a new paradigm: the indian country economy

1. A New Paradigm: The Indian Country Economy

2. Economic development in Indian Country has been viewed as each tribe making the most if its own resource base and opportunities for enterprise development. This perspective, or �paradigm�, is based on the independence of each tribe acting as a self-determining group. Although tribes do work together thru intertribal organizations, such as the Southern California Tribal Chairman�s Association, CNIGA, or the National Congress of American Indians, when it comes to development and operation of tribal enterprises tribes go it alone for the most part. Tribal governments play the lead role in tribal economic development as tribal resources and assets are owned by tribal members in common. The idea of a �tribal economy� sees tribal development as a matter of government control over its own economy. Tribes set the policy that determines which resources should be developed and which should be conserved. Tribal government can regulate not only the use of its own resources but also decide which type of private enterprises will be permitted to operate on the reservation and under what conditions. In setting economic policy, tribes have much in common not only in the type of resources that are available, the laws that apply to Indian Country but also their common commitment to preserving tribal culture and practices. By building on existing commonalities, we can began to see the potential for tribal development of an Indian Country Economy. Economic development in Indian Country has been viewed as each tribe making the most if its own resource base and opportunities for enterprise development. This perspective, or �paradigm�, is based on the independence of each tribe acting as a self-determining group. Although tribes do work together thru intertribal organizations, such as the Southern California Tribal Chairman�s Association, CNIGA, or the National Congress of American Indians, when it comes to development and operation of tribal enterprises tribes go it alone for the most part. Tribal governments play the lead role in tribal economic development as tribal resources and assets are owned by tribal members in common. The idea of a �tribal economy� sees tribal development as a matter of government control over its own economy. Tribes set the policy that determines which resources should be developed and which should be conserved. Tribal government can regulate not only the use of its own resources but also decide which type of private enterprises will be permitted to operate on the reservation and under what conditions. In setting economic policy, tribes have much in common not only in the type of resources that are available, the laws that apply to Indian Country but also their common commitment to preserving tribal culture and practices. By building on existing commonalities, we can began to see the potential for tribal development of an Indian Country Economy.

3. What is the �Indian Country Economy�? Indian Country Economy (ICE) = the collective resource base, production capabilities and service capacity in all of �Indian Country�. Tribal sovereignty is used to give competitive advantage to tribal enterprises in the marketplace . �Produced in Indian Country� is a brand label for some Indian Country products. �Strategic Geographic Location� is a valuable asset and an economic resource of the ICE. By extending the concept or paradigm of a tribal economy to all of Indian Country, we emphasize the commonalities shared by tribes and we look at the resource base of tribes in the US as a collective. This resource base includes not only natural resources such as timber, energy, agricultural production and fisheries but also the industrial and manufacturing production capability and tribal service enterprises. The collective resources of the Indian Country Economy also includes certain intangibles such as the market niche tribal products may gain by exploiting the attraction of a �brand identity� as well as the economic advantages of tribal sovereignty. Tribal sovereignty rights that have been upheld by federal courts include the freedom from state and local government regulation (keeping in mind public safety constraints), advantages of tax status and the federal trust responsibility. Some tribes have also been able to create advantage in the market place by combining strategic geographic location with tribal sovereignty rights. All of these Indian Country economic advantages and opportunities flow from tribal rights. By extending the concept or paradigm of a tribal economy to all of Indian Country, we emphasize the commonalities shared by tribes and we look at the resource base of tribes in the US as a collective. This resource base includes not only natural resources such as timber, energy, agricultural production and fisheries but also the industrial and manufacturing production capability and tribal service enterprises. The collective resources of the Indian Country Economy also includes certain intangibles such as the market niche tribal products may gain by exploiting the attraction of a �brand identity� as well as the economic advantages of tribal sovereignty. Tribal sovereignty rights that have been upheld by federal courts include the freedom from state and local government regulation (keeping in mind public safety constraints), advantages of tax status and the federal trust responsibility. Some tribes have also been able to create advantage in the market place by combining strategic geographic location with tribal sovereignty rights. All of these Indian Country economic advantages and opportunities flow from tribal rights.

