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New approaches to strengthen business in Canada and Canadian business internationally. The need for strategic alliances that bring together business, labour, education, and government. Challenges in the 90s and beyond. Concerns for the Canadian economy. Canada's position in the G7 nations in terms of productivity and unemployment. Federal and provincial debts. Deficit financing and its cost. The trend toward "fewer and larger" in industries competing at a global level. The Japan experience; Japan as a "Best Practices" country. What we can learn from the Japanese experience. Canada's low ranking in the 1991 World Competitiveness Report. Some solutions, illustrated by examples from the Spar Aerospace experience. How Canada benefits from such strategies. Some conclusions supported by current studies underway for the Ontario Premier's Council for Economic Renewal. The concept of strategic clustering. Four suggested guidelines for creating strategic alliances in Canada. Restrictions such as Bank Act. New approaches of co-operation. The need for support from government, business, labour, community and education leaders. Endorsement by financial institutions and knowledge industries. Public support and confidence.