ECONOMIC RESTRUCTURING IN RESOURCE-DEPENDENT COMMUNITIES IN THE AFTERMATH OF MILL/MINE CLOSURE: A COMPARATIVE CASE STUDY OF VALEMOUNT AND TUMBLER RIDGE IN NORTHERN BRITISH COLUMBIA by Richard Darko BA Kwame Nkrumah University of Science and Technology, 2012 MA University of Northern British Columbia, 2019 THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS IN NATURAL RESOURCE AND ENVIRONMENTAL STUDIES University of Northern British Columbia August 2022 ©Richard Darko, 2022 ABSTRACT Beyond the devastating effects on a community, deindustrialization can present an opportunity for change by highlighting the perilous effect of over-dependence on a single industry and motivating local stakeholders to enact change through the processes of social capital and cohesion as well as local economic development. In small, historically resource-dependent communities, de-industrialization has shifted the focus from staples-based development to a more diverse economy rooted in place-based development. At the same time, the shift from FordistKeynesianism toward Post-Fordist Neoliberalism has limited companies’ obligations toward resource towns as they work through these transitions. Focusing on the case studies of Valemount and Tumbler Ridge, this thesis draws upon a comparative case study approach, key informant interviews, and analysis of documents for a deeper understanding of the processes, strategies, and outcomes regarding this transition. The thesis offers the following findings: First, the shift from a single industry to a diversified economy provides a clear case of a transition towards place-based development. Second, the emerging place-based development trajectory emphasizes the importance of local empowerment and management, strategic investments, social capital/cohesion, local capacity and planning, and government support in transitioning resource towns. Third, the shift from Fordist-Keynesianism to Post-Fordist Neoliberalism has resulted in retrenchment in corporate community development. Additionally, these findings support policy coordination to scale-up social and economic infrastructure, service support, and resources to help maintain place competitiveness and adaptability to future changes. Community transition must be restructured according to local context and needs. Integrating social impact mitigation into the existing BC Environmental Mitigation Policy and permitting process will help foster community sustainability and economic development. ii Table of Contents Abstract ........................................................................................................................................... ii List of Tables ................................................................................................................................ vii List of Figures .............................................................................................................................. viii Acronyms ....................................................................................................................................... ix Acknowledgements ....................................................................................................................... xi Chapter 1 Introduction .....................................................................................................................1 1.0 Background of Study .................................................................................................................1 1.1 Research Problem .....................................................................................................................1 1.2 Research Questions ....................................................................................................................3 1.3 Significance of the Study ...........................................................................................................4 Chapter 2 Literature Review ............................................................................................................7 2.0 Introduction ................................................................................................................................7 2.1 General Context of Resource Towns and Industries .................................................................7 2.1.1 Resource Development in British Columbia .........................................................................7 2.1.2 Resource-Dependent Communities .......................................................................................9 2.1.3 Neoliberalism and Resource Towns .....................................................................................11 2.1.4 Globalization and Resource Towns .....................................................................................14 2.1.5 Resource Industries and Corporate Social Responsibility ...................................................16 2.1.6 Economic Restructuring and Diversification ........................................................................21 2.2 Conceptual/Theoretical Framework .........................................................................................24 2.2.1 Staples Theory ......................................................................................................................25 2.2.2 Core-Periphery Relationship .................................................................................................26 2.2.3 Social Capital/Cohesion and Community Capacity .............................................................29 2.2.4 Place-Based Development ...................................................................................................32 2.2.5 Conclusion ............................................................................................................................36 Chapter 3 Research Context...........................................................................................................37 iii 3.0 Introduction ..............................................................................................................................37 3.1 Tumbler Ridge, British Columbia............................................................................................37 3.1.1 Geographic Context ..............................................................................................................37 3.1.2 Community Evolution ..........................................................................................................38 3.2 Socio-Economic Characteristics ..............................................................................................42 3.2.1 Population Dynamics ............................................................................................................42 3.2.2 Labour Market Dynamics .....................................................................................................43 3.3 Valemount, British Columbia ..................................................................................................44 3.3.1 History and Geographic Context .........................................................................................44 3.3.2 Forestry Industry and Mill Closures .....................................................................................46 3.5 Socio-Economic Characteristics ..............................................................................................47 3.5.1 Population Dynamics ............................................................................................................47 3.5.2 Labour Market Dynamics .....................................................................................................48 3.6 Conclusion ...............................................................................................................................49 Chapter 4 Methodology and Methods............................................................................................51 4.0 Introduction ..............................................................................................................................51 4.1 Methodology ...........................................................................................................................51 4.2 Method .....................................................................................................................................51 4.2.1 Case Study Research .............................................................................................................51 4.2.2 Comparative Case Study .......................................................................................................52 4.2.3 Case Study Selection ............................................................................................................53 4.2.4 A Conceptual Framework for Comparison ..........................................................................54 4.3 Data Collection Method ..........................................................................................................55 4.3.1 Primary Data ........................................................................................................................56 4.3.2 Secondary Data ....................................................................................................................62 4.4 Data Analysis ...........................................................................................................................63 4.4.1 Latent Content Analysis ........................................................................................................64 4.4.2 Document Analysis ...............................................................................................................65 4.5 Ensuring Rigour .......................................................................................................................66 4.6 Conclusion ...............................................................................................................................67 iv Chapter 5 Results and Findings .....................................................................................................69 5.0 Introduction ..............................................................................................................................69 5.1 Factors Underpinning the Mill Closures ..................................................................................70 5.2 Factors Underpinning the Mine Closures ...............................................................................75 5.3 Coping and Transition Strategies .............................................................................................76 5.3.1 Economic Diversification/Sustainability ..............................................................................76 5.3.2 Community Revitalization ....................................................................................................98 5.3.3 Social Capital ......................................................................................................................103 5.5 The Role of the Industry .......................................................................................................105 5.6 Transition Challenges ............................................................................................................109 5.7 Conclusion .............................................................................................................................116 Chapter 6 Discussion of findings .................................................................................................119 6.0 Introduction ............................................................................................................................119 6.1 Moving Towards Place-Based Development Path ................................................................119 6.2 Moving Towards A Diversified Economy ............................................................................126 6.3 Economic Change .................................................................................................................132 6.4 Contextualizing the Changing Role of Resource Industries in Local Economic Development ......................................................................................................................................................135 6.5 Conclusion .............................................................................................................................143 Chapter 7 Conclusion ...................................................................................................................145 7.1 Research Questions and Findings ..........................................................................................145 7.2 Policy Recommendation ........................................................................................................149 7.3 Future Research Direction .....................................................................................................152 7.4 Closing ...................................................................................................................................153 Bibliography ................................................................................................................................155 Appendix A: UNBC Research Ethics Board Approval ..............................................................186 Appendix B: Information Letter/Consent Form .........................................................................187 Appendix C: Interview Guide ......................................................................................................191 Appendix D: Latent Content Analysis Results: Valemount ........................................................194 Appendix E: Latent Content Analysis Results: Tumbler Ridge ..................................................196 v Appendix F: Summary of Valemount Economic Development/Sustainability Plans ......................................................................................................................................................198 Appendix G: Summary of Tumbler Ridge Economic Development/Sustainability Plans ......................................................................................................................................................200 Appendix H: Comparison of Case Studies .................................................................................202 Appendix I: Appendix I: Valemount: Employment by Selected Industries, 1981– 2016 ...........203 Appendix J: Appendix J: Tumbler Ridge: Employment by Selected Industries, 1986–2016 .....204 vi List of Tables Table 2.1: Life-Cycle Models of Growth in Resource Towns.......................................................28 Table 3.1: Tumbler Ridge: Population Change, 1986 - 2021 ........................................................43 Table 3.2: Tumbler Ridge: Labour Force Characteristics, 1986 – 2016 .......................................44 Table 3.3: Valemount: Population Change, 1981 – 2021 ..............................................................48 Table 3.4: Valemount: Labour Force Characteristics, 1981 - 2020 ...............................................49 Table 4.1: Key Variables for Comparison ....................................................................................54 Table 4.2: Sampling Framework....................................................................................................58 Table 5.1: Summary of Thematic Findings ...................................................................................69 Table 5.2: Harvest history in the Robson Valley TSA (2001-2011) .............................................71 Table 5.3: Dead Pine in Robson Valley Timber Supply Area and Community Forests (2012) ........................................................................................................................................................74 vii List of Figures Figure 3.1: Map of the Peace River District ..................................................................................38 Figure 3.2: Map of Fraser-Fort-George Regional District .............................................................45 Figure 4.1: A Comparative Transition Framework .......................................................................54 Figure 5.1: Valemount Mountain Biking, Snowmobiling, and Hiking Trail System ..................... 82 Figure 5.2: Valemount’s New Visitor’s Information Center .........................................................83 Figure 5.3: Valemount - Visitor's Trend ........................................................................................83 Figure 5.4: Tumbler Ridge Dinosaur Museum Gallery .................................................................85 Figure 5.5: Tumbler’s New Visitor’s Information Center .............................................................87 Figure 5.6: Tumbler Ridge - Visitor's Trend .................................................................................87 Figure 5.7: Tumbler Ridge Global Geopark Geosites ...................................................................88 Figure 5.8: Logging Operations around Valemount, BC ...............................................................89 Figure 5.9: Valemount Industrial Park .................................................................................................. 91 Figure 6.1: Wind Farm near Tumbler Ridge .................................................................................95 Figure 6.2: Conuma Coal Wolverine Mine Operation...................................................................96 Figure 6.3: HD Mining Worker Housing Project ..........................................................................97 Figure 6.4: Downtown Revitalization ..........................................................................................100 Figure 6.5: A Newly Constructed 13-Unit Apartment Building ...................................................... 102 Figure 6.6: Architectural Impression of the Valemount Cares Project ........................................103 viii Acronyms AAC ADSL ATV BC BCMCD BCMMA BCMoFR BHA BRE CAO CBT CCD CDI CED CFSP CIP CNR CREDA CS CSOs CSR CTP DIDO EDP ENGOs FIFO FMBEP GOC ICSP ICURR IFC IREDP LDC LPG LRMP MDA MICE MLG MPB MRDT MSRM NDIT NGO NTFP Annual Allowable Cut Asymmetric Digital Subscriber Line All-Terrain Vehicle British Columbia British Columbia Ministry of Community Development British Columbia Ministry of Municipal Affairs British Columbia Ministry of Forests Brent Harley and Associates Business Retention and Expansion Chief Administrative Officer Columbia Basin Trust Corporate Community Development Community Development Institute Community Economic Development Community Forest Strategic Plan Community Initiatives Program Canadian Natural Resources Canoe Robson Education Development Association Centre for Sustainability Civil Society Organizations Corporate Social Responsibility Community Tourism Plan Drive-in-Drive-out Economic Development Plan Environmental Non-Governmental organizations Fly-in-Fly-out Federal Mountain Beetle Epidemic Program Government of Canada Integrated Community Sustainability Plan Intergovernmental Committee on Urban and Regional Research International Financial Corporation Investment Readiness and Economic Development Plan Long-Distance Commuting Liquified Natural Gas Land and Resource Management Plan Master Development Agreement Meetings, Incentives, Conventions, and Exhibitions Multilevel Governance Mountain Pine Beetle Municipal and Regional District Tax Ministry of Sustainable Resource Management Northern Development Initiative Trust Non-Governmental Organizations Non-Timber Forest Products ix OCP OECD PNG PRPRC RDFFG RMC RMI RVTSA SELUSR SEOS SICEAI SLA SLO SMRM SRMP TRCF TRCFSP TRLMPAR TRMBA TRMF TRPCR TRSS TRUGGS TSA UNBC UNESCO VAEDP VAEDC VARDA VARS VCF VCP VGDMP VIP VLC VLS VSCHS VSEOS VSS W.A.C WADC WMC YORA Official Community Plan Organization for Economic Cooperation and Development Pacific Northern Gas Peace Region Palaeontology Research Centre Regional District of Fraser-Fort George Resource Municipalities Coalition Resort Municipality Initiative Robson Valley Timber Supply Area Socio-Economic and Land Use Impact Analysis Study and Report Socio-Economic Opportunity Study Softwood Industry Community Adjustment Economic Initiative Softwood Lumber Agreement Social License to Operate Strategic Marketing Road Map Sustainable Resource Management Plan Tumbler Ridge Community Forest Tumbler Ridge Community Forest Sustainability Plan Tumbler Ridge Labour Market Partnership Agreement Report Tumbler Ridge Mountain Bike Association Tumbler Ridge Museum Foundation Tumbler Ridge Public Consultation Report Tumbler Ridge Secondary School Tumbler Ridge UNESCO Global Geopark Society Timber Supply Area University of Northern British Columbia United Nations Educational, Scientific and Cultural Organization Valemount Area Economic Development Plan Valemount Area Economic Development Commission Valemount and Area Recreation Development Association Valemount Affordable Rental Society Valemount Community Forest Valemount Community Profile Valemount Glacier Destination Master Plan Valemount Industrial Park Valemount Learning Centre Valemount Learning Society Valemount Senior Citizen’s Housing Society Valemount Socio-Economic Opportunity Study Valemount Secondary School William Andrew Cecil Western Economic Diversification Canada Western Management Consultant Yellowhead Outdoor Recreation Association x Acknowledgment I would like to extend gratitude and appreciation to my supervisor Dr. Greg Halseth for his unwavering support and guidance throughout my studies. His advice and mentorship shaped the quality of this thesis. I would also like to thank Dr. Gary Wilson and Dr. Mark Groulx for their valuable comments, insights, and contributions, which have profoundly improved the quality of this thesis. Special thanks go to Laura Ryser for her guidance during the fieldwork. I would also like to extend my heartfelt gratitude to the people of Valemount and Tumbler Ridge for making time out of their busy schedules to participate in this project. Without them, this thesis would not have been possible. To all my friends and family, thank you for your words of encouragement and support throughout this journey. My sincere gratitude to my deceased mom, whose sudden demise occurred during my return home to Ghana. Your love and unwavering support will be forever remembered. xi Chapter 1: Introduction 1.0 Background of Study Northern rural communities across British Columbia (BC) depend primarily on resource industries for economic and social survival (Walisser et al., 2005). As a result, these communities are vulnerable to the boom-and-bust cycles associated with the resource extraction sector (Markey et al., 2005; Natural Resource Canada, 2005a; Reed, 2003a, 2003b; Miller, 2000). This, coupled with industrial restructuring, has resulted in cost minimization measures, production curtailment, and industrial closures (Hak, 2007; Barnes, 2005; Hayter, 2003). These measures have exacerbated resource towns’ economic instability, community decline, and social deterioration (Markey et al., 2012; Rural and Small-Town Programme, 2007; Walisser et al., 2005). These conditions continue to worsen due to the hollowing out of the state’s responsibilities in an era of Neoliberalism (Nel & Stevenson, 2014, 2019). While there have been several calls for resource towns to diversify, existing theories (i.e., Staples Theory, New Regionalism, Evolutionary Economic Geography, and the core-periphery relations) suggest that resource towns have limited options for economic diversification due to structural rigidities, entrenched institutional structures, the political economy of resource development, and the continued reliance on traditional resource industries (Halseth & Ryser, 2018). 1.1 Research Problem Despite the theoretical observations, capacity, resources, and policy constraints, many resource towns are undergoing economic restructuring and transition. In northern BC, several resource towns have de-emphasized reliance on fixed resources as they move towards a diversified economy based on place-based development. Place-based development emphasizes the long-term adaptive capacity necessary to construct and maintain competitiveness and resilience (Markey et 1 al., 2008a). While there is extensive literature on transitioning resource towns, there has been little empirical focus on the economic transition pathway. Resource extraction has dominated the economic space of many northern communities (Walisser et al., 2005), leaving them vulnerable to economic shocks. De-industrialization has shifted the focus of many resource towns from resource dependence to economic diversification (Burnett & Brunelle, 2019; Clemenson, 1992; Fletcher et al., 1991). This enables communities to mitigate economic risk or leverage new economic opportunities to foster growth and development (Page & Beshiri, 2003). In addition, the cyclical nature of resource extraction has necessitated economic renewal (Burnett & Brunelle, 2019; Asscher et al., 2016). Despite the imperative, not all resource towns have diversified (Binns & Nel, 2003; O’Faircheallaigh, 1992; Nygren & Karlsson, 1992). However, in northern BC, we can examine cases of economic transition from a single-industry-based economy to a more diversified and sustainable economy. Thus, this thesis examines economic transition in a historically resource-dependent communities. Industrial restructuring has occurred alongside a shift from Fordist- Keynesianism toward Post-Fordist Neoliberalism (McCarthy, 2006; Harvey, 2005a, 2005b; Peck & Tickell, 2002)1. In the forestry sector, Neoliberalism has been characterized by liberalizing markets, forest tenure, and processing activities (Young & Matthews, 2007). These processes have led to the rationalization and concentration of production (Martin, 2012), and a shift towards flexible and lean production (Barnes, 2005) in order to focus on productivity and profit maximization 1 Fordist-Keynsianism describes a regime of accumulation based on mass production that is regulated by a central welfare state. Regional development policy was aimed at balancing regional disparities through topdown planning focused on large-scale megaprojects and mitigating boom-bust cycles through the provision of social safety nets. Post-Fordist Neoliberalism refers to a movement towards a decentralized state focused on eliminating market restrictions through deregulation. Regional development is encouraged through increased emphasis on achieving self-sufficiency and direct engagement in the global economy (Breathnach, 2010; Peet, 2007). 2 (Bradbury & St-Martin, 1983). In the mining sector, neoliberal reforms have taken the form of the fly-in, fly-out, or drive-in, drive-out (FIFO/DIDO) model based on a long-distance commuting system (Ryser et al., 2017; Carrington & Pereira, 2011; Storey, 2001; Houghton, 1993). The FIFO commuting system does not require workers to permanently reside near industry operations (Tonts et al., 2012). These shifts have weakened companies’ obligations toward the resource towns (Martin, 2012; Taylor & Simmonds, 2009). The recent neoliberal endeavour to reframe company-community relationships via Corporate Social Responsibility (CSR) has tended to focus primarily on corporate community development (CCD), which is often disconnected from local needs and hence less successful in contributing to a sustainable local economy (Addison & Alan, 2018). These shifts have had a profound implication for the ‘social contract’ that links resource extraction to community stability and livelihoods (Martin, 2012; Taylor & Simmonds, 2009). Yet, studies that focus on companies’ involvement in local economic development within this context are limited. Thus, this thesis focuses on Valemount and Tumbler Ridge, as they have experienced a change in their respective dominant industry. In particular, the recent deindustrialization across northern BC has resulted in industrial closures in the communities. At the same time, companies’ involvement in local economic development has shrunk due to the global shift and the adoption of Neoliberal-Post Fordist institutional structures. The communities have responded to these changes through a place-based economic transition. 1.2 Research Objective and Questions The aim of this thesis is to explore economic transition and the changing roles of resource companies in resource towns. The goal is to gain a deeper understanding of the processes and the strategies shaping small-town economic transition and its impact on the local economy. A greater 3 understanding of the processes and strategies informing this transition will help strengthen local economic development and policy. Further, a deeper insight into how companies’ roles have changed can help resource towns pursue alternative forms of economic development and diversification. Specifically, the thesis seeks to address the following questions: 1. What transition pathway was adopted by the resource-dependent communities after the mill/mine closures? 2. What was the objective (s) of the transition process, and were they achieved? 3. What was the role of the resource companies in the transition process? 1.3 Significance of the Study A review of the literature shows that a comparative analysis of resource towns’ transition is barely addressed. While there is a theoretical understanding of the shift from space-based to place-based development and its implications for transitioning resource towns (Markey et al., 2012; Markey et al., 2008a; Halseth et al., 2010; Markey et al.,2006), little is known about the empirical aspect of this shift. The resource town literature has overly focused on political, social, environmental, and demographic change (Pressman & Lauder, 1978; Reimer, 2002a; Teitelbaum et al., 2003; Hayter, 2000a), with little attention to economic restructuring and diversification. Many studies have focused on the nature and implications of company-community relationships based on paternalistic institutional structures and Fordist-Keynesian approaches to economic development (Rollwagen, 2007, 2006; White, 2004; Schulman, 1999; Solecki, 1996; Lucas, 1971; Porteous 1970a; 1970b). In this context, companies and the state were involved in economic development, service and infrastructure provision, community planning, and governance (Quark, 2007; Houghton, 1993; Bowles, 1982; Pressman & Lauder, 1978; Lucas; 1971). In the era of Post-Fordist Neoliberalism, the nature of corporate obligations toward resource 4 towns has changed (Hoppe et al., 2007). This thesis addresses these gaps by examining placebased responses to economic shifts, and by situating the changing roles of companies within the broader context of global change and neoliberal policy shifts. This thesis also contributes to understanding economic transition by highlighting the importance of ‘place,’ local empowerment and management, strategic investments, social capital, local capacity, and government support in transitioning resource towns. The shift from reliance on fixed resources to amenity and tourism-driven industry, community forestry, wind energy generation, innovative and knowledge-based industry, and amenity retirement suggests a clear case of a transition toward place-based development. Therefore, understanding resource town transition can help advance rural development policy towards supportive and feasible place-based policies and practices. These strategies can help revitalize and strengthen local economies, improve the livelihood of residents, help maintain place competitiveness and adaptability to future changes, and help ensure long-term sustainable development (Halseth et al., 2010). Understanding the current state of industry’s role in local economic development can help streamline existing resource development policy to foster community sustainability and economic development. The rest of the thesis is organized into six chapters. Chapter 2 explores the theoretical literature on resource town transition and different processes influencing company roles. Chapter 3 provides a discussion of the case study areas. In particular, the history, location, and socioeconomic characteristics. In Chapter 4, the research approach, methods for data collection, sampling technique, case study selection framework, and the method of analysis are established. Chapter 5 presents the research findings. It explores the causal factors underpinning the mill/mine closures, the coping and transition strategies, the industry’s role, and the challenges undermining 5 small-town transition. Chapter 6 provides a detailed discussion of the research findings in relation to the research questions and the literature. Chapter 7 concludes the thesis by summarizing the importance of the research findings and drawing policy implications. The chapter provides future research directions and concluding remarks. 6 Chapter 2: Literature Review 2.0 Introduction This chapter is organized into three parts. The first part addresses the background and context of resource towns and industries. The second focuses on economic restructuring and diversification. The third explores the theories that underpin this thesis. The chapter provides a contextual understanding of the political economy of resource towns, economic restructuring, and structural forces shaping rural places and regions. 2.1. General Context of Resource Towns and Industries This subsection provides a detailed review of the existing literature on (i) resource development in BC, (ii) resource-dependent communities, (iii) Neoliberalism, (iv) globalization, (v) economic restructuring and diversification, and (iv) corporate social responsibility. These background themes set the context for understanding social, economic, and political change within resource towns. 2.1.1 Resource Development in British Columbia Northern BC has long been described as a ‘resource bank’2 of the province (Markey et al., 2008a). The region’s economy depends heavily on resource extraction and the export of raw commodities to external markets (Jackson & Illsley, 2006). As a result, resource towns are vulnerable to the vagaries of the commodity market. Reliance on the traditional resource sector means that rural and remote resource towns will continue to experience boom-bust cycles. As part of the post-war economic restructuring and response to global demand for resources, W.A.C Bennett’s Social Credit government (1951–1972) adopted a resource 2 Resource bank is defined as “the practice of using the vast resource wealth of the hinterland for the purposes of either province building or supporting infrastructure and service spending within the metropolitan core.” (Markey et al., 2008, p.12). 7 development policy based on the principle of public investment to facilitate resource development in the interior region of BC. Under this development policy, the government funded infrastructure and established a favourable tax regime to attract foreign investment. Thus, resource industry growth, coupled with the prolonged boom in the immediate post-war period, led to massive state investments in new highways, instant towns, facilities, and services to attract workers to remote resource towns (Halseth, 2017; Sullivan et al., 2014; Scarpa, 2013). Further, resource companies were required to provide social and economic infrastructure (i.e., housing, streets, schools, transport, hospitals, and recreational facilities) to foster economic development in the hinterlands (Houghton, 1993; Bowles, 1982; Lucas; 1971). In BC, an ‘Instant Towns Act’ was enacted in 1965 to serve as a legal framework to facilitate the construction of new resource towns to serve the growing mining and forest industries (Bradbury, 1980). Between 1965 and 1986, ten instant towns (7 new, 3 expanded) were built (Gill, 2002; Bradbury, 1980). These towns included: Gold River (pulp); Port Alice (pulp and paper); Mackenzie (pulp and paper); Fraser Lake (molybdenum); Granisle (copper); Logan Lake (copper and molybdenum); Elkford (coal); Sparwood (coal); Port Hardy (copper); and Tumbler Ridge (Coal). The province assumed responsibility for urban development, which “reflected in part an increased importance of resource development as a political tool in regional economic development” (Gill, 2002: 116). They incorporated contemporary standards of design and facilities into the town planning and recognized the need for services to address social issues associated with company towns. Over time, the provincial and federal governments withdrew their financial support for municipal service delivery (Jackson & Illsley, 2006). Harold Innis described this pattern of growth as a ‘staples’ development pathway (Jackson & Illsley, 2006). Such a pathway exposes the Canadian economy to “weaknesses in other lines of development, dependence on 8 highly industrialized areas for markets and supplies of manufactured goods, and the dangers of fluctuations in the staple commodity” (Innis, 1933: 6). Despite the unsustainable nature of resource-based economies, resource extraction continues to drive rural and small-town economies. Particularly, Horne (2009b) drew upon the 2006 census data and found that many rural communities in BC remain undiversified and highly dependent on forestry. 2.1.2 Resource-Dependent Communities The evolution of sawmills and remote forestry towns in Canada dates back to the preindustrial era (Williamson & Annamraju, 1996; Barnes & Hayter, 1992). As these communities grew, the provincial government saw the need to create regulations to promote social and economic development. Between 1950 and 1960, lumber, plywood, and pulp production had increased, culminating in the rapid growth of forestry towns, especially in the interior of BC (Barnes & Hayter, 1992). As many forestry towns became fully incorporated as municipalities, control and management of the towns were transferred from the companies to the residents (Williamson & Annamraju, 1996). To link the forestry industry to rural economic prosperity, the BC government introduced the appurtenancy policy to ensure that logs harvested in a particular locality are processed in the same area (Marchak &Allen, 2003). However, the companies were concerned about how the new town managers could maintain the towns’ quality of life and stability by developing and implementing measures that ensure a constant timber supply to support the town’s economic base. The ‘forestry boom’ was soon truncated with considerable downsizing and closures in the 1970s and 1980s (Barnes & Hayter, 1992). This economic downturn was mainly caused by the high energy costs, high inflation, decreased housing starts, decreased demand for wood (Luloff, 1990), efficient technologies, and change in demand (Barnes & Hayter, 1992). Between 2003 and 9 2007, 22,000 jobs were lost at about 184 mills country-wide (Canadian Press, 2008). These job losses pose a severe challenge to the sustainability of forestry towns (Williamson & Annamraju, 1996). Mining towns across Canada have also experienced significant economic change. Between 1880 and 1914 marked an era of company dominance, with a surge of many unplanned mining communities (Robson, 1991). Between 1918 and 1939, the rising concern for social issues associated with unplanned communities led to the establishment of company towns; controlled and managed by companies with limited government involvement. Between 1945 and 1970, planned mega-projects were constructed alongside several company towns near the mine sites. The recession of the 1980s compelled the closure of many mine towns. Thus, 1980 – 1991 represented a period of crisis management for many mining towns. While many companies shut down due to global price fluctuations and resource exhaustion, others downsized due to new efficient technology and the adoption of the fly-in/fly-out commuting model. Over time, this new reality and mine closures threatened the sustainability of once vibrant mining towns. Historically, resource-dependent communities were small rural and remote towns developed to facilitate the extraction of natural resources (Marais et al., 2018). These resource ‘boomtowns’ followed a pattern of rapid development of the built environment, social and economic infrastructure, and a subsequent decline in economic activity and population (Mitchell & O’Neill, 2016a; Randall & Ironside, 1996). This boom-and-bust pattern was often connected to the influx of workers searching for employment opportunities, which significantly increased the demand for basic infrastructure and services. This, coupled with the withdrawal of senior government support, led to a deficit in the supply of housing, health care, education, and transportation (Keough, 2015; Lawrie et al., 2011). These experiences are grounded within a 10 general view that communities dependent on a single industry are intrinsically unstable (Davies & Tonts, 2010; Randall & Ironside, 1996; Hayter & Barnes, 2001;). The experiences from different geographical settings show that resource commodity characteristics are influenced by diverse physical attributes, macro-economic conditions, labour requirements, levels of investment, methods of extraction, and technologies (Stedman et al., 2004; Wilson, 2004; Krannich & Zollinger, 1997; Nord & Luloff, 1993). In Canada, resource extraction is connected to isolated geographic regions (Clemenson, 1992; Picot & Heath, 1992). Resource industries are spatially ephemeral and often a feature of these regions (Ehrensaft & Beemen, 1992; Maude & Hugo, 1992). Robinson (1962) assessed how isolation affected the economic, social, and planning activities within resource towns and attributed the boom-bust pattern to isolation. He also emphasized how dependence upon a single resource industry contributed to the rapid post-war surge in company towns. Numerous studies underscore the degree of socio-economic marginalization associated with resource dependence, limited economic opportunities, and less access to employment opportunities and services (Tonts et al., 2012; Wilson, 2004; Krannich & Zollinger, 1997; Randall & Ironside, 1996; Freudenburg, 1992). Lucas (1971) asserts that geographic isolation inhibits economic revitalization and diversification. 