Thursday, June 16, 2011

Nation Building Case Study for Alaska Native & Native American Tribes

Nation Building Case Study for Alaska Native & Native American Tribes

By

Terrance H. Booth, Sr. – Tsimshian

We have outstanding models to follow to for example the quest for self-reliance and economic independence was the purpose of India’s famous person Gandhi. He led his nation to self-reliance by the making of salt. At that time in India’s history they were under British rule. Gandhi’s thoughts were for the welfare of his people.

Joel Kotkin, author of “Tribes,” writes about Indians of India, in his chapter “The Greater India, under Indians Aboard, “…the Indian immigrants have made a generally quick and successful adoption to life in advanced countries. Virtually wherever they have settled, they rank among the most professionally and economically mobile of all groups. In settings as diverse as Malaysia, the United kingdom and North America – Indians, most particularly Hindus, consistently display higher than average levels of education most notably in technical areas.” 1

The above written because Gandhi wanted to free his people from British rule and did it by non-violence approach and producing salt and their own fabric for clothing. He not only achieved independence but also gave a focus of economic stability, self-governing, and self-reliant. Just an inspiring example of what one noted leader can do for a whole nation.

Indian Country, USA has several tribes that are becoming successful. It is reported by Small Business Office of Native Affairs: Ron Johnson: “It is reported that there are more than 200,000 American Indian- and Alaskan Native-owned businesses and these businesses have receipts of more than $26 billion. In addition, Native Hawaiian-owned businesses are booming and they are creating businesses at triple the rate of other ethnic groups. Native Hawaiian-owned businesses are 29,000 strong, bringing in $4.3 billion in revenues” 2
“According to the U.S. Census Bureau, there were 236,967 American Indian- and Alaska Native owned businesses in 2007, an increase of 17.7 percent from 2002. The total number of U.S. businesses increased by 17.9 percent. American Indian- and Alaska Native-owned businesses generated $34.4 billion in receipts in 2007, a 28.0 percent increase from 2002.” 3
Alaska Native and Native American businesses need to look at their own buying power of their own people. Some Native businesses have recognized this buying power and succeeding. Also, Native businesses need to serious look at the economic leakages. If a tribe does not have a tribal utility company where do the payments go? It goes to off-reservation utility company. If a tribe does not have its own Native-owned and operated grocery store where does the dollars go? It goes off the reservation setting. If a tribe does now have a tribally owned gas station where do the dollars go? Again, dollars spent goes off-the reservations setting. If a tribe does not have it own clothing store where do the dollars go? Still, again, the dollars leaves the reservation settings. These are examples of economic leakages. Look at your own tribal government spending many dollars leave the reservation settings just in goods and services. Some of the Native businesses are capturing these dollars that are leaving the reservation settings and keeping the dollars on the reservation settings. By this they are creating wealth for their reservation and their people. On the buying power of Alaska Native and Native Americans look at these figures: “Native Americans comprise one percent of the population and control $67.7 billion in disposable income. Their buying power is expected to grow to $90.4 billion in 2015, an increase of 34 percent.
The Selig Center report notes that the growth in Native American buying power is supported by rapid population growth and growth in the number of Native-American-owned businesses. Despite the fast-paced growth, however, Native Americans account for 0.6 percent of the nation’s buying power, which is up slightly from the 0.5 share in 1990.” 4
