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Social receptivity analysis of foreign direct investment in British Columbia Sugiyama, Kayoko 1976

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e « i SOCIAL RECEPTIVITY ANALYSIS OF FOREIGN DIRECT INVESTMENT IN BRITISH COLUMBIA BY KAYOKO SUGIYAMA B.A., Sophia U n i v e r s i t y , 1971 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n the School of Community and Re g i o n a l P l a n n i n g We a c c e p t t h i s t h e s i s as conforming to the r e q u i r e d standard THE UNIVERSITY OF BRITISH COLUMBIA December ,1976 (G) Kayoko Sugiyama, 1976 In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s f o r an advanced degree at the U n i v e r s i t y o f B r i t i s h ' Co lumb ia , I ag ree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s tudy . I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y purposes may be g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . It i s u n d e r s t o o d that c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i thou t my w r i t t e n p e r m i s s i o n . Department o f Community and Regional Planning The U n i v e r s i t y o f B r i t i s h Co lumbia 2075 Wesbrook Place Vancouver, Canada V6T 1W5 Date <3)g<a^v-xW \^>. [G^Ko ABSTRACT T h i s t h e s i s i d e n t i f i e s s o c i a l a t t i t u d e s toward f o r e i g n d i r e c t investment (FI) i n the p r o v i n c e of B r i t i s h Columbia. H i s t o r i c a l l y , r e g i o n a l development i n B.C. has l a r g e l y depended upon the e x p l o i t a t i o n of n a t u r a l r e s o u r c e s , which a t t r a c t e d heavy i n f l o w s of f o r e i g n c a p i t a l to t h i s p r o v i n c e . The purpose of t h i s study i s to measure i n d i v i d u a l p r e f e r e n c e s i n B.C. s o c i e t y w i t h r e s p e c t to the i s s u e of F I , an important component of past economic development. " ' ._. A survey of o p i n i o n s was c a r r i e d out among s e l e c t e d s o c i e t a l sub-groups of the p o p u l a t i o n by means of a mailed q u e s t i o n n a i r e d u r i n g the summer of 1975. The a n a l y s i s r e v e a l e d t h a t the respondents were g e n e r a l l y w e l l informed and possessed a b a s i c understanding and knowledge about FI i n the p r o v i n c e . C o n t r i b u t i o n s of F I to p a s t r e g i o n a l economic development were h i g h l y v a l u e d , but almost h a l f of the respondents were not i n favour of f u r t h e r FI i n t h e i r r e g i o n s . T h i s r e s u l t i n d i c a t e s t h a t f o r a s i g n i f i c a n t p o r t i o n of B.C. r e s i d e n t s , a p a r t from p r o v i n c i a l and l o c a l b usiness groups, the present p a t t e r n of FI i s not s a t i s f a c t o r y . Since a m a j o r i t y of respondents p e r c e i v e d the p a s t b e n e f i t s i n terms of economic c r i t e r i a [(such as the p r o v i s i o n of employment and higher income l e v e l s ) , t h e i r r e l u c t a n c e to favour f u t u r e investment may be i n t e r p r e t e d i n d i f f e r e n t ways. One i n t e r p r e t a t i o n i s t h a t the people thought the economic b e n e f i t s generated by FI were not d i s t r i b u t e d e q u i t a b l y under the c u r r e n t investment p a t t e r n . Another i s t h a t B r i t i s h Columbians' development g o a l s have been changing w i t h more emphasis on non-economic c r i t e r i a . A f i n a l i n t e r p r e t a t i o n i s t h a t the r e s i d e n t s d i d not want any FI simply because they had secured t h e i r own jobs, which might have been d i r e c t l y or i n d i r e c t l y the r e s u l t of F I , and thus p e r c e i v e d the i s s u e from a s t r i c t l y i n d i v i d u a l w e l f a r e viewpoint. The a n a l y s i s of responses by economic sub-regions l e a d to the f o r m u l a t i o n of the f o l l o w i n g development paradigm: In the urban c e n t r e of Vancouver, and the r e p i d l y growing Okanagan and C e n t r a l sub-regions, as w e l l as i n the l e a s t developed North E a s t , r e c e p t i v e n e s s to FI were p o s i t i v e ; w h i l e i n the i n t e r i o r sub-regions (where the past FI i n f l o w s were the h e a v i e s t ) , the respondents' approval of f u t u r e FI was lower. R e g i o n a l a n a l y s i s a l s o r e v e a l e d t h a t r e c e p t i v e n e s s to f u t u r e FI was f r e q u e n t l y i n v e r s e l y r e l a t e d to the e x i s t i n g l e v e l of such investment i n the host r e g i o n . Unequal d i s t r i b u t i o n of b e n e f i t s a c c r u i n g from F I seemed to be one of the major causes of opinion;"discrepancies. The c a p i t a l - i n t e n s i v e nature of FI i n r e s o u r c e i n d u s t r i e s o f t e n exacerbated s p a t i a l and s o c i a l i n e q u i t i e s . Opinion d i f f e r e n c e s between the respondents from the m e t r o p o l i s and those from the h i n t e r l a n d , between business and union groups, between white c o l l a r and blue c o l l a r workers, and among v a r i o u s income groups, a l l suggest t h a t the problem of d i s t r i b u t i o n of i v b e n e f i t s i s a major f a c t o r determining t h e i r r e c e p t i v e n e s s to F I . The p r o v i s i o n of employment was a c r i t e r i o n f o r judging the b e n e f i t s of F I . The l e s s f a v o u r a b l e a t t i t u d e s i n d i c a t e d by women, people w i t h l e s s formal e d u c a t i o n , the younger g e n e r a t i o n , and the o l d time r e s i d e n t s i n the p r o v i n c e , may w e l l r e f l e c t the skewed d i s t r i b u t i o n of employment o p p o r t u n i t i e s generated by past F I p r o j e c t s . For the p u b l i c s e c t o r , s t r a t e d i e s f o r coping w i t h f u t u r e FI c o u l d be approached i n two ways: A n e g a t i v e approach suggests use of p u b l i c i n i t i a t i v e f o r r e d i r e c t i o n of investment p a t t e r n s by r e s t r i c t i v e measuresrsuch as an enforcement of FI g u i d e l i n e s . P o s i t i v e approach c e n t r e s on b e n e f i t and employ-ment r e d i s t r i b u t i o n p o l i c i e s . The government c o u l d a d v i s e f o r e i g n i n v e s t o r s to modify t h e i r investment s t r a t e g i e s . Recommendations are made to i n t e r n a l i z e t h e i r c o r p o r a t e p r o f i t s w i t h i n the p r o j e c t r e g i o n . The p u b l i c s e c t o r can a l s o generate i n i t i a t i v e s i n plann i n g f o r the r e g i o n s based on an i n c r e a s e d emphasis on non-economic f a c t o r s . V TABLE OF CONTENTS CHAPTER I CHAPTER I I CHAPTER I I I Page 1 1 2 4 INTRODUCTION 1.1. General P e r s p e c t i v e 1.2. Purpose of T h i s Study 1.3. D e f i n i t i o n of Terms 1.4. S t r u c t u r e o f A n a l y s i s and Hypotheses to ,Be Tes t e d 5 THE METHODOLOGY AND THE GENERAL CHARACTERISTICS OF THE RESPONDENTS 11 2.1. I n t r o d u c t i o n 11 2.2. Geographic and Demographic Scope of the Sample 12 2.3. C h a r a c t e r i s t i c s of the Sample 14 2.4. Q u e s t i o n n a i r e Return Rate and Pr o c e s s i n g o f the Data 16 2.5. General C h a r a c t e r i s t i c s of the Respondents 17 2.6. Summary 19 GENERAL ATTITUDES AMONG B.C. RESIDENTS TOWARD FOREIGN INVESTMENT 21 3.1. I n t r o d u c t i o n 21 3.2. Awareness of B.C.'s I n t e r n a t i o n a l Trade R e l a t i o n s h i p s 22 3.3. A t t i t u d e s toward F o r e i g n Investment i n General 2 4 3.4. A t t i t u d e s toward Japanese D i r e c t Investment 33 3.5. Summary and C o n c l u s i o n 43 vi, Page CHAPTER IV CROSS-SECTIONAL ANALYSIS OF OPINIONS 47, 4.1. I n t r o d u c t i o n 47 4.2. A t t i t u d i n a l D i f f e r e n c e s by Sex 50 4.3. A t t i t u d i n a l D i f f e r e n c e s by the Length of Residence i n B.C. 53 4.4. R e c e p t i v i t y D i f f e r e n c e s by Age Group 58 4.5. The Impact of Education,Income,and Nature of Jobs on R e c e p t i v i t y 61 4.5.1. I n f l u e n c e of E d u c a t i o n a l Background on Opinions 61 4.5.2. Income D i f f e r e n c e s 65 4.5.3. A n a l y s i s by Nature of Jobs 66 4.6. Summary and C o n c l u s i o n 70 CHAPTER V RECEPTIVITY DIFFERENCES AMONG B.C. SUB-REGIONS 7 3 5.1. I n t r o d u c t i o n 73 5.2. M e t r o p o l i s v s . H i n t e r l a n d Approach 74 5.3. D i f f e r e n c e s i n A t t i t u d e s by Sub-Region 80 5.4. The R e l a t i o n s h i p between the amount of Investment and Receptiveness 84 5.5. Summary and C o n c l u s i o n 8 9 CHAPTER VI FUTURE ROLE OF FOREIGN DIRECT INVESTMENT IN BRITISH COLUMBIA - CONCLUSIONS AND IMPLICATIONS 91 6.1. Synoposis of Major F i n d i n g s 91 6.2. S i g n i f i c a n c e and I m p l i c a t i o n s o f the F i n d i n g s 94 6.3. Recommendations f o r the P r o v i n c i a l Government and F o r e i g n I n v e s t o r s 96 6.3.1. Recommendations f o r the P r o v i n c i a l Government 96 6.3.2. Recommendations f o r F o r e i g n I n v e s t o r s £ 8. 6.4. C o n c l u s i o n 102 v i i PAGE LITERATURE CITED 104 SELECTED READINGS 105 APPENDICES 109 Appendix I B.C. Survey of I n t e r n a t i o n a l Investment 109 Appendix I I Per C a p i t a Value of F a c t o r y Shipments i n B.C. Economic Sub-Regions, 1971 113 v i i i LIST OF TABLES PAGE I Q u e s t i o n n a i r e Return Rate 16 I I Age D i s t r i b u t i o n of Respondents 17 I I I Ranking of Importers of B.C. N a t u r a l Resources 23 IV Responses to Issue - "There i s too much f o r e i g n c a p i t a l being i n v e s t e d i n B.C." 2 6 V Responses to Issue - "B.C. needs more investment from f o r e i g n c o u n t r i e s . " 26 VI Nature of P e r c e i v e d C o n t r i b u t i o n s of FI 31. VII Nature of P e r c e i v e d C o n t r i b u t i o n s - Sub-Group 31 Responses V I I I Nature of P e r c e i v e d Negative E f f e c t s of FI 32 IX Nature of P e r c e i v e d Negative E f f e c t s - Sub-Group Responses 3 2 X Respondents' P e r c e p t i o n of B.C. I n d u s t r i e s i n Which Japanese C a p i t a l Is Involved 37 XI Responses to Issue - "Japanese investment w i l l i n c e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e . " 3 9 XII R e a c t i o n to F I , Present and F u t u r e : By Male and Female Respondents 51 X I I I R e a c t i o n to FI and Japanese Investment: By the Length of Residence i n B.C. 56 XIV R e a c t i o n to Future Japanese Investment: By Age Group 62 XV Reaction to F I , and Japanese Investment, Present and F u t u r e : By E d u c a t i o n a l Background 64 XVI R e a c t i o n to FI and Japanese Investment: By Income L e v e l s 66 PAGE XVII Re a c t i o n to FI and Japanese Investment: By Nature of Job 6 9 XVIII R e c e p t i v i t y D i f f e r e n c e s between Greater Vancouver and the Rest of B.C. 11 XIX P e r c e i v e d C o n t r i b u t i o n s and Negative E f f e c t s of F I : M e t r o p o l i s vs H i n t e r l a n d 79-" XX Reaction to Japanese Investment: M e t r o p o l i s vs H i n t e r l a n d 80 XXI D i f f e r e n c e s i n A t t i t u d e s toward F I : By Economic Sub-Regions 82 XXII D i f f e r e n c e s i n A t t i t u d e s toward F I : By S e l e c t e d Sub-Regions 87 X LIST OF FIGURES PAGE 1. N a t i o n a l R e c e p t i v i t y to F o r e i g n E n t e r p r i s e : The U-Curve Hypothesis 10 2. B r i t i s h Columbia Economic Regions 13 3. Toward Future Investment from F o r e i g n C o u n t r i e s 45 4. "B.C. needs more investment from f o r e i g n C o u n t r i e s ; " : By Age Group 58 5. "B.C.; .meeds more investment from f o r e i g n c o u n t r i e s . " : By Income L e v e l s 65 6. "B.C. needs more investment from f o r e i g n c o u n t r i e s . " : By Economic Sub-Region 83 x i ACKNOWLEDGEMENTS I wish to express my thanks to my a d v i s o r , Dr. Douglas Webster f o r h i s i n v a l u a b l e a d v i c e and the many hours spent i n e d i t i n g and commenting upon the m a t e r i a l i n the t h e s i s . My thanks are a l s o extended to Dr. J.W.C. Tomlinson of the D i v i s i o n of I n t e r n a t i o n a l Business S t u d i e s , who gave me the o p p o r t u n i t y to c a r r y out t h i s study and a c t e d as my second a d v i s o r . His suggestions i n c l a r i f y i n g p a r t s of t h i s t h e s i s were most h e l p f u l . I am indebted to P r o f e s s o r Brahm Wiesman f o r h i s advice and encouragement. I am a l s o indebted to Mrs. S y l v i a W i l l i e of the Department of Commerce and Business A d m i n i s t r a t i o n f o r her h e l p i n the p r e p a r a t i o n of the survey q u e s t i o n n a i r e and a l s o w i t h the data a n a l y s i s . My a p p r e c i a t i o n goes to Mr. David M a r s h a l l who helped me c o r r e c t E n g l i s h . T h i s t h e s i s would not have been completed without the c o o p e r a t i o n of these people. 1 CHAPTER I INTRODUCTION T h i s t h e s i s i d e n t i f i e s s o c i a l a t t i t u d e s toward f o r e i g n d i r e c t investment (FI) i n the p r o v i n c e of B r i t i s h Columbia.^" A s u b s t a n t i v e p a r t of t h i s study i s devoted to s o c i a l recep-t i v i t y a n a l y s i s of F I , based on a p u b l i c o p i n i o n survey conducted by P r o f e s s o r J.W.C. Tomlinson of the D i v i s i o n of I n t e r n a t i o n a l Business S t u d i e s a t the U n i v e r s i t y of B r i t i s h Columbia and the author d u r i n g the summer o f 1975. C o n c e i v a b l y the r e s u l t s c o u l d be u t i l i z e d as a r e f e r e n c e f o r f u r t h e r comprehensive r e s e a r c h of t h i s r e g i o n a l , y e t a t the same time, o i n t e r n a t i o n a l i s s u e . 1.1. General P e r s p e c t i v e FI i n the form of m u l t i n a t i o n a l business o p e r a t i o n s i s a r e c e n t g l o b a l phenomenon. L i t e r a t u r e on FI has r e c o g n i z e d t h a t Canada has h i s t o r i c a l l y absorbed the l a r g e s t a b s o l u t e amount of F I among a l l the n a t i o n s . As of 1967, 57 p e r c e n t of a l l manufacturing, 74 percent of a l l petroleum-natural gas, and 65 percent of other mining and s m e l t i n g i n d u s t r i e s i n Canada were c o n t r o l l e d by n o n - r e s i d e n t s , predominantly by Americans (Grey Report, 1972). Since the l a t e 1960s, numerous s t u d i e s c o ncerning FI have been p u b l i s h e d , making the Canadian p u b l i c aware of the problems accompanying a powerful f o r e i g n i n f l u e n c e i n t h e i r economy. ^Throughout the study, f o r e i g n d i r e c t investment w i l l be d e s i g n a t e d by the a b b r e v i a t i o n FI or f o r e i g n investment. 2 Most l i t e r a t u r e on t h i s s u b j e c t r e v i e w s t h e s o c i o -e c o n o m i c e f f e c t s o f F I f r o m a m a c r o - e c o n o m i c s t a n d p o i n t , t h a t i s , i t s c o n t r i b u t i o n s t o t h e GNP, b a l a n c e o f payment e f f e c t s , t a x a t i o n and t a r i f f p o l i c i e s , as w e l l as d o m e s t i c s a v i n g s and c o n s u m p t i o n p a t t e r n s . A l t h o u g h F I i s u s u a l l y p e r c e i v e d as a n i n s t r u m e n t f o r n a t i o n a l and i n t e r n a t i o n a l e c o n o m i c d e v e l o p m e n t , i t c o u l d a l s o be a n e f f e c t i v e c a t a l y s t f o r r e g i o n a l d e v e l o p m e n t w i t h i n Canada, p r o v i d e d t h a t t h e i n t e r e s t s o f f o r e i g n i n v e s t o r s c o i n c i d e w i t h t h e d e v e l o p m e n t o b j e c t i v e s o f a r e g i o n . I n o r d e r t o d e t e r m i n e w h e t h e r o r n o t t h i s i s t h e c a s e , i t i s n e c e s s a r y t o u n d e r s t a n d t h e i m p a c t s o f F I a t t h e r e g i o n a l l e v e l r a t h e r t h a n e x a m i n i n g t h e i m p a c t on t h e economy as a w h o l e . 1.2. P u r p o s e o f T h i s S t u d y I n B r i t i s h C o l u m b i a , e c o n o m i c e v a l u a t i o n o f F I a t t h e p r o j e c t l e v e l has b e e n u n d e r t a k e n b o t h i n t h e p u b l i c and p r i v a t e s e c t o r s . I f , however, t h e c r i t e r i a f o r a s s e s s i n g t h e e f f e c t s o f F I a r e n o t o n l y e c o n o m i c , b u t a l s o p o l i t i c a l and s o c i a l , t h e s e p r e v i o u s s t u d i e s were i n t h e m s e l v e s n o t s u f f i c i e n t . The p u r p o s e o f t h i s s t u d y i s t o f i l l a gap by e x a m i n i n g t h e s o c i a l a t t i t u d e s t o w a r d f o r e i g n investment,, by means o f a p u b l i c o p i n i o n s u r v e y . S i n c e no p r e v i o u s a t t e m p t was made t o measure i n d i v i d u a l p r e f e r e n c e s i n B.C. s o c i e t y w i t h r e s p e c t t o t h i s i s s u e , t h e r e s u l t s s h o u l d p r o v i d e new a t t i t u d i n a l d a t a r e l e v a n t t o p o l i c y makers f o r m u l a t i n g d e v e l o p m e n t s t r a t e g i e s f o r t h e p r o v i n c e . 3 B r i t i s h Columbia p r o v i d e s a good s e t t i n g f o r t h i s par-t i c u l a r r e s e a r c h because; (1) The pr o v i n c e has h i s t o r i c a l l y r e l i e d on n a t u r a l resource i n d u s t r i e s f o r i t s economic growth. (2) The c a p i t a l - i n t e n s i v e nature o f resource e x p l o i t a t i o n has i n c l u d e d l a r g e i n f l o w s o f f o r e i g n c a p i t a l t o f i n a n c e resource development. ( E a r l y i n f l o w s o f European c a p i t a l were e v e n t u a l l y d i s p l a c e d by a s t e a d i l y i n c r e a s i n g American investment. From the mid-1960s, the Japanese bus i n e s s s e c t o r s t a r t e d t o i n v e s t ! i n B.C. n a t u r a l resource i n d u s t r i e s i n order t o secure a supply of raw m a t e r i a l s . ) (3) Regional d i s p a r i t i e s , i n terms of r e -g i o n a l c o n c e n t r a t i o n of income and p o p u l a t i o n , w i t h i n the pro v i n c e i s a major development problem. C o n d i t i o n (1) r a i s e s the q u e s t i o n of e q u i t a b l e vs e f f i c i e n t a l l o c a t i o n and d i s t r i b u t i o n o f n a t u r a l r e s o u r c e s . Today when the whole world i s concerned with the s c a r c i t y o f primary r e s o u r c e s , e s p e c i a l l y of non-renewable ones, economic e f f i c i e n c y c r i t e r i a which have been dominating p r o v i n c i a l economic development p l a n n i n g may not be as overwhelmingly dominant as they once were. The q u e s t i o n of "development f o r whom?" should be re-examined i n or d e r to achieve more s o c i a l l y e q u i t a b l e a l l o c a t i o n . When c o n d i t i o n (2) i s added to the above s i t u a t i o n , i t cr e a t e s another dimension t o t h i s problem. I f we assume t h a t the c a p i t a l - i n t e n s i v e nature o f past FI p r o j e c t s o f t e n exacer-bated s p a t i a l and s o c i a l i n e q u i t i e s , t h e r e i s a need t o i d e n t i f y which people have b e n e f i t e d and which segments o f the p o p u l a t i o n have borne the c o s t s o f development. 4 C o n d i t i o n ( 3 ) , r e g i o n a l d i s p a r i t i e s w i t h i n B.C., i s l a r g e l y the r e s u l t o f the economic growth process i t s e l f . F uture F I might occur i n such a way t h a t i t would narrow some of the d i s p a r i t i e s among the sub-regions, i f c a r e f u l r e d i r e c t i o n o f F I takes p l a c e . Althoughtthxs i s s u e c o u l d e a s i l y be t a c k l e d from a p u r e l y economic p e r s p e c t i v e (such as r e g i o n a l employment and income i n c r e a s e a c c r u i n g from F I ) , u n l e s s p u b l i c d e c i s i o n s are based on i n f o r m a t i o n concerning p u b l i c p r e f e r e n c e s and the r e c e p t i v e n e s s to f u t u r e F I i n t h e i r r e g i o n s , p o l i c y plans w i l l not r e f l e c t B.C. r e s i d e n t s ' r e a l needs and wants from F I . Based on the qu e s t i o n s r a i s e d , the study focuses on i d e n -t i f y i n g the p r e f e r e n c e p a t t e r n s of the p o p u l a t i o n , both s p a t i a l l y and a c c o r d i n g t o s o c i e t a l sub-groups. Since growing investment from Japan has c r e a t e d c o n s i d e r a b l e p o l i t i c a l c o n t r o v e r s y , a s p e c i a l emphasis was made to s o l i c i t p u b l i c o p i n i o n toward Japanese investment. 1.3. D e f i n i t i o n of Terms "F o r e i g n D i r e c t Investment" (FI) In t h i s t h e s i s , the term " f o r e i g n d i r e c t investment" r e f e r s to a l l investment made by the p r i v a t e c o r p o r a t i o n s from f o r e i g n c o u n t r i e s . F I i s used here i n the broadest sense to cover not onl y f i n a n c i a l flows between c o u n t r i e s , but a l s o the i n t e r n a t i o n a l t r a n s m i s s i o n o f a l l r e s o u r c e s , t h a t i s , c a p i t a l , l a b o u r , technology, as w e l l as managerial and e n t e r p r e n e u r i a l s k i l l s . 5 " M u l t i n a t i o n a l C o r p o r a t i o n " The t e r m " m u l t i n a t i o n a l c o r p o r a t i o n " r e f e r s t o a l l e n t e r p r i s e s w h i c h c o n t r o l a s s e t s - f a c t o r i e s , m i n e s , s a l e s o f f i c e s and s o f o r t h - i n two o r more c o u n t r i e s ( U n i t e d N a t i o n s , 1 9 7 3 ) . M u l t i n a t i o n a l c o r p o r a t i o n s a r e a m a j o r c a r r i e r o f and o f t e n a s s o c i a t e d w i t h F I . " R e g i o n " The t e r m " r e g i o n " r e f e r s t o v a r i o u s g e o g r a p h i c a r e a s w i t h i n t h e p r o v i n c e o f B r i t i s h C o l u m b i a . F o r t h e a n a l y t i c a l p u r p o s e o f t h i s s t u d y , n i n e B r i t i s h C o l u m b i a e c o n o m i c r e g i o n s as d e f i n e d by t h e D e p a r t m e n t o f E c o n o m i c D e v e l o p m e n t a r e u s e d 2 as s u b - r e g i o n a l b o u n d a r i e s . 1.4 S t r u c t u r e o f A n a l y s i s and H y p o t h e s e t o Be T e s t e d I t i s h y p o t h e s i z e d t h a t i n d i v i d u a l s ' p e r c e p t i o n s o f F I w i l l v a r y , d e p e n d i n g on t h e d e g r e e o f t h e i r o c c u p a t i o n a l i n v o l -vement w i t h f o r e i g n i n v e s t o r s , p r o x i m i t y t o F I p r o j e c t s , t h e l e n g t h o f t i m e t h e y have o b s e r v e d F I i n t h e i r r e g i o n , o r t h e i n d i v i d u a l s ' w o r l d v i e w o r v a l u e s . R e c o g n i z i n g t h e s e p e r c e p -t u a l d i f f e r e n c e s , r e c e p t i v e n e s s t o F I among B.C. r e s i d e n t s i s a p p r o a c h e d f r o m two d i f f e r e n t d i m e n s i o n s i n t h i s s t u d y . T h e s e a p p r o a c h e s a r e c a l l e d r e s p e c t i v e l y " d e m o g r a p h i c c r o s s -s e c t i o n a l " , and " s p a t i a l " . I t s h o u l d be n o t e d t h a t t h e s e e c o n o m i c r e g i o n s u s e d i n t h i s s t u d y a r e no l o n g e r p r e s e n t B.C. e c o n o m i c r e g i o n s . 6 The demographic cross-sectional approach i d e n t i f i e s whether some common underlying t r a i n of thought v i s a v i s FI predominates among people i n various cross-sections of the population. The population i s f i r s t divided into two groups: potential opinion leaders i n B.C. communities and the general public. Since the amount of knowledge or information concerning FI has an influence on opinion formation, and i t i s assumed that l o c a l e l i t e s have easier access to information and more opportunities to be d i r e c t l y involved with foreign investors than the general public, i t i s hypothesized that a d i s c r e -pancy of opinions w i l l e x i s t between the l o c a l opinion leaders group and the members of the general public. The FI decision-making process i s highly centralized among senior l e v e l s of governments, both federal and p r o v i n c i a l , and a few multinational corporations. The nature of t h i s decision-making process i s expected to create further opinion v a r i a t i o n between l o c a l community e l i t e s and the business and p o l i t i c a l c i r c l e i n the metropolis, where the aggregate effects of investment decisions on the p r o v i n c i a l economy are more immediately perceived. The f a c t that most economic analyses, both public and private, have i d e n t i f i e d net economic benefits from FI i n Canada suggests that metropolitan business leaders, who are l i k e l y to be f a m i l i a r with these studies, would be i n favour of FI. Among l o c a l e l i t e s , i t i s not d i f f i c u l t to predict that business leaders w i l l be i n favour of FI i n t h e i r regions since they perceive that i t w i l l lead to an increase i n the 7 volume of t h e i r b u s i n e s s . L o c a l bureaucrats and l o c a l p o l i t i c i a n s are expected t o be i n a n e u t r a l p o s i t i o n due 3 t o t h e i r l a c k of access t o c e n t r a l decision-making p r o c e s s e s . Academics are expected to be more concerned w i t h s o c i a l and c u l t u r a l impacts o f FI on l o c a l communities than the g e n e r a l p u b l i c . I t i s expected t h a t a wide spectrum of p r e f e r e n c e s w i l l e x i s t among v a r i o u s groups of the B.C. p o p u l a t i o n , w i t h p r o v i n c i a l b u s i n e s s l e a d e r s and labour groups occupying opposing p o l a r p o s i t i o n s i n terms of a t t i t u d e s t o F I . The a n a l y s i s i s extended to observe p r e f e r e n c e p a t t e r n s among other c r o s s ^ s e c t i o n s of the p o p u l a t i o n , i d e n t i f i e d by sex, age, l e n g t h of r e s i d e n c e i n the p r o v i n c e , income, education and nature of j o b . Because the investmentpattern i n the past has tended t o b e n e f i t male, white c o l l a r , and hig h income groups i n the p o p u l a t i o n , i t i s hypothesized t h a t other s o c i e t a l groups w i l l be l e s s r e c e p t i v e to f u t u r e F I . The s p a t i a l approach e x p l o r e s whether t h e r e are o p i n i o n d i f f e r e n c e s among geographic areas of the p r o v i n c e . Responses are d i v i d e d i n t o those from the Lower Mainland and those from the r e s t of the p r o v i n c e i n o r d e r to d i s c o v e r whether there i s any d i s t i n c t d i f f e r e n c e of o p i n i o n between the r e s i d e n t s o f the m e t r o p o l i s and those of the h i n t e r l a n d . Past experience w i t h f o r e i g n investment i n d i c a t e s t h a t F I p r o j e c t s have been The author assumed t h a t the people who h e l d the p u b l i c o f f i c e would respond w i t h i n t h e i r c a p a c i t y as a " p u b l i c " person r a t h e r than responding as a p r i v a t e c i t i z e n . 