Native People, Economic Conditions

Historical

Aboriginal economies were based primarily on sharing (a familistic, egalitarian pooling of resources) in the 26 simple or BAND-level societies to the north; on reciprocity (a calculated, give-and-take exchange) in the 17 intermediate or "tribal"- level societies to the south; and on redistribution (a centralized and politically organized administration of the economy) in all 11 developed chiefdoms of the Northwest Coast. These highly ranked Pacific Coast societies did buy and sell slaves, who made up about 10% of the population. No native societies had true money, or any medium of exchange with high "liquidity," by which one thing such as coins could buy a wide variety of goods and services. There were no true markets where prices were primarily set by the supply and demand of goods. There was no such thing as employment for wages. During the FUR TRADE period, however, the elements of a barter/wage economy infiltrated many native communities.

Keywords

Native Peoples

Labour Force Participation

In 1981 only about 38% of status INDIANS over 15 years of age were "employed," in the sense of working for a monetary income, compared to 60% of the general population over 15. According to the 1996 INDIAN AND NORTHERN AFFAIRS CANADA (INAC) departmental data, the 1991 labour force participation rate of Registered Indians aged 15 years and older living on reserve was only 47%, compared to 68% of the general population over 15. The 1991 Aboriginal People's Survey reported that among the 388 900 adults surveyed aged 15 and older, only 43% were "employed" in the sense of working for a monetary income, compared to 61% of the total Canadian population over 15.

Modern Native Economy

It must be realized, however, that such low levels of native participation in the labour force are primarily due to structural constraints. To the degree that native people in Canada today participate in their aboriginal economic heritage, they have problems in integrating with the general Canadian economy. Just as any new entrepreneur, a native trying to get into business has to learn the details of a new and complex system involving such things as accounting, bidding, contracts, licences, loans, unions and taxes. The 1991 Aboriginal People's Survey found that the "unemployment rate," - those seeking wage employment and unable to get it - was 25% among adults who reported an aboriginal identity; it was 10% in the general population in 1991, as reported in the Canadian Census.

Three factors have been particularly important in patterning modern native economies: the specific evolutionary heritage of each of the surviving traditional societies; the extent to which individuals were drawn in the past into the money, market and wage economy; and the federal government's role in the support and administration of the economies of the native communities.

In general, the more socially and politically complex aboriginal societies adapted most successfully, at time of contact, with the non-native economy, and this holds true of their participation in the modern economy. Natives with a heritage that goes back to the chiefdoms of BC or to the southern tribes, such as the BLACKFOOT, MOHAWK or HURON, have higher incomes than the INUIT, DENE and northern ALGONQUIN peoples with a band heritage. Historical differences in participation in the modern economy have shown up in the same societies; the CREE and OJIBWA, eg, who moved onto the prairies with the fur trade, made economic advances over those who remained in their homelands in northern Québec and Ontario. This economic boom made Cree and Ojibwa the largest and second-largest native societies in Canada respectively.

Government Funding

After WWII, and especially in the 1960s, the federal government began to play a more active role in the delivery of social, educational and economic development services to native communities (see NATIVE PEOPLE, GOVERNMENT PROGRAMS). Since the early 1980s, federal expenditures directed toward aboriginal peoples have more than tripled, growing from $1.4 billion in 1980-81 to $5.6 billion in 1995-96. Currently, the federal government's mandate requires that approximately $4.9 billion of the $5.6 billion is directed at Registered INDIANS living on RESERVES and the Inuit.

Economic Participation

Aboriginal economic participation, such as employment participation rates and earned income, is significantly below the Canadian average. Other social indicators such as life expectancy, disability and death rates also show that natives generally face worse living conditions than other Canadians (see NATIVE PEOPLE, SOCIAL CONDITIONS). Historically, FIRST NATIONS and Inuit communities did not control their own economic and social development destinies. The Canadian government now believes that aboriginal peoples have the inherent right to SELF-GOVERNMENT. Through the Canadian Aboriginal Economic Development Strategy, First Nations and Inuit communities now manage resource development, aboriginal business activity and community economic planning. INAC's Basic Departmental Data for 1996 show over 400 community economic development organizations which are accountable to and managed by First Nations communities.

Housing

In Canada, about 60% of all houses in rural, summer cottage and remote bush areas have running water, sewage disposal and indoor plumbing. Natives have historically lived in seriously inadequate housing conditions. In the 1960s less than half of the on-reserve houses had electricity and few had piped water or sewage systems. The INAC Report for 1996 indicates that approximately 90% of native residences have sewage disposal systems and about 96% have water delivery systems. Electricity is also available to nearly 100% of the communities. Native homes are now being built to national building code standards. An average of 3338 new dwelling units per year were constructed on reserves between 1983-84 and 1995-96. In 1995-96, 2427 new dwelling units were built on reserves.

Land and Economy

The land base of the 2376 Indian reserves and settlements tends to be quite small (3 million ha or 30 000 km² in 1996 was held in trust). By 1998, 12 comprehensive land claim settlements were reached. The average size of a Canadian Indian reserve is 1100 ha. Most of the land is suitable only for primary production such as fishing and forestry. About 20% of First Nations land has good agricultural potential, but this land is located largely in southern Canada where natives already have access to other forms of employment.

Employment and Income

Labour force statistics for 1991 indicate a high level of dependency and a level of wage employment that is only half that of the national average. A significant number of natives still harvest fish and game for subsistence purposes in the traditional style. Native people are strongly represented in outdoor and seasonal work, though these occupations pay less than such indoor and year-round work as professional, technical, managerial, clerical, sales and service occupations. According to the 1991 Aboriginal People's Survey, 12% reported income of under $2000 and an additional 18% reported income between $20 000 and $39 999. For the total Canadian population aged 15 and older, only 6% reported income of under $2000, while 28% reported income between $20 000 and $39 999.

