Lessons Learned

Lessons Learned
Lessons Learned
Literature Review on Employment,
Labour Market and Economic
Development Policies, Programs and
Services for Aboriginal Peoples
Technical Report
Prepared for:
Evaluation and Data Development
Strategic Policy
Human Resources Development Canada
May 1998
SP-AH141T-05-98E
(également disponible en français)
Table of Contents
1.
Purpose of the literature review ..............................................................................1
1.1 Identifying insights into the effectiveness of labour-market and
community-development planning for Aboriginal populations ......................1
1.1.1 Programs directed to individuals ............................................................1
1.1.2 Programs that create strong communities to support employment
and foster business development ............................................................1
1.2 Our review excludes certain social-welfare policies ........................................2
1.3 Structure of the review ......................................................................................3
2.
Employment/labour market policies and programs directed to individuals ....5
2.1 Overview ............................................................................................................5
2.1.1 Aboriginal labour market and employment programming in
Canada ......................................................................................................6
2.2 Education and training for the economically disadvantaged............................7
2.2.1 The mainstream programs in the United States......................................7
2.2.2 Job Corps — a program that works ......................................................10
2.2.3 The Center for Employment Training (CET) — An approach
that shows promise ................................................................................11
2.3 Training for displaced workers ........................................................................11
2.4 Welfare-to-work programs ..............................................................................13
2.5 School-to-work transitions ..............................................................................16
2.6 Operational issues in education and training ..................................................17
2.6.1 Using performance measures in education and training ......................18
2.6.2 Is there a distinction between education and training? ........................19
2.6.3 Differences in how training is delivered ..............................................20
2.7 Summary of education and training programs................................................22
3.
Community Development as the basis for an employment and
economic-development strategy ............................................................................25
3.1 Defining a community ....................................................................................25
3.2 Relationship between regional and community development ......................27
3.3 Recent advances in community-development techniques..............................30
3.3.1 Models of community development ....................................................30
3.3.2 Public-sector employment as a regional economic-development
strategy....................................................................................................32
3.3.3 Business policies that create employment ............................................33
3.3.4 Entrepreneurship and community economic development..................34
3.3.5 Networks and community economic development..............................37
3.4 A review of federal policy for regional and community development
in Canada ..........................................................................................................38
3.4.1 Department of Regional Economic Expansion (DREE)......................38
3.4.2 Community Futures and community development..............................41
3.4.3 Canadian Aboriginal Economic Development Strategy (CAEDS) ..............42
3.4.4 Regional Bilateral Agreements..............................................................45
3.4.5 Summary of regional development programming ..............................46
3.5 Selected examples of Aboriginal economic development..............................47
3.5.1 Examples from the United States..........................................................47
3.5.2 The failure and success of U.S. policy for community
Aboriginal development ........................................................................50
3.6 Aboriginal community and economic development in Canada: the past
25 years ............................................................................................................50
3.6.1 Summary of Canadian Aboriginal programming ................................51
3.6.2 Examples of successful Aboriginal development from Canada ..........53
3.7 Australian Aboriginal Development................................................................55
3.8 The critical role of governance ........................................................................56
4.
Summary and synthesis ..........................................................................................59
Appendix A — Historical Perspective of Human Resources Development in
Canada — 1965 to the Present ............................................................61
Appendix B — Overview of Australian Labour Market and Training
Programs —1970s-1990s ......................................................................73
Appendix C — Labour-market Training Programs in the United States —
Last Four Decades ................................................................................81
Appendix D — Bibliography ..........................................................................................87
List of Tables
Table 1
Table 2
Table 3
Table 4
Differences between education and training..................................................19
Orientations for Economic Development ......................................................31
Summary of Lessons Learned from CAEDS ................................................44
Overview of selected federal Aboriginal economic development
initiatives in Canada from the 1970s to the 1990s ........................................51
Table A1
Table A2
Table A3
Table A4
Table A5
1965-71 — Human Resources Development in Canada ..............................67
1972-79 — Human Resources Development in Canada ..............................67
1980-89 — Human Resources Development in Canada ..............................69
Component Programs of the Canadian Job Strategy ....................................70
1990s Human Resources Development in Canada ......................................71
Table B1
Table B2
TAP — Training for Aboriginals and Torres Strait Islanders
Programme Description ..................................................................................75
Australian Training Programs, 1970-1990 Period ........................................79
Table C1
1960-1990 Period............................................................................................85
1. Purpose of the literature review
This report reviews employment, labour-market and economic-development policies and
programming in Canada, the United States and Australia. It looks at both mainstream
programs as well as initiatives directed to Aboriginal people and communities.
1.1 Identifying insights into the effectiveness of
labour-market and community-development
planning for Aboriginal populations
We review general descriptions of programs as well as research featuring statistical
designs to test a particular form of labour-market intervention. Our goal is twofold: (i) to
summarize the findings of the last 30 years of research into labour-market and
economic-development planning; and (ii) to present insights into what has worked and
what might work when applied to the unique needs of Aboriginal people in Canada. We
are selective, stressing those studies that lead to substantial insights into the design and
delivery of this form of programming. We also do not delve into the various evaluation
methodologies unless they qualify the findings.
1.1.1 Programs directed to individuals
The most common form of public-sector programming in labour-market and economic
development is designed to increase the chances of a person securing and maintaining
employment. These “primary” interventions benefit individuals as workers and typically
range from motivational and cultural programming to intensive training in job-specific
skills. These “supply side” interventions are offered through the public education system
and increasingly by private trainers contracted to a publicly funded organization.
1.1.2 Programs that create strong communities to support
employment and foster business development
In the past decade, interest has grown in the role of the community in economic
development. Today, community economic development is seen as important to the
welfare of citizens and is often cited as being vital to Canada’s Aboriginal people.
Interventions such as infrastructure creation, entrepreneurship and leadership
development are all elements of a community development process. These interventions
are on the “demand side” because they increase the need for workers.
In addition, a tendency exists to focus the discussion of Aboriginal development at the
community level, generally defined as on-reserve. However, growing numbers of
Aboriginals, especially youth, live in urban areas. Increased economic welfare for this
group is most likely to come through the acquisition of skills that allow them to participate
in the modern economy. For this reason, the insights from the mainstream training
programs are highly pertinent to this study.
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
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1.2 Our review excludes certain social-welfare
policies
Employment, labour-market and economic-development policies connect to
social-welfare policy. Income assistance and policy such as the Canada Assistance Plan
clearly affect the welfare of workers. In this report, we exclude a direct discussion of such
welfare policies, except in regard to a range of policies that encourage, induce or compel
people on income assistance (welfare)1 to secure and maintain full-time work.
Health policies also affect a person’s welfare. The ability to learn and work is clearly
defined by one’s mental and physical health. Our review does not include health policies
and how they influence labour-market and economic-development planning.
Another important way to increase the economic welfare of specific groups is through
programs such as affirmative action. Although their impact on human resources and
individual economic welfare is clear, we do not consider these forms of programming in
this review.
The report also focuses on federal programming. Many important provincial programs
exist; however, these have often not been evaluated, or the evaluations are not readily
available. Further, much of what is done by the provinces to help people gain employment
occurs in close conjunction with social services and education. Most recently, provincial
governments have assumed primary responsibility for education and training directed to
those in the labour market. Often, these programs are similar to those administered by the
federal government and include many Aboriginal clients. We came across few provincial
programs directed exclusively to Aboriginal populations.
Finally, the education system is obviously related to employment and labour markets. We
do not review educational policy in its own right. However, a major finding from our
review of training programs is that the separation of occupational and vocational training
from the education system has had negative consequences for labour training. Further,
dropping out of school is now widely accepted as a major factor in the non-employment
and non-employability of many, particularly young, men. Preventing dropping out of
school must be the core goal of current employment and labour-market programs,
especially for Aboriginal youth.
1
2
Canada and the provinces support an income assistance plan. More common, especially in the U.S. literature
and in everyday language are the terms “social assistance” and “welfare.” We use these terms interchangeably.
Generally, we use “welfare” when referring to U.S. programs and historical programs in Canada, and “income
assistance” when referring to recent programming covered by the Canada Assistance Plan.
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
1.3 Structure of the review
This report groups employment/labour-market and economic-development interventions
under two main categories, each of which is dealt with in a separate section. Each section
examines sub-themes that help clarify what is known about the net benefit of
these interventions.
• Section 2 presents a summary of interventions directed to individuals including
education and training offered to the economically disadvantaged, training for
displaced workers, welfare-to-work programs, school-to-work transitions, and the
management of training programs.
• Section 3 considers what is meant by community economic development. It features a
review of regional development policy in Canada and the United States. In addition,
case studies about Aboriginal development in both countries highlight the essential
preconditions needed for Aboriginal community economic development.
Three appendices summarize the main policy developments in Canada, the United States
and Australia over the last 30 years. These are included as a background to the main
discussion and to illustrate how diffuse policy development has been.
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Development Policies, Programs and Services for Aboriginal Peoples
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Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
2. Employment/labour market policies
and programs directed to individuals
This section summarizes the main findings from over 30 years of designing, executing and
evaluating education and training programs. Broadly speaking, these programs have tried
to remedy skills deficits and lead people on income assistance to economic independence.
Economic independence generally refers to paid employment at a level sufficient to allow
individuals to maintain themselves (and their families).
2.1 Overview
Since the early 1960s, governments have defined and funded many education and training
programs. Most of these interventions have also been subject to evaluations of varying
sophistication. The targets for these programs have been persons appearing to be
permanently on welfare, unemployed youth, workers displaced from their jobs due to
recession and corporate restructuring, and equity groups,2 who are seen as needing
increased access to employment.
Aboriginals in Canada are in a comparable position to people in the “mainstream” whose
education and life experience excludes them from employment. Analogies can also be
drawn with racial minorities in the United States, where discrimination exists as a barrier
to employment. Of course, the legal position of registered Indians in Canada is much
different from that of Blacks in the United States, but the position of many urban
non-registered Aboriginals is not. For this reason, a close reading of “mainstream”
education and training offers important clues as to what elements may comprise a viable
human resource planning process for Aboriginal peoples in urban Canada.
In the United States, the origin of current education and job training programs directed to
individuals is the war on Poverty and the Great Society programs spawned in the political
activism of the 1960s. In Canada, the steady increase in unemployment during that decade
led to the creation of the Department of Employment and Immigration and the
consolidation of federal programming in this area. The Canadian Jobs Strategy and, most
recently, the Strategic Initiatives are examples of umbrella arrangements3 that have shaped
and defined federal policy in this area.
A key difference between Canada and the United States is the relatively greater scope and
autonomy enjoyed by the federal government in the United States to implement
programming. In Canada, many federal initiatives are created as joint ventures with the
provinces and, most recently, directly with Aboriginal organizations.
2
Equity groups usually comprise women, visible minorities, ethnic, religious and racial minorities.
3
Umbrella arrangements refer to groups of program components, initiatives or agreements under a larger policy
framework. An example is the National Framework Agreement with national Aboriginal organizations that led
to the negotiation of many regional bilateral agreements.
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Development Policies, Programs and Services for Aboriginal Peoples
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2.1.1 Aboriginal labour market and employment
programming in Canada
From the early 1970s to the late 1980s, labour market and employment training programs
targeted Aboriginal and other mainstream disadvantaged communities.
• The Local Employment Assistance Program (LEAP), started in 1973, was designed to
strengthen attachment to the labour force of persons unable to compete for
employment. An evaluation found that there were marginal impacts in terms of
employability.
• The Community Employment Strategy (CES) of the mid-1970s was designed to open
up employment opportunities for persons experiencing continuing difficulty finding
and keeping employment. It was a joint process between federal and provincial
governments who were reluctant to get involved in long-term projects that forced
communities to emphasize short-term job creation measures.
• The Local Economic Development Assistance (LEDA) program in 1980 was intended
to help communities experiencing slow growth play a role in stimulating private-sector
employment through local enterprise development.
• The Local Employment Assistance and Development (LEAD) program in 1983
emerged from the restructuring of direct job creation programs such as LEDA. It later
became the main component of the Community Futures Program in 1986. An
evaluation found that the development of communities was well-suited to the
development of the small-business sector.
• The Community Futures Program (CFP) targeted non-metropolitan communities
suffering from slow growth, chronic high unemployment and/or a limited economic
base. The program’s legislative basis was the Canadian Jobs Strategy Terms and
Conditions approved by Treasury Board.
In the 1990s, there were a number of changes to labour-market programming. First, up to
this time, Human Resources Development Canada’s labour-market and
employment-training programming targeted all Canadians and treated Aboriginal people
as an equity group. Second, since the 1970s, this programming had been linked to
community economic development, but with the transfer of Community Futures to
Industry Canada, this role ceased. Third, separate programming for Aboriginal people was
introduced in 1990 with the Pathways to Success Strategy, the subsequent National
Framework and the recent regional bilateral agreements.
Pathways to Success introduced Aboriginal area management boards for the purpose of
co-managing Human Resources Development Canada programming. The successors to
Pathways to Success are the regional bilateral agreements that allow Aboriginal
communities to design and deliver program components. We discuss these initiatives
further in the context of federal policy for regional and community development in
Canada in Section 3.4.
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Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
The Department of Indian Affairs and Northern Development recognized that market
failures and structural problems impede the matching of workers to jobs. The department
introduced the Aboriginal Workforce Participation Initiative (AWPI) to increase
employers’awareness, promote the hiring of Aboriginal employees and encourage
partnerships with businesses. An evaluation framework was prepared, and data such as the
number of employers participating, the increased skills of employers, awareness and
partnerships will be collected. Data collection instruments have been designed and a
database will track indicators and program results over the next few years.
2.2 Education and training for the economically
disadvantaged
The term “economically disadvantaged” covers a broad cross-section of poor people who
typically have little education and few job skills. It may include social-assistance
recipients, school drop-outs and those who have been displaced as a result of corporate
restructuring. This is the most generic group targeted for educational and training
upgrading. Usually, these programs do not restrict eligibility to people who are on
assistance, displaced from work, receiving unemployment insurance or members of an
equity group. The only requirement is that recipients be unemployed and have little
education. This is in contrast to other programs where receipt of income assistance is a
program requirement.
2.2.1 The “mainstream” programs in the United States
Mainstream programs in the United States (see Grubb: 1995 for a concise summary) are
exemplified by the interventions offered by the Comprehensive Employment and Training
Act (CETA), the Job Training Partnership Act (JTPA). In Canada, they are exemplified by
various programs under the Canadian Jobs Strategy and Strategic Initiatives.4 These
programs typically involve classroom training, on-the-job training, work experience,
academic upgrading and life-skills training such as job-search assistance, résumé
preparation, interview skills and motivation. In some cases, life skills may also include
time management, budgeting and other personal and organizational abilities. The typical
participant has serious educational and training deficits that preclude participation in
anything but the casual labour market.5
4
The Canadian Jobs Strategy also included significant programming directed to business and communities.
5
The casual labour market features part-time and short-term employment, usually at or slightly higher than the
minimum wage. Employees typically have few fringe benefits, are not represented by a union, and are not
included in firm-based on-the-job training.
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Early evaluation of these interventions used a quasi-experimental method (regression).6
Typically, the outcome of treatment groups (those participating in the program) are
compared to those of control groups (“identical persons” who did not participate).
Usually, identifying comparison groups presents a complex challenge, and researchers
have developed ingenious methodologies to compensate for flawed designs.7
Longitudinal studies such as the “Panel Study on Income Dynamics” have followed
program participants over an extended period. These studies have demonstrated a “decay”
in program-effect where training recipients return to welfare after a period in the
labour force.
Recently, economists have adopted experimental (random assignment) methods to assign
participants to various levels of treatment.8 These designs have typically evolved in the
context of “workfare,” where compulsory training can be allocated randomly, thereby
overcoming some of the ethical challenges of withholding training from
certain individuals.
Lalonde (1995) summarized some 30 of the most prominent studies of the Manpower
Training Development Act (MTDA) and CETA. The evaluations showed disappointing
results for these interventions, which typically comprise varying combinations of
classroom and on-the-job training as well as life-skills courses. Women tend to enjoy
benefits in terms of increased post-program wages and employment. Typical wage
increments range up to $3,000 a year in some programs (Ashenfelter and Card, 1985) but
are typically $500-$700 a year. The gains for men are lower; and for youth they are
disappointing with negative returns commonly reported.
The fact that different programs should appear to offer such a wide variation in outcome
is disturbing. It suggests that either researchers are using different methodologies or that
the programs differ fundamentally in design and delivery, or both. Lalonde (1995)
believes that small differences in statistical methods and the composition of the
comparison group are responsible for this variability. Barnow (1987) investigates this
variability and also concludes that “the great variation in the impact estimates shows that
the findings are highly sensitive to the methods used” (p.189).
8
6
A quasi-experimental methodology assigns differing levels of treatment to participating individuals and creates
comparison groups of those who do not participate, but for whom outcome data are available. The focus of the
evaluation is the estimation of a statistical relation between treatments (measured as training intensity such as
number of course hours, number of courses, or even just a dummy variable to significant course attendance)
and outcomes (measured by increased earnings, job holding and so on.) Included in the model are a variety of
statistical control variables such as age, gender, prior education and ethnicity. These methodologies are tricky.
As Lalonde (1995) notes: "unbiased estimates of the training effect depend both on the criteria used to select
the comparison group and on the specification of the earnings and program participation equations" (p. 155).
7
Bell et al. (1995) review this literature and argue that program applicants not yet accepted into a program
constitute an ideal program-comparison group.
8
Lalonde (1995) notes that experimental methods suffer from selection biases where those entering a program
are not the same as those who do not. Further, random assignment is difficult to execute since it requires
program administrators to withhold programs from apparently deserving clients. Ethical challenges are difficult
to resolve, and research protocols are sometimes subverted by well-meaning program managers.
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
In 1996, the General Accounting Office9 evaluated a broad range of training programs
under the JTPA with uniformly negative conclusions. The programs did not produce
higher earnings after training, nor did they reduce the spells on social assistance.
Heckman (1996) comes to the same conclusions in a widely ranging review. Using
research by Lynch (1992) and Lillard and Tan (1986), he argues that training offered by
the private sector has a higher rate of return than training offered by the public sector.
Typically, private-employer-based training, if offered to those who are going to be given
a job, will have high success rates. Because employers pre-screen applicants before
offering these programs, much of the higher return is explained by the selection process.10
Heckman also advocates investment in public education. He notes that the returns to
investment from formal education are highest for the young because they accrue over a
longer life span and because “early learning begets later learning” (p. 340).
Recently, Friedlander and Greenberg (1997) have synthesized the literature on training
programs for economically disadvantaged persons. This survey includes the latest studies
on the JTPA.11 Friedlander and Greenberg confirm Lalonde’s findings of a decade
earlier that:
• training programs for the disadvantaged have produced modest positive effects on
employment and earnings for adult men and women that are roughly commensurate
with the resources expended.
• these programs have not made substantial inroads in reducing poverty, income
inequality, or welfare use.
• despite a large number of evaluations of government training programs and the
development of a variety of sophisticated evaluation methods, considerable uncertainty
remains about the kinds of training that works best, the effectiveness of training for
certain demographic groups and the appropriate policies for increasing aggregate
effect (p. 1810).
Friedlander and Greenberg note that adult women benefit the most from training, although
the recent JTPA evaluations show modest positive impacts for men. For youth, the impacts
are mixed, and aside from the Job Corps (see below, Section 2.2.2), systematic positive
impacts on wages and welfare use by youth are difficult to detect. Since the programs
touch a fraction of all welfare recipients, the aggregate financial effects are small. In other
words, the overall rate of return in terms of reduced use of welfare
is inconsequential.
9
General Accounting Office, (1996) Job Training Partnership Act: Long-term earnings and employment
outcomes, Washington, D.C.
10 This is known as “creaming” and we will return to it below.
11 The JTPA included important differences compared to the CETA programming. Most notable is the use of
partnerships with other levels of government, firms and non-governmental organizations. This increases its
flexibility in offering job-training venues.
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It is also unclear whether expanding the programs might not include less suitable
candidates for training who would not benefit from program involvement. This is a
complex issue which suggests that many are beyond the scope of these interventions.
Relapse is also common — many participants return to welfare after a short-term start in
the labour force. Finally, training programs do not have the same sustained impact as
increases in formal education.
In summary, the results of 30 years of designing and implementing job training in the
United States shows small increments in earnings for participants and relatively low
returns for the taxpayer’s investment.
2.2.2 Job Corps — a program that works
Established in 1964, the Job Corps is one of the oldest programs in the job-training
portfolio. The key features of this program are a rigorous selection process12 and a
residential setting that takes poor (male) youth out of their home setting. This program
reflects the view that “poor individuals are trapped in an inter-generational “culture of
poverty” which can best be combated through intensive services to youth” (Levitan and
Gallo, 1988).