Some of the Native businesses are tapping into the buying power of their own people. Thus, becoming successful and they are being listed among the Fortune 500 companies of America. Alaska Native and Native American Tribes that sell their raw resources to buyers should give serious consideration to value adding their resources. Checking on the Internet 7.5 Oz of Pink Salmon ranges from $2.84 to $3.99 per can. Canned Sockeye Salmon 6 Oz. $5.59 to $6.59. The fresh salmon depending upon species varies from $8 to $18 dollars a pound. Several grocery store chains because of the cultural diversity of America have ethnic food sections. Featuring the different cultures of America in their ethnic food section. On part of the Alaska Native and Native America fisheries several Native Seafood Processors participate in the harvesting and processing, some canning salmon and sell salmon fillets, or whole salmon or fresh or frozen salmon to several buyers who reap much more benefits value adding the salmon. Consideration should be given to gift packaging of canned or smoked salmon by adding this additional step of value adding and putting a Native label on finished seafood product creates much higher pricing on finished seafood product. Fisheries tribes can reap much more revenue by value adding their salmon harvest by processing, canning, value adding and adding Native labeling to finished product with Native designs will greatly enhance their product and establishing a unique Native niche in the marketing of their seafood. Even have special tribal perspective in marketing and sales because seafood is in their art, dances, music and stories. Several of the grocery stores chains have a diversification programs whereby minorities can have their products sold within their stores. Better yet Alaska Native and Native American Tribes can create their own grocery store chains and have their produce and products featured in their own Native Stores. For Agriculture for several tribes has made an economic impact in there earning of revenues. A report by National Congress of American Indians on Agriculture: “Agriculture has been the second leading employer in Indian Country, and is the backbone of the economy for about 230 tribes. According to a 2002 report, American Indians operated 56.8 million acres of land and sold $1.64 billion of agricultural products, including $781 million of crops and $857 million of livestock.” 5 So instead of selling raw product or produce why not the tribes in agriculture value add their raw products or produce to even gain more revenues and thus create substantial tribal wealth development.
Forestry tribes instead of just selling whole tree to buyers take the tribal forestry business steps further in the implementation of sawmills with special cutting of logs for indoor and outdoor applications of wood products. Adding kiln-drying operation can bring addition revenues with specialty cuts for kitchen cabinets, doorframes, window frames, moldings, wooden furniture, decking, fences, wood for construction and other uses of wood products. An Alaskan kiln drying study reveals: “Many of the smaller sawmills in Alaska have identified kiln drying lumber as a value added process that will enable them to sell into local retail markets and to diversify the types of products they can market. One of the important elements of successful marketing is being able to grade and stamp lumber according to standardized criteria and rules. Grade stamps provide lumber buyers with useful information about lumber quality and recommended uses. Regional grading agencies, including the
Western Wood Products Association (WWPA), which serves Alaska and other Western states, can be retained to provide lumber inspection and grading services.” 6

