Government should be the engine creating the future, not the source of goodies, said Stephen Cornell, who co-founded the Harvard Project on American Indian Economic Development.
Cornell, who now teaches at the University of Arizona, told a Saskatoon conference about two development models based on his research around the world.
The standard model is for governments and agencies to look for quick fixes and make decisions under pressure to add jobs and income quickly.
It is non-strategic and short term, treats economic development as an economic problem and is more concerned with starting businesses than sustaining them, he said.
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The projects us-ually end in failure, “brain drain,” continuing poverty and the perception of incompetence among all involved.
Cornell said the better model of self-determined development holds the most promise for change on reserves.
“It matters less what specific asset you have in hand than how you pursue development,” said Cornell.
This model focuses on the long term and seeks to have native communities regain control of their futures and build a sustainable economy. The band would live off its own revenues and create necessary services.
Choices should fit community needs and decisions have to be transparent and tied to consequences, he said.
“You are building something that makes sense to the community at large,” Cornell said.
Wanda Wuttenee, a native studies professor at the University of Manitoba, cautioned against being seduced by capitalism.
“Be aware of what it costs us,” she said.
Wuttenee favoured business decisions that take account of the cultural factors that make natives unique.
She said communities need more than a return on investment. They also need development to fit with community needs, values and spirit.
She cited examples from her own research on numerous Canadian reserves including the Whitecap reserve south of Saskatoon. It has built a golf course, medical clinic, school, fire hall, band office and stable, and has plans for a casino and convention centre and suburban neighbourhood.
It involved the community in decisions and raised funds through a community improvement fee on the reserve. It also involved non-natives from surrounding communities to acquire the capital needed to launch the enterprises.
The 150 person reserve now has a 13 percent unemployment rate, or approximately eight people not working, she said.
The Meadow Lake Tribal council started its planning process with a blueprint for development that made everyone accountable for the outcome.
It included making the community and individual families responsible for adopting healthy lifestyles and maintaining cultural traditions.
The band was responsible for ensuring effective leadership, a good standard of living, training and educational facilities and adequate infrastructure for business.
She noted only a small percentage of aboriginals benefit from reserve land development since more than 60 percent live off reserves.
Recreation, outfitting, hunting, fishing and construction make up the majority of the 25,000 aboriginal businesses operating in Canada. Most are less profitable than average Canadian businesses, said Wuttenee.
