aboriginal government It’s the incentives, stupid aboriginal government the elected and the electorate. Poorly the Standing Committee on Aboriginal Section 78 mandates a two-year Tyson Vandament designed, they can destabilize govern- Affairs and Northern Development.) cycle, which serves to destabil- ments, empower dishonest leaders and under the current sys- ize government and impede long-term encourage a host of bad behaviours. Un- tem hinder development and can planning. In the 2009 proceedings of The shortcomings of Aboriginal governance are the fortunately, many Aboriginal commun- have a divisive effect on the commun- the Standing Senate Committee, Ontario result of a flawed system driven by perverse incentives. ities suffer from consequences of the ity. In my own experience working Regional Chief Angus Toulouse argued latter. with Aboriginal communities, I have frequent elections hinder development Les lacunes de l’autonomie gouvernementale Given the origins of the Act, it is seen how difficult it can be to sustain and serve to weaken communities. “I not surprising that the system has failed momentum on projects when new think we all recognize that two years is autochtone s’expliquent par un système défaillant to serve the needs of Aboriginal people. leadership arrives, particularly when insufficient time to develop, plan and be fondé sur des incitations aux effets pervers. The legislation was not designed to that new leadership is opposed to the accountable for results,” he said. “The create conditions for peace, order and work of the former administration. frequency of elections can also create good government, but was intended Policies mandating two-year election instability and uncertainty for commun- to ensure federal control over daily life cycles, frequent government turnover ity members, business ventures and over- and assimilate Aboriginal people into and near-constant electioneering have all community development.” Canadian society. Aboriginal political created a system that rewards short- Currently, First Nations have the traditions were suppressed — tradition- term thinking and incentivizes risk ability to create their own election al forms of political organization, such taking rather than prudence, while codes, and many (342) have utilized as West Coast potlatches, were out- encouraging divisiveness and crony- them. However, custom election codes lawed, and tribal leaders unwilling to ism. Furthermore, these structures do are not a panacea for Aboriginal dem- comply with the Act were jailed. not simply motivate or aid those with ocracy, particularly if these new codes These shortcomings have long been bad intentions; they act as a barrier to do little to address the structural issues t the turn of the 20th century, French colonial author- wards and punishment to achieve their goals remains. The field noted by critics, including Aboriginal those with good intentions. According that affect their communities, or if they ities in Vietnam detected bubonic plague in Hanoi. Lo- of “nudge,” in which behavioural insights are invoked to shape people. Many view the electoral rules to National Chief Shawn Atleo, quoted simply entrench the current govern- Acal administrators had long wrestled with the city’s bur- policies, is only the latest expression of this desire to employ as perpetuating a colonial relationship in the 2012 Report of the Standing Senate ment and provide additional barriers to geoning rat population, and signs of plague prompted them to incentives to influence how we act. Clearly, any meaningful with the Crown and see them as a source Committee on Aboriginal Peoples, this has . dispatch a force of exterminators to wipe them out. Extermin- attempt to solve problems or reform systems requires motiv- of division within already fractured com- resulted in an that is Once chiefs and councils are elect- ators were given an incentive to kill: 1 cent for every rat taken ating, rewarding or constraining people and institutions. Yet munities. As Don Sandberg of the Nor- “largely devoid of principles relating to ed, the current system concentrates off the streets. Soon rats were being slaughtered at a rate of the lesson of Hanoi’s rats also endures: incentives matter. And way House Cree Nation said in an article modern and accountable governance.” immense power in their hands. Leaders more than 10,000 a day. On one day alone — June 12, 1902 — as people adjust their behaviour accordingly, we often discover for the Frontier Centre for Public Policy: There are several problematic pro- are relatively unconstrained in their ex- official records showed that 20,114 rats met their maker. that change comes with unintended consequences. “Nothing divides tribes more than band visions prescribed by the Act. Section ercise of power, which includes control Yet Hanoi’s rat population showed no signs of declin- In , few areas of contemporary public policy so elections, which are almost always