The Staples Thesis: Fur, Fish and Timber

How economist Harold Innis argued Canada's development was shaped by exporting raw "staples" like fur, cod, timber and wheat, and the risks of staple dependence.

Economic historian Harold Innis developed the staples thesis in the 1920s-30s.

The idea

Canada’s economy developed around exporting a series of staples (raw commodities) to Europe and later the US:

Cod from the Atlantic.
Fur through the Hudson’s Bay Company (founded 1670).
Timber.
Wheat from the Prairies.
Later minerals, oil and gas.

Effects

Each staple shaped transport routes, settlements and institutions.
Canada relied on foreign markets and capital.

Staple trap

Economists warned of a “staple trap”: relying on raw exports without developing diverse industries.
Commodity price swings cause booms and busts.

Legacy

Canada remains a major resource exporter, but it developed a diverse services economy.

Relevance

The idea applies to many resource exporters today.

The fur trade

In the 1700s, Hudson's Bay Company traders exchanged goods for beaver pelts, which were shipped to Europe to make hats.

Thinking resource exports automatically bring diverse industry

Innis warned of staple dependence.

Key takeaways

Harold Innis developed the staples thesis.
Canada developed around fur, fish, timber and wheat exports.
Staples shaped transport and institutions.
A staple trap risks commodity dependence.