Publications
The Development of Aboriginal Co-operatives in Canada
Report submitted to the Honourable Andy Mitchell, Secretary of State for Rural Development and FedNor by the Minister's Advisory Committee on Co-operatives
The members of the Working Group on Aboriginal Co-operatives are: Bill Lyall, Chair, Jim Barr and Jill Kelly
November 2002
Introduction
In 1996, The Royal Commission on Aboriginal People report identified the pressing need to rebuild Aboriginal economies, which were described as disrupted, marginalised and largely stripped of their land and natural resource base. The Commission felt that the situation required urgent attention because any progress toward self governance would be severely constrained by the development and capacity of Aboriginal economies. In addition, the Aboriginal population is the fastest growing in Canada which means that thousands of young people are entering the labour market every year. This report reviews the policy context, the past and present experience of co-operatives as a model of development for Aboriginal people, and offers recommendations to increase the contribution of the co-operative model to the development of strong aboriginal communities.
Policy Context
The 2001 Speech from the Throne confirmed the importance of improving the quality of life of Aboriginal people while continuing to address the relationship with Aboriginal leadership.
"Nowhere is the creation and sharing of opportunity more important than for Aboriginal people."
"Too many continue to live in poverty, without the tools they need to build a better future for themselves or their communities."
Speech from the Throne, January 30, 2001
Several key commitments of the Speech from the Throne related to areas where co-operatives have demonstrated their capacity to contribute. Under Improving the Quality of Life, co-operatives have a proven track record in housing and health care services delivery, job creation and retention; under Strengthening Governance, the co-operative model is based on democratic control and has been a school of democratic decision-making process and corporate governance; under Promoting Economic Opportunities, co-operatives are sound successful businesses which contribute to strengthening the entrepreneurship skills of communities and have been particularly present in the resource sector (agriculture, forestry, fishery, etc). In the North, communities use their retail co-operatives as a development tool and expand their business into cable distribution, tourism accommodations, fishing and hunting outfitters, petroleum distribution, a variety of contracts to build facilities, to provide postal service, to rent office space, to cater to mining communities, etc.
Recently, governments have put more emphasis on results based programs and projects and the development of appropriate performance indicators to demonstrate value for money and to respond to public pressure for more accountability.
At the same time, First Nations have demonstrated a growing interest in the development of strong aboriginal economies as one outcome for the negotiations that would provide access to lands and resources.
Another important factor that needs to be considered is the recent devolution of most program expenditures to First Nations. For Indian and Northern Affairs Canada, this represents 85% of their programs. The impact of this new trend is perceived by co-operative leaders as negative to co-operatives, especially in the North. More than 90% of Inuit living in Nunavut, Nunavik and the Northwest Territories are members of co-operatives but fewer and fewer development funds are allocated to support new development of co-operatives (expansion or creation).
The recent Speech from the Throne of September 30, 2002 has restated the Government of Canada's commitment to improve the quality of life of Aboriginal People and to work at closing the gap in life chances between Aboriginal and non-Aboriginal Canadians.
"The government will promote entrepreneurial skills and job creation among Aboriginal people by increasing support for Aboriginal Business Canada. It will also tailor and target its training programs to help Aboriginal and Inuit people participate in economic opportunities such as the development of Voisey Bay, northern gas pipelines and similar projects throughout Canada."
"In a number of cities, poverty is disproportionately concentrated among Aboriginal people. The government will work with interested provinces to expand on existing pilot programs to meet the needs of Aboriginal people living in cities."
"The government will target its regional development activities to better meet the needs of the knowledge economy and address the distinct challenges of Canada's urban, rural and northern communities."
Aboriginal Economic and Social Environment 1
The current state of economic development within Aboriginal communities and nations is far from satisfactory. For example, a recent study 2 of the Aboriginal economic gap in Saskatchewan demonstrated that, compared to the non-Aboriginal community, Aboriginal people experience higher poverty rates, lower education levels, and chronic unemployment. The study showed that average Aboriginal personal income was 56 percent of average non-Aboriginal personal income. It identified that 60.4 percent of the Saskatchewan Aboriginal population fifteen and over had not completed high school, and that the Aboriginal community as a whole has an estimated unemployment rate of 53 percent. The study's authors predicted that the statistics would continue to grow, depriving both Aboriginal and non-Aboriginal communities of lost economic potential and GDP, not to mention the enormous associated social costs such figures invariably imply.
