Indigenous Economic and Social Well-being
Indigenous peoples are making economic development, but most importantly, making important contributions to Canadian economic and social progress.
The NIEDB (The National Indigenous Economic Development Board) strongly believes that it is essential to maintain this momentum by enacting policies and programs that will drive economic development.
The Board strongly believes that there is a need to focus on better data collection and assessment of policy measures that stimulate Indigenous economic progress. Indeed, better data collection will provide more detailed insight into where things stand and what needs to be done.
Indigenous peoples, and particularly First Nations on reserve, require drastic action in order to address increasing disparities with the non-Indigenous population.
The NIEDB is concerned that much of the economic potential of Indigenous peoples remain unrealized. It is clear that there is still much work to be done before Indigenous peoples are in the same position as other Canadians to contribute to and benefit from one of the world’s wealthiest economies.
The state of Indigenous economic and social well-being will inform the Board’s recommendations to the Government of Canada and will identify critical data gaps to effectively evaluate progress.
Indigenous Economic and Social Progress
Economic Development Corporations(also known as “EDCs”) in the short form are corporations formed under the laws of governmental regulation to manage the economic arm of the Indigenous community.
They are becoming more and more commonly used in Canada and, more importantly, are becoming more influential in the overall Canadian corporate environment.
In addition, reputable professional service firms (lawyers and accountants) are very familiar with the setup of these corporate structures and the cost of forming such EDCs has been reduced from the early years.
It allows Indigenous groups to enter the corporate world in a legally and financially sound manner while maximizing the constitutionally existing rights and assets held by each Indigenous community and individual.
EDCs have a role to play in achieving the economic independence of each Indigenous community. However, like any business, the time to set them up correctly will pay benefits in the future. Start with enlisting the input of your trusted legal professional and financial advisors.
Ensure someone is appointed as the “point guard” and is in close dialogue with the community to ensure the wishes of the community are incorporated in the setup. From this, Indigenous communities can grow businesses, protect the Nation as a whole, enjoy the fruits of their labors and move towards economic independence and pride.
Despite the economic decline over the past decade, overall economic outcomes for Indigenous peoples in Canada continue to improve (ictinc, 2016).
Indigenous Economic Trends
The National Indigenous Economic Development Board has and continues to study infrastructure issues as they relate to Indigenous economic development.
Although progress has been made, new approaches and renewed investment in infrastructure are needed—across the country in Indigenous communities and particularly in the North and in remote areas
With a growing Indigenous population, adequate housing is considered critical to socio-economic development. In particular, the suitability of housing has been strongly linked to health.
Statistics Canada identified that First Nations people were more than three times as likely to live in a home that needed major repairs if that home was on reserve than if it was off-reserve (44.2% versus 14.2%).
The infrastructure index for Remote Indigenous Communities and its component indices provide a clear picture of the substantial infrastructure deficits in Indigenous communities and illuminate the level of need required to bring remote Indigenous communities up to the level of non-Indigenous communities and support a competitive environment upon which to build economic opportunities.
Inuit communities demonstrate considerable shortages of infrastructure relative to other Indigenous communities which supports understanding of the severe infrastructure needs in the North.
First Nations communities have stronger values in the Economic Infrastructure Index, but the lowest findings are in Quality-of-Life Index.
Métis, who have demonstrated strong findings in many other indicators (e.g., income, education, entrepreneurship) demonstrate variable findings in infrastructure indicators.
The findings from the Infrastructure Index for Remote Indigenous Communities provide clarity and quantification to the existing infrastructure resources and indicate areas of focus that will serve to inform the increased support for Indigenous economic development in the future.
Indigenous Economic Trends
Recommendations
The promotion of Indigenous economic development requires a multi-faceted approach that addresses the barriers and encourages the foundations of proven success from Indigenous communities across Canada.
Fostering sovereignty, supporting Indigenous institutions of governance and community leadership, safeguarding, and honoring Indigenous culture and identity, and investing in youth and education are all strong drivers of Indigenous economic development.
The National Indigenous Economic Development Board recommends the following actions towards closing the inequity gaps between Indigenous and non-Indigenous Canadians:
Employment
Support for programs that match workers to locally available and education-qualified opportunities can be informed by and serve to inform community workforce plans.
Community workforce plans would predict future employment needs in the community and address concerns voiced by Indigenous businesses regarding talent acquisition by having them engage with plan development.
Further, through the anticipation of future local community needs, students can have greater assurances of being able to find local employment and target educational plans accordingly while businesses can identify priority hiring targets to encourage local economic development.
Local Indigenous Economic Development
Entrepreneurship and business development
Barriers to business development include a lack of knowledge of where and how to apply for financing, as well as types of funding available and eligibility. Enhanced, more specific, and greater availability of business services along with communications to increase awareness of application programs and support would benefit entrepreneurs seeking capital financing. Additionally, access to skills training for new business owners would assist with the development of business management skills to support business success.
Access to capital remains a barrier to economic development. It is essential that the Aboriginal Financial Institutions are funded to ensure Indigenous entrepreneurs, often less likely to acquire financing from personal home equity or other sources, are able to obtain financing.
Infrastructure
Housing remains an ongoing issue that affects all aspects of socio-economic life in Indigenous communities. Although significant investments have been made, ongoing investments are required to ensure homes are repaired and new homes are built to keep pace with growing communities. The newly introduced Indigenous Homes Innovation Initiative will hopefully encourage new building methods, materials, architecture, or engineering to serve Indigenous families and the environments they live in.
References
NIEDB. (2019). The Indigenous Economic Progress Report.
Indigenous Corporate Training Inc. (June 27, 2016). Indigenous Economic Development Corporations – The ABCs
https://www.ictinc.ca/blog/indigenous-economic-development-corporations-the-abcs