According to Levitan and Gallo, the Job Corps has high success if program participants
remain enrolled until the conclusion. Those who leave early are much more difficult to
place into jobs and typically have both lower wages and much shorter employment
duration. The key element of the program appears to be the residential nature of the setting
and the focus on core academic skills, especially reading and writing.
Lalonde (1995) critically analyzed Job Corps’ claimed net social benefit of $5,590.13 Much
of this is generated by a calculated reduction in the social costs of crime that would have
been committed by the program participants had they not participated. Nonetheless,
evaluators widely cite the Job Corps as an effective, albeit expensive, program (at about
US$ 16,000 a year in 1985).
Clearly, the residential aspect of the program might strike a discordant note in its possible
application to human resource programming for Aboriginal youth. However, training
young men has proved difficult, and with the attractions of a gang lifestyle in many
Canadian cities, training that removes youth from this setting may offer a higher chance
of success than other approaches. Residential training that is Aboriginal-oriented with
appropriate cultural values certainly has little relation to the residential-school system of
old. However, this is an expensive option compared to regular community-based
education and training that features classroom and on-the-job instruction. But then again,
these programs have generally not worked.
12 Enrolment is limited to young men between 16 and 25 years of age. They must be economically disadvantaged,
meet armed forces requirements, live in an environment that "substantially impairs" prospects for successful
participation in other programs and be free of medical or behavioural problems (drug and alcohol dependency).
13 This is the estimate of Charles Maller et al. (1992) Evaluation of the Economic Impacts of the Job Corps
Program: Third Follow-up Report, Mathematica Policy Inc.
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Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
2.2.3 The Center for Employment Training (CET) — An
approach that shows promise
In recent years, authors such as Giloth, Harrison and Weiss (1998) refer to job-centred
economic development that focuses on “good” jobs as an outcome of low-income
communities. They state that traditional employment and training programs have not been
effective for most groups, especially low-income communities. Job-centred economic
development “underscores jobs outcomes, not simply economic adaptation, new business
generation, job readiness or workforce attachment” (Giloth, 1998). These
“employer-centered training programs are said to produce the greatest payoffs, especially
for groups such as out-of-school youth, for which practically none of the existing
programs have proven effective” (Bishop, 1994; Knocke and Kalleberg, 1994; Batt,
1993).
Besides the Job Corps program, these authors believe the San José-based Center for
Employment Training (CET), which serves a large Chicano clientele, is one of the most
innovative and successful programs for training people. This job-centred program is said
to be successful because it combines strategies such as welfare-to-work programs, job
training and economic development. It draws on a number of funding sources
(Giloth, 1998).
Lautsh and Osterman also state that CET is effective because of its close ties to employers
and a grounding in a community-based organization: “What distinguishes CET are efforts
to alter the environment within which its clientele operates.” (Lautsh and Osterman, 1998)
These programs might offer promise in Aboriginal low-income communities with strong
economic-development organizations that have ties to local employers.
2.3 Training for displaced workers
Governments have placed a priority on training workers who are displaced from the
labour market due to seasonal employment fluctuations or industrial restructuring. This
group is not economically disadvantaged in that they often have high school education and
work experience.
Training for displaced workers seems to have somewhat higher returns than training for
the disadvantaged. Kodrzycki (1997) finds that displaced workers who undertake a
combination of training and education generally do earn more after their lay-off. However,
she uses micro-data to show that the increased income is often due to workers using the
training to switch to a higher-wage occupation. Training alone is not the factor that leads
to higher wages. Rather the training leads to career switches — it opens new doors. Also
key is the fact that displaced workers frequently have more education than
welfare recipients.
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Leigh (1990) reviews programs in the United States, Canada and Australia. While the
focus of his work is a review of training for displaced workers, he considers a fairly broad
range of programs. He finds:
• Canadian and Australian studies echo the generally negative findings of the evaluations
of U.S. programs. For example, the evaluation of the Canadian National Institutional
Training Program found that wage increases and annual earnings were not improved by
the skill training. In Australia, the Labour Adjustment Training Arrangements found
that such training actually reduced the likelihood of re-employment, possibly because
the training was inappropriate or delayed job assistance.
• For the Canadian Manpower Industrial Training Program (which purchased on-the-job
training from private employers) little impact was observed on weekly wages.
• In an important conclusion, Leigh argues that job-search assistance has the largest
benefit for displaced workers compared to education or vocational training.
In a recent study of training on Unemployment Insurance (UI) recipients in Canada, Park
et al. (1996) found that training for UI recipients shows a wide dispersion in outcomes.
Training that pays UI while training is being received (the claimant must arrange to pay
for the course), programs to help women re-enter the workforce and training to meet
projected skill shortages had high rates of return. Training that is part-time or directed to
the long-term unemployed had lower or even zero returns.
A recent related project offered in Canada is the Earnings Supplement Project (ESP),
which tops up the earnings of displaced workers and recipients of unemployment
insurance.14 A displaced worker or UI recipient may have his or her wage supplemented
for a limited time, provided the job starts soon after lay off and pays less than the previous
job. With respect to the cost-benefit ratio of the training programs, the results are mixed.
Given the increase in earnings across the population of participants, the aggregate benefits
outweigh the costs.
In general, training for displaced workers appears to have higher returns than training for
the economically disadvantaged. Their higher educational levels as well as the fact that
participants usually have substantial job experience are important advantages in
recovering economic independence.
These evaluations confirm the importance of completing high school. Short-term training
for those with weak academic skills always shows poor long-term results.
14 The Unemployment Insurance Program is now the Employment Insurance Program. The new program is
financed through premiums paid by the worker and employer but imposes a qualification on the hours worked,
not insurable weeks. It adjusts the payments to reflect average and not actual wages earned in the weeks prior
to job loss, reduces benefits for repeat users, adds a low-income supplement and increases the recovery of
benefits through the income tax.
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2.4 Welfare-to-work programs
Paralleling the most recent round of job training for the disadvantaged are programs
designed to tackle the high and growing caseload of those on welfare.15 An important
subset of programming targeted for welfare recipients is known as “work-related
programs for welfare recipients.” This form of program usually requires those receiving
welfare to participate in job-search assistance, workfare (unpaid work and community
service in exchange for welfare) and other education and training. Typically, mothers with
young children at home are exempt.
The first U.S. program to encourage welfare mothers to work was the Work Incentive
(WIN) program announced in 1967. Under this program, Aid to Families with Dependent
Children (AFDC) recipients could keep a percentage of their work earnings. Through the
1980s, financial support for WIN dwindled. Several states responded by creating
demonstration projects that tested the effectiveness of measures to encourage long-term
welfare recipients in obtaining employment. These demonstration projects used a wide
range of inducements and penalties to get welfare recipients to obtain work. The
Manpower Demonstration Research Corporation evaluated these demonstration projects
using various experimental methods.16 According to Burtless (1992), the results are clear:
• Demonstrations that required community service and did not offer job-seeking
assistance show little effect on wages or welfare use.
• Projects that intensively promoted participation showed the greatest results in terms of
increased income.
• Later programs that included work experience also showed increased earnings among
welfare recipients.
• While many participants in these programs enjoyed greater incomes, a portion of the
extra income was received by taxpayers in the form of reduced welfare payments. This
lowered the net pay to the recipients.17
15 Whitman (1987) captures the late-1980’s mood that set the stage for the recent round of legislative reforms. He
argues that the key issue leading to the support of stronger legislation to limit eligibility for welfare was the
large number of single-parent families that had used AFDC for more than a decade. Blank (1997) identifies the
reasons for the increase in the United States after 1990 as increases in the number of child-only cases (payments
made directly to a child), an increase due to the recent recession, and a long-term increase that is not easily
explained. Public support for these more aggressive approaches to dealing with welfare appears to have
emerged from frustration at the intractable nature of long-term welfare dependency.
16 These studies were able to assign welfare recipients to various treatments as part of the legislation. The
compulsory nature of the programming eased many of the problems with random assignment.
17 Most of these programs solved the disincentive effect. Unlike most conventional social assistance programs,
participants in these welfare-to-work programs were allowed to keep a portion of their earnings without
suffering a decline in welfare payments.
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The modest increase in net income did not encourage many participants to leave welfare
permanently. This echoes the results from the training evaluations. Workfare in the 1980s
did not reduce participation in welfare programs and had little effect on poverty.
Bell and Orr (1989) countered this pessimistic assessment. They conducted experiments
with seven state demonstration projects and found that: “The training and subsidized
employment programs examined here produced significant increases in earnings and
reductions in welfare dependence in at least one of the two post-demonstration years in
six of the seven demonstration projects. Subsidized employment is a cost-effective tool
for improving the economic status of welfare recipients” (p. 59 and 60).
In the 1990s, lawmakers in the United States, and to a lesser extent in Canada, have been
even more persuaded that a significant reduction in long-term welfare caseloads can be
effected by offering incentives and penalties, especially for adults with no physical or
intellectual barriers to employment. The recent mandatory maximum time limits in AFDC
eligibility in the United States and in Canadian provincial programs such as Making
Welfare Work18 illustrate this legislative mood.
The Job Opportunities and Basic Skills Training, Greater Avenues for Independence
(GAIN), and Project Independence programs in the United States concentrated on shortterm treatments such as job search and quick educational upgrading as opposed to longerterm training. The thinking appears to be to “jump-start” the back-to-work process and
spread the money among many participants. In general, most evaluations of these
initiatives have shown statistically significant increases in earnings, but the likelihood of
coming off welfare has not been reduced.
Three findings are important:
• These programs do not work in weak economies.
• The largest impact was on those least ready to work. This contradicts the common idea
that those who are the most job-ready are more likely to secure full-time employment
and are the easiest to place.
• Since earnings increases were small, the reduction in welfare payments were
commensurately small.
18 The Making Welfare Work initiative of the Manitoba government requires everyone on income assistance to
enter an employability enhancement measure or program. Single parents with children under 6 or with
disabilities are not expected to enter such programs. Other clients have a “work expectation” attached to their
eligibility for income assistance and face sanctions in the form of reductions in payments if they do not respond.
The enhancement measures range from job-search instruction and brief skills refreshers for those judged to be
employment-ready to more substantial academic and life-skills training for those who face greater barriers to
economic independence.
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The most recent review of welfare-to-work in the United States (O’Neill and O’Neill,
1995) finds that: “there is no evidence that any of the large number of education,
employment and training programs that have been offered or mandated for AFDC clients
since 1967 has had a significant impact on the duration of time spent on welfare” (p. 108).
The authors go on to say: “It has proven extraordinarily difficult for any government
program to transform a subgroup of recipients with multiple problems into workers who
can earn a high enough income to support a family on their own and compete with the
benefits offered to welfare recipients” (p. 109).
The Canadian context for social security differs from the United States. No national
welfare program exists: rather the Canada Assistance Plan (CAP) offers federal-provincial
cost sharing in the provision of income assistance. Each province administers its own
income-assistance program.19 Most provinces use a needs test and offset
income-assistance payments if the recipient obtains employment or other income. This is
widely acknowledged to be a significant disincentive to work, since an extra dollar earned
by employment results in a commensurate reduction in the income-assistance payment.
The Self-Sufficiency Project in Canada (SSP) is designed as “an opportunity to provide
an alternative approach to encouraging work among welfare recipients, with safeguards to
minimize disincentive effects, while at the same time substantially increasing income”
(Card and Robbins, 1996: p. 3). The three features of the program are:
• a money incentive to work;
• low marginal tax on earnings; and
• a requirement that participants work at least 30 hours a week.
This project measured whether these incentives could encourage income-assistance
recipients to move to full economic independence. Initial indications are that the SSP does
encourage income-assistance recipients to seek and maintain full employment. In just over
a year, the fraction of former income-assistance recipients who participated in SSP and
had found employment was significantly higher than the control group.
In light of the pessimism that surrounds the literature on training and welfare-to-work
programming, these forms of financial incentives to seek work are likely to grow in
popularity. It is also important to note that the strict workfare and eligibility restrictions
that have been enacted in the United States have yet to be adopted in Canada, although
Ontario and Alberta have come closest.
19 In some provinces, municipalities may have the discretion to adjust eligibility and payments, but these
arrangements are gradually being eliminated.
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2.5 School-to-work transitions
As stated in the introduction, we have not considered how the education system and
policies affect employment and labour-market planning. However, there are important
links between human resource planning and education — specifically in the way
vocational and occupational training are integrated with the academic curriculum. The
school-to-work transition literature offers important insights as to why various training
programs have not worked well.
A significant area of human resource planning falls under the rubric of school-to-work
transitions. Closely related is the growing awareness that students need to be maintained
in formal education for as long as possible. Evaluations confirm the value of basic formal
education as the foundation of job-related training and eventual success at securing and
maintaining employment.
A common reason advanced for early drop-out before high school completion, especially
among young males, is that the link between academic education and occupational
preparation has not been made sufficiently clear. This has led to a growing awareness by
educators and parents that academic education needs to become occupationally relevant
in order to hold the interest of most students, particularly young men.
In the United States, the School to Work Opportunities Act (STWOA) involves employers
and the public schools “to create more effective arrangements of school and work for
young people” (Urquiola et al., 1997). Initial efforts focused school-to-work (STW)
strategies on targeting people not destined to go to college. These traditional “shop”
classes stigmatized their students and have given way to broader programming. Recent
efforts have refocused the initiatives to include a general integration of work and
occupation issues into the curriculum for all high school students.
Key features of the STW include integration of academic and occupational courses,
work-based training, creating clear paths from high school to post-secondary education,
and including technical and four-year colleges and universities. Typical programs involve
high school students working with an employer for a two- or three-month period and
obtaining a course credit for successfully completing work assignments.
The STW process tries to connect work to the public education system and post-secondary
education. The idea is that even students who are academically oriented benefit from an
exposure to occupations. Including university-bound students in the STW programs
removes the stigma for students who are non-college bound.
Typical evaluations of STW Urquiola et al. (1997) include the following:
• Wisconsin Youth Apprenticeships Program evaluation found that STW had significant
impacts on in-school performance (lower absenteeism, higher grades) and improved
labour-market outcomes after graduation.
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• Manufacturing Technology Partnership Program is a joint effort by the United Auto
Workers and General Motors to attract more minority and female workers to the car
industry. This program was generally successful, but this may be more the result of
ample funding from GM and highly paid union employment than the program itself.
Urquiola et al. cite several other evaluations but are forced to conclude that “Even on a
small scale, most studies of individual programs have not yielded clear results.” They also
believe that it is unlikely that STW can be evaluated using random assignment methods,
the approach most researchers advocate for assessing job-training impacts. Because the
implementation of STW varies so widely, the tightly controlled evaluations needed for
random assignment studies are not possible. Further, STW involves all students in a
school, making random assignment ethically unfeasible.
STW has rapidly emerged as a counterpoint to the fragmentation between education and
training. Rather than being a direct outcome of the apparent failure of the training
strategies, STW has emerged along a parallel course. Integrating occupational and
academic activities addresses many of the criticisms levelled against the training and
welfare-to-work programs. In this way, the school-to-work literature offers important
insights on how educational reform has long-term human-resource consequences.
Canadian research again tends to be more diffuse, with several studies examining the
school-to-work transition. Lowe and Krahn (1995) analyze the extent to which high
school graduates engage in labour-market training of their own volition. Using
longitudinal data, they note that many younger workers do engage in lifelong learning by
taking courses and job-related training. Significantly, students that had received
job-related training in school (e.g., community college) were more likely to continue
investing in job-related education once employed.
Lowe and Krahn admit that this represents a well-educated sample, but they believe their
findings have policy relevance. They find that formal education offers occupationalspecific training, while informal training offers job-related information. In essence, Lowe
and Krahn point to a process in which the formal education system and the informal
employer-based education system are converging. This confirms the need to meld the
academic education system with occupational and vocational training.
2.6 Operational issues in education and training
Much of the research into education and training for disadvantaged groups focuses on the
outcomes in terms of increased wages and the changed likelihood of remaining on
welfare. Comparatively little has been written on the delivery models used to provide
human resource interventions. With the increased devolution of training to partners and
the use of contract training, these management issues are very pertinent.
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2.6.1 Using performance measures in education and training
Recently, training programs in Canada and the United States have introduced performance
measures and incentives in an attempt to secure benefits from the training expenditures.
Many programs subcontract training to private consultants and use performance measures
as elements of the contract to ensure education and employment targets are met. For
example, JTPA and other training projects within the Strategic Initiatives programs in
Canada may compensate trainers only after their students graduate and maintain
employment for a specified period.
JTPA used “value-added” performance standards that included a reduction in measured
unemployment, increases in earnings and a reduction in long-term welfare dependency.
Payment was made upon a measure of a beneficial change in these indicators after
training. However, Cragg (1995) illustrates the problem of “moral hazard”20 and
“creaming” that can undermine training programs. If trainers are paid according to
employment and wage results, incentives exist to direct their programs to the most
job-ready. As others have shown, this group is likely to find their own way back to the
labour force. People who face higher barriers to employment and for whom successful
training has the highest payoff for the taxpayer may not receive adequate training because
the rewards to the contractor can be realized only after prolonged training (and cost).
Cragg’s research on the JTPA confirms that performance incentives for training create
responses on the part of trainers that can frustrate the achievement of program goals and
allocate resources to those least in need. At the same time, the author believes outcome
measures can raise the overall performance of a program and offset the impacts of
creaming.
Stecher et al. (1995) review the use of performance measures in vocational training under
the Carl D. Perkins Applied Technology and Vocational Education Act (1990). Earlier
evaluations (Stecher 1994) have found that performance standards and measures did not
produce the outcomes intended. The states that participated in the earlier round of the Act
were found to have engaged in prolonged implementation, and technical assistance was
unavailable to help schools translate performance measures into changed approaches.
Stecher et al. (1995) recommend the following as key to effective use of performance
measures in vocational training:
• Include teachers in the evaluation and measurement process since they are the primary
agents of program change.
• Compare the progress of special groups to the population as a whole to ensure that this
targeted programming is as effective as other activities.
20 Moral hazard exists when a regulation leads to perverse results. For example, mandated seat belt usage leads
some drivers to believe they can safely drive at a higher speed, but higher speed negates the benefit of the seat
belts.
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• Weave evaluation into all phases of a training activity.
• Embed an improvement plan in the organization’s training program.
2.6.2 Is there a distinction between education and training?
This may appear to be a conceptual question. But the fact that most policy-makers answer
this question affirmatively defines a fundamental feature of mainstream education and
training. Specifically, policy-makers have divorced the formal academic education system
from the training infrastructure. Grubb (1995) in a wide-ranging and highly critical review
of education and training, identifies this as a serious mistake. Table 1 shows the
distinctions that Grubb says have been drawn between education and training.
TABLE 1
Differences between education and training
Training
Education
Generally short — (as low as 2 weeks to a
year) JTPA averages 3.5 months or 4.
Longer programs with post-secondary
certifications taking up to 2 or even 3 years.
Defined by eligibility (e.g., those on social
assistance and Employment Insurance,
Aboriginal people).
Open to all members of the public.
Offered by a wide array of public and
private suppliers.
Located within accredited institutions.
Uses traditional classroom setting as well
as on-the-job training, job clubs, work
experience and counseling
(individual and group).
Courses located in a traditional setting
(classroom or labs) with distance education
emerging.
Sponsors often take on the responsibility to
find work for their clients.
Employment is not seen as a responsibility of
the sponsor.
Goals are narrow and focused on training
participants to secure employment.
Goals are broad and include ethical, political,
moral and liberal education objectives as
well as occupational goals.
Often defined as a “second chance” or
compensatory for not having used the
education system well in the first place.
This system is regularly changed as
government identifies new target groups
and objectives. Funding is typically
short-term and just a fraction of that spent
on education.
The primary method for readying citizens for life,
in which employment is an important but not the
only part. Students move through the system in
sequential process. This system is formalized
and deeply rooted, so it is difficult for government
to design programs for specific needs.
Source: Adapted from Grubb (1995)
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The JTPA and the Strategic Initiatives programs often feature many partners in the
delivery. Typically, community-based organizations and private-sector trainers are the
primary agents offering programs to the economically disadvantaged. Certainly, formal
educational institutions, especially community colleges, have become more involved in
delivering these programs, but they still account for a small fraction of the total funding.21
This schism accounts for much of the failure in the human resource programming directed
to the economically disadvantaged.
2.6.3 Differences in how training is delivered
The evaluations of education and training offer a range of insights into the design and
delivery of these programs. Many of these evaluations inform the development of human
resource planning for Aboriginals.
• Most of the training programs do not address fundamental educational deficits. The
programs are very specific and usually short term in comparison to conventional
certification programs at a college.
• The funding is small in relation to the problem being solved. The dollars spent on
training are a tiny fraction of the funding needed to support income-assistance
programs.
• Often the strategy is wrong in that the objective is to secure any job. The programs
combine a specific skill-deficit remedy with a threat of welfare attenuation. In reality,
many programs fail because the labour market cannot consistently deliver low-wage
and low-skill jobs. The casual low-wage labour market is unstable, and those jobs that
are created are just as regularly destroyed.
