1. Economic Development Strategies as an
Engine of Political Development
Among First Nations
Thursday Mar 10, 2005
3:45 – 4:45 pm
Chris Hylton, MA
CG Hylton & Associates Inc.
800 449-5866 chris@hylton.ca
1

2. Agenda
Harvard Project Strategies
Success Stories
Band Models
2

3. Harvard Project
Native societies are phenomenally resilient. In
the last century, they have faced winds of
economic, political, and cultural change that
have blown over them as ferociously as over
any people in history.
3

4. Harvard Project
 Founded by Professors Stephen Cornell and
Joseph P Kalt at Harvard University in 1987
 Through research and service, the goal is to
understand and foster the conditions which
will sustain social & economic development
in First Nations
4

5. Harvard Project
The projects activities include:
Research
Advisory services
Education
Tribal governance award
5

6. Harvard Project
 Although this research was done in the US,
we feel that the circumstances, challenges
and theories surrounding the project are
similar to what we encounter here.
 The successes of the Harvard models can
contribute to the success of Canadian First
Nations facing the same challenges.
6

7. THE DEVELOPMENT GAMBLE
The odds are not
promising
The required effort is
tremendous
The results are at best,
uncertain
7

8. Obstacles
 Lack of financial capital
 Lack human capital (education, skills, technical
expertise) and the means to develop it
 Lack effective planning
 Over-planning and lack of action.
8

9. Obstacles
 Lack in natural resources
 Have natural resources, but lack sufficient
control over them
 Non-Indian outsiders control or confound tribal
decision-making
 Tribal cultures get in the way.
9

10. Obstacles
 Nation savings rates are low
 Entrepreneurial skills and experience are scarce
 Non-FNs management techniques won't work on the
reserve
 Non-FNs management techniques will work, but are
absent
10

11. Obstacles
 Tribes cannot persuade investors to locate on
reserves because of intense competition from non-
native communities
 Federal and state policies are counterproductive
and/or discriminatory
11

12. Obstacles
 Tribes have unworkable and/or externally imposed
systems of government
 Tribal politicians and bureaucrats are inept or
corrupt
 Factionalism destroys stability in tribal decisions
 The instability of tribal government keeps outsiders
from investing 12

13. Obstacles
 The long-term effects of racism have undermined
tribal self-confidence
 Alcoholism and other social problems are
destroying tribes' human capital
 Reserves are disadvantaged by their distance from
markets and the high costs of transportation
13

14. KEY DEVELOPMENT
INGREDIENTS
14

15. EXTERNAL OPPORTUNITY
Critical factors:
 Political sovereignty
 Market opportunity: unique economic
opportunities in local, regional, or national
markets
 Access to financial capital
 Distance from markets
15

16. INTERNAL ASSETS
 Natural resources
 Human capital
 Institutions of governance
 Culture
16

17. DEVELOPMENT STRATEGY
 Overall economic
system
 Choice of
development activity
17

18. THE ROLE OF SOVEREIGNTY
 Decision-making control over the running
of tribal affairs and tribal resources
 Primary control can create an assertive and
capable tribe
 Transferring control over decisions to tribes
does not guarantee success, but it tightens
the link.
18

19. THE ROLE OF SOVEREIGNTY
 Brings accountability
 Offers distinct legal and economic market
opportunities
 What nations can do is be more or less
aggressive in asserting the sovereignty they
possess
19

20. THE ROLE OF INSTITUTIONS
 Sovereignty must be put to effective use
 Capable institutions of self-governance
 Should be thought of as formal and
informal mechanisms in which groups of
people work towards a common goal
20

21. FORMAL INSTITUTIONS
They include:
 Constitutions
 Charters
 Laws
 Formal rules that
regulate what people
do
21

22. INFORMAL INSTITUTIONS
 Include culturally supported standards of
right and wrong, proper and improper,
normal and abnormal
 Through the values, rules of behavior, and
ideas we all learn from growing up and
living in a particular community
22