A recent national study by Indian and Northern Affairs Canada highlights many of the economic and social problems confronting people living on Indian reserves. 3
- Over 29 percent of the population over fifteen have less than grade nine education; more than double the national average.
- The percentage of the population on reserves with university education, while increasing, is not catching up to the level of the general population (as their percentage increase faster).
- The male labour force participation rate stands at 58 percent, 15 percent below that of comparable non-Aboriginal communities and 24 percent behind the national average.
- The female participation rate is 45 percent, nearly thirteen percentage points below that in comparable non-Aboriginal communities and nineteen percentage points behind the national average.
- The low participation rate among young people is particularly troubling: it stands at only 56 percent, 14 percent below that of comparable non-Aboriginal communities and 18 percent below the national average.
- The unemployment rate across the entire community is 28 percent, far above the 10 percent typical of comparable communities
The situation confronting Inuit, Inuvialuit, and Innu is similarly troubling.
- Unemployment rates of 50-70 percent are common in many Arctic communities.
- A significant number of the most remunerative jobs are still held by sojourners from the South.
"Aboriginal leaders have expressed a preference for economic development conceived of as a process that takes into account the history, collective aspirations, economic diversity, and underlying realities of each Aboriginal community. 4"
The Aboriginal Co-operative Movement Today 5
There are an estimated 133 co-operatives in Canada today in which a substantial proportion of the membership is Aboriginal. Most of these co-operatives are located in smaller, more remote communities, although there has been increasing evidence of growing interest in large communities located closer to the larger cities and even some interest among Aboriginal people located in cities.
There is considerable information about 77 (or 57 percent) of these co-operatives because they have submitted data to the Co-operatives Secretariat. Nearly all the largest co-operatives have submitted data to the Secretariat, meaning that the information represents far more than 57 percent of the membership and business activities of Aboriginal co-operatives in Canada today.
More than half the co-operatives are in the Northwest Territories, Nunavut, and Nunavik. They had their beginnings during the late 1950s and expanded rapidly during the 1960s and 1970s, in large part because of the work of Inuit with public servants from Northern Affairs and other "southerners" aware of, and committed to, co-operative development. The co-operative approach has proved to be very popular in the Arctic and increasingly in the North generally; by the mid-1990s there were hardly any communities in the Far North that did not have a co-operative.
According to Arctic Co-operatives Limited, over 95 percent of the members of the northern co-operatives are Aboriginal, the remaining 5 percent being made up of southerners residing in the North. Inuit are by far the largest single group within the membership, particularly in Nunavut and Nunavik. In the western Arctic, substantial numbers of Inuvialuit and Dene are also members, and in recent years the Dene have been joining existing co-operatives in increasing numbers and starting new co-operatives. Subsequently, in this report, co-operatives in this region will be referred to as "the Arctic co-operatives."
The Arctic co-operatives have developed two distinct federations of co-operatives: one, Arctic Co-operatives Limited (ACL), serving co-operatives in Nunavut and NWT, and the other, la Fédération des coopératives du Nouveau Québec, serving the co-operatives of Nunavik. These federations have been instrumental in stabilizing the northern co-operatives, in developing system-wide accounting, marketing, and employment standards, and in presenting a united voice to governments. In addition, ACL is a member/owner of Federated Co-operatives, a Saskatoon-based co-operative wholesaler owned by co-operatives in western and northern Canada.
In Québec, a second membership network exists associated with the Mouvement Desjardins. In addition to six caisses populaires owned and operated exclusively by Aboriginal people, there are approximately twenty caisses populaires providing Aboriginal people with services specific to their communities. A small number of aboriginal credit unions which cater to aboriginal people can also be found in Ontario and several others across Canada which cater to aboriginal people.
