotentialthathasbeenrealizedwithgreatsuccessinotherjurisdictions.Twentyyearsago,Güssing, Austria, whose import replacing energy initiative was mentioned earlier in thisreport,wasadyingruralcommunityof4,000.Itsoldindustriesofloggingandfarminghadbeendemolishedbyglobalcompetition.Manyof today'seconomicdeveloperswouldhavegiven up and encouraged the residents to move elsewhere. But the mayor of Güssingdecided that the key to prosperity was to plug energy "leaks." He built a small districtheatingsystem,fueledwithlocalwood.Thelocalmoneysavedbyimportinglessenergywasthen reinvested in expanding the district heating system and in new energy businesses.Sincethen,50newfirmshaveopened,creating1,000newjobs.Andmostremarkably,thetownestimatesthatthiseconomicexpansionactuallywillresultinareductionofitscarbonfootprintby90percent. Beyond expanding the actual production of energy, benefits can accrue tocommunitiesthatsimplyreducetheuseofenergythat’sbeingimported.Thisiseasytoseewithenergy.AsShuman’smacroeconomicanalysisrevealed,localizingenergyandutilitiescancreatehundredsofnew jobs inAtlanticCanada,and increasing theoverall energy efficiency of all households and industrial sectorsmeans that everyresident and every business has more money to spend on other local goods andservices.21Shelburnecommunitygroupparticipantshiton this independently.Todd“was

22

thinkingaboutthingsthateverybodyhastobuyallthetime,likeelectricity,”andthoughtitmadesenseasanimportreplacementopportunity:

Everybody here is spending $100 amonth atNS power. Except formeandDebra.Wegotasolarpowerhome,sowe’respendingthat$100onsomethingelsehere. Iwaswonderingaboutcommunity feed-in tariffs.They did can those, didn’t they? Do you guys know about any otheropportunities for that?Likewhycouldn’t therebevery localpowerco-ops,liketheGreenHarbourPowerco-op.Ifyoucouldget15householdsinWestGreenHarbourtoputsolarpanelsontheirroofs,andthenfeedourlittlemicro-grid,then…

ToddinShelburne

Todd’sthinkingrunsparallel tothatbehindtheTownofBridgewater’srecentenergyself-relianceinitiative,EnergizeBridgewater.Thetownisleadingateamofcommunitypartnersinaprojectthatseekstoeducateresidents,fundexperimentalenergyprograms,andcreatetheinfrastructureandbuy-infora“local,efficient,renewableenergyeconomy.”22Energyrepresents, then,a significantopportunity to reducea community’s relianceon imports, connect a local need to a local product, regain some control overeconomiclife,andfreeupconsumers’moneyforotherpurchasesinotherindustries.However, it could also represent a significant risk, if the focus is on fossil fuels. InSouris, Business-Government participants discussed the risk involved in offshore drilling.MuchliketheShelburnegroupthatfigured“oilandlobsterdon’tmix,”theSourisresidentswerenotkeentoexposethemselvestotheriskofanoilspillbyexploitingoffshoreoil.Bruceimaginedwhatmighthappenif“theydecidetodrillonoldHarryouthere,andthere’sanoilspill. And the currents in the Gulf of St. Lawrence are circular, it would effect all fiveprovincesintheGulf if thateverhappened.”Tamarachimedin:“Keepthatoilpricedown.Let’skeepthatoilpricedownsotheyjust[…]leave.”“Forgetit,”saidanotherparticipant.Itwasnotjustoilexplorationthatworriedparticipants.Thegroupthoughttheircommunityhadthehighestcancerrates inthecountry; itdoesnot,but thisperceptioncolouredtheiropennesstopollutingorpotentially“toxic”industrialactivity.AsCynthiareflected:

“Ithinkwe’resittingonapotentialbigdetractortotheprovincebecauseweareperceivedasabeautiful,pristine, lovelyplace tovisit;green, red,rollinghills,allthatstuff.Thedirtyunderbellyofthatiswe’reaprettytoxicprovinceintermsofwhatittakestogrowthemassesofpotatoesthatareexactlytherightlengthtofitinaFrenchfrybox.Soweallknowhowthat’sbeingdrivenandweknowhowthateconomyisbeingdriven.Weknowhowthefarmersarebeingpressuredinordertosupporttheirfarm,tocreate a cheaper potato. […] And the dirty underbelly is that [this] is theantithesis towhoweare.We’re not a beautiful, green farm floating inthe middle of the deep blue sea. We’re a toxic farm floating in themiddleof thebigbluesea.And that iseventuallygoing tocomeback

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andwhompusoverall,intermsofagreatplacetolive,agreatplacetovisit,agreatplacetodobusiness.ThatisbigvulnerabilityandIthinkit’saslowtrain,butit’scoming.”

CynthiainSouris

Resistancetoenergyprojectsissometimesinterpretedasresistancetochange—period.Butthefocusgroupdiscussionsrevealthatbeneaththescepticismaboutoffshoreoilandotherlarge-scaleindustrialactivitiesisagenuineconcernabouttheenvironment,forthesakeofeverythingandeveryonethatlivesinit.ThisconnectswelltoafinalconsiderationaboutIRstrategiesthatissometimesinterpretedaschange-resistancetoo.Right-sizeddevelopmentOne of the things we heard over and again in the focus groups was the perception thatgovernmenteconomicdevelopmentpolicy,atalllevelsbutwithincreasingrelevanceasonemovedfrommunicipaltoprovincialandfederal,isoutoftouchwithlocalconcerns,interestsandneeds.Rural focus groupparticipants longed for economicdevelopment thatwas theright size for their community. They intentionally and explicitly brought up examples ofdisconnected policies, but they also revealed other disconnects—examples they had notthoughtofasdisconnects—unintentionally.The first pertained to entrepreneurship, an activity pressed on rural communities frommunicipal,provincial,andfederalgovernments,andwhichmanybelieveisthecurefortheireconomicills.Theprevailingwisdomisthatruralpeopleneedtostarttheirownbusinesses,create their own jobs and revitalize their communities from 'the ground up'. Mostparticipantsinternalizedthesethings,buttheyalsoexhibitedacuriousdismissalofcertainnewbusinessesintheircommunities.InSouris,itwasapetsupplystore.Fredinitiatedthediscussion.

Fred:oneof thethings I findthat’sreallydifficult togetover is ifsomebodyopens a new business, it’s generally not supported because, I don’t know ifpeopledon’twantit,theydon’tthinkyoushouldbeopeningit,orrunningit.Butitjust,alotoftimes[it]doesn’t…[…]

Joe:[…]That’sthetoughpartaroundhere.Peopledon’tacceptthefactthatit’sanewbusinesstryingtogetgoing.[…]Sandy:butwhyanotherbusinessofthesamethatwealreadyhavethat’sbeenherefor40years,andtocomeinoutofspiteandallofasuddennow,I’mgoingtoopenapetstore.Weneedwaymorearoundherethananotherpetstore.

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Heather:hopefullythey’llfindthatout.Thediscussionmovedonasparticipantsnamedsomeofthenewerbusinessesthatopenedwithinrecentmemory,pointingtoseveralimmigrant-ownedrestaurantsthatseemedtobedoingwell.Fredreturnedtohisoriginalthought.

Fred: [it's] another, east coast thing. If, somebody thinks somebody is beingsuccessful at something, ok, you start a business. And somebody thinks you’resuccessfulatsomethingwithinthreeyearsthere’s10atit.Sowhentherewasenoughmoney in it for one person, there’s certainly not enough money in it for 10. […]They’repushing thisentrepreneurstuffhere.And,anentrepreneur isacopyartist.Wedon’tneedcopyartists.Female[inbackground]:weneedoriginals.Fred:Weneededucatedinnovators.Wedon’tneedanymorecopyartists.

At first, the exchange about the pet store reads like the parochial, change-averse, self-limiting "attitudes and understandings" that politicians, pundits, and commissionersdescribeasbarrierstothe"economicgrowth"andincreased"productivity,trade,innovationandvalue-addedproduction"ruralcommunitiesneedtosurvive.23However,thediscussionpresentedabove isnotaboutchangeornewbusinessassuch.It is about thebenefitsofmarket competition and the appeal of competitiveness as an economic developmentethos. Both are prized in larger, urban centres, but here, they are disputed. Toparticipants,itdoesnotmakesenseforasmallcommunitytoplayhosttotwopetstores,ortwo of most any entrepreneurial endeavor, even if two businesses competing is whattheoreticallymakesbusinessesbetter,offersconsumersmorechoice,andleadstoeconomicgrowth.Insmallruralcommunities,participantstoldus,thereisnotenoughlocalconsumerspendingtosupportthiskindof‘development.’Thiscameupineverycommunity.InBurin,Sarah(58,economicdeveloper)noted:

One business owner starts something, and is doing reallywell, and then[another]personwill say ‘oh they’redoinggood, let’sdo thesamething.’Andthenthere’s4or5more[…]sothey’restarvingoneanothertodeath,andthensomebody,probablytheoriginalpersonthatstarted[goes]outofbusiness, because they’re the ones that put the big investment into it, tostartit.Andthentheonesthataresaying‘ok,wellthey’redoingwell,andlet’s just do this little bit.Wewon’t offer the full service they’re offering,just what we think is making the money.’ Then what happens is theoriginalpersonendsupclosingtheirbusiness.

SarahinBurin

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These anecdotes suggest that the compete-to-win strategy that allows the cream torise in populous urban centres does not seem viable to people in smaller placeswheretheimpactofasinglebusinessopeningorshutteringisproportionallyhuge.Itmaybemorethanmereanecdote;participantsarenotaloneinquestioningcompetitiveness.Economist Paul Krugman calls it "a dangerous obsession".24And economic geographerGillianBristowhas critiqued regional economic development discourse specifically for itsnaïve adoption of competitiveness, without questioning, for example, "the structure,beneficiariesanddurabilityofimproved[…]competitiveness.”Assheargues,

More empirical research needs to be directed towards identifying whatoptions there are for regions that do not have the cultural and institutionalconditions conducive to the development of innovative, internationallysuccessful firms. In the absence of thismore rounded view of the differentmodalities of regional competition, policy will continue to be based on therathernaiveassumptionthateveryonecanbeawinner.25

Bristow'slastpoint—thatitisnaïvetothinkeveryonecanbeawinner,especiallyinsmaller,peripheral markets—is exactly what Fred tried to convey about entrepreneurial "copyartists." The knee-jerk reaction he described, to intentionally avoid a new business thatcompetesdirectlywithanestablishedbusiness,thusmakessenseevenifitisnotbeneficialto local communities in practice. Further, although it sounds unpleasant when SandycharacterizesthenewbusinessownersasspitefulpeopleandHeatherhopesthey"findout"theerroroftheirways,theseaversionsarearguablythekindofethicalreactionsthepolicy-makersneedtolookatdifferently.Theyarenotmerelyparochialattitudes.While parts of them deserve to be corrected, these reactions also contain some grains oftruth.Theypointtotheneedfordifferent,carefuleconomicplanninginsmallplaces,andforpubliceducationabouthowmarketsandentrepreneurialculturesdevelopandwork.Theyunderscore the pitfalls of transplanting an urban development ethos to a rural settingwithoutadjustingthewaythatethosisoperationalized,framedandcommunicated.A similar discussion about competition ensued in Shelburne, about a shortage ofapprenticeshipopportunitiesforyoungtradespeople.Nancyrecalledaconversationshehadwithherlongtimeplumber.

Isaidtohimoneday, Isaid, 'whydon’tyoutakeanyoftheyoungguys?'Hesaiditwas'becauseifItakeonayoungapprentice,'hesaid,'I’mgoingtohavetochargeyoumore,'andhesaid 'youknowyoumightbeable,youmightbeokaywiththatbutI–littleMissDaisydowntheroadshecan’taffordthat.'

Claudiajumpedintosurmisethatmanyyoungapprenticeswere

“coming out of the trades at the community college [and] they can’tapprentice,becausenobodywilltakethemonandsomeofitis,likeyousaid,thepersonthattakesthemonwillhavetochargemore,ortheotherthingis

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that theperson [says] 'well, I’mgoing tohave competition; thatperson in ayearortwo’stimeisgonnatakethejobsthatI’mdoing.'”

Ontheonehand,participantswantedthingstoimproveforyoungtradespeople.Butontheother,theyempathizedwiththeoldertradespeopleandbelievedthatinasmalltowntherewouldneverbeenoughworktosupportmoreskilledtradespeoplethantheyalreadyhad.The older plumber’s weariness about competition was not viewed as selfish; it wasinterpreted in Shelburne as a concern for the overall health of the community. Toomanyapprenticeswoulddriveupthetrade’sprices,soonlythewinningplumberwouldbenefit.But if competitionwas unchecked, the customers and the plumberswho could no longersecureenoughbusinesswouldsuffer,andwiththem,thewholelocaleconomy.Participantshad difficulty balancing their concern for other community members with a desire for amoreconsumerchoiceandlowerprices.Asparents,ithurtmostparticipantstoacknowledgehowlimitedtheopportunitieswereforyoungworkers,andtoadmitthatmanywouldhavetomoveawayiftherewasnotenoughlocal demand for their career of choice.But theydidnot begrudge the “oldplumber”; hisactionsmadesenseincontext.Thescenarioparticipantsdescribedpointsagaintotheneedfor careful economic planning in small rural communities, whether it takes the form oftargeted business start-up incentives or targeted incentives around post-secondaryenrolments and apprenticeship, and careful considerationof the rural context—especiallythe social and interpersonal relations that “embed” economic activity—in any policydiscussion.26Fortunately,importreplacementalreadydependsoncarefulplanning,specificallyintermsof developing inventories of local businesses and identifying “leaks” that a new uniquebusinesscouldplug. Itonlyencouragesthe“copy-artists” identifiedbyFredandhis fellowparticipants in Souris if local demand outstrips local supply and thus leaves room forcopying.Thus,an import replacementstrategy is simultaneouslya strategy for right-sizedeconomic development, so long as it takes into account the risks and considerationsexamined in this section. However, the task of replacing imports is not without itschallenges.BARRIERSTOIMPORTREPLACEMENTLateintheBurinTownHallmeeting,whenmanyinattendanceseemedinspiredtoact(andadmittedlyunsurehowtobegin)tobringabettereconomytotheregion,amaninhislateseventies raised his hand. The moderator had just finished saying that it was up to thepeople in the room to chart a path toward local prosperity, and theman began telling astory.Heworkedinafishprocessingplantonthepeninsulamostofhislife,throughchangesofownershipandeven thecodmoratorium.Butadecadeago, thecompanyshuttered theplant, citing changes inglobaldemand for filleted fish. “Theymade theirmoney, and theyweredonewithit,”hesaid.Whentrucksandadditionalworkersrumbledintotowntodismantletheidleplantandhaulthemachineryawaypiecebypiece,themanandmanyofhisformercoworkerstriedtostop

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them by occupying the plant. At least if the plant’s infrastructure remained in thecommunity, they thought, someone else could buy it and run it again. Some laid-offprocessors stood in the road, in an unsuccessful bid to block the trucks carrying the lastpieces of their livelihood. But the building was gutted around them. They watched itstrippeddowntoitsshell.Themansimplytoldhisstoryandletithang.Butwhatitsaidwasthatcommunityspiritandgrassrootsinitiative—whateverwewishtocallthepowerofordinarypeopletodeterminelocaleconomicaffairs—wouldinevitablyconfrontatidetoopowerfultoturn:theimmenseforceof global capitalismand its fundamentaldrive towardefficiency, lower costs, higherprofits,andconsolidation.HisstorypunctuatedanarrativethathadbeenslowlydevelopingoverthecourseofthefocusgroupsacrosstheAtlanticRegion:anarrativeabout“thelittleguys”—thesmallbusiness,thesmallcommunity,thecitizens’organization—andalltheoddsagainstthem.Theeconomicgame,topeopleinthesecommunities, isrigged;oratthevery least, the playing field is so seriously uneven that asserting local control over localeconomiclifeseemssimultaneouslynecessaryforsurvivalandnearlyimpossible.However,there is cause for optimism. In each of the barriers to local control, there is a clueabout exactly what territory local communities must capture in order to begin todetermine their owneconomic futures—and therefore a clue about howpolicy andpractice,ingovernment,businessandcivilsociety,mustchange.AnUnevenPlayingField:EconomiesofScaleAs consumers, focusgroupparticipants admitted thatdespitebelievingvery strongly that“buying local”wasethically the right thing todo, theydidn’t alwaysdo it.As someof thediscussionspresentedalreadyrevealed,manypeoplewereemotionallytriggeredbybuyingthingsoutoftown—frustrated,ashamed,guilty,angry.Buttheyconsistently justifiedtheirout-of-townpurchasesbypointingtothepragmatismoftheirdecisions.LikeThelma,whowenttoCalaisbecausesomeoneelsewasgoinganyway,peopledescribed“inforapenny,inforapound”decisionswhereiftheyhadtogotothenearestcitycentreforsomethingnon-negotiable,likeadoctor,theymightaswellgetabiggroceryordertheretoo.JoshinShelburnedescribedthisas“amentalityhere”:whenpeoplegotoanearbyretailcentre for work or appointments, they think: “hey, why don’t I just stop by [the big boxstore]andpickupthe5chickenbreastpackagefor$10?SinceI’mgoingtobethere.”Joshsaidit“kills”him“toevenlookinthedirectionof[thebigboxstore]”,butothers“wanttosave as much money as [they] can” and he could appreciate that. Indeed, in everycommunity, we learned of the practice of keeping a “town list”—a list of items peopleplannedtopurchaseonthenexttriptoamajorretailcentre.Consistently, cost and convenience drew most people to spend money outside theircommunity or shop online, even if it went against the ethical attachments they had toshoppinglocal.Evenfactoringinthecostofgas,peoplesaid,itwascheapertostockupongroceries a hundred kilometres away, because things are marked up in the small localretailers. Besides which, people pointed out, they couldn't even access specific productslocally anyway. In Shelburne and Souris, participants estimated that 60-80% of their

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spendingonhouseholdgoodsandservices 'leaks' fromthe localeconomytoneighbouringcommunities,otherprovinces,orthroughonlineshopping.Thisunderscoreshowcostandconvenience become one of the “myriad biases” against locally-owned import-replacingbusinessesmentionedatthebeginningofthisreport.Thankfully,costandconveniencearenot inherently better in large,multinational corporations. There areways to devise cost-competitive and convenient offerings from locally-owned businesses too, and these areconsideredlaterinthisreportandintheImportReplacement:LocalProsperityforRuralAtlanticCanadareport.Participantsframedtheeconomicleakscreatedbytheiroutsidepurchasesasmorallywrongand detrimental to the survival of their communities—because theywere depriving localworkersofwagesand localbusinessownersofprofits—and thus theywerecompelled toexplainthemselves.They"hadto"spendmoneyoutof town,eitherbecausecertainthingswereactuallyimpossibletoacquirelocally,atanyprice,orbecausetheyweren'twillingtogive up extra income and spend extra time just on ethical principle. It was foolish,financially.Theypleadwiththeresearchersandtheirfellowparticipantsforunderstanding:

Fred: You have to realize this island only has the population of Moncton, NewBrunswick.Ok? […]So, there is stuffyou just can’tgethere.Period.Youknow?Andsoyouhavenochoicebuttoshoponline.

