Transcript Slide 1

Toward a New Federal Framework for
Aboriginal Economic Development:
A Case Study
Presentation to
Public Sector Management Workshop 2009
The Current Federal Approach to Economic
Development
Current suite of programs date from the Canadian Aboriginal Economic Development
Strategy 1989
Focus on three interconnected areas of economic activity, across three departments:
Labour market development (HRSDC); Business development (Industry Canada);
Community development (INAC)
Conditions, needs and opportunities have changed significantly since 1989
Current Federal Spending on Aboriginal Economic Development
Program Name/ Type
Community Economic Services, Institutions and Regulations
Community Economic Development Program
Aboriginal Aquatic Resource and Oceans Management
First Nations Forestry Initiative
Department
Budget in $ Millions
Indian and Northern Affairs Canada
Fisheries and Oceans Canada
Natural Resources Canada
$109.6
$5.0
$5.9
$120.5
Human Resources and Social Development Canada
Human Resources and Social Development Canada
$344.0
$20.8
$364.8
Labour Market Development
Aboriginal Human Resource Development Strategy
Aboriginal Skills and Employment Partnership
Business Establishment and Expansion
Aboriginal Business Development Program
Allocation Transfer Program
Atlantic Integrated Commercial Fisheries Initiative
Pacific Integrated Commercial Fisheries Initiative
Indian and Northern Affairs Canada
Fisheries and Oceans Canada
Fisheries and Oceans Canada
Fisheries and Oceans Canada
$37.3
$10.0
$10.0
$35.0
$92.3
Total
$577.5
*Other programs also support Aboriginal Economic Development, such as the Strategic Investments in Northern Economic Development program
and programming offered by Regional Development Agencies.
Aboriginal Economic Development is a Priority
Budget 2008: A commitment to establish a new federal framework for
Aboriginal economic development
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.
A new federal framework for Aboriginal economic development will
provide long-term strategic direction for government actions in support of
Aboriginal economic development
Aboriginal Canadians must be full participants
in the Canadian economy
Aboriginal Canadians can help fuel Canada’s economic
performance and recovery
Growing Aboriginal population can meet Canada’s long-term labour market needs
Income and employment parity between Aboriginal and non-Aboriginal Canadians
would contribute nearly $8 billion to the Canadian economy
Corporate Canada needs and wants to work with Aboriginal Canada
Substantial and growing land base represents significant opportunity for regional
economies, natural resource development and commercial development
Private sector wants to work with Aboriginal communities to avoid disputes and
delays over major developments that could be worth up to $315 billion
Duty to Consult has reinforced importance of Aboriginal participation in projects
Economic development increases self-reliance and reduces social
costs
Participation in the economy means escaping “cycle of dependency” - failure to
address means greater reliance on social programs and costs to government
The State of Aboriginal Economic Development
Unemployment
Rate
Self-employment
Rate
Average Annual
Income
Government
Transfers as a %
of Total Income
Census
2001
Census
2006
Census
2001
Census
2006
Census
2001
Census
2006
Census
2001
Census
2006
First Nations
(on-reserve)
300,755
27.8%
24.9%
4.5%
3.6%
$14,383
$15,958
32.0%
28.6%
First Nations
(off-reserve)
397,265
18.6%
14.0%
6.9%
7.1%
$19,728
$24,519
20.0%
18.6%
Inuit
50,485
22.2%
20.3%
5.0%
3.2%
$19,878
$25,451
20.3%
17.7%
Métis
389,780
14.0%
10.0%
9.2%
8.4%
$22,213
$28,226
15.7%
13.8%
Aboriginal
Population
1,172,785
19.1%
14.8%
7.2%
6.8%
$19,132
$23,888
20.8%
18.1%
Non-Aboriginal
Population
30,068,240
7.1%
6.3%
12.1%
12.0%
$30,062
$35,872
11.6%
10.9%
Economic Outcomes of Aboriginal Canadians
(Census 2006)
Gender
Labour force participation rate
Women on reserve
55.6%
Women off reserve
69.3%
Men on reserve
48.3%
Men off reserve
59.3%
Women
58.9%
Men
63.9%
Women
66.3%
Men
74.1%
Aboriginal population
Women & Men
63.0%
Non-Aboriginal
population
Women & Men
66.8%
First Nations
Inuit
Métis
Total Labour Force 15 Years of Age and Over By Class
of Worker, First Nation Identity and the Non-Aboriginal
Population, 2006
Per Cent of Population 15 Years of Age and Over Whose
Highest Level of Education Is Less Than High School,
First Nation Identity Population On and Off Reserve and
the Non-Aboriginal Population, 1996, 2001 and 2006
First Nations Communities and
Community Well-being
Community Well-being Index (CWB) distribution
for Aboriginal and non-Aboriginal communities
1.2
1
0.8
0.6
0.4
0.2
5 per. Mov. Avg. (Aboriginal)
5 per. Mov. Avg. (non-Aboriginal)
0.
