This discussion paper, authored by Wayne Dunn, discusses how Canadian Aboriginal businesses, with their unique networking potential and their experience with industrial development projects, can provide a strategic advantage to Canada’s international trade efforts. The paper, which foreshadows the emergence of the corporate social responsibility movement (using the term Development Technology as the term Corporate Social Responsibility had not yet been coined), argues that Canadian Indigenous experiences in Development can provide a strategic advantage to Canada’s international trade efforts in key sectors.

1. ABORIGINAL BUSINESS AND INTERNATIONAL TRADE
CANADA’S STRATEGIC ADVANTAGE
A DISCUSSION PAPER
Prepared By: Wayne Dunn
Contact (current): Phone: +1.250-743-7619
Fax: +1.250-743-7659
Email: wayne@waynedunn.com
Date: 19 January, 1995

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Aboriginal Business & International Trade
Canada’s Strategic Advantage
INTRODUCTION
Canadian Aboriginal businesses, with their unique networking potential and their
development technology, can provide a strategic advantage to Canada’s international
trade efforts.
Aboriginal groups in countries around the world are getting more and more involved in
sustainable business development in their respective regions. These businesses are
often much more than arts and crafts and other such traditional undertakings.
Indigenous peoples often have preferential access to resource development and service
opportunities. Often, however, they lack the capacity to take advantage of these
opportunities on their own.
This is where Canada’s advantage comes in. Canadian Indigenous businesses are
seen as preferred partners by other Indigenous groups, especially in the developing
world. This preference can, if properly developed, result in a strategic advantage for
Canadian industry in many sectors.
Also, Indigenous ‘development technology--the way in which business is done to
maximize advantages and opportunities for local economies, while respecting the
environment--can enhance the marketability of traditional Canadian exports such as
construction and engineering services.
LATIN AMERICA
The Latin American economy is predicted to be one of the fastest growing economies in
the world over the next decade. Aboriginal businesses can give Canada a strategic
advantage in this region, as their Aboriginal counterparts in Latin America assume
increasingly important roles in development.
Noll Scott, writing in the Manchester Guardian on the Indigenous people of the Amazon
stated; “If the future of the Amazon is to be secured in the longer term, however, the
question of its social and economic integration and development must finally be taken
seriously...That means taking the Amazon out of its gilded cage and allowing its millions
of people full access to the benefits of modern civilization: health care and education
above all, but also sustainable forms of economic development...(Indigenous Peoples)
of the rainforest are not the enemy of conservation, but its brightest hope.”
Many Aboriginal groups in Latin America have access to resource development
opportunities in their territories, through land claims and other negotiated settlements.
The United Nations Decade of Indigenous Peoples, that was launched at the UN on
December 8, 1994, will increase the focus on Indigenous issues and result in greater
opportunities for Indigenous interests, as indicated in the above quote. The decade
should garner further support for Indigenous development from states and international
agencies. For example, Apikan, with support from Aboriginal Business Canada (ABC)
and the Canadian International Development Agency (CIDA), is playing a leading role
with the UNDP in developing a Global Environment Facility Trust Fund to Support
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Aboriginal Business & International Trade
Canada’s Strategic Advantage
Biodiversity and Indigenous Peoples Development in Latin America. This fund would
be able to support the development of Indigenous to Indigenous partnerships on
development projects.
Apikan, with the support of ABC, CIDA and the UNDP, conducted a scoping mission in
Central America during September and October of this year. This mission traveled to El
Salvador, Belize, Nicaragua, Guatemala and Panama, meeting with 194 individuals
representing 78 organizations. Indigenous people were unanimous in their desire to
work with Canadian Indigenous groups on trade and development projects.
The Scoping Mission fount that Indigenous Peoples are interested in development, not
against it as was previously believed by many. The Indigenous communities want
control and decision making over development, as the best way to protect the
environment and their peoples.
Opportunities identified on this mission went far beyond the crafts and small scale
enterprise that most people associate with Aboriginal businesses. Canadian
Indigenous partners are preferred to participate in mining and oil and gas developments,
forestry, eco-tourism, agriculture, fisheries, real estate development and other major
opportunities. As a direct result of this mission, Canadian companies have initiated
negotiations for oil and gas development on Indigenous lands in Nicaragua; for fisheries
development in Indigenous controlled Caribbean waters; for preferred positions on other
resource development opportunities including, mining, forestry, agriculture and Eco-
tourism. As well negotiations are underway between an Aboriginal interest in Canada
and a national Guatemalan group to establish a joint venture wholesaling and importing
operation. In addition, the profile Canada received as a result of this mission and the
work Apikan and others are doing in Latin America has many other Indigenous groups
looking to Canada for partners to develop their economy.