Setting aside the point that having “no choice” but to shop online points to an obviousimportreplacementopportunity,shoppingonlinewasakintothe8thdeadlysininthefocusgroups.People found it repulsive, butmostof themdid it anywayand characterized it asnecessity.Forexample,Monicashoppedonlinethroughamajorchainretailertosendacarepackagetoherdaughteratuniversity.Pointingtothecostandconvenienceof thisoption,especiallywith free shipping, she said, "Really I had todo it thatway because itwas thecheapestwayandthequickest.”ParticipantsinSouris,MiramichiandShelburnetoldustheyboughteverythingfrommotorcyclepartstodiapersonline,citingfreeshippingfrommajorretailers,convenienceandselection intheirrationale fordoingso."It’s justsomuchmoreconvenienttoshopthatway,"saidHeather."Andyoucanwearyourpajamas,"addedNancy,elicitinglaughterfromtherestofthegroup.Participants saw their own behaviours and choices as consumers mirrored in theinstitutions in their communities. Institutional procurement—for example, the food innursinghomesandschoolcafeterias—seemedtofollowcostandconveniencetoo,butitwasfurther hemmed in by government and corporate regulations. In Souris, the communityfocusgroupwasperplexedbythewaynursinghomesandinnsprocuredtheirseafoodfrommultinationalcorporationsinsteadofservingtheirclientsandgueststhefreshestcatchfromlocalshores.Fredzeroedinononemajorreason:“whenyouwantfishonceaweek,whichisFriday, the only way you are guaranteed a supply of fish is to buy from an institutionalsupplier.BecauseeveryFridayoftheyearyoucancallthemandthey’llbringyouyourfish.Andthat’swhypeoplegothere.”Heatheradded,“there’srulesaroundstorage,andallthatstuff. Probably locallypeopledon’twant tobebloodywell botheredwithbecause it’s toomuchtrouble.[…]Sothefacilityhastofollowtherules,sotheybuyfromsomebodywhowillbotherwithit.”

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WhatFredandHeatherpointout,andwhataffectsindividualconsumerswhentheyoptforconvenience and cost-savings, is a phenomenon called “economies of scale.” This phraseconveys the theory that the bigger the firm, the higher its production or output, and thelower the administrative and transport cost of producing each item or taking on eachinstitutional contract. More productive firms can theoretically pass these savings on toconsumersthroughslightlymoreaffordableproductsthatarealwaysavailable—neveroutof stock—and always the same—the quality rarely fluctuates. This is the advantage thatlarger, usually non-local firms have in institutional procurement and consumer spendingalike.Their size—and theeconomiesof scale that sizeallows—ostensiblymeans they candeliveraconsistentproduct,ontime,inkeepingwithregulationsthatsmalleroutfitswouldhavemoredifficultymeetingsimplybecausetheyhavefewerresources.Acceptingthistheorymeansacceptingthatsmallerbusinessescannotoperateasefficientlybecause they do not benefit from the same economies of scale. However, economistsconcedethatbignessalsointroducesdiseconomiesoflargerscale,andthusthechallengeistofindtherightbalancepointwhereeconomiesanddiseconomiesofscalebalanceout.Thisis important because the object of import replacement in rural communities is to helpidentifyright-scalemodelsineverysector—andnotcedecompetitivenesstolargerplayers.Yetalinearunderstandingofeconomiesofscaleleadsmanyeconomicdeveloperstofocusongettingsmalllocalbusinessesto“scaleup”andcompetewithbiggerbusinesses,ignoringthe impact of diseconomies of scale and thus ignoring opportunities for right-sizeddevelopment.An additional problem is thatwhen local businesses get bigger, unless theyadoptaprofit-sharingstructure, theprosperity theygeneratetendstogetconcentrated infewerhands.AsGregexplained,forexample,“thescallopindustryisinthehandsofoneortwopeoplewhichistoobadbecauseitwouldreallybegoodforthewholeeconomy.”EventhoughGregreconsidered—“Ishouldn’t’sayit’stoobad.Alotofpeoplearegettingitgoodoff of that industry as well”—his point remains: local prosperitymeans little unless it isdistributed among many hands. One businessperson getting very rich off a particularindustryisgood,sure—butitdoesnotmakemuchofadifferencetothesustainabilityofthecommunityunlessthatpersonisendlesslyphilanthropic.DonfollowedGregtotellusthat“thebiggestfearpeoplehavehere”isthatforeignfishplantownerswillactontheir“gettheirhandsonthe[lobster]licensesandruntheboats,”turningwhat is now an owner-operator industry into a corporate hierarchy where a processingplantownsallofthecapital,reapsalloftheprofits,andpayslobsterfishermenamerewagetocatchthefish.“Whenthathappens,”Donsaid,“thenthereisnomorewealthhere.”Localsthusunderstandthelinkbetweensmallindependentbusinessandcommunityviability.But even if a local business remains locally-owned, scaling it up conventionally requiresorienting it toward export opportunities and foreign markets. So in several importantsenses,scalinguphasoftenled, inpractice,todelocalizing,bringingonalloftherisksandinsecuritiesofexport-ledgrowth—risksthatimportreplacementismeanttoameliorate.Yetitdoesnothavetobethisway.Ideally,locally-ownedimport-replacingbusinesseswillmeet

30

asmuchlocaldemandaspossibleandexportasmuchaspossible,sothatbusinessgrowth,localization,andimportreplacementworkinharmonyandkeepeachotherincheck.Thus,inorder for importreplacement toworktoacommunity'sbenefit, small localbusinessesmustbeabletoofferinstitutionsandindividualconsumerslowerprices,more selection, and greater convenience. But theymust do this without sacrificinglocal ownership and control, severing their connection to the local industry thatsuppliesthemwithintermediaryproducts,orignoringtheparticularlocalconsumerdemandscurrentlymetwithimports.ThismayseemlikeaCatch-22,butitisactuallythefoundation for creating and nurturing locally-owned, import-replacing businesses. It hasbeentriedandtestedinnumeroussmart,growingsuccessfullocally-ownedbusinesses,andit canbeaddressedby someof the strategiesdescribed later in this report andShuman’sreportcommissionedforthelargerprojectofwhichthisstudyisapart.RegulatoryNetsEconomiesofscalethatfavourbiggerfirmswerenottheonlyperceivedbarrierprohibitinglocal institutional procurement and consumer spending. Participants felt strongly that"government regulations" were primarily to blame for absurd and opaque supplychains, the lack of economic diversification in their communities, and associatedeconomic leaks. The following discussion in the Shelburne Business-Government focusgroupillustratesthepointaboutsupplychains,withspecificexamples.

Danny:Ican’tgodowntothewharfandactuallygetafishbecauseithastobegoingthoughoneoftheplants.Luckily,allofourhaddockcomesfromourBaker fisheries and theyhave a greatqualityproduct so it is theone goodthingwehave.ButIcouldn’tgodownandasksomebodyelseforamackerel.[…]Shelley:Ican’tbuyalobsterandboilitandservethat.IhavetobuythealreadysteamedinthebagifIwanttoselllobsterburgers.Lill:We just had a shatter pack27from [local fish plant] oneday that lookslikeabigpizza[box]andwehadjustfinishedalotandweweregoingtogetsome[…].So[myhusband]tuckeditinbesidealltheotherfoodrecyclablesandtheinspectorcametosaywheredidyougetthatfish?Andwesaid,[localfishplant],andhesaid,where’sthebill?Andwesaid,theybillusattheendofthemonth.Where’sthepackage?Luckilytherecyclinghadn’tgoneoutyet,andhewasok.

Turning to barriers in the way of diversification, participants recalled examples ofcompanies and people that attempted to fish for new species—to "get out of those eightmainfishstocks"andintothingslikeseaslugs—andwererestrictedbytheDepartmentofFisheriesandOceans.Thereasonsfortherestrictionsarenotclear—thesecouldhavebeenregulationsbasedonvalidecologicalconcerns—butparticipantsfiguredtheywereenforcedbecause the DFO "doesn't like" certain species, "aren’t concerned about the owner-operator", and only "listen to each other and a few people in the industry who are

31

influential." In thisexample,apparentlysenselessregulationsconspirewithelitepowertoprohibitthe"littleguy"frombranchingoutintonewandpotentiallylucrativenewproductsandmarkets.Itseemedtoparticipantsthatsmallbusinessownersandprimaryproducershadtowrestlewithregulationsthatwerealloutofproportionwiththeirenterprises.One-size-fits-allruleswereenforcedwithoutregardforlocalneedsandknowledge.Forexample,oneparticipantsaidherhusband,afisherman,hadtoemploysecretariesto"siftthrough"alltheregulatorypaperworkoflicenses,fees,andtaxes.Moreover,"he’sgottopayforallofhisworkerstogotakealobsterhandlingcourse,"shesaid.Thisperplexedherbecause:

"Nobodyhandlesthoselobstersanybetterthanapersonwhoworksinafishplantbecausetheyknowiftheydon’tthatlobster’sgoingtobedeadwhenitgetstoChina,andthenwe’renotgoingtohaveabusiness,right?[…] That is something that when you first go there, anyone that isteaching youwhat to do, is teaching you to handle that lobster like ababy, better than a baby, you knowwhat Imean? You’re notworkingthereifyou’reslappingthemaround–you’refired,onthespot."

ShelburneFocusGroup

Shechalkedthelobsterhandlingcourseupto"justanotherexampleofbusinesseshavingtogothroughridiculousthings."Indeed, participants often found government regulations on new business mystifying,senseless,andevenmalicious.Claytonsaidthat"ifyouwanttostartasmallbusinessaroundhere – with all the government especially with the fishery you want to be really strong,becausetheywilldoeverythingtobreakyou."Hecontinued:

Iwentthroughprettywellhell just togetmylicense,andI’ve fishedonthewatermy entire life. And theyweren’t going to giveme a license because I didn’t haveconsecutivefishinglicenses.[ClaytonworkedoutWestforseveralmonthsandlosthis consecutivestatus.] […]I lostouton three licensesbecauseof thegovernment.Becauseofthat,Ihadtopaydouble,whatIwouldhavehadtopaycommerciallyforone.

InSouris,whendiscussionturnedtopotentialalternative,import-replacingusesforemptyor underutilized buildings—such as schools in after-school hours—it quickly focused onregulatorybarriers,especiallyinsurance.Thegroupfigured"thegovernment"wouldnotletcommunityorganizationsorsmallbusinessesusethelocalhighschool'skitchenafterhours.Orifitdid,therewouldbetoomanyhoopsforuserstojumpthrough.

“Therearepeoplewhogoouttothecommunities,thelocalnon-profitgroups who depend on pot-luck suppers and whoever, whatever tosurviveon.And there’saguy comingaroundwhoprobablywouldn’t

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havea cluehow toboilwater tellingyouwhatyoucandoandwhatyou can’t do. Imean that kind of stuff needs to be investigated andstopped.It’sjusttheruinationoftheisland,that’swhatitis.”

SheilainSouris

“Sheila, to your point, you’re right. Nobody is taking their lives intotheirhands,buyingfoodfromabakesale,becausewe’vebeendoingitforever,andnobodyhaspassedawayfromit.Butnowtheclimatehaschanged to where everybody is afraid to buy something at a bakesale.”

CynthiainSouris

To be sure, government regulation is important. In fish processing, anecdotal evidencesuggests a significant amountof caught lobsternevermakes it tomarketbecauseofpoorhandling.28If this is true,mechanisms toensure thatpersonnelareproperly trainedmakesense. (It also means private operators have an incentive to improve efficiencywithoutgovernmentmandates.)Regulationsonwhocanfish,whatspecies,andwhere,aregenerallyimportantforthesustainabilityofalloceanandcoastallife.Certainregulationsensurethatfood is only prepared andprocessed inmass quantities in clean, safe facilities by trainedpersonnel.Noparticipantdisagreedwith thesekindsof regulation in theory.But they feltthatithadgottentothepointwhereregulationswereoneoftheprimaryfactorsprohibitingpeoplefromstarting,expanding,andsucceedinginbusinessesofallkinds.These feelingsarerooted inanecdote,but theyare important tounderstandbecause theyimpactpeoples’behaviours.Whetherornotitistrue,thebeliefthatinsurancewouldbetoocostlyonanewtourismventure—thisisanactualexamplethatcameupmultipletimesinour focus groups—curtails a person’s entrepreneurial ambitions. This speaks to asociologicalprincipleattheheartofthisreport’smethodologyandinterpretations:“Ifmendefinesituationsasreal,theyarerealintheirconsequences.”29Thereis,then,adualcourseofactionforanyimportreplacement-focusedeconomicdevelopmentstrategyrespondingtosuchbeliefs:regulationsthatareunreasonableandbiasedagainstsmalllocally-ownedbusinesses must be identified and adjusted, while regulations whose benefits forlocally-owned outweigh their risks and limitations should be better explained,justified,andmadeeasier toconformwith.Thisaction,importantly,requiresacceptingthepremisethatlocally-ownedbusinessesshouldbeapriorityforeconomicdevelopmentina given community, and the premise that regulations thatwork for one scale of businessmay be wholly inappropriate for another. Once these premises are accepted—and the“attractandretain”strategyrightlyshelved—therestbeginstofallintoplace.

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DemographyandDemandParticipants in each of the focus group sites were acutely aware of their community’sdemographicchallenges.Thepopulationinall fourisageingandshrinking, likemostruralcommunitiesinAtlanticCanada.Thisfactalwayscameupininitialdiscussionsofthelocaleconomy,signalingacommonsensethatthesizeandstructureofthelocalpopulationhasanimpactonitseconomicdevelopment.Thisbasicconnectionisaffirmedbysophisticatedeconomicanalyses thatshowhowimportantpopulationgrowthhasbeen,historically,notonlyforthegenerationofwealthbutalsoforitsdistribution.30Morespecifically,thesizeofacommunitywillimpactthesizeanddiversityofitsindustries.Abusinesslookingtoedgeintoalocalsupplychaininasmallcommunitybyspecializinginaparticular piece of machinery or service will have difficulty making a profit off localprocurement alone because there will probably not be enough demand. In the Burinworking group,Bennett noted therewasbuzz about the local need for a hydraulics shop.“Butifyou’reonlymakingonepieceofpipeaweek,thebusinesscaseisjustnotthere.It’scheapertopickupthephoneandcallSt.John’sandputitontheEmeraldEastBusandbringitout.”Asimilarargumentwasputforwardaboutprofessionaldivers.Therewasaneed,but“itmaybeprojectbyproject,”evenifanaquacultureplantbeingbuiltinnearbyMarystownwouldeventuallyneed“alot.”Demandforspecializedservicesandproductstendedtoebbandflow.Sarahputherfingerononewaytomakespecializedimportreplacementwork:bynotspecializing:

“Ifyou’rebringingdivers,you’retalkingaboutthecommercialdivers,thenyougotprobably,youbranchoffintorecreationaldivers,youknowwhatImean?Ifyou’recertifiedtodo,thenthatpersonhastobediversified,andin that diving field, that’ll probably be the onlyway you could have thatkindofabusinessoryouknowtocutcosts…becauseinruralareashere,there’snobusinessspecializinginoneparticularthing.Youhavetobeabletodiversify.”

SarahinBurin

ItisnotclearwhetherSarahbelievedthatbusinessesshoulddiversifytheirofferingsorthatindividualworkersshoulddiversifytheirqualifications,butrecallingtheearlierdiscussionsabout occupational pluralism, it is arguably more reasonable to place this burden onbusinessesbecause theycollectivizeriskandcan thereforeweathereconomic fluctuationswithmoreresiliencythananindividualworker.WewillreturntothispointintheStrategiessectionbelow.While thesizeof local industrydemandwasseenasapotentialproblem,participantsdidnot generally believe that local consumer markets were too small to support businessdevelopment.AlthoughoneparticipantinMiramichiasked,rhetorically,whyanyonewould“invest” in the community if “it’s going to be shrinking”, his co-participants mainly sawuntappedlocalmarkets.Arianarecountedaconversationwithayoungprofessionalfatherintown.

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Hesaid,‘IwantareasontostayhereonFridaynightorSaturdaymorning.Iwanttobeabletostayhereandgetupandgotoalocalcoffeeshopandget my coffee, go peruse around the farmer’s market, you know do thethings’buthesaid‘butunfortunatelywecan’tseemtostayhere.Wehaveto go for the things thatwewant’ […] andwe do have farmer’smarketshere,butthey’renothingcomparedtoShediacorMoncton.Sopeoplefindthemselves going. So then our money’s going, they’re staying there thewhole day. Or maybe staying the night. The one thing that I think thatthereisademographichereinMiramichithatwantsthis.Weneedtofindthem,andthenthat’swhatweneedtofocuson.

ArianainMiramichi

Asintheothercommunities,thisnotionofanuntappedmarketwenthand-in-handwiththeideathat localconsumerswerenotawareof localproductsandservicesavailabletothemand/or the benefits of supporting local industries. Zanewanted to push back against the“pride”thatpeoplefeltaboutsavingmoneybyshoppingelsewhere,becausetheyprobablydidnot“reallyunderstandtherepercussions”ofthatdecision,intermsoflocaljobs,filledbylocalworkers,stayingandstartingfamilies.“Ifyouwant[…]agorgeousfarmer’smarketandeverything”,heargued,youcannot“complainifthecoffeewasanextra50centsorthemealwasanextra$2.”Inotherwords,Zanethoughtpeopleneededtobecompelledtoabidebytheethicoflocalconsumptionexploredearlierinthisreport.Nevertheless, participants were more concerned about the impact of their shrinkingpopulationsonlocalemployers’abilitytofindandretaingoodworkersthanonthesizeofthedomesticmarket for localgoods.Theirperception isbackedupby long-termstatisticsshowingthatalthoughpeopleinallagegroupshavebeenincreasinglylikelytoparticipateinthelabourmarket,theageingofthelargestcohort(the“babyboomers”)meanstheoveralllabour force is still shrinking. This is especially acute in rural Atlantic Canada,where thesomeoftheoldestpopulationsinCanadalive.31The focus groups’ concerns about demographics often revolved, appropriately, aroundyouth outmigration. In Shelburne, Vince proposed that “there is the basis of awonderfuleconomyhere,anditisworking,”but“wehavemorework,thanworkers,thatisafactandwehaveashrinkingpopulation incertaindemographics […] IcangoonWaterStreetandthrow a rock and never hit a 25 year old. That is the shrinking demographic. They’re allgoing to the city.” InMiramichi, participants rattledoff numerous examples of businessesthat“arelookingforpeopleallthetime”—especiallyskilledtradespeople—andcannotfindthembecauseyoungworkersgoelsewheretofindjobs.However, someparticipantsbelieved this surfacenarrativeofdecline, youthoutmigrationand labour shortages covered up some “hidden success stories” of “smaller scale localcompanies[…]gettinginternationalattention.”Moreover,theydisplayedsomeambivalenceabout youth outmigration. Insofar as employers experienced labour shortages, it was aproblem.Butonanotherlevel,peopleinruralcommunities,especiallyparents,valuedhow

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theworldhadopenedupfortheiradultchildreninwaystheycouldnotdreamofwhentheywere younger. In PettyHarbour, NL, two fishermen showing us around their cooperativebusiness reflected on the fact that the majority of their members were approachingretirement in thenextseveralyears.Very fewof theirchildrenwantedto fish.Ontheonehand,theydespairedforthefutureoftheirtraditionalfishingcommunity.Butontheotherhand,theyfullysupportedtheirchildren’spursuitofhighereducation,differentexperiencesand,hopefully,morestable,higher-payingjobs.InShelburne,oneparticipant recalleda conversation shehadwithheryoungdaughter inthemid-1980s.“Imovedherein ’86whenonaweekendtheboysdoingtrawlcouldmake$5000fillingupthetrawlbucket.Andmydaughterwasingrade8,andshesaidthat[if]youcouldmake$5000everyweekend, thenyoureallydon’tneedaneducation. I asked if sheliked working trawl buckets? She said ‘no’ and I said ‘better stick with the education’.”Similarly,intheMiramichiBusiness-Governmentgroup,Marksaid,“Idon’tthinkweshouldbedwellingontheimperativeoffindingworkforyoungpeoplelocally.”Hecontinued:

Becauseitisnotsuchabadthingthatpeoplegoawaytowork.Wehavealotofpeoplenow[…]thatIknowthatareoutwestworkingandbringingmoneyhere.[…]Sotherearethesefamilieswheretherearebreadwinnersthat areworking outwest. That’s not such a bad thing. It’s unfortunate,therearesomesocialupheavals,andsomedisruptionsassociatedwithit,butitdoesbenefittheeconomy.Thethingaboutgoingawayis-wellifallyouropportunityisonlyminimumwagejobs,orappearstobethat-peopledon’thavetheconfidencetostartupabusiness-it’snotsuchabadthingtogoaway,getexperience,bringnew ideasback.The tieswillalwaysbehere.Unfortunately, it’sbeingportrayedtobeanegativethingtohavetogoawaytowork.It’salwaysbeenthatwayinthispartofCanada.Acceptthereality.

