NATIVE AMERICAN ECONOMIC POLICY REPORT

NATIVE AMERICAN
ECONOMIC POLICY REPORT
DEVELOPING TRIBAL ECONOMIES
TO CREATE HEALTHY, SUSTAINABLE, AND
CULTURALLY VIBRANT COMMUNITIES
PRODUCED BY
National Congress of American Indians
AND THE
Department of Interior,
Office of Indian Energy and Economic Development
2007

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“Markets and commerce were not
invented in Europe. When Columbus
made shore, Indians…had already
developed a broad and complex
commercial network.”
—DIRK KEMPTHORNE, SECRETARY OF THE DEPARTMENT OF
THE INTERIOR, KEYNOTE ADDRESS, NATIONAL NATIVE
AMERICAN ECONOMIC POLICY SUMMIT, MAY 15TH, 2007

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Table of Contents
INTRODUCTION
2
STRENGTHENING GOVERNANCE
6
Law Reform
6
Community Planning
7
Trust Reform
7
Financial Management Skill Development
8
Individual Tribal Leader Capacity Building
9
Financial Jurisdiction
9
Law Enforcement and Social Conditions
10
INFRASTRUCTURE DEVELOPMENT
11
General Infrastructure Development
11
Housing Infrastructure Development
12
Water and Sewage Infrastructure Development
13
ACCESS TO CAPITAL
14
Tax Exempt Bonds
14
Market Access
14
Financial Institution Development
15
Small Business Funding
15
Individual Access
16
TAX POLICY
17
Business and Employment Tax Credits
17
1
Tribal Corporation Taxation
17
Federal Franchise Taxation
18
Sales and Use taxation
18
BUSINESS DEVELOPMENT
19
Government Contracting
19
Vendor Support
20
Business Planning
20
Business Training
21
Business Services
21
Trade
22
INCLUSION AND COORDINATION
23
Data
23
Consultation
23
Promotion of Good Business Practices
24
Branding of Native Products
24
Enhancement of Tribal Service Programs 24
Shared Best Practices
25
Existing Incentive
25
Native American Economic Policy Report • 2007

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Report Intent
Although the White House Intergovernmental
Affairs initiative and the Department of the
Interior initiated and underwrote the National
Native American Economic Policy Summit
(Summit), the resulting policy recommendations
and the subsequent policy report entitled Native
American Economic Policy Report 2007 reflect
Summit participant views and recommendations
and not necessarily those of the federal
government.
The recommendations and report are the direct
product of a series of meetings with tribal
leaders and other vested partners affected and
influenced by Native American economic policy
issues. The White House and DOI support the
public dissemination of the report, but this
does not in anyway imply endorsement for the
recommendations or the report.
Native American Economic Policy Report • 2007

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Introduction
During the National Native American Economic Policy Summit (Summit) held in Phoenix,
Arizona, May 15-17, 2007, over 500 key stakeholders gathered to discuss the challenges to growing
healthy, vibrant Native economies. In addition to identifying challenges, participants were asked to
recommend innovative and progressive solutions to foster economic growth. The highly-successful
Summit, born out of a White House Intergovernmental Affairs (WHIA) initiative, was hosted by
the Office of Indian Energy and Economic Development within the Department of Interior and
the National Congress of American Indians (NCAI).
The Summit was organized around three tracks: Infrastructure, Capital and Finance, and Business
Development. Since many of the policy solutions transcended individual tracks, the report is
organized around categories that summarize common policy challenges. The report identifies
100 recommendations for policy change.
THE IMPORTANCE OF VISION
3
Participants were encouraged to envision the future they would like to see for Indian Country,
and asked to recommend innovative and progressive solutions to move toward that vision. The
development of a collective vision for the economic future of tribal communities, and the shift
from a problem-centered to a vision-focused approach, is what made this Summit so unique.
Over three days of presenting ideas and facilitated discussion, participants were challenged
to think beyond existing programs and barriers and create a shared vision – where Native
economies foster the development and growth of strong Native communities.
Traditionally, Native leaders and communities placed significant value on vision and long-term
planning. Today, despite the increasing sophistication of tribal governments and the scope and
complexity of issues, Native communities often deal with results in an approach largely focused
on reacting to challenges immediately before them and solving problems.
Planning group members and participants in the Summit made a deliberate decision and
concerted effort to focus on vision and creating a different future for Native communities.
This approach is in sharp contrast to brainstorming exhaustive lists of intractable problems that
our communities have struggled with for decades with incremental steps attempted at solving each
one. Focusing on creating a collective vision for the future of Native economies gave Summit
participants the freedom to dream beyond the current economic reality and develop strategies to
create the future that Native people and tribal governments desire.
Native American Economic Policy Report • 2007

