--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-13/the-economists-manifesto-for-curing-ailing-canadian-productivity/" title: "The Economists’ Manifesto for Curing Ailing Canadian Productivity" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T06:53:54+00:00" date_modified: "2026-07-13T06:53:54+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2006" ipm_keyword: - "Canada" - "competition" - "employment insurance" - "fiscal policy" - "human capital" - "infrastructure" - "policy recommendations" - "productivity" - "tax reform" - "trade" ipm_research_theme: - "Policy and institutions" ipm_country_focus: - "Canada" - "OECD" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Economists’ Manifesto for Curing Ailing Canadian Productivity Canonical URL: https://csls.ca/ipm-archive/ipm-issue-13/the-economists-manifesto-for-curing-ailing-canadian-productivity/ # The Economists’ Manifesto for Curing Ailing Canadian Productivity [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-13-2-Drummond.pdf) Cite this article × Cite this article as: Drummond, Don. 2006. “The Economists’ Manifesto for Curing Ailing Canadian Productivity.” International Productivity Monitor, No. 13 (Fall 2006): 21–26. https://www.csls.ca/ipm-archive/ipm-issue-13/the-economists-manifesto-for-curing-ailing-canadian-productivity/ ## Author: - Don Drummond Centre for the Study of Living Standards (CSLS) ## IPM Issue 13 Fall 2006 pp. 21–26 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) [Eroding Natural Capital: An Alternative Explanation for the Secular Decline in Productivity Growth Christina Caron Fall 2024 | IPM Issue 47 | pp. 109–147](https://csls.ca/ipm-archive/ipm-issue-47/eroding-natural-capital-an-alternative-explanation-for-the-secular-decline-in-productivity-growth/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Most economists blame Canada’s lackluster productivity performance in recent decades for sluggish growth in per capita incomes and a declining position in international rankings of economic well-being. Political leaders are reluctant to embrace a productivity agenda because of the public’s confusion, indeed fear, of the subject. Many believe productivity is about working harder for less pay, or precisely the opposite of the economist’s definition. Despite poor productivity growth, Canada remains a wealthy country. But there is ample reason for concern. Canada’s level of productivity has slipped to 17th among OECD nations from third in the 1950s and 1960s. Unless our record is turned around quickly, Canadians’ quality of life will stand still while other nations move ahead. This article summarizes the elements that are in common in most economists’ recommendations on how to raise productivity in Canada. Some of the recommendations require governments to tackle issues such as removing interprovincial trade barriers and reforming employment insurance where firmly established interests would be rocked. The private sector would have to shed some complacency. But the pay-offs would be enormous. Economists have come together impressively on an action plan to raise productivity, now they need to hone their communications skills to convince the country to swallow the prescribed medicine. MOST ECONOMISTS PUT LACKLUSTER produc- La plupart des économistes imputent la piètre performance de la productivité du Canada au cours des dernières décennies à la lente croissance des revenus par habitant et au recul de la position du pays dans les classements internationaux du bien-être économique. Les dirigeants politiques répugnent à adopter un programme de productivité en raison de la confusion du public, voire de sa crainte, à l’égard de ce sujet. Beaucoup croient que la productivité signifie travailler plus dur pour moins de salaire, soit précisément le contraire de la définition donnée par les économistes. Malgré une faible croissance de la productivité, le Canada demeure un pays riche. Mais il y a des raisons sérieuses de s’inquiéter. Le niveau de productivité du Canada est passé du 3e rang parmi les pays de l’OCDE dans les années 1950 et 1960 au 17e rang actuel. À moins d’un redressement rapide, la qualité de vie des Canadiens stagnera tandis que d’autres nations progresseront. Cet article résume les éléments communs aux recommandations de la plupart des économistes sur les moyens d’améliorer la productivité au Canada. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-13-2-Drummond.pdf)