8 f r e q u e n t l y conceived from the stan d p o i n t of the p r o j e c t ' s aggregate c o n t r i b u t i o n t o p r o v i n c i a l economic development. The economic growth process has r e s u l t e d i n c o n c e n t r a t i o n of t e r t i a r y a c t i v i t i e s i n the Lower Mainland, r e i n f o r c i n g the m e t r o p o l i s - h i n t e r l a n d s t r u c t u r e . As many development economists e x p l a i n , any development p r o j e c t which succeeds i n a t t r a c t i n g an i n d u s t r y t o the r e g i o n 4 generates a giv e n i n c r e a s e i n r e g i o n a l export s e c t o r income. T h i s i n j e c t i o n of export income becomes a source of i n c r e a s e d demand f o r output i n l o c a l consumer s e c t o r s . The t o t a l income due to these consumer s e c t o r expansions p l u s the autonomous export s e c t o r expansion i s the combined d i r e c t and i n d i r e c t b e n e f i t o f the development p r o j e c t . In B r i t i s h Columbia, t h i s c h a i n of impacts, d e s c r i b e d as the export base m u l t i p l i e r pro-cess, o f t e n remains minimal i n many resource f r o n t i e r com-mu n i t i e s , mainly due to h i g h demand leakage from the r e g i o n a l income stream: Since the p r o p o r t i o n of r e g i o n a l income t h a t i s spent o u t s i d e the r e g i o n ( n o n - l o c a l m u l t i p l i e r ) tends to be l a r g e i n the resource h i n t e r l a n d , many development p r o j e c t s have minimal impacts on r e g i o n a l growth i n the long run. T h i s economic s t r u c t u r e of resource r e g i o n s suggests another h y p o t h e s i s : t h a t the people o u t s i d e the m e t r o p o l i t a n area w i l l be l e s s r e c e p t i v e t o f u t u r e FI i n t h e i r r e g i o n s . Authors such as Ti e b o u t , Miernyk, I s a r d , Weiss, and S i l v e r s p u b l i s h e d r e p r e s e n t a t i v e s t u d i e s r e g a r d i n g r e g i o n a l economic s t r u c t u r e . 9 The s p a t i a l approach i s f u r t h e r extended to observe i f there i s any c o r r e l a t i o n between the stage of development of a r e g i o n and the r e c e p t i v i t y to f o r e i g n e n t e r p r i s e . Robock and Simmonds(1973) presented a U-curve h y p o t h e s i s w i t h regard to the r e l a t i o n s h i p between the stage of development of a country and the n a t i o n a l r e c e p t i v i t y to f o r e i g n e n t e r p r i s e . When a n a t i o n has low l e v e l s of income and modest or n o n e x i s t e n t manufacturing, mining, or other modern busi n e s s s e c t o r s , the n a t i o n may be so anxious to move ahead t h a t i t v a l u e s h i g h l y any type o r amount o f f o r e i g n p r i v a t e investment. A t an i n t e r m e d i a t e stage of development i n which an indigenous business s e c t o r has begun to emerge, a n a t i o n may a s s i g n lower v a l u e s to the b e n e f i t s and h i g h e r v a l u e s t o the c o s t elements o f f o r e i g n b u s i n e s s p r o j e c t s In c o u n t r i e s a t a r e l a t i v e l y advance stage of development, r e c e p t i v i t y to f o r e i g n e n t e r p r i s e may r i s e a g a i n to a h i g h l e v e l , p a r t i c u l a r l y i f domestic e n t e r p r i s e has expanded r a p i d l y enough so t h a t major f o r e i g n b u s i n e s s s t i l l r e p r e s e n t a r e l a t i v e l y small p a r t of the t o t a l n a t i o n a l economy and of a p a r t i c u l a r s e c t o r . (Robock and Simmonds,197 3, p.196.) They i n d i c a t e the r e l a t i o n s h i p between a country's stage of development and i t s r e c e p t i v i t y to f o r e i g n e n t e r p r i s e might be d e s c r i b e d as a U-shape curve (as shown on F i g . l ) w i t h the l e v e l of r e c e p t i v i t y p l o t t e d on the v e r t i c a l a x i s and the country's stage of development on the h o r i z o n t a l a x i s . An attempt i s made i n t h i s study to observe whether a s i m i l a r r e l a t i o n s h i p e x i s t s among economically i d e n t i f i a b l e sub-regions. There are nine of these i n B.C. and they 10 r e p r e s e n t r e g i o n s a t v a r i o u s stages of economic development. I t i s hypothesized t h a t t h e r e w i l l be some c o r r e l a t i o n between the stage of development of each sub-region and the l e v e l of r e c e p t i v i t y to F I , which resembles the U-curve d e s c r i b e d below. FIGURE 1 N a t i o n a l R e c e p t i v i t y to F o r e i g n E n t e r p r i s e : The U-Curve Hypothesis Low u Low High Country's Stage of Development These two approaches t o the a n a l y s i s o f s o c i a l a t t i t u d e s toward e x i s t i n g and incoming f o r e i g n investment should r e v e a l c e r t a i n s o c i a l as w e l l as geographic p a t t e r n s of p r e f e r e n c e among the p o p u l a t i o n . I t i s hoped t h a t the r e s u l t s w i l l p r o v i d e a p o l i c y framework f o r s t r a t e g i c development p l a n n i n g which would i n v o l v e FI as a development generator. 11 CHAPTER I I THE METHODOLOGY AND THE GENERAL CHARACTERISTICS OF THE RESPONDENTS 2.1. I n t r o d u c t i o n T h i s chapter p r e s e n t s the methodology used i n t h i s study and the g e n e r a l c h a r a c t e r i s t i c s of the people who responded to the survey. A survey o f o p i n i o n s concerning f o r e i g n i n v e s t -ment i n B.C. was c a r r i e d out among s e l e c t e d segments of the B.C. p o p u l a t i o n by means of a mai l e d q u e s t i o n n a i r e d u r i n g the summer of 1975. The q u e s t i o n n a i r e format was designed to i d e n t i f y B.C. r e s i d e n t s ' o p i n i o n s and p r e f e r e n c e s r e g a r d i n g e x i s t i n g and incoming f o r e i g n investment i n the p r o v i n c e i n ge n e r a l and Japanese p r i v a t e investment i n p a r t i c u l a r . A copy of the q u e s t i o n n a i r e prepared f o r the survey i s attached as an appendix. Since the o b j e c t i v e s of t h i s survey were to o b t a i n as d i v e r s e a sample as p o s s i b l e throughout the p r o v i n c e , m a i l d i s t r i b u t i o n .was used. ' A l t h o u g h - a l t e r n a t i v e * survey methods such as i n t e r v i e w i n g , o b s e r v a t i o n , town meetings and telephone i n t e r v i e w i n g were c o n s i d e r e d , they were e i t h e r too c o s t l y or more time consuming than m a i l q u e s t i o n n a i r e s . Even though t h i s method had obvious l i m i t a t i o n s , i . e . non-response, no op p o r t u n i t y to supplement the respondent's answers by obser-v a t i o n a l data, no o p p o r t u n i t y to probe beyond the g i v e n answer, i t was b e l i e v e d t h a t d e l i b e r a t e d e s i g n of the q u e s t i o n n a i r e c o u l d overcome some of these l i m i t a t i o n s . 12 Throughout the survey, terms'- f o r e i g n investment and i n t e r n a t i o n a l investment r e f e r r e d to a l l investment made by the p r i v a t e c o r p o r a t i o n s from f o r e i g n c o u n t r i e s f o r d i r e c t investment purposes. Japanese investment r e f e r r e d to i n f l o w s of c a p i t a l , l a b o u r , technology, as w e l l as managerial s k i l l s o r i g i n a t i n g i n Japan and c o n t r o l l e d by Japanese n a t i o n a l s . 2 . 2 . Geographic and Demographic Scope of the Sample The sample was taken from a l l p a r t s of the p r o v i n c e . " B r i t i s h Columbia Economic Regions" as d e f i n e d by the Depart-ment of Economic Development were used as s u b - r e g i o n a l boundaries. (See F i g u r e 2 .) Major c i t i e s i n each sub-region (which are l i s t e d below), were sampled f o r the survey. Sub-region 1 . E a s t Kootenay 2 . C e n t r a l and West Kootenay 3. Okanagan 4. Thompson 5. Greater Vancouver 6. Vancouver I s l a n d 7. C e n t r a l 8. North East 9. North West Ci t i e s " , M u f f l e i p a l i t ' l e s arid Towns Cranbrook, Kimberley, F e r n i e , Spar wood,, Nelson, T r a i l Vernon, Kelowna, P e n t i c t i o n Kamloops A l l c i t i e s and m u n i c i p a l i t i e s i n the Greater Vancouver R e g i o n a l D i s t r i c t V i c t o r i a , Campbell R i v e r , Nanaimo, Po r t A l b e r n i P r i n c e George, Quesnel Dawson Creek, F o r t S t . John P r i n c e Rupert, K i t i m a t , T e r r a c e 13 DEPARTMENT OF INDUSTRIAL DEVELOPMENT. TRADE. AND COMMERCE PARLIAMENT BUILDINGS VICTORIA. BRITISH COLUMBIA 14 The number of q u e s t i o n n a i r e s to be mailed was estimated to cover approximately 0.1% of the p o p u l a t i o n of i n c o r p o r a t e d m u n i c i p a l i t i e s i n the p r o v i n c e , estimated a t 2,1 m i l l i o n as of December, 197 4 (Municipal S t a t i s t i c s i n c l u d i n g Regional D i s t r i c t , 1975). 1,994 q u e s t i o n n a i r e s were ma i l e d to r e s i d e n t s i n the s e l e c t e d c i t i e s and m u n i c i p a l i t i e s . The d i s t r i b u t i o n was s t r a t i f i e d a c c o r d i n g to the p o p u l a t i o n s i z e o f each c i t y and r e g i o n a l c e n t r e . 2.3. C h a r a c t e r i s t i c s of the. Sample The sample c o n s i s t e d of two major groups of B.C. r e s i d e n t s . A separate sub-sample was taken from people who were l i k e l y to be p o t e n t i a l o p i n i o n l e a d e r s r e g a r d i n g matters such as f o r e i g n investment i n t h e i r community or r e g i o n . The other sub-sample c o n s i s t e d of a " g e n e r a l p u b l i c " group, s e l e c t e d on a random sampling b a s i s . Opinion Leaders were s e l e c t e d from f i v e d i f f e r e n t s o c i a l c l a s s i f i c a t i o n s : business l e a d e r s , m u n i c i p a l o f f i c i a l s , union r e p r e s e n t a t i v e s , p r e s i d e n t s of l o c a l chambers of commerce, and s c h o o l t e a c h e r s . The s c r e e n i n g process was designed to r e p r e s e n t the s o c i a l p o i n t s of view o f v a r i o u s economic and p o l i t i c a l - a d m i n i s t r a t i v e groups i n s e l e c t e d l o c a l i t i e s . Respondents i n f i v e sub-groups were chosen i n the f o l l o w i n g manner: "Business Leaders" (95)"*": P r e s i d e n t s of c o r p o r a t i o n s w i t h head-q u a r t e r s i n B.C. were s e l e c t e d from the D i r e c t o r y of D i r e c t o r s ,  1974, P u b l i c s e c t o r f i r m s and s u b s i d i a r i e s or a f f i l i a t e s o f ''"Number i n b r a c k e t s i n d i c a t e the number sampled i n each sub-group. 15 f o r e i g n companies were excluded from the sample. "Mun i c i p a l O f f i c i a l s " (123): Names o f m u n i c i p a l o f f i c i a l s were o b t a i n e d from B r i t i s h Columbia M u n i c i p a l O f f i c i a l s ,  A p r i l 1 9 7 5 , d i s t r i b u t e d by the Department of M u n i c i p a l A f f a i r s . Q u e s t i o n n a i r e s were sent t o mayors or s e n i o r e l e c t e d o f f i c i a l s , p r i n c i p a l appointed o f f i c e r s and c l e r k s of the c i t i e s , towns and r e g i o n a l d i s t r i c t s s e l e c t e d f o r the survey. "Labour Union R e p r e s e n t a t i v e s " (99): Names of p r e s i d e n t s or s e n i o r r e p r e s e n t a t i v e s o f labour unions based i n B.C. were chosen from the B.C. Labour D i r e c t o r y , 1974, d i s t r i b u t e d by the Department of Labour. "Chamber of Commerce P r e s i d e n t s " (117): A l l p r e s i d e n t s of l o c a l chambers of commerce i n B.C. were i d e n t i f i e d from the L i s t o f Key Contacts i n Chambers of Commerce, Boards of Trade, c i r c u l a t e d by the B r i t i s h Columbia Chamber of Commerce. "School Teachers" (124): P r i n c i p a l s of elementary and secondary schools from 8 9 B r i t i s h Columbia s c h o o l d i s t r i c t s were randomly sampled from the L i s t of Schools i n B r i t i s h Columbia w i t h  Names and Addresses of S e c r e t a r y - T r e a s u r e r s and P r i n c i p a l s or  Head Teachers, 1974-75, p u b l i s h e d by the Department of Educa t i o n . In t o t a l , 558 q u e s t i o n n a i r e s were sent out to people i n these f i v e sub-groups as r e p r e s e n t i n g p o t e n t i a l o p i n i o n l e a d e r s i n the p r o v i n c e . A "general p u b l i c " group was s e l e c t e d from telephone d i r e c t o r i e s of r e l e v a n t c i t i e s and r e g i o n s , u s i n g random 16 numbers to i d e n t i f y s p e c i f i c respondents.^ The t o t a l number of q u e s t i o n n a i r e s m a i l e d to people i n t h i s sub^sample was 1,4 36. 2.4. Q u e s t i o n n a i r e Return Rate and P r o c e s s i n g of the Data 487 people responded to the survey and the r e t u r n r a t e was 24%. The a n a l y s i s was c a r r i e d out.with 478 usable q u e s t i o n n a i r e s r e c e i v e d by J u l y 31, 1975. Table I shows the r e t u r n s f o r a l l groups surveyed. TABLE I Q u e s t i o n n a i r e Return Rate Q u e s t i o n n a i r e s Number of Return Sent Returns Rate Opinion Leaders Business Leaders 95 33 35% M u n i c i p a l O f f i c i a l s 123 30 24% Labour Union R e p r e s e n t a t i v e s 99 20 20% Chamber of Commerce P r e s i d e n t s 117 54 46% Teachers 124 61 49% Sub-Total 558 198 35% General P u b l i c 1,436 289 20% Grand T o t a l 1,944 487 24% Returned q u e s t i o n n a i r e s were coded and processed u s i n g the SPSS ( S t a t i s t i c a l Package f o r S o c i a l Sciences) computer programme package. A l l the c r o s s - t a b u l a t i o n s necessary f o r the a n a l y s i s were produced by the same package programme. 2 I t should be noted t h a t t h i s method almost a u t o m a t i c a l l y excluded the n a t i v e population as w e l l as the people of the lower income group who c o u l d not a f f o r d to have.a telephone i n t h e i r d w e l l i n g . 17 2,5, Genera,! C h a r a c t e r i s t i c s of the Respondents Random sampling from telephone d i r e c t o r i e s and the c r i t e r i a used i n the s e l e c t i o n of o p i n i o n l e a d e r s r e s u l t e d i n a heavy c o n c e n t r a t i o n o f male respondents i n the sample. Consequently, the percentage of female respondents was extremely sma l l - 6% of o p i n i o n l e a d e r s , 11% of the g e n e r a l p u b l i c , and 9% o f the t o t a l sample. The survey r e s u l t s a d m i t t e d l y r e f l e c t predominantly male o p i n i o n s . The age d i s t r i b u t i o n of respondents i s shown i n Table I I . TABLE I I Age D i s t r i b u t i o n of Respondents Age 15-19 20-24 25-29 30-34 35-49 50-59 60 and over Total Group Opinion L e a d e r s 1 1 13 30 88 46 18 197 (0.5) (0.5) (6.6) (15.2) (44.7) (23.4) (9.1) (100%) General Public 3 25 47 42 77 42 44 280 (1.1) (8.9) (16.8) (15.0) (27.5) (15.0), (15.7) (100%) Among o p i n i o n l e a d e r s , t h e r e was a heavy c o n c e n t r a t i o n of respondents from the 35-49 year o l d group, whereas among the g e n e r a l p u b l i c group, the age d i s t r i b u t i o n i s f a i r l y even except f o r the l a c k of r e p r e s e n t a t i o n from the 15-19 year age group. In n a t i o n a l i t y , 94% of the respondents were Canadian c i t i z e n s w h i l e a f u r t h e r 1.7% were landed immigrants. E i g h t y -two percent had l i v e d i n B.C. f o r more than 9 years and 42% had l i v e d i n the p r o v i n c e a l l t h e i r l i v e s . 18 The a n a l y s i s a l s o r e v e a l e d t h a t approximately o n e - t h i r d of the respondents (34%) had completed a u n i v e r s i t y l e v e l e d ucation. However, a f u r t h e r breakdown among sub-groups i n d i c a t e d t h a t t h i s h i g h l e v e l of e d u c a t i o n i s l a r g e l y a t t r i -b u t a b l e to the subr-group of t e a c h e r s . N i n e t y - t h r e e percent of teachers responding had f i n i s h e d a u n i v e r s i t y e d u c a t i o n , which accounted f o r 34% of a l l the respondents who had completed u n i v e r s i t y . Teachers a s i d e , the e d u c a t i o n a l l e v e l v a r i e d from one sub-group to another. The modal e d u c a t i o n a l l e v e l f o r other sub-groups i s as f o l l o w s : Business Leaders F i n i s h e d U n i v e r s i t y M u n i c i p a l O f f i c i a l s Some U n i v e r s i t y Labour Union R e p r e s e n t a t i v e s F i n i s h e d Secondary Chamber of Commerce P r e s i d e n t s F i n i s h e d U n i v e r s i t y General P u b l i c F i n i s h e d Secondary In terms of t h e i r o c c u p a t i o n s , respondents were i n c l u d e d from v i r t u a l l y a l l s e c t o r s of the economy. T h e i r jobs were c l a s s i f i e d a c c o r d i n g to the O c c u p a t i o n a l C l a s s i f i c a t i o n Manual, Census Canada, 1971. Here again, w h i l e a wide v a r i e t y of occupations were re p r e s e n t e d , there was a c o n c e n t r a t i o n i n the managerial category, which c o u l d be a t t r i b u t e d mainly t o the group of o p i n i o n l e a d e r s . In f a c t , 168 out of 202 respondents who were c l a s s i f i e d i n managerial p o s i t i o n s came from t h i s sub-sample. In l o o k i n g a t f a c t o r s which i n f l u e n c e o p i n i o n , i t i s a l s o necessary to c o n s i d e r the extent to which people are exposed to mass media i n f o r m a t i o n . In t h i s r e s p e c t , 19 s u b s c r i p t i o n t o newspapers, magazines and j o u r n a l s p r o v i d e s a u s e f u l b a s i s f o r a p r e l i m i n a r y measurement of t h i s i n f l u e n c e p r o c e s s . E i g h t y - e i g h t p e r c e n t of the respondents s u b s c r i b e d to one or more l o c a l newspapers, w h i l e the p r o p o r t i o n s s u b s c r i b i n g t o n a t i o n a l or i n t e r n a t i o n a l papers or magazines were 42% and 40% r e s p e c t i v e l y . When co n s i d e r e d i n combination w i t h respondents' l e n g t h of r e s i d e n c e i n the p r o v i n c e , these f i g u r e s suggest t h a t the views expressed were l i k e l y to be o r i e n t e d toward p r o v i n c i a l i n t e r e s t s and would r e p r e s e n t a r e l a t i v e l y s t a b l e consensus of l o c a l B.C. o p i n i o n . Income l e v e l s of the respondents v a r i e d from one sub-group to another. There were marked d i f f e r e n c e s i n l e v e l s of household income, f o r example, between the-_gro.up of b u s i n e s s l e a d e r s , 94% of whom earned more than $25,0 00 a n n u a l l y , and the g e n e r a l p u b l i c group, whose mean' income was below $12,000. The s p a t i a l source of r e t u r n e d q u e s t i o n n a i r e s p a r a l l e l e d p o p u l a t i o n d i s t r i b u t i o n s among de s i g n a t e d geographic areas of B.C. f a i r l y w e l l : f o r t y percent of a l l responses, or 189, o r i g i n a t e d i n the G r e a t e r Vancouver Region, 19% (90) came from Vancouver I s l a n d , i n c l u d i n g V i c t o r i a , 11.5% (55) from Thompson-Okanagan, 11% (52) from the Kootenays, 9% (45) from the C e n t r a l , 7% (32) from the North West, and 3% (14) from the North E a s t of B.C. 2.5 Summary T h i s chapter has attempted to d e s c r i b e the methodology used f o r the study, p r o v i d i n g data c o l l e c t i o n and p r o c e s s i n g 20 i n f o r m a t i o n , as w e l l as summarizing the c h a r a c t e r i s t i c s of the respondents. Chapter t h r e e w i l l p r e s e n t the g e n e r a l f i n d i n g s of the survey, w i t h the emphasis on the a t t i t u d i n a l d i f f e r e n c e s between the o p i n i o n l e a d e r s group and the g e n e r a l p u b l i c group. 21 CHAPTER IIIX GENERAL ATTITUDES TOWARD FOREIGN INVESTMENT AMONG B.C. RESIDENTS 3.1. I n t r o d u c t i o n T h i s chapter p r e s e n t s the ge n e r a l f i n d i n g s of the survey, w i t h the emphasis on a t t i t u d i n a l d i f f e r e n c e s between the group of o p i n i o n l e a d e r s and the g e n e r a l p u b l i c group. As mentioned i n s e c t i o n 1.4, i t was expected t h a t a d i s c r e p a n c y of o p i n i o n s would e x i s t between these two groups as a r e s u l t of d i f f e r i n g l e v e l s o f awareness concerning f o r e i g n investment. The h i g h l y c e n t r a l i z e d nature of FI decision-making process was f u r t h e r expected to c r e a t e o p i n i o n v a r i a t i o n s between l o c a l community e l i t e s and p r o v i n c i a l b u s i n e s s l e a d e r s who are c o n s t a n t l y exposed t o the g l o b a l movement and s t r a t e g i e s of m u l t i n a t i o n a l c o r p o r a t i o n s . The o b j e c t i v e s of t h i s i n i t i a l a n a l y s i s are; (1) to i d e n t i f y i n what areas o p i n i o n v a r i a t i o n s would e x i s t among sub-groups o f the B.C. p o p u l a t i o n , and (2) to draw p o l i c y i m p l i c a t i o n s from the responses. In order t o achieve the o b j e c t i v e s , the q u e s t i o n n a i r e c o n s i s t e d of t h r e e major s e c t i o n s : The f i r s t s e c t i o n i n q u i r e d i n t o the l e v e l of B.C. r e s i d e n t s ' awareness of the p r o v i n c e ' s i n t e r n a t i o n a l t r a d e r e l a t i o n s h i p s as a p r e r e q u i s i t e to d i s c u s s i o n o f f o r e i g n investment. The second p o r t i o n was designed t o o b t a i n the people's p e r c e p t i o n s and p r e f e r e n c e s w i t h r e s p e c t to f o r e i g n investment i n g e n e r a l ; i n the l a s t p a r t the emphasis s h i f t e d to quest i o n s about 22 Japanese d i r e c t investment i n o r d e r t o observe i f s o c i o -c u l t u r a l as w e l l as o r g a n i z a t i o n a l d i f f e r e n c e s would a f f e c t the r e s i d e n t s ' r e c e p t i v e n e s s t o investment from Japan which has become one of the major i n v e s t o r s i n the P a c i f i c Rim. 3.2. Awareness of B.C.'s I n t e r n a t i o n a l Trade R e l a t i o n s h i p s . B r i t i s h Columbia's abundant n a t u r a l r e s o u r c e s have a s t r o n g comparative advantage i n i n t e r n a t i o n a l t r a d e t r a n s a c t i o n s . The r e c e n t r a p i d expansion of m u l t i n a t i o n a l c o r p o r a t i o n s has g e n e r a l l y been brought about by a combination of environmental f o r c e s (such as an improved i n t e r - n a t i o n framework and f a v o u r a b l e n a t i o n a l economic and p o l i t i c a l environments of both home and host c o u n t r i e s toward m u l t i n a t i o n a l s ) , t e c h n o l o g i c a l t r e n d s , and the growth process of the business e n t e r p r i s e . However, f o r e i g n c a p i t a l i n f l o w s to B.C. can be b e s t e x p l a i n e d by the t r a d i t i o n a l comparative advantage t h a t t h i s p r o v i n c e possessed over o t h e r r e g i o n s and c o u n t r i e s . Whether or not the r e s i d e n t s a r are c l o s e l y f o l l o w i n g the p r o v i n c e ' s r e c e n t trade r e l a t i o n s h i p s become an important q u e s t i o n to be posed b e f o r e d i s c u s s i n g t h e i r awareness of the f o r e i g n investment s i t u a t i o n . In responseato the q u e s t i o n , "What country, a p a r t from the U.S.A., has the c l o s e s t t r a d e r e l a t i o n s h i p w i t h the p r o v i n c e of B r i t i s h Columbia?", e i g h t y - e i g h t percent of the respondents named Japan, a f t e r the U.S.A., as the second most important t r a d i n g partner of B.C. Both o p i n i o n l e a d e r s and the g e n e r a l p u b l i c were i n agreement i n t h e i r assessment of the importance of Japan. (Since 19 67, 2 3 when Japan d i s p l a c e d the U n i t e d Kingdom as the p r o v i n c e ' s second l a r g e s t t r a d i n g p a r t n e r , trade between B.C. and Japan has i n c r e a s e d s t e a d i l y , ) The responses to t h i s q u e s t i o n suggested t h a t a p e r c e p t i o n o f Japan as a growing t r a d i n g p a r t n e r t o B.C. was g e n e r a l l y c l e a r and a c c u r a t e among the people of the p r o v i n c e . A second q u e s t i o n concerned the d i r e c t i o n of exports from B.C. and respondents were asked to rank, i n order o f importance, f o r e i g n importers of B.C. n a t u r a l r e s o u r c e s . The r e s u l t s appear i n Table I I I . TABLE I I I Ranking of Importers of B.C. N a t u r a l Resources Country U.S.A. Rank Japan U?K. W.GERMANY CHINA TOTAL RESPONSES 0) -P ttS U 3' o o < O -H Q • 3 6 0 ^ ^  Hi5. 6) ~ ( 2 1 . 0 ) ' 10 ( 2 . 2 ) 3 ( 0 . 7 ) 2 ( 0 . 4 ) 107 9 .(22.5) ( 1 . 9 ) 32V- 39 4 . ( 6 9 . 2 ) ^ ^ 8 . 3 ) ( 0 . 9 ) * 3 8 ^ 3 2 3 ^ 48 (8 . 2 ) ' " - C 6 9 . 6 ) ^ ^ 1 0 . 3 ) 7 9 " " \ 2 9 8 ^ 1 ( 0 . 2 ) ( 1 7 . 2 ) M 6 5 . 1 ) 16 ( 3 . 5 ) 1 0 7 -( 2 3 . 4 ) 3 ( 0 . 6 ) 45 ( 9 . 7 ) 77 J 1 6 . 8 ) 33 2 V (72.7*1 4 7 6 ( 1 0 0 ) 468 ( 1 0 0 ) 464 ( 1 0 0 ) 458 ( 1 0 0 ) 4 5 7 ( 1 0 0 ) Note: Rank 1 - Most important. F i g u r e s i n b r a c k e t s are percentages, Here again, the responses to t h i s q u e s t i o n i n d i c a t e d t h a t the r e s i d e n t s were f a i r l y w e l l - i n f o r m e d r e g a r d i n g the major markets f o r the p r o v i n c e ' s n a t u r a l r e s o u r c e s . In 1 9 7 3 , the rank order of importers of B.C. n a t u r a l r e s o u r c e s among c o u n t r i e s 24 l i s t e d on the q u e s t i o n n a i r e was, from the most important, the U.S.A., Japan, the U n i t e d Kingdom, West Germany and China ( S t a t i s t i c s Canada, 1974). S i x t y ^ - f i v e percent or more of the responses i n each case t h e r e f o r e l a y along the NW-SE "accurate" d i a g o n a l shown w i t h i n the d o t t e d area i n Table I I I . 