The Vital Commons

1. The Vital Commons By Beaver and Eagle (Beagle) Consulting

2. Strategic Context GLSR region produces:- $4.6 tr USD in annual economic output- 75% of Canadian manufacturing - 33% of American manufacturing Changes in the world economy threaten this region’s economic position and the well-being of its future. Part of this problem is the lack of coordination between countries to revitalize this area. GLSR region risks: 2 million jobs 42% of US – Canada two-way merchandising trade Further continuation of rust-belt communities

3. Strategic Context Barriers to short-term integration:- Regulation policies [commerce]- Transportation [physical] Our mission for the council is to revive economic development in the region. Our objective is to start with the immediate variables that block the public-private sector coordination needed for robust and sustainable economic growth. Outcomes: Short-term: reduce barriers to boost trade and align economic activity Long-term: provides platform for more lengthy initiatives such as investment in new sectors and training worker The role is to remove main trade barriers for private market sector agents to make the region more attractive to current and potential businesses.

4. Strategic Context This requiresthat the council- be politically favorable and balanced- garner commercial and community support- understand how large businesses and SMEs realistically work Limitations and boundaries…. ST: cannot create coordinated new industry sectors and economic diversity without proper infrastructure can’t get complete consensus

5. Status Quo: Businesses Costs • Costs due to transportation/border delays • Costs due to regulatory dis-alignment • Costs due to lack of understanding of regulatory framework (ie fines, redundancy, etc...) Benefits • No administrative costs from operating a council

6. GLPC: Businesses Costs • Threat to competitiveness and trade secrets as a result of greater transparency • Setting up the secretariat & funding on-going operations • Administrative and HR burden for business to interface with council • Costs to integrate policies of the council and change operating practices • Certification costs for the SME-specific trusted trader program • Costs to businesses that currently benefit from protectionist policies (harmonization costs)

7. GLPC: Businesses Benefits • Increased trade (for SMEs in particular) • More integrated supply chains • Shorter shipping times • Reduced paperwork and internal resources dedicated to regulatory compliance • Collaborative relationships increase the potential for innovation • Social capital from networks and connections • More attractive investment environment • Increased business competitiveness

8. Status Quo: Governments Costs • Lost tax revenue due to smaller tax base/less growth potential • Individual communities/ states could be negatively impacted by change in business climate • Political objections and challenges Benefits • No administrative burden associated with implementing new policies

9. GLPC: Governments Costs • Administrative costs and future uncertainty from interfacing with current free trade agreements • Transaction costs to change the regulatory framework Benefits • Decreased administrative burden with regulatory enforcement • Increased tax revenue due to larger tax base/greater growth potential • Increased efficiency and use of manpower at boarder points

10. Status Quo: Civil Society • Benefits • Familiarity with current system and relationship Costs • Higher prices due to higher business costs • Increased environmental impact from global trade • Security concerns from reliance on unstable trading partners • Less stability in trade • Fewer job opportunities and lower wages due to sub-optimal business competitiveness

11. GLPC: Civil Society Costs • Impingement on "Made in the US" and other Pro-American Consumption Movement • Increased ease of crossing the border increases the potential for security risks

12. GLPC: Civil Society Benefits • Guaranteed, consistent supply of products that rely on Canada-US Trading • Lower prices as a result of economies of scale and increased competition • Lower environmental impact from regional focus of trade • Increased trade with a stable trading partner • Diminished fuel and energy consumption from transportation of goods • More job opportunities and higher wages due to increased business competitiveness • Positive image associated with cross-border trade • Increased understanding of the importance of cross-border collaboration

13. Status Quo: Existing Sectorial Interest Groups and Organizations Costs • Sectorial focus does foster regional collaboration Benefits • No administrative costs associated with interfacing with a new comission

14. GLPC: Existing Sectorial Interest Groups and Organizations Costs • Costs of participating in a new council and potential to detract current collaborative effort • Communications and information costs to foster buy-in Benefits • Resources for collaboration and coordination of political priorities across the region • Resource for advocacy of economic development and political priorities

15. Implementation plan • Approach the existing collaborative organizations to glean support and provide info SHORT TERM • Establish regulatory inventory and identify opportunities for harmonization and streamlining • Pilot program in a specific port of trade to facilitate increased trade and labour mobility • Create an SME-specific trusted program

16. Implementation Plan MEDIUM TERM • Develop mentorship program to help businesses navigate current and changing regulatory system • Approach government decision-makers to advise on border-thickening impacts • Utilize lessons learned from pilots and to advocate for regulatory change LONG TERM • Expand program region wide to all major ports • Plan to prevent emergence of new regulatory barriers to trade • Conduct ongoing evaluation and review

17. Justification – Addressing Risks • Legitimacy is key • Keep it simple • Focus access and economic recovery • Utilize the geographic advantage of the lakes • Leverage existing collaborative structures • Enhanced entrepreneurialism from cross-sector and cross-border collaboration

18. Organizational Structure • Membership: • Chairpersons from each Steering Committee • Representatives from funders • GLPC Executive Director (ex officio) • Responsibilities: • Strategic direction and vision • Determine programs to advance goals • Evaluate performance • Financial oversight • Governments • Private Sector • Regulations • Transportation

19. Accountability • Defining Objectives • Determined by each Steering Committee • Monitoring Progress • Measures defined and tracked by Steering Committees • Reporting Progress • Internal annual scorecards to demonstrate changes • Activities completed • Changes observed • External reports to the public every two years • Timeframes and Priority Initiatives • Defined by strategic planning processes of the Board of Directors • Guided by internal reporting processes

20. Communications Strategy • The first step of our communications strategy is to develop a handful of key messages on the benefits of this initiative and our approach. • Stakeholder input will play a critical role and we will reach out to a variety of groups, such as small businesses, major industry groups, environmental stakeholders and government officials to gain their perspective. • Individual strategies will be developed for different types of stakeholders

21. Communications Strategy • Overall message: • This strategy will promote economic growth, cut costs and streamline overall regulatory efforts. All of these efforts are critical amid ongoing economic difficulties. • Success will be determined by measuring overall stakeholder support.

22. Communications Strategy FIVE KEY POINTS • Promote economic development and investment into the region • Will encourage U.S. and Canadian governments to cut their budget, reduce redundancies • Will allow small and medium-sized businesses to avoid burdensome regulations • Promote environmental sustainability • Increase cross-border cooperation

23. Communications Strategy OUTREACH • Reach out to mainstream media • Print and radio • Major and small publications • Educational outreach • Advertisements and informational website • Stakeholder dialogue • Social media campaign