The only other major concentration of Aboriginal co-operatives is to be found in northern Saskatchewan--the co-operatives that survive from an extensive programme undertaken by the Saskatchewan government during the 1940s and the 1950s. The remaining co-operatives are scattered across southern Canada, their origins being highly individualistic and their purposes quite diverse. Their activities extend from housing, to craft marketing, food retail, forestry worker co-operatives, fishing, bus transportation, etc.
The co-operative is a vehicle for community economic development which create wealth and retain long term benefit in the community. The seventy-seven reporting co-operatives have more than twenty-four thousand members. The actual number of aboriginal people served by these co-operatives is significantly higher because of two factors. First, the store also serves nonmembers--a person does not have to be a member to shop in them. Second, most members are really families, and since most Aboriginal families in the North are larger than the Canadian average (and often include extended families), the numbers of Aboriginal people actually affiliated with co-operatives is substantially higher than twenty-four thousand.
In total, the data indicates that Aboriginal people are more likely to be members of co-operatives than other people in Canadian society, which is largely a reflexion of the high penetration of co-operatives in the northern economy. In fact, northern Aboriginal people are four times more likely than southern Aboriginal people to be members of a co-operative.
The Aboriginal co-operatives reporting to the Secretariat annually sell nearly $250 million in services and products, and the amount has been increasing steadily in each of the last ten years. They have nearly $190 million in assets and member equity stands at almost $90 million; the co-operatives are managing their liquidity levels in an appropriate way and are generally maintaining their buildings in a satisfactory manner. Net savings have fluctuated somewhat around $7 million each year, depending largely upon the extent to which the co-operatives have been improving their physical plant. In 2001, Arctic Co-operatives Limited paid a total of $3.6 million in patronage dividends to their local co-operatives in Arctic communities.
The 133 Aboriginal co-operatives in Canada, particularly those in the Arctic, make substantial economic contributions to the communities they serve through local businesses and through the wholesales they own, which return surpluses or profits back to them.
It is easy to pass over the importance of the $7 million in annual net savings. This money is generated entirely by business in the community, making co-operatives one of the most effective forms of economic development in the communities where they exist. Virtually all of the savings are distributed within the community; most of it is spent in the community, stimulating further business and economic activities. The "multiplier" effect is of some significance, although no studies have been done to measure that impact.
The co-operatives employ more than fourteen hundred people, the average co-operative employing about eighteen individuals. The vast majority of the employees are Aboriginal, the most common exception being managers, most of whom are non-Aboriginal, although this pattern is slowly changing. Training and retaining aboriginal managers remains one of the most pressing challenges faced by aboriginal co-operatives. On average, co-operatives tend to employ slightly more people than comparable firms owned and operated by non-Aboriginal people. They also appear to be more likely to keep employees in times of adversity.
The co-operatives pay their employees at a somewhat higher rate than other similar local businesses. The pay level, though, is lower than the national average and may be a matter of long-term concern. It may also help explain why some co-operatives have difficulty retaining Aboriginal employees once they have become trained.
An important dimension of the role played by co-operatives is that they provide considerable education and training for the people associated with them. In any given year, about a thousand people, virtually all of them Aboriginal, are involved as elected officials in the co-operatives. In that role they learn how to analyze business statements, work with managers, and report effectively to their communities. They take training programmes, travel to seminars, and learn about the activities of the federations. They learn about formal democratic procedures; in fact, more than half the members of the Nunavut Legislature have had significant leadership training and experience within their local co-operative.
Similarly, co-operatives serve as an incubator for employment opportunities within Aboriginal communities. Employees move among the co-operatives associated with the Arctic federations. Many have moved on to jobs in the public service and with private companies after having been trained in the co-operatives. Others have opened private businesses, sometimes competing with the co-operatives, after they have learned necessary business skills.
Co-operatives are major employers of Aboriginal people. They have made and are making significant contributions through the training and education they provide their elected leadership and employees.
A distinguishing feature of the Aboriginal co-operatives is that they are involved in a wide range
of businesses, the most common being in the retail trades. The co-op is the only store
in some Arctic communities; in others, it is an important competitor of other stores, most of
which are owned by two northern chain-store systems. Given the accountability inherent in the
co-operative structure, the stores are important guarantors of the sale of goods at the most
reasonable price.