3.3. A t t i t u d e s toward F o r e i g n Investment i n General F i v e d i r e c t statements were designed to induce respondents' p e r c e p t i o n s c o n c e r n i n g e x i s t i n g and incoming f o r e i g n investment i n g e n e r a l terms. In order to o b t a i n some i n d i c a t i o n of the s t r e n g t h of the agreement or disagreement w i t h these statements, respondents had been asked to s p e c i f y f o r each statement where t h e i r answers would l i e along a t e n - p o i n t s c a l e from l f ( s t r o n g l y agree) to 10, ( s t r o n g l y d i s a g r e e ) . Responding to the statement t h a t "there i s too much f o r e i g n c a p i t a l being i n v e s t e d i n B.C.," a d i v e r s i t y o f p r e f e r e n c e s emerged among a l l sub-groups of respondents. The r e a c t i o n s are summarized i n Table IV. While p r o v i n c i a l b u s i n e s s l e a d e r s s t r o n g l y opposed the statement, labour r e p r e s e n t a t i v e s supported the view of e x c e s s i v e i n f l o w s of f o r e i g n c a p i t a l i n t h i s p r o v i n c e . Between these two groups f e l l the l o c a l chamber of commerce group, m u n i c i p a l o f f i c i a l s , the g e n e r a l p u b l i c group, and s c h o o l t e a c h e r s . Weighted scores i n d i c a t e d t h a t l o c a l b ureaucrats and p o l i t i c i a n s maintained t h e i r n e u t r a l i t y r e g a r d i n g t h i s i s s u e (5.65 on a t e n - p o i n t s c a l e ) w h i l e the g e n e r a l p u b l i c group and academics thought there was s l i g h t l y too much. 25 The f i r s t h y p o t hesis presented i n s e c t i o n l,4 f. s t a t i n g t h a t a wide spectrum of p r e f e r e n c e s would e x i s t among v a r i o u s groups of the B,C. p o p u l a t i o n , w i t h p r o v i n c i a l business l e a d e r s and l a b o u r groups p r o v i d i n g two extreme p e r s p e c t i v e s to the i s s u e of F I , was a f f i r m e d by these responses. The r e s u l t r e v e a l e d v a r y i n g degrees of s a t i s f a c t i o n w i t h FI among a l l sub-groups. P o l a r i z a t i o n o f o p i n i o n s between business and l a b o u r groups came a c r o s s i n a d i s t i n c t way, which remained unchanged throughout the survey. Regardless of job o p p o r t u n i t i e s being c r e a t e d by F I , the labour group was opposed to any form of FI i n the p r o v i n c e , w h i l e b u s i n e s s l e a d e r s welcomed i t . N o torious labour r e l a t i o n s h i p i n B.C. seems to be r e f l e c t e d i n these responses: Strong a n t i - b u s i n e s s sentiment among union r e p r e s e n -t a t i v e s were superimposed on r e a c t i o n s to F I . To union l e a d e r s , F I was the m a n i f e s t a t i o n of an economic i n v a s i o n which o n l y b e n e f i t s a h a n d f u l of l a r g e business o p e r a t o r s . On the o t h e r hand, the b u s i n e s s s e c t o r i s anxious to r e c e i v e more F I which w i l l have a d i r e c t or i n d i r e c t impact on t h e i r b u s i n e s s d e a l i n g s . 26 TABLE IV RESPONSES TO ISSUE "There i s too much f o r e i g n c a p i t a l being i n v e s t e d i n B.C." Sub-Group % of Sub-Group Responses Weighted Agree Disagree Score General P u b l i c 59.7 40.3 4.91 Opinion Leaders 49.7 50.3 5.95 Business Leaders 12.1 87.9 8.91 M u n i c i p a l O f f i c i a l s 58.0 42.0 5.65 • Labour Union Leaders 73.7 26.3 3.53 Chamber of Commerce P r e s i d e n t s 35.3 64.7 6.67 Teachers 51.6 48.4 4.60 Note: AZweighted score was c a l c u l a t e d i n the f o l l o w i n g manner: Each answer was as s i g n e d i t s s c a l e p o i n t v a l u e and these v a l u e s were t o t a l l e d f o r each sub group. The sum was then d i v i d e d by the number of responses i n t h a t sub group to g i v e a weighted score r e p r e s e n t i n g s t r e n g t h o f p r e f e r e n c e . An i n d e f i n i t e score would be 5.50. Greater than t h a t would be disagreement up to 10.00; l e s s than 5.50 would i n d i c a t e agreement, w i t h 1 i n d i c a t i n g the s t r o n g e s t agreement. TABLE V RESPONSES TO ISSUE "B.C. needs more investment from f o r e i g n c o u n t r i e s . " Sub-Group % of Sub-Group Responses Weighted Agree Disagree Score General P u b l i c 49.6 50. 4 5. 99 Opinion Leaders 57. 5 42. 5 5. 15 Business Leaders 84/9 15. 1 2. 79 M u n i c i p a l O f f i c i a l s 51.6 48. 1 5. 34 Labour Union Leaders 25 75 8. 07 Chamber of Commerce P r e s i d e n t s 69.9 30. 2 4. 38 . 42.1 57. 8. . 6. 42 27 In a ma i l e d q u e s t i o n n a i r e method, one of the major l i m i t a t i o n s i s t h a t no o p p o r t u n i t y e x i s t s to probe beyond the g i v e n answer. Although a weighted score measures r e l a t i v e i n t e n s i t i e s o f p r e f e r e n c e s , answers remain one di m e n s i o n a l . In order t o overcome t h i s shortcoming, an approach was taken to prepare another statement concerning f u t u r e d e s i r a b i l i t y o f investment from f o r e i g n c o u n t r i e s , through which some trends o f thought were expected to be drawn. Table V i l l u s t r a t e s the reaction to t h i s second statement. F i f t y t h r e e percent o f the respondents agreed t h a t "B.C. needs more investment from f o r e i g n c o u n t r i e s . " T h i s appeared to c o n t r a d i c t some of the a t t i t u d e s toward the presen t investment s i t u a t i o n i n d i c a t e d e a r l i e r , where 56% of the sample s t a t e d t h a t "there i s too much f o r e i g n c a p i t a l a l r e a d y being i n v e s t e d i n the p r o v i n c e . " (See Table IV.) Twelve percent of o p i n i o n l e a d e r s and s i x t e e n percent o f the g e n e r a l p u b l i c group were not c o n s i s t e n t i n t h e i r answers, a g r e e i n g or d i s a g r e e i n g w i t h the statement i n both q u e s t i o n s . T h i s i n c o n s i s t e n c y between the assessment of presen t l e v e l s of f o r e i g n c a p i t a l i n f l o w s and the d e s i r a b i l i t y of f u t u r e F I c o u l d be i n t e r p r e t e d i n a few d i f f e r e n t ways: Some people might have c o n s i d e r e d the present d i s s a t i s f a c t i o n w i t h f o r e i g n investment c o u l d be l e s s -ened by r e d i r e c t i o n of investment p a t t e r n s i n the f u t u r e . Or some respondents might have thought there was not an excess amount of F I a t present, y e t they d i d not want any f u t u r e F I . H i s t o r i c a l l y , B r i t i s h Columbia's economic development has r e l i e d on s u c c e s s i v e i n f l o w s of f o r e i g n c a p i t a l to f i n a n c e 28 s u c h d e v e l o p m e n t . I t was f e l t t h a t t h e l e v e l o f a w a r e n e s s o f B.C. p e o p l e r e g a r d i n g t h i s f a c t s h o u l d be e s t a b l i s h e d . C o n s i d e r a t i o n was g i v e n t o t h e p o s s i b i l i t y t h a t o b j e c t i v e e v a l u a t i o n o f t h e c o n t r i b u t i o n o f F I t o B.C. e c o n o m i c d e v e l o p -ment and t h e i n d i v i d u a l s ' s u b j e c t i v e a p p r e c i a t i o n o f i t s n e t b e n e f i t s m i g h t d i f f e r . T h e r e f o r e , two s t a t e m e n t s ("In g e n e r a l , f o r e i g n i n v e s t m e n t has been b e n e f i c i a l t o t h e e c o n o m i c d e v e l o p -ment i n t h e P r o v i n c e o f B.C." and " F o r e i g n i n v e s t m e n t has i m p r o v e d t h e q u a l i t y o f l i f e i n B.C.") were i n c l u d e d t o d e t e r m i n e t h e p e r c e p t i o n o f B.C. r e s i d e n t s r e g a r d i n g t h e c c o n t r i b u t i o n o f F I t o o v e r a l l e c o n o m i c d e v e l o p m e n t and e c o n o m i c and s o c i a l b e n e f i t s o r n e g a t i v e e f f e c t s c r e a t e d as a r e s u l t o f t h e i n f l o w o f f o r e i g n c a p i t a l . The v a s t m a j o r i t y o f r e s p o n d e n t s a g r e e d t h a t f o r e i g n i n v e s t m e n t has b e en b e n e f i c i a l t o e conomic d e v e l o p m e n t i n B.C. E i g h t y f o u r p e r c e n t o f o p i n i o n l e a d e r s and e i g h t y s e v e n p e r -c e n t o f t h e g e n e r a l p u b l i c g r o u p s u p p o r t e d t h e s t a t e m e n t . I t i s s a f e t o s t a t e t h a t i n g e n e r a l B.C. r e s i d e n t s a r e f u l l y aware o f t h e p o s i t i v e r a m i f i c a t i o n s o f f o r e i g n i n p u t s t o t h e p r o v i n c i a l e c o n o m i c s t r u c t u r e . When t h e e m p h a s i s o f t h e s t a t e m e n t was s h i f t e d f r o m e c o n o m i c d e v e l o p m e n t t o t h e improvement o f t h e q u a l i t y o f l i f e ( w i t h w h i c h p e o p l e c o u l d a s s o c i a t e t h e i r own l i f e more c l o s e l y ) ; f a v o u r a b l e r e s p o n s e s d e c r e a s e d s l i g h t l y . A l t h o u g h i n o v e r a l l t e r m s 79% o f r e s p o n d e n t s a g r e e d t h a t f o r e i g n i n v e s t m e n t has i m p r o v e d t h e q u a l i t y o f l i f e , i t s h o u l d be n o t e d t h a t t h e a g r e e m e n t f r o m t h e g e n e r a l p u b l i c d e c r e a s e d t o 77%, a 10% 29 drop from the responses to the p r e v i o u s q u e s t i o n , w h i l e almost the same number of o p i n i o n l e a d e r s (83%) showed the p o s i t i v e support f o r t h i s statement. The r e s u l t s c l e a r l y i n d i c a t e d t h a t the g e n e r a l p u b l i c h i g h l y valued the c o n t r i -b u t i o n of f o r e i g n investment to economic development but some c5f them dropped t h e i r support i n terms of i t s c o n t r i b u t i o n to the enhancement of the q u a l i t y of l i f e . They must have r a r e a l i z e d t h a t the outcome of development d i d not c o i n c i d e w i t h t h e i r p r e v i o u s e x p e c t a t i o n s of what development c o u l d b r i n g to t h e i r r e g i o n . In order to b e t t e r understand how B.C. r e s i d e n t s r e l a t e d EI to socio-economic c o n d i t i o n s i n the p r o v i n c e , the q u e s t i o n c o n c e r n i n g the improvement o f the q u a l i t y of l i f e was f u r t h e r extended by a s k i n g i n what p a r t i c u l a r areas people observe c o n t r i b u t i o n s or n e g a t i v e e f f e c t s of F I . Tables VI to IX i l l u s t r a t e the responses. Almost t w o - t h i r d s of the respon-dents p e r c e i v e d the major c o n t r i b u t i o n i n terms of i n c r e a s e d l o c a l employment o p p o r t u n i t i e s . O n e - t h i r d of them b e l i e v e d t h a t F I c o n t r i b u t e d to i n c r e a s e s i n income l e v e l s . These r e s u l t s , coupled w i t h the f a c t t h a t negative e f f e c t s were a l s o p e r c e i v e d predominantly i n monetary terms, suggest t h a t the respondents a s s o c i a t e f o r e i g n investment with the q u a l i t y of l i f e i n terms of economic b e n e f i t s r a t h e r than s o c i a l b e n e f i t s (such as i n c r e a s e d a v a i l a b i l i t y of goods or improved s e r v i c e s and a m e n i t i e s ) . 30 The p e r c e p t i o n of s t r o n g a s s o c i a t i o n of F I w i t h economic b e n e f i t s l e a d t o s e v e r a l i n t e r p r e t a t i o n s f o r the g e n e r a l l y low d e s i r a b i l i t y of f u t u r e F I expressed by the respondents: F i r s t , they might have thought t h a t economic b e n e f i t s generated by FI were not d i s t r i b u t e d e q u i t a b l y under the c u r r e n t i n v e s t -ment p a t t e r n . Second, B r i t i s h Columbians' development goals have been changing w i t h more emphasis on non^economic c r i t e r i a . T h i r d , the people d i d not want any F I simply because they had secured t h e i r own jobs, which might have been d i r e c t l y or i n d i r e c t l y the r e s u l t of F I , and thus they p e r c e i v e d the i s s u e from a s t r i c t l y i n d i v i d u a l w e l f a r e viewpoint. In o t h e r words, they had a l r e a d y b e n e f i t e d from past FI p r o j e c t s and d i d not want any more F I which would not bring'any d i r e c t b e n e f i t to them. P o l i c y I m p l i c a t i o n s : The f i r s t i n t e r p r e t a t i o n suggests t h a t unequal d i s t r i b u t i o n of b e n e f i t s a c c r u i n g from F I a d v e r s e l y a f f e c t e d r e c e p t i v e n e s s to f u t u r e FI among those not b e n e f i t i n g . The second i n t e r p r e t a t i o n i s based on the p r e f e r e n c e p a t t e r n of p o s t ^ i n d u s t r i a l s o c i e t y where people wish to l i v e where s o c i a l a m e nities are r a t h e r than being economically r a t i o n a l . I f t h i s i s the case, a changing p a t t e r n of B.C. r e s i d e n t s ' development o b j e c t i v e s was suggested by the r e s u l t . 31 Nature TABLE VI of ^ r - ^ U r ^ r i Contributions of For P. ion Investment i n B.C. No. of Responses Employment opportunities f o r . l o c a l communities Increased Incomes Increased goods/commodities a v a i l a b l e Improved services/Amenities Other 303 161 96 78 19 Percentage of T o t a l Sample 63% 34% 20% 16% 4% TABLE VII Nature of Perceived Contributions - Sub-Group Responses — (row percentages i n brackets) Business Municipal Union Chamber Teachers General T o t a l leaders o f f i c i a l s leaders of Commerce Employment oppor-t u n i t i e s f o r l o c a l communi- 28 t i e s (9.2) Increased Goods/ Commodities 6 a v a i l a b l e (6.2) Improved Services/ 7 amenities (9.0) Others 1 (5.3) 22 (7.2) Increased 23 13 Incomes (14.3) (8.1) 7 (7-3) 7 (9.0) 2 (10.5) 8 42 (2.6) (13.9) 5 16 (3 .1) (9.9) 3 11 (3.1) (11.5) (1.3) (11.5) (5.2) (15.8) . 34 169 303 (11.2) (55.8) (100%) 25 79 161 (15.5) (49.1) (100%) 14 55 96 (14,6) (57.3) (100%) ]2 42 78 (15.4) (53.8) (100%) 3 9 19 (15.8) (47.4) (100%) Totals 65 (9.9) 51 (7.8) 18 (2.7) 81 (12.3) 88 354 657 (13.4) (53.9) (100%) 32 TABLE VIII Nature of Perceived Negative E f f e c t s of Foreign Investment i n B.C. No. of Percentage of Responses T o t a l Sample I n s u f f i c i e n t r e t u r n to B.C. from e x p l o i t a t i o n of natural resources 70 15% Removal of p r o f i t s / e a r n i n g s from B.C. 48 10% Environmental p o l l u t i o n 40 8% Overconcentration of population 17 4% Disruption of l o c a l communities 11 2% Others 9 2% TABLE IX Nature of Perceived Negative E f f e c t s - Sub-Group responses Business Municipal Union Chamber Teachers General T o t a l leaders o f f i c i a l s Leaders of Pub l i c Commerce Population concentration 1 1 - 1 4 10 17 (5.9) (5.9) (5.9) (23.5) (58.8) (100%) I n s u f f i c i e n t returns to B.C. 2 2 6 3 11 46 70 (2.9) (2.9) (8.6) (4.2) (15.7) (65.7) (100%) Removal of P r o f i t s from 1 2 5 3 8 29 48 B.C. (2.1) (4.2) (10.4) (6.3) (16.6) (60.4) (100%T Environmental P o l l u t i o n 2 - 4 1 7 26 40 (5.0) (10.0) (2.5) (17.5) (65.0) (100%) Disruption of l o c a l communi- 1 - 1 2 1 6 11 t i e s (9.1) (9.1) (18.2) (9.1) (54.5) (100%) Others - 1 2 1 2 3 9 (11.1) (22.2) (11.1) (22.2) (33.4) (100%) Totals 7 6 18 11 33 120 195 (3.6) (3.1) (9.2) (5.6) (16.9) (61.5) (100%) 33 3.4. A t t i t u d e s : Toward Japanese D i r e c t Investment Ever s i n c e the mid-1960's when Japanese business s e c t o r s t a r t e d t o i n v e s t i n B.C. n a t u r a l r e s o u r c e i n d u s t r i e s i n order to secure a steady supply of raw m a t e r i a l s f o r her i n d u s t r i a l base, Japan has been f r e q u e n t l y c i t e d as "a t h i r d o p t i o n " to c o u n t e r b a l a n c e B.C.'s heavy dependence on U.S. and European ( p a r t i c u l a r l y B r i t i s h ) investments. The l a t t e r p a r t of the survey was designed to s o l i c i t the o p i n i o n s of B.C. r e s i d e n t s concerning t h i s growing i n v e s t o r i n the P a c i f i c Rim. The major b a r r i e r s to h i g h r e c e p t i v e n e s s to i n c r e a s i n g Japanese investment were c u l t u r a l and o r g a n i z a t i o n a l d i f f e r e n c e s between Canadian and Japanese business o p e r a t i o n s . The "myth" of a g r e s s i v e Japanese bu s i n e s s s t r a t e g i e s , , which has been p r e v a i l i n g i n the western w o r l d i n the l a s t decade, was c o n s i d e r e d to a f f e c t a d v e r s e l y the B.C. people's p r e f e r e n c e s toward Japanese investment. The h i s t o r y of B r i t i s h Columbia has a l s o demonstrated t h a t the s o c i e t a l environment, had-not been n e c e s s a r i l y f a v o u r a b l e to e t h n i c groups of A s i a n o r i g i n u n t i l r e c e n t y e a r s . I f t h i s h i s t o r i c a l background, i n c l u d i n g the experience of World War I I , i s coupled w i t h the a f o r e -mentioned "myth" or the l a c k of understanding of present Japanese economic s t r u c t u r e , an e x p l a n a t i o n f o r some l a c k of r e c e p t i v e n e s s emerges. As Duval's (1974) r e s e a r c h r e v e a l e d , the extremely c a u t i o u s posture of Japanese m u l t i n a t i o n a l s , whose l o c a l headquarters are l o c a t e d i n m e t r o p o l i t a n Vancouver, and t h e i r 34 e f f o r t s t o a s s i m i l a t e i n t o Canadian business s t r u c t u r e c l e a r l y r e f l e c t the Japanese m u l t i n a t i o n a l ' s f e a r o f p o t e n t i a l c o n f l i c t s and c o n f r o n t a t i o n s w i t h the Canadian s o c i e t y . However, n e i t h e r Canadians who advocated the p o l i c y of "Japan as the t h i r d o p t i o n " f o r B r i t i s h Columbia nor Japanese i n v e s t o r s have undertaken any s o c i a l r e s e a r c h which would r e v e a l s o c i e t a l e x p e c t a t i o n s toward Japanese investment. With^ out such i n f o r m a t i o n , the arguments or s t r a t e g i e s ; they c o u l d develop have to r e l y h e a v i l y on r o o t l e s s assumptions. When t h i s survey was conducted, the f e a s i b i l i t y study of e s t a b l i s h i n g a s t e e l m i l l i n B r i t i s h Columbia was underway between the NDP government and Nippon Kokan K.K., one of the major i r o n and s t e e l manufacturers i n Japan, and the c o n t r o v e r s y of " f o r whom i t w i l l be b u i l t ? " o f t e n appeared i n the mass media. T h e r e f o r e i t was f e l t to be the r i g h t time to conduct such an a p p r a i s a l o f people's p e r c e p t i o n of Japanese investment and i t s impact on t h e i r l o c a l environment. T h i s s e c t i o n o f the survey was intended f i r s t l y to observe whether the B.C. p o p u l a t i o n possessed s u f f i c i e n t know-ledge about pres e n t Japanese economic c o n d i t i o n s and Japanese bus i n e s s o p e r a t i o n s i n the p r o v i n c e . A f t e r i d e n t i f y i n g and e s t a b l i s h i n g the l e v e l s o f awareness among the p o p u l a t i o n , the p a t t e r n o f p r e f e r e n c e s by a l l sub-groups w i t h r e s p e c t to f u t u r e d e s i r a b i l i t y of Japanese investment w i l l be d i s c u s s e d . 35 v Knowledge About Present Day Japa,n: Two statements were i n c l u d e d to see how- w e l l people understood economic c o n d i t i o n s i n Japan, which have l e a d the c o u n t r y to become a major customer of B.C. n a t u r a l r e s o u r c e s . N i n e t y nine percent o f respondents were aware o f the f a c t t h a t Japan does not have an adequate supply of n a t u r a l r e s o u r c e s t o feed her l a r g e i n d u s t r i a l base. E i g h t y nine percent r e c o g n i z e d Japan as one o f the most i n d u s t r i a l i z e d and urbani z e d n a t i o n s i n the world. Among the remaining respondents, who suggested t h a t Japan had been i n d u s t r i a l i z e d r e c e n t l y , some i n t e r p r e t e d " r e c e n t l y " to mean the postr-World War II p e r i o d , so t h a t t h e i r awareness of Japan as an i n d u s t r i a l i z e d country was l i m i t e d to the past t h i r t y y e a r s . These r e s u l t s suggest t h a t r e s i d e n t s have a b a s i c understanding o f Japan's economic s t r u c t u r e and t h a t t h e i r responses to other statements and qu e s t i o n s were not l i k e l y to be s e r i o u s l y confused by mistaken ideas and images of t h a t country. Awareness of Japanese Business Involvement i n B.C.: The l e v e l o f awareness and understanding o f e x i s t i n g f o r e i g n investment i n the respondent!s own r e g i o n i s an important i n d i c a t o r of o p i n i o n . Questions were designed to seek and e s t a b l i s h B.C. people's l e v e l s o f awareness concerning the e x i s t e n c e o f Japanese bu s i n e s s involvement i n t h e i r l o c a l communities or i n the p r o v i n c e . 36 S i x t y one percent of respondents r e c o g n i z e d Japanese business a c t i v i t i e s i n t h e i r own community, o r were aware of such a c t i v i t i e s i n the p r o v i n c e , In commenting on the Japanese bu s i n e s s community, n i n e t y f o u r p e r c e n t of 241 respondents, who gave a t l e a s t one impression, had f a v o u r a b l e or a t l e a s t n e u t r a l r e a c t i o n s , From the people who h i g h l y v a l u e d the hard-working, d e d i c a t e d nature of Japanese bu s i n e s s people to those who maintained the n e u t r a l p o s i t i o n , the g e n e r a l consensus was predominantly f a v o u r a b l e . Almost a l l respondents (474) checked one or a number of i n d u s t r i e s i n answering the q u e s t i o n , "In which f i e l d s of b u s i n e s s i n B.C. i s Japanese c a p i t a l i n v o l v e d ? " The r e s u l t s are summarized i n Table X. Respondents' p e r c e p t i o n s , i n d i c a t e d i n t h i s T able, corresponded w i t h the degree of a c t u a l c a p i t a l investment by Japanese f i r m s i n each s e c t o r of the B.C. economy. In f a c t , the f i r s t f o u r s e c t o r s of the rank order; m i n e r a l r e s o u r c e s , f o r e s t p r o d u c t s , pulp and paper, and manufacturing absorb almost a l l Japanese investment i n B r i t i s h Columbia. T h i r t y percent, or 135, of the respondents mentioned s i g n i f i c a n t o r g a n i z a t i o n a l d i f f e r e n c e s between Japanese and Canadian bu s i n e s s c o r p o r a t i o n s . S i x t y four p e r c e n t of them possessed f a v o u r a b l e o p i n i o n s toward Japanese c o r p o r a t i o n s , and another twenty percent expressed n e u t r a l o b s e r v a t i o n s . Many f a v o u r a b l e responses were r e l a t e d to Japanese employer-employee r e l a t i o n s h i p s which are o f t e n d e s c r i b e d as p a t e r n a l i s t i c . 37 T h i s p a r t i c u l a r c h a r a c t e r i s t i c of Japanese labour r e l a t i o n s which ma,de the Japanese s o c i a l s t r u c t u r e so unique among i n d u s t r i a l i z e d n a t i o n s was w e l l understood by the B.C. residents."*" The responses to q u e s t i o n s i n t h i s s u b r s e c t i o n as w e l l as i n the p r e v i o u s sub^-section confirmed t h a t respondents were r e p r e s e n t i n g a w e l l - i n f o r m e d group i n the B.C. p o p u l a t i o n , TABLE X Respondents' P e r c e p t i o n s of B.C. I n d u s t r i e s i n which Japanese  C a p i t a l i s Involved. Industry No. of Percent of t o t a l Responses respondents (474) M i n e r a l r e s o u r c e s 427 90.1 Petroleum and n a t u r a l gas 56 11.8 F o r e s t Products 300 63.3 Pulp and Paper 282 59.5 Banking, i n s u r a n c e and r e a l e s t a t e 141 29.7 Manufacturing 151 32.1 A g r i c u l t u r e 37 7.8 Tourism 55 11.6 S u p e r m a r k e t i n g / R e t a i l i n g 37 7.8 T r a n s p o r t a t i o n 94 19.8 Others 27 5.6 Recent bus i n e s s r e p o r t s r e v e a l e d t h a t the nature of p a t e r n a l i s m has gone through d r a s t i c changes, mainly due to the economic slump t h a t Japan has been e x p e r i e n c i n g . 38 P resent and Future Japanese Investment i n B.C.: F i v e a t t i t u d i n a l statements concerning Japanese Investment i n B.C. were t e s t e d . The emphasis was p l a c e d on the p r o v i s i o n of employment, which appeared to be most d i r e c t l y a s s o c i a t e d w i t h concerns among the populace r e g a r d i n g F I , a l s o s o c i a l and p o l i t i c a l r e m i f i c a t i o n s of F I were c o n s i d e r e d . E i g h t y s i x percent o f o p i n i o n l e a d e r s and e i g h t y p e r c e n t o f the ge n e r a l p u b l i c r e s p e c t i v e l y agreed t h a t Japanese investment has i n c r e a s e d d i r e c t or i n d i r e c t employment o p p o r t u n i t i e s i n the p r o v i n c e . Among o p i n i o n l e a d e r s , t e a c h e r s were the s t r o n g e s t supporters of t h i s statement, w i t h 93% sup p o r t i n g the statement. When the emphasisswas s h i f t e d to s p e c u l a t i o n about f u t u r e employment which may be c r e a t e d by Japanese investment, 8 2% of o p i n i o n l e a d e r s and 78% of the g e n e r a l p u b l i c thought t h a t Japanese investment would i n c r e a s e l o c a l employment o p p o r t u n i t i e s . Although the p o s i t i v e responses concerning p o t e n t i a l f u t u r e prospects were s l i g h t l y lower than those d e s c r i b i n g p a s t b e n e f i t s , the v a s t m a j o r i t y of respondents from a l l sub-groups s t i l l supported the statement t h a t "Japanese investment w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e . " I t i s worth n o t i n g t h a t t h e r e was l i t t l e d e v i a t i o n between sub-groups i n t h i s o p i n i o n . -;-even the r e g u l a r l y observed p o l a r i z a t i o n o f views between business and union l e a d e r s was weaker i n p r e d i c t i n g the i n c r e a s e d employment o p p o r t u n i t i e s which would be generated from Japanese investment. The r e s u l t s are summarized i n Table XI. 39 TABLE XI RESPONSES TO ISSUE "Japanese investment w i l l increase l o c a l employment opportunities i n the future". Sub^Group % of Sub-Group Responses Weighted Agree Disagree Score Opinion leaders 82.1% 17.9% . 