Nunavut: a potential new model for economic development.
Miller, Mark M. ; Rowe, James E.
1. INTRODUCTION
As economic development (ED) academics and practitioners, we are
constantly searching for new and alternative models of ED that may meet
the challenges of rural communities and low-income regions. Much of
modern ED theory and practice in the U.S. and elsewhere in the developed
world has focused on high technology, industrial clusters, and high
levels of human capital: factors in scarce supply for many disadvantaged
communities. The authors of this article both serve economically
challenged regions, in the U.S. South and the Australian North,
respectively. For a potentially fresh model, we turned in a
less-traveled (and, for the authors, much less familiar) direction: the
far north, specifically the Canadian Territory of Nunavut. Since much of
the classic development literature concerns regions such as U.S. South,
Africa, or Latin America, this article differs by presenting a
potentially new model that is derived from a unique ED framework from
the Canadian arctic that merits closer investigation.
Nunavut was created in April 1999, carved out of the Northwest
Territories. The tree line forms the rough demarcation between the new
territory and the remaining Northwest Territories, with nearly all of
Nunavut classified as arctic climate. This relatively new territory
includes nearly 20 percent of Canada's entire land area, but the
population as of 2012 is estimated at just 33,697 (Government of
Nunavut, 2012a), scattered across approximately 28 small communities.
The most recent (2011) census count for Iqaluit--Nunavut's largest
community and territorial capital--was 6,699 (Statistics Canada, 2012c),
while some of the other communities number only a few hundred in
population.
In many characteristics, the territory represents a classic lagging
development region. Nunavut's population is Canada's youngest,
with the highest birthrate of any province or territory in the country,
together with the country's highest unemployment rate--the latter
14.8 percent in 2012 (Statistics Canada, 2012e). Like other lagging
regions, Nunavut's population is heavily dependent on transfer
payments, government services and employment, and primary-sector
economic production (in particular, mining, fishing, and hunting).
[FIGURE 1 OMITTED]
However, the Nunavut model of development also represents much that
is distinctive among developing regions. The region's
aboriginal--Inuit--people were the driving force behind the creation of
the new territory, as a vehicle for ethnic self-determination (Mercer,
2008; Henderson, 2007; Dahl, et al., 2000; Duffy 1988).
"Nunavut" means "our land" in the Inuit language of
Inuktitut, one of the official languages of the territory. The
population of the territory is in large majority Inuit--approximately 85
percent--as is the territory's leadership. In comparison,
aboriginal peoples constitute 3.7 percent of the overall Canadian
population (Statistics Canada, 2011).
Inuit self-determination, as realized in Nunavut, is political,
cultural, and economic in nature. The Inuit people of Canada enjoyed
virtually no political representation until 1965, when the first Inuk
(singular of Inuit) was appointed to the governing council of the
Northwest Territories. The first Inuk was elected to the national House
of Commons in 1979 (Mercer, 2008). The vote in today's Nunavut is
open to all residents; since the territory's population is
approximately 85 percent Inuit, however, most of the local and
territorial leadership is Inuit, as well as the territory's
representation in national bodies.
In comparison with other lagging regions of the developed world the
Inuit have experienced a rapid rate of social transformation. Until the
1950s, when the Canadian government began aggressively promoting
permanent settlements to facilitate health care, education, and other
resources, the large majority of the Inuit people lived a traditional,
semi-nomadic, economic subsistence lifestyle (Duffy 1988). Most of
today's Nunavut population is only a generation or two removed from
a life of subsistence seal hunting, caribou-skin tents, and igloos.
Economically, the Inuit continue an uneasy transition from an informal,
largely communal economy to an increasingly commercial economy (Gombay
2005, 2011).
Nunavut is rich in natural economic resources, including gold,
uranium, iron ore, and other minerals, along with proven natural gas and
oil reserves. The area encompasses natural landscapes and wildlife with
tourism appeal; commercial fisheries; and hunting stock such as seals
and polar bears (Government of Nunavut, 2010b). Further, global warming
may expand the potential for exploring and exploiting such resources in
the future, as well as opening sea lanes for greater access to the
markets of the outside world (Smith, 2010). The 1993 Nunavut Land Claims
Agreement (NLCA) negotiated by the Inuit people, provided the Inuit with
a greater degree of control over their own resources, and perhaps
greater potential to shape their own economic destiny.
This paper seeks to answer three main questions: (1) What are
Nunavut's ED strategies? (2) Given the unique nature of Nunavut
itself, do these strategies suggest a distinctive model of ED for a
lagging development region? (3) To what extent are these strategies
being implemented, and what results have these strategies produced for
Nunavut? Field research (1) and review of the available literature
inform this paper and its conclusions.
2. THE CREATION OF NUNAVUT AND THE DRIVE FOR ECONOMIC
SELF-DETERMINATION
The capital city of Nunavut, Iqaluit was founded at the site of a
traditional Inuit camp in 1942 as a U.S. airbase. The Distant Early
Warning System in the 1950s established remote bases across Nunavut and
the Northwest Territories. These developments provided the region's
Inuit population with their first large-scale opportunities for
employment, public services, and permanent settlement. Prior to these
landmark events, "land was used and 'owned' as a
collective.... Before European contact, there was little competing
interest for the land where the original people resided. They lived on
the nuna [Inuktitut for "land"] and made use of its resources
and wildlife.... This is aboriginal title ... " (Mercer 2008,
31-35).
