How to Navigate This Tipping Point in Indigenous Economic Growth
Today, there is an unparalleled economic opportunity for Indigenous communities, powered primarily by two forces. The first results from the long-awaited federal government disbursements and settlements, and the second is the parallel growth of the private Indigenous economy. Partners need to get ready, because the needs in First Nations communities have never been greater and change is happening fast. Let me explain.
In August, 21 Anishinaabe First Nations living in Robinson-Huron Treaty territory in northern Ontario received a historic $10 billion settlement, after the Supreme Court unanimously ruled the Crown had breached the Robinson Treaties of 1850. If you’re not familiar, this legal battle centred around the “augmentation clause” in the treaties, which promised that annuities to the communities would increase according to the wealth produced by the land. Despite the sizeable profits that were generated in northern Ontario’s mining, lumber and fishing industries, the communities received just one raise—to $4 per person in 1875—in the nearly 150 years until now.
When settlements like this one are reached, the community’s next chapter begins. Finally, First Nations possess the capital to make significant investments in new opportunities, community well-being, and local economic development—in some cases for the first time. With careful stewardship, a settlement opens doors for individual band members and ensures the well-being of future generations.
Already, as these and other settlements are addressing historic wrongs, the private Indigenous economy is booming. Carol Anne Hilton, the founder and CEO of The Indigenomics Institute, champions the idea that with the right investment and growth, the Indigenous economy could grow from its current $50 billion to exceed $100 billion. Hitting that figure would mean Indigenous peoples are equally represented in the Canadian economy for the first time.
As you can see, this is a moment. It represents an important component of Reconciliation, both for Canada but also for institutions like mine. The key, in my view, will be relationships. By this, I mean the kind of partnerships that bring together different types of expertise.
When I offer advice about working with Indigenous communities, the number one thing I say is, you need to invest in the relationship fully, and for the long-term. This isn’t just a transaction. It means putting the interests of Indigenous clients at the fore and supporting their objective of economic self-sustainability by offering expertise, partnerships, and transferring knowledge to community leaders and members, both on- and off-reserve. This might look like funding transactions, but it also looks like the financial literary workshops that CIBC delivers for Indigenous clients, or scholarship and internship opportunities for Indigenous youth and programs to train First Nations staff to equip them with tools to help their clients.
It’s hard to overstate how high the stakes are, and how important it is for us to successfully navigate this tipping point in Indigenous economic growth. Government settlements are one-time deals. It’s critical to ensure they’ll benefit their communities and future children born to these Nations. We won’t get a second shot to get this right.