3.71 Business leaders 8778% 12.2% 2.79 Municipal O f f i c i a l s 87.1% 12.9% 3.26 Union Leaders 73.8% 26.2% 4.74 Chamber of Commerce Presidents79.6% 20.4% 3.70 Teachers 81.4% 18.6% • 4.15 General Public 78.3% 21.7% 4.04 However, these figures should not be necessarily interpreted as "favourable" consensus since the nature of the statement was highly objective. As one respondent commented, "one can only answer the questions i n the way that was directed." Therefore, some of the respondents who agreed with the statement may not possess p o s i t i v e expectation toward the increased employment opportunities by Japanese investment. I t could at least be said that the majority of B.C. residents predicted increasing l o c a l employment opportunities i f investment from Japan continues to flow into B r i t i s h Columbia. One of the major problems confronting foreign investors in any host region i s poten t i a l p o l i t i c a l and s o c i a l f r i c t i o n . Sixty-seven percent of opinion leaders and 71% of 40 the g e n e r a l p u b l i c f e l t t h a t t h e r e would be some p o l i t i c a l f r i c t i o n caused by Japanese investment. Two extremes were again observed between b u s i n e s s and union l e a d e r s : While o n l y 49% of business l e a d e r s p r e d i c t e d p o l i t i c a l f r i c t i o n , 90% of union l e a d e r s predicted/the p o s s i b i l i t y of such problems. S o c i a l f r i c t i o n appeared to be of l e s s concern to the r e s i d e n t s than was p o l i t i c a l f r i c t i o n . J u s t over h a l f of the respondents p r e d i c t e d t h a t Japanese investment would l i k e l y cause s o c i a l f r i c t i o n i n the f u t u r e . Breakdown between groups showed t h a t 47% of o p i n i o n l e a d e r s and 62% of the ge n e r a l p u b l i c a n t i c i p a t e d some k i n d o f s o c i a l f r i c t i o n . The above f i g u r e s i n d i c a t e t h a t the g e n e r a l p u b l i c group i s more concerned over t h i s aspect o f investment from Japan than was the group of o p i n i o n l e a d e r s . Among o p i n i o n l e a d e r s , t e a c h e r s were most s e n s i t i v e toward the i s s u e and 6 3% o f t h i s sub-group c o n s i d e r e d t h a t some s o c i a l f r i c t i o n was l i k e l y to a r i s e . One of the reasons why many B.C. r e s i d e n t s d i d not f o r e s e e major s o c i a l f r i c t i o n s as a r e s u l t o f i n c r e a s i n g Japanese investment was i n d i c a t e d i n a comment from one respondent: "The Japanese community i s l a r g e l y t r a n s i e n t (2-3 years residence) and they do not presen t a t a r g e t f o r r a c i s t s or p o l i t i c i a n s . T h e i r presence i s un o b t r u s i v e . " (This o b s e r v a t i o n i s ac c u r a t e i n t h a t most Japanese business communities abroad are t r a n s i e n t i n nature, due to frequent personnel changes i n job r o t a t i o n . Furthermore, most of 41 Japanese f i r m s o p e r a t i n g i n B.C. tend to be extremely c a u t i o u s not to c r e a t e any s o c i a l d i s t u r b a n c e which i s l i k e l y to occur whenever a new r a c i a l f a c t o r i s i n t r o d u c e d i n a s o c i e t y . ) In commenting on p o t e n t i a l s o c i a l and p o l i t i c a l f r i c t i o n , some respondents expressed the n e c e s s i t y of r e t a i n i n g Canadian c o n t r o l over any investment p r o j e c t as a p r e r e q u i s i t e to minimize these f r i c t i o n s , The m a j o r i t y consensus was t h a t as long as the investment p o l i c y i s f i r m and i n the b e s t i n t e r e s t of B.C. r e s i d e n t s , l i k e l y f r i c t i o n would be minimized. A government r o l e of r e g u l a t i n g FI and p r o v i d i n g a framework to guide f o r e i g n investment d e c i s i o n was expected by a l l sub-groups. The f i n a l statement analyzed i n t h i s s e c t i o n was designed to e x p l o r e p e r c e p t i o n s of B.C. r e s i d e n t s r e g a r d i n g p o s s i b l e l i n k a g e s between the p r o v i n c i a l government and Japanese i n v e s t o r s . Seventy f o u r percent of o p i n i o n l e a d e r s and e i g h t y p e r c e n t of the g e n e r a l p u b l i c s t a t e d t h a t Japanese f i r m s i n B.C. were more l i k e l y to cooperate w i t h the p r o v i n c i a l government than were t h e i r Canadian c o u n t e r p a r t s . Japanese companies were known to have c l o s e r e l a t i o n s h i p s w i t h t h e i r own government i n order to minimize c o n f l i c t and to f a c i l i t a t e e f f e c t i v e o p e r a t i o n s . I t was expected, t h e r e f o r e , t h a t they were more l i k e l y t o cooperate i n s i m i l a r manner w i t h the l o c a l government i n any f o r e i g n environment so as to a t t a i n t h e i r c o r p o r a t e g o a l s . 42 Although the m a j o r i t y of respondents expected t h a t Japanese f i r m s were l i k e l y to Be more c o o p e r a t i v e w i t h the p r o v i n c i a l government than were Canadian companies, they d i d not p e r c e i v e Japanese o r g a n i z a t i o n s ' c o o p e r a t i v e nature w i t h the l o c a l government as a p o s i t i v e i n d i c a t o r to minimize p o l i t i c a l f r i c t i o n , Many people i n t h i s sample r a i s e d the q u e s t i o n of government c o n t r o l over f o r e i g n investment, e x p r e s s i n g t h e i r concern over the a t t i t u d e s of f o r e i g n i n v e s -t o r s a f t e r the l a t t e r had gained c o n t r o l l i n g power. They s t r e s s e d the need f o r s t r i c t government r e g u l a t i o n s to ensure t h a t e f f e c t i v e c o n t r o l remains i n Canadian hands and t h i s was c l e a r l y seen as an important c o n s i d e r a t i o n f o r d e f i n i t i o n of the f u t u r e f o r e i g n investment c l i m a t e i n the p r o v i n c e . Concern f o r c o n t r o l over F I i n d i c a t e d i n terms of s u i t a b l e l e v e l s of f u t u r e Japanese p a r t i c i p a t i o n i n manufacturing i n d u s t r i e s and n a t u r a l r e s o u r c e i n d u s t r i e s i n B.C. Apart from a sub-group of union r e p r e s e n t a t i v e s , no other sub-groups c o n s i d e r e d t h a t any Japanese investment would be unwelcome. They a l s o expressed t h a t u n l i m i t e d Japanese p a r t i c i p a t i o n was not d e s i r a b l e . Between these extreme p o s i t i o n s , p r e f e r -ences were i n v e r s e l y r e l a t e d t o the proposed l e v e l of f o r e i g n . . 2 p a r t i c i p a t i o n . Regular p o l a r i t y between the b u s i n e s s and union l e a d e r s was a g a i n observed i n t h e i r responses: While 2 T h i s i n v e r s e r e l a t i o n s h i p was even more s t r o n g l y i n d i c a t e d f o r the case of Japanese involvement i n the p r o v i n c e ' s n a t u r a l r e s o u r c e i n d u s t r i e s than i n manufacturing. 43 business l e a d e r s p r e f e r r e d 5.0%5.0% Japanese p a r t i c i p a t i o n to Japanese minority- position,, union r e p r e s e n t a t i v e s expressed the s t r o n g e s t support f o r no Japanese investment i n both manufacturing and n a t u r a l r e s o u r c e i n d u s t r i e s . The r e s u l t s i n t h i s s e c t i o n almost e n t i r e l y r e v e r s e d the negative assumption made w i t h r e s p e c t to r e c e p t i v e n e s s of B.C. r e s i d e n t s to Japanese investment. The f a c t t h a t t h e i r knowledge about pres e n t Japan was s u f f i c i e n t l y a c c u r a t e , coupled w i t h f a v o u r a b l e impressions g i v e n to Japanese business people i n t h e i r communities i n d i c a t e d t h a t c u l t u r a l as w e l l as o r g a n i z a t i o n a l d i f f e r e n c e s were not as g r e a t of a hindrance as expected to r e c e p t i v e n e s s of the B.C. people to Japanese investment. The f a c t t h a t the respondents were l e s s concerned w i t h the f u t u r e s o c i a l f r i c t i o n than w i t h p o l i t i c a l f r i c t i o n f u r t h e r confirmed t h a t s o c i o ^ c u l t u r a l d i f f e r e n c e s between h o s t - i n v e s t i n g c o u n t r i e s should not be o v e r l y emphasized i n the f u t u r e . I f the s o c i a l acceptance of Japanese i s a f a c t , as one respondent s t a t e d , the s o c i e t a l environment f o r Japanese bu s i n e s s would not be n e g a t i v e as long as the i n v e s t o r s f o l l o w the g u i d e l i n e s which both l e v e l s o f government would p r o v i d e . 3.5. Summary and C o n c l u s i o n T h i s chapter presented the gen e r a l f i n d i n g s from the o p i n i o n survey which was designed to e s t a b l i s h the l e v e l o f awareness and p r e f e r e n c e p a t t e r n s o f the B.C. p o p u l a t i o n 44 concerning FI i n the p r o v i n c e . O v e r a l l r e s u l t s from the survey c r e a t e d the impression t h a t respondents were aware and w e l l -informed c o n c e r n i n g the i s s u e s r e l a t e d to f o r e i g n investment. Although the r e s e a r c h e r s had to d i s c o u n t f o r the p r o b a b i l i t y t h a t the people who were more i n t e r e s t e d i n the i s s u e were l i k e l y t o be respond, the m a j o r i t y of respondents' h i g h l e v e l o f a c c u r a t e p e r c e p t i o n s should be s t r e s s e d . The responses to B.C.'s i n t e r n a t i o n a l t r a d e r e l a t i o n -s h i p s , and the respondents' h i g h l e v e l of awareness concerning the e x i s t e n c e of Japanese investment i n t h e i r l o c a l communities confirmed t h a t t h e i r responses to a t t i t u d i n a l statements were based on r a t i o n a l i t y . P r e j u d i c e d o p i n i o n s based on m a l - i n f o r -mation or l a c k of proper knowledge were h a r d l y d e t e c t e d from t h i s survey. T h i s r e s u l t i n d i c a t e s t h a t both the p r o v i n c i a l and f e d e r a l governments can expect reasonable p u b l i c debate and a p p r e c i a t i o n of the i s s u e s w i t h r e s p e c t to new p r o p o s a l s and p o l i c y recommendations designed to c o n t r o l f o r e i g n investment i n B.C. or i n the r e s t o f Canada. . - As was expected, a wide spectrum of p r e f e r e n c e s appeared among a l l sub-groups i n the sample. The c l a s s i c a l tendency of p o l a r i z a t i o n between business c i r c l e and labour r e p e a t e d l y appeared and formed two extreme p o l e s of p r e f e r e n c e s . The f i r s t h y p o t h e s i s presented i n the demographic c r o s s - s e c t i o n a l approach (Chapter I, S e c t i o n 4.)was a f f i r m e d . The t y p i c a l 45 p r e f e r e n c e p a t t e r n among sub-groups was i d e n t i f i e d i n the statement r e g a r d i n g the d e s i r a b i l i t y of f u t u r e F I : While p r o v i n c i a l b u s i n e s s l e a d e r s and l o c a l chamber of commerce people p r o v i d e d f a v o u r a b l e r e a c t i o n s , l o c a l b u reaucrats and the g e n e r a l p u b l i c group maintained a somewhat n e u t r a l p o s i t i o n . On the other aide of the spectrum were teach e r s and union l e a d e r s . The f o l l o w i n g diagram i l l u s t r a t e s the t y p i c a l response p a t t e r n from a l l sub-groups. FIGURE 3 Toward Future Investment from F o r e i g n C o u n t r i e s P r o v i n c i a l Business Leaders S t r o n g l y Favourable! L o c a l Chamber of Commerce Favourable: L o c a l Bureaucrats N e u t r a l General P u b l i c Teachers Unfavourable Union Represen-t a t i v e s S t r o n g l y Unfavourable I t was apparent from the people's r e a c t i o n s to c o n t r i -b u t i o n s of FI both i n economic development and to the enhance-ment of the q u a l i t y of l i f e t h a t they a s s o c i a t e d FI most s t r o n g l y w i t h economic c r i t e r i a . I f t h i s p e r c e p t i o n was the d i r e c t cause of the r e c e p t i v i t y d i f f e r e n c e s d e s c r i b e d i n the above diagram, i t i s not d i f f i c u l t to conclude t h a t the past b e n e f i c i a r i e s of FI were mostly c o n c e n t r a t e d i n both p r o v i n c i a l and l o c a l b u s i n e s s groups. In view of income r e d i s t r i b u t i o n g o a ls w i t h i n the p r o v i n c e , the p o l i c y makers have to c o n s i d e r t h i s r e l a t i o n s h i p between the r e c e p t i v i t y to FI and d i s t r i -buted b e n e f i t s generated from FI so t h a t f u t u r e l e g i s l a t i o n 46 or policy- toward FI can be d i r e c t e d to narrow t h i s d i s c r e p a n c y expressed i n the above F i g u r e , The i n i t i a l d i s c r e p a n c y of o p i n i o n s , however, i s not the f i x e d n a t u r e . The comments expressed by respondents r e v e a l e d t h a t so long as an a c c e p t a b l e policy- mix would be i n t r o d u c e d , i n c l u d i n g the Canadian c o n t r o l of a l l investment p r o j e c t s , and s t r i c t government r e g u l a t i o n s to ensure the best i n t e r e s t of the people of the p r o v i n c e , f o r e i g n investment would s t i l l p o s s i b l y be regarded as f a v o u r a b l e development i n p u t . The n e g a t i v e r e c e p t i v i t y to f u t u r e FI by almost h a l f of the respon-dents, i n s p i t e of the m a j o r i t y consensus on the past c o n t r i ^ b u t i o n s of F I , c l e a r l y suggest t h a t the B.C. r e s i d e n t s want a - s t r u c t u r a l change i n investment p a t t e r n s . Overwhelmingly f a v o u r a b l e impressions of Japanese b u s i n e s s people i n d i c a t e t h a t the B.C. r e s i d e n t s ' major concern i s not over "from what country" but "how" the investment would be made. The growing r o l e of the government to d i r e c t such investment was d e s i r e d and the importance of development s t r a t e g i e s which c o u l d u t i l i z e F I t o i n c r e a s e e q u i t a b l e d i s t r i b u t i o n of b e n e f i t s were r e a l i z e d from t h i s i n i t i a l a n a l y s i s . 47 CHAPTER. IV CROSSrSECTIONAL ANALYSIS OF OPINIONS 4.1. I n t r o d u c t i o n Although i n d i v i d u a l s ' o p i n i o n s and p r e f e r e n c e s d i f f e r from one another, ;some u n d e r l y i n g u n i f o r m i t y i n the p a t t e r n of thought i s f r e q u e n t l y observed among groups of people w i t h s i m i l a r background. In the pr e v i o u s chapter, a t t i t u d i n a l d i f f e r e n c e s were examined from ''opinion leaders' 1 vs. the "general p u b l i c " viewpoint, which re p r e s e n t e d o n l y one c r o s s ^ • s e c t i o n of o p i n i o n s s o l i c i t e d from the survey. In order t o b r i n g the responses from B.C. r e s i d e n t s i n t o a c l e a r e r framework f o r p o l i c y i m p l i c a t i o n s , d i f f e r e n t p e r s -p e c t i v e s should be g i v e n to the a n a l y s i s of o p i n i o n s . In t h i s chapter, r e s u l t s of demographic c r o s s - s e c t i o n a l a n a l y s i s are presented w i t h the emphasis on p e r c e p t u a l d i f f e r e n c e s based on sex, age, education, income, l e n g t h o f r e s i d e n c e i n B.C., and nature of job s . These v a r i a b l e s were s e l e c t e d f o r the purpose of t e s t i n g the f o l l o w i n g hypotheses which were d e r i v e d from the o b s e r v a t i o n of p a s t r e l a t i o n s h i p s between F I p r o j e c t s and c e r t a i n segments of the p o p u l a t i o n . (a) S u b s t a n t i a l d i f f e r e n c e s of p e r c e p t i o n between male and female respondents were expected due to the nature of i n d u s t r i a l development. As many B.C. economists (Shearer, Pearse, Paterson, e t a l . ) have s t a t e d , B r i t i s h Columbia's economic growth has been h e a v i l y dependent on n a t u r a l resource e x p l o i t a t i o n . In any of these r e s o u r c e development schemes, 48 women have always remained e c o n o m i c a l l y m a r g i n a l . Since the nature of res o u r c e e x p l o i t a t i o n has been h i g h l y m a l e - o r i e n t e d , women's access to employment was l i m i t e d to i n d i r e c t j o b s . Not .only have women t r a d i t i o n a l l y b e n e f i t e d l e s s i n terms o f employment, they have s u f f e r e d more from the neg a t i v e e f f e c t s of development: overloaded community f a c i l i t i e s and s o c i a l d i s o r g a n i z a t i o n c r e a t e d by l a r g e i n f l o w s o f new migrants. (It i s assumed here t h a t women are more i n v o l v e d than t h e i r husbands i n community l i f e and t h e r e f o r e f e e l d i s r u p t i o n s more a c c u t e l y . ) These r a t h e r n e g a t i v e aspects o f women's s t a t u s i n i n d u s t r i a l development l e a d us to hypothesize t h a t female respondents w i l l have l e s s r e c e p t i v e a t t i t u d e s toward pres e n t form o f F I and possess a d i f f e r e n t s e t of development g o a l s compared w i t h the male c o u n t e r p a r t s . (b) The nature o f res o u r c e development i n B.C. has a l s o induced s u c c e s s i v e i n f l o w s of migrants from o u t s i d e of the pr o v i n c e mainly due to the d i f f i c u l t y to r e c r u i t s k i l l e d workers l o c a l l y r e q u i r e d f o r r e s o u r c e e x p l o i t a t i o n . As the m a j o r i t y o f these ventures have i n v o l v e d f o r e i g n p a r t i c i p a t i o n i n the pa s t , the r e l a t i o n s h i p between the l e n g t h of r e s i d e n c e i n B.C. and t h e i r d e s i r a b i l i t y o f F I was c o n s i d e r e d to be worth e x p l o r i n g . I f i t i s assumed t h a t m i g r a t i o n i s b a s i c a l l y caused by employment o p p o r t u n i t i e s i n res o u r c e areas,which was t r a d i t i o n a l l y b e l i e v e d to be the b a s i s of p o p u l a t i o n movement, o p p o r t u n i t y -seeking newcomers t o the p r o v i n c e should be more r e c e p t i v e to FI than o l d timers who have observed F I p r o j e c t s ' c o s t s and 49 b e n e f i t s t o the r e g i o n longer than these newcomers. I t was hypothesized, t h e r e f o r e , t h a t there would be an i n v e r s e r e l a t i o n s h i p between the l e v e l of r e c e p t i v e n e s s to f o r e i g n e n t e r p r i s e and the l e n g t h of r e s i d e n c e i n B.C. (c) Another important v a r i a b l e was the age f a c t o r . Older g e n e r a t i o n s were presumed t o show l e s s d e s i r a b l e a t t i t u d e s toward FI based on the assumption mentioned above, i . e . o l d timers i n B.C. would be l e s s w i l l i n g to accept f u r t h e r f o r e i g n investment. On the other hand, s i n c e the unemployment r a t e i s h i g h e r among the young, i t was expected t h a t younger ge n e r a t i o n s would be i n favour of F I , which c o u l d generate employment o p p o r t u n i t i e s . (d) Other v a r i a b l e s such as e d u c a t i o n , income and nature of jobs were i n c l u d e d i n the a n a l y s i s as these f a c t o r s were b e l i e v e d to i n f l u e n c e the scope of i n d i v i d u a l ' s awareness of FI to a s i g n i f i c a n t e x t e n t . The f i n d i n g s by each v a r i a b l e are presented i n s e c t i o n s 4.2 through 4.5. The aim of these a n a l y s e s i s not to p r o v i d e "hard" s t a t i s t i c a l data but to r e v e a l the m u l t i - d i m e n s i o n a l c h a r a c t e r of respondents' p r e f e r e n c e s . Hence, a t e n - p o i n t s c a l e of p r e f e r e n c e (used f o r the a n a l y s i s i n the p r e v i o u s chapter) i s aggregated i n two c a t e g o r i e s , "Agree" and "Disagree";. i n ^ t h i s ; case^.the c u t - o f f p o i n t i'sp,5.50. on a t e n ^ p o i n t s c a l e . 50 4.2. A t t i t u d i n a l D i f f e r e n c e s 1 by Sex As mentioned i n s e c t i o n 2.4,, the survey r e s u l t s showed a heavy c o n c e n t r a t i o n of male respondents i n the sample. T h i s d i s p r o p o r t i o n a t e r e p r e s e n t a t i o n o f male-female p o p u l a t i o n d i d not p r o v i d e a v a l i d cross - r-section of o p i n i o n s . However, since the a c t u a l decisionTinaking process i s predominated by males a t present, o v e r a l l a t t i t u d e s o b tained from the sample should be regarded as a f a i r p r e s e n t a t i o n o f B.C. o p i n i o n . Forty^one responses from female respondents (9% of the t o t a l sample) were examined i n order t o d e s c r i b e p r e f e r e n c e p a t t e r n s o f women. The c h a r a c t e r i s t i c s of female respondents i n d i c a t e t h a t more than 50% of (or 22) respondents had some or complete u n i v e r s i t y e d u c a t i o n . T h i r t y - o n e of them had l i v e d i n B.C. f o r more than nine years and f u r t h e r twenty-one of them had l i v e d i n the p r o v i n c e . a l l t h e i r l i v e s . Fourteen responses came from teachers (which c o n s t i t u t e d o n e - t h i r d o f t h e r r e s p o n s e s ) . Fourteen responses came from the Greater Vancouver r e g i o n . T h e i r responses are l i k e l y to r e f l e c t the o p i n i o n s of women wit h r e l a t i v e l y h i g h e d u c a t i o n a l t r a i n i n g . Since over o n e - t h i r d o f the respondents were engaged i n the f i e l d of educat i o n , responses might r e f l e c t the concern over the s o c i a l impact o f FI on l o c a l communities. Table XII summarizes r e a c t i o n of female respondents ( r e l a t i v e to males) to F I i n g e n e r a l and to some statements c o n c e r n i n g Japanese investment. Almost three q u a r t e r s of female respondents were aware of an excess amount of f o r e i g n 51 TABLE JKJ I R e a c t i o n to F l y Present and F u t u r e : By Male and Female Respondents (Figures i n b r a c k e t s are numbers of respondents.) Agree Disagree A. There i s too much f o r e i g n c a p i t a l b e i n g i n v e s t e d i n B.C. Male 54% (231) 46% (195) Female 72.5% ( 29) 27.5 ( 11) B. In g e n e r a l , f o r e i g n investment has been b e n e f i c i a l t o the economic development i n B.C. Male 84% (360) 16% ( 67) Female 88% ( 35) 12% ( 5) C. F o r e i g n investment has improved the q u a l i t y of l i f e i n B.C. Male 80% (339) 20% ( 86) Female 73% ( 30) 27% ( 11) D. B.C. Needs more investment from f o r e i g n c o u n t r i e s . Male 54% (220) 46% (190) Female 44% ( 17) 56% ( 22) E. Japanese bus i n e s s involvement i n the p r o v i n c e has i n c r e a s e d d i r e c t or i n d i r e c t employment o p p o r t u n i t i e s . Male 83.5% (353) 16.5% ( 70) Female 80% ( 32) 20% ( 8) F Japanese investment w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e . Male 80% (339) 20% ( 85) Female 80.5%( 33) 19.5%( 8) G. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y t o cause p o l i t i c a l f r i c t i o n i n the f u t u r e . Male 69% (291) 31% (132) Female 77.5%( 31) 22.5%( 9) H. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y to cause s o c i a l f r i c t i o n i n the f u t u r e . Male 54% (231) 46% (194) Female 67% ( 26) 33% ( 13) 52 c a p i t a l i n v e s t e d i n the p r o v i n c e . With regard to the e f f e c t s of F I , 88% o r 35 respondents acknowledged the c o n t r i b u t i o n of FI to economic development. However, the support g i v e n to i t s p o s i t i v e r e l a t i o n to the improvement of the q u a l i t y o f l i f e decreased to 73%, a 15% drop from the responses to the q u e s t i o n c o n c e r n i n g economic development. When these r e s u l t s are compared w i t h responses from men, i t i s c l e a r t h a t there i s a g r e a t e r tendency f o r women to doubt t h a t the q u a l i t y of l i f e has been improved by p a s t F I . T h i s probably e x p l a i n s women's g r e a t e r r e l u c t a n c e t o accept F I i n the f u t u r e . These f i n d i n g s a f f i r m e d the hypothesis t h a t women would be l e s s r e c e p t i v e than men toward F I . Opinions o f female respondents were c o r r e l a t e d c l o s e l y w i t h those o f male c o u n t e r p a r t s c o n c e r n i n g employment o p p o r t u n i t i e s generated by Japanese investment. They d i d not i n d i c a t e any adverse r e a c t i o n to Japanese investment per se, except f o r t h e i r a l e r t n e s s t o p o t e n t i a l p o l i t i c a l o r s o c i a l f r i c t i o n . Women's concern over the q u a l i t y o f l i f e and p r e d i c t i o n of h igh s o c i a l f r i c t i o n by f u t u r e Japanese investment seem to i n d i c a t e t h a t t h e i r development goals are s l i g h t l y d i f f -e rent from those of men, w i t h a st r o n g e r o r i e n t a t i o n toward the improvement of the s o c i a l environment. The f a c t t h a t t h e i r r e a c t i o n to the Japanese b u s i n e s s community was predominantly f a v o u r a b l e i n d i c a t e d t h a t the i n t r o d u c t i o n of a f o r e i g n 53 f a c t o r i n t h e i r community was q u i t e a c c e p t a b l e as long as both the p u b l i c s e c t o r and the i n v e s t o r would p r o v i d e enough f a c i l i t i e s t o accommodate the growth o f the community so t h a t development would not s t r a i n the pre s e n t human resou r c e s and i n f r a s t r u c t u r e c a p a c i t i e s . The p r o v i s i o n of s o c i a l f a c i l i t i e s and s e r v i c e s should be i n c o r p o r a t e d i n f u t u r e development plans i n o r d e r t o i n c r e a s e the l e v e l of s a t i s f a c t i o n among women. The p r o v i s i o n o f employment i s another f a c t o r which determines women's r e c e p t i v i t y to f u t u r e F I . T h e i r e x p e c t a t i o n s toward an i n c r e a s e i n job o p p o r t u n i t i e s a c c r u i n g from Japanese investment were as h i g h as those of men. (Although t h i s does not n e c e s s a r i l y mean t h a t they regarded themselves as p a r t o f f u t u r e labour f o r c e f o r F I p r o j e c t s , i t i s l i k e l y t h a t t h e i r responses have p o s i t i v e e x p e c t a t i o n s . ) Future i n v e s t o r s , t h e r e f o r e , should c o n s i d e r p r o v i d i n g job o p p o r t u n i t i e s f o r women i f they want h i g h e r r e c e p t i v e n e s s from women i n the p r o j e c t r e g i o n . 