Discussion of land rights for the Inuit began in earnest in the
1960s, typically among the young Inuit who were studying at residential
high schools and tertiary institutions in the south (Mercer, 2008).
Originally these discussions included the Canadian Inuit as a whole.
Over time, however, the Inuit outside today's Nunavut opted out of
the discussions to pursue other development opportunities. On the
political front, the Inuit Tapirisat [brotherhood] of Canada (ITC) was
formed in 1971, out of the earlier 'Indian-Eskimo Association'
(Duffy, 1988; Inuit Tapirisat Kanatami, 2011). Shortly thereafter in
1973, the Calder v. British Columbia case, the Canadian Supreme Court
upheld the historic right to aboriginal title. Section 35 of
Canada's 1982 constitution further enshrines the rights of all the
country's aboriginal people. In another legal and intellectual
antecedent to Nunavut, the Inuit and Cree peoples of Quebec realized the
James Bay and Northern Quebec Agreement in 1975.
From the earliest years of its formation, the ITC used the
terminology 'Nunavut' and insisted on linking the formation of
an Inuit homeland with Inuit land claim negotiations--contrary to the
wishes of the Canadian federal government. Political self-determination
was essential to realize one of the ITC's primary goals:
development for the Inuit people based upon 'Inuit
Qaujimajatuqangit', commonly abbreviated as 'IQ' and
variously translated as traditional Inuit knowledge, principles, values,
institutions, organizational systems, or technology.
After a decade of complex, persistent, and difficult negotiations,
the Inuit and the Government of Canada reached a comprehensive land
claim agreement in 1993 (Nunavut Tungavik, Inc., 1993), with one unique
distinction from all other Canadian aboriginal land claim agreements:
the creation of a new political entity on the Canadian map, the new
Territory of Nunavut (Article 4 of the NLCA). In the process, the Inuit
of the new territory surrendered their aboriginal claims in exchange for
receiving legal title to some 350,000 [km.sup.2] of land--out of
Nunavut's total land area of 1,932,255 [km.sup.2,] or approximately
18 percent of the total. For perspective, the area of the Nunavut
Inuit's legal claim alone is nearly the size of the U.S. state of
Montana. The total land area of Nunavut is larger than that of
Australia's state of Queensland.
This comprehensive agreement specifies use of lands, waters, and
wildlife in accordance with traditional Inuit usage and knowledge--as
well as Inuit self-determination in economic resources and development.
Article 5 of the agreement, for example, establishes a Nunavut Wildlife
Management Board which grants the Inuk 'the right to harvest
wildlife'. In addition designated Inuit Organizations " ...
shall have the right of first refusal to establish new sport lodges and
naturalist lodges in the Nunavut Settlement Area ... " (Nunavut
Tungavik, Inc., 1993). Article 23 of the agreement details an aggressive
affirmative action program for expanding employment for the Inuit
population, through analysis, setting short and medium term goals,
removing discriminatory policies, recruiting and training. The agreement
also includes provisions for the Inuit population for preferential
government contracting, both for the federal and territorial governments
(Article 24); royalty sharing (Article 25); and Inuit Impact and Benefit
Agreements for all major development projects (Article 26). Article 27
specifies that Designated Inuit Organizations must be consulted prior to
"exploration, development or production of petroleum" or other
natural resources anywhere in Nunavut (True Inuit autonomy with regard
to non-renewable resources is tempered by long-standing debate over the
relationship in this regard between Aboriginal rights and Canadian
federalism [Government of Canada, 2012, 2010a; Hamley, 1995; Notzke,
1994]).
The proposed NLCA was made available in three languages--English,
French, and Inuit Iniktitut--and presented in numerous public meetings
across the proposed new territory (see figure 2 below). A majority of
voters in each of the three regions of the proposed Nunavut territory
ratified the agreement in 1992. Once ratified, the Agreement established
a detailed timetable for the vast amount of political discussion,
planning, and preparation that would be required for the official
partition of the Northwest Territories and creation of Nunavut Territory
by 1999.
[FIGURE 2 OMITTED]
3. NUNAVUT IN THE CONTEXT OF ED STRATEGIES FOR DEVELOPING REGIONS
Dahl, et al. (2000) ask "Does Nunavut represent a new type of
political economy and society, as some of its supporters claim?".
We question a more specific version of the same: Does Nunavut represent
a new type, or model, of ED for a developing region? If not, then how
does it fit into our standard typology of ED models?
