The Modern Treaty Era
In Chapter 17 we argued that federal funding to Indigenous peoples has been inadequate, and that problems exist with transparency and accountability on the part of the federal government. As well, much of the money is used to pay non-Indigenous service providers, diluting its impact and providing opportunities for corruption.
Now it is time to acknowledge that problems with transparency, accountability, and corruption can occur within Indigenous communities as well. There are also honest problems translating the funds into successful programs and quality infrastructure.
In this Chapter we’ll examine governance on reserves; in later chapters we will examine the challenges involved in improving infrastructure, housing, employment, and educational achievement. Finally, we’ll look at business opportunities for Indigenous governments and Indigenous leaders, to help them achieve financial independence.
Colonial Legacy:
Before we discuss how First Nations govern themselves, we should acknowledge that most reserves, even those with self-government agreements, are still accountable to the federal and provincial or territorial governments in many respects. All the while, the federal and provincial ministers responsible for Indigenous Affairs have not been Indigenous and are not elected by the Indigenous communities they oversee.
Provincial and territorial governments collect excise taxes on fuel and tobacco, enforce traffic laws, and at least partly regulate education, health, gambling, family and child protection services, as well as hunting, fishing, and trapping.[1]
Federal governments maintain the Status Indian Registry and, for reserves not having a self-government agreement, enforce the provisions of the Indian Act, overseeing all bylaw creation, most land use decisions (unless the First Nation has adopted its own land code under the FNLMA), and the spending of own-source revenue. We mentioned in our chapter on the Indian Act that the money First Nations make from their resources and lands is deposited in the “Indian Moneys Trust” managed by the federal government. A First Nation must ask Ottawa for permission before spending this money: a Band Council Resolution must be passed, and the planned spending must be explained. Former Siksika Head Chief Wolf Collar writes (2020, p. 12):
“I’ve seen this process take anywhere from three to eighteen months. In some cases, bands borrow money from banks and pay interest on the loan to begin projects while waiting for their own funds to be released to them by the government.”
The 2022 National Indigenous Economic Strategy (NIEDB et al, call #85) calls on all levels of government to transfer management of Indigenous communities’ money back to the communities, and to provide financial management resources if needed.
We have seen, and we will see, that more than a century of federal government management of Indigenous communities resulted in widespread poverty on reserves and in the north, mor