Tax incentives investing with North America’s Indigenous
By
Terrance H. Booth, Sr. – Tsimshian Tribe Alaska
Investments with America’s Indigenous population can be beneficial for both the investor and the tribes. Over the years like among Alaska Native and Native American Tribes there are in place several tax incentives to entice potential investors, joint ventures or partnerships to develop a working relation with the Tribes.
“Sustainable economic development is critical for Indian communities across the United States. Contrary to what the mainstream media reports on Indian Gaming, the reality is that Indian reservations have a poverty rate of 26%-- the highest poverty rate of any ethnic grouping in America. Indian unemployment is disproportionately high. Indian health, education and income statistics are the worst in the country. While a few tribes have achieved a measure of success, the vast majority of tribes continue to be mired in a severe economic depression caused by decades of marginalization. Tribes are striving to achieve economic stability and self-sufficiency by using the growing tools of self-governance. The strength of sovereignty is beginning to bear fruit in many Indian communities. Yet, it is critical that economic development and job growth in Indian communities have a high priority.”
(http://www.ncai.org/Economic-Development.45.0.html)
“The Indian nations of the United States face a rare opportunity. This is not the occasional business opportunity of reservation legend, when some eager investor would arrive at tribal offices with a proposal “guaranteed” to produce millions of dollars for the tribe—although such investors still appear, promises in hand. Nor is it the niche economic opportunity of gaming, although that has transformed some tribes’ situations in important ways. This opportunity is a political and organizational one. It is a chance to rethink, restructure, reorganize—a chance not to start a business or exploit an economic niche but to substantially reshape the future. It is the opportunity for nationbuilding.
This opportunity has been unfolding during the last two decades. It is a product of changed relations between Indian nations and the federal government, relations with roots in the Indian politics of the 1960s and in the failure of a century of United States Indian policies that established the federal government as the primary decision maker in Indian country. Since the mid-1970s, partly in response to the demands of Indians themselves, federal policy has shifted toward something called “self-determination”: a belief, often more stated than acted upon, that Indian nations should determine their own futures.
This shift toward self-determination has allowed those nations that have been willing to do so to engage in genuine self-governance, to turn sovereignty as a legal matter into de facto sovereignty: sovereignty in fact and practice. They still face many constraints, not least the power of the courts and of the United States Congress, but since 1975 a significant number of Indian tribes have become the effective decision makers in their own affairs, often with strikingly positive results.” (Soverreignty and Nation-Building: The Development Challenge in Indian Country Today. By Stephan Cornell and Joseph P. Kalt
http://athousandnations.com/2010/07/02/let-560-nations-bloom-within-the-boundaries-of-the-u-s/
In Consultation with the Alaska Native and Native American Tribes Congressional Legislation got enacted to specifically address the social and economic state of Indian Country, USA.
Alaska Native and Native American Tribes being economically depressed areas and some tribes became an Enterprise Community, Empowerment Zones and other definitions under US Department of Agriculture – Rural Development Programs giving these tribal communities with a listing of several tax incentives. All listed under Publication 954 – Tax Incentives for Distressed Communities. (http://www.irs.gov/pub/irs-pdf/p954.pdf)
There are several programs working to enhance Tribal Businesses across America. The US Department of Commerce goal: Department of Commerce Tribal Consultation Policy Plan
Economic Development—serves as the facilitator of the Office of Native American Business Development by assisting and consulting with Indian Country in leveraging the combined efforts of the federal programs, tribal governments, private sector businesses and financing in order to promote economic growth for Tribes and Native Americans. (http://www.commerce.gov/office-secretary/native-american-affairs) US Economic Development Admiinstration has been workiing with tribes for a very long time and their dollars can be leveraged with investment dollars creating realistic projects for Tribes. EDA Mission: “To lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy." Projects include planning, infrastructure, expanding existing tribal businesses, marketing and job development.
Several Tribes have established their own tribal business ordinances to attract businesses to their reservation settings. Creating a business friendly environment for potential business opportunities to happen on tribal lands. Also, existing with some tribes located near large urban cities they have established industrial or commercial parks to bring and establish businesses working directly with corporations or companies that desire to work within an American Indian Community. Plus, several tribes have a tribal entity that specifically engages with companies or corporations separate and apart from their tribal councils keeping arms length away from Councils and allowing economic development projects to take there full course to implementation.
Potential investors work directly with tribal economic development entities that have staff outlining the process, and tribal protocol and steps toward implementing funded programs upon tribal lands. Several Alaska Native and American Indian Companies also exist on or near Tribal lands. The latest information is: “Over the last decade Native-owned businesses nearly doubled to 200,000 and gross incomes increased to $34.5 billion.” (http://www.nativeamericacalling.com/nac_past.shtml)
American Indian- and Alaska Native-Owned Businesses
· The number of American Indian- and Alaska Native-owned businesses totaled 237,386 in 2007, up 17.9 percent from 2002; total receipts of these businesses were $34.5 billion, up 28.3 percent from 2002.