ArianainMiramichi

Indeed,ithas“alwaysbeen”arealityoflifeinruralandAtlanticCanada.Roughlyhalfoftheparticipantsinthefocusgroupshadspentpartoftheirworkinglivesinanotherprovinceorcountry.IntheBuringroup,participantscomparedcareermoves,listingdozensofjobsandhomesintheir lifetimes,trajectoriesthat inmanycasesfollowedboomsandbusts in localindustry. Across our four sites, participantswho left felt a strong pull back to their ruralhomes.AsLorelai inSourisput it, “Onceyou’rebornandbredhere,youcan’t leave. […]Itjustkeepsbeckoningyouback.”Numerousparticipantssaidtheymovedawayforwork,metaspouse,andreturnedtotheirhome community to raise a family. “Coming home”was the objective in these cases, andemploymentwasasecondaryconcern.MarkbelievedthatifhistownofMiramichistartedtofocus on what brings people back apart from jobs, and promote “the positives”—fromcleanerair toshortercommutesandcheaperrents—theywouldattractmoreof their far-flungyouthback,alongwiththeideasandexperiencetheygainedfromtheirworkoutsidethecommunity.WeheardthesamethingontheBurinPeninsula:lowercostofliving,safer

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communities,andasimplerlifecoulddrawyoungpeopleback,eventually.InIRterms,thesereflectionsonattractingand retainingyoungpeople responds to thequestionofwhowillstarttheLOISbusinessesintheseruralcommunities,withwhatmoney.Likemanyothersinthe focus groups,Markbelieved that there ispromise in “marketing theplace”: attractingpeoplewithlifestyleattributesratherthanjobs.Asanimportreplacement-supportingstrategy,place-marketingisdiscussedfurtherbelow.For now, the point is thatpopulation ageing and youth outmigration are barriers toeconomicdevelopment,includingimportreplacement-leddevelopment,buttheyarenot impenetrable. While some concern focused on the capacity of the local market tosupport localbusinesses,participants felt thiscouldberemediedby improvingawarenessandmarketing.Theyweremoreconcernedabouthowyouthoutmigrationandpopulationageingaffect local laboursupply.Butthe solution that gained support in focus groupswasnottopreventlocalyoungpeoplefrommovingawayatall,butrathertoattractnewyoungpeopleorpullyoungadultsandtheirfamiliesbackaftertheyhadgainedexperience elsewhere. This objective turned the spotlight on local amenities, and aperceivedgapbetweenwhatkindoflifethecommunityoffered,whattoday’syoungfamilies(and potential local entrepreneurs) want in life, and what amenities businesses need inordertosurvive.LocalAmenitiesEachofthefourcasestudycommunitiesisabeautifulplace,withriveroroceanviews,greenspaceandwilderness,andattractivehistorichousesandbuildings.Eachboastslowhousingcostsrelativetourbanandsuburbancentres,forgrandhomeswithlargelotsandplentyofprivacy. Participants believed they lived in strong, supportive communities of humble,down-to-earthpeoplewholookoutforoneanother,share,andrarelylocktheirfrontdoors.Buttheyalsofeltthattheylackorareatriskoflosingmanyoftheveryimportantamenitiesthatmakelifegood:hospitals,schools,uniqueindependentretailers,banks,grocerystores,recreation facilities and reliable internet. Moreover, focus group discussions tended tobranchintotwodifferent—butnotincompatible—setsofconcernsaboutamenities.Ontheone hand, residents and community leaders wanted to see more programming andinfrastructure geared toward seniors—theexisting, ageingpopulation.On theotherhand,theywantedmoreof thekindsofamenities thatwouldattractandretainyoungerpeopleandtheirfamilies.Intalkingaboutthelattergoal,therewasnoconsensusaboutwhethercommunitiesshouldinvestinan“ifyoubuildit,theywillcome”approachorwaitforpopulation increasestoboostdemandfornewservicesandamenities.Atsomelevel,this decision is out of their control: provincial funding for certain services is dictated bypopulationnumbers.AsBrendaputit,“whenyoudon’thavethenumbersyoulosealotofprovincialmoneywhetherit’swiththeschoolsorthelibraries–soithasahugeimpactonthequalityoflifeandwhetherornotpeoplearegoingto,youknow,havefamilieshere.”Butthereisstillroomforlocalinputandadvocacy,andthusaneedforsomediscussionsabouthowtoprioritizeorharmonizeneedsfordifferentamenities.Amenities are important to import replacement in severalways—and a lack of amenitiescanactasabarriertoimportreplacement.Asmentioned,attracting,retaining,encouraging

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and/or supporting local entrepreneurs (home-grown or otherwise) depends on showingthemthattheyandanyemployeescanlivefull,richlivesinthecommunity.But,conversely,import replacement opportunities can emerge out of gaps in local services andinfrastructure,orthroughreimaginingthedeliveryofaparticularservice.Theexampleof reimagininghealthcare iseasy tounderstand: if it ishard togetgeriatricspecialists to live locallyandtreatcommongeriatricailments,perhapscommunitiescouldinvest in preventative, “healthy ageing” initiatives including recreation programs andcommunitylivingforseniors.Finally,identifyingmultipleneedsorgapsthatcouldbeaddressedwithasingle,multi-purpose solution can present unorthodox opportunities for import replacement: incolloquialterms,importreplacementiswell-suitedto“killtwobirdswithonestone.”Forexample,aSaskatchewanretirementhomeservedasanelementaryschoolforacohortof6th-gradersin2015.The“I-Gen”programdeliverededucationtokids,providedsocialandeducational programming for elderly residents, and reportedly strengthened the socialfabricofthecommunitybycreatingandnourishingintergenerationalrelationships.32Itwasnotabusiness,per-se,sotheobjectiveandmeasureofsuccessisnotprivateprofits,butitdoesrepresentefficiencyandcost-savings forthecommunity, intheshort-and long-term.Successfulandimpactful importreplacementdependsonthinkingaboutandbeingabletoseesuchopportunitiesandtheirunconventionalvalue.Thus,itisfittingthatthissectiononBarriers to Import Replacement ends with a discussion of a set of barriers that mightsimultaneouslycontaintheseedsofopportunity.HealthCareRuralAtlanticCanadaisnotaloneinconfrontingthechallengeofprovidinghealthcareforanageingpopulation.Thefederalgovernment,throughthePublicHealthAgencyofCanada,hasbeenstudyingandstrategizinghowtorespondtotheuniqueandadditionalstressthatan ageing population—with more expensive and long-term “comorbidities” and higherexpectationsoftreatment—willplaceonthenationalhealthcaresystem.Infact,theUNhasbeenworkingona“globalagenda”todealwithpopulationageingforoverthreedecades.33At these high levels of policy, the emphasis has generally been on the goal of creating “asociety for all ages.”34This is not just amoral imperative, but also a recognition that it isbeneficial for all of us if we have healthy, well-supported and socially integrated olderpeople.Often,thisvisionbeginswithafocusonhealthcare,butpolicymakersandmedicalexperts consistently emphasize that health care is not an isolated sector, but an integralpieceofoursocialfabric,connectedtosocialinequality,economicdevelopment,andsocialinclusion.Atthelevelofruralcommunities,theavailabilityofgood,reliableandadequately-funded health facilities has an enormous impact on quality of life, livelihoods, andcommunitysustainability.InShelburne,Bernadette sharedananecdoteunderscoring the significanceof localhealthcareforanyimportreplacement-focusedeconomicdevelopmentplan.

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Last year, I received a telephone call from some business people in[anotherprovince],andtheywantedmetobookaccommodationforthemtobeinShelburnefortwoweekssoIdid.[…]Therewasaverylargepieceof land that theywere looking at thatwas for sale. These folks owned a[business]inBC,andtheyhaddonealotofhomework–andImeanalot–and they just felt that this area could be perfect for growing the type of[crop] that theyhad inmind.And theywouldemploybetween50and60people to get it started, and then grow it from there. […] But Shelburnewasn’ttheonlyplacethattheywerelookingatinNovaScotia.Andattheendof the twoweeks they fell in lovewith thepeoplehere,and thearea,butitwasourhospital:becausetherewasnotafullhospital,and[…]theylookedatthenumberofhoursthattheERwasclosed,andifyou’regoingtohaveoperationwith—you’reemployingpeoplearoundtheclock,yougottomakesureyouhaveahospitalincaseyouhaveanincident.TheymovedontobuylandoutsideofShelburneCountysothey’regone.

BernadetteinShelburne

One of Bernadette’s fellowparticipants remembered, in the 1990s, hearing and attendingconsultations about plans to reduce the local hospital’s hours and breadth of services.Residents internalized theneed forbudget cuts, andaccepted that a shrinkingpopulationinevitablymeantasmallerinvestmentinlocalhealthcaredelivery.Yearbyyear,peopleinShelburnefoundthemselvesdrivingoutoftownformorespecialistappointmentsandtests,notrealizinguntiltoolatethattheywereexperiencingdeathbyathousandpapercuts.Theemergencyroom,likeitscounterpartsincommunitiesacrosstheprovince,hasshiftedfroma 24-hour operation to one that closes, sometimes for a week.35 More recently, thisparticipantwasvisitingaspecialistinaneighouringtownwhotoldherthat“inararecase”hewouldtreatsomeoneatShelburne’sRosewayhospital.“Well,nowyouhaveararecase,”she replied. In retrospect, she likened it to lining up at the human bank teller instead ofusingtheATMinanattempttosavewhatwas leftof the in-person, localservicedelivery:youuseit,oryouloseit.Unfortunately,oneperson’seffortsto“useit”areunlikelytostemthetideofserviceloss;itis verydifficult to intervene in the “vicious cycle” of populationdecline andpublic healthcarecuts.Ineverycommunity,justasBernadettedid,participantsunderstoodtheknock-oneconomicandsocialeffectsoflosinglocalhealthcareservices.InSouris,whereweweretoldthere is an “excellent hospital,” there is a dearth of specialists. Participants felt like theirproximity to Charlottetown allowed the provincial and federal government to steadilyredirect funding away from Souris toward the bigger town, putting the onus on Sourisresidents to commute to specialist appointments. As previously discussed, specialistappointments inabiggercentreusuallyservedasanexcusetostockuponcheaper,moreinterestinggroceriesandhouseholdgoods.Accordingly, participants blamed the consolidation of health care services for additionalleakagesofconsumerspending.ThelmaadmittedthatbecauseshehastoseeaspecialistinCharlottetown,and“paysomebodytodrive”there,“youbetterbet,ifacanis50centsmore

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inSouristhanitisinCharlottetown,I’mbuyingmytencansoftomatoes”whileIamthere.Margaret (60, entrepreneur, Souris) said “I seeCharlottetownasbeingoneof ourbiggestthreatsinaway.Especiallyourhealthcaresystem.”Numerousfellowparticipantslaughed,sighed, and thanked her for having “brought it up.” She explained that after receiving atreatment inCharlottetown, shewanted to “come toSouris to continuemyaftercarewithphysio.”ThespecialistsinCharlottetownstronglyurgedherto“travelthere3daysaweek”insteadbecausetheydoubtedthequalityofserviceinSouris.Sherelentedforawhile,and“you know, excuse me for popping in to one of the stores [in Charlottetown] to getsomething,[and]bythetimeIgethomeI’mwipedout,Idon’thavetimetogotothestoreinSouris.” Eventually, she persisted and was allowed to return to Souris to continue heraftercare,andclaimedshewasreceiving“excellenttreatment”despitethedirewarningsofthepractitionersinCharlottetown.ShethoughttheirinsinuationofinferiormedicalservicesinSouriswasbothinaccurateanddamaging.“WhowouldwanttomovetoSourisifyoucan’tgetadequatehealthcare,youknow?”Someparticipantsturnedtheproblemonitshead—asimportreplacementtendstodo—andthoughtabouttakingtheunmetlocaldemandforhealthcareservicesandturningitintoanopportunity. Nancy began by recounting what happened when the federal governmentdivested themselvesof Shelburne’snaval base, paying the community5milliondollars totakeitover.“Wedidn’tcareaboutthe5milliondollars,”sherecalled:

Wecaredaboutalltheprofessionaljobsandthechildrenthatwereinourschoolsandtheywerenowgone.Andthenafewyearslater,theydecidetoclose the boys’ school (1994). And I was told the reason they wanted toclosetheboysschoolwasbecausewedidn’thaveenoughoftheservicestohelptheclientelethatwasinthere. I’moriginallyaCapeBretoner,andIwalkedin1967whentheythreatenedtoclosetheSydneysteelplant,andI’mtellingya, Iwanted it tobe likeCapeBretonandallof thepeoplegetoutonthestreets…butweletthemrollitbackandwalkoutofherewith45professionaljobswithanaveragesalaryofabout$60000.”

NancyinShelburne

But,shecontinued,“that’sourpastandwecan’t focusonthat.”Instead,sheproposedthatthecommunity“lookatthehealthcaresystem”:“ifweevergotageriatricspecialisthereinShelburnecountywe’dhaveeveryonecominghere insteadofusyouknow,havingtotakeourpeopletogeriatricspecialists inHalifax.”Nancy’sperspective isanexampleofhow totarget a key unmet need, even if it seems isolated, on the faith that it will havemultipliereffects—justasthelossofseeminglyisolatedservicesmultipliesintootherlostamenitiesandpeople.SchoolsRural communities across Canada, from coast to coast, are fighting to hang on to theirelementary, juniorhighandhigh schools. In anoverall climateof austerity, shrinkingandageingruralpopulationshavecombinedwithstagnantorreducedgovernment(per-pupil)

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fundingtocreateadiresituationforsmallschools.InOntario,forcomparison,asfewas121to asmany as 600 schools—most in rural areas—are expected to close in the next threeyears.36Inourfourfocusgroupcommunities,thestorywasknownbyheart. InMiramichi,thanksinparttothedeclineandeventualcollapseofthepulpandpaperindustry,weweretoldthenumberofsecondaryschoolstudentsdroppedfrom18,000to6,000overthelast25years.Inthepast3years,Shelburnecountylost650secondaryschoolstudents.Likehealthcare facilities, school closures and consolidations have far-reaching social and economicimplications.Shelburne’s 650 students “equates to 30 teachers, “ explained Claudia. Having sat on theschoolboard,sheknewthat“everyyearwe’resittingthereatthebudgetandlastyearwecut24 teachers, at anaverage salaryof about,weaverage it out about$50,000.” Shewasacutelyawareoftheknock-oneffects.

IsayitwhenI’matthatbudgettable,aboutputtingonmyoldmunicipalhat, because I see professional, paid jobs gone. So the, whether it’s thechicken or the egg,what’s going to happen and someone says you knowsomebodydidn’twanttocomeherebecauseofhospitals.We’renotgoingtogetpeoplemovinghere,ifwe’renotofferingthegoodprograming.AndanyonewhowatchedthenewstodaysawthatCapeBretonshut17schools– they’re closing 17 schools, their population has dropped 46%, ourpopulation, and I mean 650 in the last 3 years, and we’re looking atanother200 fornext year,whichwouldequate to10more teachers thataren’tgoingtobeemployednextyear.

ClaudiainShelburne

Across the focusgroups,participants feared the closureofmore local schools.To them, itwas obvious that a community without a school for kids of all ages would have greatdifficultyattractingentrepreneurs,professionalsandworkerstosettlewiththeirfamilies.But they also criticized the standardization and restriction of school uses, with somementioning, with dismay, the failed Hub School opportunity (discussed in the Strategiessectionbelow).Schoolswereacommunityasset,notjustforattractingnewpeoplebutforbuilding resilience and self-determination among the existing population. In othercommunities, they have proven to be an asset for entrepreneurship training—for allagegroups.OntheBurinPeninsula,twoformerschoolteachersdescribedhowtheirlocalpublicschoolsrecededincommunitylife,atransformationtheylinkedtotheinfluenceofdecision-makersintheurbancentres.Fionatoldusthatwhile“generallyspeaking,somethingslikerecreationaltypeactivitieshappen”after-hoursintheschools,itwas“notlikeitwasyearsago. Imean years ago the schoolwas the place to go, everything happened [there].” Theensuingconversation focusedononeseeminglymundane fact: thedoorshad tobe lockednow.

Ed: the problemwith our schools now is thatwe got one schoolboard now inNewfoundland, so the rules thatapply inour rural school, right… theones that

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appliesinSt.John’stothelargestschoolintheprovince,thesameruleappliestoourruralschool,right.Thedoorshavetobelocked.

