Nunavut at economic crossroad
Invest in people, not corporations, say Center for Sustainable Economy report authors
Michele LeTourneau
Northern News Services
Monday, September 19, 2016
NUNAVUT
For Nunavut to get on its financial feet at this moment in history, nothing less than a shift in approach is needed - from embracing large-scale mining and oil and gas to growing small-scale localized economies.
Nunavut is at a crossroads, say the authors of Beyond Fossil Fuels: Sustainable Development Opportunities in Eastern Nunavut
"What we're saying is don't put all the economic development eggs in one basket. Spread it out evenly into lots of smaller scale options that are more sustainable in the long run and will help balance out revenues in the long term," John Talberth, president and senior economist for the Center for Sustainable Economy, told Nunavut News/North.
"There's a lot of pressure to go down the road of oil, gas and resource extraction as a centerpiece of the economy. Our report does two things. One, it points out how badly that economic development path has failed in many parts of the world where it's been embraced. Two, that there are many other options out there that are likely to deliver a much higher return for individuals and communities."
As examples, Talberth, based in Oregon, and co-author Daphne Wysham point to building human capital, renewable energy, indigenous tourism and sustainable fisheries as viable areas of sustainable development.
"The whole purpose of an economy is to provide ways for people to make a living, earn a livelihood, wherever they live. All these options we're talking about (in the report) increase the odds of people living in Nunavut, wherever they live, bolstering their skill sets, their level of knowledge and expertise, so they can choose a future economic pathway that they want."
The 56-page report was commissioned by Greenpeace, the organization supporting Clyde River's bid to halt a five-year seismic testing program off the coast of Baffin Island near the community.
Talberth says revenue can be generated by individual large projects, like a new mine, or by many, many smaller business enterprises.
"We think in the long run, the revenue from developing an economy around many small sustainable enterprises is going to be higher than the revenue generated by resource extraction simply because resource extraction is come in, get the resources out and close down."
Talberth points to Alaska.
"That should be a wake-up call to any region that wants to build its economy around resource extraction. Resource disappears or it becomes unprofitable and the economy is left stuck with few options."
Talberth has this to say when asked about Nunavut's myriad social issues, such as overcrowding and food insecurity, which might hamper the ability of Nunavummiut to get focused on business.
"The tragedy is the Canadian government, and definitely our government here in the U.S., they spend trillions of dollars of taxpayer money, giving it to corporations, to incentivize pipelines and oil and gas exploration, and that money - even a fraction of that money - could be spent providing basic human needs like affordable housing, renewable energy, high-speed Internet ... a fraction of the cost of the subsidy to the resource extraction industry."
Talberth says that would lay the foundation, once basic human needs are met, for small-scale, prosperous solutions.
"It's economic development that's people centered, that focuses on livelihoods, not so much on producing government revenues," he adds.
"That being said, having lots of successful small sustainable businesses, for instance in the tourism sector, as those thrive and tax revenues are passed on, the larger economy does benefit. It's just from lots of smaller sources rather than big centralized sources, such as a big, new mine."
Tourism is one of the areas the authors elaborate on in the report.
"The demand for the authentic indigenous tourism experience is skyrocketing. There are millions of people in Canada, in Europe, in the United States who want to come visit Nunavut and learn about ways of life that are more in harmony with the planet, that are also more in harmony with cultural traditions. So it meets demands from the population for these kinds of experiences. And that's just the one sector."
But Talberth isn't talking about the sort of tourism involving giant cruise ships like the Crystal Serenity, with its 1,700 souls, which travelled through the Northwest Passage making brief pit stops in two Nunavut communities. Millions are generated by the company, with very few dollars generated within the community over time.
"It's the opposite. It's about changing the whole frame of thinking, the default, that economic development is these big massive projects. Big massive projects that take billions of dollars in investment - history shows they really don't work out in terms of improving livelihoods over the long term," said Talberth.
"A business might only employ three or four people but it might be a really cool indigenous tourism business like in another part of Canada with teepees watching the Northern lights. This kind of stuff, people get excited about it. And people can learn the skills and know-how to start creating the businesses and earning a living - with enough education and training."
The Government of Nunavut received the report in late August, the day it was released, said Catriona Macleod, director of communications for the Department of Executive and Interdepartmental Affairs.
"It is being reviewed by a number of departments through the government's sustainable development working group," she said.
"Any independent report that contains sound and concrete ideas that help inform good policy and wise use of resources is welcomed. Reports are usually reviewed by the program specialists, and their review/findings typically go to operational staff for further discussion."
Talberth concludes: "We think small business owned locally is better than big business owned by corporations that have fat cats at the top, with 100 yachts and spend their money around the world ... Lots of individuals being prosperous rather than just the top end of the population."
A copy of the report is available on the Greenpeace website.