Canada is poised to become an economic and political powerhouse in the world, former British prime minister Tony Blair said Friday.

In a speech to an oil and gas industry crowd in Calgary, Blair forecast that Canada's energy reserves and, what he called its "modern spirit," make for a bright future. 

Former British Prime Minister Tony Blair on his last day in office, June 27, 2007.
(Lefteris Pitarakis/Associated Press)

"I often say to people, Canada will become one of the most powerful nations in the world."

Blair's speech to more than 2,000 people was his first in Canada since stepping down as Great Britain's prime minister earlier this year. 

Blair also cautioned that Canada's growing power will require greater obligations. 

"As power grows … so does more responsibility," he said. "What you need to do is carry with it your optimistic spirit."

In a question-and-answer session, led by former U.S. Ambassador and New Brunswick Premier Frank McKenna, Blair urged Canada to continue its controversial military mission in southern Afghanistan.

He told members of the audience, who paid nearly $400 each to attend the event, that being tough-minded with Afghanistan's insurgency will "send a message to [the] terrorist" in the war-torn country.

The long-time Labour prime minister also paid tribute to Canadian forces in Afghanistan, saying they are doing a "marvellous job."

"It's important the forces of extremism are defeated," he said.

Working to find peace

Blair also cautioned that the fight against what he called extremists can't just be a military fight.

"It's a battle of ideas," he stressed. "If we want to win, we can't just be for democracy and freedom. We have to be for justice and fairness."

He said fighting poverty in Africa and moderating the negative effects of globalization will go a long way to defeating radical Islamic forces bent on creating unrest in the Middle East.

The former prime minister also appealed to the crowd to support his efforts as a Middle East envoy working to find peace in the volatile region.

Blair said there is a struggle going on within Islam between moderate forces and extremists and that Western nations need to empower moderates to side with Western nations.

Blair, however, did not wade into Alberta's raging oil and gas royalty debate.

"I'm just glad it's not my decision," he said to chuckles.

Earlier, Blair quipped that a local newspaper headline declaring "Premier Under Fire" had alarmed him, bringing back memories of being in power. 

"What did I do now," asked the former prime minister to laughter.