Date: 2008
ISBN: 978-1-100-10324-2
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Since 2006, our Government has taken a number of important steps to foster Aboriginal economic
development. We have strengthened the role of the National Aboriginal Economic Development Board
and appointed outstanding business and community leaders. We have more than doubled the size of
the Aboriginal Skills and Employment Partnerships initiative, with an investment of $105 million over
5 years. We have implemented enabling legislation in a number of areas, including commercial and
industrial development on reserve, land management, oil and gas and moneys management, taxation
and financial and statistical management. The Government has also merged key federal programming
and expertise, by locating Aboriginal business development and community economic development
programming within Indian and Northern Affairs Canada (INAC).
At the same time, we have made significant progress on a number of broader initiatives that will help
ensure that Aboriginal people and communities can play a significant role in the future development of
the Canadian economy and society. These include the Commercial Fisheries Initiative, the First Nations
Market Housing Fund, the expansion of the Urban Aboriginal Strategy, the First Nations Water and
Wastewater Action Plan, and a decisive new approach to accelerate the resolution of specific claims, to
name only a few.
The time has come, however, to adopt a comprehensive new framework for Aboriginal economic
development that will guide federal policy making and program development in the years to come. The
framework should reflect today's realities, opportunities and the growing capacity and self-reliance of
Aboriginal peoples, business leaders, institutions and entrepreneurs.
The new framework must recognize and build on past achievements and find innovative solutions to
address enduring challenges. This approach must identify those elements that have brought past success
and use these to set guiding principles for the future. A comprehensive, opportunity-based plan must also
be responsive to the different circumstances faced by Aboriginal peoples.
To assist in the development and implementation of a new framework we need to hear from you.
Over summer 2008 my Department will engage across the country, to seek views on how the federal
government can help secure the economic well-being and prosperity of Aboriginal peoples. This
Discussion Guide represents the first step in this process.
I am confident that a new federal framework for Aboriginal economic development will make meaningful
improvements to the lives of Aboriginal Canadians. There is much work to be done, but we are all in this
together and I am confident that with your participation we can make a difference.
Chuck Strahl
Minister of Indian Affairs and Northern Development and
Federal Interlocutor for Métis and Non-Status Indians
Budget 2008 Commitment: A New Federal Framework...
There are extraordinary economic opportunities
across the country. In particular, the mining and
resource sectors could provide new and historic
possibilities for many Aboriginal Canadians
to move out of poverty and dependency to
become full participants in the labour force and
the economy. The Government is committed
to fostering partnerships involving the private
and public sectors that help Aboriginal people
get the skills and training they need to take
advantage of the opportunities in the North
and across Canada.
Budget 2008 takes another important step
to help Aboriginal people make the most of
these opportunities by committing to establish
a new framework for Aboriginal economic
development by the end of 2008.
The Government will work with Aboriginal
groups and other stakeholders to develop a
framework that will be partnership-based and
opportunity-driven and that will ensure that
federal investments help Aboriginal Canadians
benefit from viable economic opportunities.
Budget 2008 dedicates $70 million over the next
two years for Aboriginal economic development
measures to support the new framework.
Budget 2008
This discussion guide is intended to provide
information to promote discussion during
summer 2008 among Aboriginal organizations
and communities, the private sector, provincial
and territorial governments, and other interested
stakeholders. The feedback received through this
process will inform the creation of a new federal
framework for Aboriginal economic development
by the end of 2008.
A new federal framework for Aboriginal
economic development will provide strategic
direction and inform decision-making for federal
policies and programs aimed at increasing
the participation of Aboriginal peoples in the
Canadian economy. As noted in Budget 2008, the
framework will also be informed by the work on a
new approach to the Aboriginal Human Resources
Development Strategy, expected in 2009.
...For Aboriginal Economic Development
The last comprehensive, national Aboriginal
economic development strategy was put in place
in 1989. The Canadian Aboriginal Economic
Development Strategy (CAEDS) was designed
to "provide long-term employment and business
opportunities to Canada's Aboriginal citizens,
by giving them the means to manage effectively
their own business enterprises, economic
institutions, job training and skills development."
CAEDS focused on three interconnected areas of
economic activity: labour market development,
business development and community
development.