ED organizations in Nunavut today would be familiar to most ED
practitioners from North America, New Zealand or Australia. The ED and
environmental functions were originally combined in one
department--emphasizing the Nunavut desire for sustainable
development--but later separated out to avoid potential conflicts of
interest. The functions of the present Nunavut Department of Economic
Development and Transportation include policy and planning, promotion
and recruitment, coordinating the efforts of local agencies, and working
with outside agencies and potential investors (Government of Nunavut,
2011a). The Nunavut Development Corporation (2011) and Nunavut Economic
Developers Association (2011, 2010) similarly hold functions that would
be familiar to most North American or Australasian ED practitioners.
The Nunavut Economic Forum (2011) serves as a clearinghouse for
economic data, analysis and policy; the Forum includes representation
from a broad range of Inuit organizations, territorial government
departments and other organizations, federal government agencies, NGOs,
municipal associations, and chambers of commerce. Their work is well
regarded across the Nunavut ED spectrum. In addition, Nunavut's
Designated Inuit Organizations are powerful and unusual ED players. The
Nunavut Land Claims agreement specified that Inuit organizations would
implement the terms of the agreement on behalf of the Inuit people
(Article 39). These organizations consist of the territory-wide Nunavut
Tunngavik Inc. (2011), plus three other, regional organizations
corresponding to the three recognized regions of the Nunavut territory.
ED planning in Nunavut also follows a pattern familiar to most ED
organizations or private firms: a vision which is guided by core values,
providing a foundation for measurable objectives and strategies for
achieving those goals (Barney and Hesterly, 2011; Collins and Porras,
1996). Building on earlier ED planning documents, the 2009 document
Tamapta: Building our Future Together, p. 3 (Government of Nunavut,
2009), reaffirms values and vision for the development of Nunavut:
OUR VISION
Guided by Inuit values and culture, by the year 2030:
* Nunavummiut will continue to have a highly valued quality of life
and a much better standard of living for those most in need.
* Individuals and families will all be active, healthy and happy.
* Communities will be self-reliant, based on Inuit societal values,
with reduced dependence on government.
* Nunavut will be recognized for our unique culture, our ability to
help one another, and for our useful contributions to Canadian and
global issues. Source: "Nunavut ED strategy"
The 2003 document, Nunavut Economic Development: Building a
Foundation for the Future (Sivummat Economic Development Strategy Group,
2003) articulates specific and largely measurable objectives toward
achieving the vision. For example:
Our Expectations for Harvesting [hunting] by 2013
* Land-based training will be integrated into schools as a means to
instill basic life skills and to maintain knowledge of the land.
* The number of harvesters will be maintained or will increase, and
the role played by women in the harvesting economy will be fully
recognized in economic development policies and programs.
* The allowable harvest of caribou and musk ox will amount to $35
million (2) annually in food and value-added production. (p. 9)
Our Expectations for the Arts Economy by 2013:
* This sector will contribute at least $50 million annually to the
Territorial economy, while providing 250 full time jobs, in addition to
maintaining its high rate of participation by thousands of Inuit.
* The contribution made by women to the arts economy will be fully
recognized.
* We will identify and work for the removal of trade barriers to
the export of Nunavut art made with bone, baleen, ivory or skin.... (p.
12)
Our Expectations for Mining by 2013....
* We will establish 100% reclamation bonding for all mining
activities.
* A geoscience database will be established, covering at least 75%
of Nunavut's landmass, to support exploration and investment
decisions.
* There will be at least four mines operating in Nunavut.
* No less than 50% of all expenditures associated with mineral
exploration and production will accrue to Nunavut's labour force
and businesses....
* A sustainable mining policy and development strategy will be in
place. (p. 21)
A number of subsequent assessment reports (the latest: Nunuvut
Economic Forum, 2010) and "report cards" (North Sky Consulting
Group, 2009) track progress toward these objectives in qualitative and
quantitative terms. What, then, are the strategies to realize these
objectives? And, how do these strategies fit into the context of ED
strategies elsewhere in developing regions?
Classic developing economies are characterized by a heavy
dependence on natural resource extraction--generally with fairly little
value added beyond simply licensing or export sales. Much of ED theory
and practice, in turn, has focused on industrial development and
building a more diverse economic base. Roots of modern ED theory and
practice can be found in the challenges of the U.S.'s own lagging
regions (Miller, 2009). The 1930s' Tennessee Valley Authority (TVA)
provided one model of regional ED for decades in the U.S.: a top-down,
federally funded and planned administration of a lagging region that
crosses local political boundaries, is comprehensive in nature, and
emphasizes the region's unique natural resource assets. Development
from 'below' or 'within' (Stohr & Taylor, 1981)
later emerged as a counterpoint to the TVA's more top-down model,
but inspired relatively little academic or practical follow-up (Riker,
1994/5, Nel, et al., 1997).
In contrast, private sector-based, industrial (usually
manufacturing) recruiting--or what has been termed the 'first
wave' strategies of ED (Bradshaw and Blakely, 1999)--has emerged as
the still-dominant mainstay of ED throughout most of North America
(Economic Development Association of Canada, 2011) since
Mississippi's Balance Agriculture with Industry Act of the 1930s.
Despite its near-ubiquity elsewhere, first wave, industrial recruitment
strategies play a relatively little role in Nunavut's ED efforts.
