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									Community Economic Development in Nunavut
Challenging Opportunities

EDAC Conference September „05

25 communities, 28,000 people, 2,000,000 sq km

 Nunavut in 1996 had 24,730 people,  in 2001 there were 26,745, an increase of 8.1% (more than twice the national average of 4% and the second highest rate of growth after Alberta with 10.3%  Nunavut‟s population is 85% Inuit; Iqaluit the capital has an Inuit population closer to 60%  At the 2001 Census 60% of the Nunavut population was under the age of 25, 41% under the age of 16

Nunavut Stats
 Nunavut has 23% of Canada‟s landmass and 2/3 of the Canadian coastline.  There are 25 incorporated communities and only one 17 km stretch of road  Marine infrastructure is limited with only one port, associated with Nanisivik Mine ( a lead/zinc mine located at the north west end of Baffin Island – now closed)  Communications infrastructure, as of summer of 2005, has broadband access available in all Nunavut communities; cell-phone capability only in Iqaluit.

Stats cont‟d
 Inuktitut is the official language of Nunavut, along with English and French. The 2001 Census reflected the breakdown of language by mother tongue as 71% Inuktitut, 26% English and 2% French.  immediate demand for public housing in 2004 was 3000 units, plus 270 per year to address expanding population  Nunavut‟s 10 Year Inuit Housing Action Plan indicated $1.9M would be needed to address the plan

 The major employer in Nunavut is government, Federal, Territorial and Municipal/local – employing two thirds of the total employed – in 2004 this represented 6235 people.  The 2001 Census showed 83.5% of the population had less than high-school education.  Average household income is lower than that of other northern territories and the rest of Canada at $28,215.  Household incomes are derived from both wage and land based activities based on Inuit traditions and culture of sharing.

Unemployment cont‟d
 2001 Census listed the unemployment rate in Nunavut, based on the national definition, was 17.4%, on a labour force of 11,359 (national definition „looking for work‟)  Inuit unemployment rate is identified as 22.9%  True reflection when „no jobs available‟ definition is used is much higher

 2004 GDP was noted at $831M and demand at $1.63B = leakage at 51¢ for every $1 spent; a trade deficit of $794M  Nunavut‟s wholesale sales are noted at $43,912,000 in 2000, and $25,433,000.00 in 2004, retail sales are shown at $201,672,000 in 2000, and $233,155,000 in 2001.  More than 60% of total GDP is government spending on goods and services, the national average is 22%.

 Nunavut has one fully operational Hospital located in Iqaluit – Rankin Inlet and Cambridge Bay Health facilities are being completed in 2005 and will be fully operation once fully staffed  One French School also located in Iqaluit  Nunavut Arctic College with a major campus in Iqaluit, smaller campuses in Rankin Inlet and Cambridge Bay  Nunavut Legislative assembly is located in Iqaluit  Government of Canada offices are in Iqaluit  Iqaluit International airport, 8,600 foot runway

 Iqaluit is the Capital of Nunavut, officially designated on April 17th, 2001  2001 Census showed a population of 5,236 people, an increase of 24.1% since 1996, & 19.6% of the overall Nunavut population.  City of Iqaluit estimates the population of the City in 2005 to be close to 7,000.  In 2005 City of Iqaluit licensed approximately 450 businesses operating in City limits.  All industry sectors are represented in Iqaluit, however statistical collection and analysis is difficult.

Iqaluit Airport

Nunavut – Why?
 Nunavut was created in 1993 when the Nunavut Lands Claims Agreement & the Nunavut Act were signed  Nunavut became official April 1st, 1999,  Although based on an Aboriginal Land Claim it is a public government for all Nunavummiut.  The GN‟s sustainable development strategy is based on:
– a mixed economy – land and wage based – sustainable use of natural resources – IQ – Inuit Qaujimajatuqangit – Inuit traditional knowledge and

consensus decision-making – all communities must benefit – self reliance – young population

Nunavut Economic Outlook 2001 Development in Nunavut
 all human activities undertaken to achieve well-being are open to economic assessment: life sustenance, self-esteem and freedom of choice.  Economic Development (wealth creation) considers not just money, but how time & resources are used to achieve personal & societal objectives.  Economic growth is required for a society to achieve its development objectives,  a traditional land based economy cannot keep pace with demands for goods & services in an industrial economy.

Wealth Creation
 based on four areas of capital – Physical, Human, Natural, and Societal or Organizational.  Physical Capital – infrastructure: roads, water/sewer, transportation and communication networks, housing, hospital  Human Capital – labour, education, skill, health  Natural Capital – raw material, land, wildlife, minerals, energy, knowledge  Social/Organizational Capital – interaction between Physical, Human and Natural capital and all other public and private organizations.

Cambridge Bay

Nunavut‟s Capital Issues
Physical Capital:  serious problems in housing and commercial space,  sewage and waste management systems,  affordable transportation and telecommunications networks,  child care

Capital Issues cont‟d
Human Capital:  rapidly growing population,  youngest population in Canada,  lower life expectancy than national average – 7 years for men and 10 for women,  Education levels low  traditional „on-the-land‟ knowledge needs to be encouraged

Capital Issues cont‟d
Natural Capital:  knowledge and research (science) is limited or only now being collected – vital to the mixed economy future

Capital Issues cont‟d
Social/Organizational Capital:  Nunavut Land Claim Agreement: – representative hiring and preferential procurement, Inuit Impact Benefit Agreements, co-management control over natural resources and harvesting (government, Inuit organizations, private sector and institutions),  economic development programs, business relies on government business (supply and demand),  public institutions oversee management of development involving land and resources.