· In 2007, 30.5 percent of American Indian- and Alaska Native-owned businesses were in construction, repair and maintenance, and personal and laundry services.
· American Indian- and Alaska Native-owned businesses accounted for 10.0 percent of businesses in Alaska, 6.3 percent in Oklahoma and 5.3 percent in New Mexico. (http://tinyurl.com/2c69bwu)
Book Review
The State of the Native Nations / Edition 1 by The Harvard Project on American Indian Economic Development
Synopsis
Media filters and personal preconceptions can make it hard to get a clear view of present-day Indian America. The reality is that the 500+ Native nations in the United States confront many of the same day-to-day challenges that are faced by other nations and communities—raising children with strong identities, practicing religion, providing economic sustenance, strengthening culture, managing business and governmental affairs, and protecting public health and safety—but they are doing so from foundations built on their distinct histories, cultures, and circumstances. The State of the Native Nations: Conditions under U.S. Policies of Self-Determination chronicles the efforts, obstacles, and accomplishments that are shaping Indian Country under contemporary federal policies and responsive tribal strategies of self-determination.
In The State of the Native Nations, the Harvard Project on American Indian Economic Development brings together scholars and Native leaders to produce the most comprehensive, cohesive interdisciplinary study available on current conditions and trends in Indian Country. Broad in scope and thematically organized, the volume features twenty-three chapters covering issues ranging from tribal governance, land and natural resources, and economic and social development, to arts and culture, the large off-reservation Native population, and federal Indian policy. Fourteen accompanying essays bring to life the personal perspectives of noted national leaders in Native affairs. The result is invaluable insight into the universal challenges of creating resilient, sustained, and self-determined communities.
FEATURES:
* Balances first-person accounts and field findings with extensive and up-to-date data and facts
* Emphasizes the critical issues of Native self-determination and nation-building
* Puts contemporary issues in their historical and policy contexts
* Integrates case studies that highlight successful examples of the practice of Native nation self-determination
Potential opportunities for tribes in Alternative Energy
Some Samples of what tribes doing in Alternative Energy
Tribal lands have the potential to produce 17.6 trillion kilowatt hours of electricity a year from solar power, about 4.5 times the total amount of electricity generated in the US in 2004. The lands also are capable of producing an estimated 535 billion-kilowatt hours of electricity per year from wind power.
The Campo Kumeyaay Nation outside San Diego hosts the only wind farm on tribal land in the country. It plans to invest $60 million in a second one, securing 20 percent ownership. The tribe will acquire full ownership of both wind farms after 25 years of operation. (http://tinyurl.com/y9c2cxn)
Every Tribe in North America has Solar, Wind, Water, and Biomass that can be converted into energy. Why energy? All of America will need 70% more electricity by the year 2016. And tribes can readily see America still has to get rid of its fossil fuel addiction before America even makes a move in the alternative energy needs. Population growth dictates a need for more energy. Arizona from 1990 to 2000 nearly doubled in size and the current US Census Report will reveal the growth in some areas of America. Who will provide the energy needs? Tribes can through the formation of alternative energy parks and sell needed energy to utility companies.
Some Tribal Successes
25 Businesses and Counting Mississippi Choctaw
Today the tribe oversees 22 businesses and is majority owner in three additional joint ventures. Its biggest endeavor is Pearl River Resort, whose two casinos make the tribe the third-largest Indian gaming operator, behind Connecticut\'s Mashantucket Pequots and Mohegans. The tribe has created 8,000 jobs, more than 60 percent of which are held by non-tribal members, and estimates its annual economic impact on Mississippi at $1.2 billion.
http://www.nativepeoples.com/article/articles/100/1/Rez-Biz-Growing-Native-Economies/Page1.html
So this writer concludes investment with North America’s Indigenous in several areas: health initiative, new tribal businesses individual owned, education initiative in creating tribal professionalism and opening up way to globalization, cultural preservation in dances, songs, stories, and Native Arts, economic analysis studies to show what needs to be in place for tribes to prosper, joining of forces in area of Native Products instead of selling to buyers who benefit by value adding Tribes create their own products and labeling for different markets like all the agriculture products it is said that 2/5 of food in America originate from American Indians What should be happening with Native Foods:
About American Indian Foods
The American Indian Foods (AIF) program administered by the Intertribal Agricultural Council (IAC) will introduce Native American food products to the Asian food trade during FHA2010.