2.1.3 Neoliberalism and Resource Towns Neoliberalism is a political and economic ideology that emphasizes de-regulation, the withdrawal of state interventions, and a limited role for the state in the market (Jessop, 2002; Peck and Tickell, 2002). First, Neoliberalism focuses on maximizing societal benefits through its core tenet of free markets (Peet, 2007; Harvey, 2005a); market de-regulation (Peck, 1998); and increased competition (Dumenil & Levy, 2004). Second, it emphasizes individualism, 11 consumerism, and entrepreneurialism to foster growth and development (McCarthy, 2006; Harvey, 2005a). Finally, the role of the state is limited to creating an enabling environment for markets, trade, and capital (Brodie, 2007; French & Leyshon, 2010; Peet, 2007); protecting the operations of the market (Harvey, 2006); and encouraging and monitoring performance (Chouinard & Crooks, 2008). Further, the state’s role has “shifted from decommodification to marketization and, therefore, recommodification” (McBride & McNutt, 2007: 183). Perceived inefficiencies serve as “justifications for shifting responsibilities for regulating economic and social functions from public to private actors and arenas” (Martin, 2012: 22). The evolution of multilevel governance (MLG) is a crucial feature of Neoliberalism. MLG involves vertical and horizontal diffusion of authority, decision-making, and power away from traditional governments (i.e., federal, provincial, and local government) to be more inclusive of non-traditional actors (i.e., NGOs, local voluntary organizations, Indigenous governments, etc.) (Summerville & Wilson, 2016; Jessop, 2000; Brenner, 1999; Swyngedouw & Cox, 1997). Since the 1980s, “senior governments at the federal and provincial levels have downloaded (devolved) and offloaded (ceased to offer) responsibilities for many programs to local governments, or the private sector and not-for-profit providers” (Summerville & Wilson, 2016: 110). The withdrawal of state fiscal and policy support has limited the capacity of local governments to provide services and undertake effective community development planning (Halseth & Ryser, 2018). As a result, different local actors (i.e., public, private, not-for-profit organizations, etc.) have emerged to fill the gap in providing local services and programs to retain and attract people and businesses (Markey et al., 2012). The communities have also adopted entrepreneurial and innovative strategies to cope with the state withdrawals (Ryser et al., 2018). 12 MLG presents both opportunities and challenges to rural and remote towns (Summerville & Wilson, 2016). In terms of opportunities and benefits, MLG allows senior governments to delegate some responsibilities to lower levels of government to enable them to focus on specific issues and projects that lower levels may not have the expertise and resources to address or undertake (Saito-Jensen, 2015). This enhances the government’s capacity to mobilize and draw upon the resources of actors at other levels, including non-state governance bodies, to achieve a particular objective or address a particular need. MLG also promotes increased participation and collaboration of diverse actors with different skills and resources (Newig & Fritsch, 2009; Bache & Flinders, 2004); improved accountability and network creation (Armitage, 2007); better leadership, self-organization, and trust-building (Folke et al., 2005); mutual learning (Ernstson et al., 2010); more holistic problem understanding (Stern, 2005); knowledge pluralism and greater acceptance of governance outcomes (Newig & Fritsch, 2009), which are all positively connected to improved decision making and governance (Armitage, 2007; Newig & Fritsch, 2009). Despite the benefits of MLG, different levels of actors, coordination challenges, and ‘too many decision levels’ can impede effective governance (Newig & Fritsch, 2009). Neoliberalism underlies the industrial restructuring following the 1980s and 1990s recession, marking the beginning of companies’ retrenchment within local communities (Martin, 2012; Markey, 2010; Halseth & Sullivan, 2002; Barnes et al., 2001). In the BC’s forestry sector, a key neoliberal reform was the removal of the appurtenance clause. The appurtenancy policy ensured that logs were milled in the locality or region from which they were taken (Lacharite & Summerville, 2017). This policy signified a ‘social’ and ‘spatial’ contract between the communities, industry, and the state (Summerville & Wilson, 2016). It was a vital feature of the government’s province-building initiative to ensure efficiency in timber harvesting. MacPhail & 13 Bowles (2016) noted that the appurtenancy policy served as a buffer against boom-and-bust cycles typical of resource towns. However, the integration of neoliberal policy and its associated free trade linkages led to the removal of the clause in order to liberalize the forestry industry (Bowles, 2016). This opened the ‘floodgate’ for raw log exports, causing the closure of many local mills (Lacharite & Summerville, 2017) and economic instability in the hinterlands (Bowles, 2013). In the mining sector, Neoliberalism has led to the adoption of the fly-in, fly-out, or drivein, drive-out (FIFO/DIDO) and long-distance commuting system (Ryser et al., 2017; Carrington & Pereira, 2011; Storey, 2001; Houghton, 1993). The FIFO commuting system does not require workers to permanently reside near mine sites (Tonts et al., 2012). This system undermines the future of mine towns as considerable wealth is transferred to large metropolitan centers where the mine workers permanently reside (Taylor & Simmonds, 2009). The negative impacts of the longdistance commuting system include stresses on housing, local employment, local services, and infrastructure (Petkova et al., 2009; Rolfe et al., 2007). A decrease in the permanent resident workforce undermines the stability of the community (Storey, 2001). Women are particularly vulnerable to the problems caused by shift work, workcamps, and the FIFO commuting system (Koutouki et al., 2018; Nightingale et al., 2017; Bernauer, 2011; Australian Institute of Health and Welfare, 2010). 2.1.4 Globalization and Resource Towns Global change also shapes the economic and political processes underpinning rural and small-town transition (Amin & Thrift, 1997; Conti, 1997; Dicken et al., 1997; Winson & Leach, 2002). Globalization has impacted state powers, capital mobility, and core-periphery relations (Hayter et al., 2003). This implies that globalization and its impacts are mediated at the local level, contributing to the unevenness and new development pressures and opportunities in resource 14 towns (Halseth &Ryser, 2018). However, the impact of globalization on resource towns depends on the unique characteristics and peculiarities of place-based communities (Woods, 2007). The extent of the impacts is determined not only by the degree to which any aspect is evident, but also by the degree to which globalization processes have penetrated local place-making processes (Woods, 2007). Globalization underpins the shift in the balance of power between global and local institutions (Martins, 2012). Economic globalization places individuals and local communities at the mercy of global capital, dismantling borders and making state institutions worthless. As Taylor and Conti (1997: 4) noted, “the notion of power relations expressed in this [viewpoint] is very much a caricature of the powerful, empowered global versus the powerless victim local.” This aligns with the notion that globalization has rendered the state ineffective in governing and regulating economies (Martin, 2012). With the ‘hollowing-out’ of the state, governance responsibilities have shifted to global and local/regional institutions (Nel & Stevenson, 2014, 2019; Swyngedouw, 2000; Tickell & Peck, 1995). On the contrary, this shift is viewed as a restructuring of governance structures to capitalize on emerging economic opportunities rather than a decline of state powers (Brenner, 1998; Hudson, 2004; MacLeod, 2001b; Warf, 2008). The state continues to be relevant in regulating regional economies and exercising authority over institutional and regulatory structures (Martin, 2006). Further, globalization has de-territorialized economics, capital, and information (Martin, 2012). In the era of globalization, transnational corporations (TNCs) have become increasingly mobile and placeless to enable them to explore new opportunities across the globe (Piven, 1995). Indeed, capital (especially financial capital) has been described as ‘footloose’ and hyper-mobile, transcending borders (Cox, 2005; Mitchell, 1997). As Dicken et al. (1997, p. 160) point out, “in 15 this scenario, capital would be infinitely mobile and completely footloose, shaking off all forms of local and national allegiance or dependence; the principal agents of change would be the allpowerful transnational corporations, the epitome of ‘placeless’ capital.” In response, countries, regions, and communities have formulated policies favourable to industry and capital (Warf, 2008; Glasmeier, 2000). Perhaps, the most notable trait of globalization is the emergence of a global marketplace and global trade liberalization (Halseth, 2017). Globalization has altered spatial and sectoral production patterns (Williams & Lew, 2015), spatial divisions of labour (Massey, 1988), and employment relations (Vinodrai, 2015) on the global scale (Perlik, 2014). Global trade liberalization has allowed an unbridled flow of resource commodities from low-cost producing regions to enter the global marketplace. As such, the traditional industries in developed economies faced intense competition in the globalized marketplace (Woods, 2010). This has further exerted downward pressure on commodity prices resulting in an imbalance of output, trade, and profit, causing industrial downsizing, production curtailments, and closures (Argent, 2017b; Halseth et al., 2017b; Halonen et al., 2017; Connelly & Nel, 2017b). This has resulted in local economic collapse, community decline, and related development challenges (Halseth et al., 2010). 2.1.6 Resource Industries and Corporate Social Responsibility Corporate social responsibility (CSR) which became popular in the mid-1990s is a novel model of company-community relationships under the ethos of neoliberalism. CSR is often defined as integrating social and environmental concerns into a company's business operations and interactions with stakeholders (Dahlsrud, 2008). It is argued that CSR can contribute to economic, social, and ecological sustainability (Jenkins & Yakovleva, 2006) as companies assume more responsibilities and become answerable to both shareholders and local stakeholders (Hamann, 16 2003). CSR policies and programs differ from company to company or from one geographical area to another (Farcane et al., 2019). CSR studies have generated debate about the extent and nature of a company’s obligations (Dashwood, 2007). A vital aspect of the discussion focuses on whether or not companies should have responsibilities beyond their legal requirements and accountability to shareholders. Traditionally, a company has a fiduciary responsibility only to its shareholders (Friedman, 1970). This traditional notion has been contested by stakeholder theory, which argues that companies should be responsible for other stakeholders, including employees, customers, local communities, and civil society organizations (Prakash, 2000). While CSR practice is voluntary (Dentchev et al., 2015; Eijsbouts, 2011; Carroll & Shabana, 2010; Lee, 2008; Prakash, 2000), many organizations have integrated it into their business plans to promote partnership between companies and stakeholders (Rajak, 2011). Increased company involvement in CSR can be attributed to the desire to maintain a company’s reputation, commitment to moral obligation and sustainability, and social license to operate (SLO) (Porter & Kramer, 2006). Other reasons include a range of political, economic, and social risk factors such as the role of Non-Governmental Organizations (NGOs), the impact of government regulations and regulatory uncertainty, denial of operating permits, consumer boycotts (Haufler, 2001; Prakash, 2000), and opposition from the host communities (Gunningham et al., 2003). While "expanding or creating economic opportunities is considered the government’s responsibility towards their citizens, the changing global market environment and the various risks and opportunities provide reasons for a business to engage" (Wise & Shtylla, 2007: 4). To meet society's expectations and achieve SLO, companies must adapt to stakeholders' needs, concerns, 17 and expectations (Harvard & Bice, 2014). More importantly, there is also the need to establish and maintain good community relations to obtain and maintain the SLO. The extractive industries “significantly impact the environment and interact closely with several distinct stakeholders, including governments (via legal compliance), communities (through dependence on workforce and supply of raw materials) or environmental non-governmental organizations (ENGOs) (via risk management and conflict prevention)” (Arminen et al., 2015: 500). Managing these interactions is vital for gaining and maintaining SLO (Lansbury & Jeanneret, 2015). Studies on the mining industry indicate that building trust with local communities is central to attaining community acceptance and operating approval (Moffat & Zhang, 2014). Other studies have noted that increased public participation during the planning and early stages of a mine development positively impact the community's perception of environmental and social issues (Moffat & Zhang, 2014; Booth & Halseth, 2011). In the forestry sector, SLO evolved from the intersection of company behaviour and the expectations of communities on forest management practices (Edwards & Lacey, 2014). According to Dare et al. (2014), forest companies in Canada and Australia lack effective management systems, capacity, and corporate practices to support strong community engagement in building trust and responding to changing social expectations, thereby making it difficult to achieve a SLO. Vermeulen et al. (2008) noted positive local impacts of forest companycommunity partnerships, including sharing of risks, better returns to land, opportunities for income diversification, access to paid employment, the development of new skills, upgrading of local infrastructures, and environmental improvements. In effect, “CSR has become an integral component of business conduct and a means of demonstrating private sector contributions to sustainable development in natural resource sectors” (Arminen et al., 2016: 500). 18 The changing roles and responsibilities of government and resource industries in resource towns can be attributed to Neoliberalism (Heisler & Markey, 2013). Since the 1980s, senior governments have been promoting resource development to reduce their direct financial support for local communities (Markey et al., 2008a; Polèse, 1999). Through CSR, these changes are placing more responsibility on resource companies to distribute wealth to local communities through legacy investments and community development programs (Ryser et al., 2014; Heisler & Markey, 2013; Albareda et al., 2008). CSR promotes strategic investment in community development as a tool for risk mitigation (Blowfield, 2005). Private enterprise has gone beyond its traditional role as an employer and taxpayer to assume the role of corporate citizen – contributing to social and economic development in the host communities. The reliance on CSR programs by the state to meet the social and economic needs of the local communities “brings into question government and corporate roles and responsibilities for distributing resource wealth back to rural communities” (Heisler & Markey, 2013: 389). Theoretically, CSR can empower local people through capacity building programs to negotiate for more extensive control and benefit from resource projects within their territories (Cheshire, 2010; Kemp, 2009; Esteves, 2008a, 2008b; Kemp & Brereton, 2006; Shanks, 2006; Sosa & Keenan, 2001). This can also help communities capture ‘backward’ linkages by providing inputs for resource production (i.e., food, supplies, equipment) and ‘forward’ linkages by pursuing value-added production (Freudenburg & Frickel, 1994). In practice, senior governments' advocacy for CSR advances the neoliberal agenda by shifting the state’s responsibilities to the private sector (Fidler & Hitch, 2007; Sadler & Lloyd, 2009; Hamann, 2003). This also gives corporations greater political leverage over the state (Heisler & Markey, 2013). But, the continuous reliance on corporate donations to support infrastructure and service provision is unsustainable. Industries are 19 gradually withdrawing from community development because they do not want to assume the government’s responsibility while still paying corporate and property taxes. Moreover, industry funding is unreliable because resource extraction is prone to global market fluctuations, corporate decisions, and changing social and natural environments. Kemp et al. (2006) criticized the modeling of community–corporate relations as a mere corporate public relations gimmick rather than a genuine commitment to fostering community development. Banks et al. (2013) examined two concepts underpinning local community development in remote resource towns: immanent and intentional development. Immanent development is an “indirect economic growth associated with increased local employment, procurement, royalties, and taxes that accrue to the local area” (Addison & Alan, 2018: 596). They noted that immanent growth dominates local and community development. ‘Intentional’ development, also known as corporate community development (CCD) – “comprises the programs and initiatives undertaken by the mining companies in pursuit of their CSR objectives” (Addison & Alan, 2018: 596). These programs are often disconnected from local needs and hence less successful in contributing to a sustainable local economy. In northern BC, Heisler & Markey (2013) identified three critical challenges associated with CSR programs. First, resource companies operate based on market rationality, and the distribution of CSR benefits is tied to the possibility of obtaining a social license to operate. This creates a competitive environment where communities with greater political leverage secure more benefits. In northwest BC, the political climate provides First Nations with more advantages to attract more CSR benefits. Second, communities without political leverage find it challenging to access CSR benefits. This has created an environment for local governments to compete for secondary benefits accruing from resource development and continues to advocate for access to 20 resource revenues. Lastly, the responsibility of the state to ensure the fair distribution of resource benefits to all communities within rural regions has been brought into question. In rural BC, “the government has a responsibility to protect the public interest in resource development and ensure fair distribution of benefits to the communities located adjacent to resources” (ibid: 398). 2.1.7 Economic Restructuring and Diversification Rural Canada has experienced profound economic, political, social, environmental, and demographic change within “a hyper-connected and increasingly commodified global economy” (Ryser & Halseth, 2010: 510). These stresses have been profoundly acute within resource towns due to physical isolation and resource dependence (Halseth & Ryser, 2018). Industrial restructuring has further exacerbated rural economies (Reed & Gill, 1997; Cater & Jones, 1989; Bradbury & St-Martin, 1983) due to limited opportunities for diversification (Suutarinen, 2013). This has impacted rural population, service delivery, social networks and bonding, volunteerism, and communal responsibility (Reed, 2003a; Furuseth, 1998). Studies have shown that rural population growth positively correlates with rural economic prosperity (Halseth, 1999b; Hayter, 1979). Thus, diversifying away from a single industry-based economy has become imperative (Clemenson, 1992). In addition, resource town cyclicity has prompted economic renewal in rural and remote communities (Burnett & Brunelle, 2019; Asscher et al., 2016). Long-term economic transformation depends on the ability of communities to chart a new economic path (Martin & Sunley, 2015). Despite the abundance of ideas on alternative strategies for economic diversification, not all resource towns have achieved economic diversity (Ryser & Halseth, 2010; Binns & Nel, 2003; O’Faircheallaigh, 1992; Nygren & Karlsson, 1992). The literature demonstrates that successful and sustainable economic revitalization depends on a high degree of 21 social capital, local capacity, natural resources, institutional thickness, and accessibility to senior government support (Halseth et al., 2017; Markey et al., 2012; Markey et al., 2008b; Halseth, 2005; Cabus, 2001; Amin, 1999; Bebbington & Perreault, 1999; Stohr, 1990). Hayter and Nieweler (2018) also emphasized the importance of long-term planning in achieving a sustainable and diversified economy. Similarly, Healey (1998) noted that improving quality of life through promoting, managing, and regulating placemaking is embedded in the broader context of spatial planning, which can best be achieved through collaborative planning and consensus-building (Booher & Innes, 2002). Economic restructuring involves “a spatial variation in economic development” (Pinch, 2001: 4122) and structural change within a specific geographical location (Friedmann, 1991). The success of any restructuring process is determined by local participation, local-specific features, sector-specific features, and policy-related factors (Halseth et al., 2017; Tykkyläinen & Neil, 1995). Economic restructuring recognizes the “peculiarities of the specific global and local context” (Barnes & Hayter, 1994: 306) and the importance of local actors in charting new development paths (Halseth et al., 2017). It focuses on new path creation, innovation, resilience, transformation, adaptability, and sustainability (Carson et al., 2017). As Amin (2005: 630) noted, “regeneration cannot be a localist affair or a matter of local responsibility alone, but has to be part of a wider political economy of decentred power and redistributive justice.” This means that government, communities, and companies must form a new partnership based on “support and reciprocity rather than dependence and reliance” (Martin, 2012: 247). Within the resource town literature, “post-productivist economic development initiatives are seen as a viable and desirable alternative” (Martin, 2012: 230) to staples production. Postproductivism alters the economic value of place-based resources (i.e., environmental, social, and 22 cultural resources), changes relations between people and place (Sharpley & Telfer, 2015), and favors a more diversified economic base (Markey et al., 2008a; Reed & Gill, 1997). As a result, many economic development plans have focused on tourism, amenities, and value-added businesses (Martin, 2012). In particular, amenity-based development has emerged as a potential economic opportunity in northern communities (Campbell & Coenen, 2017; Michell & O’Neill, 2017, 2016b; Harfst, 2015; Nepal & Jamal, 2011; Milne & Ateljevic, 2001). The aesthetic natural environment, recreational opportunities, cultural richness, and social amenities attract a wide range of migrants, retirees, and tourists (Chang, 2017). The growth of an amenity-based economy can lead to growth in other sectors such as retail, real estate, health care, creative industries, and other professional services in order to sustain local economic viability (Power, 1996). Therefore, a desirable natural and social environment is crucial for economic prosperity. However, amenity-and tourism-driven development would require institutional support (Kristjánsdóttir et al., 2017; Carson et al., 2017) and effective collaboration among state and local actors to maximize the socio-economic benefits. Moisan De Serres et al. (2017) reflect on the development of recreational tourism based on non-timber forest products (NTFP) to construct a place-based social economy in the rural Côte-Nord region of northern Québec. In the north of Sweden, place-marketing strategies have stimulated economic development (Eimermann et al., 2017). While tourism development can help diversify the local economic structure (Milne & Ateljevic, 2001), the growth of the tourism industry alone is not a panacea for an economic crisis (Power, 1996). Creative and innovative economic activities also propel economic diversification. The new economy emphasizes the importance of diverse and knowledge-based sectors that attract capital and labour (Vinodari, 2015; Holmes, 2006). As a result, there is the need to incorporate creative 23 capital into community ‘path creation’, resilience, and adaptive ability, while recognizing peripheral particularities, knowledge workers, and social capital to revitalize the rural economies (Petrov & Cavin, 2017, 2013). Recent studies of rural innovation point to the importance of embedding creative capital into social networks and regional transformation (Zamyatina & Pelyasov, 2016; Freire-Gibb & Nielsen, 2014; Petrov, 2011). Creative capital has been identified as a significant driver of regional development and place competitiveness (Florida, 2014). Carter & Vodden (2017) demonstrate how struggling resource towns can transform into ‘innovative systems’ to foster interactions, knowledge exchange, and learning between key economic, political, and institutional actors. Creative capital also emphasizes individual economic agency to create more flexible businesses and market networks independent of dominant industries to avoid exogenous shocks and economic cycles (Kulusjärvi, 2016). Despite the economic benefits of creative capital, it faces many challenges in resourcedependent communities. These include sparse population, dispersed private sector, lack of critical mass of actors, lack of resources, and relatively limited networks for knowledge exchange and collaboration (Doloreux & Dionne, 2008; Wolfe & Gertler, 2004). These challenges are often exacerbated by the continued dependence on external investment, weak institutional infrastructures, and a lack of local entrepreneurial culture (Müller & Brouder, 2014). 2.2 Conceptual/Theoretical Framework To understand the economic trajectory of BC’s resource towns, it is important to examine the political economy of resource development in Canada (Martin, 2012; Hayter & Barnes, 2001; Markey et al., 2000). The following section explores the staples theory of economic development (Weaver & Gunton, 1986) and the resulting core-periphery relations and structural rigidities (Reed, 2003b; Drache, 1991; Bradbury, 1979b). The section also examines the concept of social capital 24 and community capacity, as well as the shift from staples-based development to place-based development. 2.2.1 Staples Theory Staples’s theory offers a conceptual understanding of the political economy of resourcebased regions. As developed by Harold Innis in 1933, it describes the Canadian economy as being organized around the production and export of staple commodities (e.g., fish, fur, lumber, agricultural products, and minerals) for the benefit of advanced industrial economies (Tonts et al., 2013; Hayter, 2000a; Watkins, 1963). Innis (1956) further argued that Canada's political institutions, culture, and regions were created to facilitate the exploitation and export of these staple commodities. Staples theory, therefore, describes the social, political, and economic implications of resource development on resource towns (Markey et al., 2000). Horsley (2013) suggests that Staples theory brings a conceptual rigour into the analysis of the structural forces shaping resource towns, the pattern of uneven development, as well as the limited role of the state within the global economy (Sheppard, 2013; Reed, 2003b; Weaver & Gunton, 1986). While modern neoclassical theories predicted that resource extraction would lead to economic maturation (i.e., an industrialized economy) (Marchak, 1983), Innis was pessimistic as diversification and maturity were neither automatic nor guaranteed (Drache, 1991). Innis asserted that the institutional framework associated with staples production undermines long-term economic development (Drache, 1991). Innis, therefore, cautions that “resources are soft sands on which to build an economy unless developed with extraordinary care” (Clement & Williams, 1997: 51). Successive governments have designed policies with the assumption that “if a mill, mine, or another large project [were] established, it [would] eventually spin off all kinds of economic benefits, the 25 population [would] grow, new industries [would] be attracted to the region, and the area [would] become a stable community” (Marchak, 1990: 95). For many years, federal and provincial governments have based economic development strategies on resource extraction because of the abundance of natural resources (Marchak, 1983). As a result, the history of Canada’s position in the global economy has been determined by the export of raw commodities to foreign markets (Innis, 1933). The Staples theory asserts that resource towns face three major problems: (i) economic instability and crisis, (ii) truncated economic development, and (iii) dependency and vulnerability (Gale & Gale, 2006; Reed, 2003b). Resource-based economies are inherently unstable and susceptible to business and resource cycles (Martin, 2012). In remote and small resource towns, economic development is primarily driven by foreign firms and markets (Hayter & Barnes, 2001). As production costs become relatively high in advanced economies, capital has relocated to low-cost resource regions (Robinson, 1984). This has undermined the sustainability of Canadian operations and the stability of resource towns (Barnes, 2005). Contemporary challenges facing resource towns stem from historical processes, changing geography, technology, and institutions. While advancements in production and transportation technologies have propelled community instability, oligopolistic institutional structures of many resource-based firms create financial and production ‘rigidities’ that cause disequilibrium (Barnes, 1996a). The vulnerability problem is linked to Canada’s historical position in the global economy as a supplier of raw resources (Haley, 2011; Barnes et al., 2001; Watkins, 1982). Resource producing regions are “inherently vulnerable to volatile global commodity markets and associated fluctuations in production and employment” (Tonts et al., 2012: 289). This volatility stems from the interplay of demand and supply (Bradbury, 1980). Reliance on international markets to 26 determine commodity prices means that staples economies are ‘price takers,’ not ‘price setters’3 (Clapp, 1998). Community instability is a product of the process of globalization, instigated by competition between Canadian resource industries and international staples producers (Hutton, 1997a). Changes in technology can also cause community instability, institutional changes within corporations, bankruptcy, or labour disputes (Hak, 2007; Barnes et al., 2001). These boom-andbust cycles have profound implications for social and economic well-being (Nelsen et al., 2010; Halseth & Sullivan, 2002; Robinson, 1984). Regarding company-community relations, Schneider (1969: 402) noted that “the community’s economic life, its periods of prosperity and depression, reflects the rhythm of its industries.” Prior to the 1980s, it was predicted that resource towns had attained a mature stage of economic development. Lucas (1971) argued that communities had undergone different stages of transition and had reached maturity4. Mature resource towns were described by stable economies, labour markets, community structures, and demographic profiles. However, community stability was constantly undermined by local and external forces (Barnes et al. 1999). As a result, Bradbury and St. Martin (1983) suggested a period of winding down and closures, while Halseth (1999b) envisioned possible ‘alternative futures’ for resource towns. 3 It means that export dependent regions and communities have no control over commodity prices. Lucas (1971) identified four stages: construction, recruitment, transition, and maturity. Others like Riffel (1975) identified seven stages: pre-discovery, prospecting, construction, industrial operation and community improvement, industrial and community operation, community diversification, and community maturity. 4 27 Table 2.1: Life-cycle models of growth in resource towns Town Management Company Community Stage Demographic/Migration Characteristics Construction high population turnover, mostly young men Recruitment large % young families strong ethnic mix Transition stable workforce Maturity lack of job mobility youth outmigration Company Winding Down job losses Caretaker Closure outmigration Alternative Futures: economic transition, sustainable community development Source Lucas (1971) Bradbury & St. Martin (1988) Halseth & Sullivan (2002) Halseth (1999b) Source: Adapted from Halseth & Sullivan (2002) Further, Staples’s theory suggests that resource towns have limited options for diversification, contributing to continued resource dependence and economic specialization (Bradbury, 1980). The entrenchment of corporate interests also undermines the long-term stability of resource development or alternative forms of production (Rutherdale, 1994). All levels of governments depend on staples extraction for resource rents, taxes, and employment (Halseth, 2005). This dependence, coupled with political and corporate interests, undermines the political and economic incentives to engage in alternative development (Clapp, 1998; Wilson, 1998). Many resource towns are ‘locked-into’ staples path dependence (Hayter, 2000a). In particular, northern BC remains heavily dependent on staple commodities while many regions have diversified away from resource extraction (Markey et al., 2012; Baxter, 2002). Truncated economic development is also related to Canada's predominance of foreign corporate ownership (Britton & Gilmour, 1978). In BC, there was a deliberate provincial policy 28 between the 1950s and 1960s to facilitate economic expansion through resource development (Markey et al., 2012). This resulted in an influx of foreign companies into the province (Fogarty & Sagerer, 2016; Marchak, 2011; Williston & Keller, 1997; Hayter, 1982) and a subsequent loss of control over strategic investments, technology decisions, service provision, and supply chain activities (Haley, 2011; Hayter, 1982). The companies repatriate the profits generated from industrial activity, contributing to uneven development in resource towns (Marchak, 2011; Massey, 1994). Resource extraction and manufacturing undermine forward and backward linkages within resource towns as these activities tend to be concentrated within urban centers (Hayter, 2000a). This leakage limits the financial resources available for economic diversification (Drache, 1991). Staples-path dependence is also rooted in the principle of comparative advantage (Marchak, 2011). Innis posited that over time staple-dependent economies tend to specialize rather than diversify. Martin (2012: 39) noted that “established infrastructures, settlement geographies, and trade relationships all work against economic diversification, leaving regions with truncated economic development structures.” 2.2.2 Core-Periphery Model Staples development has played a critical role in shaping the spatial organization and power relations between rural hinterlands (resource peripheries) and the metropolis (urban cores) (Watkins, 2007). In BC, resource development occurs in northern, rural, and remote towns designed as extraction centers and close to in-situ resources (Lucas, 1971; Robinson, 1962). Decisions relating to finance and management are coordinated from the metropolitan centers (the core). The urban centers are also responsible for organizing production, exporting staple commodities to international markets, and overseeing corporate decision-making (Hayter et al., 29 2003). Corporate decisions tend to influence municipal politics, housing arrangements, economic vision, and community identity (Rollwagen, 2007, 2006; White, 2004;). Core-periphery relations have important implications for resource towns. First, the urban core exercises authority over decision-making and corporate finance (Marchak, 2011; Barnes et al., 2001; Massey, 1994; Robinson, 1984). Head offices are located in larger urban centers or overseas. In BC, the political institutions responsible for regional development and resource development policy are located in the Vancouver – Victoria metropolitan region (Marchak, 2011; Halseth, 2005). Second, resource towns are economically, geographically, and politically marginalized due to the core-periphery relations (Hayter & Barnes, 2001; Robbinson, 1998). Third, the export of raw commodities has led to dependence upon the core, undermining economic development within the periphery (Barnes et al., 2001). Innis asserts that staples development creates resource frontier regions with limited opportunities for diversification. Core-periphery relationships have contributed to uneven development due to physical dispersal, skewed power relations, low levels of human capital, low levels of financial capital, and poor infrastructure in remote resource towns (Bradbury, 1979b). 