The economic landscape for Aboriginal
Canadians has changed considerably since
CAEDS was announced in 1989. The Canadian
economy has expanded rapidly, outstripping
the supply of skilled labour in many fields and
pushing development farther into every region
of the country. This economic evolution presents
real opportunities on a broad scale for Aboriginal
Canadians: between 2001 and 2026, more than
600,000 Aboriginal youth will come of age to
enter the labour market, including more than
100,000 in each of British Columbia, Alberta,
Saskatchewan, Manitoba and Ontario (Annex B
offers a demographic profile of the Aboriginal
population in Canada). Over the same period,
rural and remote regions–where 50 percent of
the Aboriginal population lives–will see over
$140 billion in ongoing, planned and potential
natural resource projects.
A new federal framework for Aboriginal
economic development must coordinate federal
actions and ensure they address the most
important challenges facing the Aboriginal
Canadians today. It is also an opportunity to
ensure that federal priorities and actions are
aligned appropriately with those of stakeholders
– First Nations, Inuit and Métis people and
their communities, the Aboriginal and the
non-Aboriginal private sector, provinces and
territories – that have an interest in Aboriginal
economic development.
In 2006, the Government of Canada released
Advantage Canada: Building a Strong Economy
for Canadians, a strategic, long-term economic
plan designed to improve Canada's economic
prosperity today and in the future. Advantage
Canada is focused on helping people and
business strive for excellence, and recognizes that
the Government has an important role to play in
creating the right conditions for Canadians–
and Canadian businesses and organizations–
to thrive. The plan is designed to create new
opportunities and choices for Canadians.
Advantage Canada is focused on creating five
Canadian advantages that will help improve
Canadians' quality of life and succeed on the
world stage: tax advantage, fiscal advantage,
entrepreneurial advantage, knowledge advantage
and infrastructure advantage.
Under this plan, four core principles that will
guide policy decisions to improve Canadians'
quality of life and make Canada a world leader
for today and future generations:
- focusing government;
- creating new opportunities and choices
for people;
- investing for sustainable growth; and
- freeing businesses to grow and succeed.
Advantage Canada also recognizes that building
new opportunities for Aboriginal Canadians
to fully participate in the Canadian economy
is the most effective way to address the socioeconomic
gap faced by the majority of Aboriginal
Canadians.
...for Aboriginal Economic Development
A new federal framework for Aboriginal
economic development will be developed and
implemented based on its own set of clear guiding
principles, which will be consistent with the core
principles of Advantage Canada. Some proposed
guiding principles could define the framework as:
- flexible, respectful and responsive to the
different conditions, gender issues, regional
needs and important economic issues of First
Nations, Inuit and Métis peoples;
- opportunity-based to enable Aboriginal
peoples to assess their individual and collective
assets and capacities, and realize their potential
to be economically self-sufficient, focusing
investments where opportunities exist;
- market-driven, with measurable returns
on investment, and accountable and resultsbased
to ensure the best possible outcomes for
Aboriginal peoples, communities, government
and industry;
- coordinated across all federal departments
and agencies, including policy development,
program design and implementation and
service delivery to ensure a focused "wholeof-
government" approach for maximum
effectiveness;
- partnership-based to promote effective
relationships among Aboriginal and
non-Aboriginal businesses, all levels of
governments and institutions, to share risks,
leverage private sector capital, and enter into
joint ventures; and
- culturally-sensitive and environmentally
sustainable to see economic development
as a means of promoting and preserving
Aboriginal cultures and their deep respect
for the environment.
Developing a New Framework: Context
The Government's response to the Senate
Standing Committee on Aboriginal Peoples
report Sharing Canada's Prosperity–A Hand
Up, Not A Handout (see Annex C), stated
the following: "the report makes clear, in
the voices of Aboriginal leaders themselves,
that there is an unbroken consensus among
Aboriginal people today that the time has come
to seize the economic opportunities that can
bring new life and hope to their communities...
simultaneously, the Canadian economy is
poised to embrace Aboriginal participation as
never before: both as a critical and growing part
of the labour force, and as business partners
in some of the most important economic
development initiatives in the country."
Indeed, all Canadians have a stake in Aboriginal
economic development. Aboriginal people and
communities want to improve their economic
participation and well-being; businesses want access
to the untapped resources of the Aboriginal labour
force; Canadians want a strong, inclusive economy.