Frank figured the changewasbecause “everybodyplans for the exceptions. Theone timethat something happens.” The result, said Ed, was that “communities don’t feel welcomebecauseifyoucangointopeople’shousesandwalkin,andyougototheschoolandyou’vegot to ringadoorbell, somebody’sgot to identifyyouona camera, right, and thatkindofstuff.Sosometimesrural,becausewegotonesystemforthewholeprovince,you’vegotto[…]lookatwhereyou’reto!”Hewentontodescribesubstituteteaching,post-retirement,ina schoolwith locked doors,where if a studentwas late or someone else showed up andknockedatthedoorafterclasswasinsession,hewouldhavetoleavehisclassroomfullofstudentstoidentifythearrivalandopenthedoor.Hewonderedifthiswasreallythesaferoption.Moreover,heandtheotherBurinparticipantsbelievedthe simple act of lockingthedoortransformedtheschoolsfromacommunityassettosomethingthatnolongerbelongedtothem—alostopportunityforlocalself-determination.Theschoolscouldbeused “formore things thanwhat they’re beingused for and formore students thanwhatwe’reusingthemfor,”saidFiona.RecreationSomeofthefunctionsthatschoolsonceservedintheafter-hourswererecreational,asFionapointed out. Intramural leagues, classes and clubs, and health and fitness programs onceusedtheschoolgymnasiumintheevenings,bringingpeopleofallagesthroughthedoorsofthe building. While each community could list a surprising number of recreationalopportunities—manyofthemhostedinchurchesandrunbyvolunteers—itisnosurprise,given the restrictionof schoolbuilding functions, thatmany feel a gap in the recreationalprogrammingavailabletothem.Liketheschools,participantssawrecreationalfacilitiesasaway to attract and retain population—including potential local entrepreneurs—but theyalsobelievedtheyhadimmeasurablebenefitsforpeoplewhoalreadylivedinthearea.In theSouriscommunitygroup,Heathernoteda lackofarecreationalpoolwhereseniorscouldgo to exercise. In Shelburne, Joaniewished for the same thing: apool, amongother“facilities”and“transportation”optionstoencourage“healthylifestyles.”Inthesamegroup,participants lamented the dearth of recreation options for kids, like hockey leagueswithenough resources and participants to keep going. In Miramichi, Nick brought up somechatter he had been hearing about a “potential […] recreational” or “wellness centre.”Hedismissedthe“peopleinChathamsayingitbettergoinChatham,andpeopleinNewcastlesayingitbettergoinNewcastle.”ToNick,thecityneededarecreationcentreanditshouldsimply “go somewherewhere it’s great for everybody.” In otherwords,Nick thought that“some of the older generations continue to hang on to” a “rivalry” between some of thesmaller towns that amalgamated into Miramichi in 1995, but “nobody thinks that wayanymore.” His generation “grew up as one city” and find the rivalry issues “baffling andfrustrating.”Insum,thereisadesireforrecreationalamenities,premisedonseveralnotions:thatbetterrecreationearlierinlifecouldsavemoneyonhealthcarelater,thatseniorsshouldbeactive

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andsociallyintegrated,andthatyoungfamilieswouldbeattractedbyrecreationalfacilitiesfor their children. However, there is disagreement about whether it makes sense tohave one major recreational facility serving several connected towns or smaller,simplerfacilitiesservingthespecificneedsofsmallerpopulations.Thesetwooptionswouldleadanimportreplacementplanindifferentdirections,aswillbediscussedintheStrategiessectionbelow.TheMythofEntrepreneurialSpiritThere is one final barrier to IR that is worth discussing, but not because it is actuallysignificant.Instead,itshouldbebroughtintothelightandthendismissedonthebasisofalack of evidence for its existence. It is themythical lack of an entrepreneurial “spirit” inAtlanticCanadiancommunities.Focusgroupparticipantshadinternalizedtheideathattheirpopulationsweretoo“risk-averse”andtoodependenton“corporations”and“goodmoney”made inAlbertaandsenthome.Peoplewhowereusedtoworking forsomebodyelse, thestorywent,are“notdriventogooutandstartsmallbusinesses.” If theyhadanydesiretomakemoneyforthemselves,theywouldgenerallyopttodoit“underthetable”toavoidthecostofinsuranceandtherestrictionsoftheregulatorynetsdiscussedearlier.However,therest of the picture participants fleshed out—of confusing and one-size-fits-all regulationsthat inhibit new businesses, economies of scale that are impossible to compete with,demographicchangesthatmakeitveryhardtofindworkersandgenerateenoughconsumerdemand—suggeststhatentrepreneurialspiritisaverysmallpieceofwhatenablesapersonto“taketheplungeintothebusinessworld,”asEdintheBuringroupputit.Moreover, the statistical portrait of rural Canada points to what might better becharacterized as an entrepreneurial, resourceful, industrious population that lacks theappropriate outlets for business generation and success. As reported earlier, ruralCanadiansaremorelikelythantheirurbancounterpartstogetatleastsomeoftheirincomefrom self-employment. It is just that their self-employment is not generally the superstartech startup that grabs headlines andmakes a handful of people obscenely rich. It is thesmall-batch, slow-production, ad hoc, custom, seasonal, low-growth-potential variety thathelps a person make ends meet. A key question for an import replacement-focusedeconomic development strategy ishow to channel that kind of entrepreneurial spiritintobusinesses that reduce individual risk, createsharedprosperity, insulatesmalleconomiesfromoutsideshocks,andtherebyincreasecommunityresiliency.OPPORTUNITIESChanneling entrepreneurial spirit into the right places, from an import replacementstandpoint, requires accurate knowledge—ideally built from top-down statistics andground-up,localperceptionsandunderstandings—ofthemostpromisingopportunitiesforimportreplacement.Beginningtoassemblethiskindofknowledgewasonemajorobjectiveof this study’s two-pronged approach, and there is indeed considerable and insightfulagreementbetweenourfocusgroupfindingsandthoseofShuman’smacroeconomicleakageanalysis.Thelatteridentifiedfive“top”IRopportunitiesintermsofjobcreation,whichareallaffirmedbythefocusgroupdata.ThetopfiveIRopportunitiesareasfollows:

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LocalManufacturing(exceptfood)AccordingtoShuman’sanalysis,thesinglelargestopportunityistoexpandmanufacturing—butlocalmanufacturing.Heemphasizesthat“thepriorityshouldbesectorswheresmallerscale production can be competitive, and smaller firms that can be launched by localentrepreneurs. These are the kinds of companies that can start with local markets andnaturallygrowintonationalandglobalmarkets.Oneattractivefeatureofthissectoristhatwagestendtobehigh.”37Focusgroupparticipantswerequicktopickuponthepotentialfortheircommunities’local“makers”—crafters,rughookers,jewelers,woodworkers,potters,knitters,andotherskilledartisans—to tap into the surging demand for handmade goods signaled by the rise ofvendors like ETSY and the growing popularity of crafters’ markets. “We have so manytalented craftspeople,” said Noelle in Miramichi. She and others believed a whole craftdistrict with niche stores filledwith unique, local, handmade goods “would fit here.” TheStrategiessectionbelowwilldelve intothe innovativewaysthatsmallcraftproducerscanserve local markets and reach distant ones at the same time. Importantly, the focus on“makers,”supportedbytheIMPLANandfocusgroupdataalike,standsinmarkedcontrastto the “smokestack chasing” approach that dominated the last few decades of ruraleconomicdevelopment.LocalWholesaleandRetailThesecondbiggestopportunityiswholesaleandretail.Tovaryingdegrees,thefocusgroupcommunities lacked some very basic retailers: grocery stores, pharmacies, clothing andhousewaresstores,hardwareandlumberstores.Allcouldrememberadaywhentherewere“country stores”or “general stores”where aperson couldgetmostbasic things.But theybelieved that this type of business was put under by the growth and power of big-boxretailers in neighbouring communities and, more recently, online shopping with freeshipping.Somewereresignedtotheloss.“Wedon’thavethebenefitsofthecity,”saidoneparticipant in the Shelburnegroup. “Thepopulationof Lockeport is583.Wedon’t have agrocerystore,wehaveageneralstore[and]agasstation,sowe’reyouknow,we’rereallyasmalltownsowejusthavetokeepongoingandwedoasmuchaswecan,everybody.”Apartfromgroceries,onemajorunmetretaildemandinallcommunitieswasaplacetobuyclothingand/orothertextiles.Thevastmajorityofparticipantssaidtheyhadtotraveltoamajorurbancentre(usually furtherthantheregionalcentre—toHalifax,St. JohnsorevenTorontoandBangor,ME)orshoponlineforclothing.Somecitedfit,otherscitedstyle,andmostcitedpriceandselectionastheirprioritieswhenshoppingforclothingforthemselvesandfamilymembers.Thereis,thus,apotentialopportunityforaregionalclothingstore,butit would have to find ways to appeal to one lucrative niche demand or connect diverseconsumerswithexactlywhattheyneedwithouthavingtotravelorshoponline.

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LocalProfessionalServicesAccording to Shuman, “professional services constitute one of the easiest sectors tolocalize.”38Interestingly,apart frommedical specialists,professionalswerealsooneof theleast likely“imports” tocomeup in the focusgroups.Participantsdidnot tendto thinkofaccountants,lawyersandotherprofessionalsasservicestheyhadtoimportfromelsewhere.However, Shuman’s data suggest that Atlantic Canadians are spending a lot ofmoney onimportsofprofessionalservicesandthuscostingtheregionthousandsofpotentialjobs.Hisreport for this project, available at http://centreforlocalprosperity.ca/studies/, discussessomepracticalstrategiesforreplacingimportsinprofessionalservices.LocalFoodShuman’s data and research expertise suggest that Atlantic Canada is in a good place to“accelerate”itslocalfoodmovement.“Food,”hewrites,“isarelativelyeasysectortolocalizebecause consumers viscerally appreciate local food in away that’s hard to dowith othersectorslikebanking.”39Thiswasplainlyevidentinthefocusgroups,whereparticipantsdesperatelywantedaccesstofoodgrownclosertohome—andbelieveditabsurdthatsomuchoftheirlocalproduce,seafood,dairyandmeatwasshippedoutbeforeanylandedinlocalhands.Theyalsonotedsomespecificopportunitiesforvalue-addedinfoodmanufacturing.IntheShelburnegroup,Claudiapointedoutthat:

“therewas a gentleman smoking salmonand other fish in Lockeport. Tome, he had a wonderful business. He had a fabulous product. He wasexporting,hadpeopleemployedandthewhole9yards.Allofasudden,thebusiness died. I think it had something to do with his own health, but Idon’t know that for sure. He had a wonderful business, and I’ve oftenwonderedwhysomebodydoesn’tpickthatbackup?”

ClaudiainShelburne

Claudia’sobservation speaks to thepotential valueofoneof the IR strategies thatwillbediscussed below: building inventories of locally-owned import-replacing businessopportunities with the objective of publicizing them and connecting themwith potentialnew operators. When business succession is left up to individuals—who, as businessowners,may find themselves shuttering successful businesses because of illness or othersignificantlifechanges,orwho,aspotentialentrepreneurs,maynotknowwheretostart—the result is inefficient, ineffective transfers and sales and businesseswhose lives are cutshortbyindividualcircumstance.Collectivizingtheprocess—throughnetworksofbusinessownersandenhancedcommunitycapitaloptions—wouldhelpcollectivizetheriskandthereward. The Western Regional Enterprise Network in Nova Scotia is beginning to trackbusinessesonthevergeofsuccessioninordertoconnectthemtonewowners.Thisisthekindof activity that regionaldevelopmentbodies shouldbeencouragedand supported indoing.

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Thereisstilltheproblemofensuringthatlocally-ownedfoodbusinessescancompetewiththe economies of scale that larger businesses enjoy. As discussed in more detail in theUneven playing field section above, participants knew they could save money—evenfactoringinthecostofgas,accordingtothem—bydrivingtoabigboxstoreonceamonthinstead of patronizing any smaller local food retailers that had managed to survive. InSouris,Joeexplained,“youcangotoCharlottetown,themainstoresinthereandspend$300in groceries and comehomeandyoubuy it here it’ll cost you$350-375.” Fred concurredthatmost items are “marked up between 50 cents and one dollar a piece.” This—plus adesirefor“exotic”,“ethnic”or“health”foods—iswhymostinSourissaidthey“hadto”traveltoCharlottetownorMontagueforgroceriesdespitehavingtwosmallgrocersintheirtown.Itisworthquestioningthemathintheseexamples,andtheconclusionthatthebigboxtripismoreconvenientthanshoppinglocal.Whileparticipantsmaintainedtheyfactoredingasmoney, they did not account for the time spent traveling. They did not comment on thequalityoftheproductsorservicesreceivedatthebigboxstores.Theydidnotmentionanyexperiencesreturningunsuitablemerchandiseorneedinganitemquicklyandbeingunabletodriveoutoftownforit.Nevertheless,what theparticipantswantedcloser tohome, in thecaseofgroceries,wasnotafull-servicewarehousewitheveryproductunderthesun;accordingtothesurveystheyweregivenafterthefocusgroups,theywantedsomethingmorequaint:aplace to stop andbuy freshmilk (Burin); “stallswith fresh vegetables” on the side of theroad (Souris); a place to buy local, fresh vegetables every day, not just on market day(Miramichi).Thecommondesiretobeabletoaccesslocally-grown,freshproduce,dairyandmeatsuggeststhatalthoughsmallcommunitiesmightnotbeabletocompetewithbig-boxretailcentresoncertainkindsofprovisions,theymightdowelltofocusonmeetingdemandforlocalfood(evenif“local”isexpandedtomeantheprovinceorAtlanticRegion).Inotherwords,localfoodretailersmaynotbenefitfromtryingtosellthesamebrandsandproductsasthebig-boxretailerstobeginwith.Theyshouldinsteadfocusonsellingunique,healthyandexoticproducts(e.g.locally-grownexoticmushrooms,locally-madegranolabars—bothofwhich are produced in Atlantic Canada), as their residents appear towant to combinesomebig-boxsavingswithsupportforlocalfarmersandproducers.Furthermore,theycanofferhigherqualityproductsandservices,better(morepersonalandattentive)customerservice,homedelivery,andabettershoppingexperience.Locally-ownedstores can become, as Nova Scotia’s Masstown Market and Pete’s Frootique have bothshowninspades,destinationsthatdrawcustomersawayfrommajorretailchains.LocalFinance,Insurance,andRealEstateParticipantsacross the focusgroupsites, likepeople in small communitiesacrossAtlanticCanada, have watched key institutions disappear from their streets. Among the emptybuildingsfoundonthemainroadsofanygivenruralcommunity,oneislikelytofindstatelystoneedificesthatoncecontainedthelocalbank.Participantsmournedthelossoftheface-to-faceservicesasclients,andtheyalsonoticedtheeliminationofthegoodjobsassociated

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withlocalfinance.Knittingtheselossestogether,Burinparticipantsdescribedtheintimateconnectionbetweenautomation,localamenities,andthesustainabilityoflocallife.

Frank: Even the local banks have closed, gone in Marystown. Even the one here’sclosingthefirstofJune.Sarah:Fortuneusedtohaveabank, that’sclosed. It’s justamachine therenow.Andyoucan’tdoanybanking,youcanonly justgetmoneyout.Youcan’t… likeone timeyoucouldgoinandpayyourbillsorwhatever,butyoucan’tdothatanymore.Frank:theytaughtusnottodothat,sopeoplelosttheirjobs.Whenwestoppedgoingintothebanks,peoplestartedlosingtheirjobsModerator:andtheyweregoodjobs.Frank:theyweregoodjobs.Ed:that’swhatIsaidtothe—overat[fastfoodchain]theretwoweekago,theyhavethemachinethere,nowyoucangoinandputyourcardinthere.AndIbypassedthat,and they said, ‘sir you couldhaveorderedyour stuff there.’And I said ‘but if I keepgoingthatandeveryoneelsedoesit,you’renotgoingtohaveajobprettysoon.You’rejustgoingtohavecooksintheback,flippingburgers,puttingthemout.Ordernumber122.’Andtheydidn’tseethat.

As Shuman’s report makes clear, these gaps in local business, including local bankinginstitutions, represent opportunities for import replacement. They connect as well toopportunities for the establishment of local securities funds and investments that aredesigned to connect local investors with ventures in their communities.Fortunately, localfinance, insurance and real estate businesses are poised to push back against the worsteffects of automation, and to turn peoples’ dissatisfaction with an increasingly de-personalizedconsumerexperienceintoanopportunity:toprovidepersonalizedserviceandbetterexperiences, toconnectbusinesswith localcommunitygoalsandwell-being,andtoinvolve local residents as more than just consumers or workers—as shareholders andinvestorsandcommunitiesofentrepreneurs.OtheropportunitiesApartfromthesetopfiveopportunities,therearemanyspecificproductsandservicesthatdemonstrate growing and in some cases urgent unmet demand in the four case studycommunities. The example of homecare for seniors in Miramichi is particularly striking.Megan told us that she had 180 employees and 250 clients, and “when those boomersrequirecare[…] Iamnotgoingtohaveenoughstaff toeven lookafter them.”Herservicecosta fractionof the costofkeeping seniors inhospitals for routinecare. Sheneeded theprovincialandfederalgovernmentstofundhomecareplacementsthesamewaytheyfundhospitalstays,andsheneededtoofferbetterwagesandbenefitstoattractmoreworkersto

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theareaandindustry.However,theseappearasminorimpedimentstowhatisevidentlyanimportreplacementopportunityonthevergeofexploding.HOWTOGETTHERETherecipeforimportreplacement,intheory,isverysimple.Aplaceneeds:

• Viablelocally-ownedimportreplacingbusinesses,• Peopletofinance,startandrunthem,• Workerstocreatevalueinthem,and• Consumerstosupportthem.

Like inanysetting—ruralormetropolitan—andwithrespect toanybusinessventure, theingredientsareattimesinterdependentandattimesconflicting.Theyalsotendtohingeonsimilar external factors that are difficult to change. For example, as previously discussed,havingtherightlocalamenities(schools,hospitals)affect,alocalbusiness’sabilitytoattractandretainworkers,thegeographyofconsumers’shoppinghabits,andacommunity’sabilityto attract entrepreneurs (but, importantly, not necessarily its ability to train locals tobecomeentrepreneurs.)Thus, sourcing all of these ingredients—in adequate and sustainable amounts—requiressome strategic thinking and doing. While more precise strategies are presented anddiscussedintheImportReplacement:LocalProsperityforRuralAtlanticCanadareportand in Shuman’s Prosperity through Self-Reliance: The Economic Value of ImportReplacement in Atlantic Canada and How to Achieve It, both available athttp://centreforlocalprosperity.ca/studies/,thefocusgroupfindings,ontheirown,pointtothegreatpotentialofamorelimitedsetofstrategies,discussednext.ThreeI’s:IdentifyingLeaks;InventoryingOpportunities;InvitingEntrepreneursAgoodfirststep,whichthisstudybegantotakewiththeBurinPeninsulaparticipants,isfora community to identify itsmost significant economic leaks, create an inventoryof thoseleaks and any existing assets that might be useful in plugging them, and make thoseopportunities and assets public so that aspiring entrepreneurs can seize them. TheBurinexercise revealed that getting even 8 local residents into a room to begin inventoryingopportunitiesisagreatsteptowardincreasedlocalself-reliance.Therearemanydifferentways inwhichacommunitycould identify theirmostsignificantdollar“leaks”causedbyunnecessary imports,anddecidewhich leakscanbestbepluggedwith viable locally-owned enterprises. All of them by nature require coordination andleadership. Thankfully, Atlantic Canada has no shortage of potential leaders: regionalbusiness development bodies abound, from the Regional Enterprise Networks to theAtlanticCanadaOpportunitiesAgencytomunicipalChambersofCommerce.Thereareevenenoughpeoplewithenergyandexpertiseintheseandsimilarorganizationstoformanewcommitteeonimportreplacement—startingtoday.

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Whoever leads the initiative in a given community or region, the group can begin byconductingsomeon-the-groundresearch.Inadditiontothetypeofhigh-levelanalysiscontained in Shuman’smacroeconomic leakage analysis, a local group can take themore granular approach of surveying consumers, businesses and policy-makersabouttheproductsandservicestheycurrentlyimportinlargequantitiesandwouldliketosourcelocallyinstead.Whereverpossible,effortsshouldbemadetoquantifylocaldemand and the potential value of sales. Statistical consultants should be brought on toconductamacro-levelanalysisoftradeinthecommunity,ifsuchdataareavailable.Theendresultofallthisresearchshouldbeaninventory—ideallyadatabase,availabletothe public online—of specific Import Replacement opportunities. At the same time, theyshoulddevelopasimilarinventoryofcommunityassets.Groupswoulddowelltoconsultthe rich literature on “Asset Based Community Development” (ABCD), an approachchampioned in Nova Scotia, for example, by the Coady Institute at St. Francis XavierUniversity.40Afulllistoftypesofassets,andaquestionnairetoguideinventorydevelopment,isavailablein Appendix 3. If a church has a commercial kitchen that could support start-up foodbusinesses, if a historic building is available for rent at a low cost to a startup, if amanufacturingplant isrunningat70%capacityandcouldmakesomethingelse tomeetalocalneed, ifagroupof localseniorshasexpertiseinrug-hookingorahighschoolclassislearninghowtoprogramwebsitesandcouldsharetheirexpertisewith(orevenbegin!)newLOISbusinesses—thesearethe“assets”thatacommunityneedstobuildawarenessaboutandbegintousemoreeffectively.With these inventories in-hand, the leadership group should endeavor to publicize IRopportunitiesorconnectpotentiallocalentrepreneursdirectlytotheinformation,andpointto underutilized assets that might be of assistance. As mentioned, there may beopportunitiesthatcouldbeseizedbyexpandingorredirectingextantbusinesses—so“new”local entrepreneurs aredesirable, butnot always essential.Theremay alsobepotentiallyproductive overlaps between isolated businesses or unmet needs, and groups ofentrepreneursthatcouldbeinvitedtoworktogetherinasharedspace.Inanycase,oncetheinventoriesaredevelopedandlocalentrepreneursinvitedtoplugtheleaks,thecommunityinquestion—beitatown,acityoraregioncomprisedofmultiplecommunities—musthavea plan in place for supporting the new or expanded businesses and, in the longer-term,nurturing and training the next generation of local entrepreneurs focused on importreplacement.WorkingTogether:CooperativesandWorker-Self-DirectedEnterprisesShuman’s report details several examples of how local businesses can work together tonurture a thriving local entrepreneurial culture, including local purchasing networks andinnovation‘hubs.’Alloftheseareinlinewithimportreplacement.Likewise,astepfurther—andinsomerespects,astepback,historically—wouldbeforcommunitiestoencourageandnurturecooperative(i.e.,worker-owned)businesses.Cooperativesmakesenseasanimport

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replacement strategy because the business model “lets people collectively ‘do it forthemselves'—whether it's responding to amarket opportunity ormeeting an identifiedneed that neither the market nor the public sector fulfils.”41Communities could sourceand/orfacilitateworkshopstopotentialentrepreneurswhowanttolearnaboutcooperativestructures.Infact,thiseducationalpiececouldbepartofthe“inventorying,identifyingandinviting”stepdescribedabove.