Mixed Economy – land and wage based
 Value of land based economy is hard to validate statistically – estimated at between $40M and $60M with approximately $30M for all food oriented values (replacement cost)  Child care, volunteer labour, sharing of assets, and arts and crafts production are mostly unrecorded and therefore not included.  Role in advancing Inuit human capital (hunting, sewing and land skills), and contributing to the social fabric are important elements

Overview of wage-based economy
 Trade deficit ramifications are mitigated by the size of the inflow from federal government in transfers & direct wages.  Government growth will eventually flatten out, population growth will continue, causing a slow down in economic growth & a per capita decline.  Government growth resulted in private sector support services, employment & money circulation becoming increasingly important.  Key growth sectors identified as hunting, fishing, mining, tourism, manufacturing, construction & government. – training and education are needed to meet the requirements of employment in all growth sectors.

Conference Board of Canada (NEO 1) report
 forecasts real GDP to expand an average of 2.42% compounded annually from 1999-2020.  1st 10 years fastest due to the creation of Nunavut  mining, tourism & fishing have greatest potential  all economic development potential is dependent on the development of all forms of capital  land based forecast will depend on the carrying capacity of natural resources, population growth, value and skills of youth for land based activity.  Growth of both land and wage economies are interconnected (ie tourism growth based on ability to market traditional ways)

Key Impact - Values
 collective approach to socio-economic development (share, decentralize)  Greater self-reliance  IQ – value and integration of Inuit knowledge  Economic development must begin at the community level  Land based economy is key and must be supported  Sustainable development – human and natural capital is equally important

Key Impact - Awareness
 Knowledge about Nunavut needs to be improved about:
– – – –

Health and social status Natural capital and lack of public geo-science Land-based economy and how it functions Wage based economy

 lack of Nunavut specific data, small population and difficulty in capturing land based economic information.  status and potential of four forms of capital is needed to secure private and public investment

Key Impact – Human Capital
 Education and skill development for today and tomorrow  Young population, self reliance, representative government employment  Value private sector careers

Key Impact - NLCA
Nunavut Land Claim Agreement  Implementation of Article 23 (hiring) and 24 (procurement), requires commitment and clear provisions

Key Impact – Key Players
 Must be clear on the uniqueness of Nunavut – demographics, limited physical capital, large undeveloped potential  Federal government needs to be clear that per capita funding doesn‟t fit Nunavut‟s stage of development  Collaboration and cooperation between public, private and government is critical to success.

Key Impact - Investment
 Revenues to finance wealth creating investments must come through reassessment of spending priorities plus securing additional revenues over the short to medium term.  Physical and human capital needs must be addressed

 Achievable objectives must be clearly stated as well as a re-assessment of existing ones
– 85% Inuit employment, if linked to education and

training, is realistic and achievable over the long term, but not the short or medium term. Based on working age population, not overall considering median age of 24.

 administrative careers at any government level or in private sector must be seen as a desirable career choice.  beginning with the basics and working steadily forward – expectations are optimistic.

What Next – after 2001
 Conference Board re-evaluated the Nunavut Economic Outlook based on the 2001 Census initial stats and produced NEO II in 2002. The results and recommendations held from the original research.  The GN and NTI embarked on the development of a Economic Development Strategy for Nunavut

 The NEDS released fall of 2003 after considerable consultation with residents, organizations and governments across Nunavut.
– 13 strategic priorities were grouped into 4

strategic planning areas:
• • • • The Land The People Community Economies Territorial Economy

NEDS Implementation
 Guiding principles:
– Cultural Integrity – IQ, language, culture

– Determination & Realism – prioritize, creative use of



resources Self-Reliance – build capacity, participation of individuals, families, communities Community Control – develop assets, respond to economic opportunities Co-operation & Coordination – integration of community and economic development activities at local and territorial levels Sustainability – benefit youth and future generations

Opportunity Areas for Nunavut‟s Economy
 Mining/Oil & Gas  Harvesting  Tourism  Arts & Crafts/Cultural Industries  Public Sector – which is expected to level out within 10 years; future years growth will rely on the private sector

In the Community  Understanding of CED – integration  Capacity of individuals involved  Local government vs Inuit organizations  Statistical/demographic information  Ability to seize opportunities – education, infrastructure, private sector realities, connectivity, transportation and must be planned for

In the Government  Relationship with communities
– Capital infrastructure

– Education

 Relationship with Inuit organizations  Relationship with other governments

1. Community CED plans  Community CED committee training  Community CED implementation fund

CED Plans
 Most communities in Nunavut have a CED plan; review, updating or scrapping and starting over are underway  GN and INAC have funds available for CED planning and implementation in new programs recently announced

 Association for the professional development of Community Economic Development Officers in Nunavut  CED Workshops – built from a successful NL program training municipal officials, residents, and politicians about their role in CED  Socio-Ec Analysis Project – assist communities to research major project development impacts

2. GN department-wide policy on CED

GN CED Definition
 “CED is a community-based development approach that connects social, economic, environmental, and cultural goals for community well-being. It is a social and economic development in the community, for the community, by the community.”

GN CED Principles
        Sharing – having enough Community participation and ownership Build on strengths and assets Meeting social goals by business/economic means Respect for traditional and modern knowledge Simplicity and plain language Collaboration, good relationships and partnerships People working is association to use their individual talents and abilities for the benefit of the community

3. NEDS recognition of Community as key to economic growth 4. Communication & cooperation between all Economic Development agencies in Nunavut towards a common goal
New forums and working groups in place to meet this end.

Cheri Kemp-Long Economic Development Advisor Nunavut Regional Office, INAC Box 2200, Iqaluit, NU X0A 0H0 kemplongc@inac.gc.ca PH 867 975 4582 FX 867 975 4560

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