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

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The sell<strong>in</strong>g <strong>of</strong> Inuit art by <strong>in</strong>dividual co-<strong>operatives</strong> was done <strong>in</strong> <strong>the</strong> past through personalnetworks and <strong>the</strong>se networks were <strong>of</strong>ten lost when <strong>the</strong> person moved. Also, art galleries wouldsell carv<strong>in</strong>gs but no promotion was done <strong>for</strong> this new Canadian art <strong>for</strong>m. It soon became evidentthat co-<strong>operatives</strong> needed <strong>the</strong>ir own agency to promote and market Inuit art. With <strong>the</strong> aid <strong>of</strong> <strong>the</strong>federal government, Canadian Arctic Producers (CAP) was <strong>in</strong>corporated <strong>in</strong> 1965 as a market<strong>in</strong>gagency, and its headquarters were established <strong>in</strong> Ottawa 11 . The greatest achievement <strong>of</strong> CAP wasits promotion <strong>of</strong> Inuit Art: this <strong>for</strong>m <strong>of</strong> art was unknown some <strong>for</strong>ty years ago, but it is nowrecognized worldwide.In 1972, representatives <strong>of</strong> 26 co-<strong>operatives</strong> met <strong>in</strong> Manitoba. They were concerned by <strong>the</strong>difficulties <strong>the</strong>y were hav<strong>in</strong>g <strong>in</strong> obta<strong>in</strong><strong>in</strong>g merchandise <strong>for</strong> <strong>the</strong>ir members. At this time, <strong>the</strong> onlyeconomical means <strong>of</strong> transportation was <strong>the</strong> annual summer supply ship, and f<strong>in</strong>anc<strong>in</strong>g a year’ssupply <strong>of</strong> merchandise was a major problem <strong>for</strong> all co-<strong>operatives</strong>. <strong>Co</strong>-<strong>operatives</strong> were alsohav<strong>in</strong>g difficulties keep<strong>in</strong>g adequate account<strong>in</strong>g records. It was <strong>for</strong> <strong>the</strong>se two reasons that <strong>the</strong> coopsdecided to <strong>for</strong>m a federation. The government <strong>of</strong> <strong>the</strong> NWT helped <strong>the</strong> co-ops by provid<strong>in</strong>g$75,000 to cover <strong>the</strong> first year <strong>of</strong> operation <strong>of</strong> <strong>the</strong> “new” Canadian Arctic <strong>Co</strong>-<strong>operatives</strong>Federation Limited, which established its headquarters <strong>in</strong> Yellowknife.In November 1982, <strong>the</strong> Canadian Arctic <strong>Co</strong>-operative Federation Limited and Canadian ArcticProducers amalgamated to <strong>for</strong>m Arctic <strong>Co</strong>-<strong>operatives</strong> Limited (ACL). Duplication <strong>of</strong> staff andfunctions <strong>in</strong> Ottawa and Yellowknife were cost<strong>in</strong>g an additional $500,000 over and above <strong>the</strong>projected costs <strong>of</strong> a unified operation <strong>in</strong> a sou<strong>the</strong>rn location. In 1985, <strong>the</strong> amalgamation wascomplete and <strong>the</strong> two organizations moved to W<strong>in</strong>nipeg, Manitoba.Be<strong>for</strong>e 1983, nor<strong>the</strong>rn co-<strong>operatives</strong>, like o<strong>the</strong>r <strong>Aborig<strong>in</strong>al</strong> bus<strong>in</strong>esses, were alwaysunderf<strong>in</strong>anced. In 1983, <strong>the</strong> federal government established <strong>the</strong> Native Economic DevelopmentProgram designed to assist <strong>Aborig<strong>in</strong>al</strong> people to overcome <strong>the</strong> <strong>in</strong>ability to obta<strong>in</strong> conventionalbus<strong>in</strong>ess f<strong>in</strong>anc<strong>in</strong>g. ACL applied <strong>for</strong> <strong>the</strong> program, and <strong>in</strong> 1986 <strong>the</strong> NWT <strong>Co</strong>-operative Bus<strong>in</strong>essDevelopment Fund was <strong>in</strong>corporated to receive <strong>the</strong> funds and to be <strong>the</strong> f<strong>in</strong>ancial arm <strong>of</strong> <strong>the</strong> NWTco-operative movement.In 1987, ACL and <strong>the</strong> Fédération des co-opératives du Nouveau-Québec <strong>in</strong>corporated a jo<strong>in</strong>tventure called Tuttavik. The role <strong>of</strong> this new venture was to provide co-ops with a showroom <strong>for</strong><strong>the</strong>ir members’ products <strong>in</strong> <strong>the</strong> large sou<strong>the</strong>rn market. The jo<strong>in</strong>t venture was operational <strong>for</strong>11 The federal government <strong>in</strong>vested $480,000 <strong>in</strong> preferred shares that <strong>the</strong> co-<strong>operatives</strong> were required toacquire gradually. Ten years later, <strong>the</strong> co-<strong>operatives</strong> ga<strong>in</strong>ed control <strong>of</strong> this company, and <strong>the</strong>y immediatelyvoted to re<strong>in</strong>corporate it as a co-operative.81

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