This contrasts with a strategy that seeks to move participants into higher skill areas where
employment stability is greater. According to Grubb, the focus should be on the
enhancement of basic academic skills, not job-specific training. The earnings profiles of
those who experience short-term training are profoundly different from those that go
through a more conventional academic certification program. Training welfare recipients
to participate in this unstable job market is likely to produce poor outcomes and to
perpetuate their involvement with income assistance.
• Grubb offers a broad indictment of training offered under the JTPA:
— Business sometimes uses the partnerships between private employers and training
to secure low-wage workers rather than as training to lift welfare recipients
permanently out of dependency.
21 Examples of post-secondary institutional involvement are shorter training programs such as computer courses
and three-day workshops.
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— Many different organizations supply training to widely varying standards. Little
quality control exists.
— The theory of how to offer training to those with low education is poorly
articulated. Attention to the needs of adult learners is often missing, and the
pedagogy of training is deficient.
— Most organizers of training in the programs offer little educational experience or
understanding of how to organize and deliver these programs.
— Program funders are equally unqualified to assess and monitor program
performance by their service providers. Performance contracts are either deficient
or poorly enforced.
— Training programs are local and may be subject to political influence. The
reallocation of resources from ineffective to effective programs can be
complicated by the interests of training providers who are involved in the
contracting process.
• Job-related training with effective placements typically has a higher return than general
training with poor placement.
• Many training programs offer a single course. Some programs even limit eligibility, and
training is usually not part of a sequence of increasing skills (i.e., a ladder of
competency). This is in sharp contrast to the academic model where prerequisites
channel the student to increased competency. Lifelong learning requires that lower
skills-training needs to be followed by a sequence of increasing intensity. Training
programs should also flow upwards.
• Until the recent economic recovery, the labour market has had little capacity to absorb
the surplus of low-skill workers.
• A three-tier population exists among the economically disadvantaged:
— Tier 1 consists of those people who are most job-ready (first-time welfare
recipients with recent job experience) and who have a high chance of making their
way back to the labour market unaided.
— Tier 2 includes people with some time on welfare and a basic education. They
often show the greatest gain in terms of being able to come off welfare after
training.
— Tier 3 is the most disadvantaged group. These people often have long periods on
welfare and low education. They require significant investment to secure
permanent employment.
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According to many evaluators, training Tier 2 shows the greatest gain to society in terms
of a long-term reduction in welfare costs. Training for Tier 1 should consist only of
job-search assistance. More training is not necessary since these welfare recipients can
usually rejoin the workforce with little investment. Tier 3 welfare recipients comprise the
largest investment and require a broad range of supports to enter the labour force. This
detailed counseling and intensive support is referred to as “case management.”
Limited training programs simply cannot lift those Tier 3 persons on welfare into a level
of competency needed to be competitive (Hansen, 1994; Grubb and McConnell, 1992).
• Youth unemployment may be due to a lack of high school education, a poor labour
market, a rejection of school, or family destructiveness (Quint et al.). This is a typical
pattern for many Aboriginal youth. The residential Job Corps program offers important
potential advantages but it is very expensive.
• Those that abandon the first educational system (conventional education) often reflect
an intellectual dysfunction. A dropout with a grade 8 education who requests training a
decade later has educational deficits that require massive investments to rectify. The
common use of the General Educational Development (GED) test as a proxy for high
school is a pale reflection of a true secondary education. Passing this test does not equip
the students to complete technology programs in community colleges.22 This leads to
the inevitable conclusion that a key strategy must be to maintain attendance to at least
the high school completion level.
• Following the insights of Lowe and Krahn (1995) and Urquiola et al. (1997),
connecting academic programs with occupational training is important for maintaining
a student’s interest in school.
Education and training need to be much more tightly bound. Educators need to connect
their programming to the labour market and occupation. At the same time, trainers need
to adopt the competency-based approach used by educators. Those who contract for
training need to ensure value-for-training as it is being delivered rather than rely on
outcome measures after the fact.
2.7 Summary of education and training programs
Generally, evaluations in Canada are less numerous than in the United States, and many
of the interventions are heterogeneous. This makes it difficult to compare different
interventions and programs. Certainly, the initial evaluations of the Strategic Initiatives
tend to be more positive than the assessments emerging from the U.S. programs.
22 Grubb (1995) argues that the multiple-choice GED test is not the same as a high school education that involves
students writing essays, solving word-problems in math and performing chemistry experiments.
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In a mid-term process review of the Strategic Initiatives (SIs), the evaluator found that
rather than leading to weak performance, the use of community-based training in the form
of partnerships is a strength. Further, the evaluation concluded that subcontracting training
to community-based organizations and private trainers is a positive feature that allows the
programs to be tailored to community needs. The Evaluation of the Employability
Improvement Program (EIP) found that gains were greater under those obtained under the
Canadian Jobs Strategy (CJS). The latter relied on Consolidated Revenue Funds (CRF)
monies that focused on the long-term unemployed, youth and women entering or
re-entering the labour market. EIP clientele were older, more experienced and had more
years of formal education than CJS clientele. Other reasons for the success were program
design, client selection and matching client labour-market adjustment needs with
appropriate interventions. Therefore, the fact that the U.S. experience with the JTPA has
been negative should not lead to the conclusion that parallel Canadian programming is
similarly flawed.
However, the consensus of most evaluators is that mainstream education and training
programs have failed to offer the benefits many had hoped for. The most important finding
is that the better the basic education possessed by a person, the more likely that training
will allow him or her to move to economic independence. This leads directly to preventing
dropping out of high school as the pre-eminent labour-market strategy for dealing with
poverty. Longer-term programs that raise the basic academic qualification of those on
income assistance have the greatest potential for addressing their needs.
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3. Community Development as the basis
for an employment and
economic-development strategy
Many who seek to reverse economic disadvantage focus on community economic
development. This includes creating physical infrastructure and pursuing policies to
attract new business as well as fostering the growth of existing firms. Community
economic development operates on the demand side, creating employment opportunities
for those who are trained.
An important finding from the American literature on welfare-to-work policies is that they
are ineffective during a recession. Also, training economically disadvantaged people
requires a substantial investment to compensate for poor education and weak occupational
skills. Alternatively, the economy needs to generate more menial, lower-paid jobs. The
latter strategy is becoming less viable and, as U.S. research shows, leads to employment
instability.
For Aboriginal communities, it makes even less sense to push economic- and
labour-market-development programming without a parallel focus on job creation.
Training workers to seek work that does not exist or participate in low-level employment
risks perpetuating welfare use and joblessness. For Aboriginal communities, there is a
significant risk that this approach will lead to out-migration, community dissolution and
assimilation.
To begin this section of the document, let us review what is meant by the
term “community.”
3.1 Defining a community
The concept of community is at once simple and complex. Community may be defined as
“a network of social relations marked by mutuality and emotional bonds” (Bender, 1978).
Bender notes three elements that comprise the concept of a community:
• limited membership;
• restricted social space or network; and
• common values and sense of obligation to other members.
The core idea is intuitive. Communities consist of a delimited, although not necessarily
spatial, group with members who have a strong sense of loyalty and obligation to the
group.
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Non-urban Aboriginal communities are often characterized along tribal and band grounds
and usually identified within specific geographical areas. The term “reserve” is used to
legally identify villages and other small settlements, but it usually bears only the most
tenuous connection to the place where community members lived historically.
The term “Aboriginal community” also refers to Indians in general, or when used as the
“Aboriginal community in Winnipeg” to all Aboriginals living within the city, regardless
of their sense of obligation to each other. In this case, the community is often defined by
how mainstream society excludes it.
Most of the literature on community development refers to smaller towns and settlements
that have created enhanced economic welfare for their residents. This literature certainly
applies to the rural reserves of Canada. It is much more difficult to apply this theory to
urban dwelling Aboriginals, for whom economic development usually means a tight
connection with the mainstream economy.
Although common usage allows for communities to be defined without a spatial or
geographic area, this is not useful for Aboriginal communities. As we shall show,
self-governance and control over resources are essential for successful community
economic development. To achieve these goals necessitates a geographic delineation of
the community.
In his review of the Department of Regional Economic Expansion (DREE), McGee
(1992) uses a three-part classification to sort communities and their prospects:
• Unconnected communities are often oriented to a primary activity (mining, logging,
trapping, and so on) that is resource-based or where a single, large public employer
such as an airbase or regional hospital. These communities are vulnerable to global
prices and decisions made by remote governments. Increased connectedness to other
communities and global markets are important strategies for diversification.
• Networks of communities are collections of settlements that are able to exploit a
common-location advantage or some other basis for economic cooperation. These
communities are often close to a large city and operate within its “economic shadow.”
• Finally, urban centres account for the bulk of wealth generation in the modern
economy. Little doubt exists that Canada’s large cities compete with each other and
other cities in the world to attract and keep large employers.
Aboriginal communities fit into this framework with one important amendment:
• Isolated reserves and the Métis communities are scattered throughout Canada.
Typically, these communities are connected to the resource-extraction industry, or they
secure employment as part of a regional service centre.
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• Networks of Aboriginal communities are often collected into Tribal councils or may
form “collectives” to take advantage of opportunity. This approach is used in some
Community Futures programs (Kitayan CF23 has 10 Aboriginal communities).
• Urban Aboriginal (including Métis) communities are often comprised of many
sub-groups that have varying allegiances to home reserves and/or local groups.
• As a fourth group, the Inuit have recently negotiated a large territory that offers a
substantial basis for economic development.
While the concept of community need not have a spatial aspect, this is the most common
way planners conceive it. It is likely that the urban reserves emerging in some Canadian
cities will have geographic definition within the city. As we will also demonstrate, the
precondition for effective governance within Aboriginal communities will usually require
a spatial dimension to delimit authority.
Before dealing with community economic development, it is important to consider the
broader question of economic development and how various theorists view the ability of
governments to change the future. Specifically, is there a basis for being optimistic about
the future of remote and desperately poor Aboriginal communities or the large numbers
of Aboriginals in cities?
3.2 Relationship between regional and community
development
In mainstream theory, there is a hierarchy in development programming from country to
region to community. The conventional policy levers for national economic development
consist of taxation, interest rates, government spending and international trade.
Economists often view national economic growth as relatively immune from political,
legal and cultural institutions.24
At the regional level, political institutions are often acknowledged as more important, but
much of the literature still focuses on purely economic factors in development. Physical
infrastructure (roads, airports, waste water, and the like), tax policies and location
incentives for business are often cited as essential to regional development.
23 Kitayan Community Futures Development Corporation supports the economic development of 10 communities
in Northeast Manitoba: Garden Hill First Nation; God’s Lake Narrows First Nation; God’s Narrows Community
Council; God’s River First Nation; Island Lake Community Council; Oxford House First Nation; Red Sucker
Lake First Nation; Shamattawa First Nation; St. Theresa Point First Nation; and Wasagamack First Nation.
24 The recent collapse of the Asian currencies and the consequent recession has been largely attributed to political
mismanagement and weak financial institutions. The painful conversion of the Soviet Union to a market
economy also demonstrates how limited conventional economic theory can be. The work of D.C. North, a
recent recipient of the Nobel prize in economics, has re-established the critical importance of institutions in
economic development.
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At the community or local level, leadership and political institutions have a large role in
determining economic development. This role has been increasing as planners grapple
with previous policy failures in generating increased economic welfare.
An enduring feature of development literature is the need to resolve regional economic
disparity. This awareness is certainly the basis for Canadian efforts to redress regional
imbalances. Two polar views exist on regional and community development. As we show,
neither approach allows for proactive interventions to deal with economic disparities and
neither leads to constructive policies for Aboriginal leaders.
Perspective 1 — correction of regional disparity belongs to the market.
A cogent expression of this perspective is found in the writings of Tom Courchene, who
notes: “The failure over time to submit the provinces and regions to the discipline of the
market has exacerbated regional disparities and tended to rigidify our industrial structure”
(Courchene, 1981, p. 506).
Courchene is right to stress that ignoring the economic realities of producing any good or
service is sure to court failure. Control over some resources, unique products and services,
sensible taxation and spending are all important ingredients for regional growth.
Government policy cannot spread economic welfare evenly across the country like jam on
bread.
Melvin (1987) is not quite as accepting about the inevitability of regional economic
differences as Courchene but still believes that little can be done to alleviate these
disparities. He notes: “[Regional] Differences which have a structural genesis are typically
solved either through letting the market work, which generally implies labour mobility or
[accepting that]... for political reasons a region will require continuous subsidization”
(p. 315).
Under this view, the only rational community and regional development policy for poor
areas is to let the market operate and allow the settlement to withdraw to other richer areas.
According to this perspective, poor Aboriginal communities should be abandoned — a
view that most find unacceptable. This perspective also gives insufficient weight to the
political, legal and financial institutions needed to promote economic activity. Many
flourishing communities have overcome few resources and infrastructure deficits.
This view also reminds us that some minimal conditions make it easier to foster economic
development. While a group of 200 people might be able to create a viable economy in
the middle of Baffin Island, this is more likely to happen if the group settles on prime
farmland within a half hour of the Trans Canada Highway. Location and resources are
useful community assets.
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Perspective 2 — regional and community disparity is the result of exploitation of the
periphery by the centre.
According to this very Canadian view, regional disparity results from the exploitation of
the peripheral areas by the central cities. Everything is politics and remedies require
political solutions. As Matthews (1981) notes: “[economic] dependency is caused by the
systematic draining of capital and resources out of a region by other regions” (p. 280).
Proponents of this perspective advocate aggressive redistribution of economic power and
the creation of barriers to the transfer of wealth out of the community. At the root of this
disparity is the process of exploitation, which will change only with political revolution to
reverse the economic disparity.
This view identifies the critical role of political institutions in the development process.
However, it downplays the economic reality that location, transport costs and other forces
create centres of economic activity. These forces are surely changing in a global
information economy, but strong centres emerge because economies of scale are
intensified in the Internet world.25
Neither view offers much insight for Aboriginal development. Fortunately, between these
views exist a range of perspectives that admit many forms of response to regional and
community underdevelopment. In the last 20 years, the concepts of community
development have become more elaborate, with labour-market and human-resource
planning integrated within a range of business and institutional policies.
Canada has focused on regional disparity to a much greater extent than the United States.
This focus on regional balance began with confederation and the use of national economic
policy, the most important element of which was the construction of the national railway.
With the creation of the Department of Regional Economic Expansion in 1969, the federal
government dramatically increased its attention to correcting regional disparity and
regional development policy.
Another important difference exists between regional development policy in the United
States and Canada. Regional disparities in the United States do not provoke a national
response to move resources to the afflicted areas. Instead, those who are unemployed are
encouraged to move. In Canada, the “stay-option” embedded in national and provincial
policies suggests that government has an obligation to create regional policy to allow
people to live where they choose.
25 Some argue that the information age allows remote communities and small firms to compete on a level playing
field with large companies and global cities. It is more likely that the large lead possessed by Microsoft, IBM
and other information-age giants will grow. To feed these giants requires large supplies of highly trained
workers who are attracted by high pay and lifestyle amenities. Certainly, remote communities can become
“connected,” but this is only a necessary and not a sufficient condition for competing with the information
giants.
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3.3
Recent advances in community-development
techniques
The community development literature has recently identified key factors that appear to
be conditions for growth. What has impelled these developments is the observation that
many smaller communities have grown without being endowed with natural resources,
favorable location or investment by a single large employer.
3.3.1 Models of community development
Most communities of any size have some form of long-term development. Most cities of
any size also usually have a portion of a staff person’s time devoted to economic and
business development. For the most part, local economic-development strategies consist
of using tax incentives and other inducements to attract external firms. Other strategies
have started to evolve and broaden the community developer’s portfolio.
Isserman (1994) identifies three broad economic-development processes applied to
communities. Within each general orientation, the community uses specific techniques to
promote growth.
1. The “pursuit” model views economic development in terms of promoting the
community to attract business activity (boosterism). Many politicians routinely
participate in trade missions to promote their country, province and city.
2. The “attract” model uses various inducements to attract business. The theory goes like
this: If we subsidize business and adjust taxes to increase the profits, then new firms
will relocate and existing firms will expand, the result of which will be increased
employment. Most provinces, states, cities and towns are engaged in some form of
economic inducement to attract business to locate plants and bring jobs.
3. The “reinventing government” model is not often seen but is being used in some
centres to create new styles of government. Strategic partnerships and new forms of
governance are being used to simulate growth. Examples include the use of
performance measures to create “excellence” in government. As we shall show, some
Aboriginal communities have stressed excellence in financial management to dispel
previous poor images and create opportunities for increased business financing.
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TABLE 2
Orientations for Economic Development
Orientation
Chasing/Acquisition:
Community reaches out
to attract development
and employers to
relocate. This is the
conventional approach
to local economic
development.
Self-improvement:
Policies that make
a community more
attractive and
competitive.
Knowledge and
Information:
Technology applies
recent advances in
management theory to
local and community
development.
Activity
Comment
Marketing
Brochures, videos and other sales
promotions.
Prospecting
Contact with potential relocators.
Financial Incentives
Tax relief, grants, utility-rate reduction.
Enterprise Zones
Tax and other cost relief for specific
geographic areas.
Business Climate
Municipality adjusts quality of life
measures to increase its score on
standardized indexes.
Target Proposals
Large public-sector projects
(e.g., federal departments, airports,
processing centres), tourism,
retirees, etc.
Education/Training
Public, vocational and university
training to raise qualifications of the
workforce.
Technology
Government supported research and
development (often aligned with
university).
Technology Transfer
Programs to encourage companies
to adopt and adapt new technology.
Venture Capital
Investment programs (e.g., pooling
union funds, UI funds etc.).
Infrastructure
Physical upgrading, especially in
transportation, water, sewer, etc.
Community Institutions
Special project to channel funding
locally and raise capacity in sector
public-management.
Competitive Clusters
Growth aligned to exploit geographic
coincidence of resources and
facilities.
Flexible Networks
Networks of manufacturers created
to exploit economies of scale.
Performance Measures
Recently, communities have
developed benchmarking to raise the
level of public service and
communicate “professionalism”.
Reinventing Government
Emergent programs to create
innovative processes to stimulate
development — stresses
partnerships.
Source: Adapted from Isserman (1994)
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Teitz (1994) notes that more communities appear to be shifting to the second tier of
development strategy. He notes that rather than “an emphasis on attracting outside
investment in manufacturing, the new theory concentrates on enhancing a local
community’s ability to create and retain employment from within” (p. 101). However, he
also notes that this approach has yet to be proved, even though many
economic-development planners embrace the idea. According to Teitz, the old “attract”
and “pursuit” programs remain in place largely because the appeal of bringing in the big
plant is so high for local politicians. It requires a sustained process to secure increased
growth among local firms and to spawn viable start-up ventures that have a future.
The third tier of policy identified by Isserman reflects the increasingly widespread
adoption among city governments of a corporate planning model that might be termed the
“Harvard Business School” approach. This increased use of corporate planning techniques
stands in contrast to the “planning-as-if-people-mattered movement.” At its most
simplistic level, this literature calls for more empowerment and participatory approaches.
However, more sophisticated practitioners combine community empowerment with the
more corporate “reinventing government” approach cited by Isserman. As we shall see,
some Aboriginal communities have applied these approaches to their own development.
3.3.2 Public-sector employment as a regional economicdevelopment strategy
In the post-World War II era, the role of the public sector in managing the business cycle
became well accepted throughout academic and government circles. Even though the
1980s saw a major and largely successful challenge to the continued expansion of
government, some advocated the dispersion of government services to help regional
economies. In Canada, we have seen the relocation of taxation centres and even entire
departments to provinces.
Trainor (1993) argues that certain “mobile” public-sector activities can and should be
dispersed to help weaker regions. (Mobile refers to activities such as pension-cheque
preparation, income-tax-return verification, and so on.) These are largely self-contained
operations, and few have direct contact with the public. They can also be supported by a
network of communication.
In effect, a community that attracts a large government facility is no different in pursuing
that policy than when it seeks to attract a large plant. In a resource-rich community, the
attraction is for developing the mineral or some other resource. When communities have
a large supply of underemployed and unemployed workers, the “resources” being
extracted are the labour.
Where government is the employer, longer-term stability may be expected. However, care
is needed. Technology may change the basis for defining a mobile activity. For example,
a large centre that processes paper-based cheques would be vulnerable to technological
change that allowed all payments to be processed electronically. The large regional
taxation centres in Canada now employ less than one third of their previous peak labour
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force as a result of electronic filing. Government now has the difficult task of closing a
plant and provoking sharp regional decline.
For the same reason, a large private employer should be viewed as a mixed blessing; so
too should a large public-sector employer be viewed with some caution. While the
increased wealth arising from well-paid workers should be welcomed, the community
would be wise to maintain its economic development program.
3.3.3 Business policies that create employment
Business enhancement is a direct method for promoting growth in the labour market and
expanding employment opportunities. Business expansion also induces other business
growth through suppliers and service provision (transportation, Internet, storage,
accountancy, legal, and so on). The following are examples of policies that provide
valuable community-development programs.
