Clearwater County Highlights October/November | Page 30

30 | NOV. 2016

Economic Diversification
The term economic diversification is a buzz
phrase these days, with “we need to diversify” being heard throughout communities and
government levels within Alberta. MerriamWebster Dictionary defines diversification as,
“to increase the variety of goods or services
offered by someone or something.”
Economic diversification of a community
essentially means a reduction of risks as
typically all economic sectors do not decrease in value and activity at the same time.
A community with a diverse economy will
weather a storm better than those without,
because multiple industries provide a variety
of careers and revenue streams to local
residents and governments. A balance occurs
when one industry is underperforming while
others thrive, allowing residents and governments to maintain and continue to invest in
the services that provide the desired quality
of life.
Communities that don’t grow beyond their
primary industry are subject to the demands
of one product, dependent on international
markets beyond any local community’s
control. There are “ghost towns” around the
province because the market for their product changed and there was nothing else to
nurture the local economy.
A good economy has a variety of industries,

with multiple companies in each of those
industries, which provide career options for
local residents and a broad tax base for local
governments.1 Encouraging new companies
to move in or to start up, particularly in new
sectors, can diversify a region even more.
A community looking to diversify will have
land and building space for these new companies, encourage local and foreign investment and expansion of business, creating
new prospects for local residents and new
revenue streams for government.
Clearwater County has four main industries that have served our local economy
for decades: oil & gas, forestry, agriculture,
and tourism. County staff are working with
existing industries to identify undeveloped
opportunities, as well as looking at industries that would be a good fit within our
region. Clearwater County, along with our
partners, the Village of Caroline and the
Town of Rocky Mountain House, is working
to encourage new businesses and industries,
as well as business expansion within our
region. All of these efforts do take time, but
are steps towards diversifying our economy
further.
1. https://www.reference.com/world-view/
diversified-economy-55ce5506ad732b10

PHOTO BY BARRY SHELLIAN

www.clearwatercounty.ca