2.2.3 Social Capital/Cohesion and Community Capacity Social capital is described as the combination of social cohesion and shared values within the community, the willingness of community members to collaborate and mobilize resources, and the strength of relationships and partnerships among local actors and with external actors (Ratner & Moser, 2009; Ledogar & Flemming, 2008; Beckley et al. 2002; Reed, 2000). In other words, social capital is “the network of social relations that builds trust within the community and fosters a community’s social and economic productivity” (Parkins et al., 2004: 3). The literature identifies two main types of social capital: bonding and bridging (Sullivan & Halseth, 2014; Ryser & 30 Halseth, 2014; Markey et al., 2008b). Bonding social capital refers to locally formed relationships that strengthen the ability to work collaboratively to address local needs and problems (Michelini, 2013; Larsen et al., 2004; Potapchuk et al., 1997). Bridging social capital refers to relations with external actors to foster a wider pool of ideas, experiences, advice, and support (Markey et al., 2012; Wallis, 1998). In small and rural resource towns, social capital involves volunteerism, social organizations and groups, constructive relationships with external actors, and business partnerships (Alessa et al. 2008; Schooling & Cumming 2005; Beckley et al. 2002). The more social cohesion interactions occur, and the more social capital a community has, the more opportunities exist for communities to build resiliency (Markey et al., 2005; Sullivan & Halseth, 2004; Wall & Fuller, 2004; Walter & Wilkerson, 1998). Building a strong social capital enables communities to negotiate change arising from complex social and economic situations (Parkins et al., 2004). It provides mechanisms to identify and mobilize resources, information, and expertise for effective community capacity building (Sullivan & Halseth, 2014). Community capacity is the ability of individuals and local organizations to mobilize effective responses to address local problems (Markey et al., 2012; Reimer & Markey, 2008; Aarsaether & Baerenholdt, 2001). It stems from social relationships between community members that facilitate routine interaction. It is also built through responses to economic, social, political, and environmental change in the form of ‘collective behaviour’ (social cohesion), which occurs through ‘formal or informal networks of trust’ (social capital) (Reimer, 2002b). As Ryser and Halseth (2010) noted, communities must “identify, enhance, and mobilize human potential, economic opportunities, social relationships, and ecological resources” (p. 516) in order to strengthen their own capacity. 31 2.2.4 Place-Based Development Place-based development reflects the “ascendancy of place” as an organizing construct in the development process (Markey et al., 2008: 40). It embeds the peculiarities of place, such as assets, populations, histories, and circumstances within the general processes of rural development. A place-based economy emphasizes a shift from productivism to post-productivism (Gosnell & Abrams, 2011; Troughton, 2005; Wilson, 2004; Reed & Gill, 1997); comparative advantage to competitive advantage; and Fordist to Post-Fordist economic structure (Markey et al., 2012; Markey et al. 2008; Kitson et al., 2004). It also emphasizes the adoption of a territorial rather than sector-based orientation to rural policy and planning (Markey et al., 2015; Pezzini, 2001; Barnes et al., 2000). This development approach is rooted in a competitive advantage over territorially unique natural, social, and cultural characteristics (Markey et al., 2008a, 2008b). It considers quantitative (i.e., infrastructure, natural and cultural amenities, location, economic structure, production, etc.) and qualitative (i.e., social capital, innovation, institutions) territorial factors in economic development planning (Markey et al., 2006; MacLeod, 2001a). It also recognizes territorial characteristics such as high-quality public amenities and infrastructure, a high degree of human, social, cultural, creative, and productive capital, a high level of social embeddedness, local competitive advantages (Kitson et al., 2004), and distinctive competencies (Huggins & Izushi, 2011; Porter, 1990), which attracts people and investments, increase productivity, and improve quality of life (Kitson et al., 2004). Another concept closely linked with the place-based economy is community economic development (CED) (Markey et al., 2008). CED gained popularity in regions where the economic structure is externally driven (Markey et al., 2005) and as a rural development model that stems from the state’s withdrawal (Bruce, 2003) and the desire for local empowerment and control over 32 development (Markey et al., 2007). CED encompasses diverse approaches to bottom-up development. The CED literature identifies four themes that address the role of place in community development (Markey et al., 2008). First, CED adopts an integrative approach to development by combining cultural, social, economic, community, and environmental factors (Shaffer et al., 2006). Second, place-based development requires the active participation and engagement of local actors. As local knowledge holders, local actors and institutions play an essential role in identifying assets and mobilizing resources for development (Stohr & Taylor, 1981a). Active local participation has become extremely important due to the withdrawal of senior government and industry support, making a case for bottom-up decision-making and representation (Polese, 1999). Third, focusing on local participation to drive development involves the interaction of economic and social actors, such as senior governments, industry, civil society organizations (CSOs), as well as nongovernmental organizations (NGOs) (Halseth & Booth, 2003; Bryant, 1995). Finally, a placebased economy requires investment into rural infrastructure to achieve and maintain place competitiveness and realize local and regional economic opportunities (Markey et al., 2008). An economy driven by competitive advantage requires renewal and adaptative capacity to thrive. Thus, there is a need for continuous investment in enterprise and development initiatives to achieve long-term local and regional adaptive capacity. Despite the economic benefits of a placed-based economy, many rural places face capacity constraints (Markey et al., 2008). Senior governments' withdrawal of policy and fiscal resources has contributed to rural decline. In northern BC, the problem of rural decline is set within a complex dynamic of factors, including global market fluctuations, technological advancement, resource depletion, and the emergence of lower-cost producing regions. However, northern rural communities are home to many natural and environmental assets, such as natural amenities, and 33 low-cost land that drives the global economy. Therefore, rural development policy must capitalize on these assets to stimulate growth and economic development. The New Localist literature reasserts the role of place and local struggles in shaping economic restructuring (Nel et al., 2019; Barnes et al., 2007; Thrift, 1994; Winson & Leach, 2002). New Localism aims at devolving power, functions, and resources from the state to local levels within an agreed framework based on national standards and policy priorities (Evans et al., 2013; Allen & Cochrane, 2010; Boyle, 2009; Morphet, 2004). New Localism’ is rooted in the notions of local management, representation, and empowerment. Further, it recognizes the importance of local resources, labour, political cultures, and decision-making in defining the role of the local community in a competitive global economy while drawing on local resilience and social capital to foster development (Besser, 2013). Numerous studies have described the concept of New Localism as an innovative model of devolution (Haley & Nelson, 2007); civic participation (Bullock & Hanna, 2008; Reed & Mcllveen, 2006); civic boosterism, and public-private partnerships (Harvey, 1989); broad public engagement, accountability, and transparency (Kersting et al., 2009); and emerging neoliberal paradigm in environmental governance (Pinkerton et al., 2008; McCarthy, 2006). For Clarke (2013: 492), localism involves the “struggles to produce locally scaled action, including projects of local autonomy and self-sufficiency,” which is based on less welfare through collective consumption and more through economic development (Cochrane, 2007). Proponents argue that New Localism minimizes red tape, increases sensitivity to local problems, and improves administrative capabilities, flexibility, innovation, effectiveness, and creativity (De Vries, 2000; Osborne & Gaebler, 1993) while unleashing “the latent innovative capacities of local economies, to foster a local entrepreneurial culture, and to enhance the 34 flexibility of local governance systems…………and to promote economic rejuvenation from below” (Brenner & Theodore, 2002: 342). 2.3 Conclusion This chapter has explored the empirical and theoretical context of resource towns and industries. A wide range of literature highlights the structural forces shaping resource towns and community-company relationships. First, the post-war economic restructuring propelled the adoption of a Fordist-Keynesian policy based on public investment to attract foreign capital into resource development for provincial building. During this period, the resource companies were required to provide social and economic infrastructure alongside state boosterism to foster economic growth. Under neoliberalism, the state’s responsibility toward resources towns has ‘hollowed out’ while resource companies have adopted a ‘lean’ and ‘minimalist’ approach toward local economic development. An attempt to reframe company-community relations via CSR is often disconnected from local needs, and hence less successful in contributing to a sustainable local economy. Second, Staples theory understands the unique nature of resource development in the Canadian context and suggests that overreliance on staples development has profound implications for resource towns. These implications have been characterized by power imbalances between ‘core’ and ‘periphery,’ uneven economic development, and intrinsic vulnerability and dependence. While the theory is pessimistic about economic diversification occurring in resource towns, there appear to be examples of successful economic diversification in northern BC. Finally, I drew upon the place-based development, community economic development (CED), and New Localism literatures to emphasize emerging economic pathways in transitioning resource towns. These concepts emphasize the importance of place, local environment, social 35 amenities, local capacity, local participation, social capital and cohesion, and infrastructure in economic transition. This literature also emphasizes the shift from staples-based to place-based development, a comparative advantage to competitive advantage, and productivism to a postproductivist economic state. Despite the burgeoning literature on resource towns, studies on comparative analysis of resource towns’ transitions are limited. Given the phenomenon of de-industrialization, many resource towns have shifted from reliance on staples to place-based assets, new economic paths, and diversified economic structures. These themes have received little empirical examination in northern BC. The institutional structures underpinning staples extraction have changed within developed economies due to a shift from Fordist-Keynesianism to Post-Fordist Neoliberalism. This has had profound implications for the ‘social contract’ that links resource extraction to community stability and little is known about how this shift has impacted companies’ involvement in local economic development. 36 Chapter 3: Research Context 3.0 Introduction This study is a comparative analysis of northern BC case studies involving the forestry town of Valemount and the mining town of Tumbler Ridge. This chapter discusses the history, location, and socio-economic characteristics of the study areas. 3.1 Tumbler Ridge, British Columbia 3.1.1 Geographic Context Tumbler Ridge (see Figure 3.1) is located on the eastern foothills of the Rocky Mountains in northeast BC near the British Columbia – Alberta border and is part of the Peace River Regional District (Gill, 2002; Halseth & Sullivan, 2002). The region is endowed with natural resources such as coal, timber, and oil and gas. The Peace River serves as a source of power for the region and, at the same time, supports agricultural production. Despite the relative economic diversity across the region, Tumbler Ridge’s economic base remains dependent on mineral extraction. The town is located 120 km southwest of Dawson Creek, 92 km southeast of Chetwynd, and 1178 km northeast of Vancouver. The opportunity to develop a new market was the driving force behind the northeast coal development in the early 1980s (Gill, 2002; Halseth & Sullivan, 2002). As a planned community, Tumbler Ridge has experienced boom-bust cycles over the 40 years of its existence (Tumbler Ridge, 2012). 37 Figure 3.1: Map of the Peace River District Source: Matt McLean, GIS lab, UNBC, 2021. 3.1.2 Community Evolution The decision to build a new town was advanced in the late 1970s as part of the Northeast Coal Project (Markey et al., 2012; Tumbler Ridge, 2012; Jackson & Illsley, 2006). The project aimed to supply metallurgical coal to Japan's steel industry from two mines (Quintette and Bullmoose). The project cost CAN$3 billion and involved a 100 million tonne coal contract spanning 15 years between a consortium of Japanese steel mills and a mining consortium led by Dennison Mines and Teck Corporation. Due to the expected large size of the workforce (around 2,000) and the long distance to the nearest existing communities of Chetwynd and Dawson Creek, 38 the mining consortium and the provincial government decided to construct a new town rather than relying on a commuting workforce (Gill, 2002). The planning phase was coordinated and managed by the BC Ministry of Municipal Affairs in collaboration with planning and design consultants (Jackson & Illsley, 2006; Gill, 2002). The planners were tasked to “create a socially cohesive, financially viable, self-governing community, conducive to attracting and retaining a stable workforce” (BCMMA, 1981: 49). As a result, the planning and design of the community were anchored on five main social principles: commitment, challenge, self-reliance, choice, and participation (Jackson & Illsley, 2006; Gill, 2002). These principles were fundamental to northern towns as they recognized the frontier nature of the communities. The provincial government was responsible for planning and infrastructure development (Jackson & Illsley, 2006; Gill, 2002). Over one billion dollars of public funds were invested in infrastructure development to support the coal mine projects (Parker, 1997). The construction of the township and the operation of Quintette and Bullmoose mines began in the early 1980s (Markey et al., 2012; Tumbler Ridge, 2012). The town was incorporated as a District municipality in April 1981 and officially opened in 1986. Unlike previous company towns, the political administration of the town was independent of the management of the mining companies (Gill, 2002). The creation of an independent Council and the incorporation of social principles in the planning and design of the township accounts for the town's resiliency in the wake of the subsequent economic crisis. By the late 1980s and early-mid 1990s, the Quintette and Bullmoose coal mines were in full operation, which boosted the town’s economic fortunes, despite minor fluctuations in the mining industry (Tumbler Ridge, 2012). The District focused on creating a livable community that 39 supported industry, recreational activities, education, and community growth. After almost two decades of relative economic stability, the town faced an economic crisis when the Quintette mine closed in 2000 and the Bullmoose mine shut down in 2003 (Tumbler Ridge, 2012; Jackson & Illsley, 2006; Gill, 2002). The Quintette coal mine became economically unviable as coal prices plummeted. The Bullmoose closure was connected to the depletion of the coal resource. The mine closures severely affected the community and its residents. About 600 workers were laid-off, forcing a significant number to leave town to find work elsewhere. The town lost about 70% of its local employment and 65% of its municipal tax base. The lack of employment opportunities in other sectors reaffirms Innis’ depiction of a staples-based community. Following the mine closures and subsequent out-migration in 2001, a Community Revitalization Task Force was formed to develop a community transition plan to diversify the local economic base and stabilize the population and municipal tax base (Jackson & Illsley, 2006; Halseth, 2005). The transition strategy focused on short-term and long-term measures. The shortterm strategy involved sale of the stock of rental, vacant, and company-owned houses; worker transition supports such as unemployment insurance, severance payment, retraining, and relocation (Markey et al., 2012; Tumbler Ridge, 2012; Jackson & Illsley, 2006); stabilization of local services (especially education, health care, and social services) (Halseth & Sullivan, 2002); and retirement of debts through the use of a contingency fund (Jackson & Illsley, 2006). Long-term measures focused on economic diversification, including resource development (including forestry, mining, oil, and gas), wind energy production, recreation activities, tourism, and home-based businesses (Markey et al., 2012; Tumbler Ridge, 2012; Jackson & Illsley, 2006). The strategy also focused on developing a strategic marketing and economic diversification plan. These economic opportunities supported employment growth and in-migration. In 2010, Tumbler 40 Ridge’s population increased to approximately 2,700 permanent residents, plus significant numbers of temporary workers in various industries. With the booming economies of China and India, and soaring global demand for coking coal, Western Canadian Coal opened new open-pit mining operations (Dillon, Brule, and Wolverine mines) near Tumbler Ridge in 2004 (Halseth et al., 2017; Jackson & Illsley, 2006). In 2010, Walter Energy acquired Western Canadian Coal, while Anglo-American purchased the minority shares in the Peace River Coal Trend's mine from Northern Energy and Mining Inc., Hillsborough Resources, and Vitol Anker International. In 2011, the Brule mine employed 416 people (DeGrace, 2011; Walter Energy Inc., 2011c, as cited in Rescan, 2013); Willow Creek mine employed 510 onsite workers (DeGrace, 2011; Walter Energy Inc., 2011c, as cited in Rescan, 2013); and the Wolverine mine employed 477 people (DeGrace, 2011; Walter Energy Inc., 2011b, as cited in Rescan, 2013). On April 15, 2014, Walter Energy announced a shutdown of the Wolverine, the Willow Creek, and the Brule mines due to plummeting coal prices (Morton & Koven, 2014). About 415 workers lost their jobs at the Wolverine mine and 280 at the Brazion operation (Brule and Willow Creek mines) (Reaburn, 2014) In 2011, Anglo American acquired full ownership of Peace River Coal Mine and planned to integrate the Peace River Coal Mine with the Roman Coal Mine to support its growth strategy of increasing production from 1 million metric tonnes per year to 3.5 million metric tonnes per year by 2015. However, deteriorating market conditions for metallurgical coal compelled AngloAmerica to put the Peace River Coal Mine under ‘care’ and ‘maintenance’ in 2014, leading to about 360 job losses (Halseth et al., 2017; Penner, 2014). The Quintette Coal mine is about 20 km south of Tumbler Ridge and operated between 1983 and 2000 (Rescan, 2013). The mine was the largest open-pit coal mine in BC, producing 41 nearly 3 million tons of metallurgical coal. The mine consisted of five open pits in three separate areas: Sheriff (Wolverine and Mesa Pits), Frame (Shikano Pit,) and Babcock (Windy and Window Pits). The mine has been under ‘care’ and ‘maintenance’ since it was closed in 2000, and the overland conveyor decommissioned in 2011. Teck secured the necessary approvals to restart the Quintette mine but suspended the restart plan in 2014 due to the plummeting coal prices (Penner, 2014). 3.2 Socio-Economic Characteristics 3.2.1 Population Dynamics Tumbler Ridge’s Conceptual Plan projected a population of 3,568 residents in 1981, 7,940 in 1985, and 10,584 in 1987, after which it was expected to stabilize (Thompson et al., 1978). However, coal prices began to fall shortly after the commencement of production, undermining the sustainability of the mines and the town and thus, discouraging long-term investments in the community. Temporary work camps with between 200 to 2,000 workers were employed to construct the town and the mines. They intentionally employed married workers with the aim that they would stay longer in the community to reduce employment turnover (Thompson et al., 1978). The population increased slowly to 3,833 in 1984, nearly half the projected level (Halseth, 1999b). The 1986 Canadian census was the first census to include Tumbler Ridge and recorded 4,387 residents (see Table 3.1). The population peaked in 1991 at 4,650 people, after which it began to fluctuate. According to the 2001 Canadian census, the population decreased by approximately 51% due to the Quintette mine closure. The town’s population dynamics are tied to coal prices, new mining activities, and increased mining exploration (Thompson et al., 1978). For instance, the town’s population increased by approximately 33% in 2006 and 10% in 2011 due to the commencement of production by the Peace River Coal Trend’s mine and the Wolverine mine. 42 The closures of these mine projects in 2014 caused the town’s population to decrease by approximately 27% in 2016 (see Table 3.1). The population trajectory since 1986 shows that Tumbler Ridge has been in a state of constant flux depending on the direction of the coal mining sector. With the return of industrial capitalism and a diversified economy, the town’s population has increased by 20.7% between the last two censuses. Table 3.1: Population Change, 1986 - 2021 Year 1986 1991 1996 2001 2006 2011 2016 2021 Tumbler Ridge Population Change Peace River Population Change (%) (from the Regional District (%) (from the previous census) previous census) 4387 n/a 51996 n/a 4650 6.00 53317 2.54 3775 -18.82 56477 5.93 1851 -50.97 55080 -2.47 2454 32.58 58264 5.78 2710 10.43 60082 3.12 1987 -26.68 62942 4.76 2399 20.7 61532 -2.2 Source: Statistics Canada Census Data (1986 - 2021) 3.2.2 Labour Market Dynamics Between 1986 and 2001, the labour force participation rate declined by 4.4% and further dropped by 7.7% over the last 15 years, while the regional average increased by 1.1% between 1986 and 2016 (see Table 3.2). The employment rate increased from 68.8% in 1986 to 73.2% in 1991, peaked at 73.6% in 1996, and dropped to 62.8% in 2006 while reaching a record low of 49.4% in 2016. As of 2016, about 23% of the total labour force could not find a job in Tumbler Ridge. Regional employment grew by about 7% between 1986 and 2016, while the unemployment rate declined by 4.6%. Until 2016, the average employment income in Tumbler Ridge was higher than the regional average (see Table 3.2). In 1986, the average employment income in Tumbler Ridge was ($44,881) which was above the regional average ($29,087). In 2011, the average employment income in 43 Tumbler Ridge stood at ($80,685), while the regional average was ($63,012). In 2016, the average employment income in Tumbler Ridge declined by 9.4%, while the regional average increased by 19.5%. Table 3.2: Labour Force Characteristics, 1986 – 2016 Tumbler Ridge Year 1986 1991 1996 2001 2006 2011 2016 Labour Force Participate 76.2 78.3 77.4 71.8 66.6 73.3 64.1 Employment Rate Unemployment Rate 68.8 73.2 73.6 64.6 62.8 66.3 49.4 9.9 6.6 4.8 10.0 5.6 9.3 23 Peace River Regional District Average Income $ 44881.00 48665.00 52691.00 54208.00 57404.00 80685.00 73109.00 Labour Force Participate 71.7 74.7 74.8 73.4 76.1 74.8 72.8 Employment Rate Unemployment Rate 59.8 66.4 67.5 66.2 72.0 70.0 64.0 16.7 11.1 9.7 9.7 5.5 6.4 12.1 Average Income $ 29087.00 34619.00 39235.00 44191.00 54954.00 63012.00 75303.00 Source: Statistics Canada Census Data (1986 - 2016) 3.3 Valemount, British Columbia 3.3.1 History and Geographic Context Located in the Robson Valley, Valemount (Figure 3.2) is nestled between the Rocky, Monashee, and Cariboo Mountains (Valemount, 2010). Valemount is located on Yellowhead Highway #5, west of Jasper National Park, and close to Mountain Robson Provincial Park (Markey et al., 2012). The town was established as a temporary camp for seasonal forestry workers and a railway station for the Great Northern and Grand Trunk Railroads in 1914, which later became CN Rail in 1928 (Parkins & Reed, 2012; Valemount, 2010). Many small sawmills, including Kennedy and Moore, were opened at the time (CS, 2013). In 1953, a planer mill was established to add value to lumber from a wide range of small mills operating in the area. In 1958, through a local community initiative, the ladies’ club raised money to purchase a generator from McBride to provide electricity for the community (CS, 2013). 44 Figure 3.2. Map of Fraser-Fort-George Regional District Source: Matt McLean, GIS lab, UNBC, 2021. On December 13, 1962, Valemount was incorporated as a village municipality under the Municipal Act (CS, 2013) and is now part of the Fraser-Fort-George Regional District. Major infrastructure works in the 1960s included the village office, library, water system, and television station. The construction of the Yellowhead Highway in early 1965 fostered new economic opportunities, including a lumber mill established by Canyon Creek Forestry Products in 1967. Valemount experienced an expansion in construction activities and population growth, from 600 residents in the early 1960s to 1,160 residents in the mid-1970s (CS, 2013; Valemount, 2010). Community infrastructures such as a sewer system, a medical clinic, a community hall, new hotels, motels, and restaurants were built to enhance the quality of life and make community services available to the residents. The 1980s saw growth in local environmental awareness – 45 which led to the clean-up of the Starratt Wildlife Sanctuary at the old dumpsite. In 1982, the District established the first tourist booth. The Canoe Robson Education Development Association (CREDA) (later changed to Valemount Learning Centre) was formed in 1984 to provide residents with continuing education and training. Given uncertainty within the forestry industry and fluctuating lumber prices, Valemount began a gradual transition into tourism owing to the world-class snowmobiling terrain, hotels, and motels developed through the 1990s and 2000s (Valemount, 2010). Valemount continued to receive an infrastructure facelift such as the paving of the streets (between 1993 and 2000); repairs to the Curling Rink and the Arena; an airport terminal (completed in 1996); a new water tower; as well as the provision of Asymmetric Digital Subscriber Line (ADSL); high-speed Internet; a new school with a gymnasium and a theatre (in 2006); a new visitor’s information and interpretive center was built with accommodation for the village office on the lower floor (in 2007); and significant downtown revitalization (in 2009) (VCP, 2010). 3.3.2 Forestry Industry and Mill Closures For more than thirty years, the forest industry has been the mainstay of Valemount’s economy (Valemount, 2010). In the early years, several small mills prepared timber for the railroad and lumber for sale (CS, 2013). Later, the industry became centralized around a single major mill supplying logs and wood products to meet growing national and international demand. Most of the local working population was employed in either forest management, harvesting, transportation, or manufacturing (Markey et al., 2012; Parkins & Reed, 2012; Valemount, 2010). Dependence on forest product exports affected the stability of the town’s economy as it became susceptible to national and global market conditions. The forestry industry began experiencing boom-and-bust cycles, which led to the acquisition of Canyon Creek Forestry 46 Products by Clearwater Timber Industries in 1980, providing about 400 direct jobs between Clearwater and Valemount. Clearwater Timber Industries was hard hit by two significant mill crises in 1984 and 1986 and eventually went bankrupt. In May 1987, Slocan Forest Products purchased the mill from Clearwater Timber Industries. The mill reached its peak in the 1990s and encountered intermittent closures between 1991 and 1992, resulting in a reduction of the workforce by two-thirds. Slocan finally shut down and sold the mill to Canfor, which in turn sold it to Northwest Specialty Lumber in May 2005. In 2006, Northwest Specialty Lumber further sold the mill to Carrier Lumber after laying off most employees. The mill was permanently shut down in 2007 and torn down in 2009. 3.5 Socio-Economic Characteristics 3.5.1 Population Dynamics In the early years of the town’s development, Valemount promised to be a viable and dynamic community. Between 1976 and 1986, it recorded a population increase of 32.2% (from 878 people to 1,161), higher than the regional growth rate of 12.2% (see Table 4.3). Between 1991 and 1992, Slocan shut down its operation and reduced its workforce by two-thirds. This, coupled with outmigration of the young people, caused the town’s population to decline by approximately 12% (from 1161 in 1986 to 1303 in 1996), while the regional population grew by about 11% (see Table 4.3). Since then, Valemount has experienced population decline. The situation was exacerbated by the mill closure in 2007. Between 2001 and 2006, the town’s population decreased by approximately 15%, while the regional population decreased by 3% (see Table 4.3). Due to the increased economic activity in the area, the town’s population increased by 3% between the last two censuses. 47 Table 3.3: Population Change, 1981 – 2021 Year Valemount 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 878 1130 1161 1128 1303 1195 1018 1020 1021 1052 Population Change (%) (from the previous census) Fraser-Fort George Regional District n/a 79616 28.7 89431 2.7 89337 -2.8 90739 15.5 98974 -8.3 95317 -14.8 92264 0.2 91879 0.1 94506 3.0 96979 Source: Statistics Canada Census Data (1981 - 2021) Population Change (%) (from previous census) n/a 12.3 -0.1 1.6 9.1 -3.7 -3.2 -0.4 2.9 2.6 4.5.2 Labour Market Dynamics Labour market trends in Valemount provide a unique opportunity for understanding rural economic change. Between 1981 and 2001, the labour force participation rate increased by 7.3% but decreased by 7.9% over the last 15 years, while the regional average also declined by 3.8% between 1981 and 2016 (see Table 3.4). Employment grew from 52.1% in 1981 to 69.5% in 2001 and then fell to 58.9% in 2016 (see Table 3.4). On the other hand, the unemployment rate declined from 19.3% in 1986 to 8.5% in 2016. Regional employment fell by 3.8% between 1981 and 2016, while the unemployment rate declined by 7.4% between 1986 and 2016 (see Table 3.4). Between 1981 and 2016, the rate of growth of average employment income in Valemount was far less than the regional average. The average employment income in Valemount grew by 84%, while the regional average increased by 179%. 48 Table 3.4 Labour Force Characteristics, 1981 - 2020 Valemount Year 1981 1986 1991 1996 2001 2006 2011 2016 Labour Force Participate 66.9 70.7 66.9 63.9 74.2 76.6 58.0 66.3 Employment Rate Unemployment Rate 52.1 57.1 56.4 54.1 63.4 69.5 53.7 58.9 7.1 19.3 15.6 14.5 13.8 8.6 8.5 10.3 Fraser-Fort George Regional District Average Income $ 23531.00 23044.00 30413.00 30355.00 33001.00 38372.00 43270.00 52159.00 Labour Force Participate 73.4 72.3 75.2 75.1 72.4 72.5 69.2 68.9 Employment Rate Unemployment Rate 66.4 60.4 65.0 66.5 64.4 66.8 62.2 62.6 8.2 16.5 13.6 11.5 11.1 7.8 10.0 9.1 Average Income $ 20045.00 30195.00 36782.00 41642.00 45773.00 51530.00 55854.00 76555.00 Source: Statistics Canada Census Data (1981 – 2016) 4.6 Conclusion Tumbler Ridge and Valemount are geographically located within the resource hinterland of northern BC. The region is unique in terms of its scenic environment, natural, and community assets. Over the years, the regional economy has been heavily dependent on resource extraction. Tumbler Ridge was built as an ‘instant town’ to facilitate coal development in northeast BC. In the early 2000s, Tumbler Ridge experienced a significant economic downturn due to the closure of Quintette and Bullmoose mines. Despite efforts to diversify the local economy, coal mining continues to be a vital part of the town’s economy. Due to coal market fluctuations in 2011, Tumbler Ridge experienced a second wave of mine closures in 2014. The lessons and experience from the early 2000s crisis positioned the town to respond effectively to the second mine crisis. Valemount was built as a forestry town to support mill operations near the community. The abolition of the appurtenancy policy, coupled with other external factors, led to the closure of the last Valemount sawmill. However, due to strong local leadership and senior governments’ support, the town advanced a strong focus on economic diversification based on tourism development, community forest, and resort development. 49 Considering the industrial closures in Tumbler Ridge and Valemount and the subsequent efforts to diversify the local economy, it is essential to understand the transition process, strategies, outcomes, and the role played by the resource industries. Thus, this study draws upon a qualitative research methodology to compare the case studies. 50 Chapter 4: Methodology and Methods 4.0 Introduction This chapter discusses the methodology and methods used for examining the economic transition in Valemount and Tumbler Ridge. The chapter is organized into six sections. Following this introductory section, the second section presents the research methodology. The third section discusses the methods for data collection, specifically; the type and sources of data and sampling technique. Section four addresses tools for data analysis, and the fifth section explains how rigour was ensured in the research process. The chapter concludes with a summary discussion on the research methodology and methods. 4.1 Methodology This study draws upon a qualitative research methodology based on my ontological position that knowledge is shaped by social construction (Denzin & Lincoln, 2005). Social phenomena can only be understood through how people represent them. Thus, qualitative research fosters pluralistic and negotiated truths based on how people perceive the world (Guba & Lincoln, 2004). In addition, qualitative research allows for a greater understanding of complex nuances in attitudes and behaviours. In summary, it emphasizes "the study of natural, real-life settings, a focus on participants' meanings and context, open-ended data collection, [and] analytical strategies that retain the contextual nature of the data" (Maxwell & Loomis, 2003: 250). Therefore, this research employs an exploratory qualitative methodology that considers the research context and the theoretical foundation of the questions under investigation. 4.2 Case Study Research This research study adopts a case study approach to investigate the economic transitions of Valemount and Tumbler Ridge. Across the literature, case study is referred to as a methodology, 51 method, an approach, research design, research strategy, and/or a form of inquiry (Creswell, 2014; Stewart, 2014; Yin, 2014; Anthony & Jack, 2009; Merriam, 2009; Simons, 2009; Brown, 2008; Stake, 2006, 1995; Gerring, 2004;). Case study research involves an empirical investigation into important contextual issues and several sources of evidence to test a hypothesis based on a prior theoretical foundation (Yin, 1994). More importantly, case studies are comprehensive research that involves data collection and research design. According to Yin (2014, 2012), case study research is necessary when three conditions are satisfied: (i) when the research being undertaken is focused on descriptive, exploratory, or explanatory questions; (ii) when current events are being assessed in their real-world settings and data can be collected in such settings; and (iii) when the researcher has little power to manipulate or control behavioural events. This study satisfies the above conditions because it focuses on exploratory questions; the cases under investigation are current episodes of industrial closures and economic transition; and the events have already taken place, ruling out the possibility of manipulation. Case study research is perceived not to be scientifically rigorous, provides little basis for generalization, generates results that are sometimes influenced by the researcher’s feelings, and is difficult to replicate, time-consuming, and expensive to conduct (Stake, 2005). Case study research, however, has three main benefits. First, it provides detailed qualitative information (Yin, 2003). Second, it provides insight for further research, and thirdly, it allows for the investigation of complex relationships with several sources of evidence. 4.2.1 Comparative Case Study This research employs a comparative case study approach to examine the similarities and differences in the transition process, strategies, and outcomes. Multiple case studies identify similar or contrasting results based on a particular theory (Yin, 2003) by helping to enrich the 52 literature (Vannoni, 2014). A comparative case study is “focused because it deals selectively with only certain aspects of the historical case and structured because it employs general questions to guide the data collection analysis in that historical case” (George, 1979: 61-62). Moreover, “this approach is aimed at exploring the historical and contemporary processes that have produced a sense of shared place, purpose, or identity” (Bartlett & Vavrus, 2017: 49). It also examines the data within each case study and across situations (Yin, 2003). While the evidence produced by this type of study is considered robust and reliable, it can also be time-consuming and difficult to conduct (Baxter & Jack, 2008). This thesis adopted a well-structured study design to avoid any unnecessary workload. 4.2.2 Case Study Selection The selection of cases for comparative analysis is a fundamental process in any qualitative research study. In this study, I purposefully selected cases within northern BC for its unique geography and resource-based economy. Northern communities are isolated, remote, and rural hinterlands (Marais et al., 2018; Clemenson, 1992; Picot & Heath, 1992), where a bulk of the province’s resources are concentrated (Markey et al., 2008a). These communities primarily depend on single-resource industries for their economic livelihoods and social survival (Walisser et al., 2005). Most of these communities have experienced economic downturns due to the closures of their dominant industry. While many studies have shown that resource-dependent communities have limited capacity and opportunities to pursue alternative forms of development due to their remoteness, size, and narrow economic base (Suutarinen, 2013; Lucas, 1971; Innis, 1956, 1933), we can examine similar cases in northern BC where some resource towns have pursued diverse forms of economic development; hence, the selection of Valemount and Tumbler Ridge. 53 Although these communities are distinct in terms of resource background but similar in terms of geography, economic history, and character as single-industry towns. Both communities are located within northern BC with a history of economic downturns in their respective dominant industry and a trace of economic transition, which appears to be successful. This thesis, therefore, compares the transition process, strategies, and outcomes of these two cases. 