The potential $100-billion Indigenous economy must be incorporated into Canada's future, author argues

First Nations have been perceived through a distorted economic lens which has historically painted them as a “problem” as opposed to partners, says Carol Anne Hilton, CEO and founder of the Indigenomics Institute and author of the book, Indigenomics: Taking a Seat at the Economic Table.

Some reality needs to be injected into the distorted lens through which the media and the public view First Nations as a “cost on the system,” Hilton says, arguing that it should be viewed as a major opportunity instead.

Hilton made the remarks during a webinar, “Indigenomics — The Emerging Strength of the Indigenous Economy,” presented on April 20 by the Empire Club. The Indigenomics Institute works with Indigenous nations and organizations, governments and private industry to strengthen Indigenous economic capacity.

Hilton says the emergence of new legal relationships means that the Canadian economy must shift to embrace Indigenous economic empowerment and the potential $100-billion annual Indigenous economy. Recent legal recognition of Indigenous rights and title—many in the resource sector—can now translate to new economic relationships, according to her research.

“There are now 312 cases where Indigenous peoples have won within the courtroom and within this legal spectrum have established this new economic space," Hilton said, citing the work of Calgary lawyer, strategist and author Bill Gallagher.

For example, in an April 19 ruling by the British Columbia Court of Appeal, a three-judge panel unanimously upheld parts of an April 2018 ruling by the B.C. Supreme Court that found Canada’s management of regular commercial fisheries unjustifiably infringed on the rights of a group of Vancouver Island First Nations.

Federal funding has not historically focused on economic development. In referring to federal transfer payments made to First Nations in Canada, Hilton said that:

• 96 percent goes to education, management and health;
• two percent toward reconciliation; and
• two percent toward economic development.

“We’re living in a country where the fiscal equation does not make sense. This is a classic example of the social cart pulling the economic horse,” she said.

Carol Anne Hilton also spoke at the 19th Research Money Conference in October 2020, where she described Indigenomics as “a modern, constructive, generative economic design”  for facilitating Indigenous economic growth.

Indigenous economy growing faster than Canada’s

Hilton points out in her book, Indigenomics, that the Indigenous economy is growing faster than Canada's. A hockey stick growth curve from a 2011 TD Economics report shows the Indigenous economy was valued at $11.7 billion in 2001 and was expected to grow to $32 billion in 2016. Indigenous businesses are now expected to contribute $100 billion to Canada's economy by 2025, according to a RBC report released last year.

Hilton recommends that businesses and industry establish relationships and partnerships with Indigenous peoples, including putting them on governance boards and giving them equity positions in major developments.

Alicia Dubois, CEO of the Alberta Indigenous Opportunities Corporation, said at the panel that because of national and international pressures, Indigenous peoples were moving from a marginalized or peripheral place to integral positions “as active players and drivers in the economy.”

Panelist Heather Berthelette, CEO of the Tribal Councils Investment Group of Manitoba Ltd., used the example of her organization’s strategic investments as a way of driving the economy. “[We] acquired a pharmacy that delivers to the nursing stations in northern Manitoba. A pharmacy with 20 years of expertise [and] that expertise and experience came from building it with our community,” she said.

The banks have been particularly good at recognizing new economic models for Indigenous business, Berthelette said.

Perception that Indigenous peoples are a 'problem' has persisted over time

The “thread of misperception” about Indigenous peoples has existed since Canada was formed and continues today, Hilton noted.

“Canada’s establishment was built on the foundation of the concept of ‘the Indian problem,’” she said, citing a phrase used by Duncan Campbell Scott.

Scott, deputy superintendent of the federal Department of Indian Affairs from 1913-1932, wrote in a letter in 1920 that “I want to get rid of the Indian problem,” according to an article by D’Arcy Rheault, a member of the Ontario Métis Family Records Center. Scott used the phrase while tabling a new government bill for the compulsory residential school attendance of all Indian, Métis and Inuit children.

Hilton noted that she is a member of the first generation beyond the purview of the residential school system, and is a member of the fifth generation since the establishment of Canada’s Indian Act in 1876.

The federal government must stop looking backward in dealing with Indigenous people and adopt a realistic attitude toward them as an economic powerhouse, Hilton said. “Through the rise of Indigenous economic empowerment, this power shift in the economic landscape is shaping the future of this country," she writes in her book.

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