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Frontier Centre for Public Policy

To Truly Help Indigenous Communities Prosper, We Must Put the Economic Horse Before the Political Cart

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From the Frontier Centre for Public Policy

By Joseph Quesnel

Conservative leader Pierre Poilievre has surprised a lot of people by placing a real emphasis on his party’s relationship with Indigenous peoples. Not only has he recruited high-profile Indigenous politicians like Ellis Ross and Chief Billy Morin to be candidates, but he’s even addressed the annual meeting of the Assembly of First Nations.

As he thinks about how best to translate these efforts of engagement and outreach into a practical policy agenda, he ought to prioritize economic reconciliation over certain political reforms. This is a balance that the Trudeau government has failed to abide by.

In November 2021, Prime Minister Justin Trudeau issued a statement on the 25th anniversary of the final report of the Royal Commission on Aboriginal Peoples (RCAP)—a massive five-volume report containing 440 recommendations covering most areas of Canada’s Indigenous life.

The prime minister proudly stated his government followed through on one RCAP recommendation: In 2017, it established the Department of Crown-Indigenous Relations and North Affairs and the Department of Indigenous Services as separate departments.

Yet his government neglected—like others before it—a much more significant recommendation: the creation of economically viable and eventually self-sufficient Indigenous communities.

The result is that most Indigenous governments in Canada—even self-governing modern treaty governments—are no closer to achieving RCAP’s vision of self-sufficient Indigenous governments.

It reflects a consistent problem in the discourse about advancing progress towards the overall goal of reconciliation. Indigenous activists and scholars too often put the politics of self-government before economics.

They advocate for independent political institutions, but without a realistic economic plan, these institutions will not be free of federal economic paternalism.

They fail to put the political cart behind the economic horse.

Over 20 years ago, Dene leader Stephen Kakfwi told an interviewer that First Nations seeking self-government must first consider their community’s financial viability. No government in the world, he said, provided free housing, free education, and free government. Kakfwi wisely observed that this would not create self-reliant individuals, families, and communities.

So, what will ensure a path toward economic viability for Indigenous communities that leave the Indian Act? Long-term data on Indigenous communities provides answers.

The National Indigenous Economic Development Board (NIEDB)’s flagship Aboriginal Economic Benchmarking Report found a recurring positive correlation between greater control over land and resources and higher socio-economic outcomes.

The NIEDB’s research reveals Canada’s modern treaty process provides the greatest Indigenous economic freedom because it provides the most significant control over land and resources. Modern treaties are land claims agreements signed since the 1970s between the Crown and First Nations, in which Indigenous parties abandon reserves and federal oversight. They involve wide-reaching control over lands and resources and often self-governing institutions.

These agreements provide a favourable investment climate and create greater potential for economic development and growth by instilling certainty over rights to land and resources.

Consider two case studies, one in the U.S. and one in Canada, to understand this fully.

First is the 1971 Alaska Native Claims Settlement Act (ANCSA). The second is the 1984 Inuvialuit Final Agreement (IFA). Both agreements involved Northern Indigenous groups extinguishing rights and title in exchange for cash and full control over lands and resources. Both agreements created arm’s length corporate structures to make sound business and investment decisions for the community.

Through ANCSA, U.S. Congress provided Alaska Natives with a total cash settlement of $962.5 million and title to surface and sub-surface to 40 million acres.

ANCSA turned the Alaska Native communities into for-profit regional and village corporations with legal obligations to generate profits for their shareholders.

Alaska Natives would not allow these entities to become regular corporations. They banned selling and trading shares on the open market. They adopted ancestral restrictions on shareholder eligibility to prevent takeovers.

Alaska Native communities used their revenues to establish a fiscal relationship between all corporations that included resource revenue sharing.

As a result, ANCSA created a significant socio-economic change within the Alaska Native population and shifted from subsistence-based activities toward a more middle-class existence over a few decades.

The corporation’s economic power rested on natural resource wealth (oil and timber). However, wise investment of settlement monies and resource revenues into other businesses and ventures ensures future economic viability.

Now, turning to Canada.

The Inuvialuit of the Western Arctic signed the Inuvialuit Final Agreement (IFA) with the federal government. The IFA created two institutions, the Inuvialuit Regional Corporation (IRC) and the Inuvialuit Game Council to oversee wildlife.  The IRC corporate structure encompasses six community corporations.

The Inuvialuit Development Corporation (IDC) was the IRC’s business unit. The IDC invested settlement monies into business ventures within and outside the settlement region, focusing on creating Inuvialuit jobs. The IDC created over 20 subsidiary businesses and joint ventures in seven major business sectors. They invested in construction, manufacturing, environmental services, transportation, tourism and hospitality, real estate, and petroleum servicing.

The Inuvialuit Investment Corporation (IIC) is the IRC’s second subsidiary. IIC protects Inuvialuit funds, earns a five percent long-term return, and manages Inuvialuit corporation investment funds.  Inuvialuit Social Development Fund—the non-income generating part of the IRC—provides Inuvialuit housing, health, welfare, education, and traditional language services.