4.2.3 A Conceptual Framework for Comparison In comparative case study analysis, the rationale for case selection is linked to a conceptual framework that justifies the choice (Hantrais, 1999). The case studies are rooted in a comparative context, while the methods for investigation are embedded in comparative literature. Based on the above criteria, I constructed a three-variable framework for comparing the case studies. Figure 4.1: A Comparative Transition Framework Outcome Process Strategy Source: Thesis (2022) Table 4.1: Key Variables for comparison5 Evaluation Framework Process Description How were the outcomes or impacts achieved? In other words, how the 5 • Key Evaluation Variables Economic Development/Sustainability Planning The table provides detailed explanation about the three-variable conceptual framework (i.e., process, strategy, and outcome) used in carrying out the comparative analysis. The diagram shows that there is a bidirectional link between the processes and the strategies. This means that some of the strategies also inform aspects of the processes examined. 54 structures and programs were developed to attain the results (Boothroyd, 2018). Strategy Involves the transition mechanism or • Long-term Economic Diversification/Sustainability • Community Revitalization • Percentage of Total Employment by Industry • Population Change techniques adopted and implemented to achieve the outcomes. The transition strategy provides a blueprint for economic revitalization. Outcome/Impact Impact or outcome evaluations are undertaken to assess whether and how well the objectives of the transition were achieved (Boothroyd, 2018). Source: Thesis (2022) 4.3 Data Collection Method This research utilizes multiple data collection methods to achieve the research objectives (Yin, 2003; Meredith, 1998). While various methods produce different information, their results can complement and provide grounds for triangulation, generalization, as well as reliability and credibility checking (Babbie, 2004; Schoenberger, 1991). The combination of quantitative and qualitative data has been challenged in the methodological literature (Guba & Lincoln, 2004). Bryman & Teevan (2005) state that research methods are rooted in epistemological and ontological positions, making qualitative and quantitative data incompatible. However, case study research can be based on qualitative, quantitative, or mixed-method evidence (Tetnowski, 2015; Yin, 2014; Ellinger et al., 2005; Yin, 2003). Moreover, Bryman & Teevan (2005: 322) note that “different methods can be used to accomplish different tasks depending on the theoretical stance of the researcher.” Despite the potential compatibility issues, I use qualitative and quantitative data to understand the transition process, strategies, and outcomes and ensure that the results are robust and reliable (McKim, 2017). 55 4.3.1 Primary Data Key Informant Interviews The thesis employs key informant interviews as the primary data collection method. This provides an effective means for studying nuances in attitudes and behaviours (Babbie, 2004). It also offers an opportunity to understand local processes and how various stakeholders work together to achieve a common purpose. In addition, it increases the validity of the research because ‘being in the field’ enables researchers to obtain a greater depth of understanding of the issues being studied (Babbie, 2004). Key informant interviews are also ‘unstructured’ or ‘in-depth interviews’ and are often described as a form of conversation (Lofland & Lofland, 1995; Burgess, 1982a). They involve interviewing a select group of individuals with knowledge and expertise in a particular subject or issue. In key informant interviews, only a small number of informants are interviewed. The number of informants usually ranges from 15 to 35. Such interviews allow probing techniques to achieve a depth of answer in terms of explanation (Ritchie & Jane, 2003). They also allow the researcher to explore all the factors that underpin participants’ answers, such as reasons, feelings, opinions, and beliefs. Houston & Sudman (1975) argue that informants who occupy specialized roles within a social structure can provide more information on role-related aspects of the system than those who occupy unrelated positions. There are several advantages of the key informant interviews. First, the key informants often bring their knowledge of the issues under investigation to bear. Second, they provide flexibility in exploring new ideas and phenomena that were not anticipated in the study’s planning phase but are relevant to its purpose. Third, they are less costly to conduct than other research methods such as survey research. Although key informant interviews offer many benefits to 56 researchers, it faces criticism. Selecting suitable informants can be challenging unless the researcher has some insider knowledge. They are less useful for quantitative analysis and the results are sensitive to interviewer biases. Lastly, when only a few key informants are used, it may affect the validity of the findings. Sampling Framework A sample is essential in qualitative research because it is often impossible to study the whole population. It is a representation of a larger population selected to participate in a research study (Polit et al., 2001; Brink, 1996). This study adopts a stratified purposeful sampling method to identify and select the research participants. Stratified purposeful sampling seeks to capture divergent views from a cross-section of samples with each stratum constituting a fairly homogeneous sample (Patton, 2002: 240). This sampling technique allows researchers to gain a deeper insight into the research questions. Moreover, it enables researchers to apply their knowledge of the research problem to select participants from diverse sectors within the community, who have experience and knowledge about the phenomenon of interest (Cresswell & Plano Clark, 2011). In this study, I selected participants who were directly involved in the transition in order to solicit detailed and first-hand information about the transition process, strategies, and outcomes. To select participants, I developed a stratified sampling framework based on sectors, including the provincial government, municipal government, not-for-profit sector, and the resource industry (see Table 3.2). The objective was to recruit participants who were directly involved in the transition process or connected to the transition in each community. The potential participants were recruited through public documents, CivicInfo BC, and organization-specific websites. Email messages and telephone calls were used to recruit the participants. Once people 57 expressed interest in participation, an interview was scheduled based on a convenient date and time. Table 4.2: Sampling Framework Tumbler Ridge Sampling Units Valemount Number of Participants Government: Sampling Units Number of Participants Government: Municipal - Elected 2 Municipal - elected 3 Municipal - Staff 3 Municipal - Staff 1 Provincial - Elected 1 Provincial - staff 1 Provincial - Staff 1 Not-For-Profit Sector 6 Not-For-Profit Sector 4 Industry 3 Industry 1 Total 16 Total 10 Source: Thesis Interviews, 2021 Interviewing Process The Covid-19 pandemic and associated public health protocols made in-person or face-toface interviews practically impossible. The original intent to conduct a focus group discussion based on which the key informants would be selected was abandoned since public gathering was restricted by the order of the Provincial Health Officer. As a result, I utilized Zoom Videoconferencing and telephone to conduct the interviews. Of the 26 people interviewed – Tumbler Ridge (16) and Valemount (10), 21 people were interviewed through Zoom videoconferencing, while 5 people were interviewed by telephone due to connectivity issues and personal preference. Despite the challenges associated with videoconferencing, it serves as a viable alternative to in-person interviews (Irani, 2019). Videoconferencing is gaining popularity among researchers 58 due to its logistical expediency and practical advantages. It reduces the geographical issues associated with in-person interviews and offers researchers a more significant opportunity to reach a wide range of participants irrespective of their location. It avoids the time and expenses related to travel. It also offers flexibility and more options to suit participants’ busy work schedules and personal lives. Lastly, participants feel comfortable, less stressed, and more relaxed as the interviews are conducted in an environment of their choice. Moreover, “researchers have access to the participant’s visual cues through their screen, and videoconferencing facilitates the collection of verbal and nonverbal data” (Irani, 2019: 4). Therefore, videoconferencing preserves many features associated with an in-person interview, “with an added flexibility and convenience for both researchers and participants” (Irani, 2019: 4). Although videoconferencing offers numerous advantages, it is not appropriate for all research topics and participants (Irani, 2019). Videoconferencing lacks the physical presence, which is sometimes required to comfort the participant if the study borders on sensitive issues. Videoconferencing limits the researcher’s ability to assess the participant’s environment, which often adds contextual understanding to the data collected. In addition, researchers are deprived of the opportunity to observe participants’ entire body language and nonverbal communication. Videoconferencing may also underrepresent participants with no access to the technology or who may not feel comfortable using it. Lastly, researchers may encounter technical or internet connection challenges that could affect the interview quality and audio-recorded files. The use of a telephone to conduct interviews is gaining increasing attention within the academic research community. Telephone interviewing offers two significant benefits to researchers. First, it gives researchers access to diverse resources and experiences without the cost and time consumed by traveling to different locations (Block & Erskine, 2012; Taylor, 2002). It 59 also allows for interviewing participants who may not otherwise be available due to their location (Ilies et al., 2007; Sturges & Hanrahan, 2004; Maritan, 2001). Secondly, telephone interviewing provides an easy way to gather contextual information for quantitative studies because it consumes less time than face-to-face interviews (Sobo et al., 2003). Therefore, telephone interviewing can provide a more comprehensive sample, cost-effectiveness, and time efficiency. Despite the benefits associated with the use of the telephone as a medium of data collection, it might reduce rapport, probing, and in-depth discussion and may result in distortion of data (Opdenakker, 2006; Fontana & Frey, 2005), loss of contextual data (Opdenakker, 2006; Patton, 2002), and loss of nonverbal data (Fontana & Frey, 2005; Chapple, 1999). The accuracy of responses in an interview setting is a negotiation between the interviewer and the participant (Dowling, 2005; England, 1994; McDowell, 1992). The accuracy of responses determines the validity of the research results (Babbie, 2004). While interview questions and answers can be interpreted as intended, measures can be taken to improve the likelihood of their accuracy, such as pretesting the interview guide. To address any interpretation challenges that may unfold during the interviewing process, the interview guide was subjected to pretesting with three non-participating informants. Feedback was obtained on interpretation, content, and flow. Utilizing a semi-structured interview guide allows a predetermined set of topics and questions to be asked consistently in each interview (Dunn, 2005). This procedure offers flexibility in the sequence in which questions are addressed and allows various topics to be covered more naturally. This method also reveals unanticipated issues necessary for the study (Schoenberger, 1991). However, the flexibility offered in this method can reduce the comparability between participants (Bernard, 2000) if not all the questions are addressed in each interview due to a lack 60 of information and knowledge. Despite the difficulty in comparing interviews, this method still offered robust responses and quality data. The interview guide includes open-ended questions because they provide the space and time to reveal potentially rich data and allow participants to use their own words to highlight salient points (Babbie, 2004; Schoenberger, 1991). However, open-ended questions can be challenging to analyze because responses are not necessarily consistent (McGuirk & O'Neill, 2005). Despite potential analytical challenges, in-depth responses that highlight salient points based on participants’ understanding of the issues reflect my ontological stand and the purpose of this research. Prior to commencing fieldwork, the interview guide and consent form were approved by the Research Ethics Board at UNBC (Appendix A). I reviewed the consent form with each participant before starting the formal interview (Appendix B). Each participant kept a signed copy of the consent form, and I retained a manuscript until the completion of this thesis. As part of the consent form, participants were asked if the interview could be recorded to ensure that the full detail of the discussion was well-captured (Dunn, 2005). This allowed the participants to talk as fast as possible and allowed me to be more attentive to the conversations. All the 26 participants consented to Zoom or telephone recording. After each interview session, the Zoom videoconferencing allows the researcher to retrieve the meeting's audio, video, and transcript. Regarding the telephone interviews, I used a recording app to capture participants’ responses and later transcribed the data for analysis. The interview guide is comprised of five sections (Appendix C). The sequence of the questions was done intentionally to maximize the opportunity to build rapport with the participants (Dunn, 2005). A funneling technique was employed whereby more general questions precede 61 specific questions. This approach reveals the participants' level of experience and knowledge about the subject matter and how helpful they might be to the study. This allowed me to achieve trust with most participants, except one industry participant, whose responses were close-ended and lacked basic details. When asked to provide further detail, the participant firmly stated that he would not elaborate. This, in my view, is because of a lack of understanding of the purpose of this research project or he was concerned about the implications of elaborating (legal or otherwise). Interview summary notes were sent to all participants for review. Interview summaries are records of the interview in which false starts were eliminated and grammar corrected (Dunn, 2005). I produced a summary note for participant review rather than a transcript because I wanted participants to improve the quality of my record while recognizing the "political effects of exact transcription"6 (Dunn, 2005: 99). Sending a transcript to participants for review could potentially result in withdrawal for feelings of embarrassment or self-censorship around articulation, grammar, repetition, and hesitancy. Participants were invited to correct any errors, omit information, or add information. In addition, I used the opportunity to seek clarifications and communicate any questions I had about the interview. Over 45% of all participants (12/26) offered minor corrections and added new information. No participant made any significant changes. One participant also emailed me new information that she thought might be valuable to the study. Two participants were asked for further clarification on at least one point in the interview summary notes. The revised summaries were used in the analysis. 4.3.2 Secondary Data Secondary data were used to validate information obtained from the interviews, clarify contradictions, fill in gaps in the interviewing process (Kindon, 2005; Johnson & Turner, 2003), 6 Political Effects of Transcription occurs when transcription interfaces with transcriber’s worldview, cultural experiences, and sociolinuistic biases (Jaffe, 2000). 62 learn about previous events (Zirul, 2006), and for purposes of triangulation process (Baxter & Eyles, 1997). The secondary source information was instrumental in uncovering the transition objectives and pathways/strategies for the two communities. Given that the transition’s events occurred in the past, some participants found it difficult to recollect timelines, events, and processes. Interviews about past events are fraught with recollection errors and forward telescoping7(Bernard, 2000). Secondary sources can be particularly advantageous because the researcher has no opportunity to manipulate the data (Johnson & Turner, 2003). Secondary data used in this thesis included employment and population data obtained from Statistics Canada, news reports, and local government planning and policy documents. Most of these documents were obtained through an internet search. Tumbler Ridge Labour Market Partnership Agreement and Public Consultation Reports were received from Community Futures, while Valemount Economic Development and Community Tourism Plans were obtained from the Economic Development Office. 4.4 Data Analysis Content analysis was employed to analyze the field data and the documents. The interview data were examined to ascertain their meaning and implications for the research questions (Stewart et al., 2007). The rigorous nature of content analysis ensures reliability and replicability of results and their interpretation (Krippendorf, 2004). A successful analysis means that the researcher must develop an intimate relationship with the interview data (Bailey et al., 1999; Baxter & Eyles, 1997). To achieve a robust result, multiple rounds of content analysis were conducted to determine patterns in the data. Latent content analysis was mainly used to evaluate the interview data and the documents (Berg, 2001; Downe-Wambolt, 1992; Catanzaro, 1988). 7 Forward telescoping is the reporting or dating of events as being more recent than they actually were, and is often observed in surveys and produces inaccurate data (Prohaska et al., 1998). 63 Unlike manifest content analysis which examines the explicit content of the text, latent content analysis explores the implicit or underlying meaning of the text (Krippendorf, 2004). Latent content analysis systematically codes data “into categories that facilitate the comparison of data within and between ... categories” (Maxwell, 1996: 78). This process allows concepts to be linked to broader themes and fosters a deeper understanding of the relationships between themes. Using content analysis allows the intended meaning of the data to be maintained during the analysis. Thus, the process can be repeated to check for consistency (Babbie, 2004). Content analysis is not expensive and does not require software or any technical experience. However, the only limitation of my thesis is that the data were analyzed by only one person (Cope, 2005). To overcome this challenge, I conducted multiple iterations of data analysis and had participants review the summary notes. 4.4.1 Latent Content Analysis I conducted three rounds of latent content analysis. The first round was to familiarize myself with the data by reading through each summary note to understand what the participants talked about (Erlingsson & Brysiewicz, 2017). After familiarizing myself with the data, I began the second round of the analysis by first assigning anchor codes to each research question to assist in organizing codes under their respective research questions. Secondly, I identified relevant statements or essential information in the data and assigned labels and grouped them under their anchor codes. The anchor codes facilitated the identification of concepts along which the data were grouped into themes/categories (Catanzaro, 1988). Reliability was ensured by compiling and storing a list of all the codes with their respective anchor codes to minimize any changes during the analysis process (Morse & Richards, 2002; Catanzaro, 1988; Downe-Wambolt, 1992). My next task was to alphabetize the codes and group them into their respective anchor codes. The initial 64 codes were divided into broad groups based on different layers of the research questions to obtain a comprehensive understanding of the data (Patton, 2002; Catanzaro, 1988). The frequency of the codes was then tallied to understand the most pressing issues running through the data. Lastly, I generated sub-theme/categories through a categorization process. This ensured that codes were bundled to form the main themes aligned with the research questions (Graneheim & Lundman, 2004; Burnard, 1991). The categorization process also ensured that the identified themes and categories do not fall between more than one group (Krippendorff, 2004; Patton, 2002). In the third round of the latent content analysis, interview summaries were re-read alongside the final list of the codes to ensure that all aspects of the data relative to the study’s objectives have been covered (Burnard, 1991). Any relevant information identified was added under their respective anchor codes. The main themes that emerged from the multiple rounds of content analysis include: 1) causal factors 2) coping and transition strategies 3) industry’s role 4) transition challenges These themes form the basis for an in-depth discussion in Chapter Five relative to the existing literature. It must, however, be noted that each theme is connected to the other and, therefore, does not describe an independent process. Chapter Six integrates the themes for comparison and contrast with the existing literature. 4.4.2 Document Analysis Document analysis was conducted to support the interview data and triangulation. Data triangulation helps make the research complete (Jentoft & Olsen, 2019). For this reason, I reviewed 65 and analyzed several documents on the industrial closures and community economic development in the study communities. These include local government planning and policy documents such as Official Community Plans, Economic Development Plans, Community Tourism Plans, Annual Reports, Labour Market Partnership Agreement Report, Public Consultation Report, News Reports, and Socio-Economic Study Reports. Again, content analysis was used to analyze these documents to enhance and cross-check the findings from the fieldwork. Key strategies that supported the economic transition were summarized (see Appendix F). 4.5 Ensuring Rigour Necessary steps were taken to ensure that the research findings met reliability and validity tests. These steps were embedded in the method-related decisions throughout the research process (Long & Johnson, 2000; Baxter & Eyles, 1997). Reliability refers to how results are coherent and reproducible (Dunn, 2005). To achieve reliability, standardized questions were asked in the interviews, the latent content analysis processes were repeated, and each research process was recorded in a file (Long & Johnson, 2000; Kirby & McKenna, 1989). Lastly, interview data and secondary data were compared against each other in a triangulation process (Baxter & Eyles, 1997). Data triangulation ensures that findings do not reflect a single method of inquiry (Babbie, 2004; Long & Johnson, 2000). Thus, rigour and depth are added to the research process (Denzin & Lincoln, 2005). Validity refers to the accuracy of the findings (Dunn, 2005). Validity can be assessed in terms of internal and external validity. Internal validity is how a study establishes a causal relationship between variables and results (Gibbert & Ruigrok, 2010; Yin, 2003; Yegidis et al., 1999; Johnson, 1997). Measures taken to address the internal validity of the research results 66 included interview guide pretests and participant review of interview summary notes before the analysis (Dunn, 2005; Babbie, 2004). External validity refers to "the extent to which findings are believed to apply beyond cases that were studied" (Yegidis et al., 1999: 120). The research results are unique to the study communities. While the situation reports reflect the issues of northern BC, I do not assume that these findings are representative of all communities which have experienced industrial closures. Community context, geography, and government are critical to determining community transition success (Massey, 198a). As Yezidis et al. (1999: 139) note, “case studies make it possible to achieve insights" however, "a case study does not allow the researcher to generalize ... [to do so] would be presumptuous”. As such, the findings of this thesis pertain only to the study areas. This study achieves external validity by connecting the results to a theoretical proposition or prior theory. 4.6 Conclusion This thesis is a comparative case study that draws on semi-structured interviews and content analysis to explore the transition process, strategies, and outcomes of Valemount and Tumbler Ridge. Overall, 26 interviews were conducted between July and November 2021. Interview data were analyzed using latent content analysis. In addition to interviews, secondary data were used to corroborate and verify results through triangulation. The combination of primary and secondary source data produced significant insights on rural development, communityindustry interactions, and resource development in northern BC. During the research process, steps were taken to ensure that the research findings were credible, reliable, and generalizable. The results are discussed in Chapter Five, and their theoretical and policy implications are discussed in Chapter Six. 67 Chapter 5: Results and Findings 5.0 Introduction This chapter presents findings from the content analysis of the key informant interviews and documents. The study examined the transition of Valemount and Tumbler Ridge following the closures of their major industries. The study analyzed both primary and secondary data to address the three main research questions: 1. What transition pathway was adopted by the resource-dependent communities after the mill/mine closures? 2. What was/were the objective (s) of the transition process, and were they achieved? 3. What was the role of the resource industries in the transition process? Table 5.1 summarizes the results from the content analysis of interviews and documents through four sections. The first explores the causal factors underpinning the mill/mine closures. The second examines the coping and transition strategies. The third assesses the industry’s role, while the fourth discusses the transition challenges. 68 Table 5.1: Summary of Thematic Findings Section Heading Macro-Theme (Valemount) • Causal Factors • • • Coping and Transition Strategies Industry’s Role • • • • Transition Challenges • • • • • • Change in Provincial Forest Policy Global Market Fluctuations Low Quality of Wood Supply Economic Diversification/ Sustainability Community Revitalization Social Capital Macro-Theme (Tumbler Ridge) • • • • • • Social and Community Investment Economic Development Financial Constraint Policy Change Provincial Land Use Policy Geography Housing Pressures Power Struggle Source: Thesis 2022 • • • • • • • • Global Market Fluctuations Financial Constraints Economic Diversification/ Sustainability Community Revitalization Social Capital Social and Community Investment Economic Development Local Procurement Ecological Impact Mitigation Financial Constraints Policy Change Human Capital Constraints Community Attractiveness Power Struggles 5.1 Factors Underpinning the Mill Closures in Valemount This section addresses the causal factors underlying the closure of the Valemount mill. To do this, I will draw on the following thematic findings: changes in provincial forest policy, global market fluctuations, and low-quality of wood supply. (I). Change in Provincial Forest Policy Changes in the provincial forest policy have significantly impacted the forest industry in Valemount. For example, the appurtenancy clause in the BC Forest Act ensured that trees harvested in a particular region are processed in the same area (Marchak & Allen, 2003). The goal 69 was to attract investments into rural communities and link timber harvest to community stability. However, the new Forest Revitalization Act (2003) allowed tenure holders to ship raw logs to mills outside the locality. Proponents argued that local mills lacked the modern equipment to process the remaining species and dimensions of wood logged in the region. Many participants believed that the removal of the clause undermined the sustainability of the Valemount mill. This is because the repeal of the Act allowed the company to ship the trees harvested in the Robson Valley Timber Supply Area (RVTSA) to outside mills for processing. According to the Integrated Community Sustainability Plan (ICP): Changes to provincial policy in 2003 shook the foundations of the forest economy in Valemount when a long-held social contract between tenure holders and communities was severed. Since the 1960s, a connection between forest tenure and milling facilities guaranteed that Valemount would be involved in wood processing (CS, 2013: 6). Participants also suggested that the Valemount mill “did not have a large tenure to sustain its operations” (Valemount Interview 010). The RVTSA8 covers approximately 1.24 million hectares, including McBride, Dunster, Valemount, and Crescent Spur (BHA & WMC, 2004a). The Annual Allowable Cut (AAC) for the TSA “was set and maintained at 602,377 cubic meters per year, of which 6000 cubic meters was a deciduous partition” (BHA & WMC, 2004a: 6). In 1996, the Timber Supply Review of the RVTSA concluded that the AAC must be reduced “by ten percent per decade to a final long-term harvest level of approximately 45% of the current AAC of 602,377 cubic meters to 351,000 cubic meters” (VAEDC, 2000: 63). The Robson Valley Land and Resource Management (LRMP) also suggested that the reduction in the AAC will lead to at least 8 The Robson Valley Timber Supply Area does not include community forests or woodlots. 70 one mill closure in the TSA within the next 20 years (BHA & WMC, 2004a). At the time, about 70% of the logs processed by the Valemount mill originated from the TSA (BHA & WMC, 2004a). Table 5.2: Harvest history in the Robson Valley TSA (2001-2011) Year Total TSA Harvest (m3) Pine Harvest (%) 2001 2006 2007 2008 2009 2010 2011 602,377 536,000 189,582 148,985 50,086 86,011 146,179 29 33 56 49 63 Source: Mid-Term Timber Supply, 2012 One consequence of changes and challenges around forest policy is that many participants reported that the mill changed ownership rapidly. Across the industry, “there is ongoing rationalization and centralization of production. At the same time, there is a 40% production overcapacity in the province” (VAEDC, 2000: 70). The rapid change of ownership was partly a result of the repeal of the appurtenancy clause and the reduction in the AAC. In 1980, Canyon Creek Forestry Products sold the mill to Clearwater Timber Industries due to unstable market conditions (Markey et al., 2012; Parkins & Reed, 2012; Valemount, 2010). Clearwater Timber Industries was hard hit by two significant mill crises in 1984 and 1986 and eventually became bankrupt. As a result, the company sold the mill to Slocan Forest Products in May 1987. The mill was temporarily closed between 1991 and 1992 and reduced its workforce by two-thirds (Valemount, 2010). On July 31, 2002, the Slocan Group announced an indefinite curtailment of production due to the constraints imposed by the softwood lumber dispute, a slump in the U.S housing market, lumber price fluctuations, and the rising Canadian dollar. Slocan Group sold the mill to Canfor, which, in turn, sold it to Northwest Specialty Lumber in May 2005 (Markey et al., 2012; Parkins & Reed, 2012; Valemount, 2010). In 2006, Northwest Specialty Lumber further sold the mill to Carrier 71 Lumber after laying off most of the employees. Participants further noted that the companies were keen on purchasing the mill in order to have access to the forest tenure. The mill was permanently shut down in 2007 and torn down in 2009. Thus, the rapid change of ownership was indicative of an industry that was struggling to survive economically. (II). Global Market Fluctuations Many participants noted that the Valemount mill experienced unfavourable market conditions. The global commodity market is inherently vulnerable to price fluctuations with more significant cyclical impacts (O’Hagan & Cecil, 2007). In BC, market fluctuations have profoundly impacted under-capitalized, small logging and milling companies. According to the Prince George Free Press (2003), the drop in lumber prices to around $165 per thousand board feet made it economically unviable to reopen the mill. Over the past 25 years, the U.S has considered trade restrictions against Canada's softwood lumber exports through countervailing and antidumping duty laws (LaMontagne & Obale, 2021). In 2001, the imposition of countervailing duties on Canada's lumber exports led to the softwood lumber dispute, which ended in 2006 following the Softwood Lumber Agreement (SLA). Many participants suggested that the imposition of the tariff made Canada's lumber exports more expensive and less competitive in the global marketplace, thereby affecting the economic viability of the mill operation. The lack of investment in the mill infrastructure also made the mill less competitive. Participants noted that various owners of the mill failed to invest in new technology and equipment, which made it difficult to maintain the competitiveness of the mill. Growing competition from wood and paper product industries from low-cost producing regions in other parts of the world compounding the struggles of the forest industry (O’Hagan & Cecil, 2007). Many participants 72 commented that the Valemount mill was too small to compete effectively in the global commodity marketplace. Further, the mountainous terrain of the timber harvesting area meant a high cost of production. This made the Valemount mill less competitive and economically unsustainable in the longer term. One participant commented that: Valemount mill was challenged because of a high production cost. It did not have the volume to distribute the fixed costs and a high stumpage rate over a broader range of lumber. This is also because of the mountainous terrain that the timber was coming from (Valemount Interview 010). (III). Low Quality of Wood Supply In addition to policy and market issues, the limited supply of high quality timber in the Valemount area added to the concern about the viability of the local forest industry. According to the Mid-Term Timber Supply Analysis: A significant amount of remaining mature merchantable timber supply in the timber supply area is located in isolated areas and on steep slopes and can only be harvested using more expensive road construction and cable logging systems (Mid-Term Timber Supply, 2012). The Mountain Pine Beetle (MPB) is a natural disturbance that occurs in the Interior of BC (Patriquin et al., 2005). In 2005, the outbreak of the MPB epidemic drastically changed the availability of timber supply in the region. A report showed that the MPB would “kill more than 80% of the merchantable pine in the Interior of BC” (BC MoFR, 2007c: 2). Communities that depended on the forest industry as a source of employment and driver of their local economy faced mill closures, job losses, and declines in tax revenue (Joseph & Krishnaswamy, 2010). The document analysis shows that the MPB infestation did not substantially affect the timber supply forecast in the Robson Valley because the lodgepole pine and other pine species were not a significant component of the timber supply (RSVTA, 2012). However, Table (5.3) 73 shows that the MPB killed more than 4 million pine trees in the Robson Valley TSA, contributing to limited quality wood for the mill’s operation. Table 5.3: Dead Pine in Robson Valley Timber Supply Area and Community Forests (2012) Zone Timber Supply Area Valemount Community Forest Total Dead Pine (m3) timber supply area 4,102,778 926,162 Dead Pine (m3) timber harvesting land base 1,654,234 435,699 Source: Mid-Term Timber Supply, 2012 Further, the MBP affected the quality of wood in the region. Given the competitive nature of the global commodity market, there is a need for a constant supply of high wood fiber that can compete effectively in the global marketplace. According to a news report, “the dead forests to the West of Valemount are drying and cracking to the point that it can no longer be turned into lumber” (Hamilton, 2012). One participant commented: “some planners had mentioned that all the good species have already been taken out, and it will take hundred years to regenerate” (Valemount Interview 002). Another participant stated that: There was a mixture of species. There was pine spruce, hemlock, and alpine forest, but not all had quality wood. It was challenging to obtain good-quality lumber from some of these forest baskets. So, the mill was constantly challenged with the supply of good quality logs (Valemount Interview 010). Some participants also mentioned that the construction of the MICA dam limited the supply of quality wood for the mill’s operation. The construction of the dam following the Columbia River Treaty led to the removal of a vast area of forest cover, which created the ‘Kinsbasket’ reservoir. As a result, the TSA started experiencing perennial flooding, thus limiting the amount of quality timber supply for the mill’s operation. As one participant explained: In 1994, the Minister of Forest indicated that the valley near the reservoir has the fastest growing timber next to Vancouver Island. We were told there was no issue with logging or forest supply until the MICA dam was built. After that, the mill started having problems with a lack of timber supply because it flooded 19,000 hectares of the valley bottom timberland (Valemount Interview 003). 74 5.2 Factors Underpinning the Mine Closures in Tumbler Ridge In the last 40 years, numerous mine closures have occurred due to reasons other than resource exhaustion (Laurence, 2006). Many participants indicated global market fluctuation as the primary reason for the mine closures. The coal mining industry is prone to a complex and volatile commodity market. In 2011, the spot price of coal was above US $200 per tonne, which made economic sense for Walter Energy to purchase Western Coal (Morton & Koven, 2014). However, in early 2014, the spot prices plummeted to around US$110, a decline attributed to a slow growth rate in China and oversupply by new mine operations in Australia. As a result, Walter Energy shut down its three mine operations, Teck Corporation suspended the re-start plan of its long-idled Quintette mine, and Anglo American idled its Peace River Trend's Coal mine. As one participant commented: We received the information around April that the market had crashed for coal. All the mines started struggling and moved into either a full closure or ‘care’ and ‘maintenance’ mode (Tumbler Ridge Interview 005). Further, many participants noted that some mining companies were financially challenged, and the situation became worse with the fluctuating coal prices. In 2012, Teck commenced a costcutting program to remain competitive while operating below capacity (Penner, 2014). However, the deep cost-cutting measures failed to offset the impact of the declining coal prices. According to a news report, Walter Energy shut down because “coal prices plummeted, the company ran into balance sheet problems, and it ended up in a proxy fight with a former Western shareholder” (Morton & Koven, 2014). The challenging metallurgical coal environment caused Walter’s shares to drop by over 90% in the last three years of its operation because its assets were “not competitive in the current metallurgical coal environment, given the cost structure and the product quality” (Morton & Koven, 2014). As a result, its market value dropped to “$512 million US, a small 75 fraction of the $3.3 billion it paid for Western Coal near the top of the market” (Morton & Koven, 2014). As one participant mentioned: Walter Energy shut down because they were bankrupt. They were not making money and could not meet their loan obligations (Tumbler Ridge Interview 011). 