Capitalist economics can’t ‘fix’ ties
Adam Gaudry is Métis and a PhD candidate in indigenous governance.
As the government of Canada meets with First Nations leaders, this will be an important part of the “moving forward” rhetoric. While there has long been a “moral imperative” argument to renew Indigenous-Canada relations, the idea that there is an economic imperative to “fix” this relationship is a relatively new one, emerging after a series of Canadian court cases in the 1990s obligated government and industry to “consult” Indigenous communities before extracting resources from their territories.
Economic development is seen as the future of Indigenous communities by many, both Indigenous and not. But when we unpack this term and examine how government and industry use it, we can see it merely as another colonial-style “development” program, which ultimately undermines the long-term sustainability of local Indigenous economies.
I am not talking about all types of economic development, or the type of small-scale community economic development that most Indigenous communities want, but a very specific kind of capitalism based on large-scale resource extraction. This usually involves some sort of community-corporate partnership that is supposed to create jobs through industry employment, as well as provide some trickle-down for local contractors to supply industry. The idea is that the presence of big business will also create demand for small business.
However, can capitalist economics “fix” the relationship between Indigenous peoples and Canada? No, I argue, because this logic is based on a misunderstanding of the issues facing Indigenous communities. The government’s logic goes like this: Indigenous communities are in need of economic development, and big business needs the resources on Indigenous lands. So a mutually beneficial partnership can be created — one side has resources, the other cash and jobs. Supposedly everybody wins.
Yet, the central concern for many Indigenous peoples remains; how can we protect our ways of life from colonialism, government interference, and environmental degradation? If these are indeed the goals for our communities, the solutions being offered to us — large-scale projects like dams, mines, and pipelines — do not get at the heart of the matter. Rather they propose the most destructive, shortsighted, and risky projects imaginable that will undermine the long-term viability of land-based cultural practices, the very thing communities are trying to protect and revive.
Furthermore, capitalist economic development does not address the colonial power imbalance that has created the poverty, educational disparities, and the struggles for cultural survival that typify colonialism in this country. In fact, the primary motivation for the theft of our lands, and the criminalization of Indigenous governance, was capitalist development in the first place. Capitalist development has created the greatest disparity between rich and poor the world has ever seen, because it’s premised on some people getting rich at the expense of others.
While we can argue the merits of capitalist economic development in Indigenous communities, the idea that this is the basis for greater unity doesn’t really hold up to any scrutiny. In fact most Indigenous-Government conflict is over capitalist economic development anyway: The Oka crisis was about a golf-course on a burial ground, Grassy Narrows was about a pulp mill polluting water, Caledonia was about a housing development on reserve lands, and the Atlantic lobster fishery felt threatened by Burnt Church setting a small amount of lobster traps. Now, 61 First Nations have voiced collective opposition to the Enbridge Northern Gateway Pipeline in B.C., which has led to tension with the federal government.
Can capitalism be the driving force for better Indigenous-Canadian relations? No. This relationship tends to be “good” when Indigenous peoples are saying “yes” to government-backed corporate projects, but strained when Indigenous people want to follow their own path, and reject large-scale capitalist economic development. This kind of relationship is neither healthy nor functional — it is based on Indigenous communities toeing the line.
Real understanding is not facilitated by economics; it is a social and political process: social in the sense that we need to have better interpersonal relations, and embody these in expressing respect for one another in everyday ways; and political in the sense that the original view of Indigenous-Canadian relations was not a unified state, but a treaty relationship between separate polities that respected the independence of one another. This is what a “fixed” relationship should look like — two political communities engaging in respectful dialogue.

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Maria Feb. 4, 2012, 5:24 a.m.
hear hear! To often people try to push economics as a way to revitalize Indigenous-government relations. This idea is spoon fed in many classes on campus, and too often the remarks by fellow students are "won't this help your community?" " I hear you need more jobs and the pipeline will help." Or "you need to face reality and move on already." Most people are ignorant to what is going on- on the ground within community. Great article!
Tea Party! Feb. 4, 2012, 8:19 p.m.
Interesting timing for PhD student Gaudry's tirade against capitalism - and commentary by Jesse Kline, "Private property rights are key to the future prosperity of First Nations":
National Post Feb 4, 2012
The best argument against collectivist economic policies comes from examining the places that have tried to implement them — and then discarded them. In a short period of time following the collapse of the Soviet Union, for instance, Eastern Europeans went from having to wake up early to stand in long lines for their daily bread, to shopping in supermarkets stocked with an abundance of food from around the world. On a smaller scale, we can see the effects of miniature, Soviet-style welfare states on aboriginal reserves, right here in Canada.
It is unconscionable that, in this day and age, we would continue to maintain a colonial attitude that treats an entire group of Canadian citizens as wards of the state, but that is exactly how the Canadian government’s relationship with First Nations has been institutionalized. Enacted less than a decade after confederation, the Indian Act places strict limits on First Nations’ property rights. Under the terms of the act, the Crown maintains ownership over all reserve land, and grants Indians the right to utilize it. If any Indian wants to take “possession” of a piece of property, or the band wants to lease land to non-Indians, the transaction must be approved by the central government in Ottawa.
Canadians are all too often reminded of the devastating consequences this dependent relationship has produced, the latest of which is the third-world housing conditions on the Attawapiskat reserve in Northern Ontario. The lack of property rights on reserves means that bands have a hard time monetizing land. Existing structures become run down because people do not take pride of ownership in houses they do not own; and families are unable to use properties as collateral to take out loans, which would allow them to invest in businesses or real estate developments.
The result is that communities are allowed to slowly degrade, and when the inevitable crisis becomes apparent, the band’s only option is to turn to the federal government for handouts. Allowing private property rights on reserves would certainly not solve all the problems faced by our First Nations communities, but it would go a long way toward allowing aboriginal people to deal more effectively with their own issues. It was, therefore, very good to see the House of Commons finance committee recommend that the government “examine the concept of a First Nations Property Ownership Act as proposed by the First Nations Tax Commission,” in its pre-budget report. While there is no formal proposal for the act, it is certainly an idea whose time has come.
READ MORE AT: http://fullcomment.nationalpost.com/2012/02/04/jesse-kline-private-property-rights-are-key-to-the-future-prosperity-of-first-nations/
Reserves without an economy are a problem Feb. 23, 2012, 1:19 a.m.
The reserves in the most trouble are those in remote regions with no economy or reason to exist.
Why should natives continue to live there? How are they going to live, from continued government paychecks? It's demeaning to them and keeps them to a life of poverty.
There is no future on reserves where there is no functioning economy or reason to exist. Why build schools, houses and other infrastructure in a place with no future?