con- 74 severs accountability between Ab- of band finances and government of- ing. The government responded by quadrupling the exter- richly illustrate the pitfalls of poorly designed incentives as the troversial and in many cases fundamen- original leaders and their constituents fices. This puts chiefs and councils in minators’ bounty to 4 cents, with still no apparent affect. system of Aboriginal governance prescribed by the Indian Act. anti-democratic.” by making chiefs and councils account- a position to reward friends and pun- Finally, the cull was opened to all citizens, who would be The current state of Aboriginal in Canada could be Given the high stakes involved, it is able to the minister of Aboriginal Af- ish enemies. Calvin Helin, a prominent paid 1 cent for each dead rat. All that was required to collect blamed on any number of villains: corrupt chiefs who engage predictable that some chiefs and councils fairs. This severs a crucial link between Aboriginal lawyer from the Tsimshian this kill fee was to present a tail to authorities. in patronage politics; a disinterested bureaucracy, with little have fiercely resisted attempts to reform the elected and electors, undermining Nation explains in Dances with Depend- The policy produced thousands of rat tails, but it soon be- skin in the game, who collect paycheques on the basis of sus- the system. One of the most recent at- legitimacy. ency: Out of Poverty through Self Reliance: came clear that something was amiss. Thousands of rats with- tained Aboriginal poverty; or an indifferent political establish- tempts at reform was the failed Bill C-7, out tails were spotted roaming Hanoi. Moreover, rat farms ment, who talk a good game, but who seem more interested which died on the order paper in 2003, began to appear on the city’s outskirts, run by enterprising in using Aboriginal communities as props for photo ops rather largely due to intense from First but unscrupulous locals looking to turn a one-time econom- than meaningful partners in change. Nations chiefs. Early in the development ic opportunity into an annuity. Faced with the realization Much of this blame is warranted. And yet this conven- of the bill Indian Affairs Minister Robert that their efforts to reduce the rat population had actually tional critique confuses the symptoms of a disease with the Nault was quoted in the Globe and Mail These incentives reward and increased it by incentivizing organized breeding, French au- disease itself. The shortcomings of modern Aboriginal gov- on May 8, 2003, as saying: “It’s my view thorities retreated. They ended the bounty program, resigning ernance are the product of outdated policy and a flawed sys- that the position of the AFN leadership perpetuate many of the pathologies themselves to coexistence with the city’s vermin. tem driven by perverse incentives. These incentives reward is clearly out of synch with those of the plaguing Aboriginal communities, We are a long way from French colonial rule over swaths and perpetuate many of the pathologies that plague Aborig- people for whom they claim to speak. of Southeast Asia, but the instinct of policy-makers to use re- inal communities, impeding honest leaders and, at worst, Many first nations people are too fright- impeding honest leaders and empowering the corrupt. ened to speak of their support of the bill for fear of reprisals” (The Conservatives empowering the corrupt. Tyson Vandament is a former policy analyst and management ules governing Aboriginal elections are laid out in the have come back with Bill S-6, a piece of consultant with experience working with First Nations who RIndian­ Act. Designed well, electoral systems encourage legislation imbued with the same princi- lives in Edmonton. With thanks to Laura Hazlett for her valued healthy democratic competition, provide a mechanism for the ples as Bill C-7, which completed second contribution. removal of governments and enforce accountability between­ reading in June and has been referred to

62 OPTIONS POLITIQUES POLICY OPTIONS 63 SEPTEMBRE-OCTOBRE 2013 SEPTEMBER-OCTOBER 2013 Tyson Vandament aboriginal government

Take the current controversy sur- often faced with the problem of choos- rounding this summer’s elections for ing between their own political survival leaders of the Attawapiskat First Nation and their desire to serve the community. (which has a custom election code but To illustrate this dilemma, put has not implemented it). The band coun- yourself in the position of a newly cil has been accused of attempting to si- elected chief. The challenges faced by lence political opposition by requiring the community are complex and struc- that all in the election be cast tural in nature: high rates of poverty in person, a challenge for the 1,862 compounded by geographic isolation, a members who live off-reserve and can’t lack of infrastructure and limited gov- afford to make the trek to the isolated ernment capacity. These