Arts and Culture is a huge business in all of America. A economic study by Arts in American, titled Arts and Economic Prosperity III show us this: “America’s nonprofit arts and culture industry generates $166.2 billion in economic activity every year—$63.1 billion in spending by organizations and an additional $103.1 billion in event-related spending by audiences. The national impact of this activity is significant, supporting 5.7 million jobs and generating $29.6 billion in government revenue.” 7

What does arts and culture mean to Arizona:
Economic Impact in Arizona
$498,271,772Arts organizations: $219,729,452
Audiences: $278,542,320
Employment, FTE: 15,273
Local government revenues: $22,989,000
State government revenues: $29,116,000 8

What does arts and culture mean to California:
“Since 1994, the impact of nonprofit arts and culture on California’s economy increased by 152 percent to $5.4 billion. The 2004 study demonstrates that arts and culture generate billions annually, support a workforce of more than 160,000 and produce nearly $300 million in state and local taxes. It also shows that education, cultural tourism, and California’s creative industries are all nurtured by the nonprofit arts sector, and substantiate the significant role of the nonprofit arts to California’s economic well-being and status as the world’s fifth largest economy.” 9

What does arts and culture mean to Alaska:
Art and Economics
“In FY 05, the $460,000 in state funds which supported arts organizations in Alaska generated more than 16 million dollars in revenue. Just about half of that amount was earned from admissions, tuition and sales of services. Occurrences in arts activities in Alaska were approximately one million people.
4,500 Alaskans-about 2% of the entire workforce-earn income from arts-related activity-more than Alaska's mining industry, the residential construction industry and the banking sector. This direct arts employment includes arts-related organization, art retailers and an estimated 3,000 producers of Alaska art and fine crafts. (McDowell Group)
Arts-related spending by individuals employed in the arts results in an indirect economic impact of the arts industry at approximately 600 jobs and $16 million in payroll. (McDowell Group)
Nearly 7 in 10 urban Alaskans buy tickets to performances. More than 8 in 10 Alaskans believe the arts improve the quality of life in Alaska. Nine in ten people agree that the arts are very important to children's education.” 10
Alaska Native Cultural Heritage Center is a busy Alaska Native owned and operated cultural center that keeps busy year around. It has incorporated in a village style setting all of the tribes of Alaska within its campus. Summers it is busy with tourism and the Center brings into its facilities tribal dancers, tribal musicians, tribal storytellers, tribal artists and noted tribal leaders to create cultural awareness of the tribes of Alaska. Conversely, states with large Native populations like Arizona, California and Oklahoma can built intertribal cultural centers for one of the reasons is we can see in public parks, national parks, cultural events and powwows our Native Artists selling their artwork wherever they can find a place to market their work. They need a Native place to sell their artwork where it can be shown in Native owned and operated art galleries with working studios with proper settings to display their artwork to the general public. First Friday in Phoenix, Arizona Art Walk attracts upwards to 10,000 people to see the artwork of artists of the greater Phoenix area. In Scottsdale, Arizona that city has incorporated as their summer attraction Native American Performers who keep busy during the summer.
Tribal Tourism across Indian Country, USA is growing and Native Tourism Alliance sees it as “Building Economic in Indian Country. Native peoples, using ancient knowledge and traditions supported by modern skills can effectively create attractive businesses that are culturally, ecologically and economically sustainable.
We seek ways to work together on a local, regional, national and global basis to improve the well-being of our communities, our natural resources and our shared cultural heritage through tourism.” 11
This writer’s father once said.” To really look at tribal economic development in reality is a re-discovery of ourselves.” A quote from the Late Ira C. Booth, Tsimshian Historian, Former Tribal Judge, and researcher of the Tsimshian Nation. He then when on to give the trade route of the Tsimshian that extended all the way up to the ice edge of the Arctic Circle down to Washington Coast, Oregon Coast, California Coast, Central America Coast and to part of South America Coast. So this writing is to bring about globalization awareness and show the possibilities of the formation of new opportunities of creating tribal substantial wealth development. We have many funding sources to turn to from federal government programs, Native Banks, Native friendly investors, many books written on tribal economic development, available technical assistance and training from Native American Consulting firms, and outstanding examples of what each one of us are doing as tribes to enhance the possibilities of creating wealth for our tribal people and for our future generations to come. It can be an opportunity to awake what our ancestors did with trading and bartering. Perhaps one tribe has the raw resources and another tribe has the ability to value add the raw resources.
In British Columbia some of the First Nations have seafood to harvest; but do not have any seafood processing plants. Thus, they work for others and sell to others who reap more benefits financially by value-adding the seafood product. Other First Nations in British Columbia do have seafood-processing plants they should extend to other First Nations and enter into memorandum of agreements and work with one another.
A huge opportunity awaits us and that is alternative energy. Every tribe in North America has biomass, solar, water, and wind that can be converted into energy. In Southeast Alaska Haida, Tlingit and Tsimshian have an awaiting opportunity to develop tribal energy parks to sell energy to the Southeast Alaska Intertie that will one day connect to BC Hydro. Landfills, sewer lagoons and fish waste all can be converted into energy. Some tribes near large urban areas are starting to buffer up right to their reservation boundaries. Who provides and sells them energy non-Native utility companies. Are we going to take advantage of growing population and their needs in energy? It not only creates jobs but also can create substantial tribal wealth. One tribe in New Mexico chose alternative energy over gaming and that shows that they will be on the road for tribal economic stability.
If we as tribes can come to terms and collectively work together to see how we can create substantial tribal wealth development for the good of our tribal people and for our future. It is time to take bold steps to creating a new tribal financial environment and new tribal economic goals and create globalization thinking for all tribes and work to step out of poverty, some tribes are paving the way, let us follow suit and brighten our tribal future. First Nations are going to China for investors, joint ventures, and partnerships for their tribal projects and creating economic opportunities for their tribal settings and for their tribal people. It can happen lets move forward.