KEI Network - SPECIAL EDITION - From Rupture to Renewal

Editor - Perry Kinkaide

I was impressed with Mark Carney's economic savvy. Yesterday Canada's Prime Minister gave a speech in which he acknowledged the need for change - that the global economy is ruptured, that the US was no longer a dependable partner, and that technology was a disruptive force to be embraced, not ignored. Most impressive were the measures cited that if executed will transform Canada's economy!!! 

Canada - From Rupture to Renewal

On September 5, 2025, Prime Minister Mark Carney delivered a landmark speech in Mississauga, Ontario declaring that the global economy is no longer in transition but has been ruptured. He argued that nations can no longer rely on old assumptions — Canada
must embrace massive change to protect its people and prosper in the new economy.
The Causes of Rupture: Technology and Trade. Carney identified the forces driving
the rupture:

• Technological change – Automation, AI, and digital supply chains are dismantling traditional models of production and trade.
  
• Economic disruption – Escalating tariffs, especially from the U.S., have destabilized industries long dependent on a single market for exports such as steel, autos, lumber, and aluminum.

Carney’s Measures: Going Big for Better. Carney’s industrial strategy acknowledged the fracturing of Canada's economy and continuing decline in productivity, that goes beyond
tariff relief, aiming to reshape the Canadian economy and society. Key commitments
include:

1. Strategic Response Fund (C$5B) – Direct support for sectors hit by tariffs,
helping firms retool and diversify.

2. “Buy Canadian” Procurement Overhaul – A sweeping reform to ensure
federal purchasing prioritizes Canadian-made products and content.

3. Regulatory Modernization – Adjusting frameworks to protect Canadian
industries while fostering innovation.

4.  Jobs and the Future Economy – Investments in retooling and reskilling
programs to prepare workers for a technology-driven economy.

5.  Housing and Construction – A major push to accelerate affordable housing
supply, recognizing construction as both an economic driver and a social
necessity.

6.  Safety and Bail Reform – Addressing public safety by tightening bail
provisions, reinforcing trust in communities shaken by rising insecurity.

7. Quality of Life – An overarching pledge that industrial policy will be judged not
only by growth but by whether it improves the lives of Canadians.

8. EV Mandate Pause and Review – A pragmatic 60-day evaluation of zero-emission
vehicle sales targets to reduce industry strain during trade disruption.

Where the Strategy Falls Short: Fusion and Future Tech. Despite its breadth, the
plan continues to overlook fusion energy — a transformative technology central to long-
term economic resilience. Canada lags its G7 peers in committing to fusion
commercialization, even though its potential for clean, limitless energy could underpin AI-driven industries, stabilize power grids, and secure leadership in the global energy
transition.

KEI and its predecessor ABCtech have repeatedly emphasized that without bold
investment in fusion and other frontier technologies, Canada risks falling behind while
others capture the rewards. (Note. The Prime Minister and his cabinet are in Edmonton
this week. Stay-tuned as “energy” – overlooked in the speech, may yet get some air-
time.)

KEI’s Perspective: Alignment and Gaps. Carney’s measures reflect many of KEI’s
long-standing priorities:

• Diversification – echoed in tariff response funding.
• Procurement reform – directly aligned with “Buy Canadian.”
• Youth and continuous learning – addressed through reskilling commitments.
• Decarbonization – recognized by recalibrating EV mandates and introducing a Canola for bio-fuels initiative.
• Quality of life as a policy metric – aligned with KEI’s call for inclusive innovation.
  

Yet the absence of a fusion strategy and a stronger commitment to emerging
technologies leaves a gap in Canada’s future competitiveness.

“Innovation, Emerging Technologies, and the New Economy.” The KEI Network’s AI and OUR Future series will conclude on September 28, 2025, after months of exploring how AI is reshaping productivity, caring professions, safety, and society. Building on that momentum, KEI will launch its next series. extending the conversation, investigating the critical importance of Canada committing to innovation and change management for ensuring the technological breakthroughs in emerging technologies translating into jobs, security, and prosperity.

Bold, But Not Bold Enough. Carney’s speech was bold in acknowledging rupture and
ambitious in committing to jobs, housing, safety, and procurement reform. It reflected
much of what KEI has long advocated: diversification, innovation, and strategic national
policy. But going big for better requires looking further ahead — to fusion and the emerging
technologies that will define not just the next decade, but the next century. KEI will
continue pressing for this vision, ensuring Canada not only adapts to disruption but
shapes the new economy now in formation. 

- Editor, KEI Network 

From rupture to renewal: advancing innovation and resilience.