The economy as a driver of change in the Great Lakes–St. Lawrence River basin

Abstract

The economic capacity of the Great Lakes–St. Lawrence River basin rivals the largest industrialized economies in the world today. Abundant natural resources, an efficient transportation system, binational economic integration through a complex network of supply chains, and a world-class system of higher education have all helped the region generate considerable wealth. Despite its historic success, the region's economy is undergoing a transition. The service sector continues to account for a growing proportion of regional employment and economic activity while manufacturing accounts for a declining share of the economy. As was the case historically, the region's natural endowments, especially the Great Lakes themselves, continue to be important economic engines. However, certain sectors such as agriculture, heavy industry, and trans-oceanic shipping have negatively impacted the health of the Great Lakes while other sectors such as tourism and sport fishing impact the lakes very little but are directly reliant on Great Lakes ecological integrity. To achieve a vibrant and sustainable economic future, investments must be made in: education, infrastructure, new high-growth manufacturing, and environmental restoration. Such investments will help the region to attract and retain a young, talented, and innovative workforce to be competitive in emerging global markets. These investments are also necessary to bolster the region's exports, an important component of long-term economic vitality. We used a scenario building approach to illustrate potential economic futures for the region. The scenarios can aid in planning and decision-making as Great Lakes communities and governments strive to lead the region toward a desirable economic future.