THE CONSEQUENCES OF FOREST-DEPENDENCE FOR THE ECONOMIC GROWTH AND SOCIOECONOMIC DEVELOPMENT OF HOUSTON, BRITISH COLUMBIA by MARC D. STEYNEN B.Sc., UNIVERSITY OF NORTHERN BRITISH COLUMBIA, 2003 THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN NATURAL RESOURCES AND ENVIRONMENTAL STUDIES THE UNIVERSITY OF NORTHERN BRITISH COLUMBIA MARCH, 2010 ©MARC D. 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The author retains copyright L'auteur conserve la propriete du droit d'auteur ownership and moral rights in this et des droits moraux qui protege cette these. Ni thesis. Neither the thesis nor la these ni des extraits substantiels de celle-ci substantial extracts from it may be ne doivent etre imprimes ou autrement printed or otherwise reproduced reproduits sans son autorisation. without the author's permission. In compliance with the Canadian Conformement a la loi canadienne sur la Privacy Act some supporting forms protection de la vie privee, quelques may have been removed from this formulaires secondaires ont ete enleves de thesis. cette these. While these forms may be included Bien que ces formulaires aient inclus dans in the document page count, their la pagination, il n'y aura aucun contenu removal does not represent any loss manquant. of content from the thesis. I+I Canada APPROVAL NAME: MARC D. STEYNEN DEGREE: MASTER OF SCIENCE THESIS TITLE: THE CONSEQUENCES OF FOREST-DEPENDENCE FOR THE ECONOMIC GROWTH AND SOCIOECONOMIC DEVELOPMENT OF HOUSTON, BRITISH COLUMBIA EXAMINING COMMITTEE: CHAIR: SUPERVISOR: COMMITTEE MEMBER: COMMITTEE MEMBER: EXTERNAL EXAMINER: DATE APPROVED: Abstract This thesis examines whether forest harvesting and processing is a viable strategy for the continued economic growth and socioeconomic development in small forest-based places in British Columbia (BC). This strategy is widely employed despite the fact that BC's forest economy has struggled to manage the effects of economic, political, and resource related change for over three decades. Restructuring and change have now reduced the economic advantages originally associated with forest-dependence for many BC communities, and Houston, BC is one of many examples. In the 1970s, forest-dependence created substantial economic growth for Houston, but since that time, the community has experienced instability, uncertainty, and a limited range of economic and social benefits as a result of forest-dependence. The research indicates that forest-dependence has limited Houston's economic and socioeconomic development. Furthermore, this research found that the economic model used in Houston has failed to produce the economic benefits of the past and has not supported the socioeconomic development necessary to sustain the community into the future. ii Table of Contents Abstract ii Table of Contents iii List of Maps v List of Figures v List of Tables v Acknowledgments vi CHAPTER 1: INTRODUCTION 1 1.1 Introduction 1 1.2 Thesis Organization 2 1.3 Conclusion 4 CHAPTER 2: LITERATURE REVIEW 5 2.1 Introduction 5 2.2 Canada's Political Economy 6 2.3 British Columbia's Forest Economy 7 2.3.1 Fordism and the BC Forest Economy 9 2.4 Theories of Dependency 11 2.4.1 The Core and the Periphery 14 2.4.2 External Control and Unequal Exchange 17 2.4.3 Economic Restructuring and Change 20 2.5 Forest-Dependence 22 2.6 Forest-Dependence in British Columbia 25 2.7 Forest-Dependent Communities 28 2.7.1 Community Stability 29 2.7.2 Community Capacity 32 2.7.2.1 Social Cohesion 34 2.7.3 Community Resilience 35 2.8 Conclusion 36 CHAPTER 3: CONTEXT 3 8 3.1 Introduction 38 3.2 Geography 38 3.3 History 39 3.4 The Forestry Economy in British Columbia's Interior 42 3.5 Houston's Forestry Economy 44 3.6 Census Information 48 3.6.1 Population and Demographics 48 3.6.2 Family Structure 51 3.6.3 Occupations and Earnings 51 3.6.4 Culture 55 3.7 Change 56 3.7.1 Industry Restructuring 56 3.7.2 Government Restructuring 57 3.7.3 Ecological Change 58 3.7.4 Economic Change 59 3.8 Conclusion 60 CHAPTER 4: METHODOLOGY 61 4.1 Introduction 61 4.2 Research Approach 61 4.2.1 The Study Place 