Lack of infrastructure and energy, high transportation costs, and labor
shortages render large-scale manufacturing largely moot in Nunavut.
External investment, especially in the mining industry (as will be
discussed below), appears to be driven mainly by the territory's
resources and commodity price levels, rather than salesmanship.
'Second wave,' enterprise zone-type strategies are not
represented in Nunavut (3). To the contrary, Nunavut presents a higher
regulatory burden for business than most other regions of the country,
in terms of hiring practices, cultural sensitivities, environmental
concerns, and so on.
The 'third wave' strategies of ED, inspired largely by
Porter's (1990) work--widely embraced across the U.S., Australia
and Canada (Invest in Canada 2011)--emphasizes human capital as a
critical local resource. The concept of human capital as key to modern
successful ED is also central to Florida's (2004) theories of the
'creative class.' Social capital theory, meanwhile, emphasizes
the importance of human interrelationships within and among communities
(Putnam, 2001; Hutchinson and Vidal, 2004).
One might argue that IQ-based planning for Nunavut's ED
antedated Florida's (2004) popular conception of the Creative
Class; Nunavut ED officials half-joke that the Inuit's unique
survival abilities in their harsh environment represent an original
example of a 'knowledge-based economy' (Government of Nunavut,
2010). Specific strategies that employ IQ or the local creativity
community include traditional arts and crafts (Government of Nunavut,
2012e) and tourism which emphasizes the knowledge of expert local
planners and guides (Government of Canada, 2010b; Government of Nunavut,
2011e; Cohen et al., 2008; Snyder and Stonehouse, 2007).
Similarly, the emphasis of IQ on social networks and
community-based decision-making are familiar elements of social capital
theory, but were documented in Nunavut well before that theory gained
significant attention in applied regional planning and development
circles (Hutchinson and Vidal, 2004). Subsequent social capital research
in developing countries such as India has explored the tensions between
modern, commercial economies and traditional social support networks
(Henthorne et al., 2006). In Inuit society in particular, Gombay (2011)
notes the close relationship between the traditional communal
economy--in particular, the sharing of "country foods," or
fish and game--and the reinforcement and reproduction of social
relationships.
Blakely and Leigh (2009) suggest that today 'sustainable
development' represents a fourth wave of ED strategy. To some,
sustainable development (4) means development that must include (or,
perhaps, be constrained by) environmental and social as well as economic
dimensions (Reese & Sands, 2007, p. 26). Others argue that
sustainable development is ED that can be multiplied by the addition of
environmental and social dimensions (Roberts and Cohen, 2002; Slaper and
Hall, 2011).
The new Territory of Nunavut was guided by the Nunavut Land Claims
Agreement and the 1999 Bathurst Mandate (Australian Indigenous Law
Reporter, 2000). Both documents are filled with language that suggests a
sustainable approach to development, as per the following from the
Bathurst Mandate:
Self-Reliance (Namminiq Makitajunarniq)....
Principles that will guide us are:
* We will work within our means;
* We will incorporate traditional activities and values into new
strategies to participate actively in the development of our economic
resources;
* We will build on our strengths, respecting and highlighting the
unique elements of our residents, communities, and the environment and
economy in Nunavut;
* Nunavut residents should receive every opportunity to benefit
from public dollars spent in and by Nunavut;
Some of the earliest ED planning documents for Nunavut, and among
those most frequently cited in interviews, include Qanijijuq (Preparing
for the Journey) (Nunavut Economic Forum 2004) and the Nunavut Economic
Outlook: Examination of the Nunavut Economy (Vail and Clinton, 2001).
Outlook uses terminology of "sustainable development" (p. 9)
"social capital" (p. 8), and "new economy" (p. 9):
concepts that were in current, but quite limited, use in North American
ED practice at the time of the report. The concept of sustainable
development was in common use by that time in academic and advocacy
literature (Ross and Usher, 1986; World Commission on Environment and
Development, 1987). However, the concept did not become part of the
standard professional ED toolbox and jargon in the developed world until
the late 2000s (Friedman; 2008, Jones; 2008; Pernick and Wilder, 2007).
The 2009 fourth edition of Blakely's standard ED textbook was the
first to include a discussion of "sustainable development"
(Blakely & Leigh 2009).
Nunavut documents emphasize the specific, local, culturally-driven
meaning of the often over-used and under-specified concept of
sustainable development. There is an extensive literature on Indigenous
Knowledge in general, in the context of sustainable development, as well
as IQ in particular (Arnakak, 2011; Government of Nunavut, 2011c, 2011d;
Peter, 2000; Usher, 2000; Agrawal, 1995; Wenzel, 1999). The following
outline of IQ principles from a recent key Government of Nunavut
development document (Government of Nunavut, 2009) provides one brief :
Inuuqatigiitsiarniq: respecting others, relationships and
caring for people.
Tunnganarniq: fostering good spirit by being open,
welcoming and inclusive.
Pijitsirniq: serving and providing for family and/or
community.
Aajiiqatigiinniq: decision making through discussion and
consensus.
Pilimmaksarniq/Pijariuqsarniq: development of skills
through observation, mentoring, practice, and effort.
