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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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Economy

Support For National Pipelines And LNG Projects Gain Momentum, Even In Quebec

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From the Frontier Centre for Public Policy

By Joseph Quesnel

Public opinion on pipelines has shifted. Will Ottawa seize the moment for energy security or let politics stall progress?

The ongoing threats posed by U.S. tariffs on the Canadian economy have caused many Canadians to reconsider the need for national oil pipelines and other major resource projects.

The United States is Canada’s most significant trading partner, and the two countries have enjoyed over a century of peaceful commerce and good relations. However, the onset of tariffs and increasingly hostile rhetoric has made Canadians realize they should not be taking these good relations for granted.

Traditional opposition to energy development has given way to a renewed focus on energy security and domestic self-reliance. Over the last decade, Canadian energy producers have sought to build pipelines to move oil from landlocked Alberta to tidewater, aiming to reduce reliance on U.S. markets and expand exports internationally. Canada’s dependence on the U.S. for energy exports has long affected the prices it can obtain.

One province where this shift is becoming evident is Quebec. Historically, Quebec politicians and environmental interests have vehemently opposed oil and gas development. With an abundance of hydroelectric power, imported oil and gas, and little fossil fuel production, the province has had fewer economic incentives to support the industry.

However, recent polling suggests attitudes are changing. A SOM-La Presse poll from late February found that about 60 per cent of Quebec residents support reviving the Energy East pipeline project, while 61 per cent favour restarting the GNL Quebec natural gas pipeline project, a proposed LNG facility near Saguenay that would export liquefied natural gas to global markets. While support for these projects remains stronger in other parts of the country, this represents a substantial shift in Quebec.

Yet, despite this change, Quebec politicians at both the provincial and federal levels remain out of step with public opinion. The Montreal Economic Institute, a non-partisan think tank, has documented this disconnect for years. There are two key reasons for it: Quebec politicians tend to reflect the perspectives of a Montreal-based Laurentian elite rather than broader provincial sentiment, and entrenched interests such as Hydro-Québec benefit from limiting competition under the guise of environmental concerns.

Not only have Quebec politicians misrepresented public opinion, but they have also claimed to speak for the entire province on energy issues. Premier François Legault and Bloc Québécois Leader Yves-François Blanchet have argued that pipeline projects lack “social licence” from Quebecers.

However, the reality is that the federal government does not need any special license to build oil and gas infrastructure that crosses provincial borders. Under the Constitution, only the federal Parliament has jurisdiction over national pipeline and energy projects.

Despite this authority, no federal government has been willing to impose such a project on a province. Quebec’s history of resisting federal intervention makes this a politically delicate issue. There is also a broader electoral consideration: while it is possible to form a federal government without winning Quebec, its many seats make it a crucial battleground. In a bilingual country, a government that claims to speak for all Canadians benefits from having a presence in Quebec.

Ottawa could impose a national pipeline, but it doesn’t have to. New polling data from Quebec and across Canada suggest Canadians increasingly support projects that enhance energy security and reduce reliance on the United States. The federal government needs to stop speaking only to politicians—especially in Quebec—and take its case directly to the people.

With a federal election on the horizon, politicians of all parties should put national pipelines and natural gas projects on the ballot.

Joseph Quesnel is a senior research fellow with the Frontier Centre for Public Policy.

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Education

Our Kids Are Struggling To Read. Phonics Is The Easy Fix

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From the Frontier Centre for Public Policy

By Michael Zwaagstra

One Manitoba school division is proving phonics works

If students don’t learn how to read in school, not much else that happens there is going to matter.

This might be a harsh way of putting it, but it’s the truth. Being unable to read makes it nearly impossible to function in society. Reading is foundational to everything, even mathematics.

That’s why Canadians across the country should be paying attention to what’s happening in Manitoba’s Evergreen School Division. Located in the Interlake region, including communities like Gimli, Arborg and Winnipeg Beach, Evergreen has completely overhauled its approach to reading instruction—and the early results are promising.

Instead of continuing with costly and ineffective methods like Reading Recovery and balanced literacy, Evergreen has adopted a structured literacy approach, putting phonics back at the centre of reading instruction.

Direct and explicit phonics instruction teaches students how to sound out the letters in words. Rather than guessing words from pictures or context, children are taught to decode the language itself. It’s simple, evidence-based, and long overdue.

In just one year, Evergreen schools saw measurable gains. A research firm evaluating the program found that five per cent more kindergarten to Grade 6 students were reading at grade level than the previous year. For a single year of change, that’s a significant improvement.

This should not be surprising. The science behind phonics instruction has been clear for decades. In the 1960s, Dr. Jeanne Chall, director of the Harvard Reading Laboratory, conducted extensive research into reading methods and concluded that systematic phonics instruction produces the strongest results.

Today, this evidence-based method is often referred to as the “science of reading” because the evidence overwhelmingly supports its effectiveness. While debates continue in many areas of education, this one is largely settled. Students need to be explicitly taught how to read using phonics—and the earlier, the better.

Yet Evergreen stands nearly alone. Manitoba’s Department of Education does not mandate phonics in its public schools. In fact, it largely avoids taking a stance on the issue at all. This silence is a disservice to students—and it’s a missed opportunity for genuine reform.

At the recent Manitoba School Boards Association convention, Evergreen trustees succeeded in passing an emergency motion calling on the association to lobby education faculties to ensure that new teachers are trained in systematic phonics instruction. It’s a critical first step—and one that should be replicated in every province.

It’s a travesty that the most effective reading method isn’t even taught in many teacher education programs. If new teachers aren’t trained in phonics, they’ll struggle to teach their students how to read—and the cycle of failure will continue.

Imagine what could happen if every province implemented structured literacy from the start of Grade 1. Students would become strong readers earlier, be better equipped for all other subjects, and experience greater success throughout school. Early literacy is a foundation for lifelong learning.

Evergreen School Division deserves credit for following the evidence and prioritizing real results over educational trends. But it shouldn’t be alone in this.

If provinces across Canada want to raise literacy rates and give every child a fair shot at academic success, they need to follow Evergreen’s lead—and they need to do it now.

All students deserve to learn how to read.

Michael Zwaagstra is a public high school teacher and a senior fellow at the Frontier Centre for Public Policy.

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