Staples Thesis in Canada

The theory, also known as Staples Thesis, originated in Canada and has played a pivotal role in the country’s economic growth. FortRoddHill was interested in discovering more about the thesis and how it drove the country’s economic development, so our trained research team has done the necessary analysis. If you also want to learn who developed the Staple thesis and how this approach led to the creation of institutions that shaped the political culture of the Canadian nation, read our findings below.

Staples Thesis

The thesis originated as a 20th-century theory aiming to explain the driver behind Canadian economic history. The contribution to developing the Staple Thesis is solely of Canadian scholars, including famous figures Harold Innis and W.A. Mackintosh, who worked within Canadian departments of political economy. Innis’ thesis holds that Canada’s history was deeply impacted by the exploitation and export of staples like fur, fish, lumber, and wheat.

The Staples Thesis of Canada was widely popular in academic circles from the 1930s to the 1960s, and for a good reason. Historians and academics agree that the way Canadian cities were formed and the regional relationships between them have always been motivated by the trade of staple commodities like the aforementioned fur, fish, lumber, etc. To support Innis’s point further, Canada’s foreign policies have always been centred around the export of its key products, which explains the strong connection with Great Britain.

How the Thesis Could Be Applied to Canada: Example

Innis maintained the position that Canada owes its development to the staple commodities it exported to Great Britain and the West Indies. To a large degree, this solidified the trade relations between Canada and the said countries and even led to the creation of institutions to manage foreign politics related to trade. Harold Innis also noticed that regional economies and societies were formed around staples.

A great example of Staples Thesis is Atlantic Canada’s cod, which requires a co-operative effort. Fisheries has always been an important industry for Canada, even dating back to when European settlers first arrived. In the 1600s, in British North America and New France, fishing cod was already a key industry. Fishermen would send fishing boats and ships to the Atlantic and then export the fish to Europe. This is how the trade relations with Great Britain were established. When there wasn’t a market for the fish, the fisheries would export raw goods to exploit the already established trade connections. 

Wheat farming was another industry that left its societal and economic mark on Canada. As a more independent enterprise, it caused distrust between the government and other historically involved parties. Wheat farming became the driving force behind the building of infrastructure and settlement patterns. As wheat was distributed to the rest of Canada from Prairie provinces like Saskatchewan and Alberta, kilometres of railways had to be built. This is a good example of how a significant investment was made to build crucial transportation infrastructure with the sole goal of facilitating the export of wheat.

Central Canada – Montreal and Toronto – which have been involved in fur trading for many years, have a more centralized structure because of how this business was operated. The fur trade was largely managed by big firms, and that played a role in shaping the big cities of central Canada into what they are today. 

Influence and Criticism of the Staple Thesis

The Harrold Innis’ Staples Thesis has surely influenced how Canada was perceived in terms of economic means through the centuries. However, the theory has its critics, who argue that the export of raw materials shouldn’t be a reason to delay the development of basic manufacturing and local services. Robin Neils expressed strong opinions about Innis’s thesis, explaining the development of Canada with a theory of his own that showcases the north-south relationships with the US.

Though Robin Neils apparently disagrees with Innis on some points, the Staples Thesis is still useful today. For example, historians successfully apply the core-periphery model of Innis to British Columbia, where Vancouver is where management comes from, while the surrounding underdeveloped regions are dependent on producing and exporting staple products.

Final Thoughts

Looking back on Canadian history gives us an insight into how and why the economy developed. The production and trade of raw goods have always been the core drivers of our economy, as Canada is naturally rich in resources. Though this delayed local manufacturing and services, it has determined to a large degree how the settlements would be laid out, how infrastructure would be built, and the kind of relationships that would be established. In other words, Harold Innis’s Staples Thesis served as a relevant socio-economic explanation for its time.

FAQ

With Whom Do We Associate the Staples Thesis?

The Staples Thesis is most commonly associated with Harrold Innis. He developed and popularized the model.

What Other Examples of Staple Thesis Are There in the World?

Historically speaking, Australia’s economy has been strongly dependent on the export of natural resources such as wool, wheat, and minerals. Thus, the country perfectly fits the description given in the Staples Thesis of Innis.