It's a structural problem and it is homemade. If you ask me I would:
1) Make it VERY attractive for foreign companies to settle, this involves small businesses.
The opposite took place, overblown bureaucazy, the minimum investment levels continuously increased, one road block after the other. Try to settle a company operating in more than one province, good luck with that. There might be good intentions to protect home industries but it is better to have three bad companies die and one good one become prosperous.
2) Make it very attractive for foreign qualified personal to settle (every country needs meds, engineers, experts).
The opposite took place, Permanent Residency requirements went through the roof, MLO required for work permits, citizenship applications backlog etc. Become a P.Eng or doctor in a province -> go back to school no matter of your education and/or experience level. What a waste of resources!
3) Become a country not a bunch of individual operating provinces.
The opposite happened, HST failed (some provinces started to charge add'l provincial tax again), the western provinces and Quebec are driving separation. Not even a P.Eng in Ontario can practice in NB or vise versa (or any other than his home province), you have to go to an exam. How stupid is this and what a waste of resources and efforts.
Everybody in this country just stakes his claims, like in the past century and the government is supporting this by laws (e.g. Engineering Act of Ontario). Canada will not be able to compete internationally in the long term with these procedures in place and will become more and more dependent from the US. A 53'rd state...
Don't get me wrong, I love Canada for it's beauty, for its traditions, for its wonderful people -incl. us, the immigrant aliens, but not for it's government, which is corrupt and a gang of lobbyists. So that's why we need to make it better!
My 2c.
mike