Boom & Bust: A Guide, Managing Ups and Downs in Communities

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How do we recognize boom/bust communities? What can we expect as negative effects of the boom/bust cycle? Dependence on one resource makes places vulnerable to boom and bust. If prices go down, the place goes down. If several resources are extracted, the cycles can be more intricate, but there will likely be a boom/bust pattern. We argue that in resource towns, ups and downs in population and prosperity are to be seen as effects of resource dependence. Some of the effects become causes of other things themselves, intensifying the effects of boom and bust. Some effects reinforce each other, and aggravate the causes. A feedback loop pattern common to many places starts with a population decline, which in turn diminishes the service base, which leads to a reduction in available services, which deteriorates the living and business environment, which undermines the schools and makes educated workers harder to find. All this renders diversification less likely. It is worth noting that in some histories, dependence on one resource was not the main cause of decline or extreme ups and downs; think natural disasters, think special circumstances in neighbouring countries, such as wars and depression. This has been the story for many communities in Western Canada. Vulnerability to boom and bust has several dimensions. Radical localism, either by choice or by abandonment, can be added to the list. We will discuss localism and local autonomy in detail later. • In Crowsnest Pass, Alberta and Revelstoke, BC, the infrastructure for large-scale development of the region, both private and public, became a buffer for the patterns of boom and bust. In Crowsnest Pass, much of the coal mined in the region was destined for the Canadian Pacific Railroad itself, for its steam trains. Meanwhile, in Revelstoke, the CPR had extensive maintenance operations for trains making the perilous crossing of the Rockies. Later, thousands of workers were active in damming and hydro projects. Infrastructure for development in larger areas can thus buffer the ups and downs of development in certain smaller places. Yet, the examples mentioned also indicate that this stabilizing force is never entirely stable: trains don’t need coal anymore, nor do they require much fixing and checking when crossing a mountain pass. Dams don’t need rebuilding too often. And in general, BC has lost its appetite for large-scale and long-term public investment. •

Part II: Boom/Bust: A real introduction

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