Mining a Better Future: Approaching Economic Growth and Sustainable Communities in Context of Mining in Nunavut by Nadav Goelman B.A. (Professional Communications), Royal Roads University, 2010 Capstone Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Public Policy in the School of Public Policy Faculty of Arts and Social Sciences © Nadav Goelman 2014 SIMON FRASER UNIVERSITY Spring 2014 Approval Name: Nadav Goelman Degree: Master of Public Policy Title of Thesis: Mining a Better Future: Approaching Economic Growth and Sustainable Communities in Context of Mining in Nunavut Examining Committee: Chair: Dominique M. Gross Professor, School of Public Policy, SFU Nancy Olewiler Senior Supervisor Professor Doug McArthur Supervisor Professor Maureen Maloney Internal Examiner Professor School of Public Policy Date Defended/Approved: March 5, 2014 ii Partial Copyright Licence iii Ethics Statement iv Abstract Resource development near isolated communities in Nunavut exacerbates preexisting social problems that are insufficiently ameliorated by the policy frameworks addressing them. Data from Baker Lake shows rising crime rates correlating with the mine’s arrival; and failure to ameliorate stagnant, declining education outcomes. The current framework of policy is comprised of loosely coordinated efforts by the federal and territorial governments. Supplemental community-driven research was found to identify additional interventions that garner renewed local support and heightened efficacy. Economic modeling of estimated costs and benefits of these interventions within three alternatives: a local, regional, or territorial rollout, revealed plausible net benefits at various discount rates. Additional qualitative evidence of pros and cons for each alternative supported recommendation of up to three local pilot project(s) to assess efficacy of these interventions to mitigate, ameliorate, and prevent the negative side effects of resource development in Nunavut, and remove barriers to equitable sustainable economic growth. Keywords: Nunavut; Economics; Communities; Sustainability; Mining; Education v Acknowledgements I want to acknowledge all those who helped me complete this study. In particular I thank Dr. Nancy Olewiler, my Senior Supervisor, without whom I would never have started, let alone finished, this project. I thank my incredible parents Hillel and Sheryl, my older brother Zachary, and my beautiful fiancé Sylvia, who stood by me throughout my work, when I was at my best, and also when I was at my worst. Of course I had numerous advisors and editors who played vital roles in my efforts who I would like to acknowledge. These include my Capstone research group: Jonathan Arnold, Chelsea Notte, Joyce Yuan, Nermine Tawfik, Katie Schilt, and Brittany Barker; Mr. Matthew Spence, Director General – Northern Projects Management Office: Canadian Northern Economic Development Agency; Dr. Greg Finnegan, Socio-Economic Assessment Specialist; Mr. Tom Hoefer, Executive Director – NWT & Nunavut Chamber of Mines; Mr. Larry Campbell, Corporate Director of Sustainable Development – Agnico- Eagle Mines; All of my informants, interviewees, and various data providers that facilitated my analysis; and Vancouver’s many coffee shops that contributed to my overall wellbeing throughout this immense undertaking. I would also like to thank the Social Science and Humanities Research Council for funding my research with a Joseph-Armand Bombardier Canada Graduate Scholarship. vi Table of Contents Approval ............................................................................................................................. ii Partial Copyright Licence .................................................................................................. iii Ethics Statement ............................................................................................................... iv Abstract .............................................................................................................................. v Acknowledgements ........................................................................................................... vi Table of Contents .............................................................................................................. vi List of Tables ..................................................................................................................... ix List of Figures .................................................................................................................... x Executive Summary .......................................................................................................... xi Chapter 1. Introduction: Setting the Precedent ......................................................... 1 1.1. The Policy Problem ................................................................................................ 12 1.2. Research Objective ................................................................................................ 13 1.3. Capstone Overview: Rationale & Terminology ...................................................... 13 Chapter 2. Policy Context: Surveying the Terrain ................................................... 15 2.1. The Magnitude of Mining in Nunavut ..................................................................... 15 2.2. Marginal Costs and the Investment Climate in Nunavut ........................................ 18 2.3. Building Human Capital in the Inuit Labour Force ................................................. 19 Chapter 3. Policy Makers & Stakeholders ................................................................ 21 3.1. Federal Jurisdiction ................................................................................................ 21 3.2. Territorial Jurisdiction ............................................................................................. 23 3.3. Municipal Jurisdiction ............................................................................................. 25 3.4. Regional & Aboriginal Interests .............................................................................. 26 Chapter 4. Research Methodology ............................................................................ 29 4.1. Interviews, Conversations & Conferences ............................................................. 29 4.2. Framework Gap Analysis through Literature ......................................................... 30 4.3. Benefit-Cost Economic Modelling .......................................................................... 30 Chapter 5. Framework Gap Analysis ........................................................................ 32 5.1. Elements of the Gap: Sorting out the Pieces ......................................................... 32 5.2. A Community-Driven Supplementary Framework .................................................. 39 5.3. Progress & Opportunities as Described in Baker Lake .......................................... 40 vii Chapter 6. Creating Framework Portfolios ............................................................... 51 6.1. Screening and Prioritizing Portfolio Options .......................................................... 51 6.2. Assembling and Costing the Portfolios .................................................................. 52 6.3. Forecasting Benefits of the Portfolios .................................................................... 54 Chapter 7. Criteria and Measures .............................................................................. 62 7.1. Criteria ................................................................................................................... 62 7.2. Measures ............................................................................................................... 63 Chapter 8. Policy Alternatives: Small to Large ........................................................ 64 8.1. Alternative One: The Pilot Project .......................................................................... 65 8.2. Alternative Two: The Regional Investment ............................................................ 66 8.3. Alternative Three: The Territorial Approach ........................................................... 68 Chapter 9. Recommendations ................................................................................... 71 9.1. Fixing Windows ...................................................................................................... 71 9.2. Selecting from the Alternatives .............................................................................. 71 Chapter 10. Conclusion ................................................................................................ 77 10.1. Future Research .................................................................................................... 79 Chapter 11. Limitations & Qualifications .................................................................... 81 Chapter 12. About the Author ...................................................................................... 81 Bibliography .................................................................................................................. 85 Appendix A. Mines and Potential Mines in Nunavut .................................................. 98 Appendix B. Adult Workshop, Seminar, and School Curriculum Content Needed.. .............................................................................................................