Aboriginal Co-operatives in Canada - Centre for the Study of Co ...

A P P E N D I X I ~While these changes were understandable, particularly within the framework of the CanadianAboriginal Economic Development Strategy, they have had the effect of isolating somewhatthe Arctic co-operatives. The Arctic co-operatives span the region and work on a system-widebasis that does not coincide with the regional emphases of the unfolding policy framework.The issue has been complicated by the fact that the co-operatives are not entirely Aboriginal,thereby making them unacceptable for much of the new funding allocation system. It is anunfortunate situation since the co-operatives are well over 90 percent Aboriginal in membershipand they have served as particularly effective instruments for Aboriginal entrepreneurship.In a way, the current practice undermines one of the historically most important forms ofAboriginal participation in the market-place.The issue becomes vitally important because it largely excludes the Arctic Co-operatives fromregion-wide participation in the Aboriginal Human Resources Development Strategy. It hasmeant general exclusion from the Aboriginal Capital Corporation, although studies are underwayto see if the problems can be addressed. Both issues are critical for the development of cooperativesin the Arctic, and there is some need for discussions with the leaders of Aboriginalorganizations and government officials to ensure that the co-operative model, which has beenso beneficial to Arctic people and their communities, is not unintentionally or thoughtlesslyignored in the future.Lessons LearnedAlong with the Aboriginal co-operatives in Nunavik, the case of Arctic Co-operatives is themost successful Aboriginal experiment with co-operatives in Canada. What explains thesuccesses ACL has achieved? The following factors seem to be particularly important.• There were several clear needs that the co-operatives could meet.• The Inuit and Inuvialuit were receptive to the idea of co-operatives.• There was a small coterie of champions who made major contributionsto sustaining the co-operatives, particularly in the early years.• There was a profitable business—the art business—that provided importantincome over the years.• There was sufficient funding to permit success despite adverse economic pressuresand the complexity of conducting business over almost the entire Arctic region.• Progress was not achieved quickly or easily.• The co-operatives managed to separate themselves from too close a relationshipwith governments.• They have developed an innovative funding system through the Arctic Co-operativeDevelopment Fund.• The development of human resources is the most important underlying challengeconfronting co-operatives.• In particular, there is a need to develop Aboriginal leaders as expeditiously as possible.280 ~