ISR Objectives:

• To strengthen capacity in First Nations for development and implementation of reformed income security programs.
• To achieve successful transition to an active measures-based approach to the on-reserve social assistance program.
• To assist people to achieve individual well-being and financial independence to the greatest possible extent.

What is the ISR Initiative?

The Income Security Reform Initiative is a federal initiative that aims to reform the on-reserve welfare system and focuses on helping welfare recipients make the transition from dependency to self-sufficiency through training and work placements, in order to develop a new policy framework for First Nations that will increase their employability and employment opportunities.

The ISR Initiative began following the announcement of Gathering Strength - an action plan designed to renew the relationship between the federal government and the Aboriginal People of Canada by developing partnerships to create effective and accountable First Nations governments, affirm treaty rights, negotiate land claims and improve the health and public safety of First Nations, in order to strengthen economic development and self-sufficiency.

What are ISR Demonstration Projects?

As a result of the ISR Initiative, many provinces are working with First Nations and other funding agencies to transform the welfare system on reserve to promote greater self-sufficiency through training programs and employment opportunities.

The purpose of the projects is to show:

• how the welfare system can be shifted from one that reinforces dependence to one that actively supports a transition to self-sufficiency, while maintaining a social safety net for those who most need it;
• how existing and planned federal and provincial programs can be better coordinated to maximize benefits to individuals and communities;
• how growth in social assistance expenditures can be reduced, and where savings achieved in current social assistance expenditures could be most effectively reinvested;
• how the current federal policies regarding income security could or should be changed to benefit First Nations in achieving their goals for strengthening their communities;
• how current barriers to reducing dependence on welfare and achieving self-sufficiency could be reduced or eliminated.

Characteristics of the Projects

Demonstration projects supported by First Nations and DIAND will:

• reflect First Nations' values;
• build community capacity for income security reform and program and service delivery for decision makers, First Nations members, and community members and clients;
• demonstrate means of meaningful and realistic accountability including the development of an information base that involves proposed outcomes, target populations, caseload benchmarks and historical expenditures;
• work within existing DIAND program authorities.

Why does social assistance on reserve need to be reformed?

Welfare dependency on Canadian reserves is high and continuing to increase. In 1997-1998, there were 156,629 on-reserve social assistance beneficiaries. (*Beneficiaries are defined as the combination of the number of persons in families and the number of singles.) On average, 45 per cent of on-reserve residents receive social assistance compared to 10 per cent nationally. The national on-reserve unemployment rate was 26 per cent versus 10 per cent nationally.

As a result, the federal government and First Nations decided that training, education and employment options were needed to reform and modernize social assistance service, in order to make them more proactive.

By March 31, 1999, there were already 37 demonstration projects operating with 145 communities involved in the process.

Partners

The initiative is being led by DIAND, but there are important roles to be played by other federal department, such as Human Resources Development Canada (HRDC) and the Secretary of State for Children and Youth.

The Assembly of First Nations (AFN), along with all First Nations, are key partners in this initiative as many First Nations are already responsible for welfare delivery on reserve and administering program funding.

The AFN, DIAND and HRDC are part of a Policy Coordinating Group dedicated to guiding the community-driven demonstration projects and researching effective practices already underway in some First Nations communities.

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