Comparative Analysis of Adopted Rural Development Measures in Saskatchewan: Five Case Studies

Abstract

Over the last half century, most small regions and communities in Saskatchewan, Canada, have been facing a decline in their population. Major reasons for such a decline is outmigration of residents to larger centers that provide better quality of life as well as lack of new businesses moving into these communities, perhaps due to somewhat unattractive business climate. To secure economic development, some rural communities (including Rural Municipalities – RM) have attempted to lure business and residents through various types of incentives, including the use of tax and nontax incentives. Examples of such incentives have included, but not limited to, property tax incentives -- municipal tax abatement, property tax incentives, and commercial and industrial tax incentives. This study was based on a case study of five Saskatchewan rural municipalities (RM) in Saskatchewan to inquire about the effectiveness of such tax and nontax incentives. These communities were surveyed using a well-structured questionnaire. In most cases, interviewee was the economic development officer of the R.M., or failing that its mayor. Results of the success of the measures were mixed, as only one community indicated some success in attracting new consumer (tourists oriented) services / businesses. Even here, since this RM is located on a major national highway, marginal contribution of these incentives cannot be ascertained fully. Another R.M. indicated that the community was too small to have an economic development programs and joined neighbouring R.M. for joint collaboration. For other three RMs, the success of these incentives was noted to be nil to limited, although in one case, it was argued that the lead period between the implementation of the incentives and current reporting period was too short. This study confirms much of the evidence found in the literature that such impacts typically do not result in attracting new businesses or new residents. Other factors, particularly those related to attractiveness of the community (region) might play a more important role in rural economic development.