4.3. A t t i t u d i n a l D i f f e r e n c e by the Length of Residence i n B.C. Without doubt, f u t u r e investment p r o j e c t s w i l l have a c e r t a i n impact on s p a t i a l d i s t r i b u t i o n of migrants t o B.C. from e a s t e r n p r o v i n c e s as w e l l as from abroad. The e x p l a n a t i o n of t h i s impact, however, v a r i e s a c c o r d i n g to two d i f f e r e n t i n t e r p r e t a t i o n s of f u n c t i o n a l economic approaches to r e g i o n a l growth, namely a demand orientedt-model and .a-supply o r i e n t e d model. 54 The demand model r e c o g n i z e s t h e i m p o r t a n c e o f exogenous f a c t o r s as a g e n e r a t o r o f r e g i o n a l g r o w t h . T h i s m o d e l assumes t h a t t h e s u p p l y o f i n t e r n a l r e s o u r c e s , m a i n l y l a b o u r and c a p i t a l , i s p e r f e c t l y e l a s t i c t o meet t h e demand f r o m o u t s i d e o f t h e r e g i o n . The t r a d i t i o n a l a p p r o a c h t o r e g i o n a l d e v e l o p m e n t p l a n n i n g o f t e n a d o p t e d t h i s m o d e l, hence t h e main emphasis o f d e v e l o p m e n t s t r a t e g i e s c e n t r e d on i d e n t i f y i n g t h e p r o p u l s i v e i n d u s t r y w h i c h w o u l d c o n s e q u e n t l y p r o v i d e j o b o p p o r t u n i t i e s a n d c o n c o m i t a n t income i n c r e a s e t o t h e r e g i o n . I n t h e c o u r s e o f r e g i o n a l d e v e l o p m e n t i n B.C., t h i s n o t i o n o f a demand model has been p r e d o m i n a n t l y f a v o u r e d by p o l i c y makers and t h i s i s r e f l e c t e d i n t h e l a r g e i n f l o w s o f f o r e i g n c a p i t a l t o p r o v i d e s u c h i n d u s t r i e s t h r o u g h o u t t h e p r o v i n c e . On t h e o t h e r hand, t h e s u p p l y model o f r e g i o n a l g r o w t h assumes t h a t a r e g i o n ' s c a p a c i t y f o r g r o w t h i s d e t e r m i n e d l e s s by exogenous demand t h a n by t h e a v a i l a b i l i t y o f i n t e r n a l r e s o u r c e s - l a b o u r and c a p i t a l f l o w s -. I n o t h e r w o r d s , f a c -t o r f l o w s a r e a t t h e h e a r t o f t h e g r o w t h p r o c e s s and t h i s s u g g e s t l o o k i n g a t g r o w t h f r o m t h e i n p u t ( i . e . s u p p l y ) s i d e ( R i c h a r d s o n , 1974, p. 9 3 ) . T h i s s u p p l y i n t e r p r e t a t i o n o f r e g i o n a l g r o w t h seems r e l e v a n t t o e x p l a i n t h e g r o w t h o f t h e m e t r o p o l i t a n V a n c o u v e r a r e a . However, t h e n a t u r e o f e c o n o m i c d e v e l o p m e n t i n t h i s p r o v i n c e i n e v i t a b l y has t o cope w i t h t h e f i x e d l o c a t i o n a l f a c t o r , i . e . d e v e l o p m e n t must o c c u r where t h e n a t u r a l r e s o u r c e s i n demand a r e l o c a t e d , t h u s d e v e l o p m e n t s t r a t e g y has t o r e s p o n d t o t h e exogenous demand. I f i n t e r - r e g i o n a l 55 migration i s necessitated for the resourcerdeyelopment f i t i s e ssential to explore what new migrants' p r i o r i t i e s are, compared with old timers i n the province. The hypothesis presented i n 4.1, i s based on the notion of a demand-model that the people move to places where jobs e x i s t . The r e s u l t s of the analysis appear i n Table XIII. These r e s u l t s revealed that the people who had come to t h i s province i n recent years did not express high d e s i r a b i l i t y of FI as expected. They did not p a r t i c u l a r l y perceive FI as t h e i r potential source of employment, and t h e i r evaluation of i t s contribution to economic and s o c i a l development i s the lowest among a l l sub-groups. This somewhat i n d i f f e r e n t reaction from newcomers was contrasted with the group of "intermediate range" residents. The respondents who have l i v e d i n B.C. for 3-6 years seemed to become aware of the significance of FI to regional economic structure. The high d e s i r a b i l i t y again declined as the length of residence has extended. This i s possibly because the longer the people l i v e d i n B.C., they became more amenity-oriented (as basic economic needs were sa t i s f i e d ) and did not want any future FI which would not benefit them d i r e c t l y . The fact that hew migrants did not respond favourably could be interpreted i n two ways: The l i k e l y interpretation i s that they did not understand the connection between the employment opportunities and foreign investment. 56 TABLE .XIII R e a c t i o n to F I and Japanese Investment; By: the Length of Residence i n B.C. Agree Disagree A. There i s too much f o r e i g n c a p i t a l being i n v e s t e d i n the p r o v i n c e . 1-3 years (21) 48% 52% 3-6 (27) 44% 56% 6-9 (31) 48% 52% 9 and over (191) 52% 48% A l l l i f e (195) 62% 38% B. In g e n e r a l , f o r e i g n investment has been b e n e f i c i a l to the economic development i n B.C. , 1-3 years 81% 19% 3-6 89% 11% 6-9 90% 10% 9 and over 84% 16% A l l l i f e 84% 16% C. F o r e i g n investment has improved the q u a l i t y of l i f e i n B.C. 1-3 years 76% 24% 3-6 89% 11% 6-9 90% 10% 9 and over 79% 21% A l l l i f e 76% 24% D. B.C. needs more investment from f o r e i g n c o u n t r i e s . 1^3 years 48% 52% 3-6 58% 42% 6-9 45% 55% 9 and over 57% 43% A l l l i f e 49% 51% E. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y t o cause p o l i t i c a l f r i c t i o n i n the f u t u r e . 1-3 years 57% 43% 3-6 59% 41% 6-9 61% 39% 9 and over 69% 31% a l l l i f e 73% 27% 57 F, I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y to cause s o c i a l f r i c t i o n i n the f u t u r e . Agree Disagree 1-3 years 43% 57% 3-6 52% 48% 6-9 52% 48% 9 and over 55% 45% A l l l i f e 57% 43% Another i n t e r p r e t a t i o n i s t h a t they d i d understand the connection but.the. employment o p p o r t u n i t i e s were not n e c e s s a r i l y the major reason why people moved to t h i s p r o v i n c e . I f t h i s i s the case, the r e j e c t i o n of the h y p o t h e s i s , which was based on demand model of r e g i o n a l growth, i n d i c a t e s t h a t newcomers' a t t i t u d e s r e f l e c t the tendency of p o s t - i n d u s t r i a l s o c i e t y ; people move where the s o c i a l and environmental amenities can be ob t a i n e d . The n o t a b l e r e a c t i o n to Japanese investment by sub-groups, i l l u s t r a t e d a l s o i n Table X I I I , was t h a t the longer people l i v e d i n the p r o v i n c e , the more they were s e n s i t i v e to p o t e n t i a l p o l i t i c a l and s o c i a l f r i c t i o n due to Japanese investment. T h i s i s probably because the longttLme r e s i d e n t s were more aware of the f a c t t h a t present Japanese investment on l y b e n e f i t s a c e r t a i n segment of the p o p u l a t i o n than the respondents who had spent l e s s time i n the p r o v i n c e . The r e s u l t s i d e n t i f i e d i n t h i s s e c t i o n suggest t h a t the amenity f a c t o r may become an important determinant of f u t u r e r e c e p t i v e n e s s to FI among B.C. r e s i d e n t s . The p u b l i c s e c t o r should i n v e s t i g a t e backlog s o c i a l needs (inadequate s o c i a l s e r v i c e s and f a c i l i t i e s to meet the needs 58 of e x i s t i n g r e s i d e n t s ) as w e l l a,s expansionary needs (new s e r v i c e s and f a c i l i t i e s which would be needed to meet the needs of a l a r g e r p o p u l a t i o n ) i n order to r e v e r s e the d e c l i n i n g r e c e p t i v i t y w i t h the l e n g t h of r e s i d e n c e i n the p r o v i n c e . 4.4. R e c e p t i v i t y D i f f e r e n c e s by Age Group Respondents' age d i s t r i b u t i o n i s one of the important v a r i a b l e s which may have an i n f l u e n c e on o p i n i o n formation. F i g u r e 4 i l l u s t r a t e s a c o r r e l a t i o n e x i s t i n g between respon^ dents': age and t h e i r r e c e p t i v i t y to F I . FIGURE 4 "B.C. needs more investment from f o r e i g n countries.": By Age Group  Agree 100% 50% 15-19 20-24 25-29 30-34 ( 3)* (26) (56) (72) 35-49 50-59 60 & over (157) (85) (58) *Numbers i n b r a c k e t s i n d i c a t e the number sampled i n each age group. Respondents from the o l d e s t age c o h o r t showed the h i g h e s t acceptance (69% agreeing w i t h the statement) of f u t u r e F I , 59 then acceptance l e v e l s d e c l i n e d s t e a d i l y corresponding to younger age groups. More than 50% of respondents over the age of t h i r t y b e l i e v e d t h a t B.C. needs more F I i n the f u t u r e . The p r o j e c t i o n o f a f u t u r e r e c e p t i v i t y t r e n d based on t h i s f i g u r e w i l l vary, depending on two d i f f e r e n t assumptions: (1) I f i t i s assumed t h a t each i n d i v i d u a l ' s c u r r e n t p r e f e r e n c e p a t t e r n does not change over time, the r e c e p t i v i t y to FI w i l l become lower than the p r e s e n t l e v e l w i h i n a few decades and w i l l c o ntinue to d e c l i n e as the younger g e n e r a t i o n moves to o l d e r age groups and forms the core of the working f o r c e . (2) I f people's p r e f e r e n c e s change over time, and a s l i g h t o p i n i o n t r a n s f o r m a t i o n process occurs i n the neighbourhood of age 30-34, the r e c e p t i v i t y curve may w e l l stay as i t i s i n the f u t u r e . A p o s i t i v e c o r r e l a t i o n observed between acceptance of f u t u r e FI and the age d i s t r i b u t i o n of the'--sample, i . e . as age, on the X a x i s , s h i f t s to the r i g h t , d e s i r a b i l i t y of FI on the Y a x i s s h i f t s upward, appears to r e s u l t i n the r e j e c t i o n of the h y p o t h e s i s presented i n the i n t r o d u c t i o n of t h i s chapter. The h i g h acceptance expressed by o l d e r c o h o r t s c o u l d be i n t e r p r e t e d as r e f l e c t i n g the m e n t a l i t y of the g e n e r a t i o n s who came to the West, seeking new oppor-t u n i t i e s and m a t e r i a l wealth. Black (1968) e x p l a i n e d these m a t e r i a l l y o r i e n t e d B r i t i s h Columbians as f o l l o w s : E x p l a n a t i o n s f o r t h i s m a t e r i a l i s m may be found, i n p a r t , i n the c h a r a c t e r of the p r o v i n c e as a .continuously e v o l v i n g f r o n t i e r w i t h a f r o n t i e r 60 p o p u l a t i o n f a f r o n t i e r economy, and a f r o n t i e r type of p o l i t i c s . ., They were i s o l a t e d , p a r o c h i a l , moneys-seeking, and a l l were r e c e n t immigrants- most of them with some education and r a i s e d i n r e l a t i v e l y c i v i l i z e d communities. I t was c l a r i f i e d i n the p r e v i o u s chapter t h a t the m a j o r i t y of the respondents a s s o c i a t e d FI w i t h economic c r i t e r i a i n terms of h i g h e r income l e v e l s and the p r o v i s i o n o f employment. I t was obvious from t h i s a n a l y s i s t h a t the o l d e r c o h o r t s s t i l l m a i n t a i n a p o s i t i v e a t t i t u d e toward economic b e n e f i t s from F I , w h i l e the v a l u e system o f the younger g e n e r a t i o n might have s h i f t e d to more concern withiaie p o l i t i c a l and s o c i a l impact of F I . Responses from young people i n d i c a t e d l e s s r e c e p t i v e a t t i t u d e s toward F I . Table XIV summarizes r e a c t i o n to some aspects of Japanese investment. The responses from the 20-24 c o h o r t suggests the lowest support to f u t u r e employment o p p o r t u n i t i e s by Japanese investment. The same age group p r e d i c t e d h i g h p o l i t i c a l and s o c i a l f r i c t i o n was l i k e l y to occur as a r e s u l t of f u t u r e Japanese b u s i n e s s involvements i n B.C. As f a r as the r e a c t i o n s from the younger g e n e r a t i o n s are concerned the assumption presented i n the i n t r o d u c t i o n was r e j e c t e d because young c o h o r t s showed the l e a s t w i l l i n g a t t i t u d e s to accept both FI i n g e n e r a l and Japanese investment. These a t t i t u d e s a g a i n s t any form o f investment from f o r e i g n c o u n t r i e s are l i k e l y to.be an i n d i c a t o r of growing concern among young people over p o s s i b l e f o r e i g n c o n t r o l i n every 61 s e c t o r of. the economy. I f t h i s awareness i s the m a n i f e s t a t i o n of the changing v a l u e system which p l a c e s more emphasis on Canadian economic independence and the e s t a b l i s h m e n t of a Canadian way of l i f e without f o r e i g n i n f l u e n c e i n her economy, the m e n t a l i t y of B r i t i s h Columbians has c e r t a i n l y changed over the decades. Unless the government and i n v e s t o r s attempt to change the p r e s e n t investment s t r u c t u r e , the f u t u r e r e c e p t i v i t y t r e n d i s most l i k e l y to f o l l o w the assumption (1). T h i s would r e p r e s e n t a s t r u c t u r a l s h i f t i n p r e f e r e n c e s toward F I . I f , however, t h e i r r e l u c t a n c e was based on the ignorance of the r e l a t i o n s h i p between FI and employment o p p o r t u n i t i e s , then i t i s p o s s i b l e t h a t the second process (an o p i n i o n t r a n s f o r m a t i o n process) w i l l take p l a c e i n the f u t u r e . 4.5. The Impact o f E d u c a t i o n , Income, and Nature of Jobs on  R e c e p t i v i t y 4.5.1. I n f l u e n c e of E d u c a t i o n a l Background on Opinions The a n a l y s i s based on d i f f e r e n t e d u c a t i o n a l background r e v e a l e d t h a t respondents l i m i t e d t o elementary school education possessed s t r o n g n e g a t i v e r e a c t i o n s to the c u r r e n t FI s i t u a t i o n . F i g u r e s presented i n T a b l e XV i n d i c a t e t h a t nine out of ten respondents from t h i s p a r t i c u l a r sub-group b e l i e v e d t h a t t h e r e was too much f o r e i g n c a p i t a l b e i n g i n v e s t e d i n B.C. Responding to a t t i t u d i n a l statements concerning Japanese investment, those w i t h l e s s formal e d u c a t i o n showed the lowest e x p e c t a t i o n r e g a r d i n g f u t u r e employment o p p o r t u n i t i e s which might be c r e a t e d by Japanese bus i n e s s involvement. They 62 TABLE x i y Reaction to Future Japanese Investment; By Age Group Agree Disagree A. Japanese business involvement i n the province has increased d i r e c t or i n d i r e c t employment opportunities. 20-24 years old 84% 25-29 80% 30-34 86% 35-49 85% 50-59 76% 60 and over 85% B. Japanese investment w i l l increase l o c a l employment opportunities i n the future. 20-24 69% 25-29 83% 30-34 86% 35-49 79% 50S59 76% 60 and over 80% C. Increasing Japanese investment i n B.C. i s l i k e l y to cause p o l i t i c a l f r i c t i o n i n the future. 20-24 76% 25-29 73% 30-34 67% 35-49 70% 50-59 69% 60 and over 68% D. Increasing Japanese investment i n B.C. i s l i k e l y to cause s o c i a l f r i c t i o n in the future. - n-.">.' 20-24 69% 25-29 53% 30-34 57% 35-49 54% 50-59 53% 60 and over 56% E. Japanese firms i n B.C. are more l i k e l y to corporatecwith the p r o v i n c i a l government than are Canadian companies. 20-24 25-29 30-34 35-49 50-59 60 and 84% 77% 76% 76% 78% 16% 20% 14% 15% 24% 15% 31% 17% 14% 21% 24% 20% 24% 27% 33% 30% 31% 32% 31% 47% 43% 46% 47% 44% 1.65 235 245 245 22'-over 63 a l s o p r e d i c t e d the h i g h e s t p o t e n t i a l f r i c t i o n s caused by-Japanese i n v e s t o r s among a l l sub-groups. One way of i n t e r p r e t i n g the r e s u l t s i s t h a t the people of t h i s sub-group d i d not p e r c e i v e FI as an employment generator f o r them; r a t h e r , they seemed t o p e r c e i v e d F I as something unknown and of p o t e n t i a l t h r e a t to t h e i r communities. Since l e s s educated people tend to have l i m i t e d channels of i n f o r m a t i o n , l a c k of s u f f i c i e n t knowledge o f t e n leads to adverse r e a c t i o n to f o r e i g n f a c t o r s i n t h e i r communities. P o l i c y Implication;:; I t i s e s s e n t i a l to ensure t h a t the members of the l o c a l community, who w i l l be a f f e c t e d by new f o r e i g n investment p r o j e c t s , be c o n s u l t e d and p r o v i d e d s u f f i c i e n t i n f o r m a t i o n concerning the impacts and outcomes of the p r o j e c t s . T h i s process should e r a d i c a t e unnecessary f r i c t i o n between l o c a l communities and i n v e s t o r s . Responses from the people with.less formal e d u c a t i o n to q u e s t i o n s on the p o t e n t i a l f o r Japanese investment c l a r i f i e d t h e i r n e g a t i v e r e a c t i o n to the present FI s i t u a t i o n . Since t h i s sub-group tends to be overlooked i n any decision-making pr o c e s s , they h a r d l y b e n e f i t from any FI p r o j e c t i n terms of employment o p p o r t u n i t i e s . T h e i r i n d i f f e r e n c e toward f u t u r e i n c r e a s e of employment o p p o r t u n i t i e s by Japanese investment c e r t a i n l y r e f l e c t e d the f e e l i n g of d e p r i v e d o p p o r t u n i t y , which i n t u r n c o u l d c r e a t e adverse r e a c t i o n to F I . TABLE XV R e a c t i o n t o F I and Japanese I n v e s t m e n t , P r e s e n t and F u t u r e : by E d u c a t i o n a l B a c k g r o u n d No. o f S. 3 S. 5 S. 6A S. 7 E d u c a t i o n Responses A g r e e D i s a g r e e A g r e e D i s a g r e e A g r e e D i s a g r e e A g r e e D i s a g r e e E l e m e n t a r y 10 90% 10% 90% 10% 80% 20% 50% ; 50% ;6 (some, F i n i s h e d ) S e c o n d a r y 131 54% 46% 84% 16% 80% 20% 51% 49% (Some, F i n i s h e d ) V o c a t i o n a l 103 62% 38% 81% 19% 74% 26% 55% 45% (Some, F i n i s h e d ) U n i v e r s i t y 226 52% 48% 87% 13% 81% 19% 53% 43% (Some, F i n i s h e d ) S.13 S. 14 S. 15 S.16 E d u c a t i o n A g r e e D i s a g r e e A g r e e D i s a g r e e . Agree D i s a g r e e A g r e e D i s a g r e e E l e m e n t a r y 60% 40% 30% 70% 89% 11% 100% 0% S e c o n d a r y 79% 21% 76.5% 23.5% 72% 28% 61.5% 38.5% V o c a t i o n a l 82.5% 17.5% 83% 17% 67% 33% 50% 50% U n i v e r s i t y 86% 14% 83% 17% 68% 32% 52% 48% Statements 3. T h e r e i s t o o much f o r e i g n c a p i t a l b e i n g i n v e s t e d i n B.C. 5. I n g e n e r a l , f o r e i g n i n v e s t m e n t has been b e n e f i c i a l t o t h e economic d e v e l o p m e n t i n B.C. 6 A . F o r e i g n i n v e s t m e n t has i m p r o v e d t h e q u a l i t y o f l i f e i n B.C. 7. B.C. needs more i n v e s t m e n t from f o r e i g n c o u n t r i e s . S t a t e m e n t s 13. J a p a n e s e b u s i n e s s i n v o l v e m e n t i n t h e p r o v i n c e has i n c r e a s e d d i r e c t o r i n d i r e c t employment o p p o r t u n i t i e s . 14. J a p a n e s e i n v e s t m e n t w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n t h e f u t u r e . 15. I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y t o c a u s e p o l i t i c a l f r i c t i o n i n t h e f u t u r e . 16. I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y t o c a u s e s o c i a l f r i c t i o n i n t h e f u t u r e . 4.5.2. Income D i f f e r e n c e s Table XVI summarizes the r e s u l t s by d i f f e r e n t income groups. The group of respondents w i t h income of $25,000 and over, which accounted f o r more than o n e - t h i r d of the sample, was predominantly i n favour o f F I as w e l l as of Japanese investment. On the c o n t r a r y , responses from the income group of $12,000 - 14,999 gave the lowest e v a l u a t i o n to a l l the statements. The d e s i r a b i l i t y of f u t u r e FI t r a c e d out an "U" - shape, as the h i g h e s t and the lowest income groups showed p o s i t i v e r e c e p t i v e n e s s (Figure 5). FIGURE 5 "B.C. needs more investment from f o r e i g n c o u n t r i e s . " :  By Income L e v e l s Agree 100% 70% $0-- • $12,000- $15,000- $20,000- $25,000 $11,999 $14,999 $19,999 $24,000 and over The h i g h r e c e p t i v i t y expressed from the h i g h e s t income group corresponds w i t h the c o n c l u s i o n drawn from the a n a l y s i s TABLE XVI Re a c t i o n to F I and Japanese Investment: By Income L e v e l s Income No. o f R e s p o n s e s S. 3 S. 5 S . 6A S .7 A g r e e D i s a g r e e A g r e e D i s a g r e e A g r e e D i s a g r e e A g r e e D i s a g r e e $0 - $11,999 71 56% 44% 82% 18% 73% 27% 57% 43% $12,000 - $14,999 73 66% 34% 76% 24% 71% 29% 37% 63% $15,000 - $19,999 83 61% 39% 84% 16% 78% 22% 48% ; 52% $20,000 - $24,999 79 60% 40% 83% 17% 79% 21% 49% 51% $25,000 an d o v e r 140 45% 55% 94% 6% 86% 14% 64% 36% S-13 S.14 S.15 S.16  A g r e e D i s a g r e e A g r e e D i s a g r e e A g r e e D i s a g r e e A g r e e D i s a g r e e $0 - $11,999 84% 16% 80% 20% 68% 32% 59% 41% $12,000 - $14,999 75% 25% 67% 33% 78% " 22% 62% 38% $15,000 - $19,999 88% 12% 81% 19% 71% 29% 48% 52% $20,000 - $24,999 79% 21% 78% 22% 74% 26% 54% 46% $25,000 a n d o v e r 83% 12% 87% 13% 63% 37% 53% 47% 67 the p r e v i o u s chapter: The past b e n e f i c i a r i e s of FI were mostly c o n c e n t r a t e d i n both p r o v i n c i a l and l o c a l b u s i n e s s groups. Responses from the lowest income groups show t h e i r e x p e c t a t i o n s toward f u t u r e FI as an income or employment generator. 4.5,3, A n a l y s i s by Nature o f Jobs The Gray Report (1972) s t a t e d one of the neg a t i v e e f f e c t s of F I on income d i s t r i b u t i o n as f o l l o w s : Where f o r e i g n investment i s p a r t i c u l a r l y c a p i t a l i n t e n s i v e i n nature, as has been the case i n many resource e x t r a c t i o n and p r o c e s s i n g i n d u s t r i e s , l a b o u r ' s share o f the value added may be r e l a t i v e l y s m a l l i n comparision w i t h t h a t enjoyed byy the owners of the c a p i t a l . In view of the f a c t t h a t B r i t i s h Columbia's economic growth has been h e a v i l y dependent on n a t u r a l r e s o u r c e e x t r a c t i o n which i n v i t e d s u c c e s s i v e i n f l o w s of f o r e i g n c a p i t a l , unequal d i s t r i b u t i o n o f income between labour and owners of the c a p i t a l should have c r e a t e d dichotomized o p i n i o n s toward F I . Although the p o l a r i t y of o p i n i o n s was a l r e a d y observed between p r o v i n c i a l b usiness l e a d e r s and union r e p r e s e n t a t i v e s , an attempt was made here to c a t e g o r i z e the nature of respondents' jobs i n t o two major groups, namely "white c o l l a r " and "blue c o l l a r " workers. Respondents whose jobs were r e l a t e d t o managerial, n a t u r a l s c i e n c e , s o c i a l s c i e n c e , r e l i g i o n , e ducation, medicine, a r t , c l e r i c a l , s e r v i c e and s a l e s p o s i t i o n s were c l a s s i f i e d as "white c o l l a r " workers. Others whose jobs were r e l a t e d to a g r i c u l t u r e , f i s h i n g , mining, p r o c e s s i n g , f o r e s t r y , f a b r i c a t i n g , c o n s t r u c t i o n , t r a n s p o r t a t i o n , mechanical o p e r a t i o n and m a t e r i a l h a n d l i n g were c l a s s i f i e d as "blue c o l l a r " workers. 68 Tahle JXyil i l l u s t r a t e s the r e s u l t s by these two groups. Blue c o l l a r workers showed a l e s s r e c e p t i v e r e a c t i o n toward FI i n g e n e r a l and a l s o i n d i c a t e d a l e s s e r degree of acceptance of the n o t i o n t h a t employment c r e a t i o n accrues from Japanese investment. T h i s r e c e p t i v i t y d i f f e r e n c e can be e x p l a i n e d i n s e v e r a l d i f f e r e n t ways. One i n t e r p r e t a t i o n i s t h a t the b l u e c o l l a r workers p e r c e i v e d unequal d i s t r i b u t i o n of income between labour and owners o f the c a p i t a l d e s c r i b e d above. Another i s t h a t non-unionized l o c a l labour f o r c e tend to be l e f t out from the job market w h i l e the union members are g i v e n the p r i o r i t y i n o b t a i n i n g new jobs'," , The: low r e c e p t i v i t y . , from; the b l u e c o l l a r work f o r c e might have r e f l e c t e d t h i s unequal access to jobs among l o c a l r e s i d e n t s . A f i n a l i n t e r p r e t a t i o n i s t h a t the l o c a t i o n a l f a c t o r , e x p l a i n e d below might have i n f l u e n c e d the d i s c r e p a n c y of o p i n i o n s . As Pearse (1975) p o i n t e d out, n a t u r a l resource based i n d u s t r i e s i n e v i t a b l y develop near to n a t u r a l r e s o u r c e s themselves. Regional d i s t r i b u t i o n of a c t i v i t i e s , t h e r e f o r e , i s determined mainly by n a t u r a l endowment, w h i l e t h e i r a s s o c i a t e d t e r t i a r y a c t i v i t i e s tend to be c o n c e n t r a t e d i n the nodal c e n t r e of Vancouver. The l i k e l y phenomenon i s t h a t i f one job i s c r e a t e d i n the r e s o u r c e f r o n t i e r , i t would .create more, jobs i n t e r t i a r y a c t i v i t y i n the metropolis.''" "4forota (1974) e x p l a i n e d t h i s phenomenon i n Japanese i n d u s t r i a l development s i t u a t i o n as follows:"When one job i s c r e a t e d i n a r e g i o n a l new town, i t c r e a t e s more jobs i n the t e r t i a r y i n d u s t r y i n the m e g a l o p o l i s . T h e r e f o r e , the p o l i c y to promote r e g i o n a l i n d u s t r i a l development without d e c e n t r a l i z i n g the headquarters' f u n c t i o n s i n Tokyo a c c e l e r a t e s the t r i c k l e - u p e f f e c t and l e a d s to more p o p u l a t i o n growth i n the m e g a l o p o l i s . " ( D a i t o s h i Selsaku, - P o l i c y f o r the M e g a l o p o l i s - , p.22). TABLE XVII Reaction to FI and Japanese Investment: By Nature of Jobs No. of S. 3 S. 5 S. 6A S. 7  Nature of Jobs Responses Agree Disagree Agree Disagree Agree Disagree Agree Disagree White C o l l a r 324 53% 47% 87% 13% 81% 19% 55% 45% Blue C o l l a r 74 64% 36% 80% 20% 77% 23% 45% 55% S.13 (3^ 14 S.15 S.16  Nature of Jobs Agree Disagree Agree Disagree Agree Disagree Agree Disagree White C o l l a r 85% 15% 82% 18%6 69% 31% 53% 47% Blue C o l l a r 75% 25% 75% 25% 81% 19% 61% 3S% 70 Consequently, more employment o p p o r t u n i t i e s and concomitant amenities as a r e s u l t of FI are c o n c e n t r a t e d i n the metro^ p o l i s , b e n e f i t i n g the white c o l l a r workers. The s k i l l e d blue c o l l a r workers have to stay i n the h i n t e r l a n d where l e s s urban amenities a r e o b t a i n a b l e . The impact o f t h i s i n d u s t r i a l mechanism, which tends ; to c r e a t e a dichotomized l a b o u r : f o r c e , on_the r e s i d e n t s ' " a t t i t u d e s seem t o - b e ' r e f l e c t e d i n the responses. 