The IFA created significant socio-economic change within the Inuvialuit Settlement Region, paralleling changes within Alaska Native society after the ANCSA. The two communities differ because the promised Mackenzie Valley Pipeline project never materialized for the Inuvialuit while the Trans Alaskan Pipeline did.

One wonders how the Mackenzie Valley Pipeline could have economically improved the condition of the Inuvialuit.

So, can one conclude Indigenous communities cannot achieve economic viability without substantial natural resources? Not necessarily. Indigenous communities without substantial natural resources tend to adopt two other economic development strategies: 1) expanding land holdings, including valuable urban lands; and 2) developing high-value-added, reserve-based businesses and niche industries.

Studies by the Fraser Institute and the C.D. Howe Institute reveal that many First Nations in Canada have access to their own source revenues. A 2016 Fraser study found at least 100 First Nations at that time had access to their own source revenues that exceeded government transfers.

To replicate such successes, Ottawa must fundamentally re-orient its Indigenous policy.

The federal government—in working with First Nations seeking freedom from the Indian Act and reserve system—must develop realistic economic viability plans before signing agreements. Ottawa must place economic success and viability at the centre of its Indigenous policy approach. New agreements must include for-profit corporate structures. Ottawa must provide Indigenous communities with the fiscal tools they need to succeed, including self-taxation powers and the ability to easily expand their land base for economic purposes.

Finally, Ottawa must recognize that future Indigenous economic viability hinges on the future of Canada’s resource economy. Governments must abandon green transition policies that run counter to future Indigenous viability.

First published here.

Joseph Quesnel is a Senior Research fellow with the Frontier Centre for Public Policy

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Frontier Centre for Public Policy

Tent Cities Were Rare Five Years Ago. Now They’re Everywhere

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From the Frontier Centre for Public Policy

By Marco Navarro-Genie

Canada’s homelessness crisis has intensified dramatically, with about 60,000 people homeless this Christmas and chronic homelessness becoming entrenched as shelters overflow and encampments spread. Policy failures in immigration, housing, monetary policy, shelters, harm reduction, and Indigenous governance have driven the crisis. Only reversing these policies can meaningfully address it.

Encampments that were meant to be temporary have become a permanent feature in our communities

As Canadians settle in for the holiday season, 60,000 people across this country will spend Christmas night in a tent, a doorway, or a shelter bed intended to be temporary. Some will have been there for months, perhaps years. The number has quadrupled in six years.

In October 2024, enumerators in 74 Canadian communities conducted the most comprehensive count of homelessness this country has attempted. They found 17,088 people sleeping without shelter on a single autumn night, and 4,982 of them living in encampments. The count excluded Quebec entirely. The real number is certainly higher.

In Ontario alone, homelessness increased 51 per cent between 2016 and 2024. Chronic homelessness has tripled. For the first time, more than half of all homelessness in that province is chronic. People are no longer moving through the system. They are becoming permanent fixtures within it.

Toronto’s homeless population more than doubled between April 2021 and October 2024, from 7,300 to 15,418. Tents now appear in places that were never seen a decade ago. The city has 9,594 people using its shelter system on any given night, yet 158 are turned away each evening because no beds are available.

Calgary recorded 436 homeless deaths in 2023, nearly double the previous year. The Ontario report projects that without significant policy changes, between 165,000 and 294,000 people could experience homelessness annually in that province alone by 2035.

The federal government announced in September 2024 that it would allocate $250 million over two years to address encampments. Ontario received $88 million for ten municipalities. The Association of Municipalities of Ontario calculated that ending chronic homelessness in their province would require $11 billion over ten years. The federal contribution represents less than one per cent of what is needed.

Yet the same federal government found $50 billion for automotive subsidies and battery plants. They borrow tonnes of money to help foreign car manufacturers with EVs, while tens of thousands are homeless. But money alone does not solve problems. Pouring billions into a bureaucratic system that has failed spectacularly without addressing the policies that created the crisis would be useless.

Five years ago, tent cities were virtually unknown in most Canadian communities. Recent policy choices fuelled it, and different choices can help unmake it.

Start with immigration policy. The federal government increased annual targets to over 500,000 without ensuring housing capacity existed. Between 2021 and 2024, refugees and asylum seekers experiencing chronic homelessness increased by 475 per cent. These are people invited to Canada under federal policy, then abandoned to municipal shelter systems already at capacity.

Then there is monetary policy. Pandemic spending drove inflation, which made housing unaffordable. Housing supply remains constrained by policy. Development charges, zoning restrictions, and approval processes spanning years prevent construction at the required scale. Municipal governments layer fees onto new developments, making projects uneconomical.

Shelter policy itself has become counterproductive. The average shelter stay increased from 39 days in 2015 to 56 days in 2022. There are no time limits, no requirements, no expectations. Meanwhile, restrictive rules around curfews, visitors, and pets drive 85 per cent of homeless people to avoid shelters entirely, preferring tents to institutional control.