Whatmakesaco-operativedifferentfromaconventionalbusiness?1. Members or shareholders:Co-opsare structured tomeet thecommonneedsand

expectations of their members, whereas most investor-owned businesses exist tomaximize profit for shareholders. Depending on the structure of the co-operative,they often take broader stakeholder concerns into account, including those ofemployees, customers, producers, the local community and in some cases, theenvironment.

2. Ownership and control structure:Co-opsareownedand controlledby theusers(members) of the co-ops; decisionmaking is based on one-member, one-vote, notone-vote-per-share.

3. Allocationofprofit:Co-operativesshareprofitsamongtheirmembersonthebasisofhowmuchtheyusetheorganization,notonhowmanysharestheyhold.

Source:CanadaBusinessNetwork,201442

The enormous potential of the cooperative model has not been plucked out of thin air;rather it was illustrated to us during the course of this research by the Petty HarbourFisherman’sCooperativeinPettyHarbour,NL.Theresearchteamvisitedthecommunityatthe end of the Burin Peninsula fieldwork, having heard from Burin residents about thedramatic changes in the fisheries over the last several decades, and the challenges theirregion faced in regaining some control over its economy and natural resources. Theirexperiences affirmed the academic writings of sociologist Richard Apostle and his co-authors,who in1998remarked that themodern fisheries faced inescapable “pressures toshedthepast”, “tocompete inthemarketplace, tocompete forashareof thecatchonthefishinggrounds,andtoofferreasonableworkingconditionsandincomestofishersandfish-plantworkers.” They had little choice but to submit to the “seductions of expensive newtechnology and the demands of regulations based on scientific information.”43But all ofthese pressures seemed to lead only to the consolidation of fishing fleets, licenses,technologies and quotas into fewer and fewer hands, because “the little guy” could neverkeepuporaffordtomodernize.Federal retraining programs after the 1992 codmoratorium—whichhadbenefitted someBurin participants who switched into entirely new careers—had also led to more adeptmanagement and business savvy among some fishermen. But everyone still had troublecompeting“inthemarketplace”and“forashareofthecatch”becausetheglobalmarketwas

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and is dominated by major multinational players that do everything from harvesting toprocessing, packaging and shipping. The situation for fishermen in Burin and surrounds,whileimprovedfromtheinitialaftermathofthemoratorium,stilldidnotseemveryhopeful.Then the Petty Harbour Fisherman’s Cooperative pointed us to one important piece ofwisdom: competing “in themarketplace”neednotmean that fishermencompetewithoneanother. Instead, in the PFHC, the risk and rewards of fishing are collectivized amongmembers, eachsharingbenefitsandsacrificesalongwiththeothers,andcollectively,theycompete(andevencooperate)withthelargermultinationalfirms.The cooperative structure has another benefit, too. Before the expansion of licensingschemes and the mechanization of many aspects of catching and processing, fishermencould get in and out of fishing as required,makingmoney from their catchwhen it waspossibleandmakingmoneyelsewherewhenitwasn’t.This“robustandflexible”systemof“occupational pluralism” protected them against “the fluctuations of resources andmarkets.” In today’s context, with “modern technology” and “large investment andspecialization,” both of which depend on “predictability and control”, the older, simplersystembasedonindividualflexibility,multiplejobsandmultiplesourcesofincome,doesnotseemtoworkaswell.However,thePFHCshowsthatthesameprotectivefunctionsofoccupationalpluralism—the“jobbingaround”practicethatmakesmuchofrurallifepossiblebutalsoveryprecarious—canalsobeprovidedbythediversificationofrevenue-generatingactivitiesamongcollectivesof workers—in this case fishermen. The PHFC has, in a certain sense, engaged all of itsmembersinapluralityofinitiativesthataremeanttosupplementtheincomebroughtinbyfishing and processing: they rent floorspace in their facility to a catch and release mini-aquariumgearedattouristsandarefinalizingadealtorentspacetoamicrobrewery.Theybuilt anadditiononto their two-storeyproperty that servesasameeting roomandeventhall.With a breathtaking view of the harbor and amodern kitchen, it has even attractedinquiriesfromcoupleslookingforweddingvenues.Theyhavedonewhatnosingleperson—except a millionaire—could do in the community, by working together in a cooperativestructure.Thatstructurecouldberealizedinallsortsofindustries.RichardWolff,aUS-basedexperton “Worker Self-Directed Enterprises,” sees this model as the best bet for a sustainable,prosperous, egalitarian future everywhere. In fact, within the new or revitalized locally-owned businesses themselves, and depending on capital requirements, adopting acooperativestructure—oratleasttakingcuesfromthecooperativemodel—maybeoneofthebestwaystogetstarted.Inthefocusgroups,manyparticipantssuggestedthatlocalcraftspeopleandmakers—thosewho currently sell handmade goods and prepared food from their homes—should startcooperative “hub” storeswhere they sell theirproductsundera commonname, andevenofferworkshops,classesandcampsforlocalsandtouriststolearnsomeoftheirtechniques.This is roughly themodel takenby thePlacentiaWestMatmakers,acooperativebegun in1979 by a group of twenty rug-hookers in Placentia West, a community on the Burin

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Peninsula.A rural developmentofficer,whohad an interest inmatmakingherself, helpedorganizetheskilledwomenintoacooperativethattheyownedandmanagedandinwhichtheymadealldecisionsbycommittee.AsfolklorescholarPaulaFlynnwrites,thePlacentiaWestMatmakerstransformedthepurposeofmatmaking,fromsubsistenceandtradeto“abusiness”:

“MatswouldbesenttoshopsortotheStJohn'scraftfairs,andeventually,towholesalersoutsidetheprovince.Bythemid-1980s,PlacentiaWestMatMakerswereselling theirwares—hookedmats inseveralsizes,and teacosies—in craft fairs in Newfoundland and beyond. Several of the matmakers travelled to England and gave demonstrations of rug hooking;theirmatswereondisplayinEnglandandattheNationalMuseumofManin Ottawa (now known as the Canadian Museum of Civilization, andlocatedacrosstheOttawaRiverfromOttawainGatineau,Quebec).”44

PaulainBurin

Today,although theMatmakerscooperativehasdissolvedafter thirtyyearsofactivity, itslegacy (and the work of some members) lives on in a museum and historic site calledLivyer’s Lot. The latter belongs to the international Economusee network, which iscomprised of similar sites that take a traditional craft and turn it into an “experientialtourismdestination.”45FollowingtheEconomuseemodel,Livyer’sLotdisplaysthecraftsofmatmaking,quiltingandothertextileworkthroughstaticexhibitsandlivedemonstrations,andofferscourses,workshopsandmoreinformal“hands-on”activitiesforvisitors.Thesitealsohasa tearoom—TheTeaRose—serving traditionalNewfoundlandmealspreparedbyhand.Importantly,Livyer’sLotismeanttobeself-financingthroughthesaleofadmissions,workshops,andthecraftsandfoodproducedtherein.The cooperative model is not without its challenges. One Burin participant recalled herexperiencetryingtoorganizeagroupofcraftersintheareaintoacooperative.“Wecouldn’tgetpeopletotakeontheco-opidea,”sheexplained.Thecrafters,whosebusinessexperienceuptothatpointhadbeensellinggoodsunderthetable,wereimmediatelyconcernedaboutthe impactof formalizing theirproductionandsales, taking themoff thegreymarketandintotherealmoftaxationandinspection.Eventhoughmostwereunlikelytoclearthelevelofincomethatwouldrequirethemtopayincometaxesintheend,andcouldhavebenefittedfrombeing able to declare theirmany expenses, theywere too scared to “sign on.” Thus,withanyefforttoincentivizeorencouragetheestablishmentofcooperatives,acommunityeconomic development body has to dispel fears of excessive regulation and taxation, andtakeintoaccounttheeconomicliteracyofthepeopleithopestoorganizeandmotivate.EncouragingLocalPurchasingShuman’sreportlistsnumerousspecificstrategiesthatretailers,businessassociationsandgovernmentscanundertaketoencourageconsumerstospendtheirmoneyatlocally-ownedbusinesses, from discounts and rewards programs to local currencies and targetedmarketing.Thefocusgroupslentcredencetoalloftheseapproaches.

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For example, it was clear that apart from monetary discounts, customers also seekexperiential rewards—shopping at places that offer an enjoyable, unique experience,perhapsforthewholefamily.Infocusgroups,welearnedthatpeopleoftenenjoyedturningtheirshoppingtriptothenextmajorurbancentreintoamini-vacationseveraltimesayear.Offeringavacation-likeexperience—with livemusic,childrens’activities,placestosit,eat,drink,orbepampered—couldbeasenticingasanymonetaryreward.Whenitcomestomarketing,ourfocusgroupsdemonstratedthatconsumerawarenessiskey to increasing local consumption,and it canbesurprisingly low. In somecases, a localbusiness’schosenmethodofadvertising isnot its idealcustomerbase’schosenmethodofengagingwithbusinesses—forexample,abusinessthatadvertisesintheyellowpageswillnotreachconsumerswholookforproductsandservicesonsocialmedia.Whileindividualbusinesseswill likelywanttoplanandcoordinatetheirownadvertising,communitiescanalso collectivize marketing of locally-owned import replacing businesses in, for example,local businessmagazines availableonlineand forpickup in community centres, grocerystoresandotherpublichubs.Acommunityeconomicdevelopmentgroupcouldalsoleadthedevelopmentofotherkindsofadvertisingcampaignsthatseektohighlightlocalbusinessesandlocalshoppingasunique,importantsourcesofcommunitygoodsandcommunitypride.These campaigns could be especially well-suited to social media, which focus groupparticipants said was an extremely important source of community information andorganizing. Again, the work of marketing local businesses could be done by a localenterpriseestablishedforpreciselythatpurpose.Focus group participants were particularly supportive of ‘direct marketing’ tacticswherebyaproducer sells itsproductsandservicesdirectlytothepublicthroughtheweb,mail-order or a membership group. A popular example of the latter is the “communitysupportedagriculture”orCSA“foodbox”.A more recent development is the Community Supported Fishery (CSF). The fisheries inAtlantic Canada tend to be “harvesting-driven, rather than market-driven.” As a recentarticle inNavigatormagazine explained, thisdistinction “means there is a substantial gapbetweenwhatbuyersandconsumerswantandarewillingtopayforandwhatweprovide.[…]Harvestersmayhavealotofvaluableskillsbutmarketingisnotoneofthem."TheCSFmodelisanattempttomitigatethisshortcoming.Ittakesaquaculture’sprofitablepracticeof securing buyers and setting a price before they harvest, and applies it to “capturedproducts”.46Bridging thedemonstratedsupport for thecommunity-supportedmodelwith focusgroupparticipants’ambivalentengagementwithonlineshoppingandbig-boxstores(i.e.,theyseeboth as convenient but threatening to their communities) a small community or regioncould conceivably develop local web marketplaces or physical market spaces (forartisans,preparedfoodvendors,farmersandfishers)wheremanydiverselocalsellerscanreachthepublicdirectly.LikemanyofthestrategieslistedinShuman’sreport,thesedirectmarketing initiativeswouldbebestdeveloped incollaborationwith localbusinesses; theycouldevenbeviablebusinessesthemselves.

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LocalizeinstitutionalprocurementShifting consumer spending toward local products and services is one thing; gettinginstitutionstobuyfromlocally-owned,import-replacingbusinessesisanother.Weheardamultitudeofreasonswhyinstitutions,suchashospitals,schools,andnursinghomes,aswellas government departments at all levels, tend to purchase their supplies from non-localbusinesses instead of sourcing them from local producers, providers and vendors. Likeindividual consumers, institutions value convenience—getting exactly what they want,exactly when they want it. In the case of a nursing home that needs twenty pounds ofhaddock on Fridays, a large supplier that brings frozen fillets from China will be morereliable and consistent than a local processorwhose ability tomeet demand depends onhowgoodthatweek’scatchwas.Thisiswhyrestaurantsthatboastlocalmeatandproducetendtowritetheirmenusdailybasedonwhatisavailable.Withsomeoftheotherstrategiesdetailedabove—suchasencouragingandsupportingthegrowth of cooperative businesses that can compete on convenience (or at least beat thelarge firms on quality and reliability)—institutional procurement decisions might shifttoward locally-owned, import-replacing businesses over time, as such businesses buildcapacity to compete for institutional contracts. But there are also immediate steps acommunityanditseconomicdevelopmentgroupscouldtake:

1. Develop an inventory or database of local institutional needs that lists

quantities,budgetsandcurrentsources.Thisdatacanbeusedtoraiseawarenessabout the significance of economic leakage, and also to highlight importreplacementopportunitiestolocalbusinessesandaspiringentrepreneurs.

2. Conduct research on institutional procurement policies to identify any policybarriersthatappeartodisadvantagelocalsuppliers.

3. Beginworking directlywith specific institutions to try toshiftprocurementtowardlocalsuppliers.

Thankfully,therearealreadysomededicatedinitiativesthattryingtotiltthebalancetowardlocal, and which communities could learn more about, join, or consult for help. In mostcases, communities will not need to “reinvent the wheel,” but rather clear the way forestablishedorganizationstomoveinandhelp.Forexample,thenationalFarmtoCafeterianetworkisworkingtolocalizethefoodservedinpublicschoolanduniversitycampusdiningfacilities. They have programs to connect school cafeterias to local farmers and to helpschoolsandcampusesgrowfoodonsite,andmanyNewBrunswickschoolshavejoinedthenetworkandbegunto improvetheir fooddistribution. It isnoaccident thatseveralof theFarmtoCafeteriaNetwork’s initiativesdependon farmers formingcooperativeentities tomeetacafeteria’sneeds.47While most examples of successful local institutional procurement initiatives appear torevolve around food—see also Ryerson Eats, a Toronto university’s effort to source “aminimum25%of food from local, sustainable sources formeals on campus”—there is no

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reasonwhysimilarmodelscouldnotbedesignedtoincreaselocalprocurementfromotherindustries.Ifaninstitutionneedsit,alocally-ownedbusinesscanprobablysupplyit.48Infact,participantsintheBusiness-GovernmentgroupinMiramichithoughtthatoneofthemost significant impediments to local institutional procurement was a simple lack ofawareness about opportunities for locally-owned import-replacing businesses to supplylocal institutions. One government representative said he never hears sales pitches fromlocalbusinessesabouttheirproductsandservices.Ifhedid,hesaidhewouldprobablyhavemore local suppliers. He and others admitted that rules and regulations aroundprocurement might also impede local sourcing—but they maintained that with someeducationandawareness,locally-ownedbusinessescouldedgeoutthecompetition.“Ithinkyouwould find thatadollarcouldmakeaworldofadifferencesometimes, inawardingacontract,”saidonecivilservant, toexplainhoweasy itmightbeto tip thebalancetowardlocal.Still,everyoneagreedthatthereshouldbesome“integratedpolicy”thatwouldneedtoalignamongallthreelevelsofgovernment.Moreover, the focus groups saw the potential utility of adatabase or “virtual bulletinboard” that would list institutional needs and local products and services and help toconnect the two—something thatbusinessesand institutionscouldperuseand learn frombeforeinitiatinganyformalprocurementprocess.Paulagreed,seeing:

“an opportunity on the business side too for the chambers [and] thedowntownstodothesamethingthatgovernmentshouldbedoing.Ifyouwanttoworkfromalocallevelandsay‘here’swhatweneed,here’salistofalltheservices,[…]whatcanyouguysdotohelp?’andtheninternally,thebusinessessayingthesamethings.‘Youknowwhat?Weoutsourcealotofstufftoothatwecan’tfindlocally.Cananybodyaroundheresupplythisforus?’”

PaulinMiramichi

Paul’s point is that theremay be policy changes, but there are also cultural changes thatneedtotakeplaceinorderforbusinessesandinstitutionstosimplybeginprioritizinglocalprocurement. Moreover, focus group participants emphasized that there is a need foraccessible, up-to-date and accurate data about locally-owned businesses, products andservices, and, conversely, localneeds that are currentlymetby imports.The latter,whichPaulcalleda“grocerylist,”areimportreplacementopportunitiesfornewlocalbusinesses.LabourforceattractionandretentionViable locally-owned import-replacingbusinessesneedreliableemployees,andacommonstory in the Atlantic Provinces suggests that small employers are having a hard timeattractingworkers to fill their vacancies.There is little thatnew local businessesor ruralcommunitiescando,ontheirown,toimprovethedistributionofwealthinthecountry,thecostofliving,ortheminimumwage.However,thereareopportunitiestoalignsomethingsinasmallcommunity’sfavour.

