Canada has always been rich in resources. From the fur trade supporting the creation of British North America to today’s oil revenue, the people north of the 49th parallel have been blessed with a powerful economic base. While the state of Israel was founded in a land lacking in even the most basic resource – water.

These differences have helped propel the two nations in different directions. In Canada, the federal government has always been guaranteed a basic level of revenue from natural resources. Provincial governments also ride the resource wave, albeit with a more cyclical nature due to the limited pool of resources in each region. 

In Israel the lack of resources has forced innovation to create a state with a relatively high standard of living. For example, in response to the lack of water for agriculture, Israeli firms developed innovative ways to irrigate.

Tonight's interview with Bernard Avishai of the Hebrew University of Jerusalem outlines the start-up culture in Israel and how in a world increasingly driven by technical innovation Israel is well placed. While Les Horswill, author and former CEO of Hydro One Remotes, calls on Canada to consider a union with the Untied States in order to further develop our economy.

Our high standard of living is in part a result of a steady stream of resource booms, so as Canadians we should be conscious of a potentially mistaken belief that this success is simply a result of us being smart and innovative. Having a rational understanding of what we are and are not will help us construct a path to greater prosperity.

Israel with all its innovation still has a lower standard of living than Canada. Clearly the ongoing conflict plays a role, but a lack of resources also puts them at a fundamental disadvantage.

The role of resources in an economy is far from black and white as some resource rich nations are also some of the poorest and a discussion on resource dependence is something Canadians have been examining for generations.

Canada is fortunate to have an abundance of resources but this wealth should not distract us from working to ensure a more diverse economy.