Piliriqatigiinniq/Ikajuqtigiinniq: working together for a
common cause.
Qanuqtuurniq: being innovative and resourceful.
Avatittinnik Kamatsiarniq: respect and care for the land,
animals and the environment. (p. 7)
One of the major specific strategies for sustainable development
focuses on mineral resources. The document Parnautit: A foundation for
the future Mineral Exploration and Mining Strategy (Government of
Nunavut, 2012d) lists "Community Benefits" and
"Environmental Stewardship" as two of the four
"pillars" for development in this sector.
It appears that the new territory intended from the outset to chart
its own ED path, without depending on current models or fads from the
academic literature (see Rowe, 2012, p. 74). The 2001 Nunavut Economic
Outlook makes only one explicit reference to an outside ED source, which
is a standard text on ED in the Third World (Todaro, 1989). After
careful reflection, perhaps the best fit for the Nunavut ED model lies
outside the traditional set of ED standards: the model of community
development / economic development (CED). The Nunavut model perhaps more
closely fits the definition of the Canadian CED Network (2011), as:
... action by people locally to create economic opportunities
and better social conditions, particularly for those who are most
disadvantaged.
CED is an approach that recognizes that economic, environmental
and social challenges are interdependent, complex and
ever-changing.
To be effective, solutions must be rooted in local knowledge and
led by community members. CED promotes holistic approaches,
addressing individual, community and regional levels, recognizing
that these levels are interconnected.
The Canadian model is based on Phillips and Pittman (2009) and
Pittman, et al.'s (2009) community development process that "
... produces assets for improving the quality of life and business
climate, and economic development mobilizes these assets to realize
benefits for the community" (Pittman, et al., 2009, p. 80). In the
Nunavut model, however, economic development can also be driven by
community development priorities such as cultural and environmental
sustainability, and political sovereignty. In Australia, mining
operations often are on Aboriginal lands. As a result, the mining
companies often reach agreements with the traditional land owners on
royalties and training programs for local indigenous people. The
royalties fund community and cultural development initiatives.
Gombay (2005, 2011) ties this viewpoint to the Nunavut model in her
studies of Inuit society: the " ... dual and parallel worlds in
which the Inuit live" (Gombay, 2011, p. 133) include both a
traditional society in which available food resources are freely shared
according to need, intersecting with the growing commercial economy.
Since 1959, efforts to develop Inuit cooperatives--especially those
focused on traditional arts and crafts--have attempted to stake out a
middle ground between these dual worlds (Arbess, 1966, 1967; Duffy,
1988). Gombay (2011, p. 166) concludes that "We live in a world in
which society must increasingly fit into what seems to be economically
rational. What I came to understand (through research in Nunavik) is
that many Inuit seem resolved to live in an economy that is socially
rational".
4. THE REALITY OF NUNAVUT'S ED PROGRESS AFTER THE FIRST DECADE
Has the Nunavut model been an ED success, over a decade since its
inception? Firstly, is the territory implementing its ED strategies?
Secondly, has Nunavut achieved ED in traditionally recognized terms,
such as more employment opportunities, lower unemployment, an expanded
range of employment opportunities--or, ideally, higher overall quality
of life indicators? Thirdly, in the face of inevitable pressures for
development and economic growth, has the new territory remained true to
its vision of a unique development path?
Implementation and infrastructure for development--Economic
development is happening in Nunavut: not uniformly across the population
or across communities, but certainly in a few communities such as
Iqaluit (government) and Baker Lake (mining). This begs the question,
however, of whether these developments are the result of ED practice and
implementation, or the result of ED as a natural process of the market
economic--driven by high commodity prices, for example.
The challenges are exacerbated by the global recession. As a
result, successful implementation of non-mining ED strategies is not
encouraging to date. Targeted sectors such as tourism, non-mining
construction, and the production of goods remain stagnant or in decline.
The public sector share of overall employment continues to hover around
50 percent, and government transfer payments continue to support a major
share of the economy (Nunavut Economic Forum, 2010).
Probably the greatest frustration expressed in interviews, however,
concerned the slow pace of implementation for the basic infrastructure
necessary to make real progress in ED possible. Nunavut continues--and
sometimes struggles--to invest in infrastructure, ranging from basic to
ED-specific. Officials proudly point out Nunavut's international
leadership in Internet access: every community in Nunavut has broadband
access via satellite, with plans for continued public-private investment
to enhance bandwidth, public availability, and classroom connectivity
(Government of Nunavut, 2010). Education spending has increased over the
past five years, both in overall dollars and in terms of real spending
per student (Nunavut Economic Forum, 2010).
None of the communities of Nunavut are connected by road or rail or
with any communities outside the territory. The only new road of note is
the 110 km all-weather road, which connects the Meadowbank gold mine
with the community of Baker Lake. It is the longest in the territory. A
possible road connection between Hudson Bay, Manitoba, and
Nunavut's Arviat and Rankin Inlet communities remains under study.
The project is estimated at over $1.2 billion, requiring over 50 bridge
crossings (Government of Nunavut, 2010).