5.3 Coping and Transition Strategies 5.3.1 Economic Diversification/ Sustainability The economic transition in both communities was underpinned by a series of strategic planning initiatives and the implementation of actionable projects. In Valemount, many participants suggested that the economic transition began many years before the mill closed. The Village was involved in various community development planning initiatives in the form of ‘Strong Communities in the Nineties’ (1989) and Community Tourism Action Plan (1990) before formal economic planning began in the 1990s. In 1994, the Village Council formed an Economic Development Commission (EDC), which developed the first-ever Economic Development Plan (EDP) (Parkins & Reed, 2012). The plan aimed to “promote diversification of the economy through the development of complementary industry and tourism, and through the continued support of established business to enhance the quality of life of the community” (VAEDP, 1994: 11; see Appendix F). Through voluntary efforts by committee members, Valemount enjoyed many successes, including promoting the image and appearance of the community (VAEDC, 2000) and establishing a learning center to promote skills training, business education, and job opportunities. In 2000, the community revised the EDP “to define a clear vision in order to survive and guarantee a successful future for its residents” (VAEDC, 2000: 8; see Appendix F). The new plan aimed to “transform Valemount and Area from a one-industry community to a mixed economy town with a specialized forestry base, and a growing tourism and services sector” (VAEDC, 2000: 76 39; see Appendix F). Through the efforts of the EDC, Valemount signed Master Agreement for Canoe Mountain Resort Development, the Northern Outdoor Recreation Certificate Program, the construction of the Holiday Inn, Best Western, and the Cariboo Grill, a new high school, an Interpretive Center, and a community forest. One participant mentioned that: The transition began long before the mill closed. The federal and provincial governments provided the tools and funds to develop an Economic Development Strategy in 1994, and it was revised in 2000. The plan outlined strategies for economic diversification based on Valemount’s geographic proximity to Mount Robson Provincial Park, a major tourism potential on Highway #5 which connects Vancouver to Edmonton (Valemount Interview 002). Despite several years of effective economic planning, Valemount was still going through a change in the forest sector (BHA & WMC, 2004a). In 2004, the local government completed a Socio-Economic and Land Use Impact Analysis Study and Report (SELUSR) to ensure that the local, regional, and provincial governments’ actions aligned with the development aspirations of the community. The deliverables of the SELUSR included a Socio-Economic Opportunity Study (SEOS) and a Community Vision - an Implementation Strategy (see Appendix F). The SEOS identified five potential growth prospects, including forestry, amenity migration, tourism, resort development, and attraction of knowledge workers (BHA & WMC, 2004a). The ‘Valemount Vision 2020 - Implementation Strategy’ envisioned Valemount to be “a dynamic and successful place with a multifaceted, blended economy, based primarily on tourism, resort, and real estate development, as well as continued forestry” (BHA & WMC, 2004b: 1). In 2013, the Village developed an ‘Integrated Community Sustainability Plan’ (ICSP) as a framework for achieving long-term social and economic development (CS, 2013). The ICSP builds on the earlier initiatives to provide a comprehensive action plan for implementing programs and projects by 2030 (see Appendix F). Following these strategies, Valemount has achieved tremendous success, including the establishment of the Valemount Community Forest Corporation (VCF) and 77 the Valemount Industrial Park, improvements in transportation services, and various truck stops, gas stations, restaurants, exit and entrance ramps to the Yellowhead Highway, and the expansion of winter and summer tourism industry (Markey et al., 2012). In Tumbler Ridge, the District staff commented on the pursuit of economic diversification through long-term economic planning. However, the economic planning process began in the aftermath of the first mine crisis. In 2012, the District developed an Official Community Plan to reflect its long-term vision and sustainability goals (Tumbler Ridge, 2012). The District also completed a Community Forest Strategic Plan (CFSP) in 2012 and 2018 to support economic diversification. The plan focused on building a reserve fund, developing local capacity, promoting environmental stewardship, supporting local job creation, seeking opportunities within the biofuel industry, supporting local education and awareness programs, and pursuing the value-addition of forest resources (Kenny, 2018). The District staff also mentioned that the District worked closely with the Community Development Institute (CDI) at the University of Northern British Columbia (UNBC) to develop a ‘Sustainability Plan’. The plan sought to achieve “a resilient, vibrant, and sustainable Tumbler Ridge” (Morris et al., 2014: 3). The mine closures reinforced “the need to advance a focus on economic diversification and firmly establish Tumbler Ridge as a modern and self-reliant community in a beautiful setting” (Morris et al., 2014: 1). The plan “draws strength and stability from multiple industries and in which people of all ages and cultures can live, thrive, and enjoy the stunning environment that surrounds them” (Morris et al., 2014: 2). As one participant noted: The District of Tumbler Ridge entered into a service agreement with UNBC to undertake a sustainability plan for the community. The plan’s focus areas tried to look beyond the resource sector and look at other opportunities for the district, most predominantly in the tourism sector (Tumbler Ridge 005). 78 In 2014, the District of Tumbler Ridge, in collaboration with Destination BC, developed a ‘Community Tourism Plan’ (CTP) to enhance the quality of life of residents, maintain the community as a mountain village atmosphere and develop a center for natural history education and a thriving Geopark (Destination BC, 2014). In line with the ‘Sustainability Plan,’ the District also completed a 3-year ‘Investment Readiness and Economic Development Plan’ (IREDP) (see Appendix F) to maximize community assets, resources, as well as economic opportunities to create a more resilient, vibrant, and diversified economy. The plan aimed to attract investments into numerous economic opportunities, including tourism, natural resource industries, Meetings, Incentives, Conferences, and Exhibitions (MICE), as well as virtual entrepreneurship (Tumbler Ridge, 2018). Many participants reported that the Village of Valemount focused on tourism development more than other sectors. Tourism development was a vital driver for the town due to its proximity to national and provincial parks (Jasper, Mount Robson, Swift Current, Wells Grey, Jackman Flats, Foster Arm, and Mount Terry Fox), scenic beauty, and unparalleled outdoor recreation adventure (BHA & WMC, 2004a). Valemount is “strategically located at Hwy 5 and 16 and is the Western gateway to the world-renowned Mount Robson Provincial Park, and gateway to Yellowhead Highway Corridor” (BHA & WMC, 2004a: 43). The province recognized the town as a ‘gateway community’ which allows it to charge a ‘hospitality tax’ on overnight stays to contribute to tourism industry development (RDFFG, 2010). Valemount is endowed with “incredible recreational opportunities, including sport fishing, hunting, ecotourism, wildlife viewing, heliskiing, snowmobiling, jet boating, rafting, canoeing, hiking, equestrian, hang gliding, backcountry skiing, hut to hut, ATV hours, mountain biking, dog sledding, and cross-country skiing” (BHA & WMC, 2004a: 54). With a well-developed hospitality sector, including 13 motels, 5 hotels, 8 restaurants, 79 1 pub, 1 bar, and strong local leadership and provincial support, Valemount has reimagined its natural assets and scenic beauty to become a tourist town (BHA & WMC, 2004a). As one participant noted: At the time, one or two new motels have been built. And in the 2000s, one new hotel and two new restaurants were built, generating interest in product development such as Whitewater rafting, horseback riding, snowmobile, etc. These created market-ready products that could be advertised and promoted. They further allowed for year-round tourism as many hotels and motels could stay open in the wintertime (Valemount Interview 002). While summer tourism has long been part of the economic mix, “the 1990s marked the beginning of winter tourism when snowmobilers began visiting to ride in the surrounding mountains” (Murphy, 2018: 1). Following the mill closure, about 30 young people moved back to the community in search of high quality of life and to help rebuild the town (McCracken, 2015). The young families wanted access to the mountain amenities such as biking trails, backcountry skiing, and snowmobiling site. The development of the town’s tourism assets was motivated by the young returning families. Although building the tourism infrastructure for amazing mountain experiences was not a new idea in Valemount, the idea would not have gained momentum and support in the early 2000s as many community members viewed a move towards tourism as a sort of threat to highly paid skilled millwork. Various economic organizations worked to re-imagine the local economy. In 2004, the Valemount and Area Recreation Development Association (VARDA) was incorporated “to manage trail grooming and shelters in local snowmobiling areas” (Murphy, 2018: 1). VARDA is a not-for-profit organization under the BC Societies Act, which is responsible for managing five Valemount snowmobile areas on Crown Land through a Sustainable Resource Management Plan (SRMP) and partnership agreement with the provincial government. With local and provincial support, VARDA has turned Valemount into a top-quality destination for mountain snowmobiling 80 and wilderness backcountry experiences. The Yellowhead Outdoor Recreation Association (YORA) recently created the first snowmobile-assisted skill hill, improved the 5 Mile bike park shuttle and swift mountain roads, and installed trail signages (Valemount, 2019). The development and improvement of local attractions such as the Cranberry Marsh trail system, a 600-acre Wildlife Sanctuary, Big Foot Trail, and the Valemount Marina have contributed immensely to visitors’ experience. These recreation amenities help existing entrepreneurs find employees and help attract new entrepreneurs to the area. Figure 5.1: Valemount mountain biking, snowmobiling, and hiking trail system Source: Valemount Recreational Development Association Website In 2007, the Village constructed a new Visitor Information Centre and Interpretive Centre to promote and market tourism and other recreational opportunities (NDIT, 2022). The center also provides a meeting space for local non-profit organizations, a gift shop to display and sell local 81 artworks, and has a collection of exhibits on local history. Annually, the community organizes events and festivals such as the spring mountain bike festival, fall mountain bike festival, and a cross-country mountain snowmobile event, which attracts tourists and amenity migrants (Tourism Valemount, 2022). Figure 5.2: Valemount’s New Visitor’s Information Center Source: The Rocky Mountain Goat, 2020 The visitor’s center serves over 20,000 visitors during the summer seasons. The visitor statistics show that between 2012 and 2017, the number of people who visited the community increased by approximately 40% (see Fig. 5.3). This positions Valemount as a tourist destination for both local and international tourists. However, the Covid-19 pandemic has impacted the industry. Figure 5.3 shows that the community recorded the lowest number of visitors between 2020 and 2021 due to public health restrictions on travel and outdoor activities. 82 Figure 5.3: Valemount - Visitor's Trend 27904 Number of Visitors 30000 25000 23246 22587 19898 20000 23952 22546 23889 18629 15000 8041 10000 4055 5000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year Source: Thesis 2022 Until recently, Valemount’s tourism industry was managed by Tourism Valemount, a select committee, including representatives from the accommodation sector, Chamber of Commerce, and local tourism societies (Keil, 2021a). On June 22, 2021, Council approved the recommendation to transform the Tourism Committee into an autonomous, not-for-profit destination management organization wholly dedicated to tourism (Keil, 2021b) and “accountable to [a] Board of Directors with a strong line of communication with the Council” (Arnold, 2021). The restructuring of Tourism Valemount became necessary given the rapid growth of the tourism industry. Valemount’s tourism promotion and marketing are rooted in a Strategic Marketing Road Map (SMRM). The SMRM was developed in 2008 to “connect current visitors to a greater variety of tourism options; provide more opportunities for local spending; introduce or enhance the perception of Valemount as a tourism destination; encourage loyalty through the Valemount experience – generate repeat visits, referrals; and support Village economic development goals” (Valemount, 2008:1). The 2% Municipal and Regional District Tax (MRDT) collected by the local hotels/motels are used to fund promotion and marketing. Through the Resort Municipality 83 Initiatives (RMI) program, the province provides an additional annual contribution of approximately $50,000 to support the construction and maintenance of local tourism infrastructure and amenities such as the Cranberry Marsh trail system and events like the Mount Robson Marathon (Valemount, 2008). In Tumbler Ridge, many participants reported that the town also pursued tourism development following the first wave of mine closures in the early 2000s. The discovery of dinosaur tracks near Flatbed Creek marked a significant turning point and positioned the town as the richest dinosaur deposit in BC (Hosgood, 2020). In 2001, the District formed the Museum Foundation and, three years later, obtained funding through the federal Softwood Industry Community Adjustment Economic Initiative (SICEAI) to establish the Peace Region Palaeontology Research Centre (PRPRC) as a research branch of the museum (TRMF, 2022). With funding from Western Economic Diversification, the District renovated the decommissioned Claude Galibois Elementary School to house the Dinosaur Discovery Gallery, which further allowed for the expansion of the PRPRC. This interest in paleontological research supported the discovery of the world’s only known fossilized tyrannosaur trackways near Tumbler Ridge (TRMF, 2022). 84 Figure 5.4: Tumbler Ridge Dinosaur Museum Gallery Source: Tumbler Ridge Museum Foundation Website In 2012, a group of volunteers collaborated with the Tumbler Ridge Museum Foundation (TRMF) to apply for membership in the Global Geopark Networks (Morris et al., 2014). The District was officially accepted and designated UNESCO Global Geopark status in 2014, making it the second site in North America to obtain a UNESCO Geopark status, thereby “placing itself on the map as having some of the most significant geological assets in the world” (Morris et al., 2014: 2). The Global Geopark “has over 250 kilometers of hiking trails to 41 geosites, from waterfalls and caves to canyons and mountain summits” (Tumbler Ridge, 2018: 6). The District is surrounded by incredible provincial parks, Gwillim Lake and Monkman, world-class paddling routes, and dozens of waterfalls, earning it the title 'Waterfall Capital of the North' (Hosgood, 2020). Tumbler Ridge has become a 'paradise destination' for a range of summer and winter activities, including cultural and heritage activities, sports activities, and year-round festivals and events such as the Emperor’s Challenge and Grizfest. Tumbler Ridge Mountain Bike Association (TRMBA) is currently developing a mountain biking project to contribute to visitors' experience (Hosgood, 2020). One participant commented that: 85 In 2014, Tumbler Ridge was designated as a UNESCO Global Geopark. Upon receiving the designation, the mayor was so excited and said that this was the best thing that had happened to Tumbler Ridge since the discovery of coal. We knew that this would be a big boost to economic diversification. The discovery of dinosaurs and other fossils tracks was a good tourist attraction opportunity. We also built and maintained hiking trails to attract tourists (Tumbler Ridge Interview 002). In 2015, Tumbler Ridge constructed a new Visitor Information and Interpretive Center to promote the area’s local history and unique attractions (Annual Report, 2015). The District has experienced growth in visitors since the new center was opened. In 2017, the center recorded nearly 15,000 visitors compared to just 2,000 visitors in 2013 (see Fig. 5.4). Tumbler Ridge has several “accommodation properties and recreational vehicle campsites……. several meeting venues and provides other facilities and services including a recreation center, retail shops and restaurants” (Tumbler Ridge, 2018: 8). Figure 5.5: The Newly Constructed Visitor’s Information Centre Source: Visit Tumbler Ridge Website 86 Number of Visitors Figure 5.6: Tumbler Ridge - Visitor's Trend 16000 14000 12000 10000 8000 6000 4000 2000 0 14105 9862 11395 11372 11860 8849 5191 4127 3709 1982 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year Source: Thesis 2022 More recently, Northern BC Tourism, together with the Tumbler Ridge UNESCO Global Geopark Society (TRUGGS), updated the TRUGGS Marketing Strategy and Plan (March 2017) to “promote inbound travel to the TRUGG and the community of Tumbler Ridge, generate new visitation, and increase the length of stay” (Tumbler Ridge, 2018: 9). Furthermore, “the District partnered with the Tumbler Ridge UNESCO Global Geopark to produce a first of its kind joint marketing brand. This brand has been placed on several new informational trailhead signs and the newly developed wayfinding signs within the District” (Annual Report, 2017: 9). Figure 5.7: Tumbler Ridge Global Geopark Geosites 87 Source: Tumbler Ridge UNESCO Global Geopark Website In addition to its tourism initiatives, Tumbler Ridge has positioned itself as a conferencing destination (Tumbler Ridge, 2018). According to the document analysis, the District “is wellpositioned to offer a unique get-away to attendees to experience a real outdoor adventure while conferencing” (Tumbler Ridge, 2018: 13). Recent events held in Tumbler Ridge include NEBC Coal & Energy Forum, Community Forest Association of BC, BC Ornithologists Association, “3D” Drugs, Dinos & Dinner, Tumbler Ridge Medical Conference, and Junior Dragon’s Den (Tumbler Ridge Website, 2022). New Place-Based Resource Development Initiatives The introduction of the community forest concept in BC has helped rejuvenate many rural and remote communities. Many participants noted that Valemount was committed to retaining forestry as a component of its blended economy. As a result, the community “submitted an Expression of Interest for a Community Forest Project to the Minister of Forests in February 1998” (VAEDC, 2000: 65). In 1995, the EDC set up a forestry committee to identify alternative harvesting and management operation to enhance opportunities for job creation through valueaddition and Community Forest Project (VAEDC, 2000). In 1999, the forestry committee 88 completed a forest sector feasibility study and strategy with funding support from the Columbia Basin Trust (CBT) and the Western Economic Diversification Canada (WADC). Figure 5.8: Logging operations around Valemount, BC Source: Valemount Community Forest Corporation Website In 2006, a group of community members and the Village leadership worked together to obtain a community forest license (VCF, 2022). The initiative aimed to “support the local economy, provide timber for the local mill, diversify the economy by providing small wood fiber volumes to new and niche markets, maintain and enhance local recreational opportunities and preserve the natural environment consistent with the blended economy vision” (BHA & WMC, 2004b: 23). In 2007, the Village was granted a community forest license with a twenty-fiveyear renewable tenure, marking a new era of sustainable forest management in the Valemount area (VCF, 2022). The Valemount Community Forest Co. Ltd (VCF) officially commenced operations in 2008, with the Village of Valemount being the sole shareholder. In the first year of operation, the annual allowable cut (AAC) increased from 40,000 m3 to 190,000 m3 to cope with the MPB epidemic. Most recent inventory data shows that the sustainable AAC is 95,406 m3. One participant commented that: 89 Between 2006 and 2007, the town developed a community forest concept because we knew that forest will always be important for our economic development. The plan was that the community forest would supply the local mills with lumber. The Community Forest started with AAC of about 33,000 m 3 and now, has an AAC between 70,000 to 90,000 m3 annually (Valemount Interview 002). In addition, most of the participants reported that the VCF had purchased the ‘old mill site’ and repurposed it as an industrial park with financial support from Northern Development Initiative Trust (NDIT) and Columbia Basin Trust (CBT). Further, the VCF purchased the forest tenure of Carrier Lumber in 2016 and turned it into a Community Forest Agreement. These significant milestones have enhanced opportunities to develop local manufacturing to help strengthen the local economy. On January 1, 2019, VCF was split into two limited partnerships: the Valemount Community Forest (VCF) and the Valemount Industrial Park (VIP). Another participant commented that: In 2014, VCF bought the old Slocan site. VCF is setting up a sawmill using the big lumbers. The community forest reached an agreement with Carrier lumber in 2016 and bought their license. In 2018, VCF undertook an aggressive and expansive lidar mapping project. In the past, the province based sustainable allowable cut decisions on aerial photos. So, VCF spent $300,000 on two separate lidar flights and mapping exercises and presented the results to the province. This led to the increase in the annual allowable cut from 33 and half thousand m3 to 75,000 m3 and, later, 95,000 m3. The new mill has just been connected to the electric grid. Soft start will begin in a few weeks, and full production will start around September. VFC invested about $1.9 million in the sawmill (Valemount Interview 001). 90 Figure 5.9: Valemount Industrial Park Source: Valemount Community Forest Corporation Website 91 VCF has contributed immensely to the town’s economic transition through tourism development, social well-being, business development, job creation, skills training, and education (VCF, 2022). Annually, VCF supports local organizations with $10,000 through the Community Grant program. It also supports specific organizations such as Robson Valley Community Services, Valemount Food Bank, Meals on Wheels, Valemount Community Bus Society, and Firm Foundations Christian Outreach. VCF also provides a bursary of $1000 to support a Valemount Secondary School (VSS) student planning to attend a post-secondary institution upon graduation. In terms of tourism development, it has developed a long-standing relationship with local outdoor organizations, contributing $5,000 to support bike trail maintenance and new trail development. VCF also offers in-kind services for road maintenance in the summer and winter to ensure safe access to tourism products such as the 5 Mile trail, Swift Mountain trail, the Trudeau Trail, and the new Terry Fox Trail (VCF, 2022). In partnership with NDIT and the Village of Valemount, VCF employs a part-time grant writer. In Tumbler Ridge, many participants noted that the expansion of the community forest contributed immensely to the town’s economic transition. Following the mine closures in the early 2000s, the District applied for a Probationary Community Forest License in September 2008 (TRCF, 2022). In January 2011, the District was formally awarded a Community Forest License (K20) (21,000 m3/yr), which allowed for the formation of the Tumbler Ridge Community Forest Corporation (TRCF), which was incorporated in August 2012 with the District as a sole shareholder. TRCF engages in economic diversification by using surplus revenues to support local economic development and organizations. The tenure agreement also ensures that TRFC procures supplies and equipment locally, hires workers from the local community, adheres to sustainable forest management practices, and supplies its logs to local sawmills and wood manufacturers. 92 Due to the devasting impact of the Mountain Pine Beetle (MPB) epidemic, TRCF was approved for a harvest uplift of 300,000 m3 in 2013 and the second uplift of 60,000 m3 in 2016 (TRCF, 2022). In 2017, TRCF was officially approved for a temporary harvest volume expansion from an AAC of 20,000 m3/yr to 37,500 m3/yr (Tumbler Ridge, 2018). It represents an additional annual gross revenue of approximately $32/m3 or $560,000 from TRCF operations, which means increased revenue flow for future community investments (Tumbler Ridge, 2022). Since its inception, TRCF has provided an opportunity for economic diversification and continues to support local employment in operations, management, harvesting, surveying, mapping, planting, and truck services (Tumbler Ridge, 2018). TRCF grant program gives 10% of the gross earnings to support local organizations and their activities (Kenny, 2017). Between 2014 and 2018, 50 grants were awarded to not-for-profit organizations (Kenny, 2018). Also, low stumpage payments have allowed TRCF to build a reserve fund to help sustain the industry in bad times. In addition to community forest initiatives, the case communities have also directed economic diversification attention to other place-based natural resource opportunities. For example, in Tumbler Ridge, the participants commented on the investments in the wind energy sector. Over the past decade, “three wind power operations have set up shop near Tumbler Ridge, employing 145 locals and contributing to the municipal tax base” (Hosgood, 2020). In 2012, Capital Power officially commenced operating its 142-Megawatt (MW) Quality Wind Farm under a 25-year Energy Purchase Agreement with BC Hydro (Hosgood, 2020). Annually, Quality Wind contributes nearly $2.9 million in property taxes, which supports improving the district's infrastructure, roadways, and community services (Capital Power, 2022). The company also supports local organizations such as the Tumbler Ridge Days Society, Wolverine Nordic Mountain 93 Society, Northern BC Crime Stoppers Society, and Tumbler Ridge Minor Hockey. Pattern Energy also commenced operation of its Meikle Wind Project in 2017 (Meikle Wind, 2022). The 180 MW project is the largest wind energy project in BC. Meikle Wind contributes approximately $1.2 million annually to the local economy through operating expenditures, property taxes, community benefit programs, and charitable contributions. The third project, Moose Lake Wind Farm, is a 15 MW wind energy facility developed in partnership with Boralex and Aeolix Wind under a 40-year Power Purchasing Agreement with BC Hydro which commenced operation in early 2019 (Froese, 2019). The other partners are West Moberly First Nation, Saulteau Nations, and the McLeod Indian Band. With over a billion dollars of renewable energy investment, the town has become a hotspot for clean energy production in BC. These investments have contributed to the town’s energy and economic transition. The community has the potential to produce more renewable energy, only if BC Hydro is committed to purchasing the supply. Figure 6.1: Wind Farm near Tumbler Ridge Source: The District of Tumbler Ridge Website 94 In Tumbler Ridge, participants also reported the resurgence of coal mining following the mine closures. In 2016, Conuma Coal bought Walter Energy mine properties in and near Tumbler Ridge. Currently, Conuma Resources Ltd is operating the three surface mines at Brule, Wolverine, and Willow Creek with a combined annual production capacity of more than 5 million tonnes of high-quality metallurgical coal and providing more than 900 direct and 3,000 indirect jobs for residents in the Peace River Regional District (Tumbler Ridge, 2018; Conuma Resources, 2022). Conuma Coal utilizes a new business model that ensures that the company continues to operate in a period of market downturns. Annually, the company spends over $60 million in wages and $250 million on local procurements and services. Figure 6.2: Conuma Coal Wolverine mine operation Source: Canadian Mining and Energy, 2017 Further, HD Mining is developing the Murray River Project near Tumbler Ridge. Beyond job creation, the mining firm has invested over $15 million in residential development for its workforce and over $50 million in local goods, services, and contractors (HD Mining, 2012). In 95 2012, HD Mining signed an agreement with Northern Lights College to train Canadian workers to manage its longwall underground mining operations as part of its training and transition plan. Figure. 6.3: HD Mining Worker Housing Project Source: HD Mining Website, 2022 In Tumbler Ridge, participants also noted that natural gas development provides substantial economic benefits through job creation and property taxes. Currently, three natural gas companies operate in Tumbler Ridge, including Canadian Natural Resources (CNR) Ltd, Pacific Northern Gas (PNG), and Dragon Thermal Technologies. CNR is the largest local employer, with around 30 employees (Tumbler Ridge Website, 2022). In 2018, the oil and gas sector received an additional boost with the approval of the $40 billion Northern BC Liquified Natural Gas (LPG) pipeline construction near Tumbler Ridge. The project has provided economic and employment benefits to the surrounding communities. Innovative and Creative Industries Tumbler Ridge has recognized the changing work pattern and has positioned itself to attract virtual workers and entrepreneurs. Technological advances have made it possible for people to 96 work anywhere, given access to technology, communication networks, and reliable transportation (Tumbler Ridge, 2018). The District has made efforts to enhance its local infrastructure and strengthen support networks to help attract and retain virtual workers. It is retooling its existing fiber-optic network to make it accessible to every residential, commercial, and industrial neighbourhood. Existing home-based workers have taken advantage of the technological advances to market and sell their products online. Many of these virtual entrepreneurs operate in nontraditional sectors such as graphic design, report writing, translation, and transcription. According to the IREDP: Tumbler Ridge recognizes how the virtual worker and entrepreneurs can contribute to the local economy and the importance of entrepreneurship as an option for job creation, economic diversification, and youth retention (Tumbler Ridge, 2018: 11). Valemount has also become a second home for many amenity-seeking counter-urbanites. The migrants usually visit the community for sledding and mountain biking. As stated by one participant: “more people are leaving the cities for small communities where they are connected to outdoor recreation. A lot of people think of them as tourism, but for many people, it is a lifestyle” (Valemount Interview 007). As a result, many amenity migrants own second homes in Valemount due to the local aesthetic appeal of the natural amenities and housing affordability. Having a second home enables them to visit the community for holidays, vacations, and weekends for outdoor recreation activities. 5.3.2 Community Revitalization Transition and change in their historically important natural resource industries spurred attention and investment in community revitalization. A first area of concern was the need to support local businesses and entrepreneurs. In Valemount, many participants reported that the federal government implemented a Self-Employment Benefits Program to support unemployed 97 workers with business ambition and entrepreneurial skills. The program offered skills development, information sharing, business plan development, and coaching support. In addition, small business loans were made available to start-ups with flexible payment terms. The program was administered by Community Futures. However, not all the workers who enrolled in the program were successful because they had limited entrepreneurial, marketing, and promotion skills. In Tumbler Ridge, some participants noted that the District collaborated with Community Futures to implement a Business Engagement Program to assess the business climate by identifying risks and opportunities within the community. The program began with a business retention and expansion (BRE) survey. Community Futures organized a ‘lunch’ and ‘learn’ workshop based on the survey results to enhance small and home-based businesses' marketing and promotion skills. The training focused on product promotion and marketing through online marketing, social media sales, business websites, and the Love Tumbler Ridge website. Northern Development Initiative Trust (NDIT) also organized a Bootcamp to enable the local businesses to prepare and respond to opportunities in ongoing industrial projects. According to the Labour Market Partnership Agreement Report (TRLMPAR): This workshop assists businesses in getting prepared to respond to contract and job opportunities in large projects such as Site C and other industry-related opportunities (Community Futures Peace Liard, 2016: 6). To support existing and new businesses, investment in community infrastructure enhances the adaptive capacity necessary for economic renewable (Markey et al., 2008a). In Valemount, many participants reported that the Village Council initiated a Downtown Revitalization Project to improve visitors’ experiences and stimulate investors’ interest in the community. The project was a partnership between the Village of Valemount, NDIT, CBT, the Federal Government, and 98 Saas Fee Land Development Inc. The federal government supported the project with $600,000 through the Federal Mountain Beetle Epidemic Program (FMBEP) (GOC Website, 2022), while NDIT offered $300,000 in grant support through the Economic Diversification Infrastructure program (NDIT Website, 2022). The project entailed several street improvements, such as new park-style benches, bike racks, planters, and trees (NDIT website, 2022). Roadway improvements included new curbs, street pavements, storm drainage, and a new archway entrance to the downtown area. The project attracted private developments such as a Resort and Spa, which draws vacationers, visitors, young families, retirees, and outdoor enthusiasts to the community. The Village also received $209,440 in federal and provincial funding through ‘Towns for Tomorrow funding’ to revitalize the downtown water infrastructure (BCMCD, 2009). The project allowed “the village to replace aging asbestos cement water mains, improving downtown fire-flow reliability and efficiency” (BCMCD, 2009). These projects have contributed to the Village’s strategic vision of transitioning to a blended and diversified economy. Figure 6.4: Downtown Revitalization Before After 99 Before After Source: CQT Consultants Ltd Website In Tumbler Ridge, many participants reported that the District placed a greater focus on rebuilding the economy through an increase in asset management expenditure to drive economic and business activities. As a result, the municipality changed its purchasing policy to allow more money to be spent locally. The District also worked with the Chamber of Commerce to create awareness of municipal needs to give the local contractors first-hand information about municipal contracts. The asset management plan replaced and repaired all aging assets, constituting “the largest capital replacement plan since the community was built” (Annual Report, 2017: 9). The projects completed include road repairs, pavements, water system repairs, repairs to the curling rinks, blower upgrades, aeration systems, cemetery upgrades, communication system upgrades, and the purchase of twelve new vehicles. One key area of community infrastructure is housing. Providing adequate, affordable, and quality housing helps to “maintain a population level sufficient to sustain and grow the local economy” (Merrill and Kitson, 2017: 13). In Valemount, many participants noted that the Village focused on the provision of housing and accommodation. As a result, a group of community members formed the Valemount Affordable Rental Society (VARS) to provide affordable housing for residents and students. Since its inception, VARS has bought a former motel and two vacant 100 lots next to it and repurposed them into long-term housing. VARS has also completed a 13-unit apartment building to house seniors and families with low to moderate incomes. The project was a partnership between the province, CBT, the Village, VARS, and the federal government. BC Housing supported the project with a grant of approximately $1.34 million through the Building BC: Community Housing Fund (Keil, 2021). BC Housing also provides an annual operating subsidy of $86,000 to support the operations of VARS. Through the Federal Bilateral Canada Community Housing Initiative Grant, the federal government provided $300,000 for the project. Also, CBT offered $169,400 towards the project while the Village waived $25,500 in development costs. As one participant commented: Housing was a significant issue when we started the outdoor recreational program. We had some empty houses because they were second homes to people who came here for tourism. That made us start the Valemount Affordable Rental Society (VARS) with some money from VLS. (Valemount Interview 007) Figure 6.5: A Newly Constructed 13-Unit Apartment Building Source: The Rocky Mountain Goat, 2021 More recently, the Valemount Senior Citizen’s Housing Society (VSCHS) has developed an Assisted/Supportive Living Facility concept called the Valemount Care Project, which 101 comprises residential and supportive services components (Keil, 2021a). The project is a partnership between VSCHS, CBT, BC Housing, the Village of Valemount, Northern Health, Canada Mortgage Housing Corporation, and the Green Municipality Fund. Funding for the residential component of the project has been approved by BC Housing. Also, the CBT Community Initiatives Program (CIP) has approved $86,775.00 for the project. In addition to offering land for the project, the Village is also committing $660,000 from the Northern Capital Planning Grant and $126,500 from the new Trans Mountain Community Benefits Agreement to support the project to enable seniors to age in place (The Rocky Mountain Goat, 2021). Figure 6.6: Architectural impression of the Valemount Cares Project Source: Valemount Senior’s Housing Society Website 5.3.3 Social Capital Many participants also attributed the economic recovery to social capital. Over the years, the residents of the study communities have exhibited an attitude of volunteerism and communal 102 responsibility. This attitude also found expression in the community leaders and their efforts to rejuvenate economic and social life in the community. The local leaders and residents have consistently recognized the communities as their home. In Valemount, the local leaders built strong partnerships and relationships with not-for-profit organizations, the regional district, NDIT, CBT, and the provincial government. Through the agency of the local residents, the VCF and VARDA were formed, which have been instrumental to the community’s success. As one participant mentioned: Through volunteer efforts, we were much stronger than in 2000. The people of Tumbler Ridge recognized that this is a wonderful place to live, to be, and we need to give back and want to see the community thrive. We got some assistance from the district, the regional district, and other funding sources to support all the initiatives, such as the museum, trails, and the Geopark. These were bottomup grassroots initiatives that helped save the town. (Tumbler Ridge Interview 002) Also, one participant noted that the transition recognized the need for partnerships between the District, the province, the Regional District, and the neighbouring First Nation communities. The Northeast BC Resource Municipalities Coalition was formed to promote responsible resource development and maximize resource wealth for healthy community growth (RMC, 2015). The coalition spearheaded the renegotiation of the existing Peace River Fair Share Agreement. The new Peace River Agreement came to effect on May 29, 2015. The purpose of the agreement is to ensure a fair economic benefit to municipalities that provide infrastructure and services to industries outside their boundaries without having the opportunity to tax them. The new agreement provided a level of certainty over industrial tax benefits on a long-term basis for the member municipalities. Locally, many participants indicated that the District advanced a strong interest in building a new relationship with the neighbouring First Nation communities. As a result, the District 103 focused on “establishing a partnership with an area Indigenous community to be part of the opportunity that Tumbler Ridge offers by establishing an Urban Reserve” (Tumbler Ridge, 2018: 35). The urban reserve would spur investor interest in the community, strengthen the residential sector, and increase the workforce for mines and other industries. The District also developed a strong relationship with the Chamber of Commerce, the unions, Community Futures, and other local organizations to enhance local support for the affected workers and their families. 