4 . 6 . Summary and C o n c l u s i o n ; Most proponents of FI emphasize the major r e g i o n a l b e n e f i t s of FI i n terms of g e n e r a t i n g employment and h i g h e r r e g i o n a l income l e v e l s . The r e s u l t s of a n a l y s i s presented i n t h i s chapter i n d i c a t e d t h a t these b e n e f i t s have not been d i s t r i -buted e q u i t a b l y among s o c i e t a l sub-groups. I t was a l s o r e v e a l e d t h a t the e x p e c t a t i o n s of c e r t a i n segments of B.C. s o c i e t y were not r e a l i z e d by t h i s t r a d i t i o n a l understanding of b e n e f i t s a c c r u i n g from F I . The f o l l o w i n g three f a c t o r s were i d e n t i f i e d as major causes of o p i n i o n d i f f e r e n c e s . Employment O p p o r t u n i t i e s . The l e s s f a v o u r a b l e a t t i t u d e s toward F I i n d i c a t e d by women, o l d time r e s i d e n t s , younger c o h o r t s , people w i t h l e s s formal e d u c a t i o n , may r e f l e c t t h a t these groups d i d not b e n e f i t from employment o p p o r t u n i t i e s generated by past FI p r o j e c t s . D i s t r i b u t i o n o f B e n e f i t s from Resource E x p l o i t a t i o n . In B r i t i s h Columbia, where F I i s p a r t i c u l a r l y c a p i t a l - i n t e n s i v e , l a b o u r ' s share of the value added may be r e l a t i v e l y small i n 71 comparison w i t h t h a t enjoyed by the owners of the c a p i t a l . T h i s c a p i t a l r - i n t e n s i y e nature o f F I , t h e r e f o r e , o f t e n exacerbated s p a t i a l and s o c i a l i n e q u i t i e s . Opinion discrer-p a n cies between "blue c o l l a r ' 1 and "white c o l l a r " workers, and among v a r i o u s income groups suggest t h a t the problem of d i s t r i b u t i o n of b e n e f i t s from n a t u r a l r e s o u r c e e x p l o i t a t i o n i s a major f a c t o r determining t h e i r r e c e p t i v e n e s s to F I . /Amenities - Q u a l i t y of L i f e . One of the shortcomings of past F I schemes was the l a c k of c o n s i d e r a t i o n g i v e n to s o c i a l environment of the d i r e c t l y a f f e c t e d r e g i o n . For women, the d e s i r a b l e goals of development o b v i o u s l y l i e i n the improvement i n the q u a l i t y of l i f e (as w e l l as the p r o v i s i o n of j o b s ) . T h e i r concerns seem t o be d i r e c t e d t o s o c i a l aspect o f development which would a f f e c t the community l i f e . The i m p l i c a t i o n t h e r e f o r e i s t h a t the p u b l i c s e c t o r should come up w i t h s p e c i f i c and t a n g i b l e programmes r e l a t i n g to the improvement of s o c i a l s e r v i c e s and f a c i l i t i e s i n order t o i n c r e a s e the l e v e l o f s a t i s f a c t i o n from FI among female r e s i d e n t s . The a n a l y s i s by the l e n g t h of r e s i d e n c e i n B.C. a l s o i n d i c a t e s the amenity f a c t o r w i l l become an important determinant of f u t u r e r e c e p t i v e n e s s of FI among the r e s i d e n t s . The c o n s i s t e n t n e g a t i v e a t t i t u d e s among young people may i n d i c a t e t h e i r changing v a l u e system which supports Canadian economic independence. However, there was no p o s i t i v e proof f o r t h i s i n t e r p r e t a t i o n o f p o l i t i c a l o r i e n t a t i o n of the young respondents. 72 I f we assume tha^t the n a t u r a l resource-based i n d u s t r i a l s t r u c t u r e of the p r o v i n c i a l economy- w i l l not change i n the s h o r t run, a d i f f e r e n t p o l i c y mix should be i n t r o d u c e d i n order to i n c r e a s e the l e v e l of s a t i s f a c t i o n of more people and to narrow the gap of o p p o r t u n i t i e s among d i f f e r e n t s o c i e t a l sub-groups. The p o l i c y change should r e f l e c t the causes of o p i n i o n d i s c r e p a n c i e s among these sub-groups i d e n t i f i e d i n t h i s c r o s s - s e c t i o n a l a n a l y s i s . Because of i t s resource based-economy, B.C. has developed a s p a t i a l p a t t e r n of m e t r o p o l i s and dependent h i n t e r l a n d . T h i s s p a t i a l form of settlements should have a c e r t a i n impact on people's p e r c e p t i o n of f o r e i g n investment s i n c e FI helped and a c c e l e r a t e d the process of t h i s form. In the next chapter, the responses w i l l be analyzed by g e o g r a p h i c a l areas i n o r d e r to p r o v i d e another i n s i g h t t o the i s s u e . 73 CHAPTER y RECEPTIVITY DIFFERENCES AMONG B.C. SUB-REGIONS 5.1. I n t r o d u c t i o n The nine economic sub-regions i n B.C. have c h a r a c t e r i s t i c s and problems r e p r e s e n t a t i v e of re g i o n s i n v a r i o u s stages of development. From the Lower Mainland, where the p o p u l a t i o n and economic a c t i v i t i e s are h e a v i l y c o ncentrated, to the s p a r s e l y populated n o r t h , these sub-regions show the marked d i v e r s i t y i n both geographic and demographic composition. Since each sub-region possesses i t s own development goals and o b j e c t i v e s (though they are r a r e l y e x p l i c i t ) which b e s t s u i t r e g i o n a l c h a r a c t e r i s t i c s , responses from d i f f e r e n t sub-regions should r e f l e c t r e g i o n a l p r e f e r e n c e s concerning F I . In t h i s c h apter, r e g i o n a l d i f f e r e n c e s i n a t t i t u d e s toward F I w i l l be approached i n t h r e e ways. The r e s u l t s should i d e n t i f y some c o r r e l a t i o n s between the stages o f r e g i o n a l development and s o c i a l r e c e p t i v i t y to F I . F i r s t l y , responses from the Greater Vancouver and the r e s t of the p r o v i n c e w i l l be analyzed i n the con t e x t o f the m e t r o p o l i s - h i n t e r l a n d concept which had been developed s i n c e the 1950's by authors such as Frank, Myrdal, Hirschman, and Friedmann. Secondly, a t t i t u d i n a l d i f f e r e n c e s among nine economic sub-regions w i l l be compared w i t h Robock 'and Simmonds'* U-curve h y p o t h e s i s presented i n the i n t r o d u c t o r y chapter. T h i r d l y , a comparative a n a l y s i s of th r e e sub-regions w i t h s i m i l a r r e g i o n a l c h a r a c t e r i s t i c s , two of which have 74 a l r e a d y observed i n f l o w s of FI and another without FI (and s t i l l i n an e a r l y stage o f development) f w i l l be c a r r i e d out based on the f i n d i n g s o f the second stage of a n a l y s i s . T h i s l a t t e r type of a n a l y s i s focuses on the r e l a t i o n s h i p between the amount of FI and r e c e p t i v e n e s s of host r e g i o n s . 5.2. M e t r o p o l i s vs. H i n t e r l a n d Approach A c c o r d i n g to the r e g i o n a l growth model presented by Hirschman (1958), i n t e r r e g i o n a l i n e q u a l i t y of growth i s an i n e v i t a b l e c o n d i t i o n of growth i t s e l f . In order to l i f t the r e g i o n a l economy to h i g h e r income l e v e l s , development u s u a l l y occurs i n one or s e v e r a l growth p o l e s o f economic strength.''" Since these po l e s of development do not spread evenly over space but i n f a c t are i n t i m a t e l y r e l a t e d to urban c e n t r e s , p o l a r i z a t i o n of growth among r e g i o n s most f r e q u e n t l y r e s u l t s i n m e t r o p o l i s - h i n t e r l a n d s t r u c t u r e s . The d i s t r i b u t i o n p a t t e r n s of p o p u l a t i o n and economic a c t i -v i t i e s i n B.C. i n d i c a t e s t h a t the m e t r o p o l i s - h i n t e r l a n d r e l a t i o n s h i p s t i l l e x i s t between Greater Vancouver(-;Victoria) 2 and the r e s t o f the p r o v i n c e . The Greater Vancouver r e g i o n reached a p o p u l a t i o n of 1,134,000 i n 1974, which accounted f o r ^ The concept of "growth p o l e s " ("pole de c r o i s s a n c e " ) f o r b oth r e g i o n a l and s e c t o r a l growth was f i r s t developed by F.Perroux(1955) and then by J.R. B o u d e v i l l e (1957). Hirschman's p o l a r i z a t i o n growth model presented here i s the d e r i v a t i v e o f t h i s concept, w i t h an emphasis on s p a t i a l r a m i f i c a t i o n s of growth p o l e s . 2 I t has to be c l e a r t h a t the two concepts of r e g i o n a l c o n c e n t r a t i o n ( o f income and p o p u l a t i o n ) and r e g i o n a l income per c a p i t a l d i f f e r e n t i a l s need not converge (Williamson, 1965). Here, the former concept i s a p p l i e d i n e x p l a i n i n g r e g i o n a l i n e q u i t y w i t h i n the p r o v i n c e of B.C. 75 4 7% of the t o t a l p r o v i n c i a l p o p u l a t i o n of 2,395,000 (Survey of Markets 1974-75, p.41). The 1971 census showed t h a t 50% of the gross v a l u e o f f a c t o r y shipments was produced i n the 3 m e t r o p o l i t a n Vancouver. T h i s measurement, however, does not r e p r e s e n t the r e g i o n a l economic s t r u c t u r e i n Greater Vancouver. As Davis's (1974) study of the m e t r o p o l i t a n Vancouver economy r e v e a l e d , the r e g i o n ' s economy has a s t r o n g t e r t i a r y o r i e n t a t i o n . T e r t i a r y a c t i v i t y - T r a n s p o r t a t i o n and Trade, Finance, Insurance and Real E s t a t e , and Services-comprises)two-thirds of the r e g i o n ' s employment and account f o r n e a r l y 60% of the economy's p a y r o l l . Manufacturing, w i t h o n l y 19% of r e g i o n a l employment, accounts f o r 4 9% of a l l e x p o r t s . Compared w i t h the economic s t r u c t u r e of most ot h e r sub-r e g i o n s , where the r a t i o s of primary.and secondary i n d u s t r i e s i n the r e g i o n a l economy are much h i g h e r , i t became apparent t h a t the B.C. economy has the appearance of a major c i t y w i t h i t s h i n t e r l a n d . The formation of t h i s r e l a t i o n s h i p c o u l d be e x p l a i n e d on the h i s t o r i c a l c ontext of r e g i o n a l growth. B r i t i s h Columbia's r e g i o n a l economy has been h i g h l y dependent on r e s o u r c e e x t r a c t i v e i n d u s t r i e s . I t s economic growth began w i t h the f u r t r a d e i n the e i g h t e e n t h century and had continued to prosper ever s i n c e by e x p o r t i n g raw m a t e r i a l s from the r e g i o n . Successive e x p l o r a t i o n of m i n e r a l resources i n the 19th century, s t a r t i n g from c o a l e x t r a c t i o n i n Vancouver I s l a n d i n 1836 which f o l l o w e d by g o l d , copper, 3 •fin 1971, gross value o f f a c t o r y shipments o r i g i n a t i n g i n Greater Vancouver amounted to $2,112,067,000, which accounted f o r 49.8 p e r c e n t o f the p r o v i n c i a l t o t a l v a l u e of $4,235,968,000 (Survey of Markets 1974-75, p.45). 76 z i n c , and l e a d , e s t a b l i s h e d and r e g i o n ' s p r o s p e r i t y w i t h a comparative advantage. When the growth of a r e g i o n occurs due to the e x t r a -r e g i o n a l market demand f o r raw m a t e r i a l s , the growth p a t t e r n i s d e s c r i b e d by the export base growth model (or a " s t a p l e 4 t h e o r y " ) . Entrepreneurs brought i n t r a n s p o r t a t i o n to e x p l o i t r e s o u r c e s . The completion of the Canadian P a c i f i c Railway to Vancouver i n 1889 determined the l i n k a g e between the major p o r t and the r e s o u r c e s i t e s i n the i n t e r i o r of B.C. Vancouver grew as a t r a d i n g c e n t r e through which B.C. raw m a t e r i a l s were exported t o the U n i t e d Kingdom, the European c o n t i n e n t and the U.S.A. The opening of the Panama Canal f u r t h e r a c c e l e r a t e d the advantages of B.C. raw m a t e r i a l s i n the i n t e r n a t i o n a l market. Since B.C. had a small p o p u l a t i o n or income base wi t h a l i m i t e d b a s i c i n f r a s t r u c t u r e to support such economic develop-ment, the p r o v i n c e i n v i t e d a l a r g e i n f l o w of f o r e i g n c a p i t a l f o r the r e s o u r c e e x t r a c t i o n ventures which were h i g h l y c a p i t a l and technology i n t e n s i v e . From the l a t e 19th century, Vancouver had been b u i l t as a major urban c e n t r e on the West Coast as the "node" or " c e n t r a l p l a c e " of the r e g i o n a l economy, w h i l e the r e s t of the p r o v i n c e was s u s t a i n e d by resource e x p l o i t a t i o n based on heavy f o r e i g n investment. Today's economic geography of the p r o v i n c e i n d i c a t e s t h a t the d i r e c t impact of F I i s g: • g r e a t e r i n the h i n t e r l a n d than i n m e t r o p o l i t a n Vancouver. Since the r e s o u r c e f r o n t i e r r e g i o n ' s economy i s extremely s e n s i t i v e 4 In the Canadian c o n t e x t , the c l a s s i c a l work on t h i s s t a p l e theory was done by H.Innis, The Fur Trade i n Canada; An I n t r o d u c t i o n t o Canadian Economic History." to f i l l u c t u a t i n g market demand, e x t r a - r e g i o n a l investment might be r e c e i v e d l e s s f a v o u r a b l y i n l o c a l communities than i n m e t r o p o l i t a n Vancouver where the economic base i s so d i v e r s e . I t was h y p o t h e s i z e d , t h e r e f o r e , t h a t respondents from Greater Vancouver would be more r e c e p t i v e to FI than those from the r e s t of the p r o v i n c e . F i n d i n g s F o r e i g n Investment i n G e n e r a l : As was expected, respondents from m e t r o p o l i t a n Vancouver showed more f a v o u r a b l e r e a c t i o n s than those from the r e s t of the p r o v i n c e concerning s o c i a l and economic e f f e c t s as w e l l as f u t u r e d e s i r a b i l i t y of FI (Table X V I I I ) . TABLE XVIII R e c e p t i v i t y D i f f e r e n c e s between Greater Vancouver and the  Rest of the P r o v i n c e No. of S.3 S.5 S.6A S.7 Responses Agree Disagree Agree Disagree Agree Disagree Agree Disagree Greater 187 53% 47% 87% 13% 81% 19% 59% 41% Vancouver Rest of 287 58% 43% 84% 16% 78% 22% 49% 51% B.C. Statement 3. There i s too much foreign capital being invested i n B.C. 5. In general, foreign investment has been beneficial to the economic development in B.C. 6A.Foregin investment has improved the quality of l i f e i n B.C. 7. B.C. needs more investment from foreign countries. Almost 60% of the respondents from the Greater Vancouver r e g i o n wanted f u t u r e FI i n the p r o v i n c e , w h i l e s l i g h t l y over h a l f of the respondents i n the h i n t e r l a n d were not i n favour of i t . The breakdown of responses to the net e f f e c t s of FI r e v e a l e d t h a t t h e i r p r e f e r e n t i a l d i f f e r e n c e s were p r i m a r i l y 78 caused by economic c o n s i d e r a t i o n s . Although these two groups were s i m i l a r i n o p i n i o n s c o n c e r n i n g the c o n t r i b u t i o n s o f F I , t h e i r a t t i t u d e s toward n e g a t i v e e f f e c t s r e f l e c t e d s l i g h t l y d i f f e r e n t l o c a l concerns. Both groups p e r c e i v e d major negative e f f e c t s i n i n s u f f i c i e n t r e t u r n to B.C. from e x p l o i t a t i o n of n a t u r a l r e s o u r c e s as w e l l as removal o f p r o f i t s and l a c k of investment. The p o p u l a t i o n c o n c e n t r a t i o n and d i s r u p t i o n of l o c a l communities were p e r c e i v e d as minor n e g a t i v e e f f e c t s of FI by r e s i d e n t s of Vancouver, but these two i s s u e s were p a i d more a t t e n t i o n by those i n the h i n t e r l a n d (Table XIX). In f a c t , o n e - t h i r d of 66 respondents from the h i n t e r l a n d , who b e l i e v e d t h a t F I d i d not c o n t r i b u t e to improvement i n the q u a l i t y of l i f e , named p o p u l a t i o n concen-t r a t i o n as a n e g a t i v e e f f e c t . The d i s r u p t i o n of l o c a l communities as a r e s u l t of FI p r o j e c t s was a l s o p o i n t e d out by 15 people of t h i s group. These r e s u l t s suggest t h a t i n the m e t r o p o l i s , where most FI affects=the r e s i d e n t s o n l y i n economic terms - mainly i n i n d i r e c t employment o p p o r t u n i t i e s , r e s i d e n t s ' concerns seem to be r e l a t e d to the economic impact of FI on the p r o v i n c i a l economy as a whole. On the other hand, the r e s i d e n t s of the h i n t e r l a n d a s s o c i a t e d FI w i t h t h e i r own way of l i f e and p e r c e i v e d the n e g a t i v e e f f e c t s w i t h i n the l o c a l s i t u a t i o n . T h i s probably e x p l a i n s t h e i r g r e a t e r r e l u c t a n c e to a ccept FI i n the f u t u r e . The i m p l i c a t i o n i s t h a t the s p a t i a l as w e l l as f u n c t i o n a l r e a l i t y of the m e t r o p o l i s - h i n t e r l a n d r e l a t i o n -s h i p c e r t a i n l y a f f e c t s the way people p e r c e i v e the e f f e c t s of F I . 79 TABLE XIX P e r c e i v e d C o n t r i b u t i o n s and N e g a t i v e E f f e c t s o f F o r e i g n  I n v e s t m e n t : M e t r o p o l i s v s . H i n t e r l a n d . Perceived Contributions Metropolis % (No./291) Hinterland %(no./407) xlOO xlOO Employment Opportunities 132 45% 195 48% Income Increase 74 25% 96 24% More Goods/ Commodities 42 14% 60 15% So c i a l Amenities 33 11% 46 11% Other 10 3% 10 2% T o t a l 291 407 Perceived Negative Metropolis %(no./126) Hinterland %(no./235) E f f e c t s : xlOO xlOO Population Concentration 5 4% 21 9% I n s u f f i c i e n t Return to B.C. 52 41% 88 37% Removal of P r o f i t s / earnings 36 29% 56 24% Environmental P o l l u t i o n 25 20% 46 20% Disruption of Local Communities 3 2% 15 6% Other 5 4% 9 4% T o t a l 126 235 a t t i t u d e s Toward J a p a n e s e I n v e s t m e n t : As f o r J a p a n e s e i n v e s t m e n t , t h e s e two g r o u p s showed a l m o s t i d e n t i c a l r e a c t i o n s c o n c e r n i n g employment, p o l i t i c a l and s o c i a l e f f e c t s i n t h e f u t u r e ( T a b l e X X ) . The g e n e r a l c o n s e n s u s among B.C. r e s i d e n t s p r e s e n t e d i n t h e t h i r d c h a p t e r t h a t t h e r e was no p a r t i c u l a r p r e f e r e n c e o r h o s t i l i t y t o w a r d J a p a n e s e b u s i n e s s o p e r a t i o n s i n B.C. as l o n g as t h e y w o u l d f o l l o w t h e F I g u i d e l i n e s s e t by t h e g o v e r n m e n t was a g a i n c o n f i r m e d by t h e s e r e s u l t s . The l o c a t i o n f a c t o r o f r e s i d i n g i n t h e 80 m e t r o p o l i s or i n i t s h i n t e r l a n d does not a f f e c t the r e s i d e n t s ' o p i n i o n s toward Japanese investment. TABLE xx Reaction to Japanese Investment: Metropolis vs. Hinterland S.13 S.14 S.15 S.16 Agree Disagree Agree Disagree Agree Disagree Agree Disagree Greater Vancouver 82% 18% 81% 19% 69% 31% 54.5% 45.5% Rest of B.C. 83% 17% . 79% 21% 69% 31%. 56% 44% Statements 13. Japanese business involvement i n the province has increased d i r e c t or i n d i r e c t employment opportunities. 14. Japanese investment w i l l increase l o c a l employment opportunities i n the future. 15. Increasing Japanese investment i n B.C. i s l i k e l y to cause p o l i t i c a l f r i c t i o n i n the future. 16. Increasing Japanese investment i n B.S. i s l i k e l y to cause s o c i a l f r i c t i o n i n the future. 5.3. D i f f e r e n c e s i n A t t i t u d e s by Sub-Region The n i n e economic sub-regions i n which the survey was c a r r i e d out r e p r e s e n t r e g i o n s i n v a r i o u s stages of development. The d i s a g g r e g a t i o n of responses by sub-region generated c c o n s i d e r a b l e v a r i a t i o n i n p e r c e p t i o n s of the e f f e c t s and d e s i r a b i l i t y o f F I . Responses to f o u r statements concerning FI i n g e n e r a l were grouped by sub-region as shown i n Table XXI. . The s t r o n g e s t a n t i p a t h y to e x i s t i n g F I came from the Thompson r e g i o n , mainly from the c i t y of Kamloops, which was f o l l o w e d by responses from the C e n t r a l Kootenays. The responses from the Greater Vancouver, Vancouver I s l a n d , and Okanagan sub-regions showed l e s s concern w i t h the e x i s t i n g 81 l e v e l of f o r e i g n investment. The respondents from the North E a s t sub-region i n d i c a t e d the most support f o r c u r r e n t FI i n the p r o v i n c e . These r e s u l t s suggest t h a t i n urban c e n t r e s -•- where the e x i s t e n c e of f o r e i g n investment i s r e l a t i v e l y unimportant i n the o v e r a l l r e g i o n a l economic s t r u c t u r e — and i n the l e a s t developed p a r t of the p r o v i n c e where the i n f l u e n c e of FI has not y e t reached h i g h l e v e l s — the respondents' p e r c e p t i o n of e x i s t i n g FI i s not negatived On the other hand, i n the Kootenays, Thompson, and C e n t r a l sub-regions, where heavy i n f l o w s o f FI have been observed, a h i g h p r o p o r t i o n of the respondents f e l t t h a t there was an e x c e s s i v e amount of FI i n the p r o v i n c e . The same r e c e p t i v i t y t r e n d was again t r a c e d w i t h r e s p e c t to f u t u r e F I : The s t r o n g e s t support came from the North E a s t , f o l l o w e d by the Okanagan and Greater Vancouver. Apart from Vancouver I s l a n d , where a s t r o n g u n d e s i r a b i l i t y was expressed /'the responses from the r e g i o n s i n e a r l y stages of development and r e g i o n s of urban c h a r a c t e r i s t i c s i n d i c a t e d p o s i t i v e r e c e p t i v i t y to f u t u r e F I . Low d e s i r a b i l i t y expressed from Vancouver I s l a n d , i n c l u d i n g the responses from V i c t o r i a , may w e l l i n d i c a t e t h a t the r e s i d e n t s are more am e n i t y - o r i e n t e d than e c o n o m i c a l l y - o r i e n t e d -in t h a t p a r t of the p r o v i n c e . 7 4 The o n l y e x c e p t i o n to thxs statement i s the Thompson r e g i o n . The respondents from Kamloops, the t h i r d l a r g e s t c i t y i n the p r o v i n c e , showed negative r e a c t i o n to both e x i s t i n g and f u t u r e F I . T h i s can be e x p l a i n e d by the f a c t t h a t t h i s r e g i o n has observed heavy i n f l o w s of FI and t h a t the r e s i d e n t s were more aware of an excess amount of FI than those i n other urban c e n t r e s . 82 TABLE XXI R e g i o n a l D i f f e r e n c e s i n A t t i t u d e s Toward P n r p f r m I n v e s t m e n t S u b - R e g i o n S.3 A g r e e D i s a g r e e S.5 A g r e e D i s a g r e e S. A g r e e 6A D i s a g r e e S. A g r e e 7 D i s a g r e e E a s t K o o t e n a y ( 2 5 ) * 60? i 40% 96% 40% 84% 16% 41% 59% C e n t r a l and West K o o t e n a y (27) 70 30 70 30 56 44 33 67 Okanagan (36) 50 50 75, 25 72 28 68 32 Thompson,(19) 21 21 90 10 95 5 41 59 G r e a t e r V a n c o u v e r (189) 53 47 87 13 81 19 59 41 V a n c o u v e r I s l a n d (90) 52 48 81 19 72 28 42.5 57.5 C e n t r a l (45) 62 38 91 9 89 11 57 43 N o r t h E a s t (14) : 43 57 86 14 86 14 71 29 N o r t h West(32) 55 45 88 12 88 12 48 52 S.3 T h e r e i s t o o much f o r e i g n c a p i t a l b e i n g i n v e s t e d i n B . C . S.5 I n g e n e r a l , f o r e i g n i n v e s t m e n t has been b e n e f i c i a l t o t h e economic d e v e l o p m e n t i n B . C . S.6A F o r e g i n i n v e s t m e n t has i m p r o v e d t h e g u a l t y o f l i f e i n B . C . S.7 B . C . needs more i n v e s t m e n t f r o m f o r e i g n c o u n t r i e s . * Numbers i n b r a c k e t s i n d i c a t e t h e number o f r e s p o n d e n t s . The r e c e p t i v i t y t r e n d i n d i c a t e d i n t h i s a n a l y s i s d i d not c o i n c i d e w i t h the Robock and Simmonds model presented i n the i n t r o d u c t o r y chapter i[1.4;]. I f , f o r i n s t a n c e t h e responses to f u t u r e d e s i r a b i l i t y of FI are p l o t t e d i n the graph a c c o r d i n g to the l e v e l s of development of each sub-region, they shape a curve shown as F i g u r e 6. In t h i s case, the l e v e l s of develop-ment were determined by c a l c u l a t i n g the per c a p i t a v a l u e of 83 f a c t o r y shipments i n each s u b - r e g i o n f based on B r i t i s h Columbia Market Data*. CSee Appendix I I f o r d e t a i l e d f i g u r e s . ) The North West f r o n t i e r sub-region posesses the h i g h e s t per c a p i t a value of f a c t o r y shipments and y e t t h e i r r e c e p t i v i t y to f u t u r e F I i s not as high as i n areas w i t h urban c h a r a c t e r i s t i c s . F I G U R E 6 " B . C . needs more i n v e s t m e n t from f o r e i g n c o u n t r i e s . " ;  by Economic Sub-Region Agree 100%| North Okanagan . Central/ East Thompson Vancouver Central North Greater East West Kootenay Island West Vancouver Kootenays Low Stage of Development High N o t e : Per c a p i t a v a l u e o f f a c t o r y shipments was used as an i n d e x t o d e t e r m i n e the l e v e l s o f development o f each s u b - r e g i o n , e x c e p t f o r G r e a t e r Vancouver. S i n c e t h e G r e a t e r Vancouver economy has t r a n s c e n d e d s e c o n d a r y i n d u s t r y i n t o h a v i n g a s t r o n g t e r t i a r y o r i e n t a t i o n as was e x p l a i n e d i n s e c t i o n 5 . 