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British Columbia: Risks and Transition Towards Resilient Economic Pathways 

Laura Ryser1, Sean Markey2, Greg Halseth1, Sarah Breen3, and Tamara Krawchenko4 

1University of Northern British Columbia 

2Simon Fraser University 

3Selkirk College 

4University of Victoria 

Introduction  

Since the first State of Rural Canada report in 2015, several global pressures and changes are having direct and accelerating impacts on sustainable and inclusive livelihoods across rural British Columbia (BC). Some of these pressures have already been identified as strategic priorities for small municipalities and senior governments. Climate change continues to prompt an urgent need to decarbonize and strengthen disaster preparedness to mitigate the risks of forest fires, droughts, and flooding. Deficiencies and inequities with broadband infrastructure highlighted during the COVID-19 pandemic undermine the growth and potential of rural businesses and education. New ramifications arise from the digital transformation of resource and service-based economies, posing challenges to achieve a just transition to a post-carbon economy that are emerging in local debates. Exacerbating these structural issues is the fact that small municipalities continue to struggle with outdated jurisdictional and fiscal powers. This puts small local governments in a precarious position as they try to cope with aging and inefficient physical and social infrastructure, while pursuing new actions such as more inclusive and engaging relationships with Indigenous communities under the United Nations Declaration on the Rights of Indigenous People (UNDRIP). While small communities seek equitable and more resilient economic pathways, the shift towards a knowledge-based, inclusive, and just economic transformation has been difficult. This is largely due to many state policies, structures, and processes remaining entrenched in the old economy. This can generate intense patterns of uneven development within and between communities and regions. In this 2024 State of Rural British Columbia report we reflect on emerging challenges and how small communities are mobilizing innovative responses to support sustainable and inclusive livelihoods. 

Overview of Rural British Columbia 

Defining Rural British Columbia 

Various thresholds have been used to study and categorize rural and small-town places in BC that reflect definitions used to shape provincial and federal policies and programs (see Table 1). Generally, small communities are defined as those with a population under 25,000. This threshold can be further divided into villages, small towns, and electoral areas with less than 5,000 people, small towns between 5,000 and 9,999 people, and small cities with populations between 10,000 and 25,000. BC’s provincial north involves areas where people may access the northern living allowance and northern resident deductions to cope with higher costs of living and more limited services. This includes Haida Gwaii, as well as mainland communities that extend from Mackenzie, north to the Yukon border.i  

Table 1 

Definitions for Rural and Small Towns in BC 

Author(s) Topic / Policy Program Area Category Thresholds for Municipalities 
Ministry of Jobs, Economic Development, and Innovationii Rural Economic Diversification Infrastructure Program Less than 2,500 2,500 – 24,999 
Province of British Columbiaiii Rural Dividends Program Small: Less than 1,000 Medium: 1,000-4,999 Large: More than 5,000 25,000 or less 
Province of British Columbiaiv Community Economic Recovery Infrastructure Program Less than 5,000 5,000-9.999 10,000-25,000 
Natural Resources Canadav Clean Energy for Rural and Remote Communities Program Less than 5,000 
Ministry of Public Safety and Solicitor Generalvi RCMP Cost-Sharing Ratio Policies Under 5,000  5,000-14,999 15,000 and over 
Statistics Canadavii Census counts Rural: Less than 1,000 Small Town: 1,000-9.999 Census Agglomeration: 10,000-99,999 Census Metropolitan Area: 100,000 and over 

Note. The definitions in Table 1 follow simple population counts. The reality of rural communities and rural life is significantly complicated by issues of distance, accessibility, and remoteness – issues long recognized through Statistics Canada’s Metropolitan Influenced Zones (MIZs). The need to refine how rural is understood from a policy perspective was reinforced in Hammond’s 2023 study identifying that while 56% of BC’s rural population is relatively close to an urban centre, more than 21% of that same population is remote and in a very different context.viii So not only do “one-size-fits-all policies” fail rural communities, but so do “one-size-fits-all rural policies.” 

Across this complex landscape, there are 162 municipalities in BC, of which, more than 80% have a population under 25,000 and are a designated part of rural BC (as shown in Figure 1 compared to the total BC population). Small communities with a population under 25,000, however, comprise just 16% of BC’s total population. Yet, these rural and small-town communities face barriers associated with municipal legislation that continues to prioritize the context of large cities.  

