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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
                Population
 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
                Employment
 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
                     GDP
 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%.
                 Infrastructure
 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
 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 re-
  assessment of spending priorities plus
  securing additional revenues over the short
  to medium term.
 Physical and human capital needs must be
  addressed
                     Results
 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
                    NEDS
 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
                Challenges
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
                Challenges
In the Government
 Relationship with communities
  – Capital infrastructure
  – Education
  – CED
 Relationship with Inuit organizations
 Relationship with other governments
             Solutions
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
                    NEDA
 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
             Solutions
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
               Solutions
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.
               Thanks
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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