2 . , t h i s i n d e x was no t r e l e v a n t t o d e s c r i b e i t s s t a g e o f development. 84 In the B r i t i s h Columbia c o n t e x t , t h e r e f o r e , the r e g i o n a l d i f f e r e n c e of r e c e p t i v e n e s s to FI i s c o r r e l a t e d not w i t h the stages of development but w i t h the degree of u r b a n i z a t i o n (and the concomitant i n c r e a s e i n the complexity of economic a c t i v i t i e s ) i n each sub-region. In o t h e r words, the U-curve hy p o t h e s i s holds between a sub-region's degree of u r b a n i z a t i o n and i t s r e c e p t i v i t y t o F I : The areas of the l e a s t urbanized (North East) and h i g h l y u r b a n i z e d (Greater Vancouver) as w e l l as r a p i d l y u r b a n i z e d r e g i o n s ( C e n t r a l , and Okanagan) showed r e l a t i v e l y h i g h r e c e p t i v i t y compared w i t h other sub9regions a t i n t e r m e d i a t e stages of d e v e l o p i n g economic complexity. 5.4. The R e l a t i o n s h i p between the Amount of FX and Receptiveness Many i n t e r i o r sub-regions' economic a c t i v i t i e s are h e a v i l y c o n c e n t r a t e d i n e x t r a c t i v e i n d u s t r i e s , r e p r e s e n t e d by mining and f o r e s t r y . Since the amount of f o r e i g n c a p i t a l i n v e s t e d i n these s e c t o r s are extremely h i g h , i n t e r i o r sub-r e g i o n s i n the Kootenays and c e n t r a l areas i n B.C., s i t u a t e d between the Lower Mainland urban c e n t r e and the northern h i n t e r l a n d , c o i n c i d e w i t h sub-regions which have observed l a r g e i n f l o w s of F I . Table XXII focuses on the r e c e p t i v i t y d i f f e r e n c e s among three r e s o u r c e s f r o n t i e r r e g i o n s , i . e . C e n t r a l and West Kootenays, E a s t Kootenays, and the North E a s t , i n o r d e r t o observe c l o s e l y the r e l a t i o n s h i p between the e x i s t i n g amount of FI i n each sub-region and r e c e p t i v e n e s s to F I . These three sub-regions r e p r e s e n t areas where t h e i r economic base depends on n a t u r a l r e s o u r c e e x t r a c t i o n , - a n d y e t each sub-region i s i n the d i f f e r e n t stage of r e g i o n a l development. 85 The C e n t r a l and West Kootenays r e p r e s e n t the r e g i o n which I s f a c e d w i t h ?a s t a g n a t i n g economy due to the u n c e r t a i n economic c o n d i t i o n of mining a c t i v i t i e s ; w h i l e the E a s t Kootenays are one o f the f a s t e s t growing areas i n B.C. mainly because of the i n c r e a s i n g demands f o r coal-in-«the world market. The North E a s t p r o v i d e s an enormous re s o u r c e p o t e n t i a l to be e c o n o m i c a l l y developed to meet the demand o u t s i d e of i t s r e g i o n a l boundary. The responses from these t h r e e areas showed marked p e r c e p t u a l d i f f e r e n c e s toward f o r e i g n investment i n t h e i r sub-regions. The b i t t e r n e s s toward f o r e i g n investment was s t r o n g l y expressed from e c o n o m i c a l l y depressed C e n t r a l and West Kootenays, where m i n e r a l e x t r a c t i o n was once booming and gone. The f e e l i n g of being " r i p p e d - o f f " remained w i t h the l o c a l r e s i d e n t s and t h e i r responses to new investment from f o r e i g n c o u n t r i e s h a r d l y showed any enthusiasm. The responses from the E a s t Kootenays, where the e x p l o i t a t i o n of c o a l d e p o s i t s h i g h l i g h t e d r e c e n t 'economic a c t i v i t i e s i n the p r o v i n c e , presented r a t h e r s t r i k i n g r e s u l t s . Although most respondents were w e l l aware of the c o n t r i b u t i o n of FI to the economic development (96% of them agreeing w i t h the statement, " f o r e i g n investment has been b e n e f i c i a l to the economic development i n B.C."), o n l y 41% of them wanted more FI i n the f u t u r e . T h i s r e a c t i o n may be i n t e r p r e t e d as: They r e a l i z e d t h a t FI had c r e a t e d l o c a l employment o p p o r t u n i t i e s . But once t h e i r jobs had been secured, they d i d not want any more FI which would not generate any d i r e c t b e n e f i t s f o r the 86 i n d i v i d u a l s i n the l o c a l communities. I f t h i s i s the case, i n the resource f r o n t i e r , people's world seems to c e n t r e on themselves. Qu i t e c o n t r a r y to the responses from these two r e g i o n s were those from the North E a s t . Overwhelmingly i n favour, respondents from t h i s sub-region i n d i c a t e d the w i l l i n g n e s s to accept F I , showing a h i g h e x p e c t a t i o n " o f ' t h e employment c r e a t i o n e f f e c t . They were not too concerned about p o t e n t i a l s o c i a l f r i c t i o n w i t h f o r e i g n i n v e s t o r s . The l a c k of r e c e p t i v e n e s s toward f u t u r e FI i n the Kootenays, i n s p i t e of the r e c o g n i t i o n of economic b e n e f i t s from r e c e n t l a r g e i n f l o w s of American and Japanese c a p i t a l i n mining, lumber and pulp o p e r a t i o n s , should be borne i n mind p o t e n t i a l i n v e s t o r s and by the s e n i o r government. When such doubts are coupled w i t h the f a v o u r a b l e a t t i t u d e s i n the North E a s t , i t l e a d s to another r e c e p t i v i t y paradigm: Receptiveness to f u t u r e f o r e i g n investment i s f r e q u e n t l y i n v e r s e l y r e l a t e d to the e x i s t i n g l e v e l o f such investment i n the host r e g i o n . 87 TABLE XXII Regional Differences i n Attitudes Toward Foreign Investment:  By Selected Sub-Region A. There i s too much foreign c a p i t a l being invested i n B.C. No.of Responses Central Kootenays 27 East Kootenays 25 North East 14 B. In general, foreign investment has been b e n e f i c i a l to the economic development i n B.C. Central Kootenays East Kootenays North East C. Foreign Investment has improved the q u a l i t y of l i f e i n B.C. Central Kootenays East Kootenays North East D. B.C. needs more investment from foreign countries Central Kootenays East Kootenays North East E. Japanese business involvement i n the province has increased d i r e c t or i n d i e c t employment opportunities. Central Kootenays East Kootenays North East F. Japanese investment w i l l increase l o c a l employment opportunities i n the future Central Kootenays East Kootenays North East Agree 70% 60% 43% 70% 96% 86% 56% 84% 86% 33% 41% 71% 74% 88% 93% 65% 84% 93% (19) (15) ( 6) (19) (24) (12) (15) (21) (12) ( 9) ( 9.) (10) (20) (22) (13) (17) (21) (13) Disagree 30% 40% 57% 30% 4% 14% 44% 16% 14% 67% 59% 29% 26% 12% 7% 35% 16% 7% ( 8) (10) ( 8) ( 8) ( 1) ( 2) (12) ( 4) ( 2) (18) (13) ( 4) ( 7) ( 3) ( 1) ( 9) ( 4) ( 1) 88 Agree Disagree G. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y to cause p o l i t i c a l f r i c t i o n i n the f u t u r e C e n t r a l Kootenays Ea s t Kootenays North E a s t 81.5% 72% 71% (22) 18. (18) 28% (10) 29% 5% ( 5) ( 7) ( 4) H. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y to cause s o c i a l f r i c t i o n i n the f u t u r e . C e n t r a l Kootenays E a s t Kootenays North E a s t 63% 64% 36% (17) 37% (16) 36% ( 5) 64% (10) ( 9) ( 9) I m p l i c a t i o n s of these r e s u l t s are q u i t e c l e a r . The t r a d i t i o n a l approach to r e g i o n a l development generated by FI w i l l not be favoured by the r e s i d e n t s of the r e g i o n where the impact of f u t u r e development w i l l be d i r e c t l y f e l t . The North E a s t of B.C. has v a s t d e p o s i t s of bituminous c o a l s u i t a b l e f o r coking c o a l . The p r o v i n c i a l government i s anxious to develop these c o a l r e s o u r c e s as an impetus to r e v i t a l i z e the s t a g n a t i n g p r o v i n c i a l economy. Since the government announced i t s i n t e n t i o n of i n v i t i n g f o r e i g n p a r t i c i p a t i o n i n t h i s venture, i t i s l i k e l y t h a t the new c o a l development would i n v o l v e F I . The h i g h e x p e c t a t i o n of the r e s i d e n t s " of the North E a s t , i n d i c a t e d i n the responses to the survey, f o r changes to be brought i n to the r e g i o n by FI must be met. The p o l i c y makers, both i n the p u b l i c and p r i v a t e s e c t o r s , should c o n s i d e r p r o v i d i n g not o n l y d i r e c t economic b e n e f i t s but a l s o the s o c i a l b e n e f i t s which aim a t enhancing the i n d i v i d u a l 89 w e l f a r e of l o c a l r e s i d e n t s , i f they want to i n c r e a s e or even m a i n t a i n p r e s e n t r e c e p t i v e n e s s to F I . In the f i n a l c h apter, recommendations both f o r the p r o v i n c i a l government and f o r e i g n i n v e s t o r s w i l l be d i s c u s s e d i n order to a l t e r t h i s i n v e r s e r e l a t i o n s h i p between the e x i s t i n g l e v e l o f FI and f u t u r e r e c e p t i v e n e s s i n the host r e g i o n . 5.5. Summary and C o n c l u s i o n Regional r e c e p t i v i t y d i f f e r e n c e s p r o v i d e d another i n s i g h t to the s o c i a l awareness toward f o r e i g n investment. The a n a l y s i s i n t h i s chapter c l e a r l y i n d i c a t e s that the g e o g r a p h i c a l f a c t o r has a s i g n i f i c a n t impact on B.C. r e s i d e n t s ' o p i n i o n s r e g a r d i n g the i s s u e s of F I , as the people are prone t o p e r c e i v e the problems i n the l o c a l i z e d s i t u a t i o n . In g e n e r a l , respondents from the urban c e n t r e of Vancouver were more concerned w i t h the net economic b e n e f i t s of FI than those from the h i n t e r l a n d . They were a l s o q u i t e r e c e p t i v e to f u t u r e F I . On the c o n t r a r y , the r e s i d e n t s of most i n t e r i o r sub-regions seemed t o be more concerned w i t h s o c i a l aspect of economic development generated by F I , r e f l e c t i n g the m e n t a l i t y of the r e s i d e n t s i n i s o l a t e d r e s o u r c e towns. In these r e s o u r c e f r o n t i e r r e g i o n s , r e c e p t i v e n e s s to FI was lower than areas w i t h urban c h a r a c t e r i s t i c s . The f a v o u r a b l e responses from the North E a s t showed the eagerness of the l e a s t developed r e g i o n to move ahead, and economic f a c t o r s were gi v e n the p r i o r i t y i n t h e i r responses. 90 In B r i t i s h Columbia, t h e r e f o r e f the r e g i o n a l d i f f e r e n c e of r e c e p t i v e n e s s t o FI seems t o c o r r e l a t e w i t h the degree of u r b a n i z a t i o n of these sub-regions. A t the same time, i t i s f r e q u e n t l y i n v e r s e l y r e l a t e d t o the e x i s t i n g l e v e l of such investment i n the host r e g i o n . 91 CHAPTER VI FUTURE ROLE OF FOREIGN DIRECT INVESTMENT IN BRITISH COLUMBIA - CONCLUSIONS AND IMPLICATIONS -T h i s chapter s e t s out the main c o n c l u s i o n s which can be drawn from the f i n d i n g s presented i n the preceding three chapters and examines t h e i r i m p l i c a t i o n s f o r government p o l i c y governing FI i n B r i t i s h Columbia. 6.1. Synopsis of Major F i n d i n g s The a n a l y s i s undertaken i n the study p o i n t s to the f o l l o w i n g s i x major f i n d i n g s : (1) One o f the primary o b j e c t i v e s of the study was to e s t a b l i s h the l e v e l o f awareness of B.C. r e s i d e n t s w i t h r e s p e c t to the i s s u e of f o r e i g n investment. The a n a l y s i s r e v e a l e d t h a t the respondents were g e n e r a l l y w e l l - i n f o r m e d and possessed a b a s i c understanding and knowledge of the foreign investment s i t u a t i o n i n the p r o v i n c e . (2) C o n t r i b u t i o n s of FI to r e g i o n a l economic development were h i g h l y valued but almost h a l f of the respondents were not i n favour o f f u r t h e r FI i n t h e i r r e g i o n s . T h i s r e s u l t i n d i c a t e s t h a t f o r a s i g n i f i c a n t p o r t i o n of B.C. r e s i d e n t s , a p a r t from m e t r o p o l i t a n and l o c a l b u s i n e s s groups, the present p a t t e r n of FI i s not s a t i s f a c t o r y . Since a m a j o r i t y of respondents p e r c e i v e d the p a s t b e n e f i t s o f FI i n terms of economic c r i -t e r i a (such as the p r o v i s i o n of employment and h i g h e r income l e v e l s ) , t h e i r r e l u c t a n c e toward f u t u r e investment may be i n t e r p r e t e d i n d i f f e r e n t ways. One i n t e r p r e t a t i o n i s t h a t the 92 people thought the economic benefits generated by FI were not dis t r i b u t e d equitably under the current investment pattern. Another i s that B r i t i s h Columbians' development goals have been changing with more emphasis on non-economic c r i t e r i a . A f i n a l interpretation i s that the people did not want any FI simply because they had secured t h e i r own jobs, which might have been d i r e c t l y or i n d i r e c t l y the r e s u l t of FI, and thus perceived the issuesffonua s t r i c t l y i n d i v i d u a l welfare viewpoint. (3) Unequal d i s t r i b u t i o n of benefits accruing from FI among the population was one of the major causes of opinion discrepancies. In B r i t i s h Columbia, where FI i s p a r t i c u l a r l y c a p i t a l - i n t e n s i v e i n nature, labour's share of the value added may be r e l a t i v e l y small i n comparison with that enjoyed by the owners of the c a p i t a l . This c a p i t a l - i n t e n s i v e nature of FI, therefore, often exacerbated s p a t i a l and s o c i a l i n e q u i t i e s . Opinion discrepancies between the respondents from the metro-p o l i s and those from the hinterland, between p r o v i n c i a l business leaders and the union group, between white c o l l a r and blue c o l l a r workers, and among various groups by income l e v e l , a l l suggest that the problem of d i s t r i b u t i o n of benefits, i s a major factor determining th e i r receptiveness to FI. (4) The provision of employment was a c r i t e r i o n for judging the benefits of FI. The less favourable attitudes toward future FI expressed by women, the grouppwith less formal education, younger cohorts, the old timers in the province, may well r e f l e c t the s t r u c t u r a l unemployment problem which prevails i n many resource f r o n t i e r regions. 93 (5) The a n a l y s i s of responses by economic sub-regions l e a d to. the formation of the f o l l o w i n g development paradigm: In the urban c e n t r e of Greater Vancouver, and the r a p i d l y growing Okanagan and C e n t r a l sub-regions ••— where the e x i s t e n c e of FI i s r e l a t i v e l y unimportant i n the o v e r a l l r e g i o n a l economic s t r u c t u r e — , and i n the l e a s t developed North E a s t — where the impact of FI has not y e t reached h i g h l e v e l s — , the respondents! awareness and r e c e p t i v i t y to FI were p o s i t i v e . On the other hand, the respondents from the Kootenay, Thompson, and Vancouver I s l a n d sub-regions were a c u t e l y aware of an excess amount of FI i n t h e i r r e g i o n s and t h e i r f a v o u r a b i l i t y t o f u t u r e FI was lower. The s p a t i a l approach a l s o r e v e a l e d t h a t r e c e p t i v e n e s s t o f u t u r e f o r e i g n investment was f r e q u e n t l y i n v e r s e l y r e l a t e d to the e x i s t i n g l e v e l o f such investment i n the host r e g i o n . (6) The respondents were knowledgeable and observant w i t h r e s p e c t t o Japanese investment i n the p r o v i n c e . . D e s p i t e the f a c t t h a t i n ge n e r a l terms low d e s i r a b i l i t y was expressed i f o r f u t u r e F I , a m a j o r i t y of respondents possessed f a v o u r a b l e impressions toward Japanese b u s i n e s s people i n t h e i r communities as w e l l as toward t h e i r o r g a n i z a t i o n a l s t r u c t u r e . T h i s r e a c t i o n i n d i c a t e s t h a t the B.C. r e s i d e n t s ' major concern i s not over "from what country" but "how" and, to a l e s s e r e x t e n t , " i n what" the investment would be made. The growing r o l e of the govern-ment to d i r e c t such investment was d e s i r e d and the importance of development s t r a t e g i e s which would u t i l i z e FI i n order t o i n c r e a s e e q u i t a b l e d i s t r i b u t i o n of b e n e f i t s was confirmed by the Survey. 94 6.2. S i g n i f i c a n c e and I m p l i c a t i o n s of the F i n d i n g s From the viewpoint of a t t a i n i n g n a t i o n a l economic o b j e c t i v e s , most economic a n a l y s e s , both p u b l i c and p r i v a t e , have come out i n favour o f the net economic b e n e f i t s o f FI i n Canada.^ However, the Canadian f e d e r a l system ensures, to a s i g n i f i c a n t degree, t h a t p o l i c i e s w i t h r e s p e c t to f o r e i g n investment and ownership w i l l be s e n s i t i v e to p r o v i n c i a l i n t e r e s t s and a s p i r a t i o n s . The major f i n d i n g s of t h i s study summarized i n s e c t i o n 6.1. r e p r e s e n t B r i t i s h Columbians' i n t e r e s t s and p r e f e r e n c e s concerning v a r i o u s i s s u e s of FI i n t h e i r r e s p e c t i v e r e g i o n s . W i t h i n the p r o v i n c i a l framework, how f o r e i g n investment would be d i s t r i b u t e d g e o g r a p h i c a l l y and how i t s b e n e f i t s would be d i s t r i b u t e d to s o c i e t a l sub-groups seem t o be the aspects of most concern to the people of B r i t i s h Columbia. G e o g r a p h i c a l I m p l i c a t i o n : The o b s e r v a t i o n o f a t t i t u d i n a l v a r i a t i o n s among B.C. sub-regions suggests t h a t the r e l a t i v e "future F I ' q u o t i e n t s should be g r e a t e r i n urban" c e n t r e s and the dev e l o p i n g r e g i o n o f the North E a s t than i n i n t e r i o r sub-regions. Since the major a t t r a c t i o n f o r f o r e i g n i n v e s t o r s i s n a t u r a l r e s o u r c e s , and s i n c e development i n e v i t a b l y occurs where resources e x i s t , i t i s l i k e l y t h a t f u t u r e FI w i l l be s t r o n g l y a t t r a c t e d to the Northern r e s o u r c e f r o n t i e r r e g i o n . T h i s i s a l s o the r e g i o n where r e c e p t i v e n e s s t o f u t u r e F I i s the h i g h e s t among a l l sub-regions. ^For example, the Gray Report (1972), a thorough review of FI i n Canada, concluded t h a t f o r e i g n investment has a r o l e to p l a y i n Canada's f u t u r e economic development where i t i s the most e f f i c i e n t technique o f o b t a i n i n g technology, o r other needed i n p u t s . (Foreign D i r e c t Investment i n Canada: p.451). 95 T h i s g e o g r a p h i c a l p r e f e r e n c e , however, should be c o n s i d e r e d i n a broader time p e r s p e c t i v e . The i n v e r s e r e l a t i o n s h i p between the amount of e x i s t i n g FI i n the host r e g i o n and r e c e p t i v e n e s s to such investment c l e a r l y i n d i c a t e s t h a t r e c e p t i v i t y t r e n d goes downward over time as the r e c i p i e n t r e g i o n has accumulated f o r e i g n c a p i t a l . T h i s phenomenon i m p l i e s t h a t p a s t experiences w i t h f o r e i g n i n v e s t o r s were not e n t i r e l y s a t i s f a c t o r y . I f both p u b l i c and p r i v a t e s e c t o r s i n t e n d to i n c r e a s e or even maintain r e c e p t i v e n e s s t o f o r e i g n investment, i t i s e s s e n t i a l to i d e n t i f y the sources of-*dissatis'£action among the people of the host r e g i o n . S o c i a l I m p l i c a t i o n : The r e s u l t s o f demographic c r o s s - s s e c t i o n a l a n a l y s i s presented i n chapters three and f o u r suggest t h a t unequal d i s t r i b u t i o n of b e n e f i t s from F I , i n c l u d i n g employment o p p o r t u n i t i e s , among l o c a l r e s i d e n t s i s one of the major causes o f d i s s a t i s f a c t i o n w i t h F I . There was a l s o an i m p l i c a t i o n of changing development goals among s e v e r a l sub-groups, changes which i n f l u e n c e the way they value FI i n t h e i r r e g i o n s . The problem of e q u i t a b l e d i s t r i b u t i o n of b e n e f i t s generated by FI should be c o n s i d e r e d both i n terms of economic and s o c i a l c r i t e r i a . S p e c i f i c " r e c o m m e n d a t i o n s l f o r both the p u b l i c and . p r i v a t e s e c t o r s w i l l be made i n the f f o l l o w i n g s e c t i o n i n order to b r i n g these problems i d e n t i f i e d i n t o a c l e a r p o l i c y framework. 96 6.3. Recommendations f o r the P r o v i n c i a l Government and F o r e i g n  I n v e s t o r s , T h i s s e c t i o n s e t s out some recommendations based on the i m p l i c a t i o n s o f the survey f i n d i n g s both f o r the p r o v i n c i a l government and f o r e i g n i n v e s t o r s . 6.3.1. Recommendations f o r the P r o v i n c i a l Government S t r a t e g i e s f o r coping w i t h f u t u r e F I cbuld^be approached i n two ways, namely, the n e g a t i v e (or r e s t r i c t i v e ) approach and the p o s i t i v e approach. Negative or R e s t r i c t i v e Approach: T h i s approach suggests use of p u b l i c i n i t i a t i v e f o r r e - d i r e c t i o n of investment p a t t e r n s by r e s t r i c t i v e measures such as the enforcement o f FI g u i d e l i n e s . With the ex c e p t i o n of l e g i s l a t i o n l i m i t i n g f o r e i g n c o n t r o l of some i n d u s t r i a l c a t e g o r i e s i n O n t a r i o , Manitoba, and A l b e r t a , t h e r e are no p r o v i n c i a l laws which l i m i t f o r e i g n c o n t r o l of Canadian f i r m s - although some have l e g i s l a t i o n a f f e c t i n g 2 ownership of l a n d . The former p r o v i n c i a l government passed d i s c r e t i o n a r y l e g i s l a t i o n p r o v i d i n g f o r a g r e a t e r degree of p r o c e s s i n g of mi n e r a l s and f o r e s t products. T h i s l e g i s l a t i o n , which was intended t o i n c r e a s e net economic r e t u r n s , was the f i r s t step i n r e - d i r e c t i n g the f o r e i g n investment/pattern i n v o l v e d i n resource ventures i n B.C. In f a c t , upgrading and p r o c e s s i n g o f raw m a t e r i a l s p r i o r to export was supported by nine out of 2 B r i t i s h Columbia, A l b e r t a , Saskatchewan, Manitoba and O n t a r i o now l i m i t o r p r o h i b i t the s a l e o f Crown l a n d t o non-r e s i d e n t s . In P r i n c e Edward I s l a n d , there i s a ten acre l i m i t a t i o n on a l l l a n d purchases by persons not r e s i d e n t i n the p r o v i n c e . 97 t e n r e s p o n d e n t s i n t h e s u r v e y , s h o w i n g t h e i r s t r o n g s u p p o r t f o r t h i s p o l i c y . As f o r t h e e s t a b l i s h m e n t o f a l e g a l framework f o r i n c o m i n g f o r e i g n i n v e s t m e n t , a l m o s t one o u t o f e v e r y t e n r e s p o n d e n t s s t a t e d t h e i r s u p p o r t f o r e i t h e r C a n a d i a n m a j o r i t y o w n e r s h i p o r some f o r m o f g o v ernment c o n t r o l o f F I . However, t h i s a p p r o a c h w o u l d r u n t h e r i s k o f r e d u c i n g t h e a t t r a c t i v e n e s s o f t h e i n v e s t m e n t e n v i r o n m e n t i f e x c e s s r e g u l a t i o n s were t o be i m p o s e d on i n v e s t o r s . The g o v ernment s h o u l d w e i g h t h e c o m p a r a t i v e a d v a n t a g e o f r e s o u r c e s , e c o n o m i c c o s t s and b e n e f i t s a c c r u i n g f r o m F I p r i o r t o t h e e s t a b l i s h m e n t o f s u c h g u i d e l i n e s . The p u b l i c s e c t o r a l s o has t o e n s u r e t h a t s u c h g u i d e l i n e s w i l l meet t h e income r e d i s t r i b u t i o n g o a l s i d e n t i f i e d i n t h i s s t u d y . P o s i t i v e A p p r o a c h : W i t h i n t h e p r o v i n c i a l framework, however, how t h e b e n e f i t s o f F I c o u l d be d i s t r i b u t e d t o s o c i e t a l g r o u p s seems t o be t h e a s p e c t o f most c o n c e r n among t h e r e s i d e n t s r a t h e r t h a n s t r i c t l e g i s l a t i o n t o c o n t r o l F I . I f t h e g o v e r n m e n t d e c i d e s t h a t F I c a n p r o v i d e n e c e s s a r y d e v e l o p m e n t i n p u t s f o r i n d u s t r i a l d e v e l o p m e n t i n t h e f u t u r e , t h e s u r v e y r e s u l t s s u g g e s t t h a t more c o n s i d e r a t i o n s h o u l d be g i v e n t o t h e b e n e f i t d i s t r i b u t i o n e f f e c t o f F I p r o j e c t s among l o c a l r e s i d e n t s . The g o v e r n m e n t c o u l d recommend p o l i c i e s f o r f o r e i g n i n v e s t o r s s u g g e s t e d i n t h e f o l l o w i n g s u b - s e c t i o n , o r c o u l d t a k e j o i n t i n i t i a t i v e w i t h i n v e s t o r s i n o r d e r t o i n c r e a s e t h e l e v e l o f s a t i s f a c t i o n among t h e p o p u l a t i o n . 