Established in 1990, the NIEDB is a Governor in Council appointed board mandated to provide strategic policy advice to the federal government on issues related to Indigenous economic development. Comprised of First Nations, Inuit, and Métis business and community leaders from across Canada, the Board helps governments to respond to the unique needs and circumstances of Indigenous peoples in Canada.

Recommendations Report on Improving Access to Capital for Indigenous Peoples in Canada

Recommendations Report on Improving Access to Capital for Indigenous Peoples in Canada, (Sept. 2017) is based on a study that Waterstone Strategies recently produced for our Board with the following recommendations to the Government of Canada:

• That the Government of Canada continue to expand investments in and support for Aboriginal Financial Institutions.
• That the Government of Canada make a substantive effort to renew the fiscal relationship and to make fiscal fairness and affordable borrowing a reality for Indigenous peoples and communities. This includes addressing current legal and regulatory barriers to accessing capital, as well as exploring and supporting new and alternative lending options.
• That Indigenous and Northern Affairs Canada (INAC) continue to work with Indigenous peoples, nations and governments to expand investments in communities and to enhance the investment climate.
• That INAC enhance the relevance, quality and availability of information to Indigenous households, businesses and communities through a commitment to transparency and openness, as well as supporting Indigenous-led research and data governance.

2019 Indigenous Economic Progress Report

The 2019 National Indigenous Economic Development Board (NIEDB) Economic Progress Report provides a thorough and in-depth analysis of the economic realities of Indigenous peoples in Canada. The report includes three core indicators:

1. employment;
2. income; and,
3. community well-being.

These core indicators are examined through 13 separate measures. Additionally, five underlying indicators are considered:

1. education;
2. entrepreneurship and business development;
3. governance;
4. lands and resources; and, i
5. infrastructure, with these underlying indicators examined through 18 measures.

Of the 31 measures examined, 11 are new to the 2019 report, including: several which examine workforce representation; enhanced income and educational attainment measures; community financial certification; and, the crowding and condition of housing. The 2019 Report also for the first time includes a Gender-Based Analysis, as well as two new composite indices: the NIEDB Economic Development Index and the Infrastructure Index. This report serves to provide the most complete and robust picture of Indigenous economic well-being in Canada to date.

RECOMMENDATIONS

The promotion of Indigenous economic development requires a multi-faceted approach that addresses the barriers outlined in this report and encourages the foundations of proven success from Indigenous communities across Canada. Fostering sovereignty, supporting Indigenous institutions of governance and community leadership, safeguarding and honouring Indigenous culture and identity, and investing in youth and education are all strong drivers of Indigenous economic development. The National Indigenous Economic Development Board recommends the following actions towards closing the inequity gaps between Indigenous and non-Indigenous Canadians:

EMPLOYMENT

• Findings suggest that while all Indigenous groups demonstrate higher unemployment rates than non-Indigenous groups, rates are strongly influenced by educational attainment rates, remote/on reserve community location, and gender inequity. Support for programs that match workers to locally-available and education-qualified opportunities can be informed by, and serve to inform community workforce plans. Community workforce plans would predict future employment needs in the community and address concerns voiced by Indigenous businesses regarding talent acquisition by having them engage with plan development. Further, through the anticipation of future local community need, students can have greater assurances of being able to find local employment and target educational plans accordingly while businesses can identify priority hiring targets to encourage local economic development.

INCOME

• As Indigenous groups are already working in high wage industries (but in the lowest-income jobs within those industries) the opportunity to amplify educational payoffs is great. Through an increase in training and internship opportunities for Indigenous employees in the industries that they are already working in, Indigenous employees could more efficiently move into higher occupational levels and increase their earning potential. Further to the Truth and Reconciliation Commission’s Call to Action #92, the education of non-Indigenous management into the benefits of greater Indigenous representation in high-income occupations would serve to encourage training and professional development opportunities.
• As Indigenous employees exceed median employment income levels with higher levels of education, this is even greater incentive to develop policies and programs to support Indigenous students towards higher levels of education. Continued showcasing of examples of Indigenous success, mentorship and leadership should be encouraged to enable students to envision the role of education in their future success.

COMMUNITY WELL-BEING

• The Community well-being index was identified by the Auditor General as lacking comprehensiveness in focusing primarily on economic indicators, not sufficiently utilizing First Nations data and not meaningfully engaging with First Nations to consider Indigenous meanings of community well-being. Health, the environment, language and culture are aspects that are being considered for future study and the Department has committed to working with Indigenous organizations to co-develop a broad dashboard of well-being outcomes to reflect mutually agreed upon metrics. Although the integration of new metrics will make historical comparisons of the CWB problematic, the more thorough assessment of community well-being for Indigenous communities will add considerable value. Consulting with all Indigenous groups will ensure diverse lived-experiences are considered. We look forward to these improvements in measuring outcomes of community well-being for the 2022 Report.