4. The �Tribal Gaming� Example Tribal Gaming is common to many tribal economies. Tribal sovereignty creates the opportunity for tribal gaming. Federal law requires tribal gaming enterprises be owned by the tribe. Class III tribal gaming requires a state-tribal compact. When the National Indian Gaming Commission reports that the revenue total for Indian Gaming amounted to $21 billion last year, the American Public and the Congress lumps all tribes together as �Indian Gaming�. Although it is a fact that, taken together, tribal casinos have grown at a phenomenal rate over the past 10 years, we all know that there is great diversity across Indian Country in terms of tribal gaming. Because federal law dictates that class III casino gaming can only be done under state tribal compacts, state law, local politics and the regional economy influence how tribal gaming is conducted and the direction tribes have taken with development of this sector of their tribal economy. Despite these differences, tribal gaming still has more in common than apart. Tribal have enjoyed great success in gaming due to the fact that they have followed sound policies and practices. Management has competed for tribal contracts as experienced professionals could see great opportunity. Moreover, throughout Indian Country, tribes have focused on building their local economy on the foundation of gaming success. Profits from the casino have been invested first of all in growing the enterprise through expansion and with integrated business development. Secondly, tribal governments have looked to secure their local customer base and create good political relations with their neighbors. In many cases tribal casinos have led to a diversified economic base that creates more jobs and vendor opportunities than the competition. How should we interpret the success of these tribal strategies?When the National Indian Gaming Commission reports that the revenue total for Indian Gaming amounted to $21 billion last year, the American Public and the Congress lumps all tribes together as �Indian Gaming�. Although it is a fact that, taken together, tribal casinos have grown at a phenomenal rate over the past 10 years, we all know that there is great diversity across Indian Country in terms of tribal gaming. Because federal law dictates that class III casino gaming can only be done under state tribal compacts, state law, local politics and the regional economy influence how tribal gaming is conducted and the direction tribes have taken with development of this sector of their tribal economy. Despite these differences, tribal gaming still has more in common than apart. Tribal have enjoyed great success in gaming due to the fact that they have followed sound policies and practices. Management has competed for tribal contracts as experienced professionals could see great opportunity. Moreover, throughout Indian Country, tribes have focused on building their local economy on the foundation of gaming success. Profits from the casino have been invested first of all in growing the enterprise through expansion and with integrated business development. Secondly, tribal governments have looked to secure their local customer base and create good political relations with their neighbors. In many cases tribal casinos have led to a diversified economic base that creates more jobs and vendor opportunities than the competition. How should we interpret the success of these tribal strategies?

5. What other elements are common to the Indian Country Economy? Tribal ownership means all tribal members have a stake in tribal economy. �Natural� and �environment friendly� is associated with Native American products. Tribal economic success = tribal political strength in the local and state �political economy.� Before the advent of tribal gaming, when we looked at the economy in Indian Country we saw endemic poverty relieved by a few bright spots. Tribes who lands contained valuable natural resources such as timber or minerals enjoyed some success once they were able to free themselves from the control of the BIA. Agriculture and livestock production provided marginal success but was very dependent on external variables such as weather or commodity prices. Arts and crafts provided a subsistence lifestyle for individuals artisans and their immediate family but could not lift a community out of dependency on federal subsistence programs. Federal economic development aid and federal funds to build and develop a community infrastructure did not keep Indian communities above the poverty level. However, a study of Indian economic development pre-tribal gaming is very instructive. The Harvard Center for Indian Economic Development has published a series of case studies that analyze the link between tribal economic success and tribal political development as well as the relationship between cultural values/traditions and business success or failure. Before the advent of tribal gaming, when we looked at the economy in Indian Country we saw endemic poverty relieved by a few bright spots. Tribes who lands contained valuable natural resources such as timber or minerals enjoyed some success once they were able to free themselves from the control of the BIA. Agriculture and livestock production provided marginal success but was very dependent on external variables such as weather or commodity prices. Arts and crafts provided a subsistence lifestyle for individuals artisans and their immediate family but could not lift a community out of dependency on federal subsistence programs. Federal economic development aid and federal funds to build and develop a community infrastructure did not keep Indian communities above the poverty level. However, a study of Indian economic development pre-tribal gaming is very instructive. The Harvard Center for Indian Economic Development has published a series of case studies that analyze the link between tribal economic success and tribal political development as well as the relationship between cultural values/traditions and business success or failure.

6. Indian Country regions = a distinctive mix of natural resources. Pacific NW tribes have fisheries and timber. Fossil fuel energy, wind and hydro are abundant in the Rockies. Indian Agriculture base in mid-west = livestock and crops. Southwest tribes location = broadband telecom. opportunities. Tribal contracting preferences for government procurement. Besides Gaming what common resources make up the ICE?

7. Are there common economic strategies among tribes? Most sectors of ICE have created an intertribal support organization. (e.g., timber, agriculture, gaming, etc.) The highest priority has been �job creation� The next highest is diversification locally Tribal independence is a strong tradition and there are few examples of tribal joint ventures. Buy-Indian is not widely practiced by tribes Pre-contact tribes were all self-sufficient; they had to be. Pre-contact tribes were all self-sufficient; they had to be.

8. Examples of joint business deals Four Fires, LLC and Three Fires, LLC Mohegan, Pequot, etc., intertribal investment in gaming. Native American National Bank. Alaska Native Regional Corporations. More?

9. �A rising tide lifts all boats!�: Economically and politically. Tribes with capital systematically invest in The Indian Country Economy (syndicates, mutual funds and Indian investment vehicles) These investments offer competitive options for risk and reward. Intertribal trade and investment puts tribal sovereignty to work

10. The New Paradigm: continued Tribes with common resources join together to access new markets. Marketing cooperatives serve common sectors of ICE: access higher end markets Tribal suppliers with strong management and quality control serve tribal retailers (casino-based food service enterprises, etc.)

11. What steps lead to the ICE vision? Indian supplier � Indian buyer models - tribal buy-Indian policies. Business research proves feasibility and multiplier effects Business schools conduct �due diligence� and document economic values for each sector of the ICE Financial instruments, programs and institutions need Indian expertise to serve tribal investors and enterprises Tribal investment needed for research programs

12. �The Indian Country Economy� A Powerful vision An emergent Reality A realistic game plan for today and tomorrow!