Most Arctic co-operatives, however, are engaged in a variety of activities, including the marketing of crafts, the repair of snowmobiles, the operation of hotels, and the organization of tourist activities. Many are involved in fishing and fisheries, a few in the provision of electricity and the operation of television cable systems. Three are housing co-operatives. One operates a bus co-op that takes the children of its members to their schools.
Aboriginal co-operatives, particularly in the Arctic, have shown remarkable entrepreneurship by engaging in a wide range of economic activities.
Features of the Co-op Model supporting Aboriginal Community Development
The co-operative model extends ownership and control to the people who are involved in it as members; it is an approach with a long history and a demonstrated capacity to meet all kinds of needs.
Co-operatives are driven by the needs of their membership. They stress the importance of meeting member needs and of responding to local pressures. They are inclusive and they are respectful of the rights of individuals and the values of communities. Thus, they can become strong manifestations of community needs and community pride. They can be the kinds of responsive, entrepreneurial institutions many Aboriginal people say they want and demonstrably need.
- Second, co-operatives are based on democratic principles of one person,
one vote, the accountability of elected leaders, and the need for members to
be informed about their co-operatives. As in the Arctic, they can be directed
by Aboriginal traditions of community participation. Issues of concern are
addressed through a process whereby groups reach a consensus by thinking
and talking together. Such traditions can normally be transferred easily into
the group decision making that is characteristic of sound co-operative development.
An example of successful integration of participatory decision making into an Aboriginal-owned co-operative is Neechi Foods, a worker co-operative in Winnipeg's inner city. It has been able to thrive and continue to provide employment when other grocery outlets have discontinued services. While operating in a highly competitive and difficult industry, the enterprise has high social goals of providing harmony, environmental consciousness, and social justice, and it incorporates decision-making practices that hear the voices of its workers. Co-operatives deepen relationships with members over time by encouraging them systematically to expand their investments in equity and by involving them in a range of activities in the co-operative. They can also expand in many creative ways the range of economic and social services they provide their members --in fact, any kind of business that is needed in the community and can be operated effectively.
In many Arctic communities, for example, co-operatives not only operate stores and sell Inuit art; they also operate hotels, tourist businesses, machinery repair, and post offices, cable television, etc.
- The basis in member and community needs, the democratic structures, and the
deepening of member participation mean that co-operatives could become one powerful
response to the challenge posed by the Wahbung statement of the Manitoba Indian
Brotherhood in the late 1960s:
"A century of government administration and government and church control and the effects of living in an atmosphere of state dependency, where virtually all decisions relating to your life and your future are made by others will require developing new methods of response and community involvement."Frank Cassidy and Robert Bish, Indian Government: Its Meaning in Practice (Lantzville, BC: Oolichan Books and The Institute for Research on Public Policy, 1995), p. 94.
Co-operatives stress the importance of autonomy from politics and private enterprise, and that autonomy is often a key to their success. For example, one of the reasons that the Arctic co-operatives became so successful was that they distanced themselves from politics and worked out effective relationships with governments.
The co-operative tradition emphasizes the importance of co-operation among co-operatives. Once more, the experience of Arctic Co-operatives Limited amply demonstrates the importance of this principle. The Co-operative College of Canada provided important training for the Arctic co-operatives' elected leaders and managers during the formative period. Federated Co-operatives has shown flexibility and steadfastness in providing support for the northern co-operatives over the years, and The Co-operators insurance company has been a supportive investor and good business partner.
Co-operatives have a deep attachment to their communities. They cannot be bought and sold without member agreement, which should obviate concerns among Aboriginal people about losing control over any successful enterprise they manage. It is a form of enterprise that cannot be sold regardless of the interests of key stakeholders. That means co-operatives will contribute permanently to a community's economic and social health.
Dimensions of co-operatives that matter:- they are driven by member needs;
- they are based on democratic principles;
- they build member commitment over time;
- they encourage self-responsibility;
- they are autonomous from politics, governments, and capitalist enterprise;
- they build through co-operation among co-operatives;
- they are concerned about communities; and
- they promote gradual, secure development.