5.4 The Role of the Industry In Canada, the resource industry is a crucial driver of economic development in resourcedependent towns (Stedman et al., 2004). In particular, the resource industry is a primary source of employment in remote resource towns. Traditionally, Valemount was a forest town with about 20% of its population directly employed by sawmills in the Robson Valley (McCracken, 2015). Many residents were engaged in some form of forest management, harvesting, transportation, and manufacturing, while others were employed as loggers and contractors (Markey et al., 2012: Stamm, 2004). The mill offered long-term and stable employment with a livable wage. Beyond forestry jobs, the sector has a spin-off effect on local businesses and services. One participant mentioned that: The Valemount mill was the backbone of the community. It offered the community members decent jobs. The entire community felt disgruntled [when the mill closed] because the mill was the engine of the local economy (Valemount Interview 008). In Tumbler Ridge, many participants commented that the local mining industry was a significant source of industrial taxation and employment. The resource industry offers significantly higher incomes than other sectors of the local economy. Beyond job creation, mining operations have a spill-over effect on the local business sector and general economic activities. In 2011, Walter Energy employed 510 workers at the Willow Creek mine; 416 workers at the Brule mine; 104 and 477 workers at the Wolverine-Perry Creek mine, including contract and temporary employees while Anglo American also employed 350 workers (DeGrace, 2011). During the closure of its Peace River Trend’s mine, Anglo American redeployed some of its workers to other mine sites and funded one of the job fairs to support workforce transition. Conuma Coal has created more than “900 direct jobs and about 3,000 indirect jobs in the Peace River Region” (Conuma Resources, 2022) and planned to inject over “$60 million in wages into the local economy” (Tumbler Ridge, 2018: 9). According to the participants, the Village of Valemount did not realize any tax benefit from the mill operation because it was located outside the municipal boundary. For Tumbler Ridge, the participants mentioned that the mining industry was a significant source of municipal tax revenue. This creates fiscal linkages through infrastructure investments, maintenance of services, and the purchase of goods and services (Wise & Shtylla, 2007). One participant noted that the District draws “about 60% to 70% of its revenue from industrial taxation” (Tumbler Ridge Interview 001). Resource industries also engage in social investments to improve the company’s reputation (Hedin & Ranängen, 2017); maintain good relationships with host communities by obtaining a social license to operate (Jijelava & Vanclay, 2018, 2017); and operate in an environmentally and socially sustainable manner (IFC, 2010). In Valemount, many participants commented that the industrial contribution to social and community investment was relatively minimal. As one participant stated: In the 1970s, Canyon Creek provided logs for the construction of the new hockey rink and also purchased X-Ray equipment for the Valemount health clinic. In the 2000s, Slocan also invested about $75,000 in the children's park equipment and playground. However, the industrial support for community development, infrastructure, and community services declined over time. The companies focused more on maximizing profit for their shareholders than social responsibility in the community (Valemount Interview 001). 105 Participants also noted that the industry did not play any role in skills development and training in the community. However, one of the mill managers (Mr. Don Bennet) spearheaded skills training opportunities for the mill workers and other community residents to enhance their skills for a future transition. As one participant commented: In the 2000s, the province was ready to offer skills training for the mill workers but required the endorsement of the mill company. As the mill company did not want to commit itself for fear of future liability, the manager personally engaged the province to offer the training program based on his professional support for workforce development and transition (Valemount Interview 002). In Tumbler Ridge, many participants reported that the industry invested in human capital development through apprenticeships, skills development, and training. The investments benefited the industry and enhanced the technical skills and capacity of the workers. For example, AngloAmerican partnered with Northeast Aboriginal Skills and Employment Program and West Moberly First Nations to train Indigenous youth in a Mining Fundamentals and Truck Driver Training Course at Northern Lights Community College (Media Planet, 2012). Teck Corporation is currently running a professional development and career exploration program with the Tumbler Ridge Secondary School (TRSS) to create awareness of job opportunities available in the mining industry. In addition, Conuma Coal provides scholarship opportunities to TRSS students to study at university. As one participant noted: There was a lot of attention paid to developing training programs and opportunities through the local college to help people transition into new industries or new roles to continue to be productive to themselves and the community (Tumbler Ridge Interview 005). In partnership with the District, the mining industry invested in community infrastructure projects such as “the Tumbler Ridge Airport Lighting Rehabilitation Project, hockey rink, recreation center, swimming pool, playground rehabilitation, and installation of a new floor at the gym, and the golf course” (Tumbler Ridge Interview 005). In addition, the industry 106 contributed financially towards voluntary-run events such as “the Emperor’s Challenge and Grizfest, sporting activities (i.e. kids hockey game) and the Food Bank” (Tumbler Ridge Interview 004). In support of the town’s economic transition towards eco-tourism development, AngloAmerican and the TRUGGS entered into a 2-year partnership that provided $150,000 in funding to support the Geopark’s education outreach, tourism, and Indigenous programs (Tumbler RidgeLines, 2020). The grant supported new projects, such as the new Geo Interpretive Center, a mobile interpretive trailer, and local exhibit pods. The partnership intended to recognize Indigenous culture and stories through the Geopark, increase educational and community resources and boost support for local tourism through a digital campaign. Finally, the mining industry was committed to environmental responsibility and protection through the BC Peace Northern Caribou Plan. The plan seeks to manage the caribou population in the region while minimizing its socio-economic impacts on First Nations. Anglo American identified the Babcock-Quintette herd as under threat from the Trend-Roman coal project expansion, which was estimated to add two to four million production capacity of metallurgical coal for a 16-year life span. To strengthen its environmental responsibility, Anglo-American donated US$ 2.5 million to the BC Peace Northern Caribou Plan. In addition, Anglo- American secured 2,009 acres of caribou habitat for caribou herd protection. According to Anglo’s Chief Executive Officer: We understand and respect the caribou's importance to First Nations and local communities, and we are proud to play a key role in this environmental management project through our unprecedented securement of 2,009 hectares of caribou habitat and a financial contribution of $2.566 million (Canadian Mining and Energy, 2013). 107 5.5 Transition Challenges Financial resources can significantly undermine economic recovery and diversification (ICURR, 2005). In the last two decades, the province approved two major resort proposals for construction in Valemount. The approval of the projects increased private developments in the tourism industry, including expansion in rafting, ATV-touring, heli-skiing, heli-hiking, dogsledding, and snowmobiling businesses (Nepal, 2008). In the late 1990s, the Canoe Mountain Resort 9 was proposed and approved by the province (BHA & WMC, 2004a). The project was estimated to cost between $80 million and $100 million, which would generate significant tax revenues for the community, 300 jobs during the construction phase, and 165 permanent jobs upon completion (Nepal, 2008). The second major project is the Valemount Glacier Destinations Resort. The project was a community-driven and grassroots initiative that aligned all stakeholders' interests, including the Simpcw First Nations, the province, investors, and the local community (McCracken, 2020). The province approved the Master Development Agreement (MDA), and construction was scheduled to commence in the summer of 2020 and officially open in 2022 (Keil, 2019). The project was estimated to cost around $200M, generate 432 full-time jobs, and increase visitor spending by $139.7 million per year (Oberti Resort Design & Pheidias Group, 2016). The purpose of the projects was to diversify and strengthen the local economy (Nepal, 2008). However, raising capital for projects of this nature in a remote community has become challenging (McCracken, 2020). Concerns over their economic viability have limited investor While the projects received local and provincial support, as well as international interest, the Green Party of BC opposed them as they do not fulfill the principles of social justice, non-violence, gender equality, diversity, sustainability, personal and global responsibility, and ecological wisdom (Dengler, 2013). 9 108 interest in a complex capital market. As a result, the Canoe Mountain Resort was abandoned, while the Valemount Glacier Destinations Resort project is currently stalled, awaiting funding. In Tumbler Ridge, many participants felt that there was a missing link between the provincial transition strategy and funding. As one participant indicated: “the province has a good framework for managing social and economic impacts of industrial closures, but it does not have a pool of resources or a specialized funding stream for communities in transition” (Tumbler Ridge Interview 001). As a result, “the province was moving from one ministry to another to mobilize resources” (Tumbler Ridge Interview 001). The participants also felt that the term ‘communities in transition’ is not clearly defined, making it difficult for the communities to access certain kinds of funding. The same participant noted: “we were denied funding because the province was yet to define communities in transition” (Tumbler Ridge Interview 001). It must be noted that the province and NDIT were instrumental to the community’s success. However, the lack of direct provincial funding for the UNESCO Geopark and the Museum Foundation affected the operation of the organizations. Another participant observed: “the Geopark has not had any direct provincial funding for operating expenses. They have gotten grants for capital projects, but not for operating expenses, which is something the provincial government has not contributed to” (Tumbler Ridge Interview 012). In both communities, participants were concerned about the lack of financial resources to provide community transition services to support unemployed workers and their families. The bureaucratic bottlenecks ingrained in provincial funding processes also undermined the quick implementation of urgently needed programs and projects. Policy change can have unintended consequences by hampering growth and development. In Valemount, the document analysis revealed that provincial policy changes on employment 109 service contracts also affected the transition process. In the last 25 years, the Valemount Learning Centre (VLC) has been the sub-contractor for WorkBC in Valemount. According to a news report: “when the province increased the catchment area for the contract, they were squeezed out. The requirements to bid on this new contract were far beyond this small rural organization’s capacity…… forced to lay-off half of its staff” (McCracken, 2018). The change in the governance structure of the Valemount Community Forest (VCF) also undermined the transition process. The document analysis revealed that Valemount Council made a change in the governance structure of the VCF “by adopting Policy 81, which makes a Councillor and the Chief Administrative Officer (CAO) members of the board and limits who can serve as a director based on new conflict of interest rules” (Jackman, 2021). The board challenged the Council’s decision as unilateral, lacking public input, and not evidence-based. According to a news report, the board contended that: The new policy’s conflict of interest rules will severely hamper the ability of the board to recruit and retain competent and qualified people that the company needs to help successfully steer the company. The board fears the loss of separation between business and politics and the uncertainty the company and the board will face with each new election of Councillors and CAOs. (Jackman, 2021) In Tumbler Ridge, participants revealed that the District changed the management of the Visitor’s Information Centre, which was under the Chamber of Commerce. The District “took it away and gave it to the Geopark…… taking it away affects the financial stability of the chamber” (Tumbler Ridge Interview 004). According to a policy document: The operation of the VIC is under review by the District, and responsibility may move from the Chamber to the Global Geopark. If this happens, the viability of the Chamber of Commerce will be in question with a lack of both human and financial resources. The Chamber would be removed from the tourism. (IREDP, 2018: 41) 110 Access to crown lands for product development was another major challenge. Valemount is surrounded by crown lands. The municipal land base is relatively small, only about 6 kilometers square, and it is cumbersome to secure tenure to develop products or undertake a commercial activity on crown lands. Administrative delays and barriers in the permitting process affect land acquisition in northern communities. One participant commented: There was not enough policy support for land acquisition for product development. The process of obtaining a permit to start a snowmobile tour operation is prolonged and complicated. Insurance for product development is also a challenge (Valemount Interview 002). In addition, “there is a general distrust in the provincial government’s ability to make landuse decisions based on real information and research that consider the interests and value of snowmobiling” (Murphy, 2018: 17). In principle, “everybody supports transition, but the systems and policies still reflect older times and are not adequate for the present time. Access to jurisdictional land is a big issue. The community has a great potential for product development, especially the small business operators if access to crown lands would be made easier” (Valemount Interview 002). Further, many participants felt that the provincial land-use policy favours large corporations to the detriment of small tour operators. In BC, it is easy for the province to grant large tenure to corporations but difficult for small tour operators to access crown lands. As one participant mentioned: The provincial approach to access to crown lands is contradictory. The province gives large tenures to large-scale corporations, but it is tougher for small businesses to obtain tenure. Another contradiction is that the provincial government seeks to promote self-employment but makes it difficult for unemployed people to access land (Valemount Interview 002). Among key internal challenges to economic diversification and transition is the lack of community cohesion around plans of action. Power struggles within communities affect social 111 cohesion, cooperation, collaborations, and partnerships among community members and organizations (Ratner & Moser, 2009; Ledogar & Flemming, 2008; Beckley et al., 2002). In Valemount, the change in the governance structure of the community forest created conflict between the board and the Council. The lack of consultation in the development of the new conflict of interest policy stoked huge misunderstandings between the community leaders and the board. While the board wanted the management of the organization to be devoid of politics, Council wanted to limit the autonomy of the board by making a Councillor and the CAO members of the board. In Tumbler Ridge, participants felt that the disagreement between Council and the Museum Foundation sent mixed signals to potential investors. According to one news report: “a dinosaur museum in the tiny northeast British Columbia community of Tumbler Ridge is facing a struggle against extinction as local politicians and residents feud over funding, operation, and development of the potential tourism gold mine” (Meissner, 2018). In 2018, the District Council cut off funding to the Museum Foundation, causing the non-profit, largely volunteer-run society to shut down. At a regional level, many participants felt that the disagreement between the northern and southern members of the Northeast BC Resource Municipalities Coalition over the Peace River Agreement undermines regional partnership. In principle, both factions agreed on renegotiation but differed on the scope of the document. As one participant noted: “there was a conflict between certain areas of the region in terms of the nature of the document. This led to the fractioning of the municipalities between the northern group and the southern group. They all wanted the same thing, but there were differences in approach” (Tumbler Ridge Interview 005). At the municipal level, “differences in ideas over the drafting of strategic plans generated huge misunderstanding between 112 different committees, community groups, organizations, and volunteers” (Tumbler Ridge Interview 007). Isolation and distance from urban centers limit opportunities to participate in the knowledge and service-based sectors (Rasker et al., 2009). In Valemount, many participants indicated that the community's strategic location and scenic setting provided an option for tourism development; however, its remoteness and distance from larger markets hampered business and resident retention and attraction. Many companies preferred to open up in service-based centers and larger markets. As one participant pointed out: The remote location of Valemount is a huge challenge. It is not a bedroom community with a large center. It does not have medical facilities for people that need to be closer to doctors or hospitals. Unless young families have opportunities economically, it is difficult to attract people to that community. (Valemount Interview 010) In Tumbler Ridge, the remoteness of the community and its northern climate disincentivized entrepreneurship. Also, as is typical in northern communities, Tumbler Ridge “does not have adequate high-speed internet service and does not offer competitive community ambiance offered by many competitive communities and is not connected to a university knowledge complex” (BHA & WMC, 2004a: 14). In northern BC, more housing stock is needed to “maintain a population level sufficient to sustain and grow the local economy” (Merrill & Kitson, 2017: 13). In Valemount, many participants noted limited housing stock as a significant issue undermining population and community growth. The real estate market has fluctuated due to internal and external shocks. One participant stated: “between 2004 and 2008, housing prices increased due to speculations over the proposed Canoe Mountain Resort Project” (Valemount Interview 008). After 2008, Valemount was hit by a double crisis – the mill closure and the global financial crisis that caused the market 113 to bottom out. Recent resource developments coupled with the growing tourism industry and the approval of the Valemount Glacier Destinations Resort increased interest in the real estate market, causing property assessment values to increase by “nearly 30% between 2016 and 2017 - the largest increase in the area in many years” (Nyquvest, 2018). One participant also commented: The community is still facing housing challenges because of the pipeline, but people do not realize that housing was a significant problem before the pipeline even got here. Many businesses and tourists are buying houses that used to be empty. The mountain bike park is growing every year, but we are still not seeing massive growth in housing. Many local businesses struggle for housing for their staff (Valemount Interview 007). A critical challenge facing rural and remote communities is limited human capital (Joseph & Krishnaswamy, 2010). The lack of services, resources, and housing makes it difficult for such communities to attract skilled workers. In Tumbler Ridge, there was a greater focus on human capital development through skills retraining programs, job creation partnerships, placement and redeployment of labour, and self-employment opportunities. However, "many resource workers were not entrepreneurially driven and had no interest in retraining and career change” (Tumbler Ridge Interview 013). The “Community Forest, the mining and wind sectors all indicate a challenge in finding employees and local services to meet their current needs” (Tumbler Ridge, 2018: 5). The lack of infrastructure, incentives, support structures, and favourable policy undermines rural development (Joseph & Krishnaswamy, 2010). In Tumbler Ridge, many participants felt that inadequate infrastructures such as fiber optics and electric power undermined the community’s ability to attract new residents, virtual workers, conferences, and hi-tech industries. As one participant mentioned: We tried to secure funding to capitalize on some of the high-tech industries that would work well in Tumbler Ridge, but that did not come to fruition because we 114 do not have high-speed internet and electric power capacity (Tumbler Ridge Interview 001). The document analysis also shows that: “tax rates for the industry are high but is likely not a major impediment to the growth of the mining industry but could impact the attraction of new industry” (Tumbler Ridge, 2018: 6). In addition, many participants felt that Tumbler Ridge had limited support structures and social services to support the unemployed workers and their families and attract new people to the community. Further, the high housing costs and limited resources for education, health, and other essential services undermined the attraction and retention of people. Another participant noted that: When people were drawn to town, there was insufficient infrastructure such as restaurants, stores, and hotels to support them. It isn’t easy to find affordable building structures or apartments to rent. When the housing market plummeted, many low-income people were placed here, but there were limited resources to support them. Professionals within the health sector, counseling, or the school system keep changing because it is hard to retain them. (Tumbler Ridge Interview 007) 5.6 Conclusion This study draws on key informant interviews and documents to understand the transition of Valemount and Tumbler Ridge following industrial closures. Three major conclusions can be drawn from the findings. First, the mill/mine closures occurred under complex economic, technical, global, and policy environments. In particular, the mill closures were conditioned by the abolition of the appurtenance clause, limited timber supply, the rapid change of ownership, market fluctuations, the softwood lumber dispute, competition from low-cost producing regions, the small size of the mill, and high cost of operation. In contrast, global market fluctuations and financial constraints were the causal factors of the mine closures. 115 Second, three main strategies underpinned the transition process. First, the transition focused on transforming the communities from a one-industry economy to a more sustainable and diversified economy. In Valemount, the economic diversification strategy was anchored on amenity and tourism development, small businesses, amenity migrants and second homes, and community forestry. In Tumbler Ridge, the District focused its on amenity and tourism development, renewable energy generation, community forestry, natural gas development, and innovative and creative industry. Secondly, the communities pursued community revitalization initiatives. In Valemount, the community’s revitalization strategy looked to infrastructure revitalization, improving housing and accommodation, self-employment, and small business support. In Tumbler Ridge, the community revitalization entailed municipal capital asset management and a business engagement program. Finally, progressive local leadership, bottomup grassroots initiatives, communal responsibility, voluntarism, and provincial and regional partnerships were crucial to the communities’ success. Third, the analysis showed that companies’ involvement in local economic development has changed over time. The study highlighted four main contributions of the industries to local economic development. The resource industries helped strengthen the local economy through employment and taxation. While the mill company had no tax obligations towards the Village of Valemount, the mining companies were contributing between 60% to 70% of the municipal tax revenues. Also, the industry’s contributions to social and community investment were limited to community donations and skills development and training. Despite the many successes, several factors undermined the transition process. First, the lack of financial resources hindered significant economic opportunities and the ability of some community organizations to deliver services in the communities. Second, the change in provincial 116 and local policy decisions affected the revenue base of some community organizations. Conflict between the local government and important voluntary-based economic organizations was problematic and undermined the transition. In addition, the disagreements within the Northeast BC Resource Municipalities Coalition over the Peace River Agreement undermined regional partnership efforts. Third, provincial bureaucracy and regulatory processes hampered land tenure acquisition by small tour operators. In addition, the lack of affordable, adequate, and good-quality housing affected business and resident attraction and retention. Lastly, human capital constraints, a lack of infrastructure, and high industrial tax rates affected the community’s ability to attract new residents, virtual workers, conferences, and the hi-tech industry while limited support structures, resources, social services, and incentives undermined community attractiveness. 117 Chapter 6: Discussion of findings 6.0 Introduction This chapter discusses the research findings by linking the key themes with the literature. The chapter is divided into four sections. The first three sections answer the research questions. The first section examines the economic transition pathway adopted by the study communities and suggests a move towards a place-based development path. The second section explores the transition objectives and indicates the transition focused on achieving economic diversification and sustainability. The third contextualizes the changing role of resource industries in local economic development. Finally, I compare the case studies by drawing upon the transition process, strategies, and outcome. 6.1 Moving Towards Place-Based Development Path The economic transition of Valemount and Tumbler Ridge is characterized by a placebased approach to economic development (Markey et al., 2012). This study draws upon the concepts of community economic development (CED), new localism, and local capacity to understand the shift towards place-based development. Across northern BC, de-industrialization has shifted the focus from reliance on (exogenous) ‘space-based development’ to locally-driven (endogenous) ‘place-based development’ (Markey et al., 2012), which has been described in other studies as a shift from productivism to post-productivism (Gosnell & Abrams, 2011; Troughton, 2005; Wilson, 2004; Reed & Gill, 1997); comparative advantage to competitive advantage (Markey et al., 2012; Markey et al. 2008; Kitson et al., 2004); and Fordist to Post-Fordist economic structure (Markey et al., 2012; Markey et al. 2008; Kitson et al., 2004). This new economic trajectory de-emphasizes reliance on staple commodities in favour of a more diversified economic structure (Howlett & Brownsey, 2007; Kitson et al., 2004) based on the commodification of 118 natural, cultural, and social values of ‘place’ (Markey et al., 2006). As such, place-based development recognizes the importance of both quantitative (i.e., physical infrastructure, production, location, etc.) and qualitative (i.e., social capital, innovation, institutions) considerations in economic development planning (Markey et al., 2006; MacLeod, 2001a). My research found that the study communities have transitioned from staples path dependence to an emerging place-based development trajectory. Transitioning toward place-based development attracts and retains workers, firms, and capital, which have become increasingly mobile (Kitson et al., 2004). In Valemount, the economic transition is underpinned by an amenity and tourism industry, self-employment and small business development, amenity migrants and second homes, and the community forest project. In Tumbler Ridge, the emerging economic trajectory is anchored on the amenity and tourism industry, the community forest project, creative and innovative industry, and wind energy generation. From the study results, amenity and tourism development appear to be the key elements of the economic transition path of the study communities. While Tumbler Ridge’s amenity and tourism industry was primarily hinged on the UNESCO Geopark, Valemount has been keen on developing its outdoor tourism activities (i.e., winter and summer outdoor adventure). The amenity-and tourism-driven economy was a locally-driven initiative with external support. Funds provided by external stakeholders contributed to the success of the emerging amenity-and-tourismdriven economy. Boerchers et al. (2016) found that externally sourced funds enabled the implementation of a locally-driven strategy. Thus, external assistance is necessary for small-town economic transition (Mitchell & O’Neill, 2017; Martin, 2012; Markey et al., 2012; Markey et al., 2008). 119 Of paramount consideration to a place-based economy is the concept of community economic development (CED) (Markey et al., 2008). CED has become particularly popular in resource towns due to state withdrawal and neoliberalism (Bruce, 2003), the desire for locallydriven initiatives (Markey et al., 2005), and local empowerment and control over development (Markey et al., 2007). In Tumbler Ridge, the emerging amenity-driven lifestyle, the local environment, and the booming resource sector have given rise to creative and innovative industries (Chang, 2017; Dissart, 2014; Florida, 2014, 2002; Petrov, 2008). These industries build on “preexisting local economic and technological structures, knowledge, and competencies” (Martin, 2010: 21) and the community’s “vital heritage” (Steen & Karlsen, 2014: 134). The shift to a place-based economy has close links with the concept of ‘New Localism’ (Nel et al., 2019), which is predicated on the devolution of power, functions, and resources from the state to local levels (Evans et al., 2013). In other words, ‘New Localism’ is grounded in the notions of local management, representation, and empowerment. New Localism recognizes the importance of local resources, labour, political cultures, and decision-making in defining the role of the local community in a competitive global economy (Besser, 2013). For Clarke (2013: 492), localism involves the “struggles to produce locally scaled action, including projects of local autonomy and self-sufficiency.” Thus, the notion of New Localism offers a conceptual understanding of the community forest initiative. The successful implementation of the community forest initiative highlights emerging governance regimes within BC. The participation inherent in this governance regime fosters a sense of ownership over decisions and resources, that may not have existed under previous topdown regimes (Markey et al., 2008a). As such, place-based development instills a sense that placebased assets are local and may be used to meet local economic needs. Thus, the project reiterates 120 calls to re-map the lines of accountability and control, away from centralized state power to diverse local and extra-local actors and institutions (Markey et al., 2008a). The initiative is anchored on sustainable forest management principles, which stem from the notion of community empowerment, local management, and local governance of forestry resources (Ambus & Hoberg, 2011). The concept of the community forest has been described as an innovative model of devolution (Haley & Nelson, 2007); civic participation (Bullock & Hanna, 2008; Reed & Mcllveen, 2006); civic boosterism, and public-private partnerships (Harvey, 1989); broad public engagement, accountability, and transparency (Kersting et al., 2009); and emerging neoliberal paradigm in local environmental governance (Pinkerton et al., 2008; McCarthy, 2006). In BC, “the degree of authority devolved from the Ministry of Forestry to communities is largely restricted to operational decisions affecting on-the-ground aspects of timber harvesting” (Ambus & Hoberg, 2011: 945). In this regard, the community forest is a collaborative initiative enabled by the Ministry of Forestry but implemented by the local municipalities (Mitchell & O’Neill, 2017, 2016b). The concept of the community forest is in sync with the regional place-based governance (McAllister et al., 2014; Bradford, 2005) and collaborative and co-constructed development (Markey et al., 2012). Through funds provided by the Northern Development Initiative Trust (NDIT) and the Columbia Basin Trust, the Valemount Community Forest is moving to establish a community-based sawmill operation. While the communities continue to pursue economic diversification, resource extraction remains their primary economic activity. In Tumbler Ridge, “the return of industrial capitalism” (Mitchell & O’Neill, 2017: 34) has led to the re-emergence of a space-based trajectory (e.g. coal mining, wind energy generation). Following Mitchell (2013), the return of industrial capital can only lead to one of two scenarios; whichever emerges will be determined by the spatial position 121 of the mining activity and the wind farms, as well as the municipality’s marketing focus (Mitchell, 2013). First, creative destruction (Schumpeter, 1944) will arise if the return of a “space-based functional trajectory (mining and wind energy generation)” (Mitchell & O’Neill, 2017: 34) is followed by the truncation of the town’s place-based development path (Ryser et al., 2018; Halseth et al., 2017; Markey et al., 2008). This will occur if the coal mining activity compromises the town’s amenity-and-tourism-based economy (Robertson, 2006) and leads to the abandonment of the transition initiatives. Second, the above scenario may be avoided if the coal mining and wind farms are spatially separated (Mitchell, 2013) from the recreational areas and the timber harvesting area. Also, creative destruction may be avoided if the town continues to market its outdoor amenities and creative and innovative industries. Mitchell (2013) described this scenario as creative enhancement since the town’s reputation as a tourism destination, a diverse economy, and a sense of place will be retained. The resultant “functional addition” is thus, preferred over “functional displacement” (Mitchell, 2013: 383), given the boom-and-bust cycles associated with the extractive industry and the consequences of reliance on a single development path (Hayter, 2000; Lucas, 1971). In the last few decades, there has been a move away from top-down approaches to bottomup, territorial approaches to development that utilize human and social resources (Sisto et al., 2018). The focus of such ‘endogenous’ approaches has, in part, been facilitated by the shift from traditional levels of government to a new system of ‘governance’ in which institutions and social relations better utilize the endogenous local capacities (Furmankiewicz et al., 2010). Rural revitalization enacted through interactions of community members and groups within a social network is fundamental to bottom-up development (Newman & Dale, 2005) and to the generation of new knowledge, a critical factor in rural creativity (Sawyer, 2007). The relationships of trust 122 and reciprocity formed within a community through voluntary and social groups (Portes, 1998), as well as relationships with external actors and agencies on the basis of partnership and collaborations (Granovetter, 1982), can help generate social capital and cohesion (Cuthill, 2003) which are fundamental to community change (Newman & Dale, 2005). In smaller communities with strong bonding ties, voluntarism and social groups are driven by a desire to foster and build social capital (Reddel & Woolcock, 2004). Bridging relationships can promote new knowledge that stimulates innovation and economic transformation (Newman & Dale, 2005; McCann, 2001). Thus, leveraging existing strong ties (bonding relationships) within the community and the creation of new ones with the return of the 30 families (bonding and bridging relationships) increased community capacity by adding new knowledge and skills (Granovetter, 1982), as well as uncovering rural resiliency and creative talents that have always hidden within paternalistic institutional relationships. In Tumbler Ridge, local actors such as the community leaders, the local Chamber of Commerce, Community Futures, the Tumbler Ridge Museum Foundation, and the Tumbler Ridge UNESCO Global Geopark Society (TRUGGS) exercised a high level of agency to ensure that the community survives. The District collaborated with neighbouring First Nation communities to establish an urban reserve and externally with the provincial government, NDIT, and the Northeast Resource Municipal Coalition to ensure constant financial resources. In Valemount, the communal responsibility, resiliency, and the commitment of the local leadership, as well as the voluntary spirit of not-for-profit tourism societies (i.e., VARDA and YORA), and the Chamber of Commerce, are an expression of “how and why some localities can adapt and exploit opportunities” (Collinge et al., 2010: 367). As Terluin (2003) noted, capitalizing on endogenous 123 strengths, social capital, the not-for-profit sector, and local and regional partnerships are critical in achieving social and economic transformation. Place-based economic transition recognizes the importance of strategic investments in social and economic infrastructure (Markey et al., 2012; Markey et al., 2006). As Markey et al. (2008a) noted, the renewal of community infrastructure fosters the long-term adaptive capacity necessary to construct and maintain competitiveness within a place-based economy. In rural and small-town places, social and economic infrastructure provides a crucial foundation in periods of economic adjustment (Markey et al., 2012). In partnership with regional development organizations (i.e., NDIT and CBT) and the provincial and federal governments, the community leaders were committed to retooling, expanding, and building new community infrastructure to support a diverse economy. In Valemount, there was a commitment to improve the housing stock, construct a new Visitor’s and Interpretive Center, revitalize the downtown core, and upgrade the water mains. Tumbler Ridge also focused on replacing its aged-old capital assets and constructing a new Visitor’s Information and Interpretive Center. Positive implications of investments in community infrastructure include improved quality of life (Moore et al., 2006); increased community capacity (Nelson, 2006), creates a new place identity (Hiner, 2016); stimulates the local economy (Hall & Müller, 2004); as well as attract and retain people and economic activities (Markey et al., 2008). Thus, the intersection of local capacity, infrastructures, and social capital underlies a community’s ability to respond to and navigate economic disruptions (Hayter & Nieweler, 2018). During Fordist-Keynesianism, economic development was exogenously driven with local planning subservient to the needs of the resource-based economy (Hayter & Nieweler, 2018). Local planning was limited to local administration and service provision, with little or no focus on 124 policy and economic development (Cullingworth, 2015). In contrast, global change has necessitated a transition to development approaches (Bevir, 2012) which is “no longer hierarchically orchestrated and structured” but rather “increasingly dependent upon locally proactive behaviour including by local governments” (Hayter & Nieweler, 2018: 83). My thesis confirmed that Valemount was proactive in its development planning while Tumbler Ridge’s planning was a reactive response to the first mine crisis. Place-based development planning involves the assessment of economic and social needs that allows policy formulation based on local circumstances and place-specific features (Shorten, 2003). Planning for rural development in an integrated manner helps ensure that economic development contributes to rural sustainability and diversification. The planning process in both communities reflects an integrative approach to establishing community vision and development priorities with the involvement of top-down and bottom-up actors, as well as citizenry participation (Markey et al., 2010; Parkinson & Roseland, 2002; Mercer & Jotkowitz, 2000; Sharp & Elkins, 1991). While local implementation of development strategies is crucial (Vogel, 1990), external assistance can boost local efforts (John et al., 1988). 