Education and Economic Conditions

The low incomes, widespread poverty and high unemployment of native people are the result of both structural constraints and individual attributes. Cultural heritage, occupational constraints, lower levels of education, residence far from the main centres of the economy and racial discrimination all play a role in the disadvantaged socioeconomic conditions of native people. Almost all native people complete elementary school, most have some secondary education and a small percentage complete college or university (see NATIVE PEOPLE, EDUCATION). On average, the formal education of native adults is only about 2 years below the national average; and the gap is closing, with non-native rural students spending roughly the same number of years in school.

Elementary and secondary education are provided by public schools, band-operated schools or schools under provisional education authorities. In recent years, FIRST NATIONS band councils have opted to administer all or parts of their educational programs. By using the community resources such as including the participation of native elders and teaching traditional skills, the special needs of native children are met. There has also been a considerable and steady increase in enrolment attendance and retention rates in band-operated schools. The 1996 INAC departmental data indicate that the kindergarten, elementary and secondary enrolment in band-operated schools increased from 5% in 1976-77 to 57% in 1995-96, while the enrolment in federal schools dropped from 42% in 1976-77 to less than 2% in 1995-96. The proportion of children enrolled in provincial/private schools also declined from 53% in 1976-77 to 42% in 1995-96. There has also been a considerable increase in post-secondary enrolment among Registered Indians. The number of Registered Indians enrolled in post-secondary institutions increased from 3599 in 1977-78 to 26 305 in 1995-96. The 1991 Aboriginal People's Survey found that 33% of the adults aged 15-49 who identified with an aboriginal group reported having some post-secondary education (including a university degree).

Native Enterprises

Indications of a prosperous future are seen in several current First Nations enterprises. Aboriginal people are involved in all business sectors including manufacturing, forestry, knowledge-based services, fine art, traditional crafts, high fashion, tourism and software development. There is a national distribution of small business in native communities - retail stores, beauty salons and barber shops, laundromats, tourist camps and leasing of cottage lots; in Québec, manufacturing of canoes and lacrosse sticks, a fish-packing plant, a shopping centre and the high-steel construction work of the Mohawk; in Ontario, manufacturing of shoes and fur coats, an industrial park, a ski resort, a large cranberry farm and over 125 tons of wild rice production per year; in Manitoba, 2 bush airlines, a shopping centre and honey production; in Saskatchewan, farming and ranching; in Alberta, the Sawridge Motor Hotel in Jasper, manufacturing prefabricated houses, petroleum production and cattle ranching; in BC, fish farming and packing, forestry and lumber milling, mining services and office rentals; in the Northwest Territories, the Inuit Development Corporation investments in mining, a hotel and office buildings.

Economic Programs

Industry Canada's Aboriginal Business Canada program has provided over $300 million for financing native businesses. The Community Economic Development Organizations, managed by First Nations communities, also provide various economic development incentives through business, employment and resource development initiatives. Although many native enterprises are heavily subsidized by government and band funds, they are hopeful signs of the growth of a native entrepreneurial system.

Métis Economy

The 1991 Aboriginal People's Survey found that the unemployment rate for adult Métis is around 22%. Among those who are employed, 26% reported employment income between $20 000 and $39 000, 7% lower than the total Canadian population over the age of 15. They live generally in the same regions as natives, with a greater tendency for urbanization. Eight Métis communities in 5 areas in Alberta live on provincially established settlements and are involved in fishing, farming and logging. In some provinces the Métis have separate rights and regulations from other native people. Alberta and the Northwest Territories, for example, permit them to do general subsistence fishing, and Ontario and New Brunswick have special Métis provisions for certain fishing areas.

Inuit Economy

Norman Wells
Oil and gas fields in the area produce over a million barrels of crude oil per year (photo by J. Goddard/courtesy Govt of the NWT).

The arctic economy is still primarily based on government programs, such as those of northern development and defence. In the Western Arctic, some Inuit are employed in the oil and gas industry and related enterprises. Hunting, fishing and trapping still provide many Inuit with their nutritional food and supplement many incomes. In recent years, the Inuit's economic base is far more diversified, with a demand for Inuit carvings and prints which are generally sold through INUIT CO-OPERATIVES. These provide a steady source of income to numerous communities.

Author JOHN A. PRICE Revised: FRANK TROVATO and MELINDA MILLS

Links to Other Sites

Aboriginal Canada Portal
The Aboriginal Canada Portal provides First Nations, Métis, and Inuit online resources and information about related government programs and services. A Government of Canada website.

Encyclopedia of Canada's Peoples
The website for the "Encyclopedia of Canada's Peoples." Click on the links for feature articles about Canada's many multicultural communities, access to their extensive digital archives collection, learning modules, and much more. From "Multicultural Canada."

CBC Aboriginal
This website offers links to various CBC programs and features concerning Canada's aboriginal communities.

Denesuliné (Dene)
An illustrated history of the Denesuliné (Dene) in northern Saskatchewan. Includes online copies of archival photos and related documents. From the Northern Research Portal, University of Saskatchewan Library.

English: Contemporary Aboriginal Voices
Learning activities in which students analyse the relationships depicted by Aboriginal writers, with specific reference to cultural, spiritual, and societal interaction. From the website for Curriculum Services Canada.

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