Crown corporations and co-operatives as coping mechanisms in regional economic development

ABSTRACT

This paper focuses attention on two types of businesses, Crown corporations and co-operatives, that have long been associated with attempted solutions to regional economic developmental problems in Canada. The paper argues that co-operatives and Crown corporations can be viewed as coping mechanisms that attempt to make up for shortcomings in Canada's market-based economic system. Consistent with this perspective, the case study of co-operatives and Crown corporations finds that, taken as a single group, these firms are more spatially dispersed than their privately held and publicly traded counterparts at both the Canadian national level and the regional level in Saskatchewan. The study also shows that, taken separately, Crown corporations are highly concentrated within Saskatchewan, while co-operatives are dispersed across the province. A possible explanation for this behaviour, warranting further research, is that Crown corporations in Saskatchewan encourage development provincially by linking with global and national business networks in their respective industries, while co-operatives in Saskatchewan largely focus on facilitating economic development opportunities at a local level across the many smaller town- and city-centred regions of the province. The paper discusses the meaning of these and other findings for regional economic development efforts in Saskatchewan and Canada.