- Co-operatives develop gradually, recognizing the complexities of personal and community development, relying upon the cumulative impact of education and training programmes, and accumulating capital resources slowly. They are not "quick fixes," but when successful, they are certain providers of economic security, personal empowerment,and community stability.
Barriers to Use and Expansion of the Co-op Model
Several impediments to the use of co-operative structures are common to many sectors of activities and development situations. The Committee's analysis correspond to the views of the Co-operative Sector and this report reinforces the analysis of impediments in other Advisory Committee reports. These impediments are as follows: lack of familiarity with the model; image of co-ops; lack of capital; resistance to the model; co-ops not always included in government programs and policies; low number of experienced co-op development people and ongoing support for new co-operatives; and, other issues particular to aboriginal communities.
The following tables set out respective roles of the Co-operative Sector and Government in confronting these impediments.
1. Visibility and Awareness
| Impediments | Role of Co-op sector | Government Role |
|---|---|---|
| Lack of familiarity with the
model, not an alternative that
comes to mind along with
other forms of organizing a
business.
This is particularly the case with aboriginal leaders, aboriginal development corporations and government policy analysts and program officers. In the North, it is more a problem of image and perception than awareness. |
Develop own organs of
communication and
education: Eg. co-op
magazine and newspapers
like the Atlantic Co-operator.
Make presentations to interested groups and governments: Eg. Worker Co-operative Development Fund (WCDF), credit union schools programs. Organize promotional campaigns to increase their visibility: Eg. Co-op Week and Credit Union Day |
Government should ensure
that citizens have the
opportunity to choose the
business structure that best
meets their needs.
Eg. In 1999 an information kit on co-operatives was developed for the Canada Business Service Centers. When co-operatives make a significant contribution to a sector, governments should include them in their policy analysis: Eg. the Canada Mortgage and Housing Corporation is including co-operatives in its analysis of the social housing sector. The government should support the effort of co-operatives to make the model better known by Canadians, policy makers and developers. |
| Image of co-operatives as being unwieldy, and/or are unprofitable, and /or are yesterday's solutions to today's problems - resistance to model. | Organize forums and develop
relations with the media,
promote co-operatives within
the various constituencies.
Eg.Women Work in Co-ops Conference (Vancouver, 1998) attracted women in new and emerging co-ops, and those interested in hearing about the model; youth camps and programs (CCA - regional offices); media coverage (Co-op Atlantic's tender beef) winning national prize. A recent public opinion survey undertaken by CCC & CCA demonstrates a highly favourable perception of co-operatives by Canadians. Fund students at honours level and in post-graduate research. Eg. Various bursaries: Laidlaw, Bromberger, etc. Create alliances with other economic development agencies. |
Consideration should be
given to innovative uses of
co-operative structures to
respond to current public
policy objectives.
Eg. in 2000 a study was undertaken with financial support from Indian and Northern Affairs Canada to look at the role of co-operative structures in the development of aboriginal communities. Support research that demonstrates the effectiveness of the model: Eg. the Co-operative Development Initiative announced in June 2002 will support Innovations and Research projects that demonstrate extended uses of the model. |
2. Resources for Co-operative Development
| Impediments | Role of Co-op sector | Government Role |
|---|---|---|
| Lack of capital | Develop venture capital loan
sources and advise on
innovative structures for
attracting and pooling
capital.
Eg. Arctic Co-op Development Fund; Capital Régional et Coopératif Desjardins in Québec; Regional Co-operative Development Centre (RCDC) Community Catalyst Fund in Moncton. Innovative structures - New Generation co-ops, multi-stakeholder co-ops, worker shareholders co-ops |
Equitable treatment should
be afforded co-operatives to
ensure that they have access
to the fiscal tools necessary
to build a strong financial
base.
