Tribal
economic development in Indian Country is a growing field needed to address often
forgotten communities. Native people often live in rural communities, and
unemployment rates on reservations are often above fifty percent.[1] In
short, the need for jobs and economic investment is huge. Thus, the investment
in tribal economic development is important because tribes can become more self-reliant
and support their communities.
There is so much
potential for economic growth in Indian Country, and with the right tools and
guidance, tribes have real possibilities to become economic powerhouses. For example,
the Mississippi Choctaw has become one of the ten largest private employers in
the state of Mississippi.[2] Economic
development, however, cannot be done without addressing significant challenges.
The biggest areas where tribes struggle with economic development are
management, cultural awareness, planning, and the eventual outcomes of economic
development. This post will explain a brief history of tribal economic
development, recent developments in the field, and some tools tribes can use to
further their economic development.
Background
Many
tribes have a history of poverty, but some tribes have built thriving self-sufficient
economies. The characteristics of the most successful tribes should be followed
by tribes looking to grow their economic development. The common denominator
for the most successful tribes is their focus on tribal sovereignty to maximize
economic opportunity. Two of the biggest enterprises in Indian Country are
gaming and natural resources extraction.
Tribal gaming is
usually the first thing people think of when they hear about tribal economic development,
and that is for a good reason. Tribal gaming is an extremely lucrative business
for tribes. Since the enactment of the Indian Gaming Regulatory Act tribes have
been allowed to host gaming on their reservations. Gaming in Indian Country is
a multibillion-dollar a year venture (almost $30 billion in 2015).[3] In
Michigan, there are twenty-four tribal casinos that have generated over 28
million dollars for tribes.[4] What
makes Indian gaming unique is the funds often go straight back into the tribe.
For example, most tribes use the funds for essential services such as tribal government,
education, and infrastructure.[5] Another
unique aspect of tribal gaming is State government are not permitted to
interfere with tribal gaming on tribal lands.[6] With
limited economic opportunities, casinos have become the economic lifeline for
many tribes. Casinos have also led to a diversification of economic development
such as an increase in tourism and hotels. Thus, Casinos provide revenue, jobs,
and that revenue goes to essential tribal services. If qualified, tribes should
prioritize the implementation of gaming.
https://www.casino.org/blog/10-things-you-should-know-about-native-american-casinos/The Best Way Tribes Can Grow Their
Economies
Cultural
considerations are an often-forgotten aspect of tribal economic development. Community
economic development is not focused on aimlessly pouring money into communities
of need. Instead, community economic development focuses on developing business
and employment opportunities. Every tribe has a unique culture that should be
considered when planning economic development. This is an often-forgotten
consideration in tribal economic development planning.
As mentioned, tribes
face several serious issues in economic development. The biggest areas where
tribes struggle is the management, planning, and the eventual outcomes of
business development.[7] The
best way to address these issues is to prioritize tribal sovereignty above all
else. This approach focuses on tribal sovereignty to build economic development
from within. The 1975 Indian Self Determination and Education Assistance Act
asserted that tribes have maximum control over their affairs. Instead of government
officials or outsiders telling tribes what is best to do with their resources,
this system allows for tribes to put economic development into their own hands.
Growing tribal sovereignty means tribes will have more of an interest in their
resources because they will be directly responsible for the decisions. Further,
with their interest in mind, tribal self-government will have to grow. This
system will foster the education of tribal members in business matters and
allow for cultural considerations to be at the forefront of business decisions.
There are
resources such as federal grants for tribal economic development.[8] In
Michigan, state grants are available to assist eligible recipients, including
tribes, in “creating regional economic development plans designed to stimulate
and guide the economic development efforts of a community or region.” [9] These
resources are available to help kickstart economic initiatives in Indian
Country.
Tribal economic
development also benefits surrounding communities. In Michigan, in 2019, tribes
added $288.8 million to the state economy and created 1,847 jobs.[10]
The jobs are also higher paying than the average salary in Michigan. The
economic activity comes from tribes doing business with vendors, suppliers, and
consultants throughout the state.[11]
This business then generates tax revenue for the federal government and the
state. Even though tribes do not pay taxes the business generated by the
economic activity benefits the surrounding communities with jobs and business
partnerships with non-tribal entities.
Overall, tribal
economic development has drastically improved in the last thirty years, but tribal
nations still face impoverished conditions. There is much potential for tribes
and if tribes use their sovereignty to their full extent, then economic
development will improve.
[1] https://www.ncai.org/policy-issues/economic-development-commerce/economic-development
[2] https://www.thegreatcoursesdaily.com/how-native-americans-use-the-gaming-industry-to-revitalize-their-communities/
[3] https://equitablegrowth.org/sovereignty-and-improved-economic-outcomes-for-american-indians-building-on-the-gains-made-since-1990/
[4] https://www.michigan.gov/mgcb/-/media/Project/Websites/mgcb/Tribal-Gaming/AnnualReports/2020_Indian_Gaming_Annual_Report_FINAL_41521.pdf?rev=ff84312d97294665948e493f7e6f5e5e&hash=36AB6E6F0AC8698E4788A85EEFCD81D7
[5] https://www.washingtonindiangaming.org/four-things/.
[6] California
v. Cabazon Band of Mission Indians, 480 U.S. 202 (1987)
[7]
Cornell, S. (n.d.). Two Approaches to Economic Development on American
Indian Reservations: One Works, the Other Doesn’t . Retrieved from
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=https%3A%2F%2Fwww.honigman.com%2Fmedia%2Fsite_files%2F111_imgimgjopna_2005-02_Approaches.pdf&clen=166689&chunk=true
[10] https://mibiz.com/sections/economic-development/michigan-s-tribes-add-288-8-million-to-state-economy-via-non-gaming-businesses
[11] Id.