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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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COVID-19

Report Shows Politics Trumped Science on U.S. Vaccine Mandates

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From the Frontier Centre for Public Policy

By Lee Harding

If you thought responsible science drove the bus on the pandemic response, think again. A December 2024 report by the U.S. House of Representatives Select Subcommittee, Coronavirus Pandemic shows that political agendas made regulatory bodies rush vaccine approvals, mandates, and boosters, causing public distrust.

After Action Review of the COVID-19 Pandemic: The Lessons Learned and a Path Forward” praised the Trump administration’s efforts to speed up vaccine development. By contrast, the report said presidential candidate Joe Biden and vice-presidential candidate Kamala Harris undermined public confidence.

“[W]hy do we think the public is gonna line up to be willing to take the injection?” Joe Biden asked on September 5, 2020. This quote appeared in a Politico article titled “Harris says she wouldn’t trust Trump on any vaccine released before [the] election.”

The House report noted, “These irresponsible statements eventually proved to be outright hypocrisy less than a year later when the Biden-Harris Administration began to boldly decry all individuals who decided to forgo COVID-19 vaccinations for personal, religious, or medical reasons.”

Millions of doses of COVID-19 vaccines were administered beginning in December 2020 under an Emergency Use Authorization. This mechanism allows unapproved medical products to be used in emergency situations under certain criteria, including that there are no alternatives. The only previous EUA was for the 2004 anthrax vaccine, which was only administered to a narrow group of people.

By the time vaccines rolled out, SARS-CoV-2 had already infected 91 million Americans. The original SARS virus some 15 years prior showed that people who recovered had lasting immunity. Later, a January 2021 study of 200 participants by the La Jolla Institute of Immunology found 95 per cent of people who had contracted SARS-CoV-2 (the virus behind COVID-19) had lasting immune responses. A February 16, 2023 article by Caroline Stein in The Lancet (updated March 11, 2023) showed that contracting COVID-19 provided an immune response that was as good or better than two COVID-19 shots.

Correspondence suggests that part of the motivation for full (and not just emergency) vaccine approval was to facilitate vaccine mandates. A July 21, 2021, email from Dr. Marion Gruber, then director of vaccine reviews for the Food and Drug Administration (FDA), recalled that Dr. Janet Woodcock had stated that “absent a license, states cannot require mandatory vaccination.” Woodcock was the FDA’s Principal Deputy Commissioner at the time.

Sure enough, the FDA granted full vaccine approval on August 23, 2021, more than four months sooner than a normal priority process would take. Yet, five days prior, Biden made an announcement that put pressure on regulators.

On August 18, 2021, Biden announced that all Americans would have booster shots available starting the week of September 20, pending final evaluation from the FDA and the U.S. Centers for Disease Control and Prevention (CDC).

Some decision-makers objected. Dr. Marion Gruber and fellow FDA deputy director of vaccine research Dr. Philip Krause had concerns regarding the hasty timelines for approving Pfizer’s primary shots and boosters. On August 31, 2021, they announced their retirements.

According to a contemporary New York Times article, Krause and Gruber were upset about Biden’s booster announcement. The article said that “neither believed there was enough data to justify offering booster shots yet,” and that they “viewed the announcement, amplified by President Biden, as pressure on the F.D.A. to quickly authorize them.”

In The Lancet on September 13, 2021, Gruber, Krause, and 16 other scientists warned that mass boosting risked triggering myocarditis (heart inflammation) for little benefit.

“[W]idespread boosting should be undertaken only if there is clear evidence that it is appropriate,” the authors wrote. “Current evidence does not, therefore, appear to show a need for boosting in the general population, in which efficacy against severe disease remains high.”

Regardless, approval for the boosters arrived on schedule on September 24, 2021. CDC Director Dr. Rochelle Walensky granted this approval, but for a wider population than recommended by her advisory panel. This was only the second time in CDC history that a director had defied panel advice.

“[T]his process may have been tainted with political pressure,” the House report found.

Amidst all this, the vaccines were fully licensed. The FDA licensed the Comirnaty (Pfizer-BioNTech) vaccine on August 23, 2021. The very next day, Defense Secretary Lloyd Austin issued a memo announcing a vaccine mandate for the military. Four other federal mandates followed.

“[T]he public’s perception [is] that these vaccines were approved in a hurry to satisfy a political agenda,” the House report found.

The House report condemned the dubious process and basis for these mandates. It said the mandates “ignored natural immunity, … risk of adverse events from the vaccine, as well as the fact that the vaccines don’t prevent the spread of COVID-19.”

The mandates robbed people of their livelihoods, “hollowed out our healthcare and education workforces, reduced our military readiness and recruitment, caused vaccine hesitancy, reduced trust in public health, trampled individual freedoms, deepened political divisions, and interfered in the patient-physician relationship,” the report continued.

