Role of property rights in ensuring well being of indigenous people in Canada

[Barun Mitra]

The Wealth of First Nations: An Exploratory Study
Fraser Institute, Canada, June 2013

The standard of living of First Nations (indigenous people) is on
average much lower than that of other Canadians, but some First
Nations have achieved higher well-being than others.

A paper published by Fraser Institute, looks into the factors that
promote prosperity for First Nations. The paper, authored by Tom
Flanagan and Katrine Beauregard, use the Community Well-being Index
(CWB), calculated by the Department of Aboriginal Affairs, as a
measure of prosperity for First Nations.

As possible explanations of differences in well-being, the authors
develop and test four indicators of respect for property rights and
the rule of law: use of Certificates of Possession, adoption of
property tax, entry into the First Nations Land Management Act, and
avoidance of third-party management. In a multiple regression
analysis, all four variables are positively correlated with higher CWB
scores, even after controlling for cultural background and remoteness
of location. Our findings are consistent with comparative and
international research that has highlighted the importance of property
rights and the rule of law for economic growth.

Introduction

By any standard, Canada’s First Nations (status Indians), especially
those who live on reserves, are less well-off than most other
Canadians. First Nations people lag behind other groups, even other
Aboriginal groups such as Métis and non-status Indians, in income,
rate of employment, quality of housing, years of education, life
expectancy, and any other aspect of standard of living
that can be objectively measured (Flanagan, 2008: 222-230). Canadians
from all parts of the political spectrum agree on the need for First
Nations to attain a higher standard of living, but there is no
unanimity on how to attain that goal.

Yet not all the approximately 600 First Nations are in the same
situation. Some are living in near-Third-World standards of
destitution, while others enjoy a standard of living similar to the
Canadian average. This great range of variation offers a statistical
opportunity to look for the correlates of success, which may in turn
offer some practical direction on how all First Nations can improve
their standard of living.

The complete paper may be downloaded from here.
http://bit.ly/H8YJ49