Staples thesis
Encyclopedia
The staples thesis is a theory of Canadian
economic development
. The theory “has its origins in research into Canadian social, political, and economic history carried out in Canadian universities…by members of what were then known as departments of political economy.” From these groups of researchers, “the two most prominent scholars following this approach were Harold Innis
and W.A. Mackintosh
.” During the 1990s, it was revived by Daniel Drache
through his work on resource capitalism and Canadian political economy.
Innis argued that Canada developed as it did because of the nature of its staple commodities: raw materials, such as fish, fur, lumber, agricultural products and minerals, that were exported to Europe
. This trading link cemented Canada's cultural links to Europe. The search for and exploitation of these staples led to the creation of institutions that defined the political culture of the nation and its regions.
Innis argues that different staples led to the emergence of regional economies (and societies) within Canada. For instance, the staple commodity in Atlantic Canada
was cod
. This industry was very decentralized, but also very co-operative. In western Canada the central staple was wheat
. Wheat farming was a very independent venture, which led to a history of distrust of government and corporations in that part of the country. (Also important, however, were the shocks caused by volatility in the market for wheat and by the weather itself on the growing season.) In Central Canada
, the main staple was fur
, and the fur trade
dominated the economy for many years. This fur trade was controlled by large firms, such as the Hudson's Bay Company
and thus produced the much more centralized, business-oriented society that today characterizes Montreal
and Toronto
.
Innis depicted the relationship between regions of Canada as one of "heartland" to "hinterland": The periphery
, or hinterland, is dominated by the core, or heartland. Because the heartland was dependent upon the search for and accumulation of staples (which were located in the hinterland) to perpetuate the economy, it sought to gain economic and political power by exploiting the hinterland.
To Innis, it was the fur trade that created the geographical boundaries of Canada. The early links between the Canadian interior and eastern ports led to Canadian unity and its distinctiveness from the United States
. However, the importance of fur as a staple product also resulted in the northern half of the continent remaining dependent on Britain
for trade and thus essentially British for so much of its history.
While the staples thesis originally described the evolution of the Canadian state, it has since been used to study the economies of many nations that are dependent upon resource-extraction and primary industries. The staples thesis states that exportation of raw materials can trigger sustainable economic growth - while its critics argue that reliance on commodity export can constitute a development trap.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
. The theory “has its origins in research into Canadian social, political, and economic history carried out in Canadian universities…by members of what were then known as departments of political economy.” From these groups of researchers, “the two most prominent scholars following this approach were Harold Innis
Harold Innis
Harold Adams Innis was a Canadian professor of political economy at the University of Toronto and the author of seminal works on media, communication theory and Canadian economic history. The affiliated Innis College at the University of Toronto is named for him...
and W.A. Mackintosh
William Archibald Mackintosh
William Archibald Mackintosh, CC, FRSC was a Canadian academic, economist, political scientist, writer, and was the twelfth Principal of Queen's University from 1951 until 1961....
.” During the 1990s, it was revived by Daniel Drache
Daniel Drache
Daniel Drache is a contemporary scholar in Canadian and international political economy, globalization studies, communication studies, and cultural studies...
through his work on resource capitalism and Canadian political economy.
Innis argued that Canada developed as it did because of the nature of its staple commodities: raw materials, such as fish, fur, lumber, agricultural products and minerals, that were exported to Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. This trading link cemented Canada's cultural links to Europe. The search for and exploitation of these staples led to the creation of institutions that defined the political culture of the nation and its regions.
Innis argues that different staples led to the emergence of regional economies (and societies) within Canada. For instance, the staple commodity in Atlantic Canada
Atlantic Canada
Atlantic Canada is the region of Canada comprising the four provinces located on the Atlantic coast, excluding Quebec: the three Maritime provinces – New Brunswick, Prince Edward Island, and Nova Scotia – and Newfoundland and Labrador...
was cod
Cod
Cod is the common name for genus Gadus, belonging to the family Gadidae, and is also used in the common name for various other fishes. Cod is a popular food with a mild flavor, low fat content and a dense, flaky white flesh. Cod livers are processed to make cod liver oil, an important source of...
. This industry was very decentralized, but also very co-operative. In western Canada the central staple was wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
. Wheat farming was a very independent venture, which led to a history of distrust of government and corporations in that part of the country. (Also important, however, were the shocks caused by volatility in the market for wheat and by the weather itself on the growing season.) In Central Canada
Central Canada
Central Canada is a region consisting of Canada's two largest and most populous provinces: Ontario and Quebec. Due to their high populations, Ontario and Quebec have traditionally held a significant amount of political power in Canada, leading to some amount of resentment from other regions of the...
, the main staple was fur
Fur
Fur is a synonym for hair, used more in reference to non-human animals, usually mammals; particularly those with extensives body hair coverage. The term is sometimes used to refer to the body hair of an animal as a complete coat, also known as the "pelage". Fur is also used to refer to animal...
, and the fur trade
Fur trade
The fur trade is a worldwide industry dealing in the acquisition and sale of animal fur. Since the establishment of world market for in the early modern period furs of boreal, polar and cold temperate mammalian animals have been the most valued...
dominated the economy for many years. This fur trade was controlled by large firms, such as the Hudson's Bay Company
Hudson's Bay Company
The Hudson's Bay Company , abbreviated HBC, or "The Bay" is the oldest commercial corporation in North America and one of the oldest in the world. A fur trading business for much of its existence, today Hudson's Bay Company owns and operates retail stores throughout Canada...
and thus produced the much more centralized, business-oriented society that today characterizes Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
and Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
.
Innis depicted the relationship between regions of Canada as one of "heartland" to "hinterland": The periphery
Core-periphery
Core-periphery theory is based on the notion that as one region or state expands in economic prosperity, it must engulf regions nearby to ensure ongoing economic and political success. The area of high growth or former high growth becomes known as the core, and the neighboring area is the periphery...
, or hinterland, is dominated by the core, or heartland. Because the heartland was dependent upon the search for and accumulation of staples (which were located in the hinterland) to perpetuate the economy, it sought to gain economic and political power by exploiting the hinterland.
To Innis, it was the fur trade that created the geographical boundaries of Canada. The early links between the Canadian interior and eastern ports led to Canadian unity and its distinctiveness from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. However, the importance of fur as a staple product also resulted in the northern half of the continent remaining dependent on Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
for trade and thus essentially British for so much of its history.
While the staples thesis originally described the evolution of the Canadian state, it has since been used to study the economies of many nations that are dependent upon resource-extraction and primary industries. The staples thesis states that exportation of raw materials can trigger sustainable economic growth - while its critics argue that reliance on commodity export can constitute a development trap.