November 24, 2005
The Government of Canada recognizes that economic development is key to improving the standard of living and quality of life for Aboriginal people and all Canadians. Indeed, it is the precursor to all other forms of development — social, cultural, and political — and is necessary to achieving other development objectives. Currently, the federal government invests approximately $600 million per year in Aboriginal economic development programs delivered through eleven departments and agencies. This Backgrounder highlights examples of existing federal initiatives.
Aboriginal enterprise has achieved considerable momentum. Between 1996 and 2001, Aboriginal self-employment in
Initiative examples: Industry
In order to assist Aboriginal entrepreneurs to obtain business capital, the Government of Canada works in partnership with Aboriginal business and financial institutions.
Initiative examples: In the mid-1980s and early 1990s, the Government of Canada supported the creation of Aboriginal Capital Corporations (ACCs) to help address these challenges. Today, ACCs, along with Aboriginal Community Futures Development Corporations, form a network of 58 Aboriginal financial institutions across
Human Resource Capacity Development
Education and training are critical to the development of Aboriginal employees and entrepreneurs who will help foster a growing and competitive knowledge-based Canadian economy.
Initiative examples: Under Human Resources and Skills Development Canada’s Aboriginal Human Resources Development Strategy (AHRDS), Aboriginal organizations design and deliver training and employment services to meet the unique needs of their communities. Between 1999 and 2004, the AHRDS undertook over 349 000 interventions, such as training courses, that enabled over 80 000 individuals to return to work and over 22 400 to return to school. The objective of the Aboriginal Skills and Employment Partnerships Program is the employment of Aboriginal people in large economic development projects, such as in the mining, hydroelectric, and oil and gas sectors.
Access to Land and Resources
Aboriginal people can take advantage of the considerable opportunities offered by Canada’s natural resources to support the creation and preservation of jobs, promote relevant education and skills development, improve economic and business prospects, enhance community leadership, and encourage the wise stewardship of the natural environment.
Initiative examples: Natural Resources Canada and Indian and Northern Affairs Canada’s First Nations Forestry program helps First Nations take advantage of opportunities in the forestry sector by fostering effective management and planning practices, and promoting skills development, technology transfer, and business planning. Under the Aboriginal Fisheries Strategy, the Department of Fisheries and Oceans negotiates agreements and funds Aboriginal fisheries projects in order to improve the fisheries management skills and capacity of Aboriginal groups, as well as to provide commercial fishing opportunities, vessels and fishing gear.
Economic Infrastructure
In order to attract and retain investment capital, community measures that can serve multiple purposes such as communications technology, access roads, transportation systems, water and sewer services for commercial development, are required.
Initiative examples: Indian and Northern Affairs Canada’s Community Economic Opportunities Program selects projects for funding based on their economic impact. This program provides project-based support for land and resource development.
Industry
Supportive Regulatory and Legislative Environment
Regulations and legislation provide Aboriginal and non-Aboriginal Canadians with the protection they need to create sustainable economic development opportunities and to participate effectively in a dynamic economy.
Initiative examples: The proposed First Nations Commercial and Industrial Development Act will allow the federal government to produce regulations for complex commercial and industrial development project on reserve. Investors will have greater certainty about the regulations involved in developing major commercial or industrial projects on reserve, improving First Nations’ prospects for attracting major capital investment. The proposed First Nations Oil and Gas and Moneys Management Act will enable First Nations to assume jurisdiction and control of their oil and gas and related revenues. This initiative has been jointly developed over the past decade by First Nations with significant oil and gas reserves on their lands with a view to increasing economic development in their communities.
Governance and Capacity
Building capacity to achieve transparency, accountability and good governance is an important step towards Aboriginal self-government.