Since the days of the fur trade, British Columbia's economy has been based on
natural resources, particularly fishing, logging and mining. From the canneries to the mills and mines, BC's resource sector was increasingly the domain of large commercial interests. With industrialization and economic growth, workers arrived to join in the seemingly boundless prosperity. Increasingly, these workers came from Asia as well as Europe. The mix of cultures and diversity was a source of strength, but also, often, of conflict. The early part of the 20th century was a time of great change and talk between immigrants and the
First Nations, all of whom found their lives changing rapidly.
Rise of the labour movement in Vancouver, June 1935 The dominance of the economy by big business was accompanied by an often militant
labour movement. The first major sympathy
strike was in 1903 when railway employees struck against the CPR for union recognition. Labour leader Frank Rogers was killed while picketing at the docks by CPR police during that strike, becoming the British Columbia movement's first martyr. Canada's first general strike occurred following the death of another labour leader,
Ginger Goodwin, in 1918, at the
Cumberland coal mines on Vancouver Island. A lull in industrial tensions through the later 1920s came to an abrupt end with the
Great Depression. Most of the 1930s strikes were led by
Communist Party organizers. That strike wave peaked in 1935 when unemployed men flooded the city to protest conditions in the relief camps run by the military in remote areas throughout the province. After two tense months of daily and disruptive protesting, the
relief camp strikers decided to take their grievances to the federal government and embarked on the
On-to-Ottawa Trek, but their commandeered train was met by a gatling gun at
Hatzic, just east of
Mission City, and the strikers arrested and interned in work camps for the duration of the Depression.
Race and ethnic relations At the time that BC was settled the ideology of the
British Empire, and of many of its colonial settlers was based on an assumption of superiority, often racial superiority based on the pseudo-science of Race. Racism and a desire to create a white colony were widespread. The scientific thinking of
Charles Darwin was used to develop a theory of the races, known as
social Darwinism, which is today completely discredited. Under this ideology, restrictive laws were passed, by both federal and provincial levels of government. The
potlatch ban outlawed First Nations cultural and spiritual practices, non-white people were denied the vote – specifically First Nations, Chinese, Indians, and Japanese people. During the 20th century, many immigrant groups arrived in British Columbia and in the 21st centuray, Vancouver is the second most ethnically diverse city in Canada, after Toronto. Vancouver, in particular, has a long history of Chinese and Indian settlement; today, ethnic
Chinese and
Indians form over 30 percent of the city's population. In 1886, a
head tax was imposed on the
Chinese, which reached as much as $500 per person to enter Canada by 1904. By 1923 the government passed the
Chinese Immigration Act, which prohibited all Chinese immigration until 1947.
Sikhs from
British India had to face an amended Immigration Act in 1908 that required
Indians to have $200 on arrival in Canada, and immigration would be allowed only if the passenger had arrived by continuous journey from India, which was impossible. Perhaps the most famous incident of anti-Indian racism in BC was in 1914 when the
Komagata Maru arrived in Vancouver Harbour with 376
Punjabi Sikhs,
Muslims, and
Hindus aboard, of whom only 20 were allowed entry. The
Komagata Maru spent two months in the harbour while the
Khalsa Society went through the courts to appeal their case. The Khalsa Society also kept the passengers on the
Komagata Maru alive during those two months. When the case was lost, , a
Royal Canadian Navy cruiser, escorted the
Komagata Maru out to sea while thousands of Caucasians cheered from the seawall of
Stanley Park.
