Gov't lifts Aboriginal economic development out of obscurity

The federal government, through Indian and Northern Affairs Canada (INAC), is seeking input on Aboriginal economic development with the goal of designing a new framework by year's end.
Some First Nations leaders see the initiative as welcome and long overdue; others "too little, too late." There is, however, consensus that economic development needs to be a First Nations' focus.
Spokesperson Patricia Valladao of INAC said First Nations, existing networks, stakeholders and others have been invited to take part in the process in guiding the federal government. Meetings will be held with economic development experts. The public at large can deliver its perspective through the INAC Web site, direct mail, or by phone until Sept. 30.
"All Canadians will benefit from a self-reliant, strong and healthy Aboriginal community," Valladao said in a phone interview, adding the government believes that increasing participation in a healthy economy is the most effective way to address gaps faced by Canadian Aboriginal people.
Chief Clarence Louie of the Osoyoos Band in British Columbia agrees. Aboriginal economic development has been one of INAC's lowest funded programs at two to four per cent of its budget. Louie calls that "a formula for poverty." Economy is an obvious number one issue for any organization or government.
Louie remembers a phrase he once heard: The economy is the horse that pulls the social cart. If that is true, then economic development should not be funded by discretional dollars, he said.
"Looking at the hundred-year-old system, it's all been social spending, and where has that gotten us over a hundred years; people talking about Aboriginal poverty," Louie said. "Year after year, economic development hasn't even been on the radar screen of the federal government, or the governments of most First Nations, who have been chasing more money for under-funded social programs.
"Countries with the best education and health statistics, housing statistics, the lowest drop-out rate, these are all countries that focus on economic development. Most people don't realize­they scream about health and education­but where does the money come from to operate those expensive programs?"
Louie believes business taxes and economic and natural resource development is key to overall prosperity. Even education relies on economic development, while supporting it with relevant skill-sets.
"The healthiest people are obviously working people."
Educated people don't want to live on welfare; INAC's historical approach, said Louie.
As a chief for 21 years, he describes band offices as a funding trough, government controlled and federally dependant. Business has to be the biggest employer, not the band office, he said.
The Osoyoos First Nation owns the most businesses per capita in Canada: a golf course, resorts, a winery, a hotel. It holds land leases, is in construction and operates stores.
"Every meeting, we start with economic development. It's at the top of our list. That's what funds all our programs."
Osoyoos employs not only band members, but hundreds of non-Natives as well as First Nations people from more than four provinces. Back in the 70s, most band members left to work in the United States.
Louie said that relying on the federal government for funds is a non-starter for Osoyoo, because there is simply never enough money to go around.
"Never has been and never will be. The provinces are all screaming after every federal budget. Native people, they're down on the list.The government doesn't have an endless supply of money," said Louie.
So what's the solution?
"Start creating business and making money and you're in the driver's seat; and there are a handful in every province doing that."
Saskatchewan's White Bear First Nation would count itself in that handful, according Chief Brian Standingready. He lists natural resources, a casino, a golf course and resort development as economic initiatives in his community that are backed by private funding or bank loans.
"White Bear has never in the past been involved with any federal programs or initiatives, as far as economic development is concerned," said the chief of 27 years, adding that his nation gets about $60,000 annually, of little benefit or use in economic development.
"I think, as far as the government, INAC, is concerned, they should stay out of economic development because it's not their place."
In fact, they are out of it, no matter what the intention.
First Nations have long been studied and restudied, commissions have made recommendations, and the government continually fails to follow through, he said.
And when they do get involved, the red tape and government bureaucracy is counter-productive to good business practice, Standingready said.
"The opportunity that was there is gone by the time you've negotiated all the obstacles. That's through experience, my experience in dealing with Indian Affairs. Their priority is not economic development. It's welfare," he observed. Increasing the welfare budget has long appeared their number one priority, he said.
Louie agrees. He said if the government really wanted to show goodwill it would scrap or change sections of the Indian Act. The time-frame to complete transactions for leases or land designation on reserve is five times longer than off, at double or triple the cost, he said. Non-Natives shake their heads in wonder at the bureaucracy and centuries-old paternalism.
"It's not business friendly," Louie said of government involvement. "In fact, it's anti-business. Nobody can believe the stupidity and ignorance of the Indian Act. And the extra cost and burden it puts on investment and First Nation lands."
Louie said that non-Native politicians think they can wave their magic wands and produce solutions, and the new framework the government is developing may be more of that. He hopes it's not.
Louie is willing to believe that INAC Minister Chuck Strahl, like his predecessor Jim Prentice, doesn't "want to be minister of Aboriginal poverty."
Standingready has his own framework for success. He said human resources, youth, and industry need to be each band's focus, especially on reserves with no natural resources.
"We have to be involved in the international market, meeting the demands out there," he said, citing global markets for food exports and First Nations products. "There's opportunity out there in different countries. What we need to do is more trade missions and so on. We need to expand beyond the reserve. I know there's a lot of interest­Asia, Germany, the rest of Europe­for First Nations business and goods."
Standingready said Saskatchewan has the fastest growing Aboriginal population in Canada, a labor force that, if given the training, could fill jobs and opportunities in all sectors and industries.
He is skeptical about where new funding for the new government framework on Aboriginal economic development might come from, saying it inevitably will be created through cutbacks to other programs somewhere.
Valladao said INAC is looking for "a comprehensive opportunity-based plan to guide federal policy, policy-making, and programs in years to come. [The framework] will reflect the current realities, opportunities, and self-reliance of Aboriginal business leaders, institutions, and entrepreneurs."
Chief Louie said "It's nice that economic development is off the bottom of the list, even if it's only for a brief period of time."
He said there's a simple reality check for this endeavor.
"Show me the budget."
The federal government will fund every band a full-time social worker to hand out welfare cheques, another full-time drug and alcohol counselor to deal with all the dysfunction that's come out of poverty, but no economic development officers. "To me that's totally psychotic. That's just whacko. It's crazy. How did they break down First Nation societies? They reduced them to dependency, took away their ability to look after themselves."
Louie said the inter-tribal economy of former days "wasn't a hand-out system. Our nations traded amongst each other. I'm not saying social programs aren't important. Of course they're important. Look what's been done to our communities over the past 100 years. But there are conferences every week on social programs, healing and wellness."
Louie said the ball is beginning to roll in the right direction. He would rather be contributing to the economy in traditional territories than sitting on the sidelines.
"Up to 50 per cent are leaving the reserve. Who wants to stick around poverty?" Louie sees educated people­future leaders­going where the jobs and better pay are. He said they're not going to come back and fight over under-funded government-controlled band office jobs. Economic development will bring back youth who will have opportunities to be company managers.
"Most Native people want something to get up for in the morning. And that's a job. A job defines who you are. I know a lot of people who will say "I love my job." Take away a job and what's going to happen to them? Social dysfunctions," said Louie. "There's no such thing as a free lunch. Even traditional foods­berries, fish, salmon, deer, elk, moose­it costs money to put that food on the table. Gas and bullets aren't free. Or a cultural event: It takes money to put on a powwow. It's not a money maker. It's the business side of the community. Businesses fund cultural events and programs."