Economic and social community and individual capacity building requires a partnership approach that links different levels of government, public institutions, community organizations and business. Moreover, any development strategy, whether addressing the access divide, literacy and skills training, or other forms of capacity development, benefits by being founded on a comprehensive needs assessment that considers the particular economic and social factors, abilities and opportunities in a community or region. While many communities across Canada have similar obstacles and challenges, the opportunities and capacities of individuals and communities to respond to these will vary greatly depending on the their social and economic contexts.

While the New Economy activities account for substantial growth in the overall economy, these still account for a minority of all economic activity. The remainder consists of traditional industries that are increasingly using new technologies to increase productivity and competitiveness (for example, mining, forestry, manufacturing, etc.).¹⁵ The majority of Canadians are expected to work in the modernized traditional industries as opposed to becoming part of the core information economy workers.¹⁶ For most communities and individuals, capacity development will be built on the existing base of social and economic activities, rather than making a radical departure or displacement to new information services. This means that a common model imposed from outside will not likely be viable (for example, thinking of an earlier era in Canada’s development, not every person or community can grow Canola. Similarly, the successful development of economic and social activities and services, including those as part of the new information society, will in large part be informed by local factors and resources, and will need to evolve from these. Capacity development, therefore, involves both traditional and new economic and social activities.As an example of the importance of the need to consider capacity development in broader terms than an Information Society, the federal government has identified skills development and life-long learning as major policy goals in response to a looming crisis in Canada whereby a shortage of skilled workers may exist in the future in a range of sectors, including the trades, and for small and medium sized business.

In another example, the Province of Newfoundland and Labrador has developed a very progressive and detailed strategy for social development that is linked to, and fosters, economic development. The strategy focuses on traditional sectors as well as information society activities. (People, Partners and Prosperity, 1998).

¹⁵ "Don't Dismiss the New Economy Hype as Hot Air", B. Little, Globe and Mail, September 18, 2000, p. B12.
¹⁶ Speech, L. Burton, OLT Conference, Montreal, February 23, 2001.