types of chal- First Nation. As former Attawapiskat lenges would be difficult to address in a resident Jocelyn Iahtail put it, quoted decade, let alone two years. in an August 27 article in the National Yet you are determined to address Post, “They [the Council], of all people, these issues by taking a long-term and should understand poverty and make it strategic approach to economic de- possible for off-reserve members to have a velopment and governance. No more voice.” The incumbent chief was reelect- quick fixes or political games; you plan ed with 214 votes out of a community of to do away with the that has 3,351, hardly a ringing endorsement. Not divided your community. surprisingly, as the National Post reported Then reality sets in. You come to on August 30, community members have realize that despite your fresh ideas and said they plan to appeal the results, which even fresher idealism, you are inexperi- they argue violate the Supreme Court of enced and do not fully comprehend the Canada’s 1999 Corbiere decision, which complex web of agencies, businesses, protects the right of all members to vote departments and relationships you must in band elections. administer. It may take months to mas- Any leadership — Aboriginal or ter the reporting requirements mandated other — that operates under these con- by the federal government. You also dis- ditions is being encouraged to act badly cover that your visionary agenda made and has strong incentives for electoral for good campaigning and has gained , and corruption. you support in the community, but it also raised expectations and provided a ew jobs in Canadian politics are as benchmark by which you will be judged. Fchallenging as leading an Aboriginal Compounding these challenges community. Overcoming high rates of is the fact that your own ascension to poverty, inadequate infrastructure and power came at the expense of polit- Attawapiskat Chief Theresa Spence is hugged by one of her many help- limited economic opportunity would ical rivals from within the community, Band Councils are all-powerful. As gate- lous leaders are empowered rather than ers during a celebration to end her be difficult under optimal conditions, many of whom you are now dependent keepers to the transfer payment gold, constrained. Positions on band coun- hunger strike in Ottawa on January and in many Aboriginal communities, on to implement your agenda. All, as 24, 2013, after being released from they make all the rules. It is not wise cils are typically the most stable and hospital. conditions are far from optimal. But we have noted, with less than two years to criticize the Band Council if you are lucrative employment available within Photo: cp photo these conditions persist, in part, because to make progress, mend political fences reliant upon them for welfare, employ- the community, creating intense com- chiefs and councils are faced with a di- and get reelected, lest some other leader ment, economic development grants, petition and making those who acquire lemma: why reform the system that is unseat you and undo your good work. housing, or whatever. While there are these positions reluctant to cede power. the basis of your political power and In order to achieve your vision you many Band Councils that temper the The ability to punish political rivals confers upon you immense benefits, will need allies on council and in ad- powers that they exercise over commu- prevents the formation of a meaning- even if that system has negative conse- ministration. How can you gain their nity members, there are some that rule ful political opposition that can hold quences for the community as a whole? support? While some agree with your by out-and-out intimidation. government to account. Furthermore, While we would hope that political vision, others are skeptical, and a few The ability of chiefs and councils chiefs and councils have broad power leaders always act in the best interests are openly antagonistic, already pol- to award or withhold jobs, govern- to control the logistics and timing of of their constituents regardless of their ishing their knives and measuring the ment services and important benefits elections, limiting the ability of mem- own ambitions, any honest appraisal of drapes in your office. Your political in order to maximize their chances for bers (especially those residing off-­ politics (both Aboriginal and not) will strategy is not as successful as you had reelection and punish political rivals reserve) to vote, stacking the deck in show this is rarely the case. Even those anticipated, and the pressure to deliver creates conditions where unscrupu- favour of the incumbent. who do want to change the system are is growing daily. At this point, even a

64 OPTIONS POLITIQUES POLICY OPTIONS 65 SEPTEMBRE-OCTOBRE 2013 SEPTEMBER-OCTOBER 2013 Tyson Vandament

