The road to economic independence
Many Aboriginal people face social and economic barriers that have prevented some First Nation and Inuit communities from achieving the degree of economic success which they desire. The Government of Canada is working in partnership with First Nations and Inuit to improve their quality of life and to ensure that they have the economic power to manage their own affairs. This will be accomplished by continuing to work on self-government initiatives, making progress in treaty negotiations and providing support for viable economic development initiatives.

The Government of Canada has increased its support for Aboriginal economic development in recognition of growing opportunities and the strong initiative being shown by First Nations and Inuit across Canada. Aboriginal entrepreneurship is growing at twice the rate of the national average, and there are now over 20,000 Aboriginal businesses across Canada.

Governance and the economy
Stable governments which reflect and respond to a community's needs and values are key to ensuring economic development and self-sufficiency. The Government of Canada is working on a number of fronts to help strengthen Aboriginal governance. Initiatives range from settling land claims as quickly as possible to encouraging professional development to providing First Nations and Inuit with the tools they need to run their communities effectively and take advantage of business and development opportunities. These initiatives are aimed at ensuring that First Nation and Inuit communities have the resources, capabilities and regulatory support needed to establish an attractive investment and business climate.

Treaty negotiations and certainty
Treaties are an essential component in strengthening First Nation and Inuit economies. Successful treaty negotiations will establish certainty with respect to lands and resources and provide a secure climate for investment and economic development. This certainty will help create new opportunities for business, help stabilize the economic environment in British Columbia (B.C.) and allow for both Aboriginal and non-Aboriginal people to pursue economic development activities free of disputes about rights to land and resource use.

While treaty negotiations have been ongoing, the Government of Canada has entered into a number of agreements with First Nations in B.C. The goal of these interim and treaty-related measures varies, but may include assisting First Nation communities to build capacity, to encourage economic partnership with non-Aboriginal businesses, and with agreement of the B.C. government, access to lands and resources. The Government of Canada may provide some funding for these interim arrangements.

Aspects of these interim arrangements or similar agreements, may or may not become part of future treaties.

Keys to economic development
Working together is key to increased economic development. Experience shows that partnerships between First Nations and Inuit, the private sector and government are achieving progress in many of the areas which are important to stimulating economic growth. These areas include: access to capital, skill development, access to land and resources and improved economic infrastructure.

Access to capital
In order to grow and prosper, businesses need sufficient access to investment capital. However, legislative and other impediments prevent many First Nation and Inuit entrepreneurs from securing adequate collateral and equity. Developing approaches to meet the demand for investment capital is critical for economic growth in First Nation and Inuit communities.

Skills and experience
Skills and experience are needed to meet the demands of the labour market and a highly trained workforce contributes to the prosperity of the country as a whole. Within the next ten years, the Aboriginal labour force is expected to grow at twice the rate of the total Canadian labour force. Partnerships among First Nation and Inuit communities and the public and private sectors will help provide necessary training programs and employment opportunities.

Access to lands and resources
Access to sufficient land and resources is needed to support economic development and self-sufficiency. Under the B.C. treaty process, First Nations are seeking ownership and increased access to lands and resources. Joint ventures between Aboriginal and non-Aboriginal businesses are another way to increase access to lands and resources and provide opportunities for economic development.

Economic infrastructure
For many First Nation and Inuit communities, there is a need for roads, serviced lands, affordable energy and telecommunications links to support economic development. Developing infrastructure and strengthening governance are essential first steps in creating a healthy business and investment climate.

Economic development programs
The Government of Canada has increased its support for Aboriginal economic development in recognition of growing opportunities and the strong initiative being shown by First Nations and Inuit.

The Government of Canada administers a number of national programs designed to assist First Nations and Inuit with business and skill development, partnering with the private and public sectors and participation in major regional economic development initiatives. These national programs are:

Community Economic Development Program - provides long-term employment and business development opportunities to First Nations and Inuit by helping them manage skills development programs, economic institutions and business enterprises. This is achieved through partnerships among Aboriginal peoples, and with various levels of government and the private sector.

Resource Partnerships Program - co-funds activities leading to the creation and early implementation of joint working agreements. The goal is to obtain economic benefits from major regional resource-development projects for First Nation and Inuit communities.

Resource Access Negotiations Program - helps First Nation and Inuit communities with negotiations to: (1) access business and employment opportunities in major resource projects; (2) attract investment in on-reserve natural resources; (3) access off-reserve natural resources; and, (4) manage off-reserve natural resources. Negotiations are expected to lead to agreements which will enhance employment and business benefits from resource-based communities.

Opportunity Fund and Resource Acquisition Initiative - provides financial aid in the form of matching equity funding. The objective is to use the funding to obtain conventional debt financing for business start-ups or for business expansion.

The Resource Acquisition Initiative helps communities fund resource-sector and related business opportunities which may include acquiring natural resource permits and licences.

Major Business Projects Program - helps First Nation and Inuit businesses use "equity gap" funding in order to leverage conventional debt financing, in order to pursue major industrial, commercial or resource-based business opportunities.

Regional Partnerships Fund - promotes First Nation and Inuit participation in, and expanded economic benefits from, major regional development initiatives such as infrastructure projects and initiatives in areas such as tourism and resource development.

Aboriginal Workforce Participation Initiative- is a partnership initiative to increase the participation of Aboriginal people in the Canadian labour market.

First Nations Forestry Program- helps to improve economic conditions in First Nation communities with full consideration of the principles of sustainable forest management. Key program objectives are: (1) to enhance the capacity of First Nations to manage reserve forests in a sustainable manner; (2) to enhance the ability of First Nations to operate and participate in forest-based businesses and increase the number of long-term jobs in forestry for First Nation members; (3) to increase First Nations co-operation and partnerships; and, (4) to investigate financing mechanisms for First Nation forestry development.

Want to know more?

Indian and Northern Affairs Canada,
600-1138 Melville Street,
Vancouver B.C. V6E 4S3
Telephone: (604) 775-7114
Toll Free: 1-800-665-9320
Fax: (604) 775-7149
Email : bcinfo@inac.gc.ca