23. INFORMAL INSTITUTIONS
Enforced by the approval and disapproval
of our parents, peers, elders, and other
authority figures.
23

24. THREE BASIC TASKS
Formal Governing Institutions
 Mobilize and sustain tribal community's
support
 Efficiently make and carry out strategic
choices
 Provide a political environment in which
investors feel secure —large or small, tribal
members or nonmembers
24

25. TASK 1
MOBILIZE AND SUSTAIN SUPPORT
FOR INSTITUTIONS
25

26. MOBILIZE AND SUSTAIN SUPPORT
FOR INSTITUTIONS
 This power can be the key to creating
economic developmental success
 Without it the result may be instability,
stagnation, and a government that serves
only the temporary interests of the faction
currently in power.
26

27. MOBILIZE AND SUSTAIN SUPPORT
FOR INSTITUTIONS
Achieving a match between the formal institutions
of governance and the culture of the society.
27

28. TASK 2
IMPLEMENT STRATEGIC CHOICES
28

29. IMPLEMENT STRATEGIC CHOICES
 Formalized decision rules and procedures
 Laws, rules, and procedures that get things
done
 Formalized rules and procedures that serve
to empower
29

30. IMPLEMENT STRATEGIC CHOICES
 Professional Financial, Personnel, and
Record Systems
 Maintain close control over tribal finances
 Standards and grievance procedures
30

31. TASK 3
ESTABLISH A POLITICAL
ENVIRONMENT THAT IS SAFE FOR
DEVELOPMENT
31

32. ESTABLISH A POLITICAL
ENVIRONMENT SAFE FOR DEVELOPMENT
 With greater employment opportunities,
people are more likely to stay
 Uncertainty in tax and/or regulatory policy
raises investors' risks
 Example: insecurity in the enforcement of
contracts and agreements
32

33. TO SOLVE PROBLEM
 Who Controls What? The separation and
limitation of powers
 The separation of electoral politics from
day-to-day management of business
33

34. CHOOSING EFFECTIVE
DEVELOPMENT STRATEGIES
34

35. ECONOMIC SYSTEM
 Federal control
 Tribal enterprise
 Private (Micro) Enterprise with Tribal
Member Ownership
 Private Enterprise with Nontribal Member
Control
35

36. DEVELOPMENT ACTIVITY
These projects range from chopstick
factories to gambling casinos,
from hazardous waste facilities to resort
hotels.
36

37. DEVELOPMENT ACTIVITY
 Separate good opportunities from bad
 Make wise and productive decisions
 Basic governmental (constitutional) form
 Judicial institutions
 Regulatory institutions
 Economic policies
37

38. IMPLICATIONS FOR POLICY
 Requires many ingredients—capital,
skills, resources, stable institutions, and
attractive market opportunities
 Informed, thoughtful policymaking
 Sovereignty brings accountability and
allows "success"
38

39. CONCLUSION
The first is sovereignty
 The power to make decisions about your own future.
The second is institutions
 Effectively exercise sovereignty
 Transition is difficult pass two tests: adequacy &
appropriateness
The third factor is development strategy
 Choosing the economic policies and specific
development projects to pursue
39

40. Economic Development Stories
40

41. Success Story #1
The Alexis First Nation # 133 is located on
the shores of Lac Ste. Anne, in Alberta. The
Band has other reserve lands in Whitecourt,
Cardinal River near Jasper National Park,
and Elk River Crossing in the foothills of
Jasper
41

42. 42

43. Alexis Band Profile
 There are approximately 1400 Alexis Band
Members, of which 800 members reside on
reserve # 133. There are 600 members
residing off reserve to pursue higher
education or employment
 There is a high youth population between
the ages of 16 to 30, which comprises about
45% of our population
43

44. Mission Statement
NCL was established to initiate the participation of
the Nation within the Construction industry. Our
company is mandated to pursue the principle of
self-reliance by promoting the core values of our
peoples and Nation.
We believe that partnerships are integral to
accomplishing our goal of building a profitable
company, and pursue when feasible partnerships
that benefit all parties involved.
Returning customers is our ultimate goal.
44