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First,communitiescanlearnfromwhatfactorshaveattractednewresidentsorkeptlifelongresidentsfromleaving,andleveragethesefactorsincreativeways.Oneofthethingsheardrepeatedlyinthefocusgroupsisthatresidentsbelievedtheircommunitiesweresafeplacestoraiseafamily.Thissuggeststhattheremightbesomevalueinanadvertisingcampaignidealizing the rural Atlantic Canadian childhood, and also in helping employers craftrecruitmentstrategiesandofferbenefitstofamilies.AsSarahputit,youngadultswholeaveruralcommunities“justneedareasontocomeback,”“tobringtheirchildrenhomeandletthem grow up the way they grew up,” in a “perfectly safe” place where kids “can goanywhere.”Second,AtlanticCanadianlocally-ownedemployerscanlearnfromsocialresearchontheso-called“millennial”generationthatfindsthatyoungworkersvaluework-lifebalanceandjobsecurity.Combining long-termorpermanent contractswith flex-time and telework (i.e.,work-from-home) options—allowing young workers to make their own hours, withinreason,inajobthatoffersincomesecurity—coulddomoretoattractandretainaworkforcethanpayraises.IntheBurindiscussion,welearnedthatFiona’sdaughterturneddownajobwheretheemployerofferedtopayoffherstudentloaninfavourofajobthatallowedhertowork10dayson,tendaysoff—sothatshecouldtravel.Incontrasttoon-callandirregularschedules that demand flexibility of the employee, employers could incorporate flex-time,teleworkandcompressedscheduleoptionsthatappealtoyoungerworkersandhavebeenconsistentlyshowntoboostproductivity.49Third, Atlantic regional history has proven that investments in retraining work. If anindustry collapses, it is worth investing in displacedworkers to help them adapt to newopportunities. In Burin, several participants whose careers were upended by the codmoratorium benefitted from federal retraining incentives and found new, rewardingcareers.Thismaynotbesomethinganindividualcommunityorbusinesscando,butitisaclearroleforgovernmentthatshouldbeborneinmindwhenlobbyingforassistance.Finally,inseveralrecenthigh-profilestories,thebusinessownerturnedtosocialmediaasalastresortandendedupwithmoreapplicationsthantheycouldhandle.50This—andthefactthat social media is free and geographically almost limitless—suggests that rural locally-ownedbusinessesshouldadvertisejobsonsocialmediaandconsiderwhatkindsoflow-cost perks they could offer—or lifestyle benefits they could emphasize—in theiradvertisements.SuccessionPlanningThefocusgroupdiscussionsandexternalstatisticswarnofaloomingcrisisinindependentbusinessandproduction inAtlanticCanada.Theaverageageof fishermen in theregion is54.51In2011,60%ofAtlanticCanadianfarmswereownedbyfarmersaged55orolder.52In2014,most owners of small (59%) andmedium-sized (65%) businesses in Canadawereaged50orolder.53In2012,asurveybytheCanadianFederationof IndependentBusinessfoundthat thevastmajorityofentrepreneurswhoplannedtoretire in thenext fiveyearshadnosuccessionplanoronlyan"informal"one.Andmostimaginedtheywouldselltheir

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businesstosomeoneoutsidetheirfamily.54Thereneedstobesomeconcertedefforttohelpindependent businesses with succession planning. Like the training, acceleration andincubationinitiativesproposedabove,groupsofbusinesspeople,acingwiththesupportofgovernmentandcommunityeconomicdevelopers, arewell-poised to leadworkshopsandprograms to ensure that good businesseswith promising futures do not retirewith theirowners.HowtoimprovebusinessinfrastructureIn small communities, doing more with less is an ethos for good reason. An importreplacement-focuseddevelopmentstrategyshouldimaginenewusesforoldassets,suchas vacant buildings and lots. This approach presents some challenges, from communityreluctancetorepurposebuildingswithstoriedpasts,toregulatoryrestrictionsonbuildinguses.OnBurin,asweconductedthe“inventory”exerciseandlistedvacantorunderutilizedbuildings,weheardthatpeoplehave“attachments”tooldbuildingsandthememoriestheyhave of them—if a person was married in a church, they might resist that church’stransformation into a concert hall. But if the idea is pitched right—as a way to save thebuildingforthenextgeneration—itcouldsucceed.OneideathatseemedtohaveenormouspotentialwastheHubSchoolmodel,introducedinNova Scotia in2014.TheMinister ofEducation invited small communitieswith shrinkingstudentpopulations—whoselocalschoolswerethusatriskofclosure—tosubmitproposalsto use the buildings for additional purposes outside the delivery of the public schoolprogram in order to keep the schools open. None of the proposals was accepted, andcommunity advocates later criticized the process for being unreasonably restrictive andadopting evaluation criteria that no community could meet. The failure of this program,however,doesnotprecludethepossibilitythatsomethinginthesamespiritcouldwork—aprogramtohelpcommunitiesmakebetteruseoftheirschools,andtoputtheschoolsatthecentre of community economic development. Groups across the region mentioned thepotentialtouseschoolsforadulteducation(nightclasses),communityaccesstocommercialkitchens, business incubators, intramural sports and farmers’ markets. The same ideas,however,couldberealizedinunder-programmedchurchesoremptywarehouses,factories,banks,andpostoffices.It is also possible to think about existing craft producers, primary producers, or smallmanufacturers as underutilized assets. The Economuseemodel that works so well at theLivyer’s Lot Historic Site could be applied to countless enterprises—any operation thatinvolvessometypeoftraditionalskillcanbetransformedintoahands-onexperiencefor tourists and locals alike. Theoretically, fishermen and fish processors could takepeopleoutonfishingboatstoseehowfisharecaughtandfilleted,thencomebackandeatthecatchintheshackorinarestaurant.Independentfarmerscanoffer“farmstays,”asdoesTaprootFarmsinPortWilliams,NS.Brewersandwineriescan(andmanydo)openuptheirfacilitiestoobservers.Anycrafterorskilledartisancanletcustomers“in”ontheproductionprocessthroughworkshopsanddemonstrations. In these instances,aproductivebusinessbecomesadestination.Enoughoftheseworkinginconcertcancoalesceintoadistrict,and

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helptransformruralcommunitiesintothetouristdestinationstheirresidentsbelievetheyshouldbe.Theavailabilityofreliablehigh-speedinternetcameuprepeatedlyinthefocusgroupsasamajorbarrier tonewbusinesses and adisincentive topotential newcomers.Broadbandaccessisessentialforruralcommunitiesandsmalltownstosupportmostenterprisesandworkers. It is also essential for existing locally-owned businesses to be able to takeadvantage of online sales, social media advertising, and many of the other ideas andinitiativesproposed in this reportand inShuman’s report.While thismightnot seem likesomethingasmallcommunitycoulddo, for itself, it is.InLawrencetown,avillage inNovaScotia’s Annapolis Valley, a cooperative actually operates a wireless broadband internetservice. Member-owners have easily connected into the system, and are proud that “theprofitsstayinthecommunity.”55TheRoleofGovernmentThroughoutthefocusgroupstherewasadiscernibleambivalenceaboutonemajorquestionthathasnotyetbeenaddressedhead-on:whatshouldbetheroleofgovernmentinanIR-focusedeconomicdevelopmentplan—oranyeconomicdevelopment,forthatmatter?Thisquestion has been at the forefront and in the background of public discourse in AtlanticCanadafordecades,andithasalwayselicitedambiguousresponses.Ontheonehand,manypeoplesaythatgovernmentshould“getoutofthewayofbusiness.”Governmentisviewedas ameddling regulator that stifles creativity and entrepreneurial spirit orwastes publicmoneyonbadbusinessinvestments.Peopleinthefocusgroupsbelievedthat“themarket”wasbetter at determiningmany things, such aswhichbusinesses succeed andwhich fail,howmuchcertainproductsandservicesshouldcost,andwhatkindsoftrainingshouldbeessentialforwhichworkers.AswasdiscussedindetailintheBarrierssectionofthisreport,participantswerefrustratedbyregulations thatseemedtoemanate frombureaucrats—oftenurbanbureaucrats—withnosenseoflocalcontingenciesandcontexts.Rulesdictatinghowschoolscanbeusedandbywhom, who can catch and sell fish to whom and for what purposes, what licenses andpermitsarenecessaryformakingandsellingx,y,andz—manyoftheserulesseemedtobeoutoftouchwithrealisticrisks,andwiththespecificneedsoflocalbusinesses,consumersand communities. Participants understood the need for minimum health and safetystandards,buttheyperceivedasenseless ‘creep’ofregulationsintoindustries, institutionsand workplaces that they believed could do a better job, for the most part, regulatingthemselvesinlinewithlocalneedsandinterests.On the other hand, each of the communities saw government as a reliable source ofinvestment for projects and programs that help support community life and economicdevelopmentbutareunlikelytoturnaprofitontheirown—infrastructureandtraining,forexample.Theyknewthatcorporations,drivenastheywerebytheprofitmotive,wouldbeunlikely to invest in the same way. They searched for a body that could defend thecommunity’s interests and protect its people and natural resources against greed, andgovernmentwastheclosestthing.Theyalsoknewthatnoonebutgovernmentcouldchange

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or undo the peskiest regulations they believed were getting in the way of locally-ownedimportreplacingbusinessdevelopment.Ouranalysissuggeststhattheseseeminglyreactionstogovernment,whilecontradictoryonthe surface, are actually compatible. They point toward a specific role for government ineconomicdevelopment,includingeffortstoreplaceimportswithlocally-producedproductsandservices:residentsinallfoursitesweremostappreciativeofgovernmentinterventionthat worked to mitigate the excesses of capitalism and the profit motive without undulycurtailingindividualandcommunityfreedoms.Governmentwasidealizedasaprotectiveshield against pure “market” forces, but it also needed to be kept in check bysomething else. Just as corporations—the “market”—could get out of control and beginshaping community life with impunity, so could government—“the state.” The people inShelburne,Miramichi, SourisandBurinwanted tobeable topushbackonbothstateandmarketandmakeadent.The ideal scenario their anecdotes and concerns seem to suggest is what the sociologistMargaretSomerscalls“abalanceofpoweramongcivilsociety,market,andstate-mediatedthroughthesiteofthepublicsphere.”Importantly,theresidents inthiscaseconstitutethe“civilsociety”partofthebalance,butthestateseemstobeencroachingontheirrole.Theyalsostruggletofindaviable“publicsphere”inwhichtoinfluencethedirectionandactivitiesof themarkets and states that affect them. Over the years, it seemed to participants thatstateandmarkethadbeguntointrudeoncivilsocietyandhogthepublicsphere,squeezingout thepossibility forrealpeople—the“littleguy”—tomakeadifference.Thus theroleofgovernment is, in a certain sense, to “get out of theway”—but it is about restoring civilsocietyasaseparatespace,notallowingcorporationstorunamok.

OntheBurinPeninsula,Edrecalled:

I was only, I think 18, 19 years oldwhen I first got involvedwith therural development movement, and in the earliest stages, the ruraldevelopment movement, it was a protest movement againstgovernment,andwhatkilledtheruraldevelopmentmovementiswhengovernmentdecidedtofundit,‘causewhengovernmentdecidedtofundit, it changed it from a group thatwas opposed to government policybasically and they infiltrated it, gave it the funding, and then theystarted and the rural development association, when they lost theirfundingprobablydeservedly so,becauseby that timegovernmenthadmouldeditintoadelivererofmake-workprojects.

EdinBurin

Sincethe1970s,participantswatchedgovernmentsgetincreasinglyinvolvedintheday-to-day work of developing and supporting businesses, a lot of which began to look likeconsultations,studiesandexercisesthatwentnowhere.Rememberingaseriesof“visioning”exercises for tourism and economic development in Newfoundland, Fiona noted thatironicallytheycouldnotsee,inthe1980s,theadventofonlinevacationplanning.Thewhole

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thingwas awaste ofmoney and time, in her opinion. “Theywere planning beyond theirvision.It’slikedrivinginthefog.”In the worst cases, it seemed to participants that government even acted “againstdevelopment,” often unintentionally.As Ed saw it, “there’s a lot of turf protection, say…peoplewiththedepartmentoftourism,right,theyhaveaplan,andtheirjob[is]tokeepthatplanbecausethat’swhattheirjobdependson.Soifyougetsa[grass]rootsmovementtryingtochange thataround, they feel threatenedand then they’llwithhold funding.”Thebetteroption that all of these perceptions suggestwould be for government (the state) to leavemuch of the community-level planning and decision-making to actual civil society—grassroots groups, community councils, volunteer organizations, non-profits andcommunitynetworks—andonlystepintoofferresources.Government’srolevis-à-viscivicorganizations and ordinary residents, ideally, is to respond to needs and concerns bymarshalling resources and breaking down ormodifying unreasonablebarriers, guided byhealthy,ongoing,publicdebate.56Shuman’s report, available at http://centreforlocalprosperity.ca/studies/, offers severalspecific actions a government could take, starting today, that would fit the narrowermandatejustdescribed:toprotectandempowercitizensagainsttheexcessesofcapitalismand profit-seeking, without curtailing individual freedoms or unduly encroaching on civilsociety and the public sphere. He recommends defunding corporate attraction andreinvestinginnewlocalbusinesses,specificmeasurestolocalizeinstitutionalprocurement,andasubstantialoverhaulofsecuritieslawstofacilitatelocalinvestment.Therearealsobroadershiftsingovernmentobjectives,whichcouldplayoutoveralongerterm, and which would help sustain small communities and their locally-owned importreplacing enterprises. One major issue that will demand a response in the long run, forexample,istheautomationofindustriesandtheresultingjoblossanddisplacement.Thereisagrowinggapbetween“non-cognitive,routine”jobsthatpayverypoorlyandofferlittlesecurityandthe“non-routine,cognitive” jobs thataresecureandpayhandsomely.This isnotjustaruralissue,butitimpactsruralcommunitiesdisproportionatelyanditseffectswillbemuchdifferent compared to its effects inurban settings.Thus, a coordinated responsefromgovernment,civilsocietyandbusinessesislikelytheonlywayforward.CONCLUSIONThefocusgroupresearchconductedforthisprojectillustratesboththeenormouspotentialfor import replacement and the myriad social and cultural considerations that must beweighedaspartofanyinitiativegearedtowardreducingimportsandmeetingmoreoflocaldemandwithlocalproduction.One promising finding is that focus group participants across the four research sites feltethically responsible, as consumers, for the economic health of their communities. Theywantedtosupport localproducersandserviceproviderswherevertheycan.Buttheyalsofelt hemmed in, as consumers andproducers, by seemingly senseless regulatorynets andtheir own unmet desires for cost-savings and convenience. They understood the folly of

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economic development strategies that tied community fates to single, distant exportmarkets,theyrecognizedtheneedforgoodjobcreation,andtheyallarticulated,indifferentways,thecriticalneedforright-sizedeconomicdevelopmentforruralplaces.Theywerelessconcerned about environmental sustainability than perhaps is warranted at this time inhistory, but many were also aware of the environmental benefits of keeping certainactivities‘closertohome.’Theyalsovoicedcommonperceptions—someofwhichareatleastpartlymisconceptions—about the barriers that obstruct the development of locally-owned businesses and ruralentrepreneurial activity. Regardless of whether or not they are entirely accurate, theirunderstandingsofcompetitionandeconomiesofscalecontaingrainsoftruth,andthustheysupportthecaseforeconomicdevelopmentstrategiesthattakespecificruralcontextsintoaccount,andprioritizelocaleconomiccontroloverthelucrativepotentialofdistantboomingmarkets and corporate attraction. But they also speak to a need for more carefulcommunication and community engagement around any regional, provincial or federaleconomic strategy. It takes time and dialogue to sort through perceptions and realitiesamong ordinary people, and meaningful opportunities to actually shape new policies toorganizelocaleverydaysocialandeconomiclife.Thisstudywasinitiallymotivatedbythepointthateconomiesarenotjustnumericthings—notjustrelationsofworking,earning,buyingandselling—butalsosocialrelationshipswithhistories, emotional connotations and cultural meanings. This point is illustrated by thecomplexity of interpretations and ethics that people attach to their ostensibly mundanehabitsofbuyinggroceries,payingforservices,helpingtheirchildrendecidewhattostudyand performing their own work as homemakers, policy makers, businesspeople, serviceproviders,andcommunityleaders.Allofthesefindingstellusthatanypolicythatfailstotaketheeconomyasasocialthingwillfailtodowhatitsetsoutto.Fortunately, the practical strategies that could help small rural communities turn theireconomies toward import replacement are also, bynature, the kind that involveordinaryrural people, including their interpretations and social relationships, from the outset.Whether it is by inventorying community assets, promoting co-operative enterprises,engagingindirectmarketingstrategies,startingacommunity-supportedbroadbandservice,launching a local consumer discount and reward system, targeting policy change ininstitutionalprocurement,oroneof theotherstrategiesdescribed in this reportor in thelargerstudyofImportReplacementofwhichit isapart,ruraleconomicdevelopmentthatbeginswith rural peoplewill automatically bemore reflective of rural contexts than thatwhich originates in business schools and is operationalized by urban policymakers. Thefutureforanygivenruralcommunitywillbeafutureenvisionedinandbythepeopleinthatcommunity,andimportreplacementoffersonepracticalway,withcareandconsideration,tobringsuchafutureintobeing.

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APPENDICESAppendix1:ResearchInstrumentsNewspaperAdforCommunityFocusGroupsSeekingparticipantsforfocusgroupdiscussionaboutlocaleconomy(jobs,shopping,productsand services). [Date and time]. Open to local residents aged 18 or over. Compensation: $50.Refreshmentsprovided.ResearchprojectbyCentreforLocalProsperityandDalhousieUniversity.Call[xxx-xxx-xxxx]oremail[email@xxxx]formoreinformationandtoapply.ConsentFormforCommunityFocusGroups

CONSENTFORM

ProjectTitle:RethinkingCommunityDevelopment:TheEconomicValueofImportReplacementinAtlanticCanada Leadresearcher:Dr.KarenFosterCanadaResearchChairinSustainableRuralFuturesforAtlanticCanadaAssistantProfessor,SociologyDepartmentofSociologyandSocialAnthropologyDalhousieUniversityHalifax,NS,Canada(902)494-6751Karen.Foster@dal.caCo-investigators:GregoryHeming,President,CLP(902)955-1267,gregoryaheming@gmail.comRobertCervelli,VicePresident,CLP(902)222-4391,robert.cervelli@gmail.comFundingprovidedby:TheCentreforLocalProsperityandAtlanticCanadaOpportunitiesAgency(ACOA)Introduction:TheCentreforLocalProsperity(CLP)andDalhousieresearcherDr.KarenFosterareconductingaseriesoffocusgroupsinruralAtlanticCanadiancommunities.Thefocusgroupsbringtogetherlocalresidentstodiscussruraleconomies,ruralbuyinghabits,dilemmasfacingruralconsumers,andtheeconomicchallengesandopportunitiesinruralcommunities.

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Thefocusgroupsareonecomponentofalargerstudythatwillassessthepotentialfor“importreplacement”—thesubstitutionoflocallyproducedproductsandservicesforthosethatarecurrentlyimported—intheregion.Thistopicisexplainedfurtherbelowandwillbediscussedingreaterdetail,withexamples,inthefocusgroup.Takingpartintheresearchisuptoyou; itisentirelyyourchoice.Evenifyoudotakepart,youmayleavethegroupatanytimeforanyreason.Theinformationbelowtellsyouaboutwhatisinvolvedintheresearch,whatyouwillbeaskedtodoandaboutanybenefit,risk,inconvenienceordiscomfortthatyoumightexperience.Pleaseaskasmanyquestionsasyoulike.Ifyouhaveanyquestionslater,pleasecontacttheleadresearcher.Purposeandoutlineoftheresearchstudy:Thisresearchasks:whatarethemajorgapsinlocalproductionthatcouldbefilledbylocalinvestorsandentrepreneurs,andwhatarethechallengesthatlocalinvestorsandentrepreneurs(will)faceinfillingthesegaps?Weallknowthatexportsareimportanttotheeconomichealthoflocalcommunities,andimportingsomethingsisinevitableanddesirable.Butimportreplacementmightbejustasimportant,especiallyinsmallercommunities.Theideabehindimportreplacementisthateverytimeacommunityimportsagoodorservicethatitmighthavecost-effectivelyproducedforitself,it“leaks”dollarsandlosesthespinoffbenefits,suchasjobsandtaxrevenue.Unnecessaryimports–offood,forexample–subjectcommunitiestorisksofpricehikesanddisruptionsfarbeyondlocalcontrol.Moreover,noteveryeconomyisfortunateenoughtohaveexportsthatcanbeproduced,manufacturedand/ortransportedeasily.ThisisparticularlytrueformanysmallerruraleconomiesinAtlanticCanada.Thisstudyseesimportreplacementasthenecessary‘othersideofthecoin’toexportdevelopment,andaskshowitmightbeimprovedintheregion.Whocantakepartintheresearchstudy?Youmayparticipateinthisfocusgroupifyouarearesidentofthelocalcommunityandareatleast18yearsold.Wearelookingforarangeofperspectives,backgroundsandexperiences.Youdonotneedtohaveanyexpertiseinimportreplacementtoparticipate.Howmanypeoplearetakingpartinthestudy?Therewillbefourfocusgroupsessions(includingthisone)heldacrosstheAtlanticregion,with6-10participantsineach.