9
0.
92
0.
94
0.
96
0.
8
0.
82
0.
84
0.
86
0.
88
0.
6
0.
62
0.
64
0.
66
0.
68
0.
7
0.
72
0.
74
0.
76
0.
78
0.
5
0.
52
0.
54
0.
56
0.
58
0.
35
0.
42
0.
44
0.
46
0.
48
0
Building on Success
Outcomes have been improving
Significant increases in the labour force participation, self-employment and earned
income of Aboriginal Canadians over the past 20 years
An increasing number of Aboriginal communities are achieving outcomes
comparable to non-Aboriginal communities
Although gaps continue to exist in outcomes between Aboriginal and non-Aboriginal
Canadians
Conditions and opportunities are changing
Private investment and development are pushing further into every region of the
country
Historic evolution in the roles and relationships of all levels of government, the
private sector and Aboriginal peoples
A new approach is needed
More significant gains can be achieved with a more up-to-date approach that is
driven by these new opportunities, responsive to the new conditions, leverages
partnerships and is more focused on results
Dimensions of economic development:
Analytic model
ACTIVATION
 Text styles

Second level
Taking advantage of
opportunities
Business development
Community investment strategies
Labour market development
Private sector partnerships
Major project participation
BASE
CLIMATE
Building economic potential
Creating the right economic
conditions
Lands and natural resources
Infrastructure
People
Legal and regulatory climate
Governance and institutions
Fiscal capacity and arrangements
Aboriginal Economic Development has Unique
Characteristics
Idle Community-owned assets
Growing base of community-owned assets need to be activated to build successful
and dynamic economies
A non-business friendly climate (laws, regulations, lands and resource management
regimes, infrastructure, governance and institutions) marginalizes communities from
mainstream economy and prevents communities from attracting outside investment
Not all communities have the same needs, conditions or opportunities
Under-developed Aboriginal private sector
A larger Aboriginal-owned private sector is critical to improving income and
employment outcomes
Persistent difficulties in accessing private capital and investment hampers business
start-ups, growth and market development
On- and off-reserve economic climate requires different business strategies and
approaches
Emerging labour force
Largest growing segment of Canada’s population is poised to enter the labour
market over next 10 years
Skills development and training need to be better aligned with labour market needs
Moving Forward on Economic Development
One size does not fit all
Federal actions must respond to the viable opportunities and the real conditions of
First Nations, Inuit, and Métis businesses and communities across Canada
Canada must employ a whole-of-government approach to achieve the greatest
benefit from federal intervention, including on a sectoral and regional basis, and
through both Aboriginal-specific and mainstream programming
Implementation is key
Stronger governance structure will ensure coordination across government and
between partners, and greater accountability to Canadians
Canada must continue to engage with all players to ensure federal investments and
actions keep up with dynamic and changing environment
The federal government cannot act alone
Canada can play an important role in setting the right conditions for better economic
development outcomes, but does not have all levers, responsibility and resources
Canada must work in partnerships with Aboriginal Canadians, provinces, territories,
and Corporate Canada to share responsibilities and build success
Partners
Promoting Partnerships
Major Resource and Energy Development Investments Initiative
Designed to help Aboriginal businesses partner in some of the most important economic developments
and energy projects across Canada
Will leverage financial participation from other levels of government, the private sector and Aboriginal
partners to increase the availability of equity funding to medium and large Aboriginal businesses
Examples
Aboriginal Energy Partnership (British Columbia)
$7 million fund co-managed by Ecotrust Capital Canada and 2 Aboriginal Capital Corporations
Business Ready Investment Development Gateway (Saskatchewan)
Pilot investment to Westcap Management Limited that will provide funding and training to
Aboriginal communities to help them become “business-ready”
First Peoples Economic Growth Fund (Manitoba)
Partnership between Manitoba Hydro, the Province of Manitoba, and the Government of Canada
Aboriginal Economic Development:
Some Conclusions
Participation in the Canadian economy is key to improving the
outcomes for Aboriginal Canadians
There are important opportunities for Aboriginal Canadians and for
all Canadians
There is broad consensus on the need for change
Working in partnership is the way forward