6.2 Moving Towards A Diversified Economy Mines and mills have dominated the economic space of many northern communities for years (Walisser et al., 2005). Resource dependence has left many communities vulnerable to economic shocks. Meanwhile, many resource-dependent communities have limited options for charting a new economic path in the wake of industrial restructuring (Suutarinen, 2013). In light of this, economic diversification has become a central focus as many resource towns (Burnett & Brunelle, 2019; Clemenson, 1992; Fletcher et al., 1991) seek to better position themselves to mitigate economic risk or leverage new economic opportunities (Page & Beshiri, 2003). However, 125 long-term economic transformation depends on the ability of communities to chart a new economic path (Martin & Sunley, 2015). Several state or locally-driven initiatives have been advanced to create alternative employment and economic activity (Cooke, 1995). However, not all old industrial regions have recovered from economic disruptions despite the abundance of ideas on alternative strategies for economic diversification (Binns & Nel, 2003; O’Faircheallaigh, 1992; Nygren & Karlsson, 1992). The literature demonstrates that successful and sustainable economic revitalization has occurred in places where there was a high degree of social capital, local capacity, natural resources, institutional thickness, and accessibility to senior government support (Halseth et al., 2017; Markey et al., 2012; Markey et al., 2008, Viken et al., 2008; Halseth, 2005; Cabus, 2001; Stohr, 1990; Amin, 1999; Bebbington & Perreault, 1999). In addition, Hayter and Nieweler (2018) emphasized the importance of long-term planning in achieving a sustainable and diversified economy. In line with this literature, the study communities have achieved a considerable level of economic diversification due to the critical role played by the local actors (i.e., community leaders, voluntary not-for-profit organizations, regional development organizations, etc.) and senior governments. The analysis shows that the local governments played a lead role in building a flexible economic foundation based on local assets and sound economic strategies. For example, in Tumbler Ridge, the local leaders spearheaded economic planning initiatives, municipal capital asset replacement, and business retention and expansion to help strengthen the local economy. In Valemount, the local leaders were keen on effective economic planning, downtown revitalization, and attracting new industry into the community. Voluntary-run organizations such as the Tumbler Ridge UNESCO Geopark Society (TRUGGS) and the Tumbler Ridge Museum Foundation 126 (TRMF) have been critical in managing the diverse geosites and tourism opportunities in the community. For Valemount, not-for-profit tourism societies such as Valemount Recreation and Development Association (VARDA) and Yellowhead Outdoor Recreation Association (YORA) were instrumental in creating, managing, and maintaining different tourism products. Concerning senior governments, the provincial government advanced a strong focus on supporting the towns’ economic diversification initiatives by providing funding and policy support. In Valemount, the province supported initiatives such as the downtown revitalization project, the construction of the new Visitor’s Information Center, the community forest project, and the self-employment benefit program. In terms of policy support, the Municipal and the Regional District Tax (MRDT) and Resort Municipality Initiatives (RMI) have been significant boosters to the local tourism industry. The federal government funded the forest sector feasibility study and strategy and the downtown revitalization project through the Western Economic Diversification. In Tumbler Ridge, the province awarded and expanded the community forest tenure, expedited the approval process for the wind power projects, and offered financial support for various tourism products and infrastructure (such as the mountain biking trails) and worker transition support (i.e., job creation partnership program and labour market partnership program, etc.). Federal supports also came through the Softwood Industry Community Adjustment Economic Initiative (SICEAI) and Western Economic Diversification to establish the Peace Region Palaeontology Research Centre (PRPRC) and the Dinosaur Gallery Centre. Miller (2000) noted that collaboration with the government should focus on financial, legislation, and policy support. Triangulation confirmed that the towns’ economic transition planning focused on economic diversification and sustainability. For Valemount, the primary objective was “to promote 127 diversification of the economy through the development of complementary industry and tourism, and through the continued support of established business to enhance the quality of life of the community” (VAEDC, 1994; 11). This policy goal has been echoed in all successive strategic plans (see VAEDC, 2000: 39; BHA & WMC, 2004a; CS, 2013). In particular, the Valemount Vision 2020 – Implementation strategy envisioned “a dynamic and successful place with a multifaceted, blended economy, based primarily on tourism, resort, and real estate development, as well as continued forestry” (BHA & WMC, 2004b: 1). In Tumbler Ridge, the objective was to “promote the diversification of the local economy away from significant dependence on coal mining by supporting the development of projects pertaining to education, tourism, alternative energy, oil and gas, other types of mining, forestry, and other sectors deemed appropriate” (Tumbler Ridge, 2012: 55). The community sustainability plan reiterated this policy goal of establishing “a broader and more diversified economic base” (Morris et al., 2014: 1). The analysis suggests that the town has achieved economic success between the two periods of economic crisis. While coal mines remain the largest employer (Halseth et al., 2017), the town has strengthened and diversified its economic base through the development of projects in natural gas, wind power, community forestry, an amenity and tourism industry, and creative and innovative industry. In line with the objective above, Valemount’s economic diversification has also been supported by its community forest. The VCF has gone a step beyond the typical community forest to establish a Valemount Industrial Park (VIP), which has enhanced opportunities to develop local manufacturing to help strengthen the local economy and expand job creation. Beyond job creation and forest stewardship, VCF has leveraged its community grant program to foster tourism 128 development, social well-being, business development, skills training, and education (Jackson & Illsley, 2006; Shooling & Cumming, 2005). For Tumbler Ridge, the community forest has also contributed to the town’s economic diversification and revitalization. The town was awarded a community forest license following the first wave of mine closures. The expansion of the community forest generates more revenues to support local economic development, job creation, and local organizations. The company has established a grant program to support local organizations and has helped local businesses through local procurements and the supply of logs to local sawmills and wood manufacturers. My analysis found that Valemount has capitalized on its proximity to national and provincial parks, strategic location on Hwy #5 and #16, scenic beauty, and outdoor recreation opportunities to chart a new economic trajectory (Mitchell & O’Neill, 2017, 2016b). Through voluntary-run events such as the spring mountain bike festival, the fall mountain bike festival, and the cross-country mountain snowmobile event, Valemount has become an annual destination for tourist enthusiasts and amenity migrants (Moss, 2006; Law, 2001). The counterurbanites, amenity migrants, second-home residents, and pleasure-seeking tourists form the basis for stimulating the local economy (Chang, 2017). High-quality amenities and an aesthetic natural environment have become critical determinants of seasonal, intermittent, or permanent residential decisions (Moss, 2006). As a result, the town has transitioned from an industrial landscape to a “leisure escape” where leisure and recreation functions underpin the town’s development (Law, 2009: 351). Similarly, Tumbler Ridge has cultivated an image as a tourist destination and amenitydriven economy upon attaining the UNESCO Global Geopark status. In collaboration with the PRPRC, the local museum organizes a BC Dinosaur Discovery Gallery as part of a year-round educational and tourist attraction, week-long dinosaur camps, and daily tours for visitors (Jackson 129 & Illsley, 2006). In addition, the District has extensive snowmobile, cross-country skiing, and a network of hiking trails linked to the 41 geosites (TRUGG, 2020; Jackson & Illsley, 2006). Morris et al. (2014: 2) noted that “through volunteer-run events, such as the Emperor’s Challenge and Grizfest, Tumbler Ridge has established itself as an annual destination for many adventure athletes and music lovers in the region.” Numerous studies have underscored the importance of amenity-and-tourism-based industry in transitioning resource towns (Campbell & Coenen, 2017; Michell & O’Neill, 2017, 2016b; Nepal & Jamal, 2011; Milne & Ateljevic, 2001). The aesthetic natural environment, recreational opportunities, cultural richness, and social amenities attract a wide range of amenity migrants, retirees, and tourists (Chang, 2017). The spillover effect of the amenity-and-tourismbased industry will lead to growth in sectors such as retail, real estate, health care, creative industries, and other professional services, contributing to the local economic transition. An amenity-and-tourism-based economy generates economic options and sustains local economic viability (Power, 1996). Although tourism development alone is not a panacea for an economic crisis, it can be a vital strategy to diversify and strengthen the economic base (Milne & Ateljevic, 2001). Tumbler Ridge has seen significant investments in the wind energy sector, contributing to economic diversification. Between the two waves of economic crisis, the town has witnessed the construction of three wind power projects (i.e., Quality Wind, Meikle Wind Project, and Moose Lake Wind Farm), employing about 145 residents and contributing to the municipal tax base. These investments have contributed to the town’s energy and economic transition. In addition, development in the natural gas sector also provides substantial economic benefits to the 130 community through job creation and property taxes. The construction of the Northern BC Liquified Natural Gas (LPG) pipeline will also bring additional economic benefits. Further, recent studies have noted the importance of creative and innovative industries in regional transformation (Zamyatina & Pelyasov, 2016; Freire-Gibb & Nielsen, 2014; Petrov, 2011). For Tumbler Ridge, creative and innovative industries (i.e., virtual work and entrepreneurship, and conference destination) were other forms of economic diversification. Over the last decade, Tumbler Ridge has positioned itself to attract virtual workers and entrepreneurs. This industry thrives in an environment with “pre-existing local economic and technological structures, knowledge, and competencies” (Martin, 2010: 21) and strong local infrastructure and support networks. The newly built conference/theatre facility extension to the existing community center provided a large auditorium to host conventions and cultural events. Currently, the District is retooling its existing fiber-optic network to make it accessible across the townsite. Tumbler Ridge has also capitalized on its tourism opportunities and outdoor recreational adventure to position itself as a ‘conferencing destination’. This is an innovative program (Zamyatina & Pelyasov, 2016; Freire-Gibb & Nielsen, 2014) that allows attendees to experience outdoor adventure while conferencing. The program also provides new markets for existing businesses. 6.3. Economic Change I draw upon economic and population measures (Halseth and Sullivan, 2002) to assess the transition outcome. Using a mixture of economic and population variables provides a useful framework for systematically tracking the impacts of economic change. First, I utilized the percentage of total employment by industry. The data was drawn from the Statistics Canada Census. For Tumbler Ridge, the data shows that the local economic structure has changed. Despite the importance of mining to the community, direct mining employment has been steadily declining 131 since 2001. This was mainly due to the mine closures in the early 2000s and 2014 (see Appendix J). While mining employment has a cyclical impact, the tourism industry (i.e., accommodation, food, and beverages industry), retail trade, logging and forestry, manufacturing, and utility employment have steadily increased due to the town’s economic diversification efforts. Similarly, Valemount’s economic structure has changed. The dominant forestry sector has been declining since the 1990s due to production curtailments and mill closures (see Appendix I). The tourism sector is currently the top employer in the community, supported by logging and forestry, construction, retail trade, and transportation and warehousing. Second, I utilized population data to understand the impact of the economic renewal on population change. Tumbler Ridge’s population declined significantly due to the two periods of crisis (see Table 4.1). With the return of industrial capitalism and a diversified economy, the town has seen population recovery and stabilization between the last two censuses. Similarly, Valemount experienced negative growth (see Table 4.3) due to the production curtailments, outmigration of the ‘echo’ generation, and the closure of the last sawmill. The rebound of economic activities has stabilized the town’s population. This study further corroborates the findings of a wide range of studies focusing on rural and small-town economic restructuring and post-industrial economic transition. First, this study confirms the pattern of economic transition from the dependence on the primary sector (i.e., agriculture, fishing, forestry, or mining) to a diversified economy based on service-oriented economic activities (Rudzitis et al., 2014; Nepal & Jamal, 2011), tourism (Bainton & Holcombe, 2018; Mitchell & O’Neill, 2017, 2016b; DeLyser, 1999; Edwards & Coit, 1996; Jussila & Järviluoma, 1998), small enterprises (Keyes, 1992), or the creation of new economic orientations and livelihoods (Hudson, 1995). Second, this study supports the view that rural economic 132 diversification tends to succeed in regions where ‘place’ and the local environment are at the center of economic planning (Johansen & Skryzhevska, 2013; Jussila & Järviluoma, 1998). Third, this study can attribute successful and sustainable economic revitalization to a high degree of social capital, local capacity, natural resources, institutional thickness, and senior governments’ support (Halseth et al., 2017; Markey et al., 2012; Markey et al., 2008, Halseth, 2005; Cabus, 2001; Stohr, 1990; Amin, 1999; Bebbington & Perreault, 1999). Finally, the results also identify that traditional resource industries can be both superseded by, and co-exist with, an emergent amenity-andservice-driven economy (Mitchell, 2013; Wilson, 2001; Power, 1996). Although the study communities have achieved a measure of economic diversification, their transition was mired by several challenges. Regarding Valemount, community participants and triangulation confirmed the following challenges inhibiting economic diversification. First, the lack of funding for mega projects in a remote northern hinterland led to the abandonment of the Canoe Mountain Resort and the Valemount Glacier Destinations Resort projects. As a result, Nel et al. (2003) suggest that transitioning resource towns should focus on small business enterprises rather than pursuing the elusive prospect of mega-projects. Second, the provincial landuse policy reflects an out-dated approach to resource development which favours large corporations to the detriment of small local businesses. In their respective studies, Halseth (2005) and Markey et al. (2009) noted that successive BC governments have often focused on large-scale resource development policy to the detriment of rural economic diversification. Third, the bureaucratic bottleneck and red tape embedded in the land acquisition process undermine rural economic diversification. Fourth, local conflict and debate can undermine transition. Further, the remoteness and distance from larger market centers could hamper business growth. Thus, opportunities for economic diversification are often constrained by geography (Bainton & 133 Holcombe, 2018; Rasker et al., 009). Lastly, limited housing stock undermined opportunities for economic revitalization and development (Merrill & Kitson, 2017). Despite the tremendous economic success, Tumbler Ridge is still faced with challenges. First, the lack of direct provincial funding for the UNESCO Geopark and the Museum Foundation undermines the operations of the organizations. It affects their ability to hire staff to steer the organizations and procure the necessary logistics for their operations. Second, local conflict dampens investors’ confidence in the community. Third, the inadequate human capital also affects the local industries in meeting their workforce needs. The narrow skills base limits the chances of successful economic diversification (Markey et al. 2008b; O’Faircheallaigh, 1992). Lastly, the lack of adequate infrastructures such as fiber optics and electric power undermines the community’s ability to attract new residents, virtual workers, conferences, and hi-tech industries. 6.4 Contextualizing the Changing Role of Resource Industries in Local Economic Development Prior to 1980, government and resource companies engaged in a paternalistic institutional arrangement for resource extraction (Martin, 2012: Prudham, 2008a). The resource town literature provides accounts of how resource companies and the government played an integral role in resource development and community life (Markey et al., 2008a; Houghton, 1993). Community members and local government officials confirmed that companies were closely involved in community governance, local decision-making, and service and infrastructure provision. The companies were required to provide social and economic infrastructure (i.e., housing, streets, schools, transport, hospitals, and recreational facilities) to attract and retain workers and their families (Quark, 2007; Houghton, 1993; Bowles, 1982; Lucas; 1971). 134 The paternalist era also played an essential role in shaping community capacities, expectations, resources, social cohesion, social capital, and local institutions (Martins, 2012). While the degree of company involvement differed by community, the paternalist era shaped physical and social structures (Bradbury & St-Martin, 1983). In Tumbler Ridge, resource companies were responsible for the community’s economic vitality in terms of providing community infrastructures such as housing, recreational facilities, and services (Halseth et al., 2017; Halseth & Sullivan, 2002). In Valemount, several different companies contributed to and supported individual projects. Under paternalistic corporate control, many communities failed to develop “factors that contribute to community sustainability, such as volunteerism, entrepreneurship, and local leadership” (Teitelbaum et al., 2003: 172). This is because external actors were primarily responsible for local decision-making regarding the community and workers, thereby hampering the development of the local entrepreneurial class (Barnes et al., 2001). The dependence of the communities on extra-local elites for capital, expertise, and direction also created an unconducive environment for local entrepreneurs (Gunton, 2003a, 2003b). This study found that the industrial closures effectively led to a significant loss of prominent community members who were leaders of key community organizations or community initiatives, whose departure undermined the effective functioning of those organizations. The absence of diverse local entrepreneurs and the dependence of local leadership on extralocal elites limited community capacity to diversify the local economy (Hayter, 2000a; Freudenberg, 1992). In terms of local development, the history of resource towns tends to create a community culture and economy entrenched in resource extraction (Martin, 2012). While many communities are transitioning from resource path dependence, the resource town literature 135 suggests that community culture continues to support industrial resource development to the extent that local economic development strategies remain focused on resource development (Stefanick, 2001). Martin (2012), therefore, suggested the need for local entrepreneurs and local leaders to create a culture of proactive planning. Bryden and Munro (2001: 115) noted that local entrepreneurs can play an essential role in creating value out of local assets such as culture, environment, and landscapes. Community expectations regarding company involvement and obligations were also shaped by paternalism (Martin, 2012). Community participants used this period as a benchmark to determine acceptable or desirable levels of company involvement, participation, and support. This era was used as a reference point because it provided higher and more diverse support than current levels of support. For instance, communities considered companies as good corporate citizens if their level of support was commensurate with this era. Companies whose support does not match this era were deemed less socially responsible. In the paternalistic era, key company employees played a crucial role within communities. Local managers and key company employees in each community were closely involved in community governance, voluntary works, service provision, and community affairs. Martin (2012) argued that company employees are involved in community activities for three main reasons. First, the local managers and key company employees were community-oriented and, therefore viewed their involvement as a necessity and commitment to the profitability of capital. Second, they were part of a few residents with the requisite skill-sets and expertise to perform community functions. Third, they were involved in community affairs to ensure the provision of adequate services and to suppress community opposition, that may arise. Few studies have addressed the role of local managers in community affairs relative to company policy (Hayter, 2000b; Marchak, 1983). 136 The adoption of neoliberal policy following the 1980 recession altered provincial resource development policy and redefined community-company relationships (Harvey, 2005; Peck & Tickell, 2002). Since the 1980s, the province has witnessed considerable economic restructuring, which marked a significant turning point in the relationships between government, companies, and communities (Markey, 2010; Halseth & Sullivan, 2002; Barnes et al., 2001). This study attributes the gradual retrenchment of companies to this era of economic restructuring. In BC, this was described as a shift from (state-centred) Fordist-Keynesianism towards a (decentralized) PostFordist Neoliberalism (McCarthy, 2006). In the BC forestry sector, neoliberalism has been broadly characterized by liberalizing markets, forest tenure, and processing activities (Young & Matthews, 2007). These processes have effectively led to rationalization and concentration of production (Martin, 2012), a shift towards lean and flexible production (Barnes, 2005), and a focus on productivity and profit maximization (Martin, 2012). Flexible production necessitated the adoption of labour-shedding technologies that reduced the number, stability, and quality of local jobs (Holmes, 1997; Mackenzie & Norcliffe, 1997; Preston et al., 1997). Similarly, Hayter and Barnes (1997: 196) found that: The re-articulation occurring between mills and their associated communities in British Columbia’s coastal forest economy takes on various dimensions. Most obviously, the transition to flexible production has meant that once-dominant companies provide communities with less income from taxes, fewer permanent jobs, fewer spinoffs for local businesses, fewer goodwill contributions, and the virtual elimination of casual (weekend and summer) employment for high school and university students. In the mining industry, neoliberal reforms such as the fly-in, fly-out, or drive-in, drive-out (FIFO/DIDO) model have weakened companies’ obligations toward their host communities (Ryser et al., 2017; Martin, 2012; Carrington & Pereira, 2011; Taylor and Simmonds, 2009; 137 Storey, 2001; Houghton, 1993). Houghton (1993: 287) described the negative impacts of the longdistance commuting system in Canada: A major criticism of the LDC is the negative impact of so-called fly-over effects, whereby local communities fail to gain significant benefit from projects located in their vicinity, not only do mining companies recruit most of their workers from elsewhere, but they are also accused of ignoring local suppliers in their purchase of goods and services. Economic restructuring has weakened companies’ involvement in the community due to retrenchment (Bluestone & Harrison, 1982). Markey et al. (2012: 127) argued that “political and economic restructuring in BC since the 1980s illustrates an overt public and private position of rural community withdrawal”. In forestry towns, companies pursued retrenchment to refocus on forest management and changing environmental, economic, and political pressures (Wilson, 1998). Bradbury & St-Martin (1983) found that retrenchment has contributed to increased instability, vulnerability, and uncertainty. Triangulation confirmed that the companies were no longer directly involved in housing and infrastructure provision, community planning, and decision-making. In the case of Tumbler Ridge, I found that the new set of companies that emerged after the first wave of closures shifted from ‘community-oriented’ to ‘lean’ and ‘minimalist’ approaches (Martin, 2012). Community participants noted that the previous companies were closely involved in transition planning following the first wave of closures. During the second wave of mine closures, my analysis shows that only one company out of the three companies was involved in the transition process. I also found that only HD Mining saw the need to invest in residential development. This finding is consistent with Beckley (2000: 23), whose research found that companies began “abdicating responsibilities for community development and well-being” in the early 1980s. In the U.S., Quark (2007: 38) noted that large-scale corporations operating in rural areas had adopted the “principles 138 of non-responsibility towards employees and communities by insulating themselves from the moral economies of place that empower communities to make claims on firms.” In BC, successive governments have offloaded responsibilities, including economic development to local governments (Markey et al., 2008; Prudham, 2008b; Hanlon et al., 2007; Halseth et al., 2003; Bryden & Munro, 2001; Barnes et al., 2000). At the same time, provincial resource development policy demands very little from companies in terms of their community obligations (Young & Matthews, 2007; Burda et al., 1998), which has been described as an attempt by the government to attract business and investment into the hinterlands (Munro, 2004). Young (2008: 30) noted that provincial policy separates community development from company operations to address industry competitiveness: Within a few short years, the notion that the role of government was to promote stability and the co-development of rural industry and community has been replaced by the idea that distinct and separate corporate resources and community-based economies are both possible and desirable — that these must be “liberated” from one another so that each may be independently “re-aligned” to the demands of broader economic forces. Similarly, Burda et al. (1998: 67) noted that: Throughout British Columbia, forest-dependent communities are held hostage by their over-reliance on a single corporate employer who, in turn, is driven by the international marketplace to downsize or relocate when supplies run short, or rates of return fall below the industry average.... more and more communities are experiencing the vulnerability that results from this, while the industries turn to the province for more timber, more financial assistance, and fewer controls. Despite restructuring and policy changes aimed at liberalizing capital and encouraging industrial competitiveness, companies are still an integral part of communities (Martin, 2012). From the community’s standpoint, while companies have a fiduciary responsibility towards their shareholders, the social and economic wellbeing of host communities is equally important to that responsibility (Gale & Gale, 2006). Increasingly, resource industries are playing a supportive role 139 in local governance by engaging with and complementing local government and stakeholders’ efforts to deal with a wide range of social and economic challenges (Ryser et al., 2014; Cheshire, 2010). These studies found that resource industries support interventions for Indigenous employment, community development programs, apprenticeship, skills training, capacity building, and service delivery. Despite the above, industry involvement in community development varies considerably depending on corporate culture, history of regional activity, community receptiveness, and company size (Cheshire, 2010). In the case of Tumbler Ridge, Anglo-American was socially and environmentally responsible because of their size and international reputation. Anglo-American was socially responsible through their social and community investments, skills training and development, voluntary initiatives, and community donations. Even under ‘care’ and ‘maintenance’, the company continued to support tourism development, infrastructure rehabilitation, and voluntary-run events such as the Emperor’s Challenge and Grizfest, sporting activities, and the Food Bank. The company’s philosophy toward community development is captured in the following words of the Director of Corporate Affairs: Good CSR lends itself to a strong reputation – it is the company’s track record that will facilitate opening doors to expansion in other regions with the assurance of a responsible approach and respect for the local communities (Media Planet, 2012). Conuma Coal, the only firm currently operating near the community, has also demonstrated a sign of goodwill towards community development. The company provides scholarship and internship opportunities to students, has a local content agreement with the local Chamber of Commerce, and supports local voluntary initiatives. A corporate strategy that relies on neoliberal ethos is corporate social responsibility. Increasingly, “CSR has become an integral component of business conduct and a means of 140 demonstrating private sector contributions to sustainable development in natural resource sectors” (Arminen et al., 2016: 500). This neoliberal approach to resource governance has received substantial government support as it reduces the state’s financial obligations toward local communities (Heisler & Markey, 2013; Markey et al., 2008a; Polèse, 1999). Under CSR, industries voluntarily distribute resource wealth to local communities through legacy investments and community development programs (Ryser et al., 2014; Heisler & Markey, 2013; Albareda et al., 2008) as a way to mitigate political and economic risk (Blowfield, 2005). Private enterprises going beyond their traditional role as employer and taxpayer to assume responsibilities that the government was hitherto liable for brings into question the separate roles of government and industry in distributing resource wealth back to rural communities (Heisler & Markey, 2013; Maconachie & Hilson, 2013). The shift from a paternalistic corporate control to a neoliberal approach to resource governance has meant a disconnect between corporate programs and local needs (Addison & Alan, 2018; Maconachie & Hilson, 2013). These programs may end up meeting global performance standards without necessarily achieving community development goals. Ryser et al. (2014) found that industry support has mainly focused on mutually beneficial community projects with little or no attention paid to broader community needs that support economic diversification. Further, the continuous reliance on corporate donations to provide infrastructure and services for rural communities is unsustainable as industries gradually withdraw from community development. Community participants indicated that industrial funding is unreliable because resource extraction is prone to global market fluctuations, corporate decisions, and changing social and natural environments (Halseth & Ryser, 2017). There is also insufficient evidence of positive outcomes 141 of CSR and limited understanding of the mechanisms and processes underlying the outcomes (Addison & Alan, 2018; Aguinis & Glavas, 2012). 6.5 Conclusion This thesis explored the transition pathway, objective, outcome, and the changing role of the resource industry in local economic development. This research was motivated by the mill/mine closures across northern BC, leaving many remote resource towns facing uncertain futures. The analysis revealed that the communities have transitioned towards a place-based approach to economic development. The study further offered a more nuanced understanding of place-based economic transition through the lenses of community economic development (CED), New Localism, social capital/cohesion, and community capacity. The return of industrial capitalism has led to the re-emergence of a space-based trajectory (i.e., mining, wind energy generation). However, the return of industrial capital could lead to creative destruction or enhancement depending upon the spatial placement of the space-based development and how the town is able to leverage its numerous economic opportunities to foster economic development. The analysis also suggests that the study communities have achieved significant economic success owing to a high degree of social capital/cohesion, community capacity, local planning, and senior government support. In other words, the communities have transitioned from a monoindustry to a diversified economy. While Valemount has diversified into tourism, amenity retirement, and community forestry, Tumbler has diversified through the development of projects in the natural gas, wind power, community forestry, amenity-and-tourism-based industry, and creative and innovative industry. Finally, the analysis shows that the role of resource industries in local economic development has evolved through two connected but distinct eras: institutional paternalism and 142 neoliberalism. Institutional paternalism coincided with Fordism, which emphasized government and company involvement in local governance, service provision, and community development, while neoliberalism prompted industrial restructuring, which emphasized retrenchment of companies’ involvement in local economic development and hollowing out of the state’s responsibility toward local communities. This shift from Fordist-Keynesianism to Post-Fordist Neoliberalism has resulted in ‘lean’ and ‘minimalist’ approaches to local economic development. 143 Chapter 7: Conclusion This chapter summarizes the contributions of my research to the transitioning resource town literature. I start by addressing how the findings from each research question have contributed to the literature. I then elaborate on how these contributions are relevant to rural development policy and practice. Based on the study limitations and emerging rural development concerns, I propose a number of future research directions. 