Every policy move should be “dual use,” solving a thorny problem while also helping to mend the country’s cleavages. Four areas present opportunities.
by Jennifer Ditchburn, Rachel Samson. Originally published on Policy Options
May 6, 2025
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There’s a term that policy types throw around when they’re talking about defence spending: “dual-use infrastructure.” The idea is that you want to build something to defend your country, but at the same time you’re building something civilians can use as well, like roads or ports.
After the most polarized election vote in nearly a century in terms of party preference, the new minority Liberal government should look at all its policy moves as “dual use.” They can tackle key policy challenges while simultaneously addressing the needs of Canadians who live in rural communities and in Western Canada – voters who want change and attention to their issues.
Beyond the bilateral negotiations with the United States that will be Job One, the new cabinet will have a monumental challenge ahead to decide how to prioritize its policy agenda.
Here are four areas where it can help to address cleavages across the country.
Zero in on the most vulnerable communities and their workers
This is not the time for “chicken in every pot” policies. Communities most vulnerable to U.S. tariffs tend to be smaller cities, rural towns or remote communities (Indigenous included), our analysis has shown.
Focusing on these communities is a smart strategy, not a handout. Most are not economically diverse, but they make many of the goods Canada exports. Facing an external threat that could upend their community is strong motivation to embrace the types of pivots the country needs to reduce our overall vulnerability to the whims of foreign leaders.
Local economic-development leaders can see where the best opportunities are for new export-oriented investments and understand what’s needed to unlock them. Those leaders should be supported by higher levels of government. Colleges and other learning institutions are often best equipped to partner with nearby communities and local businesses to help workers transition to new types of work.
The federal government has organizations that can be directed to support the effort, including the network of Community Futures Organizations across the country that helped to quickly roll out supports to businesses during the pandemic. If these organizations were given the mandate and resources to provide grants and loans for strategic economic development initiatives linked to diversifying Canada’s exports, they could leverage the power of communities and businesses across the country.
Develop an industrial policy that is truly strategic
To respond to the Trump tariffs, Canada will have to produce more eggs for more baskets. In other words – find new markets for its goods but also expand the types of goods that it exports.
Many areas of strategic interest are in rural Canada, the North, and the West. For example, global demand for critical minerals such as lithium, graphite and rare-earth elements is rising, and countries are realizing that the concentration of critical-mineral processing in China is a significant supply-chain risk. Canada has the minerals the world needs, but there are technical, financial, governance and infrastructure barriers to capturing the opportunity.
Clean electricity is also of strategic interest, particularly in Western, Northern and Atlantic Canada. We need far more power to capture opportunities in LNG exports, critical minerals, data centres, manufacturing, and possibly even power exports to Europe. If that power isn’t low emission, it will deter investors and derail climate-change goals. Governments will have to expand power supply and the transmission infrastructure to get it where it is needed while keeping electricity rates affordable. That is not an easy task.
Agriculture is also a huge opportunity, especially for rural and Western Canada, thanks to growing global demand and a Buy Canadian sentiment. Tearing down interprovincial barriers to trade will help, but there are constraints on the rail and port infrastructure needed to access international markets. It will also be challenging to expand food processing in ways that are cost competitive with U.S. suppliers.
The good news is that the federal government has the tools to galvanize large-scale private investment and help businesses overcome obstacles.
The Canada Infrastructure Bank is hitting its stride in securing major private investments and partnering with Indigenous communities. The Canada Growth Fund – the $15-billion federal fund run by PSP investments – has the financial tools to de-risk projects and unlock investment to decarbonize the economy. Adding a broader export-diversification imperative to their mandates would not be a significant stretch. Export Development Canada already has export diversification as part of its mandate and could be a collaborative partner to these organizations.
Address affordability issues in rural Canada
More than four million Canadians live in low-density areas – rural, remote, Indigenous, and northern communities – where personal vehicles are often the only transportation option. For those unable to drive due to cost, age, or ability, limited alternatives can deepen inequities, limit job and learning opportunities, and threaten health and safety.
A key way to address affordability issues is to tackle transportation. The federal government must join forces with provincial, territorial, and Indigenous partners to build a bold new vision for passenger travel in Canada – one that closes service gaps by strategically expanding and leveraging federal infrastructure funding.
The 2013 Vision for Transportation in Canada is long overdue for an update. It must go beyond the status quo to address critical service gaps, particularly in inter-regional bus and rail networks. Improved data collection is essential. Statistics Canada should do a national survey that reflects the full scope of household travel – not just commutes to work, but trips for health care, education, and connection to community. Without this data, meaningful policy is difficult.
Expanding infrastructure funding and expanding Via Rail’s routes, frequency, and affordability would provide critical lifelines between underserved communities. And to truly support rural mobility, the Rural Transit Solutions Fund must be expanded – not just to support the cost of new vans or minibuses, but also to cover essential operating costs like leased vehicles and salaries.
Nurture shared citizenship and belonging
The Trump tariffs have produced a rare wave of solidarity among Canadians, and it’s made all the more powerful by the fact that it has arisen from the grassroots up. There’s also a current of relief running through the country. People are reassured to see something that finally connects them to their neighbours and that amorphous feeling of Canadianness.
What can a federal government do to support a feeling of shared Canadian identity? It’s a complicated question that many organizations in Canada are anxious to explore.
One of the answers lies with the thoughtful integration of newcomers into the country – from recognizing their educational and professional credentials to making them feel included in our neighbourhoods, schools and workplaces. A healthy news-media environment is key, with robust outlets at the local, regional and national level.
And the role of other civil-society institutions is vitally important, including faith communities, the arts, sports, and volunteer organizations. More research, and ultimately action, is sorely needed in this area. The IRPP addressed some of these issues in its report on Canadian institutions and the COVID-19 pandemic.
Canada has always been a challenging country to govern, given our geography and relatively small population, the dynamics of a bilingual and bicultural system, and the original sin of not building the federation in partnership with Indigenous Peoples from the outset. But we can continue to beat the odds – and Donald Trump – by making sure policy decisions also strengthen the ties that bind us, whether they’re between urban-rural, east-west, north-south, or even just neighbour-to-neighbour.
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This article first appeared on Policy Options and is republished here under a Creative Commons license.