Community Economic Development in Nunavut Challenging Opportunities

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Community Economic Development in Nunavut
Challenging Opportunities

• EDAC Conference September 05

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25 communities, 28,000 people, 2,000,000 sq km
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Population

• Nunavut in 1996 had 24,730 people,
• in 2001 there were 26,745, an increase of 8.1
  (more than twice the national average of 4 and
  the second highest rate of growth after Alberta
  with 10.3
• Nunavuts population is 85 Inuit Iqaluit the
  capital has an Inuit population closer to 60
• At the 2001 Census 60 of the Nunavut population
  was under the age of 25, 41 under the age of 16

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Nunavut Stats

• Nunavut has 23 of Canadas landmass and 2/3 of
  the Canadian coastline.
• There are 25 incorporated communities and only
  one 17 km stretch of road
• Marine infrastructure is limited with only one
  port, associated with Nanisivik Mine ( a
  lead/zinc mine located at the north west end of
  Baffin Island now closed)
• Communications infrastructure, as of summer of
  2005, has broadband access available in all
  Nunavut communities cell-phone capability only
  in Iqaluit.

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Stats contd

• Inuktitut is the official language of Nunavut,
  along with English and French. The 2001 Census
  reflected the breakdown of language by mother
  tongue as 71 Inuktitut, 26 English and 2
  French.
• immediate demand for public housing in 2004 was
  3000 units, plus 270 per year to address
  expanding population
• Nunavuts 10 Year Inuit Housing Action Plan
  indicated 1.9M would be needed to address the
  plan

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Employment

• The major employer in Nunavut is government,
  Federal, Territorial and Municipal/local
  employing two thirds of the total employed in
  2004 this represented 6235 people.
• The 2001 Census showed 83.5 of the population
  had less than high-school education.
• Average household income is lower than that of
  other northern territories and the rest of Canada
  at 28,215.
• Household incomes are derived from both wage and
  land based activities based on Inuit traditions
  and culture of sharing.

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Unemployment contd

• 2001 Census listed the unemployment rate in
  Nunavut, based on the national definition, was
  17.4, on a labour force of 11,359 (national
  definition looking for work)
• Inuit unemployment rate is identified as 22.9
• True reflection when no jobs available
  definition is used is much higher

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GDP

• 2004 GDP was noted at 831M and demand at 1.63B
  leakage at 51 for every 1 spent a trade
  deficit of 794M
• Nunavuts wholesale sales are noted at
  43,912,000 in 2000, and 25,433,000.00 in 2004,
  retail sales are shown at 201,672,000 in 2000,
  and 233,155,000 in 2001.
• More than 60 of total GDP is government spending
  on goods and services, the national average is
  22.

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Infrastructure

• Nunavut has one fully operational Hospital
  located in Iqaluit Rankin Inlet and Cambridge
  Bay Health facilities are being completed in 2005
  and will be fully operation once fully staffed
• One French School also located in Iqaluit
• Nunavut Arctic College with a major campus in
  Iqaluit, smaller campuses in Rankin Inlet and
  Cambridge Bay
• Nunavut Legislative assembly is located in
  Iqaluit
• Government of Canada offices are in Iqaluit
• Iqaluit International airport, 8,600 foot runway

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Iqaluit

• Iqaluit is the Capital of Nunavut, officially
  designated on April 17th, 2001
• 2001 Census showed a population of 5,236 people,
  an increase of 24.1 since 1996, 19.6 of the
  overall Nunavut population.
• City of Iqaluit estimates the population of the
  City in 2005 to be close to 7,000.
• In 2005 City of Iqaluit licensed approximately
  450 businesses operating in City limits.
• All industry sectors are represented in Iqaluit,
  however statistical collection and analysis is
  difficult.

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Iqaluit Airport
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Nunavut Why?