9 8 The p u b l i c s e c t o r c a n t a k e i t s own i n i t i a t i v e i n p l a n n i n g f o r r e g i o n s most d i r e c t l y a f f e c t e d w i t h more emphasis on s o c i a l f a c t o r s . The r e m e d i a l a p p r o a c h s h o u l d f u l f i l b a c k l o g s o c i a l n e e d s - i n a d e q u a t e s o c i a l s e r v i c e s and f a c i l i t i e s -. S i n c e o v e r l o a d e d s o c i a l f a c i l i t i e s w h i c h o c c u r e d w i t h p a s t F I p r o j e c t s i n l o c a l community seemed t o be one o f t h e c o n c e r n s o f l o c a l women as w e l l as o l d t i m e r e s i d e n t s , t h i s p r o b l e m s o l v i n g a p p r o a c h s h o u l d be s t r o n g l y recommended i n r e g i o n s where p a s t F I i n f l o w s were t h e h e a v i e s t . S p e c i f i c and t a n g i b l e programmes r e l a t i n g t o t h e p r o v i s i o n o f h o u s i n g , e d u c a t i o n , m e d i c a l c a r e , and s o c i a l a c t i v i t i e s s h o u l d be c o n s i d e r e d . The e x p a n s i o n a r y a p p r o a c h s h o u l d i n c o r p o r a t e t h e f o l l o w i n g programmes; (1) t h e e s t a b l i s h m e n t o f i n f o r m a t i o n c h a n n e l s between s e n i o r g o v e r n m e n t s and l o c a l r e s i d e n t s ; p r i o r c o n s u l -t a t i o n w i t h l o c a l c o m m u n i t i e s ; and p r o v i s i o n f o r s y s t e m a t i z i n g r e s i d e n t s ' o p i n i o n s i n t h e p l a n n i n g p r o c e s s , and(2) o v e r a l l s t r e n g t h e n i n g o f s o c i a l i n f r a s t r u c t u r e i n r e s o u r c e c o m m u n i t i e s , s t r e n g t h e n i n g w h i c h s h o u l d p r o v i d e f o r t h e n e e d s o f a l l s o c i e t a l s u b - g r o u p s i n c l u d i n g o l d r e s i d e n t s and new m i g r a n t s . T h e s e programmes may e r a d i c a t e f r i c t i o n s between l o c a l c o m m u n i t i e s and i n v e s t o r s and may h e l p t h e i n c r e a s e o f l e v e l s o f s a t i s f a c t i o n among l o c a l r e s i d e n t s i n t h e f u t u r e . 6.3.2. Recommendations f o r F o r e i g n I n v e s t o r s The f i n d i n g s o f t h e s t u d y i n d i c a t e t h a t f o r e i g n i n v e s t o r s s h o u l d m o d i f y t h e i r i n v e s t m e n t s t r a t e g i e s i n s e v e r a l ways i n o r d e r t o i n c r e a s e r e c e p t i v e n e s s t o t h e i r b u s i n e s s o p e r a t i o n s i n t h e h o s t r e g i o n . The f o l l o w i n g p o l i c i e s a r e recommended 99 to achieve t h i s . (1) The i n t e r n a l i z a t i o n of corporate p r o f i t s There were indications that part of the d i s s a t i s f a c t i o n with foreign investment originated i n the lack of i n t e r n a l i z a t i o n of corporate p r o f i t s within the project region. E s p e c i a l l y in resource f r o n t i e r regions, provision of s o c i a l services should be considered means of improving the climate of opinions toward future FI. Possible services which could be provided by the investing corporation are: (a) Joint development df infrastructure The private sector can take part i n physical infrastructure development, such as recreational and s o c i a l f a c i l i t i e s , road construction, and so f o r t h . For instance, the investor could plan, with the co-operation of the public sector, the dual purpose road, e.g. to work and to recreation s i t e , i n order to increase s o c i a l opportunities for workers. (b) Increase of employment opportunities and reduction of employment mismatch The r e d i s t r i b u t i o n of employment opportunities among the l o c a l population i s another possible issue that investors should investigate. Although the c a p i t a l - i n t e n s i v e nature of most resources industries may not be altered i n the short-run, some modifications could take place to increase labour i n t e n s i t y . Jobs related to logging and processing of mineral resources are the examples for t h i s p o l i c y . The increase i n employment opportunities should be directed to target groups i n l o c a l communities. The major manpower problems i n resource f r o n t i e r s are those of 100 s t r u c t u r a l unemployment, rep r e s e n t e d by a low female p a r t i c i -p a t i o n r a t e and the unemployment of the u n s k i l l e d and the n a t i v e p o p u l a t i o n . Programmes should be i n i t i a t e d to reduce t h i s employment mismatch i n or d e r t o a t t a i n more e q u i t a b l e d i r e c t i n g of jobs t o p r e v i o u s l y d e f i n e d t a r g e t groups. The i n v e s t o r can take the i n i t i a t i v e i n programmes such as jobs t r a i n i n g f o r the u n s k i l l e d , l e s s educated, and women, or o r g a n i z i n g town meetings and women's meetings to d i s c u s s p o s s i b l e job o p p o r t u n i t i e s f o r the groups.who, i n the pa s t , d i d not have the o p p o r t u n i t y to the job market. T h i s employment p o l i c y i s s t r o n g l y recommended f o r a l l i n v e s t o r s , s i n c e t h i s i s one of the major causes f o r o p i n i o n d i s c r e p a n c i e s toward FI among the B.C. r e s i d e n t s . (c) I n t e r - r e g i o n a l Manpower m o b i l i z a t i o n - v e r t i c a l i n t e g r a t i o n of workers N a t u r a l resource-based i n d u s t r i e s i n e v i t a b l y develop near to the n a t u r a l r e s o u r c e s themselves, w h i l e t h e i r c a s s o c i a t e d t e r t i a r y a c t i v i t y tends t o be concentrated i n the nodal c e n t r e of Vancouver. T h i s a c t i v i t y p a t t e r n r e s u l t s i n the dichotomized l a b o u r f o r c e , i . e . white c o l l a r and managerial s t a f f i n the m e t r o p o l i s and the blue c o l l a r work f o r c e i n the i s o l a t e d r e source f r o n t i e r where l e s s urban amenities and s e r v i c e s are o b t a i n a b l e . T h i s unbalanced d i s t r i b u t i o n o f labour f o r c e can be a l t e r e d by means of v e r t i c a l i n t e g r a t i o n of white c o l l a r workers and t e c h n i c i a n s i n the operating, r e g i o n . Although m u l t i n a t i o n a l c o r p o r a t i o n s p r e f e r to l o c a t e i n primate urban c e n t r e s i n order t o take f u l l advantage of urban i n f o r m a t i o n , communication systems, as w e l l as s e r v i c e s and other b e n e f i t s o f agglomeration; i f the government p r o v i d e s necessary i n f r a s t r u c t u r e , such as an e f f i c i e n t t r a n s p o r t a t i o n network and an information-communication system, some f u n c t i o n s c o u l d be r e l o c a t e d to the f r o n t i e r . Here, t e c h n o l o g i c a l change which was the major d r i v e of c e n t r i p e t a l f o r c e i n the u r b a n i z a t i o n p r o c e s s , i n t u r n , c o u l d be u t i l i z e d as a key f a c t o r f o r d e c e n t r a l i z a t i o n of o r g a n i -z a t i o n a l f u n c t i o n s . Through a computer f i l i n g _ system, f o r i n s t a n c e , communications between the headquarters i n the m e t r o p o l i s and the o p e r a t i n g s i t e i n the h i n t e r l a n d c o u l d be f a c i l i t a t e d . The i n - m i g r a t i o n o f h i g h l y - p a i d managerial s t a f f t o the d e v e l o p i n g r e g i o n would r e q u i r e more urban f a c i l i t i e s and the above-mentioned communication system. I f the v e r t i c a l i n t e g r a t i o n of the labour f o r c e through the s e l e c t i v e i n -m i g r a t i o n of white c o l l a r workers took p l a c e , i t would induce the expansion of the urban s e r v i c e s e c t o r i n the l o c a l economy. Since there i s a hig h female p a r t i c i p a t i o n r a t e i n the s e r v i c e s e c t o r , t h i s p o l i c y should i n c r e a s e the job o p p o r t u n i t i e s f o r l o c a l women. (2) J o i n t I n i t i a t i v e s to be taken w i t h the p u b l i c s e c t o r Most of the aforementioned p o l i c i e s and programmes cannot be implemented without the c o - o p e r a t i o n o f the p u b l i c s e c t o r . The j o i n t i n i t i a t i v e should a l s o be taken i n areas such as: (a) p u b l i c hearings - i n o r d e r to, open a channel of communi-c a t i o n among s e n i o r and l o c a l governments, f o r e i g n i n v e s t o r s , 102 and l o c a l r e s i d e n t s , and (b) t h e p r e p a r a t i o n o f s o c i o - e c o n o m i c -e c o l o g i c a l i m p a c t s t u d i e s p r i o r t o u n d e r t a k i n g m a j o r F I p r o j e c t s . 6.4. C o n c l u s i o n R e g i o n a l e c o n o m i c d e v e l o p m e n t i n B r i t i s h C o l u m b i a has l a r g e l y d e pended upon t h e e x p l o i t a t i o n o f t h e p r o v i n c e ' s n a t u r a l r e s o u r c e b a s e i n a l a i s s e z - f a i r e , f r e e e n t e r p r i s e e c o n o m i c c l i m a t e . W i t h i n t h e framework o f a " s t a p l e " t h e o r y o f e c o n o m i c d e v e l o p m e n t — by w h i c h e c o n o m i c h i s t o r i a n s ( I n n i s , S h e a r e r , P e a r s e , e t . a l . ) have e x p l a i n e d t h e g r o w t h o f B r i t i s h C o l u m b i a — f o r e i g n i n v e s t m e n t has p l a y e d a s i g n i f i c a n t r o l e i n s h a p i n g t h e p r e s e n t e c o n o m i c g e o g r a p h y o f t h e p r o v i n c e . However, i n c r e a s i n g c o n c e r n o v e r t h e p r e s e r v a t i o n o f p r i m a r y r e s o u r c e s f o r a n t i c i p a t e d d o m e s t i c r e q u i r e m e n t s s u g g e s t s a r e a s s e s s m e n t o f t h e f u t u r e r o l e o f F I i n p r o v i n c i a l d e v e l o p m e n t . T h i s t h e s i s h as a t t e m p t e d t o i d e n t i f y B.C. r e s i d e n t s ' p r e f e r e n c e s c o n c e r n i n g f o r e i g n i n v e s t m e n t , b a s e d on an a n a l y s i s o f q u e s t i o n n a i r e s u r v e y r e s u l t s . F u r t h e r -more, i t has a t t e m p t e d t o i d e n t i f y v a r i o u s u n d e r l y i n g d e v e l o p -ment g o a l s among s u b - g r o u p s o f t h e p o p u l a t i o n . A l t h o u g h a d i v e r s i t y o f p r e f e r e n c e has emerged f r o m t h e a n a l y s i s , t h e g e n e r a l c o n s e n s u s among a s i g n i f i c a n t p o r t i o n o f t h e r e s p o n -d e n t s i s t h a t p a s t e x p e r i e n c e s w i t h F I were n o t e n t i r e l y s a t i s f a c t o r y . I f , r e a l i s t i c a l l y , t h e p r o v i n c e s t i l l has t o r e l y on e x t r a - r e g i o n a l s o u r c e s ( e . g . c a p i t a l , l a b o u r , t e c h n o l o g y , and m a n a g e r i a l s k i l l s ) f o r i t s e c o n o m i c g r o w t h , t h e f i n d i n g s 103 o f t h i s study suggest t h a t investment p a t t e r n s should be m o d i f i e d both i n terms of economic and non-economic c r i t e r i a through the j o i n t i n i t i a t i v e s of government, and of f o r e i g n i n v e s t o r s . F o r e i g n investment c o u l d have a p o s i t i v e r e c e p t i v i t y among B.C. r e s i d e n t s i f both the p u b l i c and p r i v a t e s e c t o r s attempt to r e d i r e c t t h e i r development p r i o r i t i e s i n order t o meet the needs and wants i n d i c a t e d i n t h i s study. Black (1968) s t a t e d ; "when the p e r s p e c t i v e [ of n a t u r a l resource e x p l o i t a t i o n ] adopted by [ p o l i t i c a l p a r t i e s ] was t h a t the re s o u r c e s belong to the people and ought to be developed f o r t h e i r b e n e f i t , the q u e s t i o n Which People? remained unasked and unanswered i n t h i s p r o v i n c e " . 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The Fur Trade i n Canada: An I n t r o d u c t i o n  to Canadian Economic H i s t o r y . Toronto: U n i v e r s i t y of Toronto P r e s s , 1962. I s a r d , Walter. I n t r o d u c t i o n t o Regional Science. New J e r s e y : P r e n t i c e - H a l l Inc., 1975. Kootenay Task F o r c e . The Kootenays: An E v a l u a t i o n of Regional  P r o s p e c t s . February 1974. . Kootenay Region: S o c i a l , Demographic and Labour Force S t a t i s t i c s . Prepared f o r I.P.A. Regional S t u d i e s , Department of Economic Development, J u l y 1975. Lucas, Rex A. Minetown, M i l l t o w n , Railtown L i f e i n Canadian  Communities of S i n g l e I n d u s t r y . Toronto: U n i v e r s i t y o f Toronto P r e s s , 1971. Miernyck, W. Elements of Input-Output A n a l y s i s . New York: Random House, 19 57. 107 Moser, C A . Survey Methods i n S o c i a l I n v e s t i g a t i o n . London: Heinemann E d u c a t i o n a l Books L t d . , 1958. North,D.C. " L o c a t i o n Theory and Regional Economic Growth," Regional Economics: Theory and P r a c t i c e . E d i t e d by McKee, Dean and Leahy. (1970) 29-48. Paterson, D.G. European F i n a n c i a l C a p i t a l and B r i t i s h Columbia:  An Essay on the Role of the Regional Entrepreneur. D i s c u s s i o n Paper 73-20, U n i v e r s i t y of B r i t i s h Columbia, Department of Economics, November 1973. Paulson, P., M e l l o r I . , and Douglas Webster. A P r e l i m i n a r y  P r o f i l e of S o c i a l S t r u c t u r e , Manpower C h a r a c t e r i s t i c s  and Community C h a r a c t e r i s t i c s i n the Kootenay Region of  B.C. Prepared f o r I.P.A. S t u d i e s , Department of Economic Development. J u l y 1975. Perroux, F. "Note on the Concept of "Growth P o l e s " , R e g i o n a l  Economics: Theory and P r a c t i c e . E d i t e d by McKee, Dean and Leahy. (1970) 93-103. Ray, Michael D., "Canada: The Urban Challenge of Growth and Change," The Geography of Economic Systems. E d i t e d by Berry, C o n k l i n g , and Ray. (New J e r s e y : P r e n t i c e - H a l l , Inc. 1976) 271-285. Department of Regional Economic Expansion. B r i t i s h Columbia: Economic Circumstances and O p p o r t u n i t i e s . A paper prepared as a c o n t r i b u t i o n to f e d e r a l - p r o v i n c i a l c o n s u l t a t i o n s on r e g i o n a l development p o l i c y i n Canada. A p r i l 1973. . Western Region: Economic Circumstances and O p p o r t u n i t i e s . A p r i l 1973. Robinson, I r a . New I n d u s t r i a l Towns on Canada's Resource  F r o n t i e r . Chicago: U n i v e r s i t y of Chicago P r e s s , 1962. Shearer, R.A. (Ed.) Trade L i b e r a l i z a t i o n and A Regional Economy:  Stu d i e s of the Impact of Free Trade on B r i t i s h Columbia. Toronto: U n i v e r s i t y of Toronto P r e s s , 1971. . E x p l o i t i n g Our Economic P o t e n t i a l : P u b l i c P o l i c y and the B r i t i s h Columbia Economy. Toronto, Mo n t r e a l : H o l t , R i n e h a r t and Winston of Canada, L t d . 19 68. S i l v e r s , A r t h u r L. "The S t r u c t u r e of Community Income C i r c u l a t i o n i n an Incidence M u l t i p l i e r : f o r Developmental P l a n n i n g , " J o u r n a l of Regional S c i e n c e, 10:2 (1970): 175-189. 108 T i e b o u t , C h a r l e s . The Community Economic Base Study. New York: Committee f o r Economic Development, Supplement Paper No.16. 1962. T h i r s k , Wayne. Regional Dimensions of I n f l a t i o n and Unemployment. Ottawa: Government of Canada, P r i c e s and Income Commission. 1973. Tomlinson, J.W.C. and K. Sugiyama. A Study o f A t t i t u d e s towards F o r e i g n D i r e c t Investment i n B r i t i s h Columbia. U n i v e r s i t y of B.C. Trade Union Research Bureau. Who Owns B.C.? Vancouver, B.C. 1965. Webster, D.R. A P r e l i m i n a r y P r o f i l e o f S o c i a l Needs and O p p o r t u n i t i e s i n the North E a s t Region of B r i t i s h Columbia. Prepared f o r the North E a s t Task F o r c e , Department of Economic Development. . People of the Peace: T h e i r Goals and O b j e c t i v e s . Peace R i v e r Regional Planning Commission of A l b e r t a . 1972. Weiss, S. and E. Gouding. " E s t i m a t i o n of D i f f e r e n t i a l Employment M u l t i p l i e r s on a Small Regional Economy,". Land" Economics. '6:4 . (1968) : 235-244. Will i a m s o n , J.G. "Regional I n e q u a l i t y and the Process of N a t i o n a l Development: A D e s c r i p t i o n of the P a t t e r n s , " Regional A n a l y s i s , e d i t e d by L. Needleman, (1968): 99-158. 109 APPENDIX I B.C. SURVEY OF INTERNATIONAL INVESTMENT What country, apart from the U.S.A., do you think has the c l o s e s t trade r e l a t i o n s h i p with the Province of B r i t i s h Columbia? 1. United Kingdom 4. France 2. Japan 5. U.S.S.R. 3. West Germany 6. Other (Please describe) In which order do you rank the f o l l o w i n g c o u n t r i e s as importers of B.C. n a t u r a l resources? Rank from highest (1) to lowest (5). West Germany United Kingdom Japan U.S.A. People's Rep. of China For each of the f o l l o w i n g statements, please c i r c l e the number which you  f e e l i n d i c a t e s hov; the statement f i t s your o p i n i o n . I f you agree  completely with the statement you would c i r c l e ( 1 ) . Or, i f you disagree  completely, you would c i r c l e ( 1 0 ) , or your answer may be somewhere i n  between. [ 3. There i s too much f o r e i g n c a p i t a l being invested i n B.C. ' 1 ' 2 ' 3 ' 4 ' 5 ' 6 ' 7 ' 8 ' 9 ' 1 0 ' Strongly Strongly agree disagree 4. Raw m a t e r i a l s should be processed i n the province before being exported. ' 1 ' 2 1 3 ' 4 ' 5 1 6 1 7 1 8 1 9 1 10 1 S t r o n g l y S t r o n g l y agree disagree In general, f o r e i g n investment has been b e n e f i c i a l to the economic development i n the Province of B.C. ' 1 ' 2 1 3 ' 4 1 5 ' 6 1 7 1 8 ' 9 ' 10 1 Strongly Strongly agree disagree 6. a) Foreign investment has improved the q u a l i t y of l i f e i n B.C. 1 1 ' 2 ' 3 1 4 1 5 ' 6 1 7 ' 8 ' 9 1 10 ' Strongly Strongly, agree disagree b) I f you AGREE with the previous statement 6. a ) , i n what areas do you p a r t i c u l a r l y see the c o n t r i b u t i o n ? 1. Employment o p p o r t u n i t i e s f o r l o c a l communities 2. Income increase . 3. Increase of commodity goods a v a i l a b l e 4. S o c i a l amenities (housing, r e c r e a t i o n a l f a c i l i t i e s , t r a n s p o r t a t i o n , etc.) 5. Others (Please explain) , c) I f you DISAGREE with 6. a ) , i n what ways do you think i t has had negative e f f e c t s ? 1. Too much population concentration 2. I n s u f f i c i e n t r e t u r n to B.C. from e x p l o i t a t i o n of n a t u r a l resources 3. Removal of p r o f i t s / e a r n i n g s and i n s u f f i c i e n t reinvestment i n B.C. 4. Environmental p o l l u t i o n 5. D i s r u p t i o n of l o c a l communities 6. Others (Please explain) _ _ B.C. needs more investment from f o r e i g n countries. ' 1 ' 2 ' 3 ' 4 ' 5 ' 6 ' 7 ' 8 ' 9 ' 1 0 ' Strongly Strongly agree disagree 1 1 0 8. a) Do you know of any Japanese business a c t i v i t i e s or investment i n your community or region? 1. Yes. (Please go on to the f o l l o w i n g questions) 2. No. (Please go to question 9) b) If the answer i s 'Yes 1, what i s the nature of the industr y or the firm? c) What i s your impression of Japanese business people, i n general, . whom you see i n your community or region? In which f i e l d s of B.C. business do you th i n k Japanese c a p i t a l i s involved? 1. Mineral Resources 2. Petroleum and Natural Gas 3. F o r e s t r y 4. Pulp and Paper 5. Banking, Insurance and Real Estate 6. Manufacturing 7. A g r i c u l t u r e 8. Tourism 9 Supermarketing - R e t a i l 10. T r a n s p o r t a t i o n 11. Others (Please describe) 10. a) Do you see any s i g n i f i c a n t d i f f e r e n c e s between Japanese business o r g a n i z a t i o n s and Canadian counterparts? 1. Yes. 3. Not f a m i l i a r with them. 2. No. b) I f the answer i s 'Yes', please e x p l a i n . 11. How do you th i n k Japanese c a p i t a l investment should be tre a t e d i n B.C.? Please order your preferences from l:\(most.desirable) to 5 (le a s t preferred) i n both sections a) and b ) . a) In B.C.natural resource i n d u s t r i e s ? U n l i m i t e d - c a p i t a l investment should be allowed. I t should be allowed i f some Canadian c a p i t a l i s in v o l v e d . Around 50 percent involvement should be allowed. Less than 50 percent involvement should be allowed. No Japanese investment i s welcome. Undecided. b) In manufacturing i n d u s t r i e s i n B.C.? . Unlimited c a p i t a l investment should be allowed. I t should be allowed i f some Canadian c a p i t a l i s in v o l v e d . Around 50 percent involvement should be allowed. Less than 50 percent involvement should be allowed. No Japanese investment i s welcome. Undecided. i Comments: (Please turn over) I l l 12. Which of the following ^ejsjriptions do you consider accurate? (Please circle the number of che description in both a) and b}.) a) In Japan, natural resources are: 1. abundant - Japan exports natural resources. 2. adequate - Japan is self-sufficient. 3. scarce - Japan relies heavily on imports. b) Japan: 1. is one of the most industrialized and urbanized nations in the world. 2. has been industrialized recently. 3. is less industrialized than most western countries. For, each of the following statements, please circle the number which  you feel indicates how the statement fits your opinion. ~ . 13. Japanese business involvement in the province has increased direct or indirect employment opportunities. Strongly ————————— Strongly agree disagree 14. Japanese investment will increase local employment opportunities in the future. ^ 1 ' 2 ' 3 • 4 ' 5 ' 6 * 7 • 8 ' 9 ' 10 • S t r o n g l y S t r o n g l y agree disagree IS. Increasing Japanese investment in B.C. is likely to cause political friction in the future. • 1 • 2 • 3 ' 4 ' 5 ' 6 ' 7 • 8 ' 9 ' 10 ' S t r o n g l y S t r o n g l y agree disagree 16. Increasing Japanese investment in B.C. is likely to cause social friction in the future. • 1 ' 2 • 3 • 4 ' 5 ' 6 ' 7 • 8 e 9 ' 10 • S t r o n g l y ; S t r o n g l y agree disagree 17. Japanese firms in B.C. are more likely to try to cooperate with the provincial government than are Canadian companies. • 1 • 2 * 3 1 4 ' 5 • 6 ' 7 ' 8 • 9 • 10 ' S t r o n g l y S t r o n g l y agree disagree Any other comments: It would also help greatly in classification of the survey results i f you could complete the following general information about yourself. A l l replies are confidential. (Please circle the appropriate category number in each question) 18, Sex: Male Female 19. Ages 1. 15-19 2. 20-24 3. 25-29 4. 30-34 5. 35-49 6. 50-59 7. 60 and over 2 0 . Citizenship: 1. Canadian 2. Other (Please specify) 112 21. Educational l e v e l : (Please place an 'x' i n the appropriate columns) Level Some Completed Elementary Secondary U n i v e r s i t y V o c a t i o n a l School or r e l a t e d 22. Occupation: a) Which of the f o l l o w i n g represents the type of work a c t i v i t y you are engaged in? 1. A g r i c u l t u r e 2. F o r e s t r y 3. F i s h i n g and Trapping 4. Mines, Quarries, O i l Wells 5. Manufacturing i n d u s t r i e s 6. Construction 7. Tr a n s p o r t a t i o n , Communication 8. Other U t i l i t i e s 9. Trade 10. Education 11. Finance, Insurance, Real Estate 12. Community Business - Personal Service I n d u s t r i e s 13. P u b l i c A d m i n i s t r a t i o n and Defence 14. Other (Please describe) b) What i s the nature of your present job? 2 3. How many years have you l i v e d i n B.C.? 1. Less than 1 year 4. 6 - 9 years 2. 1 - 3 years 5. 9 years and over 3. 3 - 6 years 6. A l l your l i f e 2 4. To what newspapers or j o u r n a l s do you subscribe? (Please name them) .1. ' L o cal • • " •-• '_ '2: ' N a t i o n a l : ' " ' "' -'--••*-• • - • •. • "• - •--3. I n t e r n a t i o n a l 2 5. Please c i r c l e the number of the regi o n where you l i v e on the map 2 6. Household Annual Income: 1. $ 0 - $ 5,999 2. $ 6,000 - $ 7,999 3. $ 8,000 - $ 9,999 4. $ 10,000 - $11,999 5. $12,000 - $14,999 6. - $15,000 - $19,999 7. $20,000 - $24,999 8. $25,000 and over 113 s APPENDIX I I PER CAPITA VALUE OF FACTORY SHIPMENTS IN B.C. ECONOMIC SUB-REGIONS, 1971 Economic R e g i o n a l D i s t r i c t G r o s s V a l u e P o p u l a t i o n P e r C a p i t a S u b - r e g i o n s o f Shipments (1971 Census) V a l u e o f ($000)1971 F a c t o r y S h i p m e n t s E a s t Kootenay E a s t K o o t e n a y 64,022 39,720 $1 ,612 C e n t r a l and West Kootenay C e n t r a l K o o t e n a y 65,552 49,059 44,790 30,640 1 ,519 Okanagan C e n t r a l Okanagan Kootenay Boundary N o r t h Okanagan Okanagan-S i m i l k a m e e n 77,859 71,976 49,151 35,027 50,175 31,395 34,040 42,750 158,360 1, 477 Thompson S q u a m i s h - L i l l o o e t 48,378 98,483 13,080 75,750 88,830 1, 653 G r e a t e r V a n c o u v e r G r e a t e r V a n c o u v e r 2,112,067 C e n t r a l F r a s e r V a l l e y 68,063 D e w d n e y - A l o u e t t e 149,49 0 ( i n c l . S u n s h i n e C o a s t and P o w e l l R i v e r ) F r a s e r - C h e a m 40,697 1,028,330 . 58,085 40,100 9,655 18,535 49,095 2, 370,317 1,200,800 1, ,974 V a n c o u v e r I s l a n d A l b e r n i - C l a y o q u o t ( I n c l . M o u n t Waddington) C a p i t a l C owichan V a l l e y C o m o x - S t r a t h c o n a Nanaimo 172,799 150,678 144,511 120,534 103,636 31,745 10,410 204,805 38,985 47,345 48,005 692,158 381,295 1 ,815 C e n t r a l C a r i b o o B u l k l e y - N e c h a k o F r a s e r - F o r t George 75,515 37,389 212 ,747 39,355 27,145 64,365 ,488 325,651 130,865 2 N o r t h West • K i t i m a t - S t i k i n e ( i n c l . S t i k i n e ) . Skeena A Oc e a r n F a l l s 148,158 86,310 13,662 248,130 37,330 1,470 22,295 4 ,215 65,310 3 ,799 N o r t h E a s t Peace R i v e r - L i a r d 40,207 43,995 914 ' S o u r c e : B r i t i s h C o l u m b i a M a r k e t D a t a , S u r v e y o f M a r k e t s 1974-75. 

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