The American Indian Foods Export program markets food products produced by Native American Indigenous Tribes or peoples; promoting the Native use of Native resources for the benefit of American Indian people. The program is designed to work with Tribal and individual American Indian owned businesses to provide export education and to facilitate global market penetration.
Nathan Notah & Tina Voigt who administer the program have a primary goal to improve the economic situation for the thousands of American Indian farmers and ranchers. “We aim to pursue and promote the conservation, development and use of our American Indian agricultural resources for the betterment of our people,” states Notah. He continues to say, “We appreciate this exciting opportunity for us to include American Indian Foods that have been grown for centuries on menus and store shelves in Asia. We continue to stress high quality, natural production, food-safety standards, diversity and consistency.”
Native Natural Southwest Native Foods located in Albuquerque, New Mexico is promoting Anazasi beans, red chili powder and parched blue corn. The Anzasi beans are a perfect side dish and the red chili powder is used as a seasoning on foods.
Wilderness Delights located in White Swan, Washington is promoting wild morel and bolete mushrooms and wild huckleberries. The company harvests these products in the wild with the mountain ranges of the Pacific Northwest.
Swinomish Fish Company from the Swinomish Indian Nation in Washington will be showing fresh seafood products. The company harvests these products from the Tribal waters in the Pacific Ocean in the North Eastern United States.
Foods from Native American Indians come from tribes in the United States and are grown on lands of the Native American Nations or from their natural waters. Many of the products sold are still harvested in ways defined hundreds of years ago by the American Indian Tribes.
Food products from participants in the American Indian Foods export program include beef jerky, chillis, popcorn, wild rice, fry bread, produce, berries, American Bison meat, seafood/fish, mushrooms, apples, cranberries, seasonings and other agricultural products.
Products are labeled with the respective Tribal affiliation, illustrating the respective homeland where the product is produced and the authenticity label “Made/Produced by American Indians” Trademark. Our goal is to put Tribally owned businesses in contact with International buyers interested in food & agriculture products. American Indians have contributed to the world’s diet and have a unique connection to nature while taking great pride in the foods they produce.
In addition to exhibiting at food shows, American Indian Foods sponsors Native Tastes cooking demonstrations, foreign buyer missions and press missions. Native Tastes activities have been held in various parts of Asia in the past to introduce the food trade to American Indian Foods products. The program included a presentation on American Indian Foods, dishes prepared with Native American products and a cooking demonstration by a Native American Chef.
To learn more about American Indian Foods and the participants in FHA2010, visit our booth at 7c3-o1 in the USA Pavilion.
We are continually informing the international food markets of American Indian Culture and the availability of American Indian Food Products. This is a unique opportunity for Tribal interaction with international buyers, brokers and distributors to set-up deals, establish communications and gain access to foreign markets. To experience these Native American Tastes, always watch for the authenticity label "Made/Produced by American Indian trademark. Added emphasis by writer national grocery store chains have their diversification programs whereby minorities and more so our American Indians in Agriculture can market their products at local grocery stories by signing up to get their products in the market places of the globe.
For more information after the show our Website or contact Mike Moretti, American Indian Foods’ Asia consultant.
For Alaska Native, American Indian and First Nations fisheries there should be formation of an International Alliance for their fisheries. Proposed Alaska Native and BC First Nations: Preliminary steps was talking to the Haida and Tlingit fishermen of Southeast Alaska and they readily indicated that they preferred going with direct marketing concepts and liked the idea of create seafood volume my the joining of the International Alaska and British Columbia Native Fisheries Alliance. Other outreaching included Haida Nation of BC and Port Alberni which is known as the “Salmon Capital of the World.” Both areas in BC wanted more direct control and have the ability of creating seafood volume for China and gain better prices. With the information collected International Alaska and British Columbia Native Fisheries proceed to seeking investors for the four Native groups. This is first time Natives have joined forces in a Seafood Alliance and they see it as an opportunity to benefit not only them but bring economic stability to their Native Communities. Not only will it benefit their communities in brings financial benefits to create seafood volume for China, which has a growing seafood consumption and as its population grows the higher the seafood consumption. Both area fishermen are looking for a successful effort of finally having control of their fisheries with management, marketing and sales and caught and harvested and processed by Natives to feed the world.
The mindset of Tribal leaders of North America is there exists ia dire need to improve the quality of life for their current generation and that into the future. So any investment with America’s Indigenous will benefit both the tribes and the investor for they both can experience providing solutions to the social and economic status of all tribal people
References:
1. National Congress of American Indians – Economic Development
2. Let 560 Nations Bloom within the Boundaries of the U.S.
3. US Department of Commerce Native American Affairs
4. Report: American Indian tribes key in renewable energy development
5. Native Peoples Magazine – REZ BIZ – Growing Native Economies
6. American Indian Foods April 2010 Singapore Expo