• Policies that strengthen the business directly, either by offering help with the
employment process, increasing management skills or supporting investment in capital.
Canada Business Service Centres (CBSCs) are good examples of this informationbased advice. The Federal Business Development Bank (FBDB) also offers consulting
and financial assistance in the form of low-interest loans. Finally, the Community
Futures program offers a broad range of support to small business within a specific
community (see Section 3.4.2 below).
• Programs that combine business support with a clear employment development
spin-off.
— The Canada Student Connection Program (SCP) trains students in their second or
third year of university or college to help small and medium enterprises (SMEs)
get on-line. Students are typically hired by the business for up to three days and
receive basic training in Internet and e-mail techniques.
— The International Trade Personnel Program (ITPP) of Western Diversification
offers financial assistance to businesses wishing to develop an international
marketing program. Support ($37,500) is offered for up to three years to hire an
unemployed or underemployed recent graduate to execute the plan.
These are excellent examples of a policy designed to simultaneously benefit business and
train students for a business career. Both programs are well received by business and
students and graduates. Participating firms report that the subsidy has materially advanced
their marketing plans.26
26 This information is based on interim evaluations in process by Prairie Research Associates (PRA).
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3.3.4 Entrepreneurship and community economic
development
Entrepreneurship emerges in the community economic development literature in
two ways:
• First, entrepreneurship is often advocated as a basis for business creation and
community development.
• Second, usage of the term “entrepreneurial community” is applied to communities
exhibiting the traits of risk-taking, imagination and self-reliance that are the hallmarks
of the entrepreneur.
Entrepreneurship is advocated as a viable option for people displaced from work or the
economically disadvantaged. Many programs now include entrepreneurship training.
Little doubt exists that new businesses are important sources of community economic
development. Much of the service offered by the CBSCs and the FBDB is targeted to
prospective businesses. Also, and this is very important, many private-sector supports
exist to help the new business get started.27 These services are essential to ensuring that
those who wish to start a business are able to find the resources to increase their chances
of success.
A key distinction must be made between self-employment and entrepreneurship. Learning
a trade such as plumbing or hairstyling and then offering one’s services out of the home
is not entrepreneurship that leads to economic growth. Once that self-employed person
makes an investment sufficient to hire workers and additional equipment beyond personal
tools of the trade, then an entrepreneur has been born. The essence of the outcome from
entrepreneurial activity is that a “multiplier” effect occurs in terms of employment and
wealth-generation.
The salient features of entrepreneurs are that they can identify a business opportunity,
mobilize personal and other resources, and then create a business plan. More
fundamentally, the question is: Can entrepreneurship be taught or does it emerge as a
personality and intellectual trait?
Jackson and Rodkey (1994) examine this theme by asking how children acquire the desire
to become entrepreneurs. They found that parental support is a key factor in creating
entrepreneurial desire, and that this encouragement tends to be stronger for boys than girls.
Interestingly, they find that teachers and schools do not promote entrepreneurial behaviour
and tend to favour academic and professional careers.
27 Many consultants offer business planning. Increasingly, banks and financial institutions such as credit unions
are advertising that they are business-friendly. Many of the complaints that prospective business owners have
about banks are really due to their own inability to develop a business plan that will persuade investors to make
a commitment.
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Jackson and Rodkey show that parents and the school system have important influences
on how children and young adults acquire the attitudes needed to start a business. This is
the starting point of a business start-up. Certainly, constraints such as lack of capital and
information are barriers to the creation of a new business, but without the initial desire to
assume the risk and create the new venture, the start-up will never occur.
Lenzi (1996) has advanced the concept of community economic development by
identifying the confluence of factors responsible for a local economy to grow. In the
“Entrepreneurial Community Approach,” he identifies the following as the basis for this
type of development:
• A “comprehensive focus,” which means coordinating financial resources, improving
business efficiency and effectiveness, attracting new business, creating new business,
and attracting support from other levels of government.
Peterson (1990) captures this thought in his “total development paradigm,” which is
“based on the premise that everything is connected in the community — economic
base, physical infrastructure, and leadership infrastructure” (Peterson, 1990). As we
will show in Section 3.5, this perspective resonates with the case studies in Aboriginal
development.
• “Partnership between public and private entities” is often stressed in the
“Entrepreneurial Community Approach.” Lenzi cites the need to have broad
participation in planning and policy development as well as joint public-private
financing of projects. Communities that are able to lever private financing for
commercial services by using public funding for basic infrastructure (roads and sewers)
illustrate this principle in action.
• Although a broad base is needed, community development requires “targeted projects,”
according to Lenzi, and must produce increased wages or wealth. These targeted
projects are obtained through the chasing and acquisition activities identified by
Isserman and by concentrating on projects that “fit” with the community’s assets and
are the most likely to succeed.
Lenzi argues that targeting means only specific industries are actually
pursued — those that are aligned with community values and objectives.
He criticizes many local development programs for using a “shot-gun”
approach to attract any business that promises jobs, no matter how
incongruent that business might be with long-term plans.28
• Using an “entrepreneurial attitude” at the community level means financing, creativity
in defining opportunities and decisiveness in execution. As an example, he uses
Rock Hill, South Carolina, which promotes its spring flowers as a draw for over
28 An example would be a community that has decided to maximize its quality of life to attract science and hightechnology activities, which then allows an operation with significant pollution side-effects to locate there
without controlling these effects.
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300,000 visitors annually. Closer to home, Buffalo Point, an Aboriginal community in
Manitoba, has created a cottage resort, while the Tsawwassen band in B.C. has created
condominium developments adjacent to the Victoria-Vancouver ferry terminal.
• Finally, Lenzi borrows from the reinventing government literature and argues that the
entrepreneurial community measures results: “What gets measured gets done. The
simple act of defining measures is extremely enlightening to many organizations.
Typically, public agencies are not entirely clear about their goals or in fact are aiming
at the wrong goals.... Entrepreneurial organizations are learning organizations. Without
feedback on outcomes, innovation is impossible” (Osborne and Gabler, 1992).
In conclusion, Lenzi writes that “the Entrepreneurial Community approach calls for a
comprehensive outlook followed by focused action leading to measurable results.” This is
exactly what successful Aboriginal communities have done.
Other commentators have also elaborated on the entrepreneurial communities concept.
Deller (1993) acknowledges that “certain levels of physical infrastructure are necessary
for economic development and growth but its presence is not sufficient for it to occur”
(p. 3).
Rather, he isolates quality of community leadership as the most important factor in
development. He notes that stagnant communities are often marked by residents that fail
to adopt a collective-leadership model, preferring instead to allow a council or small
coterie to act as community leader. Growing communities seem to have a broad base of
diversified leadership with many residents leading specific aspects of the community’s
welfare. “Involvement in the development process, and indeed all community activities,”
he says, “must be as widespread across the community as possible” (p. 7).
Deller also identifies the nature of business leadership (i.e., entrepreneurship) as
consisting of factors such as independence, self-confidence, optimism, innovation and
self-starting. He notes that: “where it is through entrepreneurship that an economy adjusts
to change, it is through leadership that a community can adjust to change.”
He identifies three attributes of entrepreneurial social structure that are essential to
effective community development:
• Diversity — the community can depersonalize politics, and personal disagreements are
set aside for the common good. Small community politics are often incestuous, which
can be detrimental to entrepreneurship.
• Resource mobilization — the community is willing to make the sacrifices needed to
invest. Imposing taxes on themselves and mobilizing individual savings are examples
of the focused discipline needed to counteract the fiscal restraint of the recent past.
More important is that funds raised within the community are likely to be spent with
more due diligence than grants awarded by government.
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• Network capacity — creation of commercial, financial and intelligence networks that
allow the community to process the information to make strategic decisions. This
means knowing when to contract with external consultants and when to develop the
talent within the community.
The importance of community leadership is apparent in most studies of regional economic
development. McKee et al. (1997) identified three main variables in successful
community economic development:
• Economic development leadership — the most important factor, refers to the realistic
appraisal of opportunity, awareness of the competition (other communities), use of
information, openness to external expertise and self-reliance. Local leadership is the
key ingredient to successful community economic development.
• Community spirit — encompasses concepts such as community pride, focus on quality,
readiness to invest, participatory decision-making and cooperation. These attributes
capture the willingness of the community to unite around a common goal.
• Focus on growth industries — reflects the ability of the community’s leaders to identify
business activities that have growth potential. This leads to the creation of unique
activity that allows a community to develop products without competing in existing
markets.29
The mainstream community economic-development literature has clearly identified
leadership as a critical element. Certainly, location and natural resources help, but the only
necessary precondition for local economic development is community leadership.
In the next section, we review federal regional development policies as a context for the
Community Futures program and the Canadian Aboriginal Economic Development
Strategy (CAEDS). From there, we proceed to a detailed review of Aboriginal
development in Canada and the United States that confirms these lessons as fundamental.
3.3.5 Networks and community economic development
Formal labour markets present two main paths for job seekers: job postings in print and,
more recently, on the Internet, and firms that specialize in placement. Government policy
has identified efficiency in the formal labour market as one method to enhance
employability.
Less well recognized, at least from a policy perspective, are the informal networks
through which many secure employment. Harrison and Weiss (1998) have identified the
“intersecting social and business networks” that are responsible for much of the hiring in
any economy. We all are aware that “it’s not what you know, but who you know” that
often results in finding work.
29 A basic truism of business is that the first business can dominate all others. To copy activities rarely results in
the same level of income as to develop a unique product. Being the third, fifth or tenth community to offer
fly-in fishing means competing against the other communities that got there first.
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These authors note that the analysis of informal networks is very much undeveloped. They
make the following points:
• Job seekers from impoverished communities who have low skills have weak contacts
with prospective employers because their social networks do not “intersect” with
business.
• Having strong ties to these networks is important for two reasons:
— A wide range of acquaintances is an asset for the job seeker. Job-seeking success
depends on knowing many potential employers. Youth in poor areas or smaller
communities have few strong ties, none of which are connected to a potential job.
— A second key feature of networks is referrals from existing employees. Job seekers
with many friends and acquaintances who are working are likely to be able to find
potential job openings.
From this perspective, drawing employers closer to the training process is critical to
increasing success for job seekers. Using case studies from several small communities and
development programs in urban neighborhoods, Harrison and Weiss conclude: “Our
strongest finding is the central importance to a community based organization of
becoming an ongoing, trusted part of the recruiting and training networks of a region’s
employer” (p. 150).
3.4 A review of federal policy for regional and
community development in Canada
There are important lessons to be learned for Aboriginal economic development by
examining Canada’s record of regional economic development. Of particular importance
is the role of federal-provincial and interdepartmental agreements, which offer insights for
the use of Regional Bilateral Agreements. The following section provides a general
overview of regional and community development at the federal level over the last two
decades. Compared to the education and training interventions reviewed earlier, fewer
evaluations are available on the effectiveness of these initiatives.30
3.4.1 Department of Regional Economic Expansion (DREE)
A three-decade consensus has existed at the federal level on the objectives of regional
development. Disparities in economic welfare and social services are widely seen as
inimical to nation-building. Removing disparities can be accomplished partially through
transfers from the federal government to provinces that have personal per capita incomes
below some norm. Another policy that has been pursued by the federal government is
regional development programming.
30 Bartik (1994) notes that “better evaluation is essential if economic development is to play a major role in the
economy.” He also argues that evaluation that compares the effectiveness of various regional and communitydevelopment techniques should be as common as the studies of the effectiveness of education and training.
Better evaluation is needed for economic-development programs to thrive. (Economic Development Quarterly,
vol. 8: 99-106).
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The Constitution states the federal government has a national objective of furthering
economic development to reduce disparity.31 Before this, the federal government created
the Department of Regional Economic Expansion in 1969 and sharply focused its
approach to dealing with regions. Specifically, one department took the lead for all federal
programming.
DREE created several important features in regional development programming:
• As a “horizontal”32 department, DREE cut across the federal government. It could
clarify regional planning by acting alone or by defining initiatives in cooperation with
other departments.
• McGee (1992) ascribes three operational modes to DREE:
— First, it developed completely unique programs to meet specific regional needs.
— Second, it partnered with other departments.
— Third, it created federal-provincial agreements that may be seen as precursors to
all other development agreements, including the current bilateral agreements
between Human Resources Development Canada and Aboriginal organizations.
McGee also argues that the approach used by DREE in the federal-provincial agreements
proved successful since most subsequent regional development programs have replicated
it.33 As well as using the federal-provincial agreement approach, DREE also focused on
specific investments to encourage regional economic growth, including:
•
•
•
•
•
•
•
infrastructure, especially transportation (airports, marine services, and so on);
natural resources including energy;
tourism;
industrial and business development including technology;
urban development;
education and skills development including management skills for small firms; and
community development.
Of particular interest is the community-development programming articulated through
several DREE initiatives. For example, in 1972-73 the department focused research on
local community development, entrepreneurship and telecommunications and computer
31 Disparity in a regional and community context refers to differences in income, employment/unemployment,
health, education and social resources. Economic measures of welfare must be balanced with non-economic
measures such as a country as opposed to an urban lifestyle. The essence of the concept is economic
independence and self-sufficiency. The core notion is that Canadians everywhere should have the opportunity
to attain economic independence.
32 The Standing Committee on National Finance used the term “horizontal” in 1982 to describe the uniqueness of
DREE.
33 The most recent example was the infrastructure agreements.
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equipment. As a result, community-development and regional planners understood that
single-industry towns dependent on extracting resources such as minerals or forest
products were both increasingly non-viable and undesirable. From their perspective, true
regional development was not compatible with the instability inherent in
natural-resource extraction.34
DREE’s analysis focused on the need to create local infrastructure in its broadest sense.
More than roads and sewers, infrastructure included the local business and community
decision-making to “create the many small-scale, linked activities” so needed in building
a viable and stable local economy.35 This is a critical perspective. Although it is true that
investment in physical structures is beneficial, creating the institutions to support
development has proved to be more important.
In 1982, the federal government reversed its policy and disbanded DREE, arguing that
regional development had to become the interest of all departments. Analysts have
advanced many reasons for the demise of DREE. None are relevant to the discussion here.
It is only necessary to say that the focus on regional and community development
supported by having a single federal department has not been replicated.
With the cessation of DREE, initiatives to promote regional development shifted to
specific departments. Community Futures, one of the more significant communitydevelopment programs of the federal government, started in Employment and
Immigration Canada (EIC) and was then transferred to the regional development
agencies.
McGee (1993) states that key insights have flowed from DREE’s experience in regional
development. They include the following:
• Local leadership is essential in the form of business and community leaders as well as
industry associations willing to take the lead in promoting growth.
• The degree of delegated authority must be proportional to the capacity of the
community. Community structures must be capable of managing the programming
offered by senior levels of government.
• Momentum exists in regional development — in other words, success breeds success.
Similarly, stagnation creates inertia that is difficult to overcome.
• Communities with few resources or location advantages have not done well.
34 This perspective is found throughout the regional- and community-development literature. Planners understand
that the price instability of resources creates an uncertain future for communities based on this sector. Indeed,
the recent history of Canadian industrial development have been its diversification away from resource
extraction to industry and, more recently, high-tech services such as telecommunications. The application of the
Heritage Fund to diversify the Alberta economy is an example at the provincial level.
35 This apt phrase is from McGee (1992) p. 106.
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McGee also argues that federal departments in the post-DREE era must develop an
enhanced capacity to cooperate. He notes that all too often, “the objective of executing
sensible development initiatives is overshadowed by the objective of spending public
monies.”
At this point, it is unclear whether the three regional development agencies offer the same
leverage for regional and community development as did DREE. It is premature to
express an opinion about the effectiveness of Western Economic Diversification Canada
(WD) in the west, FORD-Q in Quebec and the Atlantic Canada Opportunities Agency
(ACOA) in promoting community development. For example, WD no longer makes
direct loans to business. It now administers a number of small grants programs to
businesses, some 88 Community Futures Programs, four Women’s Enterprise Centres and
four Canada Business Service Centres. The net impact of these activities on the
development of the West and its communities has yet to be evaluated.
3.4.2 Community Futures and community development
Community Futures started as one of several local development initiatives in EIC during
the early eighties. A Community Futures Corporation (CFC) is an independent, non-profit
board of local representatives. It concentrates on helping communities develop and
implement long-term community strategic plans leading to the development and
diversification of the local economy. It also supports business counseling services and
investment in small businesses in selected communities. Originally, the program focused
on helping communities overcome job loss through displacement or relocation of a public
facility. Its mandate has evolved considerably since then. Now CFCs help local business
diversify, thereby stabilizing the employment base for the community. A key element of
the support it offers is loans administered by a local board. It also offers advice and
facilitates access to other programs.
Early in the program, a key challenge for the CFCs was coordinating their activities with
provincial and municipal development organizations, all of which were intent on securing
employment and business growth within the community. Provinces that had a highly
regionalized system for delivering business (such as Saskatchewan) found they had an
abundance of policy infrastructure when they included all federal, provincial and
municipal programs.
The Community Futures initiative has continued to flourish and has shown remarkable
resilience. It can be used by a single isolated community or a neighborhood in a city. It
can also be used to help a cluster of communities and is open to Aboriginal and nonAboriginal communities alike.
An evaluation completed in 1989-90 found that it was too early to attribute any tangible
economic benefits to the program. Aside from the expected benefits being long term and
difficult to measure, the 1989-91 recession overrode any measurable benefits that may
have accrued.
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Other evaluation findings were that the program failed to distinguish between economicdevelopment and adjustment-assistance measures. The CF communities also showed
weaknesses at long-term strategic planning due to insufficient guidance. In addition, the
study found that both the Purchase of Training and Relocation/Exploratory Assistance
Options had failed Aboriginals. Information on the length of the clientele’s employment
was unavailable at the time of the evaluation. The federal government has not evaluated
the contribution of the Community Futures Program since 1989-90 and little is known
about its net impact or value-for-money.
3.4.3 Canadian Aboriginal Economic Development
Strategy (CAEDS)
CAEDS started in 1989 as a joint responsibility of the Department of Indian Affairs and
Northern Development (DIAND), Employment and Immigration (EI)36 and Industry
Science and Technology (IST). Its purpose was “to address economic disparities between
Aboriginal peoples and other Canadians.”37 Other departments had a role in the strategy
but had no direct accountability: DIAND took the lead for community economic and
resource development; EIC focused on skills development; and IST concentrated on
business development. Outcomes expected from CAEDS programs included increased
employment for Aboriginal people, a wider business base, enhanced entrepreneurial skills,
decreased dependency on social welfare, and increased capacity for Aboriginal
communities to manage their own affairs.
DIAND focused on community economic development
• DIAND used the Community Economic Development Program as its centrepiece and
focused its activities on:
—
—
—
—
developing community economic strategies;
initiating business and resource developments;
financial participation (equity) in private and community firms; and
supporting job training.
• Other strands of DIAND’s CAEDS strategy consisted of a Commercial Development
Program, a Resources Access Negotiations Program and a Regional
Opportunities Program.38
• It also jointly shared responsibility for research and advocacy with EIC and IST.
36 EIC and, later, Human Resources Development Canada never signed the agreement and operated its
component, Pathways for Success, more or less independently of CAEDS.
37 Report of the Auditor General of Canada, 1995, p. 281.
38 The Regional Opportunities Program was cut midway through the five-year strategy, after which DIAND
focused mainly on community economic development organizations (CAEDS).
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EIC focused on skills development39
• The key program for EIC is called “Pathways to Success” or just “Pathways.”
• This program operates as a partnership between EIC and Aboriginal groups. It allows
communities to have a significant role in decision-making through the creation of local
Aboriginal management boards. These boards (some 86 of 110 planned were created)
operated in conjunction with Canada Employment Centres to identify, design and
deliver training.
IST focused on business development
• The Aboriginal Business Development and Joint Venture Program offered financial and
developmental assistance to create new businesses and expand existing operations.
Using external delivery organizations, the department hoped to extend its limited
capacity for program delivery to Aboriginal organizations.
• Aboriginal Capital Corporations receive funding for loans to Aboriginal businesses.
Evaluations of CAEDS noted a range of structural improvements such as increased
involvement by Aboriginal organizations and increases in their capacity to deliver
programs. However, data deficiencies precluded measuring impacts on employability,
actual employment impacts or social-welfare dependency.
39 EIC and, later, Human Resources Development Canada never signed the joint CAEDS agreement, and the
department prefers to view Pathways separately from CAEDS. The Auditor-General treats the three
components as comprising CAEDS.
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TABLE 3
Summary of Lessons Learned from CAEDS
DIAND Component
EIC Component (Pathways)
IST Component
Interdepartmental coordination
well remains weak, reducing
the effectiveness of the
overall strategy.
The program increased
Clients rated program delivery
awareness of issues and the but wanted speedier decision
amount of training related
making and more industry data.
to Aboriginal peoples.
Variation exists in the
effectiveness of Community
Economic Development
Organizations.