Meanwhile, the territory remains largely dependent on the annual
'sealift' for nearly all basic commodities and supplies from
the south, which is limited to the few months between July and September
when containers can be sent by cargo ship from southern ports such as
Montreal. Even then they are often hampered by a lack of port facilities
and reliability problems (Windeyer, 2010b). A lack of port facilities
also limits the economic multiplier potential for cruise ships, which
primarily come to view offshore scenery and wildlife. Air is the
dominant mode of passenger transportation, including for health and
emergency care, at great expense (George, 2011).
In addition, immediate challenges exist because every community
relies on imported diesel for power, which must be carefully calculated
around the short annual sealift delivery season. Nunavut's arctic
climate, lack of infrastructure such as cranes, and other factors
present major obstacles to developing alternative energy sources such as
hydroelectric, tide, wind power.
Indicators of economic progress and quality of life-Nunavut ED
officials point with pride to the overall positive economic growth rate
since the birth of the new territory (Government of Nunavut, 2010).
Between 2000 and 2005, Statistics Canada reports an increase in median
earnings for full-year, full-time employees in Nunavut, from $50,542 to
$58,088 (14.9 percent), compared with the national median earnings
change from $40,443 to $41,401 (2.4 percent) (Statistics Canada, 2006)
(5).
Despite these gains, Nunavut remains in many ways a classic lagging
region. Although a decade of available statistics are too few to reflect
a major impact of territorial independence (2011 was Canada's most
recent census), anecdotal evidence suggests several persistent trends
that remain typical of a region that still faces development challenges.
Approximately 33 percent of Nunavut's population is age 0-14,
compared with Canada's 1 7 percent (Statistics Canada, 2012b). The
fertility rate for Nunavut remains the highest of any province or
territory of Canada, by a wide margin, at 3.00 for 2010, compared with
1.63 for Canada (Statistics Canada, 2012a). As a result, the Nunavut
population growth rate is the third highest among Canadian provinces and
territories (Statistics Canada, 2012d), although this growth is tempered
by substantial out-migration (Nunavut Economic Forum, 2010) even in
times of positive economic growth. Yukon recorded the highest population
growth rate (11.6%), followed by Alberta (10.8%).
Housing shortages, overcrowding, and poor conditions remain a
serious problem in Nunavut (Cusack and Jakub, 2007; Nunatsiaq News,
2010b). This is despite construction of approximately 1,150 new public
housing units by the Nunavut Housing Corporation since 2000. Poor
housing contributes to high rates of infectious diseases such as
tuberculosis (Zarate, 2010) and perhaps domestic violence (Nunatsiaq
News, 2011a). Nunavut's crime rate is the highest in Canada,
especially with regard to violent crimes, and continues to rise
(Nunatsiaq News, 2010a).
Industrial development--he mining industry dominates outside
private investment in Nunavut's economy. The Agnico-Eagle
Meadowbank gold mine, near Baker Lake, is the largest operating mine in
the territory today, employing about 200 local residents from a total
payroll of approximately 600. Local hiring has been limited to date by
available local skills, as well as Baker Lake's local population of
only about 1900 (6). The AREVA Resources Kiggavik Project uranium mine
planned near Baker Lake is controversial, but will likely open in 2018.
The very remote Jerico diamond mine, on the mainland, failed but was
recently repurchased (Windeyer, 2010a). There are extensive iron ore
reserves in vicinities of Clyde River and Pond Inlet, on Baffin
Island's eastern shore. Like most primary-sector industries,
investment and employment activities are subject to substantial
fluctuation and uncertainty; high commodity prices at present give rise
to optimism for the future, with exploration projects underway across
the territory. A Chinese pipe-making company, for example, recently
announced that it is ready to spend as much as $1 billion to fast-track
a proposed iron mine on Melville Peninsula into production (George,
2010c).
Hunting is a prospective tourism and product export industry--in
addition to its role as a subsistence and key cultural activity for the
Nunavut residents. At present International sensibilities are greatly
limiting the potential for export production. Nunavummiut (residents of
Nunavut and other Inuit communities) remain especially confused and
frustrated, for example, by a European Union ban on the importation of
seal products, and a U.S. ban on polar bear hides; these conflicts
highlight the sometimes cross-purposes of Inuit IQ and outsiders'
values (Duffy, 1988). Similarly, traditional Inuit arts and crafts
provide a vital element of Inuit culture, but their economic value is
limited by low and irregular numbers of tourism landings in local
communities, as well as international import bans on raw materials such
as seal skins and narwhal tusk (Nunavut Arts & Crafts Association,
2011; Nunavut Tourism, 2010).
Wages and royalties from the fishing industry (mainly shrimp and
turbot) in Nunavut territorial waters are estimated between $12 million
and $14 million annually to the economy of the territory, resulting in
about 300 seasonal jobs (Government of Nunavut, 2012c; 2010). This,
however, represents only a small fraction of the total value of the
catch. The territory strives to gain more local--especially
Inuit--ownership, as well as more locally-based processing facilities.