The same could be said of Canadian vaccine mandates, as shown by the National Citizen’s Inquiry hearings on COVID-19. Unfortunately, an official federal investigation and a resulting acknowledgement do not seem forthcoming. Politicized mandates led to profits for vaccine manufacturers but left “science” with a sullied reputation.

Lee Harding is a Research Fellow for the Frontier Centre for Public Policy.

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Energy

Why Canada Must Double Down on Energy Production

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From the Frontier Centre for Public Policy

By Lee Harding

Must we cancel fossil fuels to save the earth? No.

James Warren, adjunct professor of environmental sociology at the University of Regina said so in a recent paper for the Johnson Shoyama School of Public Policy, a joint effort by his university and the University of Saskatchewan. The title says it all: “Maximizing Canadian oil production and exports over the medium-term could help reduce CO2 emissions for the long-term.”

The professor admits on the face of it, his argument sounds like a “drink your way to sobriety solution.” However, he does make the defensible and factual case, pointing to Canadian oil reserves and a Scandinavian example.

Decades ago, Norway imitated the 1970’s Heritage Fund in Alberta that set aside a designated portion of the government’s petroleum revenues for an investment fund. Unlike Alberta, Norway stuck to that approach. Today, those investments are being used to develop clean energy and offer incentives to buy electric vehicles.

Norway’s two largest oil companies, Aker BP and Equinor ASA have committed $19 billion USD to develop fields in the North and Norwegian Seas. They argue that without this production, Norway would never be able to afford a green transition.

The same could be said for Canada. Warren laid out stats since 2010 that showed Canada’s oil exports contribute an average of 4.7% of the national GDP. Yet, this noteworthy amount is not nearly what it could be.

Had Trans Mountain, Northern Gateway, and Energy East pipelines been up and running at full capacity from 2015 to 2022, Warren estimates Canada would have seen $292 billion Canadian in additional export revenues. Onerous regulations, not diminished demand, are responsible for Canada’s squandered opportunities, Warren argues this must change.

So much more could be said. Southeast Asia still relies heavily on coal-fired power for its emerging industrialization, a source with twice the carbon emission intensity as natural gas. If lower global emissions are the goal, Canadian oil and natural gas exports offer less carbon-intensive options.

China’s greenhouse gas emissions (GHGs) are more than four times what they were in 1990, during which the U.S. has seen its emissions drop. By now, China is responsible for 30% of global emissions, and the U.S. just 11%. Nevertheless, China built 95% of the world’s new coal-fired power plants in 2023. It aims for carbon neutrality by 2060, not 2050, like the rest of the world.

As of 2023, Canada contributes 1.4 percent of global GHGs, the tenth most in the world and the 15th highest per capita. Given its development and resource-based economy, this should be viewed as an impressively low amount, all spread out over a geographically diverse area and cold climate.

This stat also reveals a glaring reality: if Canada was destroyed, and every animal and human died, all industry and vehicles stopped, and every furnace and fire ceased to burn, 98.6% of global greenhouse gas emissions would remain. So for whom, or to what end, should Canada kneecap its energy production and the industry it fuels?

The only ones served by a world of minimal production is a global aristocracy whose hegemony would no longer be threatened by the accumulated wealth and influence of a growing middle class. That aristocracy is the real beneficiary of prevailing climate change narratives on what is happening in our weather, why it is happening, and how best to handle it.

Remember, another warming period occurred 1000 years ago. The Medieval Warming Period took place between 750 and 1350 AD and was warmest from 950 to 1045, affecting Europe, North America, and the North Atlantic. By some estimates, average summer temperatures in England and Central Europe were 0.7-1.4 degrees higher than now.

Was that warming due to SUVs or other man-made activity? No. Did that world collapse in a series of floods, fires, earthquakes, and hurricanes? No, not in Europe at least. Crop yields grew, new cities emerged, alpine tree lines rose, and the European population more than doubled.

If the world warms again, Canada could be a big winner. In May of 2018, Nature.com published a study by Chinese and Canadian academics entitled, Northward shift of the agricultural climate zone under 21st-Century global climate change. If the band of land useful for crops shifts north, Canada would get an additional 3.1 million square kilometers of farmland by 2099.

Other computer models suggest warming temperatures would cause damaging weather. Their accuracy is debatable, but even if we concede their claims, it does not follow that energy production should drop. We would need more resilient housing to handle the storms and we cannot afford them without a robust economy powered by robust energy production. Solar, wind, and geothermal only go so far.

Whether temperatures are warming or not, Canada should continue tapping into the resources she is blessed with. Wealth is a helpful shelter in the storms of life and is no different for the storms of the planet. Canada is sitting on abundant energy and should not let dubious arguments hold back their development.

Lee Harding is Research Fellow for the Frontier Centre for Public Policy.

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