45. Nakoda Construction
• Oil field construction business in operation
for 2 years. The business is run somewhat
like a temp agency with 5 or 6 permanent
employees and approximately 30 to 40
temporary finding work in the oil field for
bands members.
• The employee base is predominantly from
Tsuu T’ina or Alexis Nakota Sioux Nation
45

46. Day Rates
Foreman (with 4x4 & cell) $500
Supervisor On Site $40 / hour
Labour $35 / hour
Environment Impact Liaison (with 4x4 pick up / cell) $300
Professional Fees $1,000
Meals, Incidentals, Travel $150
Subsistence $125
46

47. Nakoda
• Co does not discriminate so will
certainly hire outside the band
• Last year they made around $1.5 M and
recently received a grant for equipment
from INAC
• www.alexisnakotasioux.com
47

48. 48

49. Aboriginal Tourism
• Model for development
49

50. 50

51. St Eugene Mission
• Near Cranbrook
• Chief Sophie Pierre
• Key is a partnership between a Hotel Chain,
Delta, and the Ktunaxa Nation who had the
location, valued heritage landmark, history
and cultural features
51

52. 52

53. 53

54. • The Ktunaxa Kinbasket Tribal Council has
received approval for $3 million in federal funding
for the redevelopment of the historic St. Eugene
Mission, which will be a major component of a
new $40.8 million international four-season resort
in the Rockies.
• Delta Hotels will build and operate a separate 125-
room hotel, casino and conference centre slated to
open in May 2002.
54

55. Deeper Meaning
As we worked to finalize this project, we
were continually guided by the vision of
one of our elders, Mary Paul, who said in
1994 that it was within the St. Eugene
Mission that the culture of the
Kootenay Indian was taken away,
and it should be within that building
that it's returned.
55

56. Cultural Tourism
• Is fast becoming one of the hottest
international trends.
• Last year $474 million (not including
casinos) was spent on Aboriginal tourism
• With casinos this number rises to 4.9
billion!!
56

57. Cultural Tourism
• Either directly or indirectly across Canada
Aboriginal tourism employs over 32,000
people
• This is only the beginning!
• Aboriginals possess 2 of tourisms greatest
assets, does anyone know what they are?
57

58. Cultural Tourism
1. Unique cultural heritage
2. Access to and an understanding of the
natural attractions of Canada
58

59. Cultural Tourism
Two of the major concerns that have
surfaced in this particular industry:
• Authenticity of Products and/or
Facilities
• Cultural Integrity
59

60. Authenticity of Products and/or
Facilities
Authenticity means different things to
different people
Discussion
What does “authentic experience” mean to you?
What do you think it means to tourists?
60

61. Cultural Tourism
• Tourists “authentic expectations” may
include:
– Ancient traditions
– Customs
– Seeing Indians on horseback
– Dog-sledding through the north
– Following trap lines
61

62. Cultural Tourism
• Some feel that developing tourism can have
a negative impact on the host community
and the culture
• This can create friction between the two
(aboriginal and tourists) communities
62

63. Helpful Guidelines
Involve the surrounding communities from
the beginning
– there may be many or few, but local support is
important to success
Take advantage of the unique
circumstances that are specific to your area
Respect and uphold the wishes of the
Elders in the community of the business
63

64. Helpful Guidelines
• Take advantage of external and internal
influences that have encouraged change
throughout history.
• What are some external changes that you
have noticed?
• Are they negative or positive?
• What are some internal changes that have
taken place?
• Are they negative or positive?
64

65. Change
• External changes
• Colonization
• Treaties
• Residential schools
• Fur trade
Whether negative or positive they have
played a role in cultural invasion and
degradation
65

66. Change
• Internal changes
– Renewed strength
– Taking back control
– Enterprise
– Return to cultural teachings
66

67. Promoting your Community
• Build Partnerships
Promoting your
• Research your nations
community can history
be difficult but • Determine what you
with focus and want to share
• Choose your message
clear goals can be carefully
fulfilling and very • Build on ONE major
successful attraction
• Share it with the world
• Welcome the world
67