Interwar period and World War II Alcohol was prohibited in British Columbia from 1917 to 1921. A referendum in 1916 asked BC citizens whether they approved of making alcohol illegal (the other question was whether women should have the right to vote). The contested results rejecting
prohibition led to a major political scandal that subsequently saw the referendum being overturned and alcohol prohibited. However, by 1921, the failures of prohibition were so apparent—a thriving black market, arbitrary (often class- and race-based) enforcement and punishment, rampant corruption—that alcohol was established as a commodity subject to government regulation and taxation as it is today. US prohibition in the 1920s and early 1930s led to a thriving business of producing and smuggling alcohol to quench the thirst of BC's southern neighbours. Many of Vancouver's richest families built or consolidated their fortunes in the rum-running business. Some compare today's robust
cannabis-growing industry in BC to this earlier era. for
Japanese Canadians during
World War II The end of the 1920s and the end of prohibition in the US, combined with the onset of the
Great Depression, plunged the province into economic destitution during the 1930s. Widespread unemployment among veterans was hardened by many of the available jobs being taken by European immigrants and disgruntled veterans organized a range of "soldier parties" to represent their interests. These were variously named Soldier-Farmer, Soldier-Labour, and
Farmer-Labour Parties. These formed the basis of the fractured labour-political spectrum that would generate a host of fringe political parties, including those who would eventually form the
Co-operative Commonwealth Federation and the early
Social Credit splinter groups. Compounding the already dire local economic situation, tens of thousands of men from colder parts of Canada moved into Vancouver, creating huge
hobo jungles around
False Creek and the Burrard Inlet
rail yards. This included the old Canadian Pacific Railway mainline
right-of-way through the heart of
Downtown Vancouver. Increasingly desperate times led to intense political efforts, an occupation of the main post office at
Granville and
Hastings, which was violently put down by the police, and an effective imposition of
martial law on the docks for almost three years due to the
Battle of Ballantyne Pier. A Vancouver contingent for the
On-to-Ottawa Trek was organized and seized a train, which was loaded with thousands of men bound for the capital but was met by a
Gatling gun straddling train tracks at
Mission. All the men were arrested and sent to work camps for the duration of the Depression. There were signs of an economic return towards the end of the 1930s, and the onset of World War II transformed the national economy, ending the Depression. '', a photo taken by
Claude P. Dettloff of the
British Columbia Regiment marching in
New Westminster, October 1940 British Columbia's location on the Pacific Ocean has resulted in closer relations with
East Asia and
South Asia. These relations have often caused friction between cultures which has sometimes escalated into racist animosity towards those of Asian descent. This was manifest during the Second World War when many people of
Japanese descent were relocated or interned in the
Interior region of the province. A
Pacific Command was created in 1942 also and was disbanded in 1945. During the war, a range of coastal defences were constructed, including harbour defences for Vancouver. Today's
Museum of Anthropology at UBC sits atop the foundation for gun batteries that were used to command Vancouver Harbour approaches. Militia units from southern BC provided cadres for many regiments that eventually fought in Europe. The
Rocky Mountain Rangers sent a battalion to fight the Japanese in the
Battle of the Aleutian Islands in 1943. Thousands more British Columbians volunteered for the
Royal Canadian Navy and
Royal Canadian Air Force. Two soldiers,
Ernest Alvia Smith and
John Keefer Mahony, were awarded the Victoria Cross for actions with BC-based regiments in Italy.
Coalition and the post-war boom During World War II the mainstream
BC Liberal and
BC Conservative parties united in a formal
coalition government under new Liberal leader
John Hart, who replaced
Duff Pattullo when the latter failed to win a majority in the
1941 election. While the Liberals won the most seats, they actually received fewer votes than the socialist
Co-operative Commonwealth Federation (CCF). Pattullo was unwilling to form a coalition with the rival Conservatives led by
Royal Maitland and was replaced by Hart, who formed a coalition cabinet made up of five Liberal and three Conservative ministers. Johnson achieved popularity for flood relief efforts during the 1948 flooding of the Fraser Valley, which was a major blow to that region and to the province's economy. On 13 February 1950, a
Convair B-36B crashed in northern British Columbia after jettisoning a
Mark IV atomic bomb. This was the first such
nuclear weapon loss in history. Increasing tension between the Liberal and Conservative coalition partners led the Liberal Party executive to vote to instruct Johnson to terminate the arrangement. Johnson ended the coalition and dropped his Conservative cabinet ministers, including deputy premier and finance minister Herbert Anscomb, precipitating the
general election of 1952. A referendum on electoral reform prior to this election had instigated an elimination ballot (similar to a
preferential ballot), where voters could select second and third choices. The intent of the ballot, as campaigned for by Liberals and Conservatives, was that their supporters would list the rival party in lieu of the CCF, but this plan backfired when a large group of voters from all major parties, including the CCF, voted for the Social Credit Party, who won the largest number of seats in the House (19), one seat ahead of the CCF, despite the CCF having 34.3 percent of the vote to Social Credit's 30.18 percent. The Social Credit Party, led by rebel former Conservative MLA
W. A. C. Bennett, formed a
minority government backed by the Liberals and Conservatives (with 6 and 4 seats respectively). Bennett began a series of fiscal reforms, laying the groundwork for a
second election in 1953 in which the new Bennett administration secured a majority of seats. Bennett then returned the province to the first-past-the-post system thereafter, which is still in use.
