FIRST NATIONS GOVERNANCE PROJECT: PHASE I August, 2018 This report is jointly produced by the First Nations Financial Management Board and the Institute on Governance. TABLE OF CONTENTS Executive Summary ......................................................................................................................................................5 Using the Report ........................................................................................................................................................... 8 1.0 Introduction ............................................................................................................................................................ 9 1.1 United Nations Declaration on the Rights of Indigenous People and Implications for First Nations Governance ..................................................................................................................................... 9 1.2 Governance ........................................................................................................................................................ 10 1.3 Governance from an Indigenous Perspective .....................................................................................12 2.0 Indigenous Nations and Governance Pre-Contact to Present Day .............................................14 2.1 Indigenous Nations Pre-Contact ...............................................................................................................15 2.2 Indigenous Governance Pre-Contact .....................................................................................................17 2.3 Royal Proclamation to the Indian Act ....................................................................................................18 2.3.1 Historical Treaties .....................................................................................................................................19 2.3.2 British North AmericaAct Section 91(24) and the Indian Act ...............................................21 2.3.3 Federal Indigenous Self-Government Policy Initiatives .........................................................22 2.3.3 Modern Treaties .......................................................................................................................................24 2.3.4 The Present First Nations Governance System under s.91(24) ............................................27 2.4 Conclusion: Indigenous Nations and Governance Pre-contact to Present Day ................28 3.0 Indigenous Self-Determination ...................................................................................................................29 3.1 Indigenous Self-Determination and Governance Framework .................................................... 33 3.1.1 Our Nations’ Cultures, Traditional Values and World Views ................................................ 33 3.1.2 Relationships .............................................................................................................................................. 35 3.1.3 Autonomy ....................................................................................................................................................36 3.1.4 Capability ..................................................................................................................................................... 37 3.2 Conclusion: Indigenous Self-Determination ......................................................................................38 4.0 Relationships: Principles and Characteristics .......................................................................................39 4.1 Intra-community Relationships: Principles of Good Governance ............................................40 4.1.1 Conclusion: Intra-community Relationships: Principles of Good Governance ............42 4.2 Inter-community Relationships: Balancing Local Autonomy with “Strength in Numbers” ....................................................................................................................................................................43 4.3 The Crown-Indigenous Relationship: Reconciling Indigenous and Crown Principles ...44 4.3.1 Government of Canada Principles ....................................................................................................45 4.3.2 Report of the Royal Commission on Aboriginal Peoples .....................................................46 4.3.3 FNGP Advisory Group Principles ......................................................................................................47 4.4 Conclusion: Relationships – Principles and Characteristics .......................................................48 5.0 Autonomy: Self-Determination and Nation Rebuilding within the s.91(24) Crown- Indigenous Relationship ..........................................................................................................................................49 5.1 Government: Incremental Self-Government Initiatives within the s.91(24) Framework 50 5.1.1 Leadership Selection ................................................................................................................................51 Indian Act Elections ...................................................................................................................................................51 Custom Elections .........................................................................................................................................................51 First Nations Governance Project: Phase 1 Report 3 First Nations Election Act ........................................................................................................................................51 5.1.2 Land Management ....................................................................................................................................52 5.1.3 Taxation and Financial Management ...............................................................................................54 Indian Act Section 83 ................................................................................................................................................54 First Nations Fiscal Management Act................................................................................................................54 5.1.4 Indian Moneys ...................................................................................................................................................55 First Nations Oil and Gas and Moneys Management Act .......................................................................55 5.2 Fiscal Autonomy within the s.91(24) Framework ..............................................................................57 5.2.1 Federal Transfers.......................................................................................................................................58 5.2.2 Own Source Revenue .............................................................................................................................61 5.3 Sectoral Self-Government Initiatives within the s.91(24) Framework ....................................62 5.3.1 Education ......................................................................................................................................................63 5.3.2 Health ............................................................................................................................................................65 Health Transfer Policy ..............................................................................................................................................65 First Nations Health Authority .............................................................................................................................65 Charter of Relationship Principles Governing Health System Transformation in Nishnawbe Aski Nation (NAN) Territory ..................................................................................................................................66 Manitoba Keewatinowi Okimakanak .................................................................................................................66 5.3.3 Child and Family Services .....................................................................................................................67 5.3.4 Policing .........................................................................................................................................................69 5.4 Conclusion: Self-Determination and Nation Rebuilding within the s.91(24) Crown- Indigenous Relationship (Autonomy) ............................................................................................................70 6.0 Capability: Community Capacity-Building and Institutional Support for Self- Determination and Nation Rebuilding within the s.91(24) Legislative Framework ....................71 6.1 Community Well-being ............................................................................................................................72 6.1.1 Comprehensive Community Planning ............................................................................................. 73 6.1.2 Community Well-Being Index ............................................................................................................74 6.2 Effective Governance: Emergence of the Shared