Eg. the new Canada Co-operatives Act provides cooperatives with the same tools available to other forms of enterprise to ensure appropriate levels of capital; Eg. Régime d'investissement coopératif in Québec. A Phase II Co-operative Project funded by CARD and the co-op sector will examine the capitalization issues of co-operatives, particularly agriculture co-operatives. |
| Not always included in government programs and policies aimed at businesses and general employment policy | Monitoring via CCA and CCC, provincial councils, participation in conferences with government. Work closely with policy analysts to demonstrate the contribution of co-operatives to policy issues and to ensure their inclusion in policies and programs. | Co-operatives should be
treated on a basis no less
favorable than that afforded
to other forms of enterprise.
Eg. Application forms for Environmental Innovation Project funds, and for Information Technology funds that specify type of incorporation should include co-ops. Governments should consult co-operative leaders on policies and programs and invited them to sit on governments' advisory boards |
| Lack of experienced and knowledgeable co-op developers. | Identify existing pool and
provide training for
interested parties.
Eg. Worker Co-operative Developers Network Work with other educational institutions. B.C. Institute of Co-operative Study's Registry Broaden contacts outside of co-operatives. Les coopératives de développement régional in Québec. Involvement in Community Economic Development (CED) networks and educating community developers regarding co-op potential and existing successes. |
Take affirmative action in
areas of co-operative
development that contribute
to public policy objectives.
Eg. the worker co-operative revolving fund has a technical assistance component. This program targets areas with high unemployment. The CARD Phase II Coop project will provide some leadership training to Boards of Directors of Co-operatives. The recently announced Federal Co-operative Development Initiative will support co-operative development capacity. |
| Ongoing support once co-op is in place | Provide such support as
necessary for existing
co-operatives.
Eg. Co-op Housing Federation and its programs; Worker Co-operative Development Fund (WCDF); Research Institutes partially funded by co-op sector. Establish networks of co-operative leaders. Establish federations: Eg. Arctic Co-op Ltd and Fédérations descoopératives du Nouveau Québec. |
Co-operatives should have
access to the same ongoing
support services that are
available to other types of
enterprise.
Eg. Research tax credits and export support programs. |
3. Impediments Particular to Aboriginal Co-operatives and Remote Communities
| Impediments | Role of Co-op sector | Government Role |
|---|---|---|
| Limited resources to meet the needs of communities | Develop and promote models
for making efficient use of
available resources.
Eg. community co-op model, multi-stakeholder model. |
Aboriginal people should
have equitable access to
services compared to that
enjoyed by the non aboriginal
communities.
Eg. Infrastructure Program. |
| Social capacity/avoid burnout of the existing leadership of small communities | Broadening the base of
community participation by
providing opportunities to
participate at various levels
to learn skills.
Eg. Director development and training courses available because of co-op efforts, and director participation funded by individual co-ops; Metro Credit Union and the Social Audit Committee as a recruitment base for Board candidates; Desjardins initiative on co-operation at the community level. |
Support community capacity
building approaches.
Eg. The Rural Development Initiative. |
| Isolation/distance | Work to overcome isolation
by creative use of
communications
technologies, conferences,
and distance learning.
Eg. Credit Union Central annual meetings; Credit unions supporting new technology development in communities Eg. In-branch computers and training to use them. |
Aboriginal people especially
in the North should have
equitable access to services
compared to that enjoyed by
non aboriginal Canadians.
Eg. Broad band - highspeed internet access. Ensure that the Inuit needs will not be lost in the larger aboriginal settlements because of their relatively small number. |
| Training and retention of skilled aboriginal managers | Develop and deliver training
program for employees and
managers
Eg. Arctic Co-op Ltd and the Fédération des coopératives du Nouveau Québec annual spending of more than a million dollars on training. |
Aboriginal people should
have equitable access to
services compared to that
enjoyed by the non aboriginal
communities.
Eg. Infrastructure Program. |
| Lack of information and research on aboriginal co-operatives to support development | Participate in the development of research programs at universities (especially the centres specializing in co-operative research): Eg. the BC Institute for Co-operative Studies, the Centre for the Study of Co-operatives in Saskatchewan and Centre d'études Desjardins en gestion des coopératives de services financiers. | Support research on
co-operatives
Support universities undertaking postgraduate education on co-operatives Support research centres with co-operatives as their specialisation. Integrate research on co-operatives in government policy analysis. |
Contribution of Co-operatives to Economic and Social Development of Aboriginal Communities
Co-operatives have been able to make a strong contribution over time because they understand how to meet the needs of members. The following tables identify issues within three broad themes of aboriginal development and provide details of co-operative contributions and specific examples of achievements.