7.1 Research Questions and Findings First, this thesis explored the economic transition path adopted by the two case study communities following industrial closures. My research found that the study communities transitioned from staples-based to an emerging place-based development trajectory. Deindustrialization has shifted the focus on reliance on space-based to place-based assets (Howlett & Brownsey, 2007; Kitson et al., 2004). The emphasis on place as an essential node for constructing rural development allows communities to address their unique challenges and offers an opportunity for local strengths and assets to assert themselves (Markey et al., 2008). One such example which has become increasingly popular is amenity and tourism development. In the study communities, the same topography which supports the resource extraction also offers beautiful scenery for attracting tourists and amenity-migrants (Gosnell & Abrams, 2011; Chang, 2007; Mitchell, 2004). This thesis found that the communities have transitioned from staples-based economies towards amenity and tourism-driven economies based on the aesthetic natural environment, recreational opportunities, cultural richness, and social amenities (Power, 1996). Place-based development also reflects territorial innovation and creative industries (Markey et al., 2006). In Tumbler Ridge, the thesis found emergent innovative and creative industries that build upon the town’s amenity-and-tourism-driven economy. The town has 144 positioned itself as a conference destination and knowledge-based economy by attracting creative entrepreneurs (Chang, 2017; Power, 1996). The new economy is associated with the growing importance of specialized, innovative, and knowledge-based industries (Chang, 2017) and increased mobile capital and workforce (Vinodari, 2015; Holmes, 2006). Pursuing a policy of ‘place’ requires local autonomy in managing local resources. This study further argues that the concept of community forest stems from the notion of community empowerment, local management, and local governance of forest resources (Ambus & Hoberg, 2011). The community forest initiative reflects the notion of devolution (Haley & Nelson, 2007); civic participation (Bullock & Hanna, 2008; Reed & Mcllveen, 2006); civic boosterism, and public-private partnerships (Harvey, 1989); broad public engagement, accountability, and transparency (Kersting et al., 2009); and sustainable management of resources (Pinkerton et al., 2008; McCarthy, 2006). This initiative represents a new paradigm for addressing the link between forest utilization, community livelihoods, and place-based governance of local resources. The unique characteristics of rural places underscore the collective agency of local actors to pursue locally-driven initiatives. Underlying the local human agencies is a sense of social cohesion, social capital, place-based governance, partnerships, communal responsibility, and voluntarism, which are critical ingredients to bottom-up development in the era of state withdrawal and neo-liberalism (Nel & Stevenson, 2019, 2014; Shortall, 2008; Pole`se, 1999). In smaller communities with strong bonding ties, voluntarism and social groups can enact change through social capital and cohesion (Reddel & Woolcock, 2004). Bridging relationships with external actors and agencies on the basis of partnership and collaborations with the government and public organizations have helped revitalize social and economic infrastructure to foster the long-term adaptive capacity necessary to construct and maintain competitiveness within rural places (Markey 145 et al., 2008); improve the quality of life of residents (Moore et al., 2006); increase community capacity (Nelson, 2006); create new place-identity (Hiner, 2016); stimulate the local economy (Hall & Müller, 2004); as well as attract and retain people and economic activities (Markey et al., 2008). Further, this thesis shows that leveraging existing bonding ties and bridging relationships increased community capacity by adding new knowledge and skills (Granovetter, 1982), as well as uncovering rural resiliency and creative talents that have always been hidden within paternalistic institutional relationships. Thus, the combined effect of bonding and bridging social capital is essential in producing positive economic outcomes (Woodhouse, 2006). The thesis also highlights the importance of local economic planning to economic transition. In particular, in the era of Post-Fordist-Neoliberalism, local economic development is dependent upon the proactive behaviour of the community members (Hayter & Nieweler, 2018) including the local government (Hayter & Nieweler, 2018). Planning for economic and social sustainability requires an integrative approach to establishing community vision and development priorities with the involvement of top-down and bottom-up actors, as well as citizenry participation (Markey et al., 2010; Parkinson & Roseland, 2002; Mercer & Jotkowitz, 2000; Sharp & Elkins, 1991). At the same time, local implementation of development strategies also requires external assistance to boost local efforts (John et al., 1988). Secondly, the thesis addressed the transition objectives and suggested the transition focused on achieving economic diversification and sustainability. Economic diversification has become a key policy goal across single-industry towns (Burnett & Brunelle, 2019; Clemenson, 1992; Fletcher et al., 1991). Comparative analysis of the case studies shows that Valemount adopted a proactive approach to economic planning while Tumbler Ridge pursued a reactive planning approach. The research suggests that the communities have diversified their economic 146 base while maintaining the resource sector as their primary sector. For Valemount, the diversification focused on nature-based tourism development, community forestry, and amenity retirement. In the case of Tumbler Ridge, the diversification focused on amenity and tourism development, community forestry, wind power generation, and creative and innovative industry. Contrary to the assumption that rural communities have limited options for economic diversification, this thesis argues that the search for economic renewal can succeed in regions where ‘place’ and the local environment are at the center of local economic planning (Johansen & Skryzhevska, 2013; Kuyek & Coumans, 2003; Jussila & Järviluoma, 1998). The thesis also corroborates the resource town literature that attributes successful and sustainable economic revitalization to a high degree of social capital, local capacity, natural resources, institutional thickness, and government support (Halseth et al., 2017; Markey et al., 2012; Markey et al., 2008, Halseth, 2005; Cabus, 2001; Stohr, 1990; Amin, 1999; Bebbington & Perreault, 1999). Thirdly, the thesis examined the changing company involvement in local economic development. In BC, the foundation of resource development is associated with institutional paternalism and Fordism (Martin, 2012: Prudham, 2008a). During this era, companies and governments were involved in local governance, service provision, and community development (Halseth et al., 2017; Halseth & Sullivan, 2002). Communities cultivated a culture entrenched in resource extraction and failed to nurture traits that contribute to community sustainability (Teitelbaum et al., 2003). The adoption of neoliberalism following the 1980s and 1990s recessions prompted industrial restructuring, which redefined company-community relationships. Neoliberalism emphasized the retrenchment of companies’ involvement in local economic development and hollowing out the state’s responsibility toward the local communities. The shift from Fordist- 147 Keynesianism to Post-Fordist Neoliberalism has resulted in ‘lean’ and ‘minimalist’ approaches to local economic development and undermined the ‘social contract’ linking resource development to community stability and livelihoods. Further, the recent turn towards CSR has failed to recognize local needs and context. While there was no formal CSR framework to ensure social accountability and public participation, the companies adopted a ‘knee-jerk’ approach to solving local economic problems. 7.2 Policy Recommendations This research examined the transition pathway, objectives and outcomes, and the changing role of resource industries in local economic development. The findings show that the communities have de-emphasized reliance on resource extraction for a diversified economy rooted in placebased development. This case study has highlighted the importance of place, local environment, local empowerment, strategic investment, social capital, local capacity, and government (i.e., local, provincial, and federal) support in transitioning resource towns. In light of this, some recommendations on how community sustainability could be enhanced in resource towns are discussed in this section. First, maintaining the competitiveness of a place-based economy requires strategic investments in social and economic infrastructure (Markey et al., 2008). Long-term investment in community infrastructure fosters the adaptive capacity necessary for communities to thrive in the wake of an economic crisis. Government must scale up efforts to support resource towns to retool and expand community infrastructures. Economic development thrives on a solid infrastructural base. The increased economic activities suggest that northern communities require substantial infrastructure investments to accommodate future economic and population growth. Infrastructure renewal is necessary for the study communities to attract and retain people and businesses. 148 Second, communities need service support and resources to thrive in the ‘new economy’ (Sullivan et al., 2014). The existing service delivery model must be re-evaluated to ensure effectiveness and suitability. As voluntary groups and private organizations have stepped up to fill gaps in rural service provision, the province should coordinate funding and policies with the local governments to ensure stable funding for their operations. The rationalization and concentration of provincial services are antithetical to the vision of the ‘New Rural Economy.’ Service provision in rural communities must not just be based on population levels and community size but on placebased differences, local context, and needs. The province must also scale up support for education and health services and an incentive package to attract and retain professionals. Most northern rural communities are ideal settings for retirement but require a robust healthcare system, support structures, and services to enable seniors to age in place. Third, rural and small-town places must focus on attracting and retaining small businesses rather than focusing their energies on the elusive prospect of large projects (Nel et al., 2003). To ensure a thriving small business sector, the province must provide funding for small businesses and local entrepreneurs. The province must coordinate with the local governments to conduct business development and opportunity analysis to help identify growth-related prospects in the communities. The province must also coordinate with the local governments to equip home-based businesses and local entrepreneurs with the requisite skills to promote, market, and sell their products online. Fourth, the province has overly concentrated on environmental issues related to resource extraction to the detriment of social aspects of resource extraction. The province must integrate social impact mitigation into the existing BC Environmental Mitigation Policy and permitting process. The social impact mitigation policy (SIMP) must consider the economic and social well- 149 being of the host communities. The SIMP must also consider factors that contribute to community sustainability and economic development to help minimize resource dependence. The SIMP must consider a broader spectrum of issues such as community investment fund, early community engagement, consultations, social closure planning, alternative livelihood programs, education and training, procurement and supply chain, and impact benefit agreement. Fifth, the province must restructure the Community Transition Services (CTS) and streamline support services and resources according to local context and needs. The current mantra – ‘communities in transition’ used to describe communities undergoing economic crisis must be reframed as ‘communities in crisis’ to generate the much-needed responses, attention, and support. In BC, physical disasters (e.g., wildfires) attract more attention than small-town economic crisis. The province must consider adopting the emergency operation center model for managing economic disruptions associated with industrial closures or production curtailment. This model will assure communities of dedicated funding to support worker transition programs, community support programs, and long-term economic sustainability. The province must coordinate with the local governments and the industry to develop a proactive response plan and implementation strategy to minimize the impact of abrupt closures. Lastly, the province must coordinate with the local governments and community not-forprofit organizations to provide affordable and flexible housing. Limited housing stock in rural communities impedes growth and development. Thus, the need for a holistic housing strategy to address the housing shortage in remote and rural communities. Provincial support is required to develop social housing for low-income earners and assisted living and supportive housing to enable seniors to age in place. The province must also provide funding for the hiring of a housing coordinator to facilitate and coordinate housing-related matters in the communities. 150 7.3 Future Research Directions The economic transition of the study communities is a classic case of a place-based development in the face of rapidly changing economic and political restructuring. Future research should apply Mitchell & O’Neill’s (2017, 2016B) transition template to explore economic transition in northern BC. The transition template explores the economic trajectory and mechanisms, approaches, and development stages. First, place and space-based transitions occur via different mechanisms, which generate different economic trajectories. The literature identifies three trajectories and six accompanying mechanisms: (i) path-dependent, which is facilitated by self-reinforcing effects (Boschma & Frenken, 2006; Martin, 2010); path-emergent trajectory, which is underpinned by innovative activity (Steen & Karlsen, 2014); and branching innovative trajectory which is simultaneously path-dependent and path-emergent. Three key mechanisms give rise to this trajectory: layering, conversion, and recombination (Steen & Karlsen, 2014). The next stage explores the development approaches that give rise to the transition trajectories and mechanisms. The literature identifies four strategies: exogenous, endogenous, neo-endogenous, and neo-exogenous. Scholars (Mitchell & O’Neill, 2017, 2016b; Bosworth & Atterton, 2012; Gkartzios & Scott, 2014) use involved stakeholders (drivers, enablers, and implementers) to capture their contemporary difference. The final stage of the model uses the resource dependency model (Mitchell & O’Neill, 2016a) or a mix of demographic and economic measures (Halseth & Sullivan, 2002) to systematically track the economic transition during a community’s evolution (Mitchell & O’Neill, 2017). Another promising line of future inquiry would be to build upon these findings by ‘scaling up’ the results through quantitative analysis to understand how small-town communities are diversifying. For instance, future research may consider utilizing measures of economic diversity 151 to examine the extent to which northern resource towns are diversifying. Exploring the key drivers of economic change would also deepen our understanding of the rapid transformation occurring in resource towns. It would also be exciting to explore the dynamics of the planning-economic development nexus in transitioning resource towns. Resource towns are experiencing social and economic change. Therefore, early planning for economic transformation is an essential element of a community’s success and evolution (Johnston & Lorch, 1996; Meyer & Greenberg, 2001; Hodge & Killam, 2003; Ballesteros & Ramírez, 2007; McAllister, 2008; Ryser & Halseth, 2010). However, the role of planning in economic development has received limited attention within the resource town literature. While this research addresses aspects of this topic, further research is warranted. A key limitation to this thesis is the selection of cases. While the cases were purposefully selected in line with my sampling logic, including northern communities with economic downturns that have successfully pursued diverse forms of alternative development, the test of generalizability of the results across resource towns would be problematic. In the sense that, not all resource communities have been successful in their pursuit of alternative transition paths. In light of the above, a comparative analysis of successful and unsuccessful cases would add more value to the literature by highlighting the barriers to economic transition and lessons that can be learned from the successful cases. 7.4 Closing This thesis examines the economic transition of resource towns in northern BC. Resourcedependent communities are experiencing a transition from reliance on fixed resources to a more diverse economy based on a place-based development. At the same time, the shift from FordistKeynesianism toward Post-Fordist Neoliberalism has impacted companies’ obligations toward 152 resource towns. Drawing upon a qualitative case study, key informant interviews, and analysis of documents, this thesis makes the following findings: First, the shift from reliance on fixed resources to an amenity-and-tourism-driven economy, community forestry, wind energy generation, innovative and knowledge-based industry, and amenity retirement provides a clear case of a transition towards place-based development; Second, the emerging place-based development trajectory emphasizes the importance of the local environment, local empowerment and management, strategic investments, social capital, local capacity, local planning, and government support in transitioning resource towns; Third, the shift from Fordist-Keynesianism to Post-Fordist Neoliberalism has resulted in companies’ retrenchment in local economic development. 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Struggling with new regionalism: Government trumps governance in Northern British Columbia, Canada. The Journal of Rural and Community Development, 10(2), 136–165. 184 Appendix A: UNBC Research Ethics Board Approval RESEARCH ETHICS BOARD MEMORANDUM To: Richard Darko CC: Greg Halseth From: Davina Banner-Lukaris, ChairResearch Ethics Board Date: June 16, 2021 Re: E2021.0513.018.00 Economic restructuring in resource-dependent communities in the aftermath of mill/mine closure: A comparative case study of Valemount and Tumbler Ridge in Northern BC Thank you for submitting revisions to the Research Ethics Board (REB) regarding the above-noted proposal. Your revisions have been approved. We are pleased to issue approval for the above-named study for a period of 12 months from the date of this letter. Continuation beyond that date will require further review and renewal of REB approval. Any changes or amendments to the protocol or consent form must be approved by the REB. During the COVID-19 pandemic, no in-person interactions with participants are permitted without an approved Safe Research Plan and the protocol mitigations for COVID-19 being submitted as an amendment and approved by the REB. Please refer to the Chair Bulletins found on the REB webpage for further details. If questions remain, please do not hesitate toemail reb@unbc.ca. Good luck with your research. Sincerely, Dr. Davina Banner-Lukaris Chair, Research Ethics Board 3333 University Way, Prince George, BC, V2N 4Z9, Telephone (250) 960-6735 185 Appendix B: Information Letter/Consent Form Information Letter / Consent Form Economic Restructuring in Resource-Dependent Communities in the aftermath of mill/mine closure: A comparative case study of Valemount and Tumbler Ridge in Northern British Columbia Student Researcher: Richard Darko Natural Resources and Environmental Studies Program, Department of Geography University of Northern British Columbia, 3333 University Way, Prince George, BC, Canada, V2N 4Z9 Tel: 647-822-7076 Email: darko@unbc.ca Supervisor’s name and position: Greg Halseth, Professor, Geography Program Canada Research Chair in Rural and Small-Town Studies Co-Director, Community Development Institute at UNBC University of Northern British Columbia, 3333 University Way, Prince George, BC, Canada, V2N 4Z9 Tel: (250) 960-5826 Fax: (250) 960-6533 Email: greg.halseth@unbc.ca Introduction I invite you to take part in a research study which forms part of a thesis for the award of Master of Arts in Natural Resources and Environmental Studies (Geography Option). First, I want to state that: • taking part in this research project is entirely voluntary. • you may choose not to take part, or you may withdraw from the study at any time, and you can also skip any questions you like. • if you choose to withdraw from the study, your data will not be used for the analysis, will be removed from the study, and securely disposed of. • withdrawal will no longer be possible after the thesis has been compiled. 186 • participant information will form the basis of the study analysis and the findings will be presented in graduate seminars, conferences, and possibly published in academic journals. • this research has no immediate benefits for participants, but the data collected from this research project may create new knowledge that may benefit resource-based communities, local leaders, and different levels of government. Purpose of Project Many northern communities in British Columbia (BC) rely primarily on extractive resource development for their livelihoods. Generally, resource towns have been characterized by periods of boom and bust, which present different opportunities and challenges. Recent mill and mine closures across northern British Columbia have shown that resource-dependent rural communities are economically unsustainable so long as they rely solely on traditional resource industries. Over the years, resource industry closure plans/policies/measures have tended to focus on environmental liabilities without considering the post-closure economic sustainability of the communities. Thus, there is the need for a robust economic restructuring that recognizes existing community assets and leverages them towards greater economic resilience. This study will explore the differences/similarities in community transition processes and strategies after mill/mine closures in Tumbler Ridge and Valemount. It will also help to deepen our understanding of post-closure community transition processes and strategies, factors affecting post-closure community transition, the role of resource companies in post-closure community transition, as well as the policy levers shaping post-closure community transition processes. Voluntary Participation You are being invited to take part in this research study because of your knowledge and experience in the subject matter. The data gathered from the interview may contribute to post-closure community transition management and future community sustainability. Participation in the interview is entirely voluntary and, as such, interviewees may choose not to participate. If you do choose to participate, you may also choose not to answer any questions that make you uncomfortable, and you have the right to end your participation in the interview at any time and have all your information withdrawn from the study and destroyed. Study Procedure The study will use an interview guide to ask participants a series of questions relevant to their experience, role, and knowledge regarding the transition management process. The interview will be held on Zoom and will also be recorded for the purposes of ensuring accurate notes. A summary of key themes from the interview will be created and sent through email to the interviewee through an encrypted, password protected file, and you will have two weeks to provide any edits or corrections and send back to me. The interview should take about 45 minutes to complete. Potential risks of the study This project has undergone UNBC Research Ethics review process. I do not think there is any risks to participation. 187 Potential benefits of the study I hope that by participating you will have a chance to share your experience and knowledge and provide input into issues relevant to shaping post-closure transition processes, strategies, and management. This project will advance knowledge in post-closure transition management that may be beneficial to resource-based communities, local leaders, and different levels of government. Anonymity and Confidentiality Anonymity cannot be guaranteed, especially as communities involved are small, and the information shared is relatively specific. The names of participants will not be used in any reporting, nor will any information which may be used to identify individuals. All information shared in this interview will be kept strictly confidential. All electronic data will be managed, encrypted, and securely stored on password protected computers and will be accessible only by myself. After my thesis is completed, all the electronic data will be erased, and all paper files will also be shredded. Research results The final project report will be distributed to all participants via email. A copy will also be available in both Valemount Public Library and Tumbler Ridge Public Library. The results from this research will be reported in a graduate thesis, presented in graduate seminars, conferences, and possibly published in academic research journals. Questions In case of any questions that may arise from this research, please feel free to contact Richard Darko (647-822-7076; darko@unbc.ca) or Dr. Greg Halseth (250-960-5826; greg.halseth@unbc.ca) in the Geography Program at UNBC. Complaints If you have any concerns or complaints about your rights as a research participant and/or your experiences while participating in this study, contact the UNBC Office of Research at 250-960-6735 or by e-mail at reb@unbc.ca. Participant consent and withdrawal I have read the above description of the study and I understand the conditions of my participation. My signature indicates that I agree to participate in this study. CONSENT I have read or been described the information presented in the information letter about the project: YES NO I have had the opportunity to ask questions about my involvement in this project and to receive additional details I requested. YES NO 188 I understand that if I agree to participate in this project, I may withdraw from the project at any time up until the report completion, with no consequences of any kind. YES NO I have been given a copy of this form. YES NO I agree to have my interview recorded. YES NO Follow-up information (e.g. transcription) can be sent to me at the following e-mail or mailing address (if applicable): Signature: Name of Participant (Printed): Date: 189 Appendix C: Interview Guide Economic Restructuring in Resource-Dependent Communities in the aftermath of mill/mine closure: A comparative case study of Valemount and Tumbler Ridge in Northern British Columbia Interview Guide Participant name: _______________________________ Contact information: _______________________________ _______________________________ _______________________________ Interviewer: _______________________________ Date: ______________________ Interview Time: Start_____________ Finish______________ NOTES: Section A: Background Questions This section explores the impacts of the industry closures and their implications for community sustainability. I. Can you provide some details about the industry closures and how your role in the community was impacted? II. Based on your experience, what have been some key impacts of the industry closures in your community? III. How was your organization/business/municipality impacted by the closures? 190 IV. How did your organization/business/municipality cope with the closure-induced challenges? Section B: Post-Closure Community Transition Management This section explores community post-closure transition processes and strategies, and how they have contributed to community economic sustainability. I. In the lead up to the closure, was the local government in the process of developing, or had ready developed, a transition plan? II. If there was a transition plan, can you describe the transition pathway that the community adopted? III. What challenges did the transition encounter? IV. How did the community cope with these transition challenges? V. What resources, policies, or supports were missing that would have helped better position the community to respond to transition? Section C: The Role of Resource Industries This section explores the role of resource industries in post-closure community transition within the context of closure planning, local-level agreements, economic diversification, and corporate social responsibility. I. In the years prior to closure, did the industry work to promote a more diversified economy? II. At the time of closure/transition, what role did the industry play to support the movement to a more diversified economy? Section D: Public Policy In this section, I would like to explore policy support from senior levels of government to communities in periods of economic downturn. 191 I. What was the nature of supports/approaches adopted by senior governments during the transition? II. Were there specific federal or provincial regulations, policies, or structures that shaped the transition process? III. What government policies or supports were missing that could have better positioned the community to respond to transition? Section D: Looking Ahead I. What measures do you think resource towns should put in place to lessen the impact of future economic disruption? II. Is there anything else that you would like to say about the post-closure community transition that we did not talk about? 192 Appendix D: Latent Content Analysis Results: Valemount Anchor Code Factors Underpinning the Mill Closure Coping and Transition Strategies Transition Challenges Code Removal of the appurtenance clause Reduction in Annual Allowable Cut Change of ownership Lumber price fluctuations Softwood lumber dispute Small mill size Geography High cost of operation Mountain Pine Beetle infestation Limited supply of quality wood Poor state of the mill Tourism Hospitality infrastructure Community forest Community-based sawmill Self-employment benefit program/small businesses Amenity migrants/Second homes Economic development capacity Economic development strategy Housing and accommodation Community infrastructure revitalization Volunteerism, dedication, commitment Bottom-up local Initiatives Progressive leadership Resilience Collaboration and partnership Inadequate funding Huma resources Internal conflicts Limited housing stock Lack of access to crown land Red tape and bureaucracy Out-date land-use policy Taxation 193 Frequency Categorization/Theme 10 Change in Provincial Forest Policy 6 8 8 6 5 5 4 7 5 5 10 5 9 9 6 6 Change of Ownership Global Market Fluctuations International Trade and Competition Geography Technical Factors Economic Diversification/Sustainability 3 5 5 5 Community Revitalization 7 6 8 8 7 8 6 5 9 7 2 6 2 Social Capital Financial Constraints Human Capital Constraints Power Struggle Housing Pressures Provincial Land-Use Policy Industry’s Role Employment Community investment Community donations Local procurement 9 5 5 3 194 Economic Development Social and Community Investment Local Procurement Appendix E: Latent Content Analysis Results: Tumbler Ridge Anchor Code Factors Underpinning the Mine Closures Coping and Transition Strategies Transition Challenges Code Frequency Coal price decline 16 Bankruptcy Economic Development/Sustainability Planning UNESCO Global Geopark Tourism Home-based business Natural gas development Community forest Wind energy development 8 5 Coal mine redevelopment Municipal Capital Asset Replacement Business Retention and Expansion Development of urban reserves Construction of a new visitor’s information center Volunteerism, dedication, commitment Bottom-up local Initiatives Progressive leadership Resilience Collaboration and partnership 15 5 Limited funding Red tape and bureaucracy Lack of infrastructure Lack of support structures Low electric power Low Internet connectivity 9 8 7 8 5 6 Lack of interest in retraining and career change 3 Lack of entrepreneurial spirit 4 Inadequate staffing Local conflicts Community donations Sponsorship Financial support 5 5 8 5 13 15 15 2 7 7 7 Categorization/Theme Global Market Fluctuation Financial Constraints Economic Diversification/Sustainability 7 8 5 Community Revitalization 6 3 8 4 9 195 Social Capital Financial Constraints Financial Constraints Community Attractiveness Human Capital Constraints Power Struggle Industry’s Role Apprenticeship, skills, and training program Professional development and career exploration Employment Taxation Local procurement 5 Social and Community Investment 1 12 12 5 196 Economic Development Local Procurement Appendix F: Summary of Valemount Economic Development/Sustainability Plans Policy Document Valemount and Area Economic Development Strategy – 1994 Strategic Areas • • • • Valemount and Area Economic Development Plan – 2000 • • • • • Valemount Vision 2020: Implementation Strategy – 2004 • • • Socio-Economic Opportunity Study – 2004 • • • • • • • • • • • • • • • Main Objective To promote diversification of the economy through the development of complementary industry and tourism, and through the continued support of established businesses in an effort to enhance the quality of life of the community. Transform Valemount and Area Change and Growth Technology and Information from a one-industry community to a mixed economy town with a Forestry specialized forestry base, and a Land Issues growing tourism and services Tourism sector. By 2020 Valemount is a dynamic Tourism and successful place with a Resort and Residential multifaceted, blended economy, Development based primarily on tourism, resort, Community Forest and and real estate development, as Value-Added Forestry well as continued forestry. Provincial Government Local Government Utilities and Transportation Natural Environment Recreation Leadership Financial Resources Traditions and Character Workforce Partnerships To identify the social, economic, Forestry and development trends of the Tourism region and future issues and Resort Development challenges that could affect this Amenity Migration “blended economy” community. Knowledge Workers Beautification/Revitalization Education/Communication Technology Tourism Development Business Development 197 Integrated Community Sustainability Plan – 2013 • • • • To enhance the Valemount Buildings and Sites experience through growing Recreation and Leisure Transportation and Mobility economic opportunities, strengthening community Resources, Waste, and wellbeing, protecting and Water enhancing the environment, and • Food and Agriculture creating success and learning • Economy and Employment together. • Community and Individual Health • Education and Culture • Land Use and Natural Areas • Energy Source: Adapted from Various Economic Development Plans 198 Appendix G: Summary of Tumbler Ridge Economic Development/Sustainability Plans Policy Document The District of Tumbler Ridge Official Community Plan: Economic Development Plan (2012) Tumbler Ridge Community Tourism Plan (2014) • • • • • • • • Tumbler Ridge Sustainability Plan: Strategies for Resilience (2014) Community Tourism Plan (2017) • • • • • • • • • • • • Strategic Areas Economic Diversification/Sustainability Business Retention, Expansion, and Attraction Downtown Revitalization Organization, Communication, and Leadership Product and Experience Development and Enhancement Market Development and Marketing Research and Evaluation Additional Projects Identified Post-workshop to Help Address Economic Downturn Economy Education Housing Health & Social Services Sports & Recreation Arts & Culture Land & Infrastructure Citizen Engagement Organization, Communication, and Leadership Product and Experience Development and Enhancement Market Development and Marketing Research and Evaluation 199 Main Objective Promote the diversification of the local economy away from significant dependence on coal mining by supporting the development of projects pertaining to education, tourism, alternative energy, oil and gas, other types of mining, forestry, and other sectors deemed to be appropriate for Tumbler Ridge. To diversify Tumbler Ridge’s economy through tourism development and marketing. To establish a broader and more diversified economic base. To diversify the Tumbler Ridge Economy through tourism development and marketing. Investment Readiness and Economic Development Plan: 2018 - 2020 • To provide an action plan for Economic Development and retaining and attracting Investment Capacity investment in the community. • Tumbler Ridge is Open for Business • Tumbler Ridge has a Diverse Economy • Tumbler Ridge has a Dynamic Downtown Core • Tumbler Ridge is an Attractive Place to Live • Tumbler Ridge has a Workforce for the Future • Tumbler Ridge has an Infrastructure to Accommodate Growth Source: Adapted from Various Economic Development Plans 200 Appendix H: Comparison of Case Studies Evaluation Framework Process Variables of Interest Economic Planning Community Revitalization Strategy Key Results Valemount Strong Communities in the Nineties’ (1989) Economic Development Plan (1994) Forest Sector Feasibility Study (1999) Economic Development Plan (2000) Valemount Vision 2020: Implementation Strategy (2004) Socio-Economic Opportunity Study (2004) Integrated Community Sustainability Plan (2013) Downtown Revitalization Project Water mains redevelopment New Visitor Information Center Housing and Accommodation Long-term Economic Amenity and Tourism Development Diversification/Sustaina Community Forest bility No No No No Outcome Socio-Economic Indicators Total Employment y Industry Population Change Source: Thesis (2022) 201 Tumbler Ridge The District of Tumbler Ridge Official Community Plan: Economic Development Plan (2012) Tumbler Ridge Community Tourism Plan (2014) Tumbler Ridge Sustainability Plan: Strategies for Resilience (2014) Community Tourism Plan (2017) Investment Readiness and Economic Development Plan: Municipal Capital Asset Replacement Yes Business Retention and Expansion Program Yes Yes Wind Energy Generation Natural Gas Development Virtual Work and Entrepreneurship Meeting, Incentives, Conference, and Exhibition Yes Yes Appendix I: Valemount: Employment by Selected Industries, 1981 - 2016 Year/ Industry 1981 1986 Labour Force Primary Industry 555 590 11.7 15.3 27.0 27.1 14.4 11.0 Logging and Forestry 12.1 13.1 Agriculture/ Forestry/ Fishing/ Hunting 7.6 7.9 14.9 Manufacturing Retail Trade 15.9 14.8 Manufacturing Industries 11.5 8.7 1.8 Year/ Industry 1991 1996 Year/ Industry 535 610 2001 2006 2016 655 630 570 Manufacturing Trade Community/ Business /Personal Service 20.7 29.7 Construction Construction 8.4 2.3 Retail Trade Accommodation/ Food Beverage Service 9.3 17.2 Accommodation/ Food services 7.5 9.8 Construction Industries Transportation/ Communication/ Other utilities 21.5 9.8 Transportation /Warehousing 13.0 13.0 0.5 22.1 24.6 15.8 2.3 4.0 5.3 13.7 8.7 9.6 9.9 3.4 Transportation/ Communication/ Other utilities 6.3 8.5 Source: Statistics Canada Census Data (1981 - 2016) All the values are expressed in percentages and calculated as a percentage of the total labour force. 202 Appendix J: Tumbler Ridge: Employment by Selected Industries, 1986 - 2016 Year/ Industry Labour Force Primary Industry Manufacturing Trade 1986 2275 64.4 2.2 8.6 Community/ Business/Personal Service 29.7 Manufacturing Retail Trade Accommodation/Food Beverage Service Logging /forestry Communication /other utility 2480 2050 Mining quarrying/ oil well 60.5 55.9 Mining/Oil/ Gas Extraction 1.6 1.5 Manufacturing 7.7 6.3 Retail Trade 4.0 3.9 Accommodation/ Food services 1.0 0.97 Utilities 1050 1335 1640 945 31.0 28.5 39.6 14.8 3.8 2.4 6.3 8.1 7.5 10.4 5.8 5.7 6.7 4.3 7.4 0.6 0.5 Agriculture, forestry/ fishing /hunting 3.8 2.6 3.2 Year/ Industry 1991 1996 Year/ Industry 2001 2006 2011 2016 Transportation/ Communication/ Other utilities 2.2 0.95 1.1 1.6 Source: Statistics Canada Census Data (1986 - 2016) All the values are expressed in percentages and calculated as a percentage of the total labour force. 203