Figure 1 

Distribution of Municipalities in BC by number and population, 2021 

Source: Local Government Infrastructure and Finance Branch.ix 

Realities: Current Trends, Challenges, and Opportunities in Rural and Remote BC 

BC’s rural and remote regions have not been included or assisted in new strategic directions in any serious way for several decades. A recent scan of strategies, policies, and programs across multiple domains, found that less than a fifth of these targeted rural communities.x Last September, the provincial government released its latest rural development strategy that focuses investment on broadband infrastructure, transportation, affordable housing, health care services and infrastructure, workforce training, and renewing resource-based industries.xi. There are several issues, opportunities, and challenges, however, that require urgent attention as debates unfold about the future of rural BC. These reflect the unique needs and conditions of rural regions, reform pressures, various forms of restructuring, and limited local government capacity that makes it challenging for these places to be inclusive and sustainable.  

Municipal Fiscal Pressures 

One key issue across rural BC concerns how municipal fiscal pressures undermine the resiliency of small municipalities. As more responsibilities are offloaded onto municipalities, they struggle with outdated financial and legislative frameworks that ask them to become more creative and entrepreneurial, without having the appropriate resources or technical support provided to them. Rural capacity is further strained by an unpredictable provincial granting landscape that forces communities into competition and diverts attention from local priorities.  

A growing number of small municipalities are exploring entrepreneurial solutions through for-profit and social enterprises.xii Municipal entrepreneurialism refers to investments in innovative processes, regulatory actions, or enterprises to provide services or leverage economic conditions/assets to generate new local government revenues. These actions only become entrepreneurial when there is a level of risk-taking and leveraging that requires a shift in how municipalities operate. In BC, the number of administrations with municipal enterprises increased from nine in 2008 to 35 in 2019 (Figure 2). These initiatives are largely pursued by municipalities under 5,000 people.  

Figure 2  

Change in Number of Municipal Enterprises, by Municipal Size in BC: 2008-2020 

Source: Local Government Infrastructure and Finance Branch.xiii 

UNDRIP and Reconciliation Between Indigenous and Non-Indigenous Communities 

As BC strives towards more sustainable and inclusive futures, it will be critical to address the institutionalized racism and exclusion of Indigenous communities that has been perpetuated by past state policies. In 2019, the Province became the first Canadian jurisdiction to adopt the UNDRIP through legislation – a significant step toward addressing the legacies of colonization. The Declaration on the Rights of Indigenous Peoples Act is now supported by an action plan to guide the implementation of UNDRIP (2022),xiv developed through extensive consultations with Indigenous peoples. 

Digitalization 

Much of rural BC remains entrenched in resource-based economies where industries have increasingly consolidated their operations and reduced their labour force. This has produced fewer benefits for small communities through jobs, industrial property tax revenues, and other community investments. However, an even more significant transformation is unfolding through the adoption of digitalization, often referred to as the 4th Industrial Revolution.xv Digitalization refers to the use of digital assets and data through artificial intelligence, machine learning, the Internet of Things, autonomous vehicles or drones, blockchain, and other technologies to reduce costs and improve business productivity throughout the supply chain.xvi  

Some provincial governments, including BC, have been investing in new centres of excellence or digital ecosystems to encourage resource sector digitalizationxvii, xviii – something that has enormous potential to change the nature and location of resource sector jobs. As an increasing share of resource jobs can be performed through Remote Operating Centres (ROCs), these jobs will no longer require workers to reside in, or engage in long-distance labour commuting to, resource towns or sites.xix It is anticipated that new digital technologies will render numerous labour jobs and equipment operator roles obsolete.xx  

Just Energy Transition to a Post-Carbon Economy 

Municipalities are increasingly focused on adapting their infrastructure, assets, and economies to climate change. These actions build upon the BC Climate Action Charter launched in 2007, with 187 out of 190 local governments signing the charter. This commits municipalities to develop carbon-neutral corporate operations, measuring and reporting community greenhouse gas emissions, and invest in energy-efficient infrastructure.xxi This has increased local government staff workloads as they implement new policies and procedures, and document how actions are achieving targets.  

At the same time, many small towns remain locked in resource economies that are at risk from climate change and transition to a post-carbon economy. There is an urgent need to understand the complexities and challenges that come with the decarbonization of rural economies and energy systems at a time when rural regions remain structurally disadvantaged to achieve a just transition.  

Reflections: Rural Development Dynamics in BC 

Municipal Entrepreneurialism 

The future resilience of small municipalities may depend upon entrepreneurial strategies to support new pathways to economic renewal. These funds may be used to sustain municipal staff, support community groups, studies or plans, fund infrastructure projects, or to leverage as matching funds to obtain senior government grants. Such changes will better equip and position small municipalities to be responsive to the challenges and opportunities of rural change. However, there are many issues that must be considered to support the success of such endeavors. 

