When it comes to improving Indigenous economic outcomes there is a ‘chicken and egg’ difference of opinion on what needs to come first — social or economic change.
Ultimately this, like the chicken and egg causality dilemma, is a pointless argument. For economic development to occur effectively in Indigenous communities you need to focus on both the social/cultural context and the economic environment.
There have been few results for all the effort and time spent trying to fix the social problems in Indigenous communities because people have ignored one of the basics of economics — the need for individual incentives.
The cultural relativist paradigm has emphasised the communal nature of Indigenous culture and the dominant economic development model on Indigenous land is community owned, not-for-profit organisations known as ‘Indigenous corporations’.
The absence of a real economy on Indigenous land has led people to question whether “remote Aboriginal Australia has much of a future.”
But how can we expect there to be an economy when Indigenous people living on communal land are unable to leverage their land to establish private enterprise?
International examples show the dramatic changes that can occur when there is land reform and leadership that recognises “there is only one way to do business and that is the business way.”
The Osoyoos Indian Band is one of the most successful First Nations communities in Canada, with virtually all of its 520 members employed in the band’s businesses, because of land reforms and a chief who saw the value of joint venture partnerships and having strict financial accountability measures in place.
In Australia, instead of only focusing on community wide economic development initiatives, we need to ensure there are the right economic opportunities and incentives in place for private businesses — such as a mechanic, café, or hairdresser on Indigenous land.
In time, these individual pinpricks of light could eventually result in a ray of social change in Indigenous communities.
Home > Commentary > Opinion > Individual incentives needed for social change in Indigenous communities
Individual incentives needed for social change in Indigenous communities
Ultimately this, like the chicken and egg causality dilemma, is a pointless argument. For economic development to occur effectively in Indigenous communities you need to focus on both the social/cultural context and the economic environment.
There have been few results for all the effort and time spent trying to fix the social problems in Indigenous communities because people have ignored one of the basics of economics — the need for individual incentives.
The cultural relativist paradigm has emphasised the communal nature of Indigenous culture and the dominant economic development model on Indigenous land is community owned, not-for-profit organisations known as ‘Indigenous corporations’.
The absence of a real economy on Indigenous land has led people to question whether “remote Aboriginal Australia has much of a future.”
But how can we expect there to be an economy when Indigenous people living on communal land are unable to leverage their land to establish private enterprise?
International examples show the dramatic changes that can occur when there is land reform and leadership that recognises “there is only one way to do business and that is the business way.”
The Osoyoos Indian Band is one of the most successful First Nations communities in Canada, with virtually all of its 520 members employed in the band’s businesses, because of land reforms and a chief who saw the value of joint venture partnerships and having strict financial accountability measures in place.
In Australia, instead of only focusing on community wide economic development initiatives, we need to ensure there are the right economic opportunities and incentives in place for private businesses — such as a mechanic, café, or hairdresser on Indigenous land.
In time, these individual pinpricks of light could eventually result in a ray of social change in Indigenous communities.
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