1. Building/Strengthening the Physical and Economic Infrastructure
| Issues and Vision | Co-op Contribution |
Examples of Achievement |
|---|---|---|
| Issues
- difficulty of providing physical and economic infrastructure needed to sustain the quality of life and economic development of aboriginal communities. Examples: - housing - connectivity - businesses - financial services and capital. - transportation Vision "The co-operative movement extends ownership and control to the people who are involved in it as members; it is a movement with a long history and a demonstrated capacity to meet all kinds of needs." |
|
Urban aboriginals have participated in the creation of housing co-operatives in Canada; either wholly-aboriginal or aboriginal inclusive; for
example the Nation Inter-Tribal Housing Co-operative and First Nations
Housing Co-operative in London, Ontario and New Beginnings Housing
Co-operative in Prince Albert, Saskatchewan.
Arctic Co-operatives Ltd. (ACL) joint ventured with NorthwestTel and Northern Aboriginal Services Company (NASCO) to create ARDICOM Digital Communications Inc. ensuring northern communities access to the latest communications technology (video conferencing, the internet, telemedicine and telehealth) Arctic co-operatives have developed two distinct federations of co-operatives: one, Arctic Co-operatives Limited (ACL), serving co-operatives in Nunavut, NWT and Northern Manitoba, and the other, la Fédération des coopératives du Nouveau Québec, serving the co-operatives of Nunavik. These federations have been instrumental in stabilizing the northern co-operatives, in developing system-wide accounting, marketing, and employment standards, and in presenting a united voice to governments. In addition, ACL is a member/owner of Federated Co-operatives, a Saskatoon-based wholesale co-operative owned by co-operatives in western Canada (and through ACL, northern Canada). In Québec, six caisses populaires are owned and operated exclusively by Aboriginal people, and an additional twenty caisses populaires provide financial services specific to the needs of Aboriginal communities. Similar examples can be found with credit unions in other parts of Canada. The Blood Reserve School Bus Co-op Ltd has been created to meet the transportation needs of this Alberta native community. |
2. Building/Strengthening the Personal Infrastructure
| Issues and Vision | Co-op Contribution |
Examples of Achievement |
|---|---|---|
| Issues
- leadership development - retaining human capital - responding to skill challenges Vision "Co-operatives develop gradually, recognizing the complexities of personal and community development, relying upon the cumulative impact of education and training programmes, and accumulating capital resources slowly. ... when successful, they are certain providers of economic security, personal empowerment, and community stability." |
|
In Canada, 133 aboriginal co-operatives are owned by about 25,000
people and are controlled by 1,400 elected members of boards of directors.
Through this involvement, board members acquire leadership skills and
management expertise and experience.
Over 50% of Nunavut's elected Assembly received training as elected officials of their local co-operatives Aboriginal co-operatives employ about 1,400 peoples and in many communities, they are the most important employer. In the North, co-operatives are, collectively, the second largest employers. They have contributed to the development of employability skills such as new technology and business management. |
3. Building/Strengthening the Social Infrastructure
| Issues and Vision | Co-op Contribution |
Examples of Achievement |
|---|---|---|
| Issues
- Ensuring healthy communities and environment - Appropriate access to health and social services - Meeting the needs of youth - Meeting the needs of aging population Vision "Well-rooted co-operative organizations are not just the imposition of an institutional form; they often are the outward manifestation of a deep understanding of the benefits of collaborative behaviour ..." |
|
Located in Winnipeg, Neechi Food Co-op limited is committed to community
development. It has focussed efforts on nutritional issues in the surrounding
community, particularly related to children; for example by selling them fruit
baskets instead of candies. It promotes healthy living by providing educational
material and by developing partnerships with other community organizations
such as schools, youth centres and health clinics. It also creates employment in
the neighbourhood by marketing aboriginal home-made crafts.