1952–1960s With the election of the Social Credit Party, British Columbia embarked on a phase of rapid
economic development. Bennett and his party governed the province for the next twenty years, during which time the government initiated an ambitious program of infrastructure development. This was fuelled by a sustained economic boom in the forestry, mining, and energy sectors. During these two decades, the government
nationalized British Columbia Electric and the British Columbia Power Company, as well as smaller electric companies, renaming the entity
BC Hydro.
West Kootenay Power and Light remained independent of BC Hydro, being owned and operated by
Cominco, though tied into the regional power grid. By the end of the 1960s, several major dams had been begun or were completed in—among other locations—the
Peace, Columbia, and
Nechako River watersheds. Major transmission deals were concluded, most notably the 1961
Columbia River Treaty between Canada and the United States, which required the building of three large dams in British Columbia in return for financial compensation related to US hydroelectric power production enabled by the dams. The dams flooded large areas within British Columbia but would prove to be a very stable and renewable source of power for the province. The province's economy was also boosted by unprecedented growth in the forestry sector, as well as oil and gas development in the province's northeast. The 1950s and 1960s were also marked by development of the province's transportation infrastructure. In 1960, the government established
BC Ferries as a
crown corporation to provide a marine extension of the provincial highway system. The ferry system was also supported by federal grants as being part of the
Trans-Canada Highway system. The highway system was improved and expanded through the construction of new highways and bridges, and paving of existing highways and provincial roads. Vancouver and Victoria became cultural centres as poets, authors, artists, musicians, as well as dancers, actors, and
haute cuisine chefs flocked to their scenery and warmer temperatures, with the cultural and entrepreneurial community bolstered by many
Vietnam war draft dodgers from the United States. Tourism also played a role in the economy. The rise of the Japanese economy and other Pacific economies was a boost to British Columbia's economy, primarily because of exports of lumber products, minerals, and metallurgical coal. Politically and socially, the 1960s brought a period of social volatility. The divide between the
political left and right, which had prevailed in the province since the Depression and the rise of the
labour movement, sharpened as
free enterprise parties coalesced into the de facto coalition represented by Social Credit—in opposition to the
social democratic New Democratic Party (NDP), the successor to the Co-operative Commonwealth Federation. As the province's economy blossomed, so did labour–management tensions. Tensions emerged, also, from the counterculture movement of the late 1960s, of which Vancouver and Nanaimo were centres. The conflict between
hippies and
Vancouver mayor Tom Campbell culminated in the
Gastown riots of 1971.