Latin American Indigenous groups have indicated that they do not have the capacity to
take advantage of many opportunities and prefer to work with Canadian Indigenous
groups wherever possible. These opportunities have the potential to benefit the entire
Canadian economy, as Canadian Indigenous groups often need to joint venture with non
Indigenous interests in order to undertake larger projects (i.e. mining, forestry, oil & gas,
fishing, etc.) Similar circumstances will no doubt unfold on larger scale infrastructure
development projects in Latin America, such as roads, bridges, Hydro projects, etc.
The preferred status of Canadian Aboriginal partners was reconfirmed at the
APIKAN/United Nations Development Program Round Table on Indigenous Trade and
Development held at the InterAmerican Development Bank in Washington, DC on
October 11, 1994. At this meeting, Indigenous leaders, international agencies and
alternative trade organizations all gave wholehearted support for Indigenous
partnerships for business development.
Clearly the Aboriginal business community gives Canadian business some very
important strategic advantages in the Latin American economy.
DEVELOPMENT TECHNOLOGY
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Aboriginal Business & International Trade
Canada’s Strategic Advantage
What is ‘Development Technology’? is a normal response to the assertion that Canada’s
‘development technology’ offers us a strategic advantage in exporting goods and
services to the developing world. Put simply, ‘development technology’ is a way of
maximizing local benefits from development projects such as roads, bridges, buildings,
factories, etc., which Canada has pioneered. Again, the involvement of Indigenous
peoples is the best way to protect the environment and local peoples in the development
process.
For example, traditional development methods would see a contract let for a
construction project in a developing country. The contract would often go to an
international firm that would bring in all equipment and most labour and concentrate
solely on getting the job done, leaving behind only the new infrastructure. Making use
of the ‘development technology’ that has been developed by the Canadian Aboriginal
community, the project would be executed in a way that would leave behind improved
local business capacity, profits and the new infrastructure.
The Canadian Aboriginal community has pioneered ways of organizing projects that
allow the maximization of local benefits through locally executed subcontracts and local
purchase of goods and services. This adds very little, if any, to the total cost of the
project and leaves behind a local economy that is ready to take advantage of future
opportunities that will result from the new infrastructure. It also helps to ensure proper
concern for the environment during the development process.
Generally speaking, developing countries want to maximize the benefits to their local
economies from the process of developing their infrastructure. The application of
‘development technology’ is how this can be accomplished. Canada, largely through the
experience of our Aboriginal community, has the best ‘development technology’ in the
world. This is recognized in many areas of the world, and could easily be promoted as
a unique Canadian feature giving our industries a strategic advantage in this growing
market.
Developing countries and regions, often with support from the World Bank and other
multi-lateral institutions, are rushing to build the infrastructure that will support the
development of their economies. There are many billions of dollars worth of
opportunities for Canadian industry. Unfortunately, the competition for these
opportunities is fierce, and countries throughout the world are seeking to create
advantages for their industries in this market. Canadian ‘development technology’ is
world class, and highlighting it will position our exporters very well in these sectors.
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Aboriginal Business & International Trade
Canada’s Strategic Advantage
Linking our ‘development technology’ and environmental expertise with traditional
Canadian industrial exports such as engineering, construction and manufacturing, and
adapting a marketing strategy that highlights the benefits, will give Canada a particular
advantage in the international market for construction and engineering services.
INTERNATIONAL PROFILE
The international profile of a country is becoming increasingly important to its trade
goals. Consumers are becoming aware of the production history of goods and
services, and are increasingly willing to pay premium prices for products that do not
exploit people or the environment. The FairTrade movement is growing rapidly and
some European countries are examining methods of advantaging FairTrade products
with their tax system. A country that is noted internationally for its ‘development
technology’ would see an increased tendency for its products and services to be
preferred in the marketplace.
Currently, Canada is seen as a world leader in Aboriginal business development. The
UNDP and other international agencies recognize this and seek out the expertise of
Canadian groups such as Apikan, to assist in designing and implementing Indigenous
development policy. This recognition helps to create a positive image for Canada that
can be brokered into increased trade opportunities. This recognition and involvement
also identifies many trade opportunities as a result of the networking opportunities it
provides.
CONCLUSION
Clearly, Canada’s Indigenous businesses give us unique advantage in some key
international sectors (resource development, construction, engineering, etc.). This
advantage is only just beginning to be understood by government and Industry alike.
With proper education of our trade officials and industry, and proper development work
to establish the international Indigenous partnerships, Canada can take advantage of
this opportunity.
Canada should undertake the development and implementation of a strategy to take
advantage of the opportunities available to Canadian industry through the strategic
advantages available through Indigenous businesses. At a minimum, this strategy
should educate trade officials and industry as to the possibilities, assist Indigenous
businesses to take advantage of opportunities and work with various multi lateral
agencies to examine international infrastructure options, such as the proposed Trust
Fund to support Biodiversity and Indigenous Peoples Development, that could support
Indigenous to Indigenous partnerships for development.
Apikan Indigenous Network 19-Jan-95ABORIGINAL BUSINESS and International Trade - CANADA’S STRATEGIC ADVANTAGE