Nor'West Co-op Health and Social Services Centre serves a large portion of the aboriginal community in Winnipeg with a wide array of integrated programs including a well baby clinic, fitness assessment, immunizations and a senior program. Most of Saskatchewan co-operative health clinics cater their services to a large number of aboriginal people in their neighborhood. |
Conclusions
A number of reports have demonstrated the extent and stability of Aboriginal co-operatives in Canada, especially when supported by a federation. The co-operative model offers an alternative to aboriginal leaders who are looking for an economic development model that takes into account history, collective aspirations, economic diversity and is responsive to the community.
The development of co-operatives in Aboriginal communities is certainly limited by a complicated and complex cultural, political and policy environment which can have different expressions in the North, on Reserve or off Reserve.
Recommendations
Promotion and Awareness
- Governments should adequately support activities to raise awareness of the co-operative option amongst Aboriginal communities and their leaders, and also amongst employees of all levels of government. These activities include development of promotional material, seminars, conferences, and youth camps.
- All levels of government and the co-operative sector should collaborate to raise the visibility of the co-operative option with Aboriginal people.
Training and Education
- It is recommended that training for aboriginal co-operative managers be a priority of federally funded training programs. Special consideration should be given to help Northern co-operatives replace their Southern managers (when they leave their jobs). One of the most critical challenges for aboriginal co-operatives is the development and retention of aboriginal managers, as the demand for them is very high. Co-operatives have difficulty offering the same level of salaries and benefits as some other employers (e.g. governments and other organizations) so co-ops lose a large number of trained staff. The need to continuously develop management staff is expensive for co-operatives, and can slow growth. Support for co-operative education and training initiatives should be encouraged. Much of this could come from existing agencies.
- The two Arctic federations of co-operatives should be consulted when governments design new education and training programs. One example of overlooking the needs of aboriginal co-operatives is the case of Land Claims agreements which provide funding for Board training to other organizations but not to co-operatives.
Recognition of Co-operatives as Major Socio-Economic Players
- It is recommended that aboriginal people with a strong background in co-operative business be invited to sit on federal advisory boards and committees, especially the National Aboriginal Economic Development Board. Co-operatives are too often ignored when the time comes to appoint aboriginal leaders to government advisory boards and committees, but should be represented in a systematic way, as they have a strong track record for economic and social development in Canada.
Access to capital
- It is recommended that the existing federal aboriginal financial assistance programs (including loan guaranties, loans, equity investment, etc) support the establishment of a specialized Aboriginal Co-operative Capitalization Fund. Access to capital is an ongoing challenge for all co-operatives. It is especially difficult for aboriginal co-operatives to obtain the level of capital they need for developing and diversifying their activities. In the early 1980's, Arctic Co-operatives Limited created, with the support of the federal government, the Arctic Co-operative Development Fund to help their network finance their growth. This financial tool has been a key element in the diversification of services and has brought stability to the network. It is seen by many observers as a success.
Research
- The academic community should be encouraged to undertake more research on aboriginal co-operatives and to achieve this objective, it is recommended that a special research fund on aboriginal co-operatives be created. There is a need to better document the aboriginal co-operatives experience and to undertake research showing how and when to best use the co-op model.
- It is recommended that a special survey on aboriginal co-operatives be conducted, to collect more information on the variables affecting co-operatives and the community.
1 Lou Hammond Ketilson, Ian MacPherson, " A report on Aboriginal Co-operatives in Canada - current situation and potential for growth", Centre for the Study of Co-operatives, University of Saskatchewan, 2001, 400 pages.
2 M. Painter, K. Lendsay, and Eric Howe, "Managing Saskatchewan's Expanding Aboriginal Economic Gap," Journal of Aboriginal Economic Development 1, no 2 (Winter 2000).
3 Comparison of Social Conditions, 1991 and 1996 (Ottawa: Indian and Northern Affairs Canada, 2000).
4 Hammond Ketilson and MacPherson... Page 23
5 This section has been developed from the report on the "Socio Economic Profile of Aboriginal Co-operatives in Canada" by Bachir Belhadji, former socio-economic analyst with the Co-operatives Secretariat, Agriculture and Agri-Food Canada.