The 2010 Nunavut Economic Outlook (Nunavut Economic Forum, 2010) is
not encouraging with regard to the sustainability of the Inuit
traditional, non-wage economy. Statistics and research in this sector
lag behind those concerned with the commercial economy. It appears,
however, that traditional skills in hunting and sealing, for example,
are being lost with new generations raised in a wage-oriented economy,
at the same time that key animal populations (especially caribou) are in
decline.
Realizing "IQ" based development?--Amid this flurry of
economic activity, and the temptations of growth sectors such as the
mining boom, is Nunavut remaining true to its original vision of
development based on Inuit IQ?
In interviews with the Department of Economic Development and
Transportation (Government of Nunavut, 2010), several high-level
administrators cited the Nunavut government's 2009 report Tamapta
2009-2013, Building Our Future Together: Government of Nunavut
Priorities (Government of Nunavut, 2009) which solidly reaffirms a
commitment to a development vision "guided by Inuit values and
culture." The Department itself also asserts its commitment to
IQ-based development in its website (Government of Nunavut 2011b;
2011c). Much of the criticism of the Department of Economic Development
and Transportation, from interviewees who are either outside government
or former government employees, focuses on the department's
perceived over-attention to arts, craft, and other cultural
considerations, in place of more conventional business development and
capacity-building for mining and other industries. Some interviewed
critics suggest that department officials (particularly those who are
non-Inuit) are attempting to reduce Nunavut citizens and their culture
to museum pieces, rather than allowing them the freedom to develop and
transform themselves however they may wish--a critique which is commonly
heard in developing regions around the world.
Perhaps the most striking evidence of the reality of IQ in Nunavut
is the willingness by prominent territorial organizations, courts, and
leading citizens (typically elders) to slow or even halt development
that is not conducted in accordance with IQ principles. While field
research for this paper was in progress in Nunavut, debate was raging
over a German research ship that was conducting seismic testing for
petroleum in Baffin Bay without sufficient prior consultation with
community members. Inuit organizations protested and were finally
granted a halt to the project by a Nunavut judge. During this same
period, in another instance, both community groups (Nunatsiaq News,
2011b) and the very influential Nunavut Tunngavik Inc. (Rogers, 2011)
are questioning the impending development of uranium mining in the
territory.
Beyond good intentions, however, there clearly remains much work
ahead toward realizing the vision of IQ-based development. A
'report card' issued by the Government of Nunavut (North Sky
Consulting Group, 2009) included the following quote: "People
believe we have lost our sense of purpose and belonging--our cultural
connection to our land and to our families and communities and our
balanced way of living life" (p. 2). As noted earlier, each new
generation of Inuit is becoming increasingly dependent upon either the
wage economy or government transfer payments made possible by industries
such as mining. Therefore conflicts between sustainable, IQ-based
development and demands for economic growth may be inevitable.
Income inequality is emerging as a major threat to the ideals of
Inuit IQ, both within the general population and among the individual
communities of the territory (Nunavut Economic Forum, 2010). The success
of mining industries near Baker Lake and soon other communities are
exacerbating these inequalities. As one ED professional working at a
community level said in an interview, "We must focus on
communities. What's good for communities is good for Nunavut, but
what's good for Nunavut is not necessarily good for
communities." Frustration also persists over slow progress in
achieving proportional Inuit representation in employment (Windeyer,
2010c).
Perhaps the most serious threat to IQ and the persistence of the
traditional Inuit lifestyle, however, may be external: the rapidly
emerging reality of global warming in the arctic. Warmer weather is
melting the permafrost and shifting the foundations of residences and
public buildings; flora and fauna patterns are changing; sea ice is
forming later and melting sooner. The early IQ of Nunavut residents
(Windeyer, 2011; Rogers, 2010) is now being confirmed by outside
research (Munro, 2011; George, 2010a; 2010b; Vastag, 2011; Boyle &
Dowlatabadi, 2011).
5. CONCLUSION
From the earliest discussions that led to the birth of Nunavut
territory, land rights, resource access, and other ED considerations
have been central to the Inuit vision for the new territory. At the same
time, economic strategy was-- and appears to remain--either secondary to
cultural, social, and other quality of life priorities or at least
deeply intertwined with these priorities. Inuit IQ pervades all levels
of ED and other development discussions, from the founding documents of
the new territory to the most recent policy statements. Documents
suggest, however, that the Nunavut independently developed concepts such
as sustainable development, social capital, and the importance of human
capital. These concepts were based on traditional local values (IQ) that
form the foundation of the territory's culture, society, and
policy.
Based on numerous interviews, many 'cultural
conservatives' would say that Nunavut is losing its connection to
traditional IQ and Inuit culture (some Nunavummiut may disagree with
these conclusions). Conversely, many residents who are more ED-oriented
will argue that Nunavut agencies (such as the Department of Economic
Development and Transportation) are clinging to cultural traditions at
the expense of modern economic opportunities for the territory and its
residents. In our opinion, however, these forceful disagreements are the
sign of a healthy, continuing dialogue that can help Nunavut stay its
course through a challenging and dramatically changing environment
ahead.