1970s and 1980s On 27 August 1969, the Social Credit Party was re-elected in a general election for what would be Bennett's final term in power. At the start of the 1970s, the economy was strong because of rising coal prices and an increase in the size of the forestry sector; however, BC Hydro reported its first loss since founding. The Social Credit Party was forced from power in the August 1972 election, paving the way for a provincial NDP government under
Dave Barrett. Under Barrett, the large provincial surplus soon became a deficit, although changes to the accounting system makes it likely some of the deficit was carried over from the previous Social Credit regime and its "
two sets of books", as W.A.C. Bennett had once referred to his system of fiscal management. The brief three-year period of NDP governance brought several lasting changes to the province, most notably the creation of the Agricultural Land Reserve, intended to protect farmland from redevelopment, and the
Insurance Corporation of British Columbia, a crown corporation charged with providing single-payer basic automobile insurance. Perceptions the government had instituted reforms either too swiftly or that were too far-reaching, coupled with growing labour disruptions, led to the defeat of the NDP in the
1975 general election. Social Creditunder W.A.C. Bennett's son,
Bill Bennettwas returned to office. Under the younger Bennett's government, 85 percent of the province's land base was transferred from government reserve to management by the Ministry of Forests, reporting of deputy ministers was centralized to the Premier's Office, and NDP-instigated social programs were rolled back. During the 1975 Social Credit administration, certain money-losing Crown-owned assets were privatized in a selling of shares in the
British Columbia Resources Investment Corporation, with the "Brick shares" soon becoming near-worthless. Towards the end of his tenure in power, Bennett oversaw the completion of several
megaprojects meant to stimulate the economy. Most notable of these was the winning of a world's fair for Vancouver, which came in the form of
Expo 86; to which was tied the construction of the
Coquihalla Highway and Vancouver's
SkyTrain system. The Coquihalla Highway project became the subject of a scandal after revelations that the premier's brother bought large tracts of land needed for the project before it was announced to the public. This was also because of graft investigations of the huge cost overruns on the project. Both investigations were derailed in the media by a still further scandal, the
Doman Scandal, in which the premier and millionaire backer Herb Doman were investigated for insider-trading and
securities fraud. The Social Credit Party was re-elected in 1979 under Bennett, who led the party until 1986. was one of the legacies of the
Expo 86 world's fair, though creation of the
toll highway sparked controversy. Tolling was removed in 2008. As the province entered a sustained
recession, Bennett's popularity and media image were in decline. On 1 April 1983, Premier Bennett overstayed his constitutional limits of power by exceeding the legal tenure of a government, and the lieutenant governor,
Henry Pybus Bell-Irving, was forced to call Bennett to
Government House to resolve the impasse. An election was called for 30 April 1983. In the meantime, government cheques were covered by special emergency warrants as the
Executive Council no longer had signing authority because of the crisis. Campaigning on a platform of moderation, Bennett won a majority in the election. After several weeks of silence in the aftermath, a sitting of the
House was finally called. In the
speech from the throne, the Social Credit Party announced a program of fiscal cutbacks. The program contained controversial budget cuts, which sparked public demonstrations which, through the course of a summer, drew large demonstrations of up to 100,000 people. This became known as the 1983
Solidarity Crisis. A grassroots opposition movement mobilized, consisting of organized labour and community groups, with the
British Columbia Federation of Labour forming a separate organization of unions,
Operation Solidarity. This was directed by
Jack Munro, then-president of the
International Woodworkers of America (IWA), the most powerful of the province's resource unions. The movement collapsed after an apparent deal was struck by Munro and Premier Bennett. A tense winter of blockades at various job sites around the province ensued, as among the new laws were those enabling non-union labour to work on large projects. There were other sensitive labour issues, such as companies from Alberta and other provinces being allowed to compete with unionized British Columbia companies. Despite the tension, Bennett's last few years in power were relatively peaceful. Economic and political momentum grew because of the mega-projects associated with
Expo 86, and Bennett was to end his career by hosting
Prince Charles and
Lady Diana on their visit to open Expo 86. After his retirement was announced, a Social Credit Party convention was scheduled at Whistler Resort, which would decide the leader of the party after his retirement. Entrepreneur and former mayor of Surrey Bill Vander Zalm became the new Social Credit Party leader, and led the party to victory in the election later that year. A series of scandals forced Vander Zalm's resignation, and
Rita Johnston became premier of the province. Johnston presided over the end of Social Credit power, calling an election which reduced the party's caucus to only two seats. This caused the revival of the long-defunct British Columbia Liberal Party as Opposition to the victorious NDP under former Vancouver mayor
Mike Harcourt. In 1988,
David Lam was appointed as British Columbia's twenty-fifth lieutenant governor, and was the province's first lieutenant governor of Chinese origin.
1990s The New Democratic Party (NDP) won the
1991 general election. The NDP's creation of new parkland and protected areas was popular and helped boost the province's growing
tourism sector, although the economy continued to struggle against the backdrop of a weak resource economy. Housing starts and an expanded service sector saw growth overall through the decade, despite political turmoil. The NDP won
a second term in 1996. Scandals damaged the party, most notably the
fast ferry scandal involving the province trying to develop the shipbuilding industry. ==21st century==