Tuesday, June 22, 2010
Canadian Economy Skipped the Recession
Canada's economy is suddenly the envy of the world
No financial meltdowns here, Canada boasts, and world leaders want in on the secret
TORONTO (AP) -- Canada thinks it can teach the world a thing or two about dodging financial meltdowns.
The 20 world leaders at an economic summit in Toronto next weekend will find themselves in a country that has avoided a banking crisis where others have floundered, and whose economy grew at a 6.1 percent annual rate in the first three months of this year. The housing market is hot and three-quarters of the 400,000 jobs lost during the recession have been recovered.
World leaders have noticed: President Barack Obama says the U.S. should take note of Canada's banking system, and Britain's Treasury chief is looking to emulate the Ottawa way on cutting deficits.
The land of a thousand stereotypes -- from Mounties and ice hockey to language wars and lousy weather -- is feeling entitled to do a bit of crowing as it hosts the G-20 summit of wealthy and developing nations.
"We should be proud of the performance of our financial system during the crisis," said Finance Minister Jim Flaherty in an interview with The Associated Press.
He recalled visiting China in 2007 and hearing suggestions "that the Canadian banks were perhaps boring and too risk-adverse. And when I was there two weeks ago some of my same counterparts were saying to me, 'You have a very solid, stable banking system in Canada,' and emphasizing that. There wasn't anything about being sufficiently risk-oriented."
The banks are stable because, in part, they're more regulated. As the U.S. and Europe loosened regulations on their financial industries over the last 15 years, Canada refused to do so. The banks also aren't as leveraged as their U.S. or European peers.
There was no mortgage meltdown or subprime crisis in Canada. Banks don't package mortgages and sell them to the private market, so they need to be sure their borrowers can pay back the loans.
In Canada's concentrated banking system, five major banks dominate the market and regulators know each of the top bank executives personally.
"Our banks were just better managed and we had better regulation," says former Prime Minister Paul Martin, the man credited with killing off a massive government deficit in the 1990s when he was finance minister, leading to 12 straight years of budget surpluses.
"I was absolutely amazed at senior bankers in the United States and Europe who didn't know the extent of the problem or they didn't know that people in some far-flung division were doing these kinds of things. It's just beyond belief," he told the AP.
The Conservative Party government of Stephen Harper that took over from Martin's Liberals in 2006 broadly stuck to his predecessor's approach, though he cut taxes and, when recession struck, pumped stimulus money into the economy, with the result that Canada again has a large deficit.
But it is recovering from the recession faster than others, and although its deficit is currently at a record high, the International Monetary Fund expects Canada to be the only one of the seven major industrialized democracies to return to surplus by 2015.
This month Canada became the first among them to raise interest rates since the global financial crisis began.
George Osborne, Britain's Treasury chief, has vowed to follow Canada's example on deficit reduction.
"They brought together the best brains both inside and outside government to carry out a fundamental reassessment of the role of the state," Osborne said in a speech.
It's a remarkable turnaround from 1993, when the Liberals took office facing a $30 billion deficit. Moody's downgraded Canada's credit rating twice. About 36 percent of the government's revenue went toward servicing debt.
"Our situation was dire. Canada was in a lot of trouble at that point," Martin said. "If we were going to preserve our health care and our education system we had to do it."
As finance minister, he slashed spending. A weak currency and a booming U.S. economy also helped Martin balance the books. In the 1998 budget the government estimated that about 55 percent of the deficit reduction came from economic growth and 35 percent from spending cuts.
"The rest of the world certainly thinks we're the model to follow," said Martin, who was prime minister from 2003 to 2006. "I've been asked by a lot of countries as to how to go about it."
Don Drummond, Martin's budget chief at the time, says the U.S. and Europe won't have it that easy, because the economic climate was better in the late 1990s than it is now, with large trade gains and falling interest rates.
"There's a lot to learn from Canada but their starting conditions are worse," he said. "Even though we were on the precipice of a crisis we weren't in as bad a shape as many of them are."
[Sent from Ralph Paglia's iPhone]
Ralph Paglia
Director - Digital Marketing
ADP Dealer Services
cell: 505-301-6369
Sunday, June 20, 2010
Wednesday, June 16, 2010
Social Media Marketing; Business Best Practices
by Brian Solis
Social networks and blogs are changing how consumers find places and services, how and where they share their experiences, and eventually, where they will spend their time and money. Without an understanding of, and participation in, social networks, you can miss shaping and contributing to the decision-making process of those who define the success of your business.
While social media cheat-sheets and short cuts are available almost everywhere you look, the truth is that we have some work ahead of us. To help, I’ve assembled a list of five best practices to help you build, cultivate, and measure success in the new web right now.
1. Dedicate the time
We’re all very busy and our to-do list is never ending. Because time is a big concern, think about social media as an opportunity cost. Will your investment in identifying and connecting with prospects, customers, and influencers outperform your other activities? The answer is yes for most businesses, so carve out time for strategic experimentation. In short, you get out of it, what you invest.
2. Conquer your fears
Many business owners believe that social media gives people a chance to criticize their business. That’s true, but avoiding social media doesn’t mean that their opinions will never see the light of day. Your brand is at the mercy of those who take to social media to share their experiences, so you might as well take an active role to contributes to the stature and perception of your brand. You might even learn how to improve your product and service in the process.
3. Listen and research to learn and contribute
Social networking is far more effective when you realize that creating profiles and updating social networks aren’t arbitrary. There’s an art and science to all of this, and the process begins with listening and research. Step one: create a list of keywords that represent your market and then use the search box in each social network to see what people are saying about you. As you examine the results, you’ll identify the people who are leading conversations and the dialogue that invites and inspires participation. If local business is paramount to success, use services such as Twitter, Facebook, Yelp, LinkedIn. Also monitor location-based networks such as Foursquare, Gowalla, and Loopt.
4. Establish an attractive and expansive presence
Your presence online is far more valuable than you may realize. While you may think that you should focus on your website, your social-media presence also represents you and what you offer. The ability to showcase your products and services to attract customers and spark conversation is arguably greater on social networking sites than your own website. In any case, connecting the dots between social networks, websites, and the real world is now as important as the service and products that you offer.
5. Use engagement as the new customer service and marketing
It’s not what you say about you, it’s what they say about you that counts. Customer service and engagement overall is a new and genuine form of unmarketing. Customers, prospects, and influencers are already engaging with others to contribute, learn, and discover. They are forming and sharing opinions and making decisions based on the information they find online—with or without you. You should use engagement as a fast, free, and powerful way to reach and serve customers.
This is your time to engage! Doing so will earn you permanent residence in the hearts and minds of the people who make up your markets. This will expand market opportunities, build brand awareness, stimulate demand, and engender loyalty and advocacy.
Originally published on American Express OPEN Forum
Connect with Brian Solis on Twitter, LinkedIn, Tumblr, Google Buzz, Facebook
Please consider reading, Engage!: It might just change the way you think about Social Media
—
Get Putting the Public Back in Public Relations and The Conversation Prism:
—
Image Credit: Shutterstock
- Posted using BlogPress from my iPhone and be sure to visit and join http://ADM.fm