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Q&A: Why are some First Nations bands wealthier than others?

Prime Minister Stephen Harper and Canada’s First Nations leaders met on Tuesday in a landmark meeting meant to reset the relationship between the country and First Nations.

Following the meeting Global News asked you what questions you still had about the relationship, promising to investigate the most popular one.

The one that won out was: Why are some First Nations rich and not others?

It was a hot topic during Tuesday’s meeting with both Harper and Assembly of First Nations National Chief Shawn Atleo acknowledging successful communities, but spoke about the need to do more to grow wealth.

Global News asked Clint Davis, CEO of the Canadian Council for Aboriginal Business and Jody Wilson Raybould, regional chief of the B.C. Assembly of First Nations to help us shed some light on the recipe for economic success

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Yesterday, both PM Harper and NC Atleo mentioned both successes in First Nations economies and challenges. What makes some First Nations able to build their wealth, while some are left behind?

CD: It all boils down to leadership. It can be political leadership or business leadership in the community, but an individual or collection of individuals who go beyond the statement of “we are open for business” and put some substance behind it and make some of those tough political decisions to say we are going to channel all of our energy into economic opportunity. The second thing, too, is that there are some communities, and this is just a reality, they are located in regions that have tremendous opportunity right now.

JWR: The simple answer is it is all about location, location, location. But in reality it has everything to do with strong leadership, vision and having the support of your community to move forward with economic development and also having a clear discussion among our community members about and around the impacts of colonization and how our communities can overcome those challenges and get beyond the restrictions of the Indian Act and be self-governing.

What are the things keeping them from developing?

CD: The Indian Act is seen as an obstacle. A perfect example is the fact you can’t seize security on reserve. Major financial institutions have gotten around that simply by approaching first nations as casteful lenders, taking collateral out of the mix, but some financial institutions see that as an obstacle.

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The second barrier is the ability to make your own decisions. Governance is pretty much in the hands of the federal government and the federal government does not necessarily move at the speed of light, so economic activity in different regions of the country is very different. In order for a First Nation to take advantage of that they should actually have the governance powers to create a framework conducive to investment.

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JWR: Of course we need access to capital and the resources to build the infrastructure that we need. The Indian Act is the current embodiment of colonization of what is preventing our communities from moving forward. Having decisions made on our behalf from the time we are born and the time we die doesn’t create a climate that attracts investment. What creates a climate for investment is an understanding of how decisions are made, having an understanding of the laws and land tenures. Being able to do that and put together our own forms of government and rules of how the government operates makes it clear and transparent, provides and creates that climate for investment that most other Canadians take for granted.

How are some First Nations moving past these barriers?

CD: It comes down to leadership and capacity and being able to convince your community that this is what you are going to do, that the benefit of forging economic opportunity is going to result in improvements in the welfare of their own community members.

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On the one hand you have political leadership that tries to ensure their financial situation is open, transparent and accountable to their community members and that their financial foundation is in good order. When you have something like that trying to work with the federal government, or securing additional funding to support economic initiatives should move a little bit faster. Forging strong relationships with financial institutions and trying to encourage and push these institutions on how to be creative in accessing capital and working with business partners who have no problem with operating outside of the box and looking at a new way of doing business with a new type of partner.

JRW: There is a variety of ways to answer that question depending on what First Nations you are speaking to. A lot of the communities that I represent, about 70 per cent of our communities are engaged in some form of governance reform, moving away from the Indian Act. For example, the First Nations Land Management creates the opportunity for First Nations to extricate themselves from 25 per cent of the Indian Act, to be able to have jurisdiction over and make decisions over reserve lands and control the resources. When the decision-making happens where someone wants to invest in your community or build an economy, there is a clear line of who you go to, who makes the decisions as opposed to having a bureaucrat in Ottawa making the decisions that affect somebody 3,000 miles away. At the same time, in our province we have First Nations who have and currently still are engaged with negotiations with the government, in Tsawassen First Nation, for example, final (treaty) agreements and a comprehensive governance arrangement under that agreement. That extricates them completely from the Indian Act.

What role do treaties play in terms of economic development?

CD: Treaties are vitally important … the reason why they are fundamental is it does give rise to the fact that First Nations communities were self-governing and there was nothing in these treaties to say they would give up these powers and abilities to make decisions on their own and if anything it is a foundation upon which First Nations can demonstrate they should be self-governing. True economic activity will happen when you have a community that has the fundamental ability to make decisions of their own. There are examples of First Nations who fall under the Indian Act and they’ve been able to do this. I think they’ve in some respects been able to be creative around the restrictive nature of the Indian Act, but in more times than not the Indian Act remains a barrier.

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JWR: Speaking from the community that I spoke about earlier in Tsawassen, they have a comprehensive framework for their relationship through their treaty. The rules are clear. There is an understanding about what and how one is going to engage with the Tsawassen government because it was clearly laid out in their treaty. There’s that sound investment climate that exists there that outside investors are drawn to. We can have economic development now under the Indian Act but in order to have long-term sustainable development in our community we need to ensure we have strong and appropriate government.

Do you need to have natural resources to develop your economy as a First Nations community?

CD: Not necessarily. When you look at Westbank First Nation, Westbank is pretty much building their economic activity upon leasing land. They don’t have a mine in the middle of their traditional territory. Canada in and of itself is driven on the basis of a natural resource economy anyways, so when you look at the areas where you are going to see major commodity extraction and major resource development it is in the more remote areas of the country. Do you have to have natural resources development, probably not. There are some communities that have been able to develop economies without it, but they have other strategic advantages as well. Westbank is close to an urban centre, so they have a ready-made market right off the bat.

JWR: Yes. Ultimately, our First Nations are not looking for federal handouts, but we’re looking for a share in the resources wealth of this country, in the resource wealth of our territories…. It’s true that, particularly in remote communities, but all communities need resources to fuel our economy and support our governments. That currently is simply not the case.

What needs to be put in place, so all First Nations can be successful in their economic development?

CD: To be realistic, will every single community be firing on all cylinders with respect to economic activity, probably not. Not every single community in Canada is firing on all cylinders. There will be a number of variables impacting upon a community’s ability to fully utilize an economic advantage. I truly believe it comes down to real decision-making powers and self-governance.

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JWR: It all goes back to strong and appropriate governance. What there needs to be is some legal mechanism, some legislation, to be put in place that enables our First Nations to re-establish that strong and appropriate government, government that is appropriate beyond the Indian Act. When a First Nation is ready and willing and able to move beyond the Indian Act there is that mechanism to allow them to do that without the government standing in the way of them doing it. 

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