The program is an
improvement in the
training available.
Lending to larger band-owned
corporations may not have been
as effective as concentrating on
businesses owned individually.
Band leadership, especially
its business orientation,
training and leaders, is the
key to success.
Participation by Aboriginals
increased.
Program support has resulted in
Aboriginal businesses accessing
other conventional sources
of financing.
Quantified impacts are lacking.
No information is available on
expected program impacts
such as increases in
employment and income,
increased diversification
of business and economic
base, and lessening of social
problems associated
with welfare dependency. Data
produced by the program
precluded any measurement
of impacts.
Measuring the impact of
job-holding is difficult
because of the 1991
recession. Typically the
recession resulted
reduced training impact
(percentage of a training
group that is either
employed on in further
training).40
Direct financial assistance to
Aboriginal business has resulted
in the creation of jobs, increased
community wealth and reduced
dependency on social welfare.
Overall, participating
communities have increased
their capacity to initiate and
manage economic
development.
The program helped create
an entrepreneurial class.
External delivery organizations
proved to be effective.
40 The 1994 evaluation suggests that Aboriginal impact rates were better than non-Aboriginal rates through the
1988-92 period, but this may be a misreading of the data. The impact rates for non-Aboriginals actually fell less
than those of Aboriginals. In any event, given the unreliability of the data and the fact that impact rates measure
such a short-term effect, the only thing that can be concluded about the Pathways program is that its net
employment results remain to be proved.
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Programs that attempted to work on the “supply side” by increasing the training and skills
of Aboriginals had little measurable impact on the economic welfare of such communities
or persons. In large measure, this may have been the result of the 1990-91 recession that
increased unemployment generally.
On the other hand, direct lending through the Aboriginal Capital Corporations appears to
have had an impact on employment. Most important for the longer term, is that these
programs appear to have supported the creation of an entrepreneurial class within
Aboriginal communities. It is essential to stress that the data quality remains poor, and
many of the outcomes are not strongly quantified.
One result from CAEDS is that the Industry Canada component appears to have been
relatively more successful than the other initiatives. The focus on business development
and the financing of new ventures seems to have had important benefits for selected
Aboriginal communities. However, this apparent success may be the result of a few
communities effectively using the business-development programming. The objectives
for the DIAND and HRDC components of CAEDS are longer-term, more diffuse, and do
not show relatively quick returns.
3.4.4 Regional Bilateral Agreements
The Pathways for Success program increased the role of Aboriginal leaders, organizations
and communities in decision-making related to design and management of their own
training and employment-development programs. Increasing the capacity of Aboriginal
communities and organizations to design and deliver their own programs (part of what is
termed “capacity-building”) is intended to make these initiatives more relevant,
responsive and ultimately more effective.
With the expiry of Pathways, HRDC initiated regional bilateral agreements (RBAs) with
individual First Nations, Inuit and Métis communities. Included in these agreements are
Aboriginal Flexible Funding Arrangements (AFFA) designed to enhance the ability to
allocate financial resources in response to need.
The RBAs are based on four principles:
1. building the capacity of Aboriginal (including Métis and Inuit) organizations to design
and deliver training programs;
2. increasing access to training programs through increased outreach;
3. devolving federal responsibilities for training (similar to mainstream programs
devolving to provinces); and
4. reducing use of income assistance by improving the targeting of training to job
availability.
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Several interim evaluations have been completed. An evaluation of impact in a
conventional sense, such as whether these agreements are materially changing conditions
within signatory communities, is premature. Several of the interim reviews do call for
increased attention to measuring the impacts of the spending in terms of training and
employment effects.
Overall, the RBAs are well received by the communities and the clients served. Much of
the training is purchased from training suppliers, but none of the evaluations have
examined the quality of this training. In some cases, clients attend accredited
post-secondary and vocation schools. In other cases, they attend courses offered by private
contractors.41 Although mid-term evaluations of the RBA reveal that clients are satisfied
with training initiatives, few details are available on the effectiveness of these training
contracts or performance measures — an important issue in light of the most recent
findings from the U.S. experiences.
Most of the evaluations of the RBAs focus on the development of capacity. At this point,
these agreements appear to be performing as intended. Most participants report that
various Aboriginal signatories and affiliated organizations are improving their abilities to
design and deliver training programs.
The RBAs have two very noteworthy features:
• First, no mechanism exists to maintain the business-development aspect of CAEDS
delivered by Industry Canada. These agreements are not focusing on entrepreneurial
and business development.
• Second, capacity-building is limited to the design and delivery of training programs.
While these are important, a wider skill set is needed for community economic
development (as is shown in the case studies below).
3.4.5 Summary of regional development programming
Several key insights emerge from the regional development experience in Canada:
• To produce economic activity within a current level of technology and consumer
demand requires a minimum level of resources, access to markets, and physical
infrastructure.
• Community and entrepreneurial leadership is vital to creating local economic activity.
Such leadership can overcome many deficits in resources and infrastructure.
41 In the case of the RBA with First Nations of Saskatchewan, the Saskatchewan Indian Institute of Technology
has a partnership with the Saskatchewan Institute of Applied Science and Technology.
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• Direct lending to businesses can be an important supplement to existing financing and
often leads to recipients expanding their financing. Also, support for individual
entrepreneurs appears to be more effective than supporting band-owned companies. We
will explore reasons for this later in this section.
• Recent developments such as the Regional Bilateral Agreements appear to be creating
additional capacity, albeit in the specific area of managing training.
3.5 Selected examples of Aboriginal economic
development
In this section, we present several cases of successful Aboriginal community development
from the United States and Canada. Viewed together, they highlight several core lessons
on what is needed to support community economic development.
3.5.1 Examples from the United States
The following illustrations of Aboriginal42 economic development in the United States
demonstrate the importance of community leadership is in this context.
The Navajo — Disenfranchisement, recovery and stagnation
It is a mystery that the Navajo, recipients of significant public spending and richly
endowed with natural resources, should have experienced dismal economic welfare
throughout the twentieth century. After surrendering in 1864, the Navajo entered an
unsettled period of confinement in a tiny reserve, where they were engaged in frequent
conflict with the federal government. In 1868, they signed a treaty with the U.S.
government and, in exchange for relinquishing a lifestyle of raiding, received substantial
acreage and livestock.
They lived and prospered until the 1920s, when their expanding population (people and
livestock) created pressure on their resources. Between 1934 and 1940, the federal
government implemented a livestock-reduction program to cope with overgrazing. This
produced severe economic dislocation and, in turn, a deep suspicion of all public support
programs. Ruffing (1978) states that:
The fault can be laid to federal planners who failed to see that sheep were
a way of life for the Navajos. Reduction of sheep meant abandoning old
ways and values; it meant a cultural transformation as well as an economic
one. Because the federal government did not offer viable economic
activities, one could hardly expect the Navajo to scuttle both the traditional
economy and their culture (p. 17).
42 The United States literature refers to “Indian” as opposed to Aboriginal.
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Ruffing points to a series of barriers to economic development faced by the Navajo:
• They lacked control over resources. At the time of this research (20 years ago) the
Bureau of Indian Affairs was reported to favour leasing Indian resources (land, mineral
rights and so on) to non-Indians. It apparently believed that the Navajo “lack[ed] the
skill and capital to properly develop their resources” (p. 31). Ruffing also argues that
these leases were typically poorly drafted, resulting in lowered returns to the Navajo.
• Lack of capital prevented the Navajo from creating viable businesses to exploit their
resources.
• Lack of managerial skills led to an inability to professionally manage tribal resources.
• Lack of commercial infrastructure in the form of retail and business services created
leakages away from the community.
• Conflict existed between the modern Navajo bureaucracy and traditional philosophies.
Ruffing offers several examples where conflict within the decision-making councils
seriously compromised development. In particular, conflict had arisen between Indian
entrepreneurs wishing to pursue standard capitalist-oriented businesses and the council
who were interested in supporting more cooperative ventures. These conflicts were
eventually resolved by recasting the issue in terms of traditional Navajo values in which
the royalties from developing Indian-owned resources were shared among all
community members.
Ruffing argues that economic development was limited by the Navajos’ lack of ownership
over their own resources. The conflict to be resolved was that while most Navajo probably
preferred a traditional social structure, they could not maintain this lifestyle. The
traditional economy was not viable. However, economic models based on tribal resourcebased activities are preferred, such as labour-intensive-investments.
The Lummi
The experience of the Lummi is similar to that of the Navajo. After signing a treaty, the
federal government allotted them land, but continued expansion by non-Indian
development progressively encroached on their settlements. As Deloria (1978) notes, the
success of the Lummi resulted from a combination of historical accident and astute tribal
leadership.
• In the early 1900s, the Lummi won a 5,000-acre tract of tidewater land in a lawsuit in
the face of determined pressure from surrounding businessmen who believed the
Indians should be dispossessed of their land and compensated with financial securities
(stocks and bonds). Years later, these tidewaters became the basis for an innovative
aquaculture project.
• The Lummi enjoyed benign neglect in that they were never large enough or owned
enough property to be real objects of control by the Bureau of Indian Affairs.
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• Federal bureaucrats never understood the tribe or its culture and tended to dismiss their
values and “style” of operation. When the Lummi coalesced politically, they took the
federal government “off guard.”
A key asset that the Lummi maintained was close relationship to the sea. Whenever
possible, they fished. While the Bureau of Indian Affairs offered various forms of
economic activity, the Lummi did not respond until they were offered aquaculture, an
activity that was completely compatible with their heritage. A key insight from this
“success” is that the eventual path to economic independence aligns completely with the
heritage of the Lummi.
Recent success stories from the United States
Cornell and Kalt (1992) have offered important insights into the basis of Aboriginal
economic development in the United States. Recently, Cornell (1997) noted that many
believe recent favourable Indian economic development in the United States is due to
gambling.43 While this is true for some bands, many reserves have experienced significant
economic development without relying on gaming.
• The Mississippi Choctaws have become one of the largest employers in the state by
creating a manufacturing and service centre. They are important state employers of
many non-Indians because their enterprises require more labour than can be supplied
by the reserve.
• The White Mountain Apaches in Arizona have created a highly efficient timber
operation, which, coupled with their recreational activities, acts as a major anchor for
the state.
• In Montana, the Salish and Kootenai tribes of the Flathead reserve use tourism,
agriculture and retail services to produce a lower unemployment level than the rest of
the state. The community college created by the Flathead is attended by many nonAboriginals because of its quality.
• In New Mexico, the Cochiti Pueblo have one of the lowest unemployment rates of
western tribes and run one of the top public golf courses in the country.
These cases are remarkable for the range of economic activity used by Aboriginals. They
all demonstrate a key feature in the success of Aboriginal economic development.
43 A significant difference between Aboriginals in the United States and Canada is that in the United States the
federal government has allowed various tribal councils to organize and manage casinos. Little doubt exists that
these casinos have generated significant wealth and are often important employers of non-Aboriginals.
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3.5.2 The failure and success of U.S. policy for community
Aboriginal development
Stanley (1978) argues that the basic mistake in U.S. policy toward Aboriginals is that it
has treated them as if they all have the same culture and values. In fact, as the case studies
show, each community has tried to deal with economic development in the context of its
own history and values. Stanley identifies factors that most Aboriginal tribes in the United
States have experienced:
• a military defeat or other form of coercion;
• the need to cope with severe change in their traditional relationship to the environment
and to give up a functioning economic system;
• a new political system imposed by the external power and the need to deal with
bureaucracies;
• the loss of land rights;
• severe dislocation and the imposition of foreign forms of social and political
decision-making; and
• an external community that demanded they abandon their values and have their
children educated in another culture, often away from their homes.
The key lesson offered by the case studies is that economic development for Aboriginals
must occur within their own cultural and political framework. Further, the term
“American Indian” includes many cultures and languages, often as different as German
and Chinese. Awareness of this fact alone shows the importance of allowing each Indian
population to define its own economic future. Generic models are likely to fail.
Stanley cautions that band leadership expects to do everything, from the lowest-level job
to highly skilled professional employment. As bands pass through this stage, they realize
that “they would benefit from their resources more by managing them as the Middle
Easterners are doing with their oil.... it might be more beneficial to the tribe if they were
the “board of directors” and hired external technical experts to develop their
resources” (p. 586).
3.6 Aboriginal community and economic
development in Canada: the past 25 years
During the late 1960s and 1970s, Aboriginal communities used many mainstream
programs such as EIC’s Local Initiatives Program (LIP) and the Local Employment
Assistance Program (LEAP). While HRDC had only one Aboriginal-specific program
until Pathways to Success (Native Internship Program, 1977), DIAND and IC
(formerly ISTC and DRIE) introduced numerous initiatives. Two problems confronted us
in reviewing these programs:
• Most programs have been reviewed at the micro level, and most evaluations focus on
effectiveness in terms of operation and outputs such as number of projects, participants,
businesses and loans. The evaluations did identify factors such as management skills
and infrastructure as being important.
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• Aboriginal economic development programs (like their mainstream counterparts) have
been continually modified, changed or amalgamated. This has made it impossible to
assess results, especially on a long-term basis. For example, ISTC’s Native
Employment Development and Business Development Programs became the
Aboriginal Business Development Program (under CAEDS) and later Aboriginal
Business Canada. Another example is the Indian Community Human Resources
Strategy (ICHRS). Introduced in 1985, the evaluation suggests this initiative was
similar to the CJS and may have duplicated activities. ICHRS became the Community
Economic Development Program (under CAEDS) with a much more streamlined and
narrow focus on community economic development organizations (CEDOs).
3.6.1 Summary of Canadian Aboriginal programming
Table 4 summarizes the history of Aboriginal economic development policies and
programs in Canada.
In terms of provincial economic-development policies, we identified few programs. Two
reports created inventories of these programs in 1996 (Blauer Consulting) and 1997
(Prairie Research Associates). A key insight is that information on existing sources
(e.g., provincial expenditure estimates, public accounts, and so on) is inconsistent and
grossly inadequate (Blauer, 1996).
TABLE 4
Overview of selected federal Aboriginal economic development
initiatives in Canada from the 1970s to the 1990s
Program/Initiative
Year
Description
1970
Commercial financing of last
resort for Indians
on — reserve. There is also
a separate Eskimo Loan
Fund and the Indian Loan
Guarantee Program.
Northern Affairs On-the-job DIAND
Training Program
(Northern Affairs)
1973
Vocational training and paid
allowances for trainees.
Oil Sands Economic
Development
Corporation and Indian
Equity Foundation
DIAND
1976
Institutions that entered into
an agreement with Syncrude
(resource development) and
later become the Indian
Business Development
Services (1983).
Special Agricultural and
Rural Development
Agreements
Department of Regional
Economic Expansion
(DREE)
1970s
Commercial development,
infrastructure development
and structural adjustment
measures (SAMs).
Indian Economic
Development Fund
Agency/Department
DIAND
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TABLE 4 (continued)
Overview of selected federal Aboriginal economic development
initiatives in Canada from the 1970s to the 1990s
Program/Initiative
52
Agency/Department
Year
Description
Saskatchewan Indian
Agricultural Program
(SIAP) Manitoba Indian
Agricultural Program
(MIAP)
DIAND
early
1980s
Community initiatives that
allowed First Nations to
develop their agricultural
resources and Sectoral
Development Institutions.
Later, they were also funded
under CAEDS Regional
Opportunities Program
(ROP), which was
eliminated.
Native Economic
Development Program
Department of Regional
Industrial Expansion
(DRIE)
1983
Included $345M for
institutions,business activity
and entrepreneurship
development; it expired in
1989 and become the
Aboriginal Business
Development Program.
Economic Development
Agreements in the NWT
and Yukon
DIAND (Northern Affairs) 1980s to
mid1990s
Three 5-year agreements
signed with the territories
included several
components such as tourism,
renewable resources, mining,
arts and crafts, community
enterprises, and so on.
Indian Community
Human Resources
Strategy (ICHRS)
DIAND
1985 to
1989
Predecessor to CAEDS
Community Economic
Development Program;
it provided support to Indian
and Inuit communities
through training and
employment initiatives.
Canadian Aboriginal
Economic Development
Strategy (CAEDS)
DIAND, ISTC, EIC
1989 to
1996
CAEDS attempted to bring
federal Aboriginal
programming in the areas
of community development
(DIAND), business
development (ISTC), and
training and employment
(EIC).
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TABLE 4 (continued)
Overview of selected federal Aboriginal economic development
initiatives in Canada from the 1970s to the 1990s
Program/Initiative
Agency/Department
Post-CAEDS Programming DIAND
(excluding HRDC
IC
initiatives):
•
Community Economic
Development Program
•
Aboriginal Business
Canada
Year
1996 to
present
Description
DIAND and IC programming
has been cut since CAEDS
ended. Since then, officials
have discussed a renewed
initiative, but this did not
materialize. Instead, the
federal government has
encouraged the private
sector and lending
institutions to partner with
Aboriginal communities. One
such initiative is the
Procurement Strategy for
Aboriginal Business.
Regional development
agencies are also more
involved.
3.6.2 Examples of successful Aboriginal development from
Canada
The following success stories were obtained from best practices, evaluation studies and
other anecdotal information over the past few years. We have not followed up to verify or
assess the recent success of these initiatives.
Skidgate, B.C.
With a small land base, Skidgate’s economic base is historically related to the commercial
fishery, logging and tourism (Queen Charlotte Museum). Commercial services, a canning
operation and quarry also offered employment but at a low level. Its population has
expanded to over 500 (up from about 275) as a result of Bill C-31.44
In 1991, the band council created Gwaalgaa Naay Development Corporation to manage
economic-development activities. The purpose of this corporation with its independent
board is to guide “the development of the economy of Skidgate towards achieving and
maintaining economic self-sufficiency, with a focus on generating revenue for community
development and employment for the people of Skidgate.”
44 Bill C-31 returned registered Indian status to many who had been previously disenfranchised.
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Important business activities include:
• a commercial centre (retail and office) that features equity participation from private
banks, investment funds, government programs and the band’s equity;
• the purchase of Crown land to expand the reserve to accommodate the increase in
population; and
• a new school and medical services that involve joint ventures with off-reserve
organizations.
Key features that led to the expanded economic development include a progressive
council, an independent economic-development corporation, community consultation and
consensus-building, access to other programs (and funds) and effective use of funding
arrangements.
Mikisew, Alberta
With a population that expanded by 500 persons to 1,700, this community on the banks
of the Athabaska River supports a commercial fishery and canning operation that has
slowed due to pollution. Habitats have been disturbed by water-level variations
attributable to hydro dams up stream. Tourism is also a source of revenue.
Specific development projects have included:
• a multiplex that supports the operations of two bands and offers rental space for
provincial offices;
• Kenyo College Campus;
• an independent economic-development corporation that has supported a growing
number of commercial ventures;
• a workforce agreement with Syncrude and 2,000 Plus that has generated high-income
jobs for the community; and
• Fort Chipewyan Lodge.
The success factors are similar to Skidgate — namely, progressive political leadership and
an independent economic entity. Another factor has been the willingness of major oil
companies to form progressive workforce arrangements. In addition, the band elected to
have the financial proceeds from its land-claim settlement managed within a conventional
financial institution rather than the consolidated revenue fund of the band, again an
example of progressive leadership.
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Saskatoon Tribal Council
What makes this case unique is that it is the first attempt in Canada to create an urban
reserve. Including some six bands scattered throughout west-central Saskatchewan, the
land-claims process culminated in the extension of the Muskeg Lake First Nation rights
within the corporate boundaries of Saskatoon. The existing reserve was 100 miles to the
north.
Major economic developments include:
• a centre for commercial and retail operations; and
• joint ventures in the city with non-Aboriginal businesses.
The success of the Tribal Council can be attributed to:
• its advanced education and business experience;
• an orientation to the external world that allows leaders to visualize creative responses
to economic problems;
• community consensus and consultation;
• the ability to access other funding (e.g., the Industry Canada component
of CAEDS); and
• the use of alternative funding arrangements.
3.7 Australian Aboriginal Development
Information on community economic development in Australia is relatively sparse. In
part, this may be due to the fact that Australian Aboriginals do not have the same legal and
constitutional relationship to the federal government as North American Indians. The
economic development directed to Australian Aboriginals is therefore similar to
mainstream programming directed to economically disadvantaged minority groups such
as Blacks in the United States. As the Australian Task Force Review of the 1987 Aboriginal
Employment Strategy notes:
Any new policy proposals must be realistic and recognize that the
development of an economic base for many Aboriginal and Torres Strait
Islander communities, particularly those in distant areas, will be
influenced by remoteness, underdeveloped technical and entrepreneurial
skills, sometimes contradictory cultural values, lack of local and regional
infrastructure, and a lack of capital. Economic empowerment will not
occur overnight and an array of government strategies and interventions,
together with industry co-operation will be needed.45
The Indigenous Land Corporation (ILC) also plays a significant role in economic
development. The Corporation develops strategic plans and identifies what land should be
bought by various indigenous communities. The government recognizes the importance
of a land-base for Aboriginal economic development.