68. Promoting your Community
Building Partnerships
• Cooperate with other FN’s tourism
operators
• Cooperate with non-aboriginal business
owners
• Discuss common goals
68

69. Promoting your Community
Determine what
Research your you want to share
Nation’s History •What do you want
people to know
•Protect what is sacred
•Accuracy in •Ease the fears of wary
•Maintain credibility members
•Resolve myths •It’s important that
regarding your culture what you want to share
be agreed upon by all
69

70. Promoting your Community
Choose your messages carefully
• In the past Aboriginals have been portrayed as
warriors, drunks, savages and mystics. Is this
what you want?
• Present authentic and accurate portrayals of your
history and culture.
• Use choice words and images that accurately
represents what you want to share
70

71. Promoting your Community
Build on one major • Look closely at your
attraction environment and
•Cultural tourists are looking choose a signature
for the “big experience” attraction.
– Site of a historical – Traditional music or
battle
dance
– See a 5000 year old
artifact – Art studio
– Biggest redwood tree – Traditional food
– Largest tipi – Ancient site
71

72. Promoting your Community
Tell the world!!
• Develop promotional material
• Media campaign
• Websites
• Local signage
• News articles
72

73. Promoting your Community
Enthusiastically welcome the world!!
• Everyone needs to be encouraged to offer
polite assistance to your guests
• Respect
• Friendship
• Sharing
• Community pride
73

74. THREE MODELS
Self-government model
Public government model
Community of Interest model
74

75. Band Models
 Native leaders must work with the people,
not on behalf of their people
 Natives must survive as Natives. Natives
must define and work out what this means
and what implications may be.
Taken from(Boldt 1993, p.163)
75

76. Band Models
Representation, Aboriginal identity
preservation, and the means:
construction of  history
Aboriginal cultures  ancestry
 culture
 values
 traditions
 ties to the land
76

77. SELF GOVERNMENT
Issues that come into
play:
 Jurisdiction  Economic situation
 Outworking of  Territorial size and
relationships between existing land base
Aboriginal  Population size and
governments and density
federal & provincial
 Cultural
governments
characteristics
77

78. PUBLIC GOVERNMENT
 Aboriginal majority retains constitutionally
protected
 Extend over a geographically defined
territory, and would serve all residents
within the territory: Aboriginals and non-
Aboriginals alike; and Aboriginals from
different nations and backgrounds.
78

79. PUBLIC GOVERNMENT
 Sufficiently empowered to support the goals
of Aboriginal peoples in economic, social,
cultural, and political areas
 Exclusive rights in the use of renewable
resources
 Protection of Aboriginal heritage, language,
and traditions.
79

80. PUBLIC GOVERNMENT
Aboriginal public governments may operate
at the community, regional, or territorial
level, depending on whether they are
organized centrally or federally
80

81. COMMUNITY OF INTEREST
 Not territorial or land based
 Model of government is based on
Aboriginal identity (regardless of affiliation
with a nation), and is completely voluntary
 Works best in urban areas
81

82. COMMUNITY OF INTEREST
Main focus on the delivery of programs and
services:
 social services
 child welfare
 housing
 economic development
 education
 Culture
 language
82

83. Agenda
 Myths
 Opportunity
 You got a casino, now
what?
 Different types of
Development
 Needs & Success
 Customized and non
traditional training
opportunities
 Measuring success
83

84. Some Myths about
Aboriginal Workers
• They are rural
• Numbers are small
• They are uneducated
• They are economically
insignificant
84

85. Rural Myth Shattered
Most are within one hour
of urban centre!
85

86. Myth:
First Nations
population is
small in
numbers
86

87. Myth: Few
First Nations
people are
educated
87

88. Myth: First Nations people have little
purchasing power
• Tripled 91 to 96
• From $4.5B
to $11.35 B
• Land claims –
25% of Canada
total area
88

