governance toolkit

Principle: Economic Realization Government: Indian Band best practices

OPPORTUNITY principles. “People talk about running Native The Osoyoos Indian Band (OIB) is located in the interior of businesses the Indian way, but there is only one way to . They are a member community of the do business and that is the business way.” Nation Alliance. The Band was formed in 1877 The make-up of the board of directors of the OIBDC and is home to about 370 on-reserve band members. The further reflects this business-based philosophy. In goal of the OIB is to move from dependency to a addition to the Chief and three councillors, it includes sustainable economy like that that existed before contact. two former councillors, five “outside” advisors Situated on 32,200 acres in one of Canada's premier including a banker and an accountant and the Chief agricultural and tourism regions, the land has offered Operating Officer, who is not a member of the OIB. the band opportunities in agriculture, eco-tourism, PRINCIPLE IN ACTION commercial, industrial, and residential developments. The OIB developed a comprehensive plan and With a focus on supportive education and training, the implemented the specific pieces as they had capacity to band operates its own business, health, social, do so. CEO Chris Scott says, “We were prepared to act educational and municipal services. The result is virtu- on business opportunities, to seek successful ally no unemployment and financial independence. businesses that were strategic to the vision.” The nation’s efforts to reduce dependency and attain Successful OIB business ventures include: self-sufficiency began in 1988 with the establishment of the Osoyoos Indian Band Development Corporation • Leased land in the mid 1960s to the privately owned (OIBDC). Chief Clarence Louie, serving as both Chief Cherry Grove golf course. That company is now of OIB and President of the OIBDC, recognized that owned by the OIB and has had a multi-million dollar successful businesses adhere to certain business expansion. • Began silviculture work in the late 1970s and logging in the early 1990s. The OIB now operates, with a U.S. NCFNG company, a sawmill that can process up to 35,000 is a national, independent, First Nations-controlled cubic meters of wood. organization dedicated to supporting First Nations • Formed a partnership with Vincor, Canada’s largest as they work to implement their inherent right to and North America’s fourth largest wine producer. self-governance. The development of a set of shared Vincor leases 800 acres from the OIB for grape principles that clearly articulate our approach to production. effective governance is one way in which we support However, the OIB also recognizes that not every that work. This NCFNG Effective Governance Case project is a business project. The focus of their Study profiles a best practice in the principle economic development is through preserving culture. “Economic Realization”. The band has invested in the education of its children To learn more about this case study, contact: building a preschool and grade school and expects to Osoyoos Indian Band graduate its own future leaders of the community. The www.oib.ca OIB has accomplished much. Pride of heritage as a means to achieve economic independence is and To learn more about the NCFNG: remains the commitment made and maintained by the [email protected] Chief and council to the people. Toll free: 1 866 922 2052 SUCCESS FACTORS Effective administrative systems are critical for nations The key determining factor for OIB’s success is the that are planning economic development. They need presence of strong and determined business leadership their band office to be well organized so they can deal backed by band members. Effective leadership with efficiently with their own businesses, their partners, strong vision and good knowledge of business has and all the other governments and agencies they will allowed the OIB to agree on an objective of economic work with. success. CHALLENGES Another part of OIB’s success is their rigorous The Osoyoos identify their major weakness as the application of business principles. This has meant leftover dysfunction from a colonial past — the control learning about business, and dedicating band time, exerted by the Indian Act, the administration of nation money and energy to business development. It means affairs by the D.I.A., family breakdown, the cycle of hiring managers on the basis of merit and training, and welfare, the victimization syndrome, the dependency not being shy about bringing in expert help. A benefit syndrome that remain evident today. of this early investment was the creation of financial The result is that some of the people of the Osoyoos systems that meant when economic opportunities are not ready to engage in and benefit from the arose, OIB was ready for them with its financial house economic opportunities of the OIBDC. in order. The OIB has observed that many of their best workers Success for OIB also means taking culture into are over 60 years old. They learned how to work when consideration. Achieving economic success is they were young and came from an era where there important – but important as it is a means to attaining was no welfare and employment insurance. To turn social success for the entire community. this around, profits from OIBDC support social and The major advantage the Osoyoos people had and still educational programs and anyone who wants training have is their location. They held 32,000 acres of land can access it. in a valuable agricultural area. As Chief Louie Chief Louie counsels that “to run successful observed, “You have to pick up on the economy of the businesses, you must deal with the people where they area. If you are on the coast, it’s trees and fish. For us it are. The majority of our people are not ready to was agriculture and tourism. As they say, you fish compete. Get the people who can make the business a where the fish are.” success, whatever race they happen to be.” Harvard Project analysis of successful economic NCFNG GOVERNANCE LESSONS LEARNED development of Native American tribes has determined The effective governance principle of Economic that the critical factors for economic success are Realization recognizes that First Nation governments sovereignty, cultural match, administrative ability and possess the right and the tools to develop their land leadership. into sustainable economies. Aboriginal title includes an It is important to have the independence to do what inescapable economic component. Osoyoos Indian you think is best for the community. The OIB has not Band continues to be highly successful in applying this allowed others to interfere with its plans. OIB principle on their reserve lands. leadership and citizens have asserted their LINKS AND MORE INFORMATION independence in their decision-making surrounding Osoyoos Indian Band Development Corporation their economic development. www.oibdc.com Options for Commercial Development in First Nations www.iog.ca/publications/FNenterprises.pdf We are very focused on the future, and we real- Our Own Vision, Our Own Plan ize that we create this future by our actions. www.sfu.ca/cscd/pdf/our_own_vision.pdf The single most important key to First Nation self-reliance is economic development — Osoyoos Chief Clarence Louie