45 Cited at www.atsic.gov.au/programs/cdep.
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An example of the programming offered to Australian Aboriginal people is the
Community Development Employment Projects (CDEP), which has been in existence
since 1977. Some 268 communities (and 30,000 individuals) have participated in its
various initiatives. The Aboriginal and Torres Strait Islander Commission (ATSIC)
provides a grant to the community to undertake community-managed activities. Program
participants forgo their unemployment insurance benefits in exchange for wages.
A recent evaluation of CDEP found that:
• participants have derived considerable employment, income, training, and social and
cultural benefits from the program;
• CDEP participants are likely to have a strong sense of cultural identity, have fewer
interactions with the criminal justice system and drink less alcohol than unemployed
Indigenous persons; and
• of all training received in the year, 77 percent was received through CDEP, and 68 per
cent of this was accredited courses.46
Evaluators made the following suggestions:
• greater access by CDEP participants to the Department of Employment, Education,
Training, and Youth Affairs training and employment information within CDEP;
• improvement of training opportunities in the areas of business and financial
management; and
• encouragement of participants to remain in the job until they have a job to go to, as this
is likely to lead to longer-term employment.
As yet, there is no overall assessment of how these initiatives have changed the economic
welfare of Aboriginal people in Australia. The techniques and the course of economic
development is sharply different than that being followed in North America, which
features community empowerment.
3.8 The critical role of governance
Cornell and Kalt (1995), after reviewing the experiences of many bands in the United
States, identify four attributes that “taken together, constitute a set of necessary and
sufficient conditions for real economic development to take place on a reservation.” They
include: “(1) cultural match with formal institutions, (2) a formal governmental system
that provides for a separation of powers, (3) a willingness to specialize and trade
“internationally” with off-reservation economies and (4) a modest endowment of either
labor or natural resources.”
46 Ibid.
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Most recently, Cornell (1997) has extended the analysis and made the very important
observation that the critical element in Aboriginal economic development is
self-governance.47 He notes that three preconditions exist for economic development on
reservations:
• First, is de facto sovereignty in the sense that Aboriginals have genuine control over
their own affairs. As long as federal bureaucrats are in control, they will make decisions
in their own interest and not the interests of the tribal members. This is both inevitable
and natural. Only by aligning the consequences of a decision with the decision-maker
will decisions become most informed.
Cornell believes that sound governance precedes economic development, not the
reverse. Further, self-government is needed before any economic policies and programs
should proceed. He notes: “The change came when, first, the federal government
undertook to respect the tribal practice of sovereignty and, second, when tribes asserted
the powers they supposedly possessed” (Cornell, 1997).
He also stresses that self-governance does not mean the exclusion of other
governments. Every sovereign government needs to have relationships with other
orders and governments. An effective system of Aboriginal self-government needs to
relate to other governments and engage in the normal intergovernmental relations
needed to arrange economic and social services.
• Having the rights and powers inherent in self-government is not enough. Also needed
are the institutions of government such as stability in rule enforcement as well as
processes to adjudicate disputes and enforce contracts appropriate to the bands’
situation. This implies the following points:
— Politics must be separated from the process of managing business. Long-term
planning is done by the governing councils, but businesses with independent
(and accountable) boards manage the operations of the firm.
— The adjudication of disputes is separate from the political process. If the courts and
tribunal process is controlled politically, risk-taking is discouraged and joint
ventures with outside firms is constrained.
— Aboriginal development needs an effective professional public service.
• Cornell echoes the sentiments of Stanley 20 years ago. These institutions of
self-government need to resonate with the cultural traditions of the individual band. In
some cases, this may mean a hierarchical political process such as that adopted by the
White Mountain Apache Tribe, or a less centralized one such as that of the Sioux of the
Pine Ridge reservation. Each band needs to develop its own effective self-government
that wins the allegiance of the people governed.
47 Self-governance refers to the creation of a set of community-based institutions that offer members of that
community the ability to control their own development. It is not the same as self-government.
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The case studies from Canada illustrate these principles well. Progressive band leadership
and the creation of independent economic-development corporations are two vital
ingredients. Also important is attention to financial management with a view to creating
high levels of confidence with key external organizations such as private lenders and
governments. Cornell and Kalt (1995) write that key ingredients for tribal development
can be divided into three categories:
• external opportunity (market opportunity, access to financial capital and distance from
markets);
• internal assets (natural resources, human capital, institutions of governance and
culture); and
• a development strategy (overall economic system and choice of development activity).
These factors need to be coordinated to produce a positive outcome.
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4. Summary and synthesis
Labour-market, employment and development policies are tightly integrated conceptually
and practically. The experience with education and training of economically
disadvantaged persons has been disappointing. Typically, the gains in terms of increased
earnings are small and often not high enough to serve as an incentive to remain employed.
The financial advantages of income assistance are often greater than the incomes available
to those with low education, poor skills and no job experience.
Three critical lessons emerge from 30 years of training and education:
• Overcoming the educational and skill deficits for many economically disadvantaged
persons is a long-term and expensive proposition. Only by addressing these substantial
educational deficits can individuals be equipped to manage their own economic futures
without continuous subsidization.
• Many of the training programs of the last decade rely on external service providers.
Sometimes, these are accredited technical and academic schools. Increasingly,
however, private-contract trainers and consultants are being used in “partnerships” as a
way to design training to meet specific needs. This runs counter to the exceptional
deficits that most clients present. Skills training is appropriate for well-educated people
who may be displaced but usually has little benefit for those who have experienced
long-term welfare dependency.
• Trainees need jobs. Focusing only on improving skills misses one half of the equation
and usually fails to make substantial change.
For these reasons, legislators have turned to increasing the pressure on welfare recipients.
Workfare in its many North American manifestations is likely to become entrenched as a
policy response in an effort to return income assistance to its initial form — temporary
relief to overcome misfortune. Certainly, training and education will continue, but they
will do so against a background of welfare eligibility that requires active and successful
participation in strategies to gain economic independence.
With the realization that long-term economic independence will require job creation,
increased emphasis is being placed on business development and partnerships with private
employers. For Aboriginal persons, community economic development forms an essential
element in a long-term economic-growth strategy.
Based on the literature review and case studies, it is clear that both mainstream and
Aboriginal community development requires the same set of circumstances:
• Effective and imaginative leadership to identify business opportunities;
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• independent political and business-development processes;
• community consensus offering broad support to development initiatives; and
• the community adopting progressive and outward perspectives, seeking opportunities
to interact and form joint-ventures with external governments, businesses and
organizations.
For Aboriginal organizations, self-governance is the most important precondition.
Self-governance is not self-government in the constitutional sense. By self-governance,
we mean Band and Tribal leadership that:
• understands the need to separate politics and business;
• can adjudicate commercial disputes fairly and form contracts with non-Aboriginal
organizations;
• can nurture a business class; and
• can integrate its education and training within its longer-term business and economicdevelopment strategy.
The fact that self-governance is the precondition to community economic development
does not mean that growth is guaranteed. Infrastructure, access to markets, and products
and services with commercial value are required. Some communities simply may not have
sufficient resources to develop economic independence.
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Appendix A
Historical Perspective of Human
Resources Development in Canada —
1965 to the Present
Overview
The Canadian government has offered services to unemployed, disadvantaged and
underemployed workers for the past 60 years. However, its role in employment and
labour-market policy and development surged in 1965 with the creation of the Department
of Manpower and Immigration. This focus has continued since then, although the form
and content of programming has shifted considerably.
The Sixties
From 1965 to 1971, major initiatives within the Department of Manpower and
Immigration included the following:
• the creation of Canada Manpower Centres (CMCs);
• Programs targeted to youth, including the creation of CMCs for Students;
• On-the-job training programs, including the Canada Manpower Training-On-the-Job
Program; and
• An Automatic Client Information System (ACIS) for the employment service.
Planners involved in manpower development also made concerted efforts to improve
labour-market analysis. They created mechanisms for tracking the demand and supply of
workers as well as forecasting tools to estimate the medium- and short-term demand for
specific occupations.
The Seventies
In the early 1970s, a Standing Senate Committee on National Finance reviewed the
activities of Canada’s Manpower department. Consequently, in 1977, the Unemployment
Insurance (UI) Commission amalgamated with the Department of Manpower and
Immigration to form the new Employment and Immigration Canada (EIC). In response to
the recommendations of this Standing Senate Committee, EIC created many new
programs targeted to the unemployed.
Employment equity issues also emerged throughout this period, and targeted programs
were created for natives, women and youth. In 1977, for example, the government created
the Native Employment Policy to assist Aboriginal persons.
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At the end of the 1970s, many programs existed within the mandate of EIC. In some
instances, they overlapped or duplicated each other. Critics argued that EIC did not have
a comprehensive labour-market strategy and that programs appeared to be ad hoc.
During the late 1970s, unemployment and inflation were high. Economists debated the
timing and method of government intervention in the labour market. Many advocated a
range of theories, but no single, unified solution emerged. Development of a
labour-market strategy based on sound economic principles and theories became a priority
for government officials going into the next decade.
The Eighties
In the early 1980s, recession posed a major challenge to the Canadian political system and
public service. The recession provoked increased government spending on unemployment
insurance, social assistance and employment creation. The consensus appeared to have
been that government’s short-term measures were reactionary and again made little
long-term change. A diversity of employment initiatives existed with little coherent
labour-market strategy.
The government also embarked on a community-development initiative by creating the
Local Economic Development Assistance Program (LEDA). This program was designed
to stimulate private-sector employment through local enterprise development within
communities. It was intended to create jobs and encourage local employer participation.
To address the diverse labour-market programming, two task forces (The EIC Task Force
on Labour-Market Development and the Parliamentary Task Force on Employment
Opportunities for the 1980s, respectively) focused on the following areas :48
•
•
•
•
•
•
employment goals;
occupational training;
job creation;
employment service;
employment equity; and
adjustment and adaptation.
In addition to these task forces (known as the Allmand and Dodge Reports), the
government commissioned other labour-market policy and development studies. This
resulted in yet another initiative — the “Revitalization of the Employment Service.” Now,
the department’s role in the employment service was refocused on:
• labour market information;
• labour exchange (job-placement function); and
48 Hunter, John. The Employment Challenge, Federal Employment Policies and Program, 1900-1990. (Ottawa:
Public Affairs, 1993, pp. 267-273).
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• Adjustment Services (such as counseling and training).
Many of the recommendations of the Revitalization Initiative supported the previous two
task forces. Major conclusions included the following:
• having adequate labour-market information is vital to meeting clients’ needs within the
local offices;
• streamlining and automating the labour-exchange function to support the use of
self-service techniques on the part of the job seeker; and
• building flexibility in the adjustment service, so that local-office program staff have
flexibility in making decisions on how to spend the program funds.
Upon completion of the Revitalization Initiative, the government consolidated 12 existing
job-creation programs into 4 main programs: Canada Works; Local Employment
Assistance and Development (LEAD); Career Access; and Job Corps. These programs
were again targeted at the unemployed and the employment-disadvantaged.
The 1980s was an era of evaluation and restructuring for the employment department. In
addition to the various task forces and the Revitalization Initiative, the government
initiated five commission reports (Macdonald, Neilson, Forget, House and Abella). Each
commission investigated various aspects of the labour-market efficiency and emerged
with the following themes:
• The efficiency of the labour market and its capacity to adjust to the domestic and
international economic environment were being negatively affected by government
policies, especially UI and job creation policies.
• Policies to combat regional unemployment, such as regionally extended UI benefits and
job creation projects, were not working and, in fact, were exacerbating the problem by
their effect on the attitude and behavior of workers and employers.
• The UI program should return to its initial role as a social insurance scheme but not
become involved in income supplementation or support, which should be handled by a
form of guaranteed annual income.
• Funding for short-term job creation should be shifted to community development
schemes designed to generate permanent economic growth for depressed areas.49
By 1985, the department concluded it could not serve everyone; instead, it should serve
those “most in need.” Consequently, the programs consolidated in 1983 were once again
revised in 1985. The resulting Canadian Jobs Strategy (CJS) now contained six major
components (see Table A4).
49 Ibid., pp. 337-338.
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CJS maintained the conservative perspective of “intervening in the market place only
when necessary” and was based on five principles:
• Training and job creation must be economic in orientation, with emphasis on small
business and support of entrepreneurship;
• Programming is to be innovative, flexible, and responsive to regional and local needs;
• Governments and the private sector must share responsibility for training and
employment development;
• There must be a commitment to equality of access to training and employment
development programs;
• Programs are to be simple and understandable and should avoid wasteful duplication.50
Following the recommendations of the CJS Task Force, the government improved the
various CJS components:
• simpler generic terms and conditions were introduced;
• forms and guidelines were reduced by 50 percent;
• local decision-making was increased;
• certain criteria were relaxed (i.e. the 24 of 30 rule in the Job Development program and
the three-year rule in the Job Entry);
• contracting and claims procedures were simplified;
• greater emphasis was placed on measuring results rather than effort; and
• simplified administration helped to free up resources in the regional and local offices.51
Toward the end of the 1980s, the government introduced more private-sector participation
in labour-force training. It created the Labour Force Development Strategy (LFDS) that
allowed UI funds for income maintenance to be shifted to occupational training and job
assistance in order to encourage unemployed people to go back to work. It also created
non-governmental Labour Force Development Boards at the national and regional level.
These boards had the authority to influence national and provincial labour-market
initiatives and played a role in shaping Canada’s labour-market programs and policies.
They also helped develop a plan for the use of UI funds at the national and regional levels.
50 Ibid., p. 343.
51 Ibid., p. 350.
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Around the same time as the creation of the LFDS, the federal government introduced the
Canadian Aboriginal Economic Development Strategy (CAEDS) and, within it, the
Pathways for Success Strategy run by EIC.
The Nineties
The government activities in the 1990s has focused on four major areas:
•
•
•
•
social security reform;
unemployment insurance reform;
initiatives targeted at Aboriginal peoples; and
devolution of labour-market training to the provinces.
The first major changes to the Unemployment Insurance Act occurred in 1992 with Bill
C-105 (The Employment Insurance Act or EI). Conditions in Bill C-105 reduced the level
of insurable earnings from 60 percent to 57 percent. The net effect was to make being on
employment insurance a less attractive option.
In 1991, with the introduction of the Pathways for Success Strategy, HRDC created
national and regional Aboriginal management boards (NAMBs and ABMs). These boards
had the responsibility of setting training priorities for Aboriginal communities. The
Pathways era initiated the partnering of HRDC and Aboriginal organizations that
continues in the form of Regional Bilateral Agreements.
In response to the social security reform, the government introduced Strategic Initiatives
in 1994. This five-year federal-provincial cost-shared program was designed to test
innovative approaches to social-security reform. The government also launched a similar
program for Aboriginal peoples — Aboriginal Strategic Initiatives. This program has the
same objectives as Strategic Initiatives but is 100 percent funded by the federal
government.
By the end of 1995, a Structural Review of Pathways for Success Strategy was completed,
and the government shifted to the use of bilateral agreements in its dealings with
Aboriginal peoples. In 1996, national framework agreements were signed between the
government and the Assembly of First Nations, the Métis National Council and the Inuit
Tapirisat of Canada. The government has allotted $200 million a year until 1999 to
address Aboriginal human-resource-development needs. Over 50 regional bilateral
agreements have now been signed by the government and Aboriginal organizations across
the country.
Nineteen ninety-six marked the start of the federal governments devolution of its labourmarket development and programs to the provinces. Bill C-12 gives HRDC three years to
withdraw from current training programs. A total of $2 billion has been set aside to help
provinces get unemployed people back into the labour market.
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Nineteen ninety-six also saw the introduction of two new special initiatives: the
Transitional Jobs Fund and the Urban Aboriginal Initiative. These initiatives are designed
to assist in the transition from the old UI legislation to the new EI Act. The Transitional
Jobs Fund is a $300-million initiative to stimulate economic growth in highunemployment areas. The Urban Aboriginal Initiative helps urban Aboriginals gain
employment.
TABLE A1
1965-71 — Human Resources Development in Canada
Activity
Objectives/Actions
Creation of the Department of
Manpower and Immigration
1965
Canada adopted the Swedish manpower
policy model with a commitment to improve
the operation of the labour market. The
federal government made a significant leap
in its scope and involvement in the
labour market.
Employment policies and programs
for students including the
establishment of the Canada
Manpower Centres for Students
1970
Centres initiated “Hire a student” campaigns
to persuade employers and the general
public to hire students.
Spring
1971
OFY provided summer employment and
tried to avoid creating competition between
students and permanent members of the
labour force.
Opportunities for Youth
66
Year
Local Initiatives Program
Fall
1971
To create additional jobs between
November 1971 and May 1972; to foster
the creation of new facilities and services that
would benefit the whole community; to invoke
the participation of community groups and
the unemployed in developing and carrying
out the projects.
Canada’s Manpower
Training-on-the-Job Program
(CMTJP)
1971
To encourage and assist employers by
providing unemployed people with
on-the-job-skills training. The government
reimbursed 75 percent of the trainees’ wages.
Employment Service
Computerization Establishment of
the Automated Client Information
System (ACIS)
1970
To design a system that captures information
about job seekers. This information is used
by counselors to match the requirements of
the job vacancy listed by an employer. The
system was used for research, planning,
evaluation, management and control
purposes.
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TABLE A1 (continued)
1965-71 — Human Resources Development in Canada
Activity
Improved labour-market analysis
and forecasting
Year
During
the
1970s
• The Job Vacancy Survey
• Occupational Shortages Survey
• Canadian Occupational
Forecasting Program (COFOR)
• Forward Occupational Imbalance
Listing (FOIL)
Objectives/Actions
Instruments developed to measure current
activity in the labour market. A mechanism
for tracking the duration, nature and
location of shortages of qualified personnel
in certain occupations was also created.
Efforts were made in developing forecasting
tools to estimate the medium — and
short — term demand for
various occupations.
Source: Consolidated information from The Employment Challenge, Federal Government Policies
and Programs 1900-1990, (Hull: Public Affairs, Government of Canada, 1993)
TABLE A2
1972-79 — Human Resources Development in Canada
Activity
Year
Objectives/Actions
Local Employment Assistance
Program (LEAP)
1972
To create employment for the unemployed
and those receiving public assistance who are
not likely to become employed through normal
labour-market activity.
Report of the Standing Committee
on National Finance on Canada
Manpower
1973
Identified the need to assist the unemployed
job-seeker.
Work Adjustment Training (WAT)
1973
To help clients who had the basic skills and
knowledge required for employment but were
unable to apply them to regular work. It consisted
of two elements: assessment of the client’s
strengths and weaknesses, and a period of
adjustment training.
Basic Job Readiness
Training (BJRT)
1974?
To assist unemployed workers or persons who
had been out of the labour force for a prolonged
period of time due to seriously deficient
educational or employment skills.
Training Improvement
Program (TIP)
1974
To provide funds to colleges and trade
associations to enable them to undertake
developmental projects.
Community Employment
Strategy (CES)
1974
To create employment for Canadians who
experience particular and continuing difficulty
in finding and keeping satisfactory employment
and who rely on some form of transfer payment
for most or all of their income.
Creation of Employment and
Immigration
1977
To integrate the UI Commission with
Employment and Immigration Canada.
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TABLE A2 (continued)
1972-79 — Human Resources Development in Canada
Activity
Year
Objectives/Actions
Canada Works Program
1977
To create employment opportunities for
unemployed Canadians by using their
skills to provide services and facilities to their
communities. The program was designed to
be more down to earth than Local Initiative
Program, and the projects were to be screened
and monitored more closely.
Young Canada Works
1977
To create jobs to facilitate students’ future
entrance into the labour market by enabling them
to test possible career choices and obtain
practical work experience. The program was
similar to Opportunities for Youth Program.
However, only established organizations could
sponsor the projects.
Summer Job Corps
1977
To create short-term jobs for young people,
primarily students, with challenging work
experience for career and educational
development.
Job Experience Training Programs
1977
The program was aimed at providing jobs for
unemployed persons from 15-24 who had been
out of school for more than three months and had
been registered with CEC for at least six weeks.
The employers participating in the program
received a wage subsidy.
Native Employment Policy
1977
To achieve the full realization of the productive
potential of Canada’s Native population, while
supporting the initiatives of Native individuals
and communities in pursuit of their economic
needs and self-fulfillment through work.
National Occupational Classification
and Jobscan
1979
To replace the Canadian Classification and
Dictionary of Occupations (CCDO).
Source: Consolidated information from The Employment Challenge, Federal Government Policies
and Programs 1900-1990, (Hull: Public Affairs, Government of Canada, 1993).
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TABLE A3
1980-89 — Human Resources Development in Canada
Activity
Year
Objectives/Actions
Local Development Assistance
Program (LEDA)
1980
To stimulate private-sector employment through
local enterprise development within communities.
Training Opportunities for Natives
Initiative
1980
To provide institutional training for natives.