EDUCATION

• The Board would like to stress the importance of improving educational opportunities for the Indigenous population, especially First Nations on reserve. In this regard, a well-funded education system is essential and the development of strong basic skills (literacy and numeracy) in the early grades should be a top priority.
• Supports for community-based education must recognize the challenges faced by Indigenous students who must leave the community to attend high school and prioritize their physical and mental health, as well as cultural supports both where they attend high school and within the community to ensure ongoing student success.
• Given the high levels of college/trades completion, bridging programs to support students who wish to upgrade these certifications towards university degrees would fast track higher levels of education and employment opportunities. Such programs currently exist in some colleges to give credit for 1-2 year programs towards university degree requirements and expansion would further assist Indigenous students towards the attainment of higher education levels.
• Universities in each of the 3 Northern territories would support students in reducing the high costs and long distances currently required to attend university and increase the availability of a highly educated talent pool in the North. Yukon College is transitioning to Yukon University in 2020, Aurora College in the Northwest Territories is examining the feasibility of transitioning to Northern Canada Polytechnic University, and Arctic College in Nunavut is following recommendations to continue partnering with southern universities rather than pursue a university in Nunavut. In the interim, investment in distance education programs to assist remote students with obtaining higher levels of education would remove some barriers of expense and distance.
• Ongoing and expanded scholarship funding for Indigenous students pursuing post-secondary education would reduce financial barriers and encourage higher educational attainment rates.

ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT

• Research by CCAB suggests that barriers for business development include a lack of knowledge of where and how to apply for financing, as well as types of funding available and eligibility. Enhanced, more specific and greater availability of business services along with communications to increase awareness of application programs and support would benefit entrepreneurs seeking capital financing. Additionally, access to skills training for new business owners would assist with the development of business management skills to support business success.
• Given the legislation on reserve which disallows tax exemption and therefore discourages incorporation, and information to suggest incorporation is associated with revenue generation, further consideration of how First Nations on reserve businesses could be better supported should be examined.
• Access to capital remains a barrier to economic development. It is essential that the Aboriginal Financial Institutions are funded to ensure Indigenous entrepreneurs, often less likely to acquire financing from personal home equity or other sources, are able to obtain financing.

GOVERNANCE

• Strong governance and transparent financial management have led to robust economic development opportunities for Indigenous communities across Canada. The availability of tax revenues to support local development is initiated by the development of property taxation bylaws and supported by skilled and transparent community Financial Management Certification. Ongoing and expanded support for Indigenous communities wishing to pursue these opportunities will further ready communities to direct their own economic development opportunities.
• Due to an increase in Indigenous populations off reserve/out of territory, the NIEDB recommends the examination of needs and opportunities aimed at the more than 50% of Indigenous peoples living in urban populations.

LANDS AND RESOURCES

• The Additions to Reserve process provides a mechanism to address outstanding land transfers, but is currently backlogged by approximately 1,300 active applications of which eighty percent of all files represent a legal obligation for the Crown which must be addressed. There is a need to increase resources to the Additions to Reserve program to expedite applications, however there wasn’t any funding announced in the 2019/2020 Federal Budget that was specific to the ATR program. The NIEDB recommends that future Federal Budgets announce funding to enhance and expedite the administration of the ATR program.

INFRASTRUCTURE

• Although indications suggest that all drinking water advisories will be lifted by 2022, it is essential that this time line not be disrupted and risk management protocols are developed to ensure all DWAs are lifted as soon as possible. Further, ongoing financial commitments must be assured to maintain infrastructure, human resources and testing protocols.
• Housing remains an ongoing issue that affects all aspects of socio-economic life in Indigenous communities. Although significant investments have been made, ongoing investments are required to ensure homes are repaired and new homes are built to keep pace with growing communities. The newly introduced Indigenous Homes Innovation Initiative will hopefully encourage new building methods, materials, architecture or engineering to serve Indigenous families and the environments they live in.
• This report has demonstrated that connectivity in Northern and remote communities is significantly below levels for all other communities, including remote non-Indigenous communities. Connectivity impacts virtually every aspect of our lives, and predictions for the future of work include an increasing reliance on connectivity and economic progress divided along lines of access to a global economy based on connectivity. Increasing speed and data capacity to all Indigenous communities is essential to social and economic development. Forecasting community need to be ahead of current demand and in consideration of housing realities will ensure connectivity is less likely to be outdated before it becomes a reality.
• The Infrastructure Index Report captures the current infrastructure picture for remote Indigenous communities in Canada. Updating the index every two years to measure progress in reducing the Indigenous infrastructure gap would be useful.

GENDER

• Findings indicate that although men have lower educational outcomes than women, they nevertheless earn more than women in the same occupations and industries. In order to understand the sources of these gaps (e.g. family care work responsibilities), a study could be conducted on the particular barriers experienced by Indigenous women in advancing in these occupations and industries with results used to inform policy and programs to improve educational outcomes in men and employment/income outcomes in women.
• Indigenous men and women demonstrate different educational outcomes. Policies and strategies directed towards increasing high school, college/trades, and university completion rates among Indigenous peoples could address the unique barriers experienced differently by men and women and could be targeted for program and policy development accordingly (e.g. childcare).

YOUTH

• Entrepreneurship should be promoted and supported as a valid career option for youth through the mentorship and showcasing of Indigenous business leaders and ventures. Government-funded Indigenous youth entrepreneurship/start-up financing should also include essential business services training and coaching/mentorship services.
• We specifically recommend that the Government create urban Indigenous healing and employment hubs; invest in basic education infrastructure; develop distance education training; create an alumni fund to enable mentorship; and invest in Indigenous scholarship funding to support post-secondary education.
• Given this strong influence of parents and family on education outcomes – it is important to consider family and community when creating programs that promote education and employment skills for youth. Community inclusion in the development of programming will be essential.

http://www.naedb-cndea.com/wp-content/uploads/2019/06/NIEDB-2019-Indigenous-Economic-Progress-Report.pdf