89. Changing First Nations
Communities
• Traditional First • Over time this has
Nations changed
communities • Role of Band now
• Indian Agent seen as creator of
jobs, equal
• Treaty monies business partner
• Resource revenues with non-
perhaps aboriginal
business
• Little hands-on
• Need for
management
competitive HR
policies
• Training of staff 89

90. The Challenge
• First Nation working
age population of
600,000
• unemployment rate of
70%
• Huge opportunities to
create jobs to solve this
problem
90

91. First Nations are perfectly positioned to
replace retiring boomers
91

92. Casino Magic
92

93. Casino Case Study
• You have been granted a Casino license
• Who is going to manage it
• Who is going to work it?
• Take a couple minutes and write down what
HR things you would have to do to get the
Casino operating
93

94. Different Types of
Development
There are different types of development such
as ( not in priority order):
• Life Skills
• Employability
• Labour Market
• Capacity Building
• Traditional
94

95. • Life Skills – get people ready to learn. Courses such as self
esteem, anger and time management
• Employability – finding and keeping a job. Courses such
as employer expectations, employee rights, preparing
resumes and interview preparation.
• Labour Market – get people jobs. Courses such as Nursing
Attendant, Introduction to trades, and academic upgrading
• Capacity Building – courses that enhance and complement
existing employee skills. For example, the Human
Resource Technician Program
• Traditional – on site secondary and post secondary
institutions, seminars and conferences.
95

96. Which type of development to
we start with?
It depends on two things:
• Where you want to
be
• Where you are right
now
• Thus we have to
define two things:
1. Needs
2. Success
96

97. Needs & Success
• I believe you have to start at the end and work
backward
• So we start out by defining what we want to
accomplish and what is the result we want to
achieve
• This criteria should be applied to every type of
development listed earlier
• Care should be taken not to fall into the “well
rounded trap”
97

98. Needs & Success
The “Well Rounded Trap”
• Many times we focus upon improving a person’s
weaknesses and ignore their strengths or talents
• We all have talents and we should focus more on
using them
• Improving weaknesses should be more of a
maintenance factor and careful analysis should be
taken to ensure we are not wasting time on
something that isn’t really necessary
98

99. Needs & Success (continued)
• Once you define the outcome, you look at
where you are now.
• A Human Resource Inventory can be useful
• The inventory should include development
taken, work experience and personal
significant events to get a complete picture
of where the person is now
99

100. Needs & Success (continued)
• Once the inventory is complete an analysis
of the inventory should be undertaken.
• A Human Resource Inventory analysis
looks at the inventory and compares where
the individual should be based on the
inventory and where they actually are
• There are three scenario’s that can appear at
the end of the analysis.
100

101. The Three Scenarios
1. Person’s skills match inventory – Proceed
to matching development with needs
2. Person’s skills exceed inventory – look for
critical development areas
3. Person’s skills are below inventory –
determine why, then proceed to matching
development to needs
101

102. Match need to development
• Here you determine what you need to
succeed
• The key of course is to get the specific
development(s) to meet the need
• Usually the unique development required
is not available
102

103. Customized & Non
Traditional Training
Customized training is
training massaged to
meet your specific
needs
Non Traditional training
refers to different
locations and types of
training delivery
103

104. Customized Training
• In Alberta at least two post secondary institutions
have a customized training department; one
department is called aboriginal and customized
training.
• Their role is to provide the development to
specifically meet your needs whether this is
through an established course, modifying a course
to meet your needs or to write a new course
• Contact your local post secondary institution and
see if they have a department that specializes in
custom training
• Make sure that they are meeting your needs and
not trying make your needs fit into their system
104

105. Non Traditional Training
• Usually training is set to a schedule and at
the educational institution.
• Most of courses can be delivered right in
your community, unless specialized
facilities are req’d
• The delivery times can be set at each
session and based on the availability of the
class and the instructor
105