To take advantage of today's opportunities, we
need to modernize our approach to Aboriginal
economic development. We are at an historic
tipping point–never before have Aboriginal
peoples been better positioned to participate
fully in the broader Canadian and international
economy. From the Osoyoos First Nation in
British Columbia, which employs workers
from the surrounding Okanagan region to work
at its 10 business ventures, to the Membertou
First Nation in Nova Scotia, which became the
first ISO-certified First Nation in the country,
there is a rapidly expanding number of First
Nation communities, Aboriginal companies and
individuals across Canada who are leading the
way to economic success.
Nevertheless, major economic gaps still remain
between Aboriginal and non-Aboriginal
Canadians, which translate into significant
differences in quality of life and life opportunities.
For example, in 2006, 13.2 percent of Aboriginal
people between the ages of 25 and 54 were
unemployed, compared with 5.2 percent for non-
Aboriginal Canadians. Business development also
faces serious obstacles: for example, it is estimated
that the doing business on a reserve takes four to
six times longer than in adjacent areas.
To achieve meaningful improvements in these
areas, we must address the persistent barriers
to Aboriginal economic development. Sharing
Canada's Prosperity recently articulated a number
of these barriers:
- inability to access capital;
- legislative and regulatory barriers;
- limited access to lands and resources;
- deficits in human capital;
- infrastructure deficits;
- lack of governance capacity; and
- fragmented federal approach to economic
development and limited federal funding.
While these gaps in economic performance and
barriers to economic development persist, they
must not mask the progress that has been made:
Aboriginal education levels are rising;
Aboriginal employment rates in major urban
centres are reaching parity with non-Aboriginal
employment; Aboriginal businesses are being
formed at a rapid rate, and many are succeeding
and growing; important new legislation has been
passed to facilitate the management of reserve
land, to improve the First Nation tax base, to make
possible long term debt financing by Aboriginal
governments, and to enable effective regulation of
reserve land for commercial and industrial purposes.
These changes call for a new framework
for Aboriginal economic development. The
framework must address not only the challenges
of small business development and employment,
but also the challenges of Aboriginal
participation in major projects, the need to link
the emerging Aboriginal business community
to the main capital markets and the broader
private sector, and the need to address some
fundamental legal and regulatory barriers.
The range of differences in stages of
development, opportunities and challenges
facing Aboriginal people across Canada is truly
extraordinary: from rural and remote locations to
urban centres; from communities in the Far North
accessible only by air to communities adjacent to
large cities; from emerging to advanced stages of
economic development. The new framework must
be broad and flexible enough to respond to these
wide variations.
The time has come to make Aboriginal peoples
full and meaningful partners in the Canadian
economy, both for the good of Aboriginal
peoples and for the good of the country as a
whole, for the economic success of Aboriginal
Canadians benefits all Canadians. Opportunities
do exist, even in the most remote communities,
and wherever they exist they must be realized.
Through effective partnerships with the private
sector and with government, we can overcome
historic economic isolation, and begin to lay
the foundation for an economy that enriches the
lives of all Aboriginal people. We must do this
with full respect for Aboriginal cultures, and
indeed as a means of promoting and preserving
these cultures. We must undertake economic
development in the Aboriginal spirit of respect
for the environment, so that Aboriginal economic
development will be sustainable development.
Dimensions of Economic Development
Aboriginal economic development can be considered within three broad dimensions: the economic
base, the economic climate and economic activation.
Activation
Taking advantage of opportunuities
- Business development
- Community inverstment strategies
- Jobs
- Private sector partnerships
- Major project participation
Base
Building economic potential
- Lands and natural resources
- Infrastructure
- People
Climate
Creating the right economic conditions
- Legal and regulatory climate
- Governance and institutions
- Fiscal capacity and arrangements
The economic base includes land, natural
resources, people and infrastructure. It provides
the foundation for an economy.
Economic development will not occur unless
the climate, including laws, regulations, modern
governance and fiscal arrangements, permits and
encourages an economy to grow.
Finally, even a strong potential economic base
and the right climate need stimulus in the form of
capital, know-how, planning and key partnerships.
A. The Economic Base:
- Questions for Discussion
- How can the economic potential of Aboriginal
land and resources be fully assessed and
realized?
- How can we ensure that Aboriginal people
receive the skills and training they need to
participate in the labour market?
- How can infrastructure better support
investment and development?
- How could investments in people, such as
education and social assistance, be better
connected to economic development?
- What can be done?
- How could innovative approaches to
infrastructure financing be developed to better
leverage private investment?
