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Linking Indigenous Communities with Regional Development in Australia

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Linking Indigenous Communities with Regional Development in Australia @OECD_local Linking Indigenous Communities with Regional Development in Australia Policy Highlights Linking Indigenous Communities with Regional Development in Australia Linking Indigenous Communities with Regional Development in Australia here are approximately 800,000 In recent decades, there has been significant Indigenous Australians, which is 3.3% Indigenous innovation and entrepreneurship Tof Australia’s total population. Scientific with business growth in areas such as evidence suggests that mainland Australia construction, tourism, environmental services, was first settled by Indigenous peoples and arts and culture. However, significant gaps approximately 65,000 years ago. The in socio-economic outcomes compared to non- intimate relationships between spirituality, Indigenous Australians remain. These gaps are livelihoods, kinship, and place are central to larger in rural regions. understanding Indigenous Australians. It is the world’s oldest continuous living culture and This study, undertaken prior to the COVID-19 Aboriginal and Torres Strait Islander peoples pandemic, provides recommendations to make a vital contribution to contemporary the Australian Government about how to Australian society. Indigenous Australians are improve economic development outcomes for also important for the future of the national Indigenous peoples at a local and regional level economy. For example, the amount of land around three pillars: with Indigenous ownership and interest now covers approximately half of Australia’s land 1. Developing statistical frameworks and mass. data governance for Indigenous well- being; Indigenous Australians play an important role in the development of regional economies. 2. Creating an enabling environment Compared to the non-Indigenous population, for Indigenous entrepreneurs and small Indigenous peoples are more likely to be business; located in predominantly rural regions (48% compared to 17% for the non-Indigenous 3. Implementing a place-based approach population). As such, they are relatively more to economic development that empowers important to rural economies in terms of Indigenous Australians. labour supply and consumption, and play a key role in unlocking the growth potential of regional economies. 2 Policy Highlights 1. Indigenous well-being, statistical frameworks and data governance Since the 1970s, Australian Indigenous peoples 1.1 ustralia’s Indigenous population is have had their rights recognised, which for Acharacterised by its relative growth, youth, some includes land and rights to development. and concentration in rural areas as well their Today, Indigenous Australians are developing connection to land and traditional knowledge competitive and innovative businesses that that gives rise to competitive businesses and range from mining and construction, tourism, has significant growth potential renewable energy, ecosystem services, arts and creative industries. In many cases, traditional Place is a key organising feature of Australia’s knowledge (an evolving system of knowledge Indigenous economy. Kinship relations of and practices developed over millennia) is a different First Nations stretch back millennia fundamental component to these business and emphasise spiritual connections to distinct ideas. Australia’s Indigenous population is lands. Australian Indigenous policies up to the younger than the non-Indigenous population late 1960s were characterised by dispossession with a median age of 23 compared to 38. and assimilation. Often, this resulted in Indigenous peoples are also more likely to the disruption and loss of traditional live in rural regions compared to the non- territories, dependency upon religious and Indigenous population. Over time, the state institutions, and barriers to economic population is becoming more urbanised. participation. Figure 1. Population distribution by type of region, 2016 Population growth rates 2001-2019 in small OECD regions 80% Note: Based Indigenous on the OECD Territorial 70% non-Indigenous Classification. 60% Source: Calculations 50% based on data drawn from 40% ABS Census of Population and Housing, 2016 , 30% TableBuilder for Australia. 20% 10% 0% Predominantly rural Intermediate Predominantly urban © OECD 2021 3 Linking Indigenous Communities with Regional Development in Australia resource based and have lower population 1.2 here are significant well-being inequalities densities (Queensland, the Northern Territory Tbetween Indigenous and non-Indigenous and Western Australia). Unemployment for Australians - these gaps are larger in rural instance varies from 9% (Australian Capital regions Territory) to 27% (Northern Territory). These results are similar to the employment rate. At national level, inequalities between Indigenous Peoples in predominantly rural Indigenous and non-Indigenous populations regions have the most disadvantage position manifest themselves across far too many across multiple indicators. For example, the indicators - for example, the gap in upper unemployment rate of Indigenous Peoples secondary school attainment for 25-64 year in predominantly rural regions is 6 pp higher olds is 40 percentage points (pp) between the than in predominantly urban regions, and Indigenous and non-Indigenous population upper secondary school education attainment and the gap in life expectancy is 10 years. of 25-64 years olds between urban and rural There is significant variation at the State Indigenous Peoples is 16 pp lower in rural and Territory level. The largest gaps are populations. evident in the States and Territories that are Table 1. Gaps in well-being indicators, Indigenous and non-Indigenous population, by type of region, 2016 Urban Intermediate Rural Employment rate gap -20 -27 -32 Unemployment rate gap 8 12 15 Self-employment rate gap -6 -9 -10 Educational attainment -31 -31 -31 Household internet access -5 -9 -11 Note: Percentage point difference between Indigenous and non-Indigenous outcomes. Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, Table Builder for Australia. 4 Policy Highlights Figure 2. Gaps in selected well-being indicators between Indigenous and non-Indigenous peoples at the national level, 2016 Absolute values 45 Percentage points 40 35 30 25 20 15 10 5 0 Unemployment Life Expectancy Income Employment Education Note: The gap in life expectancy represents the gap between the life expectancy of Indigenous peoples and non-Indigenous peoples relative to the life expectancy of non-Indigenous peoples. The gap in income is defined as the difference between median weekly earnings of Indigenous and non-Indigenous peoples relative to median weekly earnings of non-Indigenous peoples. Source: Calculations based on data received from the ABS. © OECD 2021 5 Linking Indigenous Communities with Regional Development in Australia 1.3 tatistical frameworks have advanced - by the Australian Bureau of Statistics (ABS). Sbut the inclusion of Indigenous values The ABS also employs Indigenous engagement and perspectives, and the empowerment of officers, and adapts collection methods for Indigenous groups to collect and use data remote areas. Efforts to implement reforms needs to become priority recognise the need to better link existing datasets to improve coverage. However, Despite progressive improvements in data the implementation of these reforms is collection about Indigenous peoples, gaps not monitored, which depend upon co- remain and inclusion of Indigenous values operation among the Commonwealth, States and perspectives needs to be improved. and Territories. Support to empower local Indigenous geographies (based on First Indigenous institutions to collect data and Nation territories) are not part of the use it to inform community decision-making territorial classification, which reflects how is generally lacking. This includes Indigenous- government agencies (rather than Indigenous specific data governance models, and the Australians) are primarily driving the framing availability of funding and technical support to and organisation of statistics. The main build data collection and analytical capabilities. mechanism for communicating Indigenous well-being outcomes in Australia is the elected recommendations for improving 1.4 “Closing the Gap” framework. The design and Sstatistical frameworks and data governance organisation of these statistics is driven by government agencies, which is reflected in National Indigenous statistical frameworks and lacking statistical products for local Indigenous tools can be improved by: communities and missing survey instruments to collect sufficiently disaggregated data about Introducing a consistent Indigenous issues that matter for Indigenous peoples (e.g. business identifier that acknowledges traditional knowledge). Further, research is the stage of maturity of the Australian heavily weighted to health and social issues, Indigenous business sector, into the and in comparison, evidence about Indigenous Australian business registry system, business and economic development issues, is the tax office, and business surveys lacking. In addition, there are inconsistencies undertaken by the ABS. and gaps related to data about Indigenous businesses across governments, not for Increasing the frequency of the National profit and private sectors because there is no Aboriginal and Torres Strait Islander Social common definition for Indigenous business. Survey (NATSISS) from six to every four This makes it difficult to make accurate years to provide more timely
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