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How Indigenous Ownership Support Helps All Canadians

Across Canada, Indigenous peoples are becoming successful major project leaders, but many lack resources for informed decision-making, risk management, and large-scale financial investments critical to their futures. Supporting education and training in these areas offers the potential for significant benefits to all Canadians. -By Belinda Jones Indigenous groups are one of the fastest growing populations in Canada. According to Statistics Canada’s 2021 Census, Indigenous people make up 5.0% of the population, and that population is growing at nearly twice the rate of the non-Indigenous population. Predictions suggest Indigenous population could grow to between 2.5 million to 3.2 million people over the next two decades.

As a growing sector of society, the fate of the Indigenous community is vital to Canada’s future growth, prosperity, and success. This is why more must be done to help Indigenous communities overcome the challenges they face when it comes to land ownership. It’s also important to look at how governments, industry, and lenders can help to support Indigenous ownership both now and in the future.

A Different Concept of “Ownership”

 Indigenous Nations often see “ownership” differently. Whereas “Westernized” groups primarily focus on the individual when it comes to the concept of ownership, in Indigenous culture, ownership is seen as more of belonging to a Nation, family, or clan. This ownership is often of specific stories, songs, and information particular to that clan, family, or Nation.

This applies to “ownership” of land as well. Many in Western culture base ownership on profit potential from the property they own. In Indigenous culture, it is more about care or stewardship of the land that emphasizes the community they belong to and intergenerational accountability. Arguably, these different concepts of “ownership” may have partly led to Indigenous communities not having the same type of input into various projects involving their lands and resources, as Indigenous Nations do not see the concept of ownership the same as those in Western culture and those that abide by the Western legal system.

Recently, though, Indigenous communities have started to strive for and achieve legal victories in the Western legal system to assert their ownership rights over their lands and resources. They have also established connections and relationships with various companies in relevant industries in order to lessen the negative impact on their lands, while also producing community benefits for their Indigenous communities.

More Indigenous Equity Ownership

 There has been a growing trend in Canada over the last several years (and especially since the COVID pandemic) of more Indigenous equity ownership in infrastructure projects across many industries. One such project where more consultations with Indigenous groups were taking place involved the Trans Mountain pipeline and expansion project. Another project was the Alaska to Alberta Rail (A2A) project, where it was announced that up to 49% of the equity within that project would be made available to Indigenous communities.

There are many reasons why the Canadian government at both the federal and provincial levels is looking to include Indigenous communities in equity ownership of infrastructure projects across Canada. One reason is that it complements the consultation process between government officials and leaders of the Indigenous communities. Another reason is that it involves and connects both the Indigenous and non-Indigenous members of a community in a project that involves and can benefit everyone. This was especially made apparent during the pandemic, when all normal operations and processes were disrupted and new ways of conducting governmental affairs, business operations, and household tasks associated with daily living had to be invented and implemented.

Challenges to Indigenous Equity Ownership

 The differences in how Indigenous communities view “ownership” versus members of Western culture can hinder Indigenous equity ownership. Many Indigenous members are still transitioning their mindsets from group and custodial ownership models to mindsets that include value and profit potential.

Another challenge that relates to that “ownership” perspective is that most Indigenous members do not have much pecuniary wealth. Their relative poverty – at least in hard currency terms – has meant Indigenous people were often left out of land ownership. Even if they wanted to follow Western culture’s ownership perspective, they lacked the financial means to buy land, and thus ended up without a “seat at the table” even on projects involving land they physically occupied.

Further, since most Indigenous communities have limited contact with non-Indigenous communities within the same city, town, or province, they may not have been invited to participate. Out of sight, out of mind, unfortunately. Where contact was limited with “the outside world,” that world naturally did not think to include them in decisions around community property and usage rights.

How These Challenges Are Being Addressed

 In regards to having limited pecuniary wealth, more government programs have been announced in the past several years for Indigenous individuals, groups, and Nations involving loan guarantees and other financial instruments to help enable them to own more equity. The Alberta Indigenous Opportunities Corporation’s mandate is one example. This mandate provides up to $1 billion in loan guarantees to Indigenous groups so they can invest in natural resource projects. The first was provided in 2021 to a group of six Alberta First Nations to enable them to participate in the Cascade Power Project, a combined cycle 900-Megawatt natural gas fired power plant in Edson, Alberta.

This has spurred support and calls for a national loan guarantee program, something that the Canadian government provided during the COVID-19 pandemic, where $306.8 million in non-repayable contributions and interest-free loans were provided to people belonging to Metis, Inuit, and First Nations. However, applications to that program ended in June 2021.

There are non-governmental programs aimed at helping Indigenous peoples and groups gain the financial wherewithal to invest and start businesses, such as the Aboriginal Entrepreneurship Program and Procurement Strategy for Indigenous Business (PSIB).

Future Actions That Need To Be Taken To Support Indigenous Ownership

 First, reestablishing a national Indigenous loan program similar to what was enacted during the COVID-19 pandemic would help Indigenous peoples and nations get involved in land ownership and community projects. The financial resources would help ensure Indigenous peoples and nations across Canada would have the ability to be involved in important decision-making and have ownership in projects that impact their communities.

As with loans and financing of any kind, there is no “one-size-fits-all” option. Thus, early assessment of each participant’s involvement, objectives, drivers, interests, and goals in a project is vital to come up with loan and project agreements that are mutually beneficial and agreeable to everyone so that a long-term partnership is built based on mutual respect, understanding, and trust.

One way to help foster Indigenous involvement in land ownership and community projects is through ensuring that the loan program only allows for a minimum rate of return for the lender (whether it is a for-profit institution, non-profit institution, or the government). This would help more Indigenous individuals and groups take part and have involvement with the project both in the present and in the future. Pecuniary wealth is not a driving force in Indigenous culture; thus, the vast majority of Indigenous people and Nations do not have the financial means to invest large sums of money and wealth into these projects. Yet, it is critically important for these Indigenous communities to be a part of these community projects going forward so that all Canadian people and the Canadian economy as a whole can benefit from them.

Another way to enable Indigenous groups and individuals to take part is to allow for flexible financing. This might mean the lender funds all or a part of Indigenous partner’s capital investment (with permission and agreement by that partner), and the lender gets paid back over time through various financial vehicles such as dividends, distribution sweeps, or comparable funding vehicles.

As mentioned earlier, the government at all levels has to do a better job with the legal protections afforded to Indigenous people when it comes to protecting and exercising their legal rights regarding the lands they occupy. This includes prosecuting those who accost them and activists defending Indigenous peoples’ land ownership rights. Encouraging others (individuals and corporations) to support Indigenous peoples’ land ownership rights would also help protect these rights in the face of adversity, as well as encourage more Indigenous peoples and nations to pursue land ownership and get involved in the projects that will shape Canada’s communities and economy for decades and generations to come.

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