- How could a demand-driven employment
strategy connected to education and Aboriginal
business development better facilitate
economic development?
- How could there be a systematic identification
of the economic potential of community assets
and opportunities?
B. The Economic Climate:
- Questions for Discussion
- How can we ensure that the legal environment
best serves the business sector and economic
activity?
- Do Aboriginal governments have the fiscal
capacity to support economic development?
- Are institutional structures appropriate to, and
effective in, support of economic development?
- What can be done?
- How could partnerships between the private
sector and Aboriginal people be better facilitated?
- How could these partnerships be structured to
address the duty to consult/accommodate?
- What are the main barriers to economic
development in the Indian Act?
- What could be done to address these barriers?
C. Economic Activation:
- Questions for Discussion
- How can linkages and partnerships be
established with the private sector, especially
with energy and major resource development
projects?
- Are the right supports in place for labour
market development? Business development?
Community development?
- Do communities have the tools and supports to
identify their economic potential and plan for
its development?
- What can be done?
- How could access to commercial capital (debt
and equity) be improved?
- How could the network of Aboriginal financial
institutions be strengthened to serve as the key
platform for small business development?
- How could investment partnerships for major
projects in the resource and energy sector be
better promoted?
- How could economic development
programming be reformed to emphasize
pooling assets and raising levels of expertise
within the Aboriginal population?
- How could new partnerships within the federal
family be formed to better promote economic
development?
Bearing in mind the preceding considerations,
a number of questions can help focus the
discussions leading to creation of the new
framework.
1. What specific opportunities, now and in the
future, do you see for Aboriginal people and
businesses to participate more fully in the
Canadian economy?
- How can the strengths of Aboriginal people,
businesses and institutions contribute to
making these opportunities a reality?
- What investment and contribution can
government and non-Aboriginal institutions
and businesses make?
2. What are the barriers to the full participation
of Aboriginal people, communities and
businesses in these opportunities? How can
these barriers best be addressed?
3. How can the federal government improve its
contribution to the economic development of
Aboriginal people, businesses and institutions?
4. What can Aboriginal people, businesses,
institutions and leaders do to realize their role
as full economic partners?
5. How can we best engage the commitment of all
stakeholders to ensure that the new framework
continues to evolve and reflect new economic
conditions and opportunities?
In committing to the development of a new federal
framework for Aboriginal economic development,
the Government of Canada also committed
to engaging Aboriginal peoples and other
stakeholders in its elaboration. This Discussion
Guide reflects part of that commitment.
Copies of this Discussion Guide will be shared
with Canada's Aboriginal leadership, the National
Aboriginal Economic Development Board, the
Canadian Council for Aboriginal Business, key
Aboriginal stakeholders and other potential
partners, including business and professional
associations and community organizations and
Non-Governmental Organizations.
But we also want to hear from Aboriginal
people themselves, as well as other concerned
individuals with a commitment to Aboriginal
prosperity and well-being. Accordingly, we
have also developed and posted an e-version
of the Discussion Guide on the INAC website.
Other federal departments and agencies actively
involved in Aboriginal economic development
have also posted links to the Discussion Guide.
Over the summer, we will also participate in, and
where appropriate convene, face-to-face meetings
with key stakeholder groups across the country
to assess their views and seek their counsel
on the key elements a new federal framework
for Aboriginal economic development might
incorporate.
All of the inputs we obtain via these various
engagement processes will be carefully
synthesized. These inputs will inform the policy
options that are considered in the development of
a new federal framework for Aboriginal economic
development.
Engagement: How to Share Your Views
Please forward your thoughts and ideas on what a
new federal framework for Aboriginal economic
development might include, bearing in mind
the considerations and questions in this Guide,
as well as any other comments and suggestions
you have regarding the information or issues
referenced in this Discussion Guide to:
Indian and Northern Affairs Canada
Terrasses de la Chaudière
10 Wellington, North Tower
Gatineau, Quebec
Postal Address:
Ottawa, Ontario
K1A 0H4
You may also forward your views and comments to:
Email: InfoPubs@ainc-inac.gc.ca
Phone: (toll-free) 1-800-567-9604
Fax: 1-866-817-3977
TTY: (toll-free) 1-866-553-0554
Bibliography:
Prior Research on Aboriginal
Economic Development
Over 120 studies have been published in the past 10 years on Aboriginal economic development. These
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