principled leader would begin to con- If poor incentives lie at the heart of political and financial ties of their template less than noble political calcu- many of the current shortcomings of Ab- political leadership (along with that lations on whether ends justify means. original democracy, it would follow that of the leadership of related band Should I use my position to reward replacing them with proper incentives businesses and agencies) will help to friends and woo enemies (as prime is the natural remedy. These incentives prevent many of the abuses of cro- ministers and premiers do) if it leads should encourage incremental economic nyism and mismanagement. This to benefits for the broader community? and capacity development over short- would include ensuring that all com- Should I give the coveted job of head of term risk taking; promote consensus munity members receive either an the economic development agency to building over divisiveness; ensure ac- electronic or a hard copy (for those the qualified candidate, or to the coun- countability between the electors and without internet access) of the band’s cillor’s brother, whose support I need in the elected; and promote the develop- audited financial statements, along an upcoming vote? Who should receive ment of a credible political opposition with disclosure of any real or po- tential conflicts of interests that ex- ist. In certain cases, this may require chiefs and councils (and potentially their immediate family members) to disclose their personal assets or put The Indian Act was intended them into a blind trust to ensure pol- icy decisions are made to enrich the to assimilate Aboriginal people community, not the leadership. into Canadian society. A final, more controversial proposal that could “nudge” Aboriginal democ- racy in the right direction would utilize current legislation that allows chiefs and councils to create custom election codes, but modify the legislation to make it scarce housing resources, the deserving that can hold government to account. opt-out rather than opt-in, and subject grandmother or the well-connected These are some of the changes: the final election code (whether custom community activist? What use are my • The elimination of the two-year or not) to approval by the community noble ideals if they lead to defeat, con- electoral term. The current two- through a . Any chief and demning my community to turmoil year electoral term mandated by council who feel the current system pre- and perhaps paving the path to power the Act is insufficient for chiefs and scribed in the Act is serving the needs for someone with — in my mind — less councils to develop and implement of the community would have to make noble motivations? policy, and the short time creates their case directly to their constituents. How quickly doing the wrong strong incentives for unnecessary Otherwise, the chiefs and councils thing seems so right, and doing the risk taking, perpetual electioneer- would be required to develop a custom right thing seems so wrong. ing and . election code that ultimately their com- • Improved provision for the inclusion munity would approve. What could be hen your profession entails of off-reserve members’ votes in elec- more democratic than that? Wmaking laws and allocating tions. According to the 2011 Census, While these changes are long over- scarce resources on behalf of others, over 50 percent of Canada’s First Na- due, the benefits of a reformed electoral navigating the fine line between your tions people live off-reserve, and en- system will be most fully realized if it own ambitions and the needs of your suring their voices are heard, through is undertaken as part of a wholesale re- constituents is never straightforward. either Internet or mail-in bal- imagining of the relationship between The world you inhabit is murky and lots will incentivize potential leaders Aboriginal peoples and the govern- you are judged in terms that are black to broaden their political support ment of Canada, including addressing and white. This tension between ideal- to the largest constituency possible, thorny issues such as treaty rights, pri- ism and pragmatism lies at the heart of encouraging policies that promote vate property, education and self-gov- all political systems but is more acute- broad prosperity, rather than using ernment. This approach will require ly felt in Aboriginal communities due the levers of power to reward friends commitment, courage and sacrifice by to the immense power placed in the and punish enemies. Aboriginal leaders and federal polit- hands of chiefs and councils and the • Increased financial and political icians, but it holds the greatest poten- lack of countervailing forces to check transparency for chiefs and band tial for improving the lives of Aborigin- government authority, compounded councillors. Ensuring that band al people and ensuring a fair, prosper- by bad incentives. members are fully informed of the ous and inclusive Canada. n

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