Whatyouwillbeaskedtodo:

Inthisfocusgroup,youwillbeaskedtoreflectonyourlocaleconomy,howyoumakedecisionsaboutwhichproductstobuyandwheretoshop,andhowyourjob(s)andincomeareaffectedbyimportsandexports.Wewillencourageyoutorespondtoyourfellowparticipants,pose

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questions,andshareperspectivesandexperiences.RobertCervelliand/orGregoryHemingwillfacilitatethediscussion,askingpromptingquestionsandguidingthediscussionasnecessary.Possiblebenefits,risksanddiscomfortsThereareminimalanticipatedrisksassociatedwithparticipatinginthisresearch.Conceivably,youcouldfindituncomfortabletodiscusscontentiouseconomicdevelopmentissueswithotherpeople.Theriskofthishappeningisnomorelikelythantherisksyouwouldencounterineverydaylife.Nevertheless,tomitigatethepossibilityofdiscomfort,thefocusgroupdiscussioniscompletelyvoluntaryandyoucandeclinetoansweranyquestionorstopspeakingatanytimewithoutgivingareason.Becauseyourparticipationisconfidential,allanswersandcontributionsarevoluntary,andyourcontributionsarekeptanonymousinthefinalreport,thereislittletonoprofessionalriskofparticipatinginthefocusgroup.However,differencesofopiniononthestudytopicsmightimpactyourprofessionalrelationshipswithothersinthegroup.Incontrast,yourparticipationmayhavesomebenefitsforyou.ThediscussionisanopportunitytoreflectonandmakesenseoftheeconomicchallengesandopportunitiesfacingruralAtlanticCanada,andtocontributetogreaterknowledgeaboutthesame.ThisknowledgewillbeusedtospurpublicdiscussionsabouteconomicpolicyandAtlanticculture(s).Whenthefinalresultsarepublished,youwillbeabletoseehowyourperspectives,desiresandchallengescomparetoothersintheregion.Youwillalsobecompensated$50foryourparticipationattheendofthefocusgroup,beforeyouleave.Howyourinformationwillbeprotected:Informationthatyouprovidetouswillbekeptprivate.Inmostcases,onlytheresearchteam,includingDr.Foster,aresearchassistant,andthestaffoftheCentreforLocalProsperitywillhaveaccesstothedatafromfocusgroups.Insomecases,otherauthorizedofficialsattheUniversitysuchastheResearchEthicsBoardortheScholarlyIntegrityOfficermayhaveaccessaswell.Wewilldescribeandshareourfindingsinpubliclyavailablereportsandacademicarticles,whichwewillpublicizeonsocialandtraditionalmedia. Wewillbeverycarefultoonlytalkaboutgroupresultssothatnoonewillbeidentified.Wewillnever,inanypublishedmaterial,connectanysingleresponsetoanyonepersonortitle.Thus,individualresponseswillalwaysbedetachedfromanyspecificidentifyinginformation(e.g.,“onelong-timeresidentof[communityX]said…”or“oneelectedofficialasked…”).Itisconceivablethatsomeonewhoknowsyouparticipatedinthefocusgroupcouldpickoutyourresponses,butwewillmaketheeffortsdescribedabovetominimizethisrisk.Thismeansthatyouwillnotbeidentifiedinourreportsbyname,address,employer,ortitle,unlessyouspecificallyrequestthatwedo.Youwillbegivenapseudonymandyouroccupationwillbechangedtosomethingcomparable.Thepeoplewhoworkwithyourinformationhaveanobligationtokeepallresearchinformationprivate.Wewilluseyourpseudonym(notyourname)

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inourwrittenandcomputerizedrecordssothattheinformationwehaveaboutyoucontainsnonames.Allyouridentifyinginformationwillbekeptinaseparatefile,inasecureplace. Theseelectronicrecordswillbekeptsecureinapassword-protected,encryptedfileonaDalhousieUniversitysecureserver,anddestroyedinSeptember2016.Thediscussionrecordedtodaywillbetranscribed,andaudioandtextfileskeptsecureinapassword-protected,encryptedfileonaDalhousieUniversitysecureserver,anddestroyedinSeptember2017.Weaskthatasaparticipant,youkeepanypersonalinformationsharedbyotherparticipantsconfidential,andrefrainfromtellingotherswhoparticipatedinthefocusgroupwithyou.Ifyoudecidetostopparticipating:Youarefreetoleavethestudyatanytime.However,becausethediscussionisanonymized,anyofthecontributionsthatyouhavemadeuptothatpointcannotbedeletedunlessyouarewillingand able to describe, specifically, what information you would like us to remove from thetranscribeddiscussion.Howtoobtainresults:Wewillprovideyouwithashortdescription,viaemail,ofgroupresultswhenthestudyisfinished.Noindividualresultswillbeprovided.WewillalsomakealocalpresentationofthefindingsintheSpringof2016,andwillnotifyyouofthedate,timeandlocationviaemail.QuestionsWearehappytotalkwithyouaboutanyquestionsorconcernsyoumayhaveaboutyourparticipationinthisresearchstudy.PleasecontactDr.Foster(at902494-6751,karen.foster@dal.ca-emailismostreliable)atanytimewithquestions,comments,orconcernsabouttheresearchstudy(ifyouarecallinglongdistance,pleasecallcollect).Ifyouhaveanyethicalconcernsaboutyourparticipationinthisresearch,youmayalsocontacttheDirector,ResearchEthics,DalhousieUniversityat(902)494-1462,oremail:ethics@dal.ca

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AgreementtoParticipateProjectTitle:RethinkingCommunityDevelopment:TheEconomicValueofImportReplacementinAtlanticCanadaLeadResearcher:Dr.KarenFosterCanadaResearchChairinSustainableRuralFuturesforAtlanticCanadaAssistantProfessor,SociologyDepartmentofSociologyandSocialAnthropologyDalhousieUniversityHalifax,NS,Canada(902)494-6751Karen.Foster@dal.caInordertoparticipateinthefocusgroup,pleasereadandprovidearesponsetothefollowingstatement:Ihavereadtheexplanationaboutthisstudy.Ihavebeengiventheopportunitytodiscussitandmyquestionshavebeenanswered.Iagreetotakepartinthisstudy.IrealizethatmyparticipationisvoluntaryandthatIamfreetoleavethestudyatanytime.Yes,Iwillparticipateinthisfocusgroup:___No,Idonotwishtoparticipateinthisfocusgroup:___Signature:_____________________________________Printedname:__________________________________Date:____________________

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ConsentformforBusiness-GovernmentFocusGroups

CONSENTFORMProject Title: Rethinking Community Development: The Economic Value of ImportReplacementinAtlanticCanada Leadresearcher:Dr.KarenFosterCanadaResearchChairinSustainableRuralFuturesforAtlanticCanadaAssistantProfessor,SociologyDepartmentofSociologyandSocialAnthropologyDalhousieUniversityHalifax,NS,Canada(902)494-6751Karen.Foster@dal.caCo-investigators:GregoryHeming,President,CLP(902)955-1267,gregoryaheming@gmail.comRobertCervelli,VicePresident,CLP(902)222-4391,robert.cervelli@gmail.comFunding provided by: Centre for Local Prosperity and Atlantic Canada Opportunities Agency(ACOA)Introduction:TheCentreforLocalProsperity(CLP)andDalhousieresearcherDr.KarenFosterareconductingaseries of focus groups in rural Atlantic Canadian communities. The focus groups bring togetherlocal businesspeople, government officials and policy-makers to discuss rural economicdevelopmentandimportsandexportsinparticular.The focusgroupsareonecomponentof a larger study thatwill assess thepotential for “importreplacement”—the substitution of locally produced products and services for those that arecurrently imported, whether for immediate consumption or as intermediary inputs in otherproducts—intheregion.Takingpart intheresearchisuptoyou; it isentirelyyourchoice. Evenifyoudotakepart,youmay leave thegroupatany time foranyreason. The informationbelowtellsyouaboutwhat isinvolvedintheresearch,whatyouwillbeaskedtodoandaboutanybenefit,risk,inconvenienceordiscomfortthatyoumightexperience.Pleaseaskasmanyquestionsasyoulike. Ifyouhaveanyquestionslater,pleasecontacttheleadresearcher.

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Purposeandoutlineoftheresearchstudy:This research asks: what are the major gaps in local production that could be filled by localinvestorsandentrepreneurs,andwhatarethechallengesthat local investorsandentrepreneurs(will) face in filling these gaps? Granted, exports are important to the economic health of localcommunities, and importing some goods is inevitable and indeed desirable. But importreplacement might be just as important, especially in smaller communities. The idea behindimportreplacementisthateverytimeacommunityimportsagoodorservicethatitmighthavecost-effectivelyproducedforitself, it“leaks”dollarsandlosesthecriticallyimportantmultipliersassociatedwiththem.Unnecessaryimports–offood,forexample–subjectcommunitiestorisksofprice hikes and disruptions far beyond local control.Moreover, not every economy is fortunateenough to have exports that canbeproduced,manufactured and/or transported easily. This isparticularly true for many smaller rural economies in Atlantic Canada. This study sees importreplacementasthenecessary‘othersideofthecoin’toexportdevelopment,andaskshowitmightbeimprovedintheregion.Whocantakepartintheresearchstudy?Youmayparticipate in this focusgroup if youare a government representative (e.g., an electedofficial or a civil servant) and/or a businessperson (e.g., small business owner, entrepreneur,investor, developer).We are looking for a range of perspectives, backgrounds and experiences.Youdonotneedtohaveanyexpertiseinimportreplacementspecifically.Howmanypeoplearetakingpartinthestudy?Therewillbefourfocusgroupsessions(includingthisone)heldacrosstheAtlanticregion,with6-10participantsineach.Whatyouwillbeaskedtodo:Inthisfocusgroup,youwillbeaskedtoreflectonyourlocaleconomy,theopportunitiesforimportreplacement, the impactofexports,andthebarriersandchallengestoboosting localproductionandconsumption.Wewillencourageyoutorespondtoyourfellowparticipants,posequestions,andshareperspectivesandexperiences.RobertCervelliand/orGregoryHemingwillfacilitatethediscussion,askingpromptingquestionsandguidingthediscussionasnecessary.Possiblebenefits,risksanddiscomfortsThere areminimal anticipated risks associatedwith participating in this research. Conceivably,youcould find ituncomfortable todiscusscontentiouseconomicdevelopment issueswithotherpeople. The risk of this happening is no more likely than the risks you would encounter ineveryday life, doing your job. Nevertheless, to mitigate the possibility of discomfort, the focusgroup discussion is completely voluntary and you can decline to answer any question or stopspeakingatanytimewithoutgivingareason.Becauseyourparticipationisconfidential,allanswersandcontributionsarevoluntary,andyourcontributions are kept anonymous in the final report, there is little to no professional risk of

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participatinginthefocusgroup.However,differencesofopiniononthestudytopicsmightimpactyourprofessionalrelationshipswithothersinthegroup.Incontrast,yourparticipationmayhavesomebenefitsforyou.Thediscussionisanopportunitytoreflect on and make sense of the economic challenges an opportunities facing rural AtlanticCanada,andtocontribute togreaterknowledgeabout thesame.ThisknowledgewillbeusedtospurpublicdiscussionsabouteconomicpolicyandAtlanticculture(s),andtonudgetheeconomicdevelopmentdiscourseintheregioninanewdirection.Whenthefinalresultsarepublished,youwillbeabletoseehowyourperspectives,desiresandchallengescomparetoothersintheregion.Howyourinformationwillbeprotected:Information that you provide to uswill be kept private. Inmost cases, only the research team,includingDr.Foster,aresearchassistant,andthestaffoftheCentreforLocalProsperitywillhaveaccess to thedata from focus groups. In some cases, other authorizedofficials at theUniversitysuchastheResearchEthicsBoardortheScholarlyIntegrityOfficermayhaveaccessaswell. Wewilldescribeandshareourfindingsinpubliclyavailablereportsandacademicarticles,whichwewill publicize on social and traditionalmedia.Wewill be very careful to only talk about groupresults so that no onewill be identified.Wewill never, in any publishedmaterial, connect anysingleresponsetoanyonepersonortitle.Thus,individualresponseswillalwaysbedetachedfromanyspecificidentifyinginformation(e.g.,“onelong-timeresidentof[communityX]said…”or“oneelectedofficialasked…”).Itisconceivablethatsomeonewhoknowsyouparticipatedinthefocusgroupcouldpickoutyour responses,butwewillmake theeffortsdescribedabove tominimizethisrisk.Thismeansthatyouwillnotbeidentifiedinourreportsbyname,address,employer,ortitle,unlessyou specifically request thatwedo. Youwill be given a pseudonym and your occupationwill bechangedtosomethingcomparable.Thepeoplewhoworkwithyourinformationhaveanobligationto keep all research information private.Wewill use your pseudonym (not your name) in ourwrittenandcomputerizedrecordssothattheinformationwehaveaboutyoucontainsnonames.Allyouridentifyinginformationwillbekeptinaseparatefile,inasecureplace.Theseelectronicrecords will be kept secure in a password-protected, encrypted file on a Dalhousie Universitysecure server, and destroyed in September 2016. The discussion recorded today will betranscribed, and audio and text files kept secure in a password-protected, encrypted file on aDalhousieUniversitysecureserver,anddestroyedinSeptember2017.We ask that as a participant, you keep any personal information shared by other participantsconfidential,andrefrainfromtellingotherswhoparticipatedinthefocusgroupwithyou.Ifyoudecidetostopparticipating:Youarefreetoleavethestudyatanytime.However,becausethediscussionisanonymized,anyofthecontributionsthatyouhavemadeuptothatpointcannotbedeletedunlessyouarewillingandabletodescribe,specifically,whatinformationyouwouldlikeustoremovefromthetranscribeddiscussion.Howtoobtainresults:

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Wewillprovideyouwithashortdescription,viaemail,ofgroupresultswhenthestudyisfinished.Noindividualresultswillbeprovided.WewillalsomakealocalpresentationofthefindingsintheSpringof2016,andwillnotifyyouofthedate,timeandlocationviaemail.QuestionsWe are happy to talk with you about any questions or concerns you may have about yourparticipation in this research study. Please contact Dr. Foster (at 902 494-6751,karen.foster@dal.ca - email ismost reliable) at any timewithquestions, comments,or concernsabouttheresearchstudy(ifyouarecallinglongdistance,pleasecallcollect).Ifyouhaveanyethicalconcernsaboutyourparticipationinthisresearch,youmayalsocontacttheDirector,ResearchEthics,DalhousieUniversityat(902)494-1462,oremail:ethics@dal.ca

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AgreementtoParticipateProject Title: Rethinking Community Development: The Economic Value of ImportReplacementinAtlanticCanadaLeadResearcher:Dr.KarenFosterCanadaResearchChairinSustainableRuralFuturesforAtlanticCanadaAssistantProfessor,SociologyDepartmentofSociologyandSocialAnthropologyDalhousieUniversityHalifax,NS,Canada(902)494-6751Karen.Foster@dal.caIn order to participate in the focus group, please read and provide a response to thefollowingstatement:Ihavereadtheexplanationaboutthisstudy.Ihavebeengiventheopportunitytodiscussitandmyquestionshavebeenanswered.Iagreetotakepartinthisstudy.IrealizethatmyparticipationisvoluntaryandthatIamfreetoleavethestudyatanytime.Yes,Iwillparticipateinthisfocusgroup:___No,Idonotwishtoparticipateinthisfocusgroup:___Signature:_____________________________________Printedname:__________________________________Date:____________________

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ConsumptionSurveyforFocusGroupParticipantsThissurveywasdesignedtocollectdataabouttheplacesthatpeopleinyourcommunitygotoaccesstheirhouseholdrelatedgoods.Youarenotaskedtoidentifyyourselfbyname,soyouwillremainanonymous.Completionofthissurveyiscompletelyvoluntary.Youmayrefusetoansweranyorallquestionswithoutpenaltyorprejudice.Age:Areaofresidence(town,village):Howmanypeopleusuallyresideinyourhousehold?Whoaretheprimaryemployersofmembersofyourhousehold?(companyornameand/orindustry)Approximatelyhowfardomembersofyourhouseholdtraveltogettowork?Doyouhelpanyotherfamilymembers,friends,orcommunitymemberswiththeirshopping?(Ifso,who/why?)Whatarethedifferentsourcesyougetyourfoodfromandapproximatelyhowfararetheyfromyourhouse?(Shop,market,farmshare,etc)Wheredoyougetotherthingsyouneed,likehouseholdnecessities,andapproximatelywhatdistancearethesesourcesawayfromyourhomeinkmortraveltime?Building/repairsupplies:Clothing:Recreationalsupplies:Other(fillinasmanyasyouwouldlikesuchasmedicalsupplies,buildingsupplies,furnitureetc):Describeanygoodsandservicesthatyouhaveadifficulttimeaccessinginyourcommunity—i.e.,goodsthatyouoftenhavetotraveloutsideofyourcommunitytoacquire.Foreach,pleasetellushowoftenyouneedtoleaveyourcommunitytogetthem.Areyouawareofanybusinesses,groups,ororganizationsthatareworkingtocreateeasieraccessforgoodsorservicestoyourcommunity?FocusGroupQuestions(Moderator’sGuide)

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FocusGroupQuestionsBusinessandGovernmentFocusGroupHOURONEIntroductions(Don’taskallquestions—justgiveparticipants1minuteeachtointroducethemselvesusingtheseas“prompts”ifanyoneisstuck)

- Howlonghaveyoubeeninyourposition?- Howlonghaveyoulivedinthecommunity?- Haveyoueverlivedawayfromthiscommunity?- Familyhistoryhere?- Whatdoyoulikeaboutlivinghere?- Whatdon’tyoulikeaboutlivinghere?

DiscussionQuestions(Boldarepriorities)

1. Howwouldyoudescribethelocaleconomyhere?[probefor:imports,exports,keyindustries,cycles,(un)employment]

2. Youhavetodealwithmattersofeconomicdevelopmentinyourday-to-dayjobs.Whatwouldyousayarethemostpressingconcernsinthatrealm?

3. Howwouldyoudescribethecurrentsetofstrategiesavailabletodealwitheconomicdevelopmentinyourcommunity?Whatworks,whatdoesn’t?

4. [“ThoughtExperiment”question—useasaseguearoundhourtwo]Whatdoyouthinkwouldhappenif,tomorrow,importingandexportinggoodsoutsideCanadawassuddenlyimpossible?Whataboutoutsidetheprovince?Outsidetheimmediatecommunityitself?Couldpeopleandbusinessesinyourcommunitycontinuetosurviveiftheycouldnotdependonimports?[probefor:self-reliance,dependenceonimports,whatwouldbeokay,whatwouldsuffer]HOURTWO

5. Askbybeginningofhourtwo:Ourstudyisaboutthepotentialforimportreplacementas‘theothersideofthecoin’toexportdevelopmentinruralAtlanticCanada.[Readshortexplanation—summaryofstudyasfoundinethicsapplicationform].Whatcomestomindwhenyouhearthis?

6. Doyouthinkit’swithinyourpowerasa[businesspersonorgovernmentrepresentative]todoanythingtoencourageimportreplacement?Whyorwhynot?

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7. Canyouthinkofanyexamplesofproductsorservicesthatcouldbecost-effectivelyproducedhereinsteadofimported?Youcanthinkofeitherconsumergoods,readytopurchase,orintermediateinputsforotherproducts.

8. Doyouthinkordinarypeoplewouldwelcomemorelocally-producedproductsandservices?Howcouldtheybeencouragedtochooselocaloverimportedgoods?

9. Doyouthinkbusinesseswouldwelcomemorelocally-producedproductsandservices?Howcouldtheybeencouragedtochooselocalinputsoverimportedones?

10. Anythingwe’vemissed?CommunityFocusGroupHOURONE:Introductions(Don’taskallquestions—justgiveparticipants1minuteeachtointroducethemselvesusingtheseas“prompts”ifanyoneisstuck)

- Howlonghaveyoulivedinthecommunity?- Familyhistoryhere?- Whatdoyoudoforaliving?- Haveyoueverlivedawayfromthiscommunity?- Whatdoyoulikeaboutlivinghere?- Whatdon’tyoulikeaboutlivinghere?

1. Howwouldyoudescribethelocaleconomyhere?

[probefor:imports,exports,keyindustries,cycles,(un)employment]

2. Useasaprobeifnecessary:Whenyoulistentothenewsorhearpeopletalkingoutinyourcommunity,whatdoyouthinkarethemostpressingeconomicconcernshere?Whataboutthe‘goodnews’?

3. Useasaprobeifnecessary:AlotofthetimeintheAtlanticProvinces,wehearaboutbusinessesinsmalltownsclosingdownandlayingoffworkers.Orwehearaboutnewbusinessesbeingestablishedandpromisingtohirelotsofworkers.Hasyourlocalcommunityhadmuchofeitherhappening?Canyoutellusaboutthat?[Probe:Howdiditaffectyoupersonally,ifatall?Whydidithappen?]