The expansion of harm reduction programs has substituted enabling for treatment. Safe supply initiatives provide drugs to addicts without requiring participation in recovery programs. Sixty-one per cent cite substance use issues, yet the policy response is to make drug use safer rather than to make sobriety achievable. Treatment programs with accountability would serve dignity far better than an endless supply of free drugs.

Indigenous people account for 44.6 per cent of those experiencing chronic homelessness in Northern Ontario despite comprising less than three per cent of the general population. This overrepresentation is exacerbated by policies that fail to recognize Indigenous governance and self-determination as essential. Billions allocated to Indigenous communities are never scrutinized.

The question Canadians might ask this winter is whether charity can substitute for competent policy. The answer is empirically clear: it cannot. What is required before any meaningful solutions is a reversal of the policies that broke it.

Marco Navarro-Genie is vice-president of research at the Frontier Centre for Public Policy and co-author with Barry Cooper of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).

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Agriculture

The Climate Argument Against Livestock Doesn’t Add Up

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From the Frontier Centre for Public Policy

By Joseph Fournier

Livestock contribute far less to emissions than activists claim, and eliminating them would weaken nutrition, resilience and food security

The war on livestock pushed by Net Zero ideologues is not environmental science; it’s a dangerous, misguided campaign that threatens global food security.

The priests of Net Zero 2050 have declared war on the cow, the pig and the chicken. From glass towers in London, Brussels and Ottawa, they argue that cutting animal protein, shrinking herds and pushing people toward lentils and lab-grown alternatives will save the climate from a steer’s burp.

This is not science. It is an urban belief that billions of people can be pushed toward a diet promoted by some policymakers who have never worked a field or heard a rooster at dawn. Eliminating or sharply reducing livestock would destabilize food systems and increase global hunger. In Canada, livestock account for about three per cent of total greenhouse gas emissions, according to Environment and Climate Change Canada.

Activists speak as if livestock suddenly appeared in the last century, belching fossil carbon into the air. In reality, the relationship between humans and the animals we raise is older than agriculture. It is part of how our species developed.

Two million years ago, early humans ate meat and marrow, mastered fire and developed larger brains. The expensive-tissue hypothesis, a theory that explains how early humans traded gut size for brain growth, is not ideology; it is basic anthropology. Animal fat and protein helped build the human brain and the societies that followed.

Domestication deepened that relationship. When humans raised cattle, sheep, pigs and chickens, we created a long partnership that shaped both species. Wolves became dogs. Aurochs, the wild ancestors of modern cattle, became domesticated animals. Junglefowl became chickens that could lay eggs reliably. These animals lived with us because it increased their chances of survival.

In return, they received protection, veterinary care and steady food during drought and winter. More than 70,000 Canadian farms raise cattle, hogs, poultry or sheep, supporting hundreds of thousands of jobs across the supply chain.

Livestock also protected people from climate extremes. When crops failed, grasslands still produced forage, and herds converted that into food. During the Little Ice Age, millions in Europe starved because grain crops collapsed. Pastoral communities, which lived from herding livestock rather than crops, survived because their herds could still graze. Removing livestock would offer little climate benefit, yet it would eliminate one of humanity’s most reliable protections against environmental shocks.

Today, a Maasai child in Kenya or northern Tanzania drinking milk from a cow grazing on dry land has a steadier food source than a vegan in a Berlin apartment relying on global shipping. Modern genetics and nutrition have pushed this relationship further. For the first time, the poorest billion people have access to complete protein and key nutrients such as iron, zinc, B12 and retinol, a form of vitamin A, that plants cannot supply without industrial processing or fortification. Canada also imports significant volumes of soy-based and other plant-protein products, making many urban vegan diets more dependent on long-distance supply chains than people assume. The war on livestock is not a war on carbon; it is a war on the most successful anti-poverty tool ever created.

And what about the animals? Remove humans tomorrow and most commercial chickens would die of exposure, merino sheep would overheat under their own wool and dairy cattle would suffer from untreated mastitis (a bacterial infection of the udder). These species are fully domesticated. Without us, they would disappear.

Net Zero 2050 is a climate target adopted by federal and provincial governments, but debates continue over whether it requires reducing livestock herds or simply improving farm practices. Net Zero advocates look at a pasture and see methane. Farmers see land producing food from nothing more than sunlight, rain and grass.

So the question is not technical. It is about how we see ourselves. Does the Net Zero vision treat humans as part of the natural world, or as a threat that must be contained by forcing diets and erasing long-standing food systems? Eliminating livestock sends the message that human presence itself is an environmental problem, not a participant in a functioning ecosystem.

The cow is not the enemy of the planet. Pasture is not a problem to fix. It is a solution our ancestors discovered long before anyone used the word “sustainable.” We abandon it at our peril and at theirs.

Dr. Joseph Fournier is a senior fellow at the Frontier Centre for Public Policy. An accomplished scientist and former energy executive, he holds graduate training in chemical physics and has written more than 100 articles on energy, environment and climate science.

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