• Nunavut was created in 1993 when the Nunavut
  Lands Claims Agreement the Nunavut Act were
  signed
• Nunavut became official April 1st, 1999,
• Although based on an Aboriginal Land Claim it is
  a public government for all Nunavummiut.
• The GNs sustainable development strategy is
  based on
• a mixed economy land and wage based
• sustainable use of natural resources
• IQ Inuit Qaujimajatuqangit Inuit traditional
  knowledge and consensus decision-making
• all communities must benefit
• self reliance
• young population

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Nunavut Economic Outlook 2001 Development in
Nunavut

• all human activities undertaken to achieve
  well-being are open to economic assessment life
  sustenance, self-esteem and freedom of choice.
• Economic Development (wealth creation) considers
  not just money, but how time resources are used
  to achieve personal societal objectives.
• Economic growth is required for a society to
  achieve its development objectives,
• a traditional land based economy cannot keep pace
  with demands for goods services in an
  industrial economy.

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Wealth Creation

• based on four areas of capital Physical, Human,
  Natural, and Societal or Organizational.
• Physical Capital infrastructure roads,
  water/sewer, transportation and communication
  networks, housing, hospital
• Human Capital labour, education, skill, health
• Natural Capital raw material, land, wildlife,
  minerals, energy, knowledge
• Social/Organizational Capital interaction
  between Physical, Human and Natural capital and
  all other public and private organizations.

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Cambridge Bay
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Nunavuts Capital Issues

• Physical Capital
• serious problems in housing and commercial space,
  
• sewage and waste management systems,
• affordable transportation and telecommunications
  networks,
• child care

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Capital Issues contd

• Human Capital
• rapidly growing population,
• youngest population in Canada,
• lower life expectancy than national average 7
  years for men and 10 for women,
• Education levels low
• traditional on-the-land knowledge needs to be
  encouraged

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Capital Issues contd

• Natural Capital
• knowledge and research (science) is limited or
  only now being collected vital to the mixed
  economy future

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Capital Issues contd

• Social/Organizational Capital
• Nunavut Land Claim Agreement
• representative hiring and preferential
  procurement, Inuit Impact Benefit Agreements,
  co-management control over natural resources and
  harvesting (government, Inuit organizations,
  private sector and institutions),
• economic development programs, business relies on
  government business (supply and demand),
• public institutions oversee management of
  development involving land and resources.

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Mixed Economy land and wage based

• Value of land based economy is hard to validate
  statistically estimated at between 40M and
  60M with approximately 30M for all food
  oriented values (replacement cost)
• Child care, volunteer labour, sharing of assets,
  and arts and crafts production are mostly
  unrecorded and therefore not included.
• Role in advancing Inuit human capital (hunting,
  sewing and land skills), and contributing to the
  social fabric are important elements

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Overview of wage-based economy

• Trade deficit ramifications are mitigated by the
  size of the inflow from federal government in
  transfers direct wages.
• Government growth will eventually flatten out,
  population growth will continue, causing a slow
  down in economic growth a per capita decline.
• Government growth resulted in private sector
  support services, employment money circulation
  becoming increasingly important.
• Key growth sectors identified as hunting,
  fishing, mining, tourism, manufacturing,
  construction government. training and
  education are needed to meet the requirements of
  employment in all growth sectors.

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Conference Board of Canada (NEO 1) report

• forecasts real GDP to expand an average of 2.42
  compounded annually from 1999-2020.
• 1st 10 years fastest due to the creation of
  Nunavut
• mining, tourism fishing have greatest potential
• all economic development potential is dependent
  on the development of all forms of capital
• land based forecast will depend on the carrying
  capacity of natural resources, population growth,
  value and skills of youth for land based
  activity.
• Growth of both land and wage economies are
  interconnected (ie tourism growth based on
  ability to market traditional ways)

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Key Impact - Values

• collective approach to socio-economic development
  (share, decentralize)
• Greater self-reliance
• IQ value and integration of Inuit knowledge
• Economic development must begin at the community
  level
• Land based economy is key and must be supported
• Sustainable development human and natural
  capital is equally important

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Key Impact - Awareness

• Knowledge about Nunavut needs to be improved
  about
• Health and social status
• Natural capital and lack of public geo-science
• Land-based economy and how it functions
• Wage based economy
• lack of Nunavut specific data, small population
  and difficulty in capturing land based economic
  information.
• status and potential of four forms of capital is
  needed to secure private and public investment

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Key Impact Human Capital

• Education and skill development for today and
  tomorrow
• Young population, self reliance, representative
  government employment
• Value private sector careers

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Key Impact - NLCA

• Nunavut Land Claim Agreement
• Implementation of Article 23 (hiring) and 24
  (procurement), requires commitment and clear
  provisions

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Key Impact Key Players

• Must be clear on the uniqueness of Nunavut
  demographics, limited physical capital, large
  undeveloped potential
• Federal government needs to be clear that per
  capita funding doesnt fit Nunavuts stage of
  development
• Collaboration and cooperation between public,
  private and government is critical to success.