106. Customized Training
1. Human Resource Technician Certificate – the Saddle
Lake Reserve HRD department needed certification
from a recognized post secondary institution. Six
courses from an established program were selected by
Saddle Lake and delivered on site by the same
instructor.While we attempted to meet every week, the
last thing we did at the end of each day was to schedule
the next day, based on availability.Thus flexibility and
consistently was present for the duration of the program.
Upon completion the participants received a certificate
from the post secondary institution.The same program
was delivered to four communities in Hobbema as well.
106

107. Customized Training
2. Supervisory Development Certificate
Program – This program has four
compulsory courses and six electives (out
of 10 electives). It is being delivered on
weekends at a post secondary institution
and on site. One company started an on
site delivery of one course( 2 full days)
every two weeks. It was found that this
was too much. So the times and dates
were modified to meet the class needs.
107

108. Measuring Success
• What are the results?
• Are the results exactly as
anticipated, exceeding
projections or less than
projections?
• Do the costs justify the
results?
108

109. Measuring Success
• Results should be measured after each
segment of development, not only at the end
• In this way, adjustments can be made to
ensure success
• Follow up is very important: one month,
three months and six months at a minimum
109

110. Training Conclusion
• Capacity Building and Employee Skill Building is
like an iceberg - lots of pre and post work is
essential for the tip (development) to succeed
• You have to know what you want before you can
get there.
• Measuring success at intervals during the process
is more effective than at the end of the process
110

111. Do you ha ve a ny:
Comments?
Questions?
Feedback?
111

112. Band Models
Representation, Aboriginal identity
preservation, and the means:
construction of history
Aboriginal cultures ancestry
culture
values
traditions
ties to the land
112

113. THREE MODELS
Self-government model
Public government model
Community of Interest model
113

114. SELF GOVERNMENT
Issues that come into
play:
 Jurisdiction  Economic situation
 Outworking of  Territorial size and
relationships between existing land base
Aboriginal  Population size and
governments and density
federal & provincial
 Cultural characteristics
governments
114

115. PUBLIC GOVERNMENT
 Aboriginal majority retains constitutionally
protected
 Extend over a geographically defined territory,
and would serve all residents within the
territory: Aboriginals and non-Aboriginals
alike; and Aboriginals from different nations
and backgrounds.
115

116. PUBLIC GOVERNMENT
 Sufficiently empowered to support the goals of
Aboriginal peoples in economic, social,
cultural, and political areas
 Exclusive rights in the use of renewable
resources
 Protection of Aboriginal heritage, language,
and traditions.
116

117. PUBLIC GOVERNMENT
Aboriginal public governments may operate
at the community, regional, or territorial
level, depending on whether they are
organized centrally or federally
117

118. COMMUNITY OF INTEREST
 Not territorial or land based
 Model of government is based on Aboriginal
identity (regardless of affiliation with a nation),
and is completely voluntary
 Works best in urban areas
118

119. COMMUNITY OF INTEREST
Main focus on  social services
the delivery of  child welfare
programs and  housing
services:  economic
development
 education
 Culture
 language
119

120. Information Sources
 http://www.ksg.harvard.edu/hpaied/pubs/pub_120.
Professors Stephen Cornell and Joseph P.
Kalt
 Promoting our History – Barbara Hagar
 Aboriginal Tourism, Culture and Communities
– Trina Mather - Simard
 Boldt 1993
120

121. Our offer to you
• Please call if you have any HR, or workplace
issue that you are overwhelmed with
• We can help you
• We also are pleased to do Free Workshops for
your organization (some limits apply) Let us
know what your needs are and we will make it
happen!
121

122. CG Hylton - Services
• HR Consulting • Benefits, Pensions,
• Job Descriptions EAP
• Salary Grids • Strategic Planning
• Wellness at Work • Drug and Alcohol
programs
• Staff Morale
• Dept re-orgs
• Training and
Workshops • Leadership
compensation
Tel 403 264 5288
chris@hylton.ca
122

123. Hylton
Associates
would like to
thank you for
the opportunity
to meet with
you today
123