Golden Horseshoe

Golden Horseshoe, industrial and residential region in southern Canada. The Golden Horseshoe is a highly urbanized arc of settlements surrounding the western shore of Lake Ontario extending from the United States border along the Niagara River in the south to the city of Oshawa in the north. The region, which is located entirely within Ontario, contains four important metropolitan areas—Toronto, the provincial capital; Hamilton; St. Catharines-Niagara, and Oshawa-Whitby—as well as a number of smaller centers. Generally recognized as Canada's most prosperous region, the Golden Horseshoe is home to approximately one-fifth of Canada's population and contains an even higher proportion of the nation's manufacturing base. Industries in the area include motor-vehicle and parts production (the principal Canadian subsidiaries of the large Japanese and U.S. automobile manufacturers are located here), metal fabrication, primary-metal production, and the manufacture of electrical products. Toronto is the hub of Canada's financial and insurance sectors.

The prosperity of the Golden Horseshoe is the result of a combination of geographic and political factors. The rich soils and favorable climate of the region promote agriculture, and Lake Ontario has provided a transportation route since the region was settled. An extensive rail system built in the late 19th century provided efficient connections to the northeastern United States and to the rest of Canada. The completion of the St. Lawrence Seaway in 1959 allowed easy access to the Atlantic Ocean. The Golden Horseshoe now is also served by an extensive highway system and numerous airports. Politically, the region benefited from the decision to locate the provincial capital at Toronto, as well as from later programs designed to enhance Canada's industrial base. The most important of these programs was the National Policy, implemented in 1879, which used restrictive tariffs to protect Canadian industry and encouraged growth through transportation improvements, subsidies, and tax breaks. In order to avoid the protective tariffs, many international companies established their Canadian subsidiaries within the Golden Horseshoe.

During the 20th century, the Golden Horseshoe has been the most attractive area for immigrants to Canada, and its population has consistently grown at a more rapid pace than that of the rest of the nation. Population expansion has led to urban encroachment on the countryside, as well as to a number of other environmental problems, such as the contamination of Lake Ontario.