An example of municipal entrepreneurialism is the Burns Lake Community Forest (BLCF), which became the first community forest in BC after it was incorporated in 2001. This endeavor was important to this small community of just 1,659 that experienced industrial restructuring, a reduction in timber supply, and a mill explosion. The Village of Burns Lake provided several contributions to support early stages of the BLCF development, including up to $250,000 in hard costs and in-kind costs for legal fees, office and meeting space, administrative equipment, staff time, and consultation.xxii This included $150,000 in start-up capital from municipal reserves. On average, the BLCF provides roughly 62 full time equivalent jobs each year and between $200,000 and $300,000 in donations to support community service groups, youth programs, a forest simulator for training, a mountain bike park, and economic development staff for the Village. However, revenues have been volatile due to shifting commodity prices, the reduction in timber supply, and the COVID-19 pandemic.xxiii 

Meaningful Acts of Reconciliation Between Indigenous and Non-Indigenous Communities 

Meaningful acts of reconciliation are present throughout rural BC. Municipalities have been working in partnership with Indigenous communities to develop and expand economic opportunities as a part of reconciliation.xxiv For example, the BLCF has partnerships and board representation from the Ts’il Kaz Koh First Nation, the Wet’suwet’en First Nation, and The Office of Wet’suwet’en, an organization governed by Wet’suwet’en Hereditary Chiefs. Dividends generated from the BLCF are distributed equally amongst the Village of Burns Lake, the Ts’il Kaz Koh First Nation, and the Wet’suwet’en First Nation as the BLCF operates within their traditional territories. However, a challenge for small municipalities and their municipal enterprises is that few people understand in practice how to define and pursue the principles of free, prior, and informed consent associated with UNDRIP.  

Digitalization 

Digitalization is still in its early stages in BC, and it is unclear how comprehensive the impacts will be for various resource sectors and rural communities. To date, digitalization technologies have largely been adopted by large-scale industries engaged in extracting large volumes of resources, such as coal.xxv Mines are now looking for computer programmers, IT workers, AI developers, automation specialists, statisticians, machine learning specialists, and data scientists. For example, Teck Resources, Canada’s largest mining company, partnered with Google Cloud and Pythian to use machine learning algorithms to improve and autonomize their truck fleet operations in the rural eastern BC community, Elkview.xxvi Teck also partnered with Shaw Business and Nokia to develop the first 5G ready private network to support its RACE21 digital mine program at its Elkview operations.xxvii When it launched this program, Teck hired more than 300 new employees, all with non-traditional skills (i.e. data scientists, application developers, etc.).xxviii  

Just Energy Transition to a Post-Carbon Economy 

There are several small towns that are pursuing new initiatives associated with the post-carbon economy. The District of Port Hardy developed micro-hydro, wind, biomass, and tidal sources of low carbon energy infrastructure to attract new economic development and support regional collaborative initiatives with the nearby town of Port Alice. The City of Kimberly, in collaboration with EcoSmart and Teck Resources, built a 1-megawatt solar farm on Teck’s former mine site,xxix which was sold to Teck Resources in 2019. However, we continue to know little about the differences between rural communities engaged in the post-carbon economy transition and those which are not. In particular, more information is needed to better understand the uneven power and governance dynamics that may be shaping future resilience and transition across rural regions. 

Final Thoughts 

There are complex challenges associated with a more inclusive and decarbonized economy in rural BC. Rapidly changing policy and governance dynamics have challenged the adaptive capacity of rural communities. Outdated provincial legislation and fiscal frameworks are not supporting the current capacity and partnership development required at all levels (e.g. rural-rural, rural-urban, municipal-Indigenous). As municipalities are encouraged to be more entrepreneurial, more outreach and logistical support is needed for smaller municipalities – especially during the early stages of enterprise development. That said, many of the core infrastructure challenges facing rural communities require continued senior government engagement and funding commitments. There is also an urgent need to understand the post-carbon transition and how it will be implemented in under-resourced communities where processes of change exacerbate uneven development and risks through transition. Perhaps most significantly, as rural communities engage with reconciliation, the provincial government should provide guidance and support about how to move UNDRIP principles into practice and advance collaborative governance structures. Moving forward, the key for small communities across BC will be to understand processes of change, mobilize to adapt to those changes, and plan forward for more resilient economies and sustainable communities. 

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