david dodge : global challenges, canadian opportunities remarks by mr david dodge, governor of the bank of canada, to the office for partnerships for advanced skills annual visionary seminar, ottawa, ontario, 17 november 2003. * * * good afternoon, ladies and gentlemen. let me begin by congratulating opas for its work in advancing partnerships between industry and universities. these partnerships will be increasingly important for canada in the years ahead. let me also say how honoured i am to receive the opas visionary award for 2003. when i look at the list of distinguished business leaders who have received this award in the past - charles baillie and john cleghorn, ted rogers and mike lazaridis, john sheridan and jean monty - i must say that i am absolutely delighted to join them. it ’ s a particular pleasure to receive this award since it marks the first time that it is being given to a person who has made a career in the public sector. this award recognizes that the public sector has an important role to play in promoting the economic health of a country. far too often, people think that the private sector is solely responsible for creating wealth, and that the best the public sector can do is to redistribute that wealth. the reality is far more complex. that ’ s what i want to talk about today : how those complexities give rise not only to challenges, but also to opportunities. in particular, i want to talk about the challenges posed by the globalization of the world economy, and how canadians in the public and private sectors can take advantage of the opportunities that the global economy presents. it is certainly nothing new to say that economies have become increasingly globalized. in his 1962 book, the gutenberg galaxy, marshall mcluhan observed that the electronic mass media were collapsing time and space barriers. this enabled people to communicate on a global scale. he coined the term “ global village ” to describe this change. of course, even mcluhan couldn ’ t have foreseen the developments in transportation and communications that have taken place over the four decades since his book was published. these developments have converted mcluhan ’ s abstract concept into reality. satellite technology gives us live broadcasts from anywhere in the world. ideas are available simultaneously to those who have access to the internet - and that number continues to grow at an exponential rate. as i stand here today, i can talk to, and hear from, thousands of people across the country at the same time. more to

wide variety of cultures, each with its own perspective and ways of doing things. we canadians need to continue to broaden our horizons, and to think of ourselves as citizens of that world. that means getting as much global exposure as we can. canadians are fortunate to have much of the world ’ s diversity reflected across our country at large, and in our universities. six continents ’ worth of culture can be found here in one country, sometimes in one city. that diversity allows for mutual enrichment that benefits us all. it is important for those from different backgrounds to learn about the strengths and rich traditions of this country. it is equally important that those of us who were born here, into families with deep roots in canada, to learn from the backgrounds and cultures of those who come from other continents. by listening to each other, we learn how to listen to the world. by speaking to each other, we learn how to speak to the world. that two - way learning adds a new dimension to the metaphor of the canadian mosaic - the colours in the mosaic remain distinct, but they blend together to create a vibrant and dynamic picture. in short, canada ’ s diversity is a real strength, and it will fall to you, the next generation of leaders, to ensure that we use this strength to our advantage. so that ’ s the first message i have : think globally, act globally, and experience the world ’ s diversity. the importance of finance during my career, i have spent a lot of time working with the financial sector in one way or another. from a global perspective, i have seen how people ’ s lives can be made better when countries choose to open their economy to outside investment. so let me now take a few minutes to talk about my second point - the opportunities that lie within the financial sector, in the context of increased openness and globalization. nowhere have the advances in communication and information technologies had a greater impact than in the financial sector. technological advances and increased openness have led to greater flows of capital and new methods of financing development. capital flows have become global, as investors look across national boundaries for the best opportunities for their savings. this has benefited not only countries that receive investment, but also allowed our aging society to generate higher returns on its savings, both private and public. of course, a country that truly embraces openness in its markets leaves itself open to increased risks. we have all seen what can happen when investment flows into countries with unreliable or underdev