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Key Impact - Investment

• Revenues to finance wealth creating investments
  must come through re-assessment of spending
  priorities plus securing additional revenues over
  the short to medium term.
• Physical and human capital needs must be
  addressed

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Results

• Achievable objectives must be clearly stated as
  well as a re-assessment of existing ones
• 85 Inuit employment, if linked to education and
  training, is realistic and achievable over the
  long term, but not the short or medium term.
  Based on working age population, not overall
  considering median age of 24.
• administrative careers at any government level or
  in private sector must be seen as a desirable
  career choice.
• beginning with the basics and working steadily
  forward expectations are optimistic.

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What Next after 2001

• Conference Board re-evaluated the Nunavut
  Economic Outlook based on the 2001 Census initial
  stats and produced NEO II in 2002. The results
  and recommendations held from the original
  research.
• The GN and NTI embarked on the development of a
  Economic Development Strategy for Nunavut

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NEDS

• The NEDS released fall of 2003 after considerable
  consultation with residents, organizations and
  governments across Nunavut.
• 13 strategic priorities were grouped into 4
  strategic planning areas
• The Land
• The People
• Community Economies
• Territorial Economy

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NEDS Implementation

• Guiding principles
• Cultural Integrity IQ, language, culture
• Determination Realism prioritize, creative
  use of resources
• Self-Reliance build capacity, participation of
  individuals, families, communities
• Community Control develop assets, respond to
  economic opportunities
• Co-operation Coordination integration of
  community and economic development activities at
  local and territorial levels
• Sustainability benefit youth and future
  generations

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Opportunity Areas for Nunavuts Economy

• Mining/Oil Gas
• Harvesting
• Tourism
• Arts Crafts/Cultural Industries
• Public Sector which is expected to level out
  within 10 years future years growth will rely on
  the private sector

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Challenges

• In the Community
• Understanding of CED integration
• Capacity of individuals involved
• Local government vs Inuit organizations
• Statistical/demographic information
• Ability to seize opportunities education,
  infrastructure, private sector realities,
  connectivity, transportation and must be planned
  for

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Challenges

• In the Government
• Relationship with communities
• Capital infrastructure
• Education
• CED
• Relationship with Inuit organizations
• Relationship with other governments

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Solutions

• Community CED plans
• Community CED committee training
• Community CED implementation fund

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CED Plans

• Most communities in Nunavut have a CED plan
  review, updating or scrapping and starting over
  are underway
• GN and INAC have funds available for CED planning
  and implementation in new programs recently
  announced

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NEDA

• Association for the professional development of
  Community Economic Development Officers in
  Nunavut
• CED Workshops built from a successful NL
  program training municipal officials, residents,
  and politicians about their role in CED
• Socio-Ec Analysis Project assist communities to
  research major project development impacts

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Solutions

• GN department-wide policy on CED

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GN CED Definition

• CED is a community-based development approach
  that connects social, economic, environmental,
  and cultural goals for community well-being. It
  is a social and economic development in the
  community, for the community, by the community.

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GN CED Principles

• Sharing having enough
• Community participation and ownership
• Build on strengths and assets
• Meeting social goals by business/economic means
• Respect for traditional and modern knowledge
• Simplicity and plain language
• Collaboration, good relationships and
  partnerships
• People working is association to use their
  individual talents and abilities for the benefit
  of the community

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Solutions

• NEDS recognition of Community as key to economic
  growth
• Communication cooperation between all Economic
  Development agencies in Nunavut towards a common
  goal
• New forums and working groups in place to meet
  this end.

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Thanks

• Cheri Kemp-Long
• Economic Development Advisor
• Nunavut Regional Office, INAC
• Box 2200, Iqaluit, NU X0A 0H0
• kemplongc_at_inac.gc.ca
• PH 867 975 4582
• FX 867 975 4560