Focus on Labour-market Studies
• Dodge Report
• Allmand Report
1981
The Dodge Report focused on labour-market
development; the Allmand Report focused on
employment opportunities.
National Training Act
1982
Retained the provision of the two basic categories
of institutional and industrial training but added a
third category — the Skills Growth Fund (SGF).
Employment equity targeted at
1981-82 The Portable Wage Subsidy Program; the
older workers, natives, women and
Program for Employment Disadvantaged;
youth
Women’s Counseling Centres; and Specialized
Youth Units.
Revitalization of the
Employment Service
1983
Establishment of a committee to reach an
agreement and consensus on a mission
statement for the employment service. Divide the
role of the employment service into three basic
functions: 1) labour-market information; 2) labour
exchange; and 3) adjustment services.
Consolidation of Job Creation
Programs
1983
The existing 12 job-creation initiatives were
consolidated into four major year-round
employment programs and one summer program.
To establish three labour-market objectives:
1) contra-cyclical stabilization and adjustment;
2) local employment growth; and 3) humanresource development.
Canada Works
1983
To create productive term-employment for
unemployed persons. To help stabilize the labour
market and respond to worker dislocation.
Local Employment Assistance and
Development (LEAD)
1983
To increase the number of permanent jobs
in localities of chronically high unemployment.
Career Access
1983
To provide employment opportunities for the
inexperienced, the disabled and others facing
barriers to employment.
Job Corps
1983
To help severely employment-disadvantaged
persons acquire the necessary preparation
and skills.
Commissions of Inquiry
Mid
1980s
Addressed issues related to the efficiency of
the labour market (Macdonald, Neilson, Forget,
House, Abella).
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TABLE A3 (continued)
1980-89 — Human Resources Development in Canada
Activity
Year
Objectives/Actions
Canadian Job Strategy
1985
To ensure federal resources are used effectively
to bring direct assistance to those in need.
CJS Task Force
1985
Recommended how programs could be
streamlined.
Labour Force Development
Strategy (LFDS)
1989
To establish greater private-sector participation
in and responsibility for labour-force training.
Source: Consolidated information from The Employment Challenge, Federal Government Policies
and Programs 1900-1990, Hull: Public Affairs, Government of Canada, 1993.
TABLE A4
Component Programs of the Canadian Job Strategy
Program Name
Description
Skill Shortages
Subsidize employers to train
workers in high-demand
skills in short supply.
182.2
70.9
Skill Investment
Helps experienced workers
retain their jobs by updating
their skills. Five options
are available.
41.2
17.8
Job Entry
Helps youth make the
transition from school to work,
and helps women having
difficulty re-entering the labour
market after an absence from
the workforce.
402.9
149.0
768.7
176.2
3.1
Job Development Assists the re-employment
of the long-term unemployed.
1986-87 Expenditures 1986-87 Participants
($millions)
(000s)
Community
Futures
Helps single-industry
communities hit by plant
closings and mass layoffs.
63.5
Innovations
Funds pilot projects and
demonstration projects.
14.8
Source: EIC (1988: 48-49 and 64-65).
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TABLE A5
1990s Human Resources Development in Canada
Activity
Year
Objective/Actions
Pathways for Success Strategy
1991
• To invest in and develop a trained Aboriginal
labour force.
• To develop an effective partnership Aboriginal
between HRDC and Aboriginal organizations.
• To facilitate broader Aboriginal participation in
unique Aboriginal labour markets and the
broader Canadian labour market.
• Established national and regional Aboriginal
management boards to set the training
priorities of Aboriginal communities.
Bill C-105 (UI Changes)
1992
• Reduced benefits for 1993 and 1994 to
57 percent of insurable earnings from
60 percent.
Bill C-113 (UI Changes)
1993
• Eight areas of “just cause” were added to the
existing five areas contained in the UI Act.
Strategic Initiatives — five-year
provincial cost-shared
program
1994
• To test innovative approaches to federalsocial-security reform.
Aboriginal Strategic Initiatives
1994
• To test innovative approaches to
social-security reform — specifically targeted
to Aboriginal peoples.
Development of National Framework 1996
Agreements and Regional Bilateral
Agreements
• Government provides $200 million a year until
1999 in funding for Aboriginal human-resource
development.
Bill C-12/Proposed EI Act Legislation 1996
• Transfer responsibility for human-resource
development from HRDC to the provinces —
three-year period of transition granted.
Transitional Jobs Fund
1996
• To stimulate economic growth in areas with
high unemployment and few employment
opportunities.
Urban Aboriginal Initiative
1996
• To help urban Aboriginals gain employment.
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Appendix B
Overview of Australian Labour Market
and Training Programs —
1970s-1990s
The Seventies
During the 1970s, Australian labour-market programs and policies focused on three areas
of intervention:
• job creation;
• wage subsidies; and
• structural adjustment assistance.
Australia’s Department of Employment and Industrial Relations targeted its manpower
programs to the disadvantaged and long-term unemployed.
• In 1974, the Department created the Regional Employment Development Scheme
(REDS). The short-lived public-sector job-creation program was created to combat
high unemployment levels. A change in government in 1975 resulted in a new mandate
and the elimination of REDS.
• During the early 1970s, it was believed that employment subsidies were a better
approach than public-sector job creation.
• By 1976, the government shifted its focus to private-sector job creation, thereby
recognizing that employer participation in training programs was critical in addressing
employment gaps and high levels of unemployment.
• Throughout the mid- and late 1970s, labour-market programming focused on structural
changes believed to be responsible for high levels of unemployment and the
displacement of workers in key industrial sectors. The government responded by
creating the Structural Adjustment Assistance (SAA) program in 1973. This program
was reviewed in 1975 and discontinued for the following reasons :52
— special benefits to designated displaced workers reduced the mobility of those
affected by structural change;
52 Bureau of Labour Market Research, 1987 report of the SAA Review. They are summarized in the following
book by Leigh, Duane E.: Does Training Work for Displaced Workers? A Survey of Existing Evidence.
(Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research, 1990), p. 93.
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
73
— determination of whether particular workers were unemployed as a result of
government’s specific policy decisions was difficult and arbitrary; and
— pressures existed to extend benefits to other unemployed workers not eligible for
program assistance.
The Eighties
In terms of mainstream programming, although the SAA program was eliminated, the
government continued to supply adjustment-assistance services to displaced workers. Two
new programs emerged in the 1980s:
• Labour Adjustment Training Arrangements Program (LATA) — An evaluation of the
program in 1990 revealed that training curriculums must match the interests and
backgrounds of targeted workers to be effective. The study also indicated that the type
of training provided makes a substantial difference in the net impact analysis.
• Heavy Engineering Labour Adjustment Assistance Program
In the late 1980s, the government also introduced labour-market programs and policies
specifically for Aboriginal people.
• In 1987, the Aboriginal Employment Development Policy (AEDP) responded to high
levels of unemployment among Aboriginal and Torres Strait Islander peoples.
• The government’s employment and training initiative under the AEDP was the Training
for Aboriginal and Torres Strait Islanders Programme (TAP). TAP was designed to meet
the needs of Aboriginal job seekers who could not be appropriately assisted through
mainstream labour-market programs. It also involved linking assistance with
mainstream initiatives. TAP consists of several elements such as Skills Development,
Transition Assistance, Formal Training and Ancillary Allowances.
The table below, provided by the Department of Employment, Education, Training and
Youth Affairs, identifies the many program elements of TAP.
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Development Policies, Programs and Services for Aboriginal Peoples
TABLE B1
TAP — Training for Aboriginals and Torres Strait Islanders Programme Description
Program Category
Type of Assistance
Duration
Assistance Available
Skills Development
Provides wage subsidies
to employers to provide
employment-based
training placements to
increase the level of
skills and employment of
Aboriginal and Torres
Strait Islander peoples.
The duration of the
traineeship or
apprenticeship;
Non-accredited
employment
placements — up
to 6 months.
Traineeships: up to
100 percent of the award
wage; Apprenticeships:
up to 50 percent of the
award wage; and
Non-accredited
training placements: up
to 100 percent of the
award wage.
Transition
Assistance
(Work Transition)
Provides wage subsidies Initially up to 6 weeks, 100 percent of the
to employers so an
may be extended
award wage
Indigenous jobseeker
to 13 weeks.
can be provided with
the opportunity to trial
a type of employment,
allowing the jobseeker
to make an informed
choice about a career
path.
Transition
Assistance
(Mentor Services)
Provides an Indigenous 12 months.
jobseeker with a mentor
while participating in
employment or training
to assist with
overcoming obstacles
which may affect the
employment or
training placement.
Limited to a maximum
of $2,000 worth of
assistance in any
given 12-month period.
Transition
Assistance
(Career Information
Events)
Provides Indigenous
Duration of event.
jobseekers with the
opportunity to attend
industry expos, career
information days and
enterprise information
sessions which will
assist make an informed
decision regarding a
career path.
Costs associated
with attending the event
including fares to and
from the event,
registration fees,
accommodation costs
and the jobseeker to
other costs directly
associated with attending
the event.
Formal Training
Provides Indigenous
jobseekers with formal,
institution based training
that is pre-vocational or
job-specific.
Income support
(equivalent to
unemployment benefit);
and training component.
Non-accredited
training courses —
6 months; Accredited
training that does lead
to other accredited
training — 6-12
months.
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
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TABLE B1 (continued)
TAP — Training for Aboriginals and Torres Strait Islanders Programme Description
Program Category
76
Type of Assistance
Duration
Assistance Available
Ancillary Allowances Pays for the cost
(Course Costs)
of a course.
One-off payment.
Amount of course cost.
Ancillary Allowances Provides financial
(Books and
assistance to the
Equipment)
jobseeker to meet
compulsory course
costs including books
and equipment
associated with the
employment/training
placement.
Cash limited payment Up to $350
in any given 12-month
period.
Ancillary Allowances Provides financial
(Special Grant)
assistance to meet
extraordinary costs
associated with the
employment/training
placement
Cash limited payment No dependents up
in any given 12-month to $350
period.
With dependents up
to $500
Ancillary Allowances Provides financial
(Local Fares)
assistance to a client
to attend a training
or employment
opportunity in the
local region.
For the duration of a
training placement
or 20 weeks for
clients participating
in an employment
placement.
Under 18 up to
$52-90/week
18 and over up to
$57-90/week
Ancillary Allowances Provides financial
This is a one-off
(Forward Fares)
assistance to assist an payment.
Indigenous jobseeker
to move to a new
location to take up an
employment or training
opportunity or attend an
interview where there
exists a reasonable
chance of success.
Cost of fare
Ancillary Allowances Provides financial
(Accommodation)
assistance to a
jobseeker to obtain
adequate accommodation while participating
in a DEETYA labour
market programme
away from the client’s
home for short periods
(e.g., to attend block
release training).
Costs met are limited to
the current non-SES
travel allowance rates.
Assistance is
available for the
duration of the
labour market
programme in which
the participant
is participating.
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Development Policies, Programs and Services for Aboriginal Peoples
Table 1 provides a general guide for possible assistance available under the
TAP — Training for Aboriginals and Torres Strait Islanders Programme.
Included with the table is the following information:
The amount and duration of assistance provided to a client will be
determined by the individual client’s employment and training needs and
is subject to the approval of the local CES.
Employment Strategies target significant employers, which include the
public and private sectors, community organizations, regional employers
and employer representative groups, by providing a range of assistance to
employ Aboriginal and Torres Strait Islander peoples and develop career
paths. This is achieved through the development of an Aboriginal and
Torres Strait Islander recruitment and career development plan for the
employer. Under this plan, assistance may be provided to support the
appointment of an Employment Strategy Coordinator and the
implementation of the above elements of TAP. This approach is specified
in an Agreement between the employer and the DEETYA which sets
specific targets and outcomes for the employment of Aboriginal and
Torres Strait Islander peoples within the sponsoring organization and is
overseen by a joint Steering Committee. Other assistance included within
a strategy may include cross-cultural awareness training for employees of
the sponsoring organization, establishment and maintenance of contacts
and networks for Indigenous peoples employed by the organization, and
organization specific training and career development.
The Nineties
In the 1990s, Australia introduced major changes to mainstream and Aboriginal labourmarket programs and policies. We identified the following developments:
• The Commonwealth Employment Service Advisory Committee’s Review of Labour
Market Programmes recommended streamlining labour market programs in October
1996. These recommendations were also the catalyst for developing a performance
management framework and focusing on program results or outcomes. As a result, the
Department of Employment, Education, Training and Youth Affairs (DEETYA)
changed to one of purchaser of services and provider of policy advice. The
department’s role in direct service delivery diminished as it took on that of contract
manager overseeing a network of public and private employment and training service
providers.
Literature Review on Employment, Labour Market and Economic
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• In the past few years, there have been reforms to employment insurance benefits and a
focus on persons with an attachment to the labour market. The emphasis of
employment and training programs is based on “case management” that attempts to
deal with all aspects of the individual’s needs to prepare them for employment.
• Labour market programs have been privatized and are delivered by private employment
and training service providers and the government’s newly created public enterprise
that competes with them. Employment and training agencies are to provide services to
“employment-ready” clients and “less employable”, higher risk clients. Agencies sign
a contract and must meet the terms and conditions as well as targets set out or they will
not meet their contract requirements. There are several Aboriginal service providers
throughout the country.
• The government has also established Centrelink which is a one stop centre for the
unemployed. This network of centres refers clients to employment and training
providers or offers support and assistance to prepare the individual for training.
Centrelink integrates training interventions with income assistance.
Aboriginal specific programming has also changed.
• Employment Strategies is a new element of TAP and recruits Aboriginal people for
career development. This initiative develops agreements with organizations to increase
the number and status of Aboriginal and Torres Strait Islander people employed. Local
Aboriginal and Torres Strait Islander Employment Promotion Committees (LAEPCs)
may be used to fund these organizations. Organizations (businesses, government, or
non-profit agencies) can enter into five models of agreement with the federal
government.
• In the late 1990s, the direct assistance element of the TAP was eliminated. This
component involved assistance with traineeships, wage subsidies and assistance to
meet employment related training costs and expenses. Direct assistance also provided
financial payment for services such as work experience, mentor services, attendance at
career information events, and literacy training. Direct assistance might have been
provided to an individual over a number of years as he/she prepared for eventual
training and employment. This support will now come from Centrelink and other
community supports.
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Development Policies, Programs and Services for Aboriginal Peoples
TABLE B2
Australian Training Programs, 1970-1990 Period
Activity
Year
Objectives
Structural Adjustment
1973-1976 • Provide income-maintenance allowances to tradeAssistance (SAA) program
displaced workers.
Labour Adjustment
Training Arrangements
(LATA) program
1982
• Develop flexible training packages to meet displaced
workers’ needs within the steel industry.
• Vocational-oriented training provided in government
or private educational institutions.
• Government covers direct costs of classroom training.
• Income-maintenance allowances provided to
trainees — allowances equal UI benefits plus a
supplementary adult training payment.
• Costs of textbooks, equipment, and special course
fees are also covered.
Heavy Engineering Labour
Adjustment Assistance
program
1986
• Develop assistance packages for displaced workers
of the heavy engineering/capital good industries.
• Encourage employer to provide on-the-job training
(use of wage subsidies).
• Provide formal training (up to 12 months) for workers
displaced from designated employers.
• Provide income-maintenance support to
displaced workers.
• Provide relocation assistance to displaced workers.
Aboriginal Employment
Development Policy
1987
• Achieve broad equity between Indigenous and other
Australians in terms of employment, economic status,
education, and a reduction in welfare dependency.
Training for Aboriginals
and Torres Strait Islanders
Programme (TAP)
1987
• Provide training and employment opportunities to:
— increase the numbers in ongoing employment;
— increase occupational skills;
— improve employment prospects in the labour
market; and
— achieve a greater distribution of employment
across a range of occupations across
industry sectors.
Employment Strategies
1990s
• Increase the number and status in ongoing
employment, taking into account the need for an
appropriate geographic, industrial and occupational
spread of employment opportunities.
• Improve career prospects with a particular focus on
increasing the number in managerial, professional
and technical occupations.
Sources: Duane E. Leigh, Does Training Work for Displaced Workers? A Survey of Existing Evidence.
(Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research, 1990) p. 91-99. Website
information and other documentation from the Department of Education, Employment, Training and
Youth Affairs (DEETYA). Interviews with contacts at DEETYA.
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Development Policies, Programs and Services for Aboriginal Peoples
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Appendix C
Labour-market Training Programs in
the United States — Last Four Decades
Overview
The federal government has long perceived skills and education upgrading as a solution
to rising unemployment and chronic social assistance. The attention of the federal
government in the 1960s with the War on Poverty, and more recently various state
government in dealing with expanding welfare rolls, has produced many responses. The
program emphasis has moved from sharply defined skills-training to using incentives and
penalties to encourage economic independence. On a parallel track, increased attention is
now being paid to the school-to-work transition.
The number of job-training programs in the United States proliferated over the last
30 years in response to unemployment, underemployment and poverty. The federal
government saw job training as a potential solution to these types of problems. In many
instances, the gains are significant enough to move participants out of poverty and off
welfare or unemployment. Critics of U.S. training programs argue education and job
training are interrelated, and any divisions between education and job training should be
eliminated.
The Sixties
The Manpower Development Training Act (MDTA) changed vocational education
practice in the United States. It gave the Department of Labor the opportunity to provide
non-traditional training for adults outside the school system, including:
• single-occupation classroom training;
• referrals to vocational and technical schools; and
• subsidized on-the-job training.
Analysts argued that the vocational education programs of the early 1960s inadequately
addressed the needs of adults. To compensate for this, the government created a number
of new programs under the MDTA in 1963, 1965, 1966 and 1968 that expanded training
to youth and the poor. The best-known, most-expensive and intensive MDTA program
was the Job Corps Program. This program targeted disadvantaged youths and provided a
comprehensive number of services (counseling, education, training, work experience and
health care). Participants would receive training for an entire year in a residential setting
away from home. The Job Corps Program served 40,600 persons in 1966 at a cost of
$37,000 per participant (in 1994 dollars).53 As of 1995, the Job Corps Program was still in
53 Robert Lalonde, “The Promise of Public-Sector Sponsored Training Programs,” Journal of Economic
Perspectives, Vol. 9 (Spring 1995) p. 151.
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existence under the Job Training Partnership Act. The Program served 104,000 persons
in 1995 at a cost of $16,000 per participant (in 1994 dollars).54
In the late sixties, the federal government shifted its focus to welfare reform. It made
amendments to the Social Security Act in 1967, and new programs emerged which
required certain welfare recipients to either work and/or participate in training programs
(i.e., Work Incentive Programs). Failure to comply meant loss of benefits.
The welfare-to-work experiments during this period emphasized work rather than
education and job training.
The government faced many challenges in measuring the effectiveness of job-training
programs in the late sixties. Programs varied in intensity and objectives. The government
had entered into roughly 40,000 contractual agreements with various state and local
organizations for the implementation of specific employment and training activities.55 As
a result of this diversity, standardization of the administration and operation of the training
programs became paramount.
By the end of the 1960s to the early 1970s, unemployment was edging up, and the
government was focusing its efforts on creating public-sector jobs. In 1971, the
government introduced the Emergency Employment Act, which provided funding to create
jobs within the public sector.
The Seventies
The next major shift occurred around 1973 with the introduction of the Comprehensive
Employment and Training Act (CETA). Programs under this Act targeted low-income
unemployed and economically disadvantaged persons. Program services and
administration became more standardized. States and local governments levels received
grants from the federal government to administer and operate employment and training
programs. They had responsibility for deciding the types of training to be provided, who
should be served, and how the training was provided.
Effectiveness in job-training programs became a priority, and, consequently, programs
were evaluated under the CETA. The evaluations concentrated on quasi-experimental
methods and regression analysis methodologies and have generated much of the insight
into the effectiveness of education and training.
The Eighties
The Job Training Partnership Act (JTPA) replaced the CETA program in 1983. While the
decentralized structure of CETA was maintained under JTPA, the Act granted the states
the right to designate local service-delivery areas (SDAs). The JTPA required the SDAs
to meet specific performance standards. Enforcement of performance standards by the
government ensured the effectiveness of the program in meeting the individual needs of
each SDA.
54 Ibid., p. 151.
55 John Palmer, “The Next Decade: The Economic, Political, and Social Context of Employment and Training
Policies,” Policy Studies Review, Vol. 6 (May 1987) p. 701.
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The program also emphasized the need for training to be responsive to the needs of
employers and, therefore, instituted local administering boards (Private Industry
Councils). JTPA programs focused on the unemployed, on dislocated workers who had
lost their jobs due to foreign trade, and on the economically disadvantaged. Also, no
public-sector employment was eligible for assistance, correcting a significant defect
of CETA.
By the end of the 1980s, the government passed the Family Support Act to require states
to establish training programs for welfare recipients to raise their employment levels. The
most prominent program of this kind is the Job Opportunities and Basic Skills Training
(JOBS) program introduced in 1988.