Will the Nunavut model of ED prove a success or a disappointing
failure? At present, the objective economic and social data are mixed at
best. Neither economic nor quality-of-life indicators are encouraging as
of this writing. However, this paper is written in the midst of years of
national recession. Furthermore, after only a dozen years since the
creation of Nunavut, it is too early to pass meaningful judgment on the
effectiveness of territorial policies. Meanwhile, optimism runs high for
many residents (especially in communities such as Baker Lake) for a
bountiful economic future. At minimum, the authors applaud the quality
of planning and consistent attention to core values in Nunavut's ED
efforts. This alone is refreshing given the willingness of many
developing regions to pursue short-term perceived opportunities without
regard to environmental, social, or fiscal community values.
Finally, Miller (2009) argues that the field of ED is long overdue
for a new paradigm to guide lagging regions. Can Nunavut's ED
strategies provide a new model for other developing regions of the
western world? While the physical setting of Nunavut is unusual, it is
not necessarily unique to lagging regions: Appalachia and many of the
other U.S., Australian indigenous and Canadian aboriginal communities
have similar harsh physical environments, infrastructure challenges, and
the mixed blessings of natural resource endowments.
Similarly, 'IQ', is by definition unique to Nunavut and
the Inuit regions of Canada and Alaska. Further, the NLCA provides the
population of Nunavut with extraordinary local control over their own
land and resources. The NLCA is the result of decades of vision, focus,
organization, and perseverance: powerful lessons for other communities
looking only in the short term for the latest economic fad or fix.
Furthermore, the cultures and communities of many--perhaps
most--developing regions have deeply rooted traditions and values. One
questions how many other communities have truly embraced their own
' IQ' and incorporated these values into their own development
visions and strategies? Nunavut, in these regards, provides a powerful
and unusual model for developing regions far beyond the arctic.
Future research on Nunavut may be productively informed by the
relatively fresh perspective of appreciative inquiry (Trosten-Bloom and
Cooperrider, 2010; Koster and Lemelin, 2009; Cooperrider, et al., 2008).
Such research offers an affirmative approach that examines organizations
in terms of their highest potential, rather than in terms of their
problems to be solved. Clearly Nunavut faces a large number of
extraordinary and serious problems ahead; at the same time, the Nunavut
model represents one of the most ambitious, optimistic, and positive
experiments in locally-led ED in our experience.
ACKNOWLEDGEMENTS: The authors thank the anonymous reviewers of this
article for their many helpful suggestions, as well as University of
Southern Mississippi Economic Development graduate assistant Daniel
Aassamah for his research work.
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Mark M. Miller
Professor of Geography and Interim Chair, Department of Economic
& Workforce Development, University of Southern Mississippi,
Hattiesburg, MS, USA.
Email: mmmgeographer@gmail.com
James E. Rowe
Economic Development Manager, Katherine Town Council, Katherine,
NT, Australia.
(1) Fieldwork consisted of personal observations and interviews
with government and organization officials (at the federal, territorial,
and municipal levels) in the capital city of Iqaluit, the mining-active
community of Baker Lake, and the community of Pangnirtung (telephone
interview) which is noted for its art and craft work as well as its
proximity to Auyuittuq National Park. The lead author interviewed
administrators representing Nunavut Tourism, the federal Canadian
Northern Economic Development Agency (CanNor), the Nunavut Department of
Economic Development & Transportation, the federal Parks Canada
agency, Nunavut Economic Developers Association, a municipal government,
and two tourism-oriented museums/visitors centers; plus, a high school
principal, former cabinet minister, a locally-based private entrepreneur
developing real estate and servicing the mining industry, a former
administrator of the Nunavut Department of Economic Development &
Transportation, and an economic development consultant under contract
with a municipality.
(2) All dollar figures in this paper refer to Canadian dollars
(CAD). Over the past ten years, the exchange rate with the Australian
dollar has fluctuated between 1.33 and 0.94 AUD per 1CAD. (Over the same
period: between 1.06 and 0.66 USD per 1CAD.) The document cited here
does not specify real or nominal valuation, probably reflecting rough
estimates for dollar targets.
(3) Although still common in the U.S., in Canada the model was
embraced briefly then largely abandoned as a failure (Peters and Fisher,
2002, Beauregard-Tellier, 2011).
(4) Sustainable development is an elusive term that has different
meanings to many people. For a good discussion of the term and its
variable meanings- see Gunder and Hillier (2010).
(5) The cost of living--in terms of food, energy, and nearly all
other commodities--is much higher in Nunavut than elsewhere in the
country. Translating economic growth into jobs remains a challenge, as
well: 2010 data from the Nunavut Bureau of Statistics reports a 15.0
percent unemployment rate for the territory's population (aged 15
and over), up from 12.6 in 2009; comparable rates for the
territory's Inuit population are 20.5 percent, up from 16.9 the
previous year (Government of Nunavut, 2012b).
(6) The number of direct jobs for the local population that are
created by a mining operation is an on-going concern for most remote
areas. Many mining operations in Australia employ fly-in and fly-out
workers instead of employing locals because of the low skill levels of
many local people.