63 4.3 Quantitative Data 65 4.4 Qualitative Data 67 4.5 Data Analysis 72 4.5.1 Manifest Content Analysis 73 4.5.2 Latent Content Analysis 74 4.6 Triangulation 74 4.7 Conclusion 75 CHAPTER 5: ANALYSIS 77 5.1 Introduction 77 5.2 Economic Growth 77 5.2.1 Economic Growth in Houston's Forest Industry 78 5.2.2 Economic Growth in Houston 83 5.2.3 Summary 89 5.3 Forest-Dependence and Economic Growth 90 5.3.1 Single-Industry Dependence 91 5.3.2 Boom-and-Bust 94 5.3.3 Control 96 5.3.4 Industry Control 97 5.3.5 External Control 101 5.3.6 Unequal exchange 102 5.3.7 Summary 107 5.4 Forest-Dependence and Socioeconomic Development 107 5.4.1 Stability, Good Times, and Change 108 5.4.2 Culture 111 5.4.3 Attitude 114 5.4.4 Complacency and Apathy 117 5.4.5 A Sense of Community 124 5.4.6 Social Cohesion 127 5.4.7 Summary 130 5.5 Implications for Socioeconomic Development 131 5.5.1 Visioning and Planning 131 5.5.2 Capacity 134 5.5.3 Resilience 136 5.5.4 Summary 137 5.6 Conclusion 138 CHAPTER 6: DISCUSSION 139 6.1 Introduction 139 6.2 Forest-Dependence and Economic Growth 139 6.2.1 Portrait of Economic Growth 140 6.2.2 The Implications of Economic Growth 143 6.2.3 The Economic Model 147 6.3 Forest-Dependence and Socioeconomic Development 149 6.3.1 Portrait of Socioeconomic Development 149 6.3.2 The Fagade of Paternalism 152 6.3.3 Perception, Belief, and Attitude as Barriers 154 6.3.4 Culture as a Barrier 157 6.4 Implications for the Future 159 6.5 Conclusion 163 CHAPTER 7: CONCLUSIONS 166 7.1 Thesis Summary 166 7.2 Research Implications 167 7.3 Future Research Questions 172 7.4 Conclusion 175 BIBLIOGRAPHY 176 IV Appendix 1: Chronology for Houston, British Columbia, 1865-2008 191 Appendix II: Community Groups and Other Organizations in Houston 198 Appendix III: Content Analysis Latent Codes 198 Appendix IV: Interview Consent Form, Interview Script, Interview Matrix, and Ethics Approval 206 List of Maps MAP 3.1: LOCATION OF HOUSTON, BRITISH COLUMBIA 40 List of Figures FIGURE 3.1: POPULATION CHANGE IN HOUSTON, 1961-2006 48 FIGURE 3.2: AGE PYRAMID FOR HOUSTON IN 2006 52 FIGURE 5.1: LUMBER PRODUCTION AT HOUSTON'S SAWMILLS, 1972-2008 78 FIGURE 5.2: TIMBER HARVEST IN THE MORICE TSA, 1979-2008 80 FIGURE 5.3: REVENUE VALUE FOR TIMBER HARVESTED IN THE MORICE TSA, 1979-2008 82 FIGURE 5.4: AVERAGE ANNUAL PRICE FOR NORTH AMERICAN WESTERN SPRUCE PINE FIR 2X4'S, GRADE 2 AND BETTER, 1977-2008 83 FIGURE 5.5: POPULATION OF HOUSTON, 1951-2006 84 FIGURE 5.6: MEDIAN INCOME IN HOUSTON, 1981-2006 88 List of Tables TABLE 3.1: ANNUAL ALLOWABLE CUT BY LICENCE TYPE FOR THE MORICE TSA IN 2009 47 TABLE 3.2: DEMOGRAPHIC CHANGE IN HOUSTON, AGE 20-34 COHORT 49 TABLE 3.3: EDUCATIONAL ATTAINMENT IN HOUSTON, 1996-2006 50 TABLE 3.4: LABOUR FORCE BY INDUSTRY IN HOUSTON IN 2006 52 TABLE 3.5: AVERAGE AND MEDIAN INCOMES FOR HOUSTON 53 TABLE 3.6: LABOUR & UNEMPLOYMENT RATES FOR HOUSTON AND BC 54 TABLE 3.7: HOUSTON'S LABOUR FORCE BY INDUSTRY, 1996-2006 55 TABLE 4.1: NORTHERN BC COMMUNITIES WITH GREATER THAN 25 PERCENT FOREST-DEPENDENCE BY PROPORTIONAL EMPLOYMENT 64 TABLE 4.2: REVISED LIST OF NORTHERN BC COMMUNITIES SUITABLE FOR THIS STUDY 64 TABLE 4.3: INTERVIEWEE BACKGROUND BY SECTOR 68 TABLE 4.4: INTERVIEWEE LENGTH OF RESIDENCE IN HOUSTON 69 TABLE 5.1: TIMBER VOLUME HARVESTED IN THE MORICE PSYU, 1973-1979 79 TABLE 5.2: MOBILITY STATUS IN HOUSTON, 1976-2006 85 TABLE 5.3: NUMBER AND PERIOD OF HOUSE CONSTRUCTION IN HOUSTON, 1946-2005 86 TABLE 5.4: AVERAGE VALUE OF HOUSES IN HOUSTON, 1981-2006 86 TABLE 5.5: HOUSTON'S LABOUR FORCE BY INDUSTRY, 1975-2008 87 v Acknowledgments This has been a valuable learning experience which was made possible through the assistance of many people at the University of Northern British Columbia, the University of British Columbia, and the community of Houston. I'd like to specifically thank the following supervisors, colleagues, acquaintances, and family that contributed their time and effort to the successful completion of this thesis. Thank you, Dr.Greg Halseth for his support, guidance, experience and intellectual contributions to this thesis.