4. Doyouthinkit’swithinyourpowerasalocalresidenttodoanythingtostrengthenthelocaleconomy?Whatcouldyoudo?[probeforcurrentpractices,futureplans]

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5. Whenyoubuygroceriesorhouseholditems,whatarethemostimportantthings

youconsiderwhenchoosingwhatproductstobuyandwheretoshop?[probefor‘buylocal’mantra;probeforwell-knownproductsfromtheregion]HOURTWO:

6. Segue;shouldhappenbybeginningofhourtwo:“Thoughtexperiment”question:whatdoyouthinkwouldhappenif,tomorrow,importingandexportinggoodsoutsideCanadawassuddenlyimpossible?Whataboutoutsidetheprovince?Outsidetheimmediatecommunityitself?Couldpeopleandbusinessesinyourcommunitycontinuetosurviveiftheycouldnotdependonimports?[probefor:self-reliance,dependenceonimports,whatwouldbeokay,whatwouldsuffer]

7. Ourstudyisaboutthepotentialforimportreplacementas‘theothersideofthecoin’toexportdevelopmentinruralAtlanticCanada.[Readshortexplanation—summaryofstudyasfoundinethicsapplicationform].Whatcomestomindwhenyouhearthis?

8. Canyouthinkofanyexamplesofproductsorservicesthatcouldbecost-effectivelyproducedhereinsteadofimported?Youcanthinkofeitherconsumergoods,readytopurchase,orrawmaterialsthatmightbeusedtomakeotherproducts,thatarecurrentlyimported.

9. Doyouthinkthepeopleyouknowinthiscommunitywouldwelcomemorelocally-producedproductsandservicesiftheywereavailable?Howcouldtheybeencouragedtochooselocaloverimportedgoods?

10. Whatdoyouwantthiscommunitytobelikein25years?Whataboutin100years?[probe:growth,stasis,qualityoflife,economicdevelopment,ecology]

11. Inyourview,whatdoesthegovernmentdototryandhelpyourlocaleconomy?Coulditdomore/shoulditdoless?Isitusingtherightapproachorthewrongapproach?[probeforprovincial,federal,municipal]

12. Anythingwe’vemissed?

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Appendix2:CommunitySelectionTable

Attheoutsetofthestudy,thetableincludedfiguresforLord’sCoveinsteadoftheentireBurin Peninsula. For practical and theoretical reasons outlined earlier, the BurinPeninsulareplacedLord’sCove.Originally, the selection of case study communities followed the principles of BentFlyvbjerg’s“information-orientedcaseselection”.57Specifically,weestablishedcriteriaofinterest based on our research question and the Atlantic context (in header row), andsought,asfaraspossible,casesthatwouldgiveus“maximumvariation”onthosecriteria(asopposedtochoosingcasesatrandom).At a general level,wedecided thatwewould choose local or rural communitieswith ashrinking economy, and which has underutilized assets that could be employed forimportreplacement.Wedecidedtoexcludecommunitiesthatweresofinanciallystressedthattheywere‘closetotheedge’ofamalgamation,andselectcommunitiesthatstillhadsome level of resources to effect and implement new development strategies such asimportreplacement. Wealsoconsideredthepossiblecohesivenessofacommunityandits track record of showing interest in new approaches to their economy.

Community Prov Population(2011)

Closestmajor centre(CMC)

DistancefromCMC

Majorindustries(apart fromservice)

Medianage(2011)

Shelburne

NS 1,686 BridgewaterorYarmouth

1 hr 14min or 1hr3min

Fishing,Logging,Shipbuildingandrepair

44.9

Miramichi NB 17,811 -- -- Mining,fishing,forestry

46

Souris PEI 1,173 Charlottetown 1 hr 4min

Fishing,farming andtourism

47

BurinPeninsula

NL 17,791 Marystown

58min Fishing 51.1

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Wedeterminedthatwewantedonecommunityineachprovince,andmadealistof4additionalcriteriaofinterest:populationsize,distancefromclosestmajorcentre,majorindustries,andmedianage.Workingwith an initial list of about 12 communities,we prioritized gettinggoodvariation in termsofpopulation size, andwanted some variation indistance fromclosest major centre, some variation in major industries, and some variation inmedianage.Ourchoiceinoneprovincethusnarrowedtherangeofpossibilitiesintheotherprovinces—forexample, choosingShelburne inNSmeantwewouldnotchooseanothercommunityinanotherprovinceinthe1500-1800populationrangewith a fishing, logging and shipbuilding-focused economy. Thus, there was aniterativeprocessofselectingacommunityandensuringthatitsselectionwouldnotbackus intoanycorners(i.e. lackingchoices togiveusenoughvariation) inotherprovinces.Although we had a good range of population sizes, initially, from the tiny Lord’sCove to the urban (but still small and peripheral) Miramichi, the challenge, inAtlanticCanada,isthatmostcommunitiesareverysimilarintermsofthelastthreecriteria. Geographically, most places are not further than one hour away from amajorcentrewithmostamenities(hospital,largegrocerystore,boxstores,banks),althoughthesizeof (andeaseofaccessto) theclosestmajorcentrevariesacrosseachcase.Looking at major industries, all four provinces are dominated by the serviceindustry, as is the entire country, with fishing and other natural resource-basedindustries a close second.However, our cases range fromnear-total relianceon asinglenon-serviceindustrytoamuchmorediversifiedindustrialbase.Finally, given the demographic homogeneity of Atlantic communities, we have areasonable spread of median ages, from the youngest (Shelburne) to the oldest(BurinPeninsula).Allofourcasestudycommunitiesareolderthanthemedianagefor Canada (41)and themedian age for their respective provinces, as onewouldexpectwhenlookingatnon-urbanpopulations.

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Appendix 3: Types of community assets, and a questionnaire to guideinventorydevelopmentInventoryingAssetsBreakgroupintosubgroupsof2ormore.Gothroughthefollowingitems,inorder,andgiveeachgroup5minutestocomeupwithalistforeachitem.Repeatwith5minutesforeachitem,thenreconveneasagrouptocreatemasterinventoriesforeachitem—seewhicharecommonlyidentifiedandwhichareunique.

• CAPITALASSETS(8formsofcapital)–includingfinancialcapital,builtcapital,naturalcapital,humancapital,andculturalcapital.Whatarethecapitalassetsalreadyinyourcommunity?E.g.,Skilledgraduatesfromalocalinstitution(humancapital)?Golddeposit(naturalcapital)?Language-speakers(human/culturalcapital)?Basket-weavingheritage(culturalcapital)?

• LOCALBUSINESSES–Listthesmallbusinesses,includingself-employedand

home-basedentrepreneurs,thatareactiveinyourcommunity.

• SOCIALNETWORKS–Listallnonprofits,communitygroups,andvoluntaryassociations.

• HISTORICASSETS–Listthestoriesofkeypeople,historicevents,buildings,

andplaces.

• INFRASTRUCTURE–Listthekeyinfrastructureassetsinyourregionincludingports,railyards,highways,waterandenergysystems,communicationsystems,andhigh-speedinternet.

• PUBLICBUILDINGS–Identifyallpublicbuildings(i.e.,publiclyowned)in

yourregionthatmightbeavailableforCommunityEconomicDevelopment(CED)purposes.

• UNDERUTILIZEDASSETS–Identifyunderutilizedassetsthatcouldboost

CED.Thesemightincludeemptybuildings,brownfields,abandonedfarms,orevenpeoplewithdisabilitieswhoareunemployed.

• POLICYINVENTORY:identifyandinventorywhichpoliciessupportlocal

businessesandwhichimpedethem.

• POLICYREFORMS:setprioritiesonwhichpoliciesshouldbereformedtostrengthenlocalbusinesses(mayneedtoinformallysurveylocalbusinesses).

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• UNNECESSARYIMPORTS–Whatgoodsandservicesdopeopleand

institutionsinthecommunityhavetoimportthatmightbegoodcandidatesforlocalproduction?

o Thenextstepforanygroupistoseeiftheotherinventoriesmight

holdcluesabouthowtomeetdemandandreducebarriersforthesekeyimportswithlocalproduction.Whoshouldlead?Whatdoesthecommunityalreadyhaveinplacetosupportlocalproduction?Doesitneedanythingelsetogetstarted?

o Arethereextantoreasilyimaginableincentivesforimportreplacement?E.g.municipalandprovincialpolicy,chamberawards,etc.

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Appendix4:Endnotes1Neill,R.(1991).AHistoryofCanadianEconomicThought.NewYork:Routledge.2Wingrove,Josh.(2016).WhyCanadiansAreBeingOfferedCashtoAbandonTheirHomes.BloombergOnline.AccessedJune27,2017athttps://www.bloomberg.com/news/features/2016-09-21/why-canadians-are-being-offered-cash-to-abandon-their-homes3Shuman,M.(2017)ProsperitythroughSelf-Reliance:TheEconomicValueofImportReplacementinAtlanticCanadaandHowtoAchieveIt4Jacobs.J.(1983).TheEconomyofRegions.PresentedatthethirdannualE.F.SchumacherLectures,MountHolyokeCollege,SouthHadley,MA.5StatisticsCanada,2016Census.RetrievedMarch15,2017fromhttp://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/index.cfm?Lang=E.Notably,theShelburnefocusgroupsinvitedparticipantsfromallofShelburneCounty(population13,966).6StatisticsCanada,2016Census.RetrievedMarch15,2017fromhttp://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/index.cfm?Lang=E7Allparticipantshavebeengivenpseudonymstoprotecttheirprivacy.8Goffman,E.(1956).Thepresentationofselfineverydaylife.NewYork:RandomHouse.9Apostle,Richard.(1998).Community,State,andMarketontheNorthAtlanticRim:ChallengestoModernityintheFisheries.Toronto:UniversityofTorontoPress,99.10Nikoloyuk,JordanandDavidAdler.(2013).ValuingourFisheries:BreakingNovaScotia’sCommodityCurse.Halifax,NS:EcologyActionCentre.AccessedJune14,2017athttps://foodsecurecanada.org/sites/foodsecurecanada.org/files/valuingourfisheriesfinal.pdf11Smith,M.()'MirimachiCommunityReport:Amediaanalysisofrecenteventsassociatedwithforestindustrymillclosures.'AccessedMay25,2017athttps://sites.ualberta.ca/~jparkins/MIRAMICHI%20COMMUNITY%20REPORT.pdf12Beck,L.,&Ionescu,C.(2015).ChallengesandOpportunitiesFacedbySmallCommunitiesinNewBrunswick:AnIntroduction.JournalofNewBrunswickStudies/RevueD’étudesSurLeNouveau-Brunswick,6.Retrievedfromhttps://journals.lib.unb.ca/index.php/JNBS/article/view/2305713Reimer,Bill.(2006).TheInformalEconomyinNon-MetropolitanCanada.CanadianReviewOfSociology&Anthropology,43(1),23-49.14DuPlessis,Valerie.(2004).Self-employmentactivityinruralCanada.RuralandSmallTownAnalysisBulletin5(5).Ottawa:StatisticsCanada.15Verge,B.(2017).“MaximizingValueFromLimitedResources.”NavigatorMagazine20(6).16Lewchuk,W.,Lafleche,M.,Dyson,D.,Goldring,L.,Meisner,A.,Procyk,S.,...&Vrankulj,S.(2013).It’smorethanpoverty:Employmentprecarityandhouseholdwell-being.PovertyandEmploymentPrecarityinSouthernOntario,Hamilton.17Shuman,2017.18IRCCFactsandFigures,2015:Table3.6.TemporaryForeignWorkerProgramworkpermitholdersbydestinationandsignyear,2006to2015.AccessedMay26,2017athttp://open.canada.ca/data/en/dataset/d8dea62f-f496-49d0-8eaf-8d5a1ab36b2a?_ga=2.22496313.302466258.1495821368-2088743614.149581881419Foster,Karen.(2013).Generation,DiscourseandSocialChange.NewYork:Routledge;Cairns,J.(2017).TheMythoftheAgeofEntitlement:Millennials,Austerity,andHope.UniversityofTorontoPress.20Although the research participantsweremostly convinced the ultimate goalwas to create new,good jobs in their communities, their reflections on the intractability of the mismatch betweenworkersandjobspointtosomethingelse.Thatis,theycomenearbutdonotconsideranalternativevisionforthefutureofruraleconomiesthatdetacheswhateconomichistorianJamesLivingstoncalls“the receipt of income from the production of value”. For Livingston and a growing number ofscholarsandwriters, theapparent incapacityof jobs todeliveradequate incomes,andtheongoingdisplacementofhumanworkersbytechnologiesandmoreefficientworkprocesses,signalthatitistimetoimagineaworldinwhichonedoesnothavetoworkatajobto“earntherightnottodie.”tisworth saying that, with the right overarching income redistribution policies, even an import

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replacementstrategycouldtakeadvantageoftheincredibleproductivityincreasesaffordedbynewtechnologiesbyhavingpeopleworkless.Inruralcommunities,thismightlooklikeacombinationofwork-sharing,flexiblejobs,andaguaranteedminimumincomeprovidedbythestateandfundedbyarestructured taxation regime. Advocates of Guaranteed Annual Income (GAI) or a Basic IncomeGuarantee(BIG)areadamantthatoursocietieswillsoonconfrontaninescapableneedtodistributeincome through something other than paid employment. This possible future is compatible withimportreplacement.21Shuman,2017.22Seewww.energizebridgewater.caformore.23OneNSCoalition(TheNovaScotiaCommissiononBuildingourNewEconomy).(2014).NoworNever:AnUrgentCalltoActionforNovaScotians.Halifax,Retrievedfromhttp://onens.ca/wp-content/uploads/Now_or_never_short.pdf24Krugman,P.(1994).Competitiveness:ADangerousObsession.ForeignAffairs,73(2).25Bristow,G.(2005).Everyone'sa‘winner’:problematisingthediscourseofregionalcompetitiveness.JournalofEconomicGeography,5(3),295-6.26Krippner,G.,M.Granovetter,F.Block,N.Biggart,T.Beamish,Y.Hsing,G.Hart,G.Arrighi,M.Mendell,J.Hall,M.Burawoy,S.VogelandS.O'Riain.(2004).PolanyiSymposium:aconversationonembeddedness.SocioeconomicReview2:109–135.27Inashatterpack,layersoffrozenfishfilletsareseparatedbysheetsofplasticandplacedinabox.Thefilletsmayhavetobe"shattered"toseparatethemwhentheyarestillfrozen.28See,forexample:Ward,R.(2016)NovaScotialobsterbuyersmusttakehandlingcourseforlicence.CBCNewsOnline.AccessedDecember12,2017athttp://www.cbc.ca/news/canada/nova-scotia/lobster-handling-course-keith-colwell-1.348559129Thomas,W.I.andD.S.Thomas.(1928).ThechildinAmerica:Behaviorproblemsandprograms.NewYork:Knopf,571–572.30Piketty,Thomas.(2014).CapitalintheTwenty-FirstCentury.Boston,MA:HarvardUniversityPress.31Fields,Andrew,SharanjitUppalandSébastienLaRochelle-Côté.2017.“Theimpactofagingonlabourmarketparticipationrates.”InsightsonCanadianSociety.Ottawa:StatisticsCanada.AccessedJune20,2017athttp://www.statcan.gc.ca/pub/75-006-x/2017001/article/14826-eng.pdf32http://globalnews.ca/news/1829982/elementary-school-in-long-term-care-home-a-first-in-saskatchewan/33GovernmentofCanada.(2014).ChiefPublicHealthOfficer’sReportontheStateofPublicHealthinCanada,2014:PublicHealthintheFuture.AccessedJune19,2017athttp://publichealth.gc.ca/CPHOReport34Krawchenko,T.&Foster,K.(2016)"'Generationing’PublicPolicy:Amulticountryreviewofintergenerationalequitypolicies"inPublicPolicy&GovernanceReview7(2).35http://www.cbc.ca/news/canada/nova-scotia/shelburne-residents-worried-about-roseway-hospital-s-future-1.298518036http://www.cbc.ca/news/canada/rural-school-closures-1.415705937Shuman,2017.ProsperitythroughSelf-Reliance:TheEconomicValueofImportReplacementinAtlanticCanadaandHowtoAchieveIt38Ibid.39Ibid.40Kretzmann,J.andJ.McKnight.(1993).BuildingCommunitiesfromtheInsideOut:APathTowardFindingandMobilizingaCommunity'sAssets.AccessedAugust17,2017athttps://resources.depaul.edu/abcd-institute/publications/Pages/basic-manual.aspx41CanadaBusinessNetwork.2014.“WhyStartaCo-operative?”AccessedJune24,2017athttps://canadabusiness.ca/blog/why-start-a-co-operative-1/42CanadaBusinessNetwork.2014.“WhyStartaCo-operative?”AccessedJune24,2017athttps://canadabusiness.ca/blog/why-start-a-co-operative-1/43Apostleet.al.,1998:7.44Flynn,P.(2004).Makingandmetaphor:hookedrugdevelopmentinNewfoundland,1973-2003.MaterialCultureReview/Revuedelaculturematérielle,60(1).45TolearnmoreabouttheEconomuseenetworkinAtlanticCanada,visitwww.artisansatwork.ca

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46Verge,B.(2017)'MaximizingValuefromLimitedResources',Navigator20:6(June),23-24.47FarmtoCafeteria(2012).StrategicPlan.AccessedJune27,2017athttp://www.farmtocafeteriacanada.ca/wp-content/uploads/2012/11/F2CC-Strategic-Plan_121031.pdf48FormoreonRyersonEats,seehttp://food.ryerson.ca/49Gaskell,A.(2016).‘Whyaflexibleworkerisahappyworker.’ForbesMagazineOnline.AccessedJune26,2017athttps://www.forbes.com/sites/adigaskell/2016/01/15/why-a-flexible-worker-is-a-happy-and-productive-worker/#3e820dee14c4.SeealsoFoster,K.(2013).Generation,DiscourseandSocialChange.Toronto,ON:Routledge.50NovaScotiablueberrygrowerswithbumpercropsin2017couldnotfindenoughpickersthroughconventionaljobboards;socialmediasolvedtheproblem.InWycogomah,NS,acountrystoremadeheadlineswhenitusedsocialmediatoofferfreelandtoanyonewillingtorelocateandworkatthestore.51Williams,R.(forthcoming).FisheriesSeasonalWorkforceStudy.Unpublisheddata/personalcorrespondence.52Beaulieu,Martin.2014.DemographicchangesinCanadianAgriculture.CanadianAgricultureataGlance(February).Ottawa:StatisticsCanada.AccessedJune7,2017athttp://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=96-325-X201400111905&ObjType=47&lang=en53Innovation,ScienceandEconomicDevelopmentCanada.2016.KeySmallBusinessStatistics(June2016).Ottawa,ON:ISEDSmallBusinessBranch.AccessedJune7,2017athttps://www.ic.gc.ca/sbstatistics54Bruce,DougandQueenieWong.2012."PassingontheBusinesstotheNextGeneration:Surveyresultsonsmallbusinesssuccessionplanning."OttawaandToronto,ON:CanadianFederationofIndependentBusiness.AccessedJune7,2017athttp://www.cfib-fcei.ca/cfib-documents/rr3277.pdf55Corfu,Nina.(2017).‘Wanthighspeedinternet?Buildityourself,likethesevillagers.’CBCNewsOnline.AccessedJune27,2017athttp://www.cbc.ca/news/canada/nova-scotia/annapolis-valley-co-op-wifi-rural-internet-lawrencetown-1.404585056Thisassertionisalsosupported,forexample,inthe2016EconomicBlueprintforNewfoundlandandLabrador,createdfromaroundtableofprivatesectorleadersconvenedbytheSt.John’sBoardofTrade.57Flyvbjerg,Bent.2006.MakingSocialScienceMatter.Cambridge,UK:CambridgeUniversityPress.