---
canonical_url: "https://csls.ca/research/the-key-challenge-for-canadian-public-policy-generating-inclusive-and-sustainable-economic-growth/"
title: "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-02T12:52:51+00:00"
date_modified: "2026-07-02T12:52:51+00:00"
post_type: "research"
summary: ""
post_tag:
  - "Canada"
  - "economic growth"
  - "fiscal policy"
  - "green growth"
  - "immigration"
  - "inclusive growth"
  - "investment"
  - "labour supply"
  - "productivity"
  - "public policy"
country_focus:
  - "Canada"
province_region:
  - "National"
research_theme:
  - "Fiscal Policy"
  - "Productivity and Economic Measurement"
featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp"
status: "publish"
---

# The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth

Canonical URL: https://csls.ca/research/the-key-challenge-for-canadian-public-policy-generating-inclusive-and-sustainable-economic-growth/

# The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth

[Download full PDF report](https://csls.ca/pdf/csls2015-11-1.pdf)

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Cite this report as:

Drummond, Don, Evan Capeluck, and Matthew Calver. 2015. “The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth.” CSLS Research Report 2015-11. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-key-challenge-for-canadian-public-policy-generating-inclusive-and-sustainable-economic-growth/

## Authors:

-
Don Drummond
Centre for the Study of Living Standards (CSLS)

-
Evan Capeluck
Norman Paterson School of International Affairs, Carleton University

-
Matthew Calver
Centre for the Study of Living Standards (CSLS)

## Report 2015-11

September 2015 296 pages

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## Abstract

## Résumé

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Recent economic and fiscal projections produced by the Centre for the Study of Living Standards suggest that revenue growth over the next 23 years in most provinces and territories will be insufficient to maintain recent increases in health expenditures while holding other spending constant on a real per capita basis. Motivated by these fiscal challenges, we present a series of policy recommendations for Canada’s governments at all levels to foster greater economic growth. Higher GDP not only offers a means to raise government revenues, it also directly raises the well-being of Canadians. We consider options to boost economic growth in two broad ways. First, by boosting Canada’s productivity performance through policies promoting private and public investment, education, technological innovation and diffusion, and trade. Second, by tapping into Canada’s underutilized labour supply, particularly by assisting women, older workers, persons with disabilities, Aboriginal people, and immigrants in successfully participating in the workforce. The recommendations in this report are guided by the Organization of Economic Co-operation and Development’s green growth and inclusive growth frameworks and by the idea that government should take a more active role in supporting the economic activities of individuals and businesses.

Les récentes projections économiques et budgétaires produites par le Centre d’étude des niveaux de vie suggèrent que la croissance des revenus au cours des 23 prochaines années sera insuffisante, dans la plupart des provinces et territoires, pour maintenir les hausses récentes des dépenses de santé tout en maintenant constantes les autres dépenses en termes réels par habitant. Motivés par ces défis budgétaires, nous présentons une série de recommandations politiques à l’intention des gouvernements canadiens, à tous les paliers, afin de favoriser une plus grande croissance économique. Un PIB plus élevé constitue non seulement un moyen d’accroître les revenus gouvernementaux, mais il rehausse aussi directement le bien-être des Canadiens. Nous envisageons des options pour stimuler la croissance économique de deux grandes façons. Premièrement, en améliorant la performance du Canada en matière de productivité grâce à des politiques favorisant l’investissement privé et public, l’éducation, l’innovation technologique et sa diffusion, ainsi que le commerce. Deuxièmement, en mettant à contribution l’offre de main-d’œuvre sous-utilisée du Canada, notamment en aidant les femmes, les travailleurs âgés, les personnes handicapées, les Autochtones et les immigrants à participer pleinement au marché du travail. Les recommandations de ce rapport s’inspirent des cadres de croissance verte et de croissance inclusive de l’Organisation de coopération et de développement économiques, ainsi que de l’idée que le gouvernement devrait jouer un rôle plus actif dans le soutien des activités économiques des particuliers et des entreprises.

[Download full PDF report](https://csls.ca/pdf/csls2015-11-1.pdf)