The Nineties
The federal government has made a significant number of major welfare reforms
throughout this decade, including:
• providing full federal funding for the JOBS program in 1993 under the Work for
Welfare Act — in fact, funding for the program tripled;
• introducing a welfare bill in 1993 with two tiers of Aid to Families with Dependent
Children (AFDC) — a transition and work program; and
• introducing a Welfare Reform Act in 1994 that allowed states the option of ending
AFDC support to a recipient after two years.
A majority of the welfare reform in the early 1990s restricted a welfare clients’ length on
a particular program. Under the welfare changes in 1993, for example, states could opt to
drop AFDC clients from the rolls after five years of participation in the program. The
Welfare Reform Act of 1994 restricted the eligibility of welfare term to two years and also
required welfare teen mothers to live with their parents. Finally, the Act allowed for “the
establishment of a voucher program whereby the combined value of AFDC and
food-stamp benefits could be used as a wage subsidy.”
The largest undertaking of the government was the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996. This Act ended welfare as Americans knew it. It
essentially replaced the long-standing Aid to Families with Dependent Children (AFDC)
program with a new program called Temporary Assistance for Needy Families (TANF).
This new program provides “block grant” funding to the states. These funds are then
provided to welfare recipients in a cash entitlement, with time restrictions.
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One year later, the government introduced the Welfare-to-Work Grant Program under the
1997 Budget Reconciliation Act. Under this program, states received grants based on a
particular funding formula, taking into account the states’:
• population under the poverty level;
• unemployment rate; and
• welfare caseload.
Amendments to the Budget Reconciliation Act also “funded communities for projects that
emphasize innovation, collaboration, and sustainable strategies to attain employment,
earnings, and other successful outcomes for welfare recipients.” Tribal and Native
American organizations are eligible to apply for these grants.
In addition to the major welfare reforms, the government made concerted efforts to
address Indian and Native American peoples’ needs. In 1992, for example, it established
the Native American Employment and Training Council under Section 401 (K) of the Job
Training Partnership Act. This council is to be the voice of Indian and Native American
communities with respect to employment and training issues. It is expected to develop an
effective partnership with the Department of Labour in these areas. The Department of
Labour announced recently (March 18, 1998) that it will provide $15 million in
Welfare-to-Work grants to tribal governments for the purpose of assisting long-term
welfare recipients become employed. This council is expected to assist in the
allocation process.
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Development Policies, Programs and Services for Aboriginal Peoples
TABLE C1
1960-1990 Period
Activity
Year
Objectives/Actions
Manpower Development and 1962
Training Act (MDTA)
• Began as a program to aid dislocated and
unemployed workers.
• After the passage of the Economic Opportunity Act in
1964, the focus of the program shifted to serve more
welfare recipients and low-income youth.
Amendments to the Social
Security Act
1967
• Provided funds for social services to states, which had
the authority to decide what services should be
provided.
Work Incentive Program
1971
• Established as a voluntary work program for welfare
recipients (included education and
training components).
Emergency Employment Act
1971
• Provided in excess of $2 billion for the creation
of public-sector jobs.
Comprehensive Employment 1973
and Training Act (CETA)
• Provided training and employment services to
low-income, unemployed and economically
disadvantaged persons.
• Provided temporary public service employment to
eligible unemployed persons.
Job Training Partnership
Act (JTPA)
1983
• Maintained the decentralized structure of CETA.
• Eliminated public service employment component.
• Reduced expenditures on traditional services for
the economically disadvantaged.
• Authorized funding for unemployed, dislocated
workers who were not economically disadvantaged.
• Created partnerships with private firms, state
governments and NGOs to offer training and
skills upgrading.
• Used performance measures and performance
contracts with training providers.
JOBSTART
1985
• Targeted youths (17-21 years of age ) who had
dropped out of high school — similar to the Job
Corps Program except it was less intensive and
non-residential.
Family Support Act
1988
• Required all states to establish training
programs to increase the employment of
welfare recipients.
Job Opportunities and
Basic Skills Training (JOBS)
program of the Family
Support Act of 1988
1988
• Required 55 percent of states’ JOBS funds be spent
“most at risk” of long-term welfare dependency
— includes mandatory participation for all AFDC
recipients (single heads-of-households with
no children under the age of three).
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Development Policies, Programs and Services for Aboriginal Peoples
Appendix D
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Reports, Papers, Books, Academic Journals
87-101
Evaluation Reports
103-112
Web sites
113-116
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Goss Gilroy Inc., Management Consultants, May 1996. Summary Report for the
Evaluation of the Canada-GNWT Economic Development Agreement (EDA).
Goss Gilroy Inc., August 8, 1997. Economic Impacts of Aboriginal Businesses in
Ruraland Remote Locations.
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Development Component of the Northern Affairs Program. Department of Indian Affairs
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Group of the Council on Rural Development, September 1993. Evaluation of the Effects
of Employment Creation Measures in Rural Areas.
Groupe Développement Économique, 1998. Mid-term Evaluation
Canada — Kativak Regional Authority Regional Bilateral Agreement.
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the
Harvey, Ted Adam and Don McCaskill, January 1988. Evaluation of the Native
Friendship Centre Program: Final Report, prepared for Program Evaluation, Department
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Hickling-Partners Inc., March 1983. An Evaluation Study of the Band Training Program
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Hill, Jamie, October 1997. Evaluation Framework: Sharing Innovation: A Coordinated
Approach to Knowledge Development and Service Delivery.
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106
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
Human Resources Development Canada, November 1997. Evaluation Brief: Summer
Career Placements Program.
Human Resources Development Canada, March 1994. Evaluation of the
Canada/Newfoundland Youth Strategy.
Human Resources Development Canada, September 1995. Evaluation of the Child Care
Initiatives Fund (Overview Report).
Human Resources Development Canada, September 1995. Evaluation of the Child Care
Initiatives Fund, Technical Report No. 1: Analysis of Administrative Data.
Human Resources Development Canada, September 1995. Evaluation of the Child Care
Initiatives Fund, Technical Report No. 2: Literature Review.
Human Resources Development Canada, September 1995. Evaluation of the Child Care
Initiatives Fund, Technical Report No. 3: Key Informant Interviews.
Human Resources Development Canada, September 1995. Evaluation of the Child Care
Initiatives Fund, Technical Report No. 4: Peer Reviews.
Human Resources Development Canada, September 1995. Evaluation of the Child Care
Initiatives Fund, Technical Report No. 5: Survey of Project Sponsors.
Human Resources Development Canada, September 1995. Evaluation of the Child Care
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Human Resources Development Canada, June 1994. Evaluation of the Cooperative
Education Option.
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Human Resources Development Canada, January 20, 1998. Lessons Learned from
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Literature Review on Employment, Labour Market and Economic
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107
Human Resources Development Canada, February 1996. Strategic Initiative Evaluation
S1-1, Student Work and Service Program (Newfoundland and Labrador).
Human Resources Development Canada, November 1995. Strategic Initiative Evaluation
S1-5, Investing in People (Northwest Territories).
Human Resources Development Canada, June 1996. Strategic Initiative Evaluation S1-6,
Integrated Training Centres for Youth (Alberta).
Human Resources Development Canada, March 1996. Strategic Initiative Evaluation
S1-8, Strategic Employment Opportunities (Newfoundland/Labrador).
Human Resources Development Canada, March 1996. Strategic Initiative Evaluation
S1-9, Graduate/Employment/Self-Employment (Newfoundland/Labrador).
Human Resources Development Canada, October 1995. Strategic Initiative Evaluation
S1-11, Nova Scotia COMPASS (Nova Scotia).
Human Resources Development Canada, September 1997. Strategic Initiative Evaluation
S1-12, Improved Access to Child Care Supported Child Care Transition Project
(British Columbia).
Human Resources Development Canada, October 1997. Strategic Initiative Evaluation
S1-13, Improved Access to Child Care One-Stop Access Centres/Regional Delivery
Models (British Columbia).
Human Resources Development Canada, September 1996. Strategic Initiative Evaluation
SI-14, Ontario JobLink Resource Centres (Ontario).
Human Resources Development Canada, November 1996. Strategic Initiative Evaluation
SI-15, New Brunswick Job Corps (New Brunswick).
Human Resources Development Canada, May 1997. Strategic Initiative Evaluation SI-16,
Assessment, Counseling, and Referral (British Columbia).
Human Resources Development Canada, September 1997. Strategic Initiative Evaluation
SI-17, Labour Market Information (British Columbia).
Human Resources Development Canada, March 1997. Strategic Initiative Evaluation
SI-18, Community Skills Centres (British Columbia).
Human Resources Development Canada, December 1996. Strategic Initiative Evaluation
SI-19, Investing in People Year 2 (Northwest Territories).
Human Resources Development Canada, January 1998. Western Aboriginal Development
Alliance Strategic Initiative: Formative Evaluation — Final Report.
108
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
Investing in the Children’s Future: An Evaluation of the First Nations/Inuit Child Care
Initiative — Summary of Key Findings.
Indian and Inuit Affairs Program, September 7, 1981. Sectoral Programs and Economic
Development Institutions: An Overview.
Indian Affairs and Northern Development, October 1996. Overview of DAEB Evaluation
Studies of DIAND Funding Arrangements.
Institute for Human Resources Development, Terence Hickey & Associates, Goss Gilroy
Inc., February 16, 1998. Mid-Term Review of the Regional Bilateral Agreement Between
Human Resources Development & The Federation of Newfoundland Indians.
Institute for Human Resource Development, Terence Hickey & Associates, Goss Gilroy
Inc., February 16, 1998. Mid-Term Review of the Regional Bilateral Agreement Between
Human Resources Development Canada & The Miawpukek First Nation.
Jacobs, Mel W., Campbell Research Associates, Kelly & Associates, Smith & Associates.
January 1998. Evaluation of Anishinabee Social Services Reform Pilot Project.
Mid-Term Report.
JAG & Associates, April 1997. Management Model for the Evaluation of the “Challenge
to Change” Project.
Kativik Regional Government. Report from Nunavik Concerning the First Nations/Inuit
Child Care Initiatives.
Kelly, Doug & Jim Morrison, 1997. A Story of “One Window” in B.C., Pathways to
Success: “Toward a Trained Aboriginal Workforce.” Federal Native Employment
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Létourneau, Claude, February 21, 1997. The Strategic Initiatives Mid-Term Review
Final Report.
Lougheed and Associates, September 1986. Report on the Native Communications
Program and the Northern Native Broadcast Access Program, prepared for Program
Evaluation Directorate, Department of the Secretary of State.
Lummi Nation Self-Governance Communication and Education Project, 1995.
Self-Governance: A New Partnership.
Lutra Associates Ltd. July 1996. The Richness That Language and Culture Brings: An
Impact Study of Canada — NWT Languages Agreements — Final Report, prepared for the
Official Languages Unit, Department of the Executive, Government of the Northwest
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Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
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McDavid, J.C. and Associates, February 1996. Summary Report of the 1991-1996
Canada/Yukon EDA Evaluation.
Martin Spigelman Research Associates, The Project Group, & Terriplan Consultants,
November 1997. Investing in the Children’s Future: An Evaluation of the First
Nations/Inuit Child Care Initiative.
Menominee Consulting Services, Timmins, Ontario, February 1998. Mamo-WichiHetiwin Employment and Training, Mid-term Review: Final Report.
Menominee Consulting Services and Aniskinaabe Translation Services, 1998.
Nishnawbe-Aski Nation, Regional Bilateral Accord, Mid-term Review, for
Mamo-Wichi-Hetiwin Employment and Training Mushkegowuk Council and Sioux
Lookout Area Aboriginal Management Board: Summary report.
Menominee Consulting Services and McLeod Wood Associates, February 1998.
Mushkegowuk Employment and Training, Mid-term Review: Final Report.
Nand Tandan Evaluation Services, July 21, 1997. A Review of Programs for Older Worker
Adjustment — Technical Report.
New Economy Development Group, November 1993. Evaluation of the Canada-NWT
Cooperation Agreement for French and Aboriginal Languages in the NWT — A Literature
Review: Maintenance and Revitalization of Aboriginal Languages.
New Economy Development Group, December 1993. Evaluation of the Canada-NWT
Cooperation Agreement for French and Aboriginal Languages in the NWT — Parts I, II
and Appendices.
New Economy Development Group Inc., November 1997. Framework for the Evaluation
of the ASI Strategy (Final Report) for the Inuit Tapirisat of Canada and Human Resources
Development Canada.
Nichols Applied Management, The Genesis Group, & Nunavut Consulting, December
1996. Evaluation of the Investing in People Initiative — Year Two.
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Pathways to Success Structural Review: Stage I: Report and Recommendations,
January 14, 1995.
Pathways Structural Review, Stage II: Strategic Directions, Options for Consideration,
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Peat Marwick Partners, May 1984. Evaluation of the Local Employment Assistance
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110
Literature Review on Employment, Labour Market and Economic
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Peters Coolican Associates, Onchiota Inc., & Nordicity Group, February 1986. A Review
of Aboriginal Representative Funding, prepared for The Ministers, The Secretary of State,
and Indian and Northern Affairs Canada.
Pommen and Associates Limited, February 1998. Evaluation Regional Bilateral
Agreements in Alberta — Formative Report.
Prairie Research Associates Inc. March 9, 1994. The Evaluation of the Canadian
Aboriginal Economic Development Strategy (CAEDS): Case Study for Meadow Lake
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Prairie Research Associates Inc., June 2, 1995. Comparison of DIAND and Provincial
Social Assistance Benefits in Manitoba: Phase 3 — Estimates of Benefit Gaps
and Deficiencies.
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Strategy: Final Report.
Prairie Research Associates Inc., December 9, 1997. Taking Charge! Formative
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Bilateral Agreement Between Canada and the First Nations of Saskatchewan.
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Social Research and Demonstration Corporation, November 1996. Evaluating the
Effectiveness of Employment-Related Programs and Services for Youth.
Sovereign Nations, Newsletter of Tribal Self-Governance, June/July 1996 and several
other issues.
Status Report of the First Nation/Inuit Childcare Initiative in the Nine Cree Communities
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Literature Review on Employment, Labour Market and Economic
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111
The Pathways to Success Strategy: A Five Year Report.
Tremblay, Dr. Paulette, November 1997. Evaluation of the Aboriginal Strategic Initiatives
Project of the Assembly of First Nations.
United States Department of the Interior, FY 1999, Bureau of Indian Affairs. Budget
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to the National Aboriginal Management Board.
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112
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
Web sites
ABSTUDY: An Investment for Tomorrow’s Employment, review of ABSTUDY,
prepared by Owen Stanley and Geoff Hansen (Australia)
http://www.atsic.gov.au/abstudy/preface.htm
ARTICLE: “From War to Self-Determination: A History of the Bureau of Indian Affairs”,
article by C.L. Henson
http://www.americansc.org.uk//indians.htm
ATSIC homepage (Australia)
http://www.atsic.gov.au
ATSIC Corporate Plan (Australia)
http://www.atsic.gov.au/organis/corpp2.htm
ATSIC Pathways to Sustained Economic Development
http://www.atsic.gov.au/programs/pathways.htm
ATSIC Annual Report 1997
http:/www.atsic.gov.au/ar97/
— including Chapter 8: Evaluation and Audit of various programs
http://www.atsic.gov.au/ar97/chapter8.htm
— including Chapter 4: Economic Programs
http://www.atsic.gov.au/ar97/chapter4.htm
Aboriginal Economic Development in Western Australia
A Strategy for Responsive State Government Services and Programs, April 1997
http://www.wa.gov.au/commerce/aed/
A Vision for Aboriginal Economic Development
http://www.wa.gov.au/commerce/aed/vision.html
Putting the Institutional Mechanisms in Place
http://www.wa.gov.au/commerce/aed/mechan.html
Strategies for Aboriginal Economic Development
http://www.wa.gov.au/commerce/aed/strat.html
Agencies responsible for assisting Aboriginal Economic Development
http://www.wa.gov.au/commerce/aed/appendix.html
Ministerial Forward
http://www.wa.gov.au/commerce/aed/minister.html
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
113
Statement of Principles
http://www.wa.gov.au/commerce/aed/principl.html
Book reviews by Richard L. Schott:
“What can Tribes Do? Strategies and Institutions in American Indian Economic
Development”
“American Indian Policy: Self-Governance and Economic Development”
http://www.fsu.edu/~spap/orgs/apsa/vo14_no2/schott.html
Bureau of Indian Affairs — 1995 Annual Report
http://www.doi.gov/pfm/ar5bia.html
“Bureau of Indian Affairs Aid to Native Americans
http://www.dowling.edu/applying/financia/federal/indian.htm
Bureau of Indian Affairs Mission Statement
http://www.doi.gov/bia/mission.html
Bureau of Indian Affairs Strategic Plan
http://www.doi.gov/bia/plan930.html
Communities Economic Development Fund (Manitoba)
http://www.gov.mb.ca/chc/archives/accessguide/cedf/foicedf.html
Community Economic Development Fund (U.S.)
http://www.bridgenet.org/sites/cedf/
Congressional Research Documents on Job Training
Abstract of a paper by Kathryn Anderson, et al. “Reality or Illusion: The importance of
Creaming on Job Replacement Rates in Job Training Partnership Act Programs”
http://www.clark.net/pub/pennyhill/jobtng.html
Department of Employment, Education, Training and Youth Affairs (DEETYA, Australia)
http://www.deet.gov.au/
“What is the CDEP?” (Australia)
http://www.atsic.gov.au/programs/cdep/whatis.htm
“Engendering Community Economic Development” (Canada)
http://ccn.cs.dal.ca/CommunitySupport/CUSO/engender.html
Enterprise Development Website: Micro, Small and Medium Enterprise Development in
developed and developing countries
http://www.enterweb.org/
114
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
First Nations Effective Practices: Getting Things Done in Aboriginal Communities,
Businesses, and Organizations
http://www.inac.gc.ca/pubs/fnepi/
Harvard Project on American Indian Economic Development
http://www.ksg.harvard.edu/hpaied/intro.htm
Indian Economic Development (USA)
http://aspe.os.dhhs.gov/96cfda/p15032.htm
Indian Loans-Economic Development (USA)
http://ntserver.advance.org/sbc/GOVIND.HTM
“Infrastructure in a Structural Model of Economic Growth.” Abstract of an article by
Douglas Holtz-Eakin and Amy Ellen Schwartz, Regional Science and Urban Economics,
Vol. 25 (1995) 131-151.
http://www.elsevier.com/cgi-bin/ca
“Jobs Evaluation: Child Impact Study”, pgs. 1-16
http://aspe.os.dhhs.gov/hsp/cyp/jobchdxs.htm
JOBS Evaluation: Early Findings on Program Impacts in Three Sites
http://aspe.os.dhhs.gov/hsp/isp/XSIMPACT.HTM
Job Training (Iowa state)
http://www.pionet-net/~nwiowa/stormlake/SLADC/train.htm
“Moving to a Higher Standard: New Directions for Accountability and Program
Improvement.” Article by Gary Hoachlander. (Vocational education in the U.S.)
http://vocserve.berkely.edu/CW84/NewDirections.html
Nebraska Tribal Development Summit Final Report, 93 & 95 Reports
http://crd.ded.state.ne.us/
Northern Territory Government Implementation Report on the Recommendations of the
Royal Commission Into Aboriginal Deaths in Custody (RCIADIC) (Australia)
http:/www.nt.gov.au/oad/rciadici.html Seattle Indian Center — Employment and Training
Department (JTPA)
http://www.brigadoon.com/~seaindn/emplotrn.htm
Office of Aboriginal Development, Northern Territory Government (Australia)
http://www.nt.gov.au/ntt/9697bps/bp2/b2ps31.html
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
115
Office of Indian Education Programs (USA)
http://shaman.umn.edu/oiep/home.htm
Tribal Self-Governance Demonstration Program
Planning and Negotiation Cooperative Agreements and IHS Compacts (USA)
http://aspe.os.dhhs.gov/96cfda/p93210.htm
Public and Indian Housing Economic Development and Supportive Services (EDSS)
Grants http://www.tdh.texas.gov/hrs/support/rls/fic/8-16-96b.htm
Tribal College Education Equity Grants Program — USDA
http://web.fie.com/htdoc/fed/agr/crs/edu/prog/min/agrpgaag.htm
United States General Accounting Office, Labour Issues, Report No. GAO/OCG-9319TR http:/wiretap.spies.com/Gopher/Gov/GAO-Trans/labor.019
“U.S. Senators Say Gaming is Critical Tool for Indian Economic Development”
http://one-web.org/oneida/press-release/gaming212.html
Western Economic Diversification Canada — Manitoba Community Futures
Development Corporations
http://data.ctn.nrc.ca/mb/content/type1/org392/div635/division.htm
Whitman, David. The Key to Welfare Reform. June 1987
http:/www.theatlantic.com/atlantic/atlweb/flashbks/welfare/whitmanf.htm
116
Literature Review on Employment, Labour Market and Economic
Development Policies, Programs and Services for Aboriginal Peoples
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