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OVERARCHING THEMES
Throughout the course of the Summit, a number of issues were raised repeatedly in all three of
the substantive tracks as well as the plenary session. Some of these issues can be seen as guiding
principles that should be a backdrop to any conversation about tribal development. Others are
foundation pieces that will undergird successful tribal development efforts. These overarching
themes are summarized below:
Strengthen Sovereignty and Tribal Governance
Summit participants stressed that a key component of tribal development is strengthening tribal
sovereignty through constitutional reform, institution building, and tribal code development.
Tribal Self-Sufficiency & Treaty Rights
Related to the concept of strengthening tribal governance, participants stated that tribal
development efforts need to move tribes toward self-sufficiency while at the same time working
to protect treaty rights and the obligations of the federal government toward Indian people.
4
Cultural Relevancy & Community Involvement
Participants made clear that development must be conducted in a way that is culturally relevant
and that involves the community to the greatest extent possible.
Community Planning
Many Summit attendees stressed the need for community planning as a first step in developing
healthy, vibrant communities. Participants repeatedly affirmed that tribal planning efforts should
be: 1) comprehensive in nature, 2) rooted in tradition and culture, 3) community-driven, and 4)
supported by federal policy.
Human Development
Financial, Business, and Leadership Training - The need for training for tribal citizens and tribal
leaders was raised in a variety of contexts. Participants highlighted the need for financial, business
and leadership training for tribal leaders. They also stressed the need to develop a well-trained,
financially savvy citizenry and workforce.
Partnerships: Between Tribes and Beyond
Inter-tribal collaboration and business partnerships that reach beyond borders were a major topic
of discussion at the Summit.
Native American Economic Policy Report • 2007

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Communication: Sharing Best Practices
In addition to opportunities for inter-tribal commerce, participants stressed the need
for increased information sharing among tribes. Participants expressed a strong desire
for opportunities to share best practices and innovative approaches with other tribes.
Strong Intergovernmental Relationships
Summit participants repeatedly acknowledged the importance of intergovernmental
relationships between tribes, the states, and the federal government.
Public and Policy-Maker Education
Participants also recognized the importance of educating the public and policy-makers
about the contemporary reality of Indian tribes.
5
Native American Economic Policy Report • 2007

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Strengthening Governance
The broad concept of strengthening governance emerged as a theme that cuts across Summit track
discussions and will impact the effectiveness of many other strategies. Both the vision for a better
economic future, and the path to achieving it, require a range of efforts to improve the governing
institutions and governance practices in tribal communities.
LAW REFORM
In addition to the common discussion within and among tribal communities about the need to
explore constitutional reform, Summit participants engaged in a broader conversation about
the necessary legal framework of tribal governance. This discussion included, but is not limited to,
the need to consider reforming constitutional documents. Critical needs identified by Summit
participants included enacting codes to create a transparent, business friendly environment.
Specifically, Summit participants recommended that in order to attract business, develop business
partnerships and attract capital to the reservations, tribes needs to have secured transaction and
business codes in place that are transparent and enforceable.
6
Summit participants recommended that tribes work toward developing a model for tribal
investment and collaboration on projects to facilitate inter-tribal investments and joint projects.
Tribes also should have tribal corporation status clarified to protect investment and jurisdiction.
Specific policy solutions that were offered by Summit participants include recommendations to:
1.
Conduct a detailed conversation at the tribal, regional and national level, to consider
the range of options for tribes to reform their governing documents, including tribal
constitutions and codes (and those governance structures and institutions that are not
related to specific documents).
2.
Create best practices for legal, business and transaction codes that are transparent and able
to be customized for tribal uses.
3.
Develop commercial codes that can be adopted or customized by each tribe and share best
practices to continue development, attract growth, and protect intellectual property.
Develop a dispute resolution forum for business.
4.
Develop a business licensing program for those wishing to establish reservation or member-
based businesses.
5.
Clarify corporation law (i.e. Section 17 of the Indian Reorganization Act) for the purposes
of developing Uniform Commercial Codes.
Native American Economic Policy Report • 2007

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COMMUNITY PLANNING
Summit participants also identified the need for community planning. Participants noted that
planning is required to integrate all aspects of a sound economy and to facilitate an effective and
efficient strategy for growth. In addition, planning and community involvement are needed if the
tribe is to sustain internal political support for development projects. Participants repeatedly
affirmed that tribal planning efforts should be: 1) comprehensive in nature, 2) rooted in tradition
and culture, 3) community-driven, and 4) supported by federal policy. Specific policy solutions
that were offered by Summit participants include recommendations to:
6.
Encourage agencies to fund and support tribal efforts to engage in planning. This especially
applies to agencies that focus only on one aspect of development without understanding the
importance of how that element may or may not fit into a tribe’s overall development plan.
The availability of comprehensive planning funds should serve to make agency funds more
effectively utilized.
7.
Develop programs to train tribal citizens and tribal leaders about developing the necessary
7
elements of tribal economies and planning. Summit participants stressed that the needs of
private and tribal member-owned businesses must be considered in tribal planning efforts.
8.
Utilize the Workforce Investment Act as a tool in planning and a component in developing
tribal resources needed for sustained economic development.
TRUST REFORM
Land and natural resources are the primary economic asset in most of Indian country, but
reservation economic development struggles under an antiquated and complex federal trust
management system that moves slowly and uncertainly on land transactions and leasing. Indian
tribes are committed to retaining the federal trust responsibility, but want to reform the system
to increase tribal management authority and streamline processes that support economic
transactions. Fractionation of allotted lands dramatically decreases land productivity and has
become a heavy burden on the trust system.
9.
Increase tribal control over reservation land management and trust systems. Provide for
comprehensive land use planning and a trust asset management agreement authorizing the
tribe to lease land without the approval of the Secretary of Interior.
10. Amend the Indian Land Consolidation Act to streamline land acquisition procedures and
create incentives for voluntary sales of fractionated interests by allowing the Secretary to
offer more than fair market value.
Native American Economic Policy Report • 2007

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11.
Create a single line of authority for trust functions that are now split between the Bureau
of Indian Affairs (BIA) and the Special Trustee, and create an Under Secretary of Indian
Affairs to supervise any activities related to Indian affairs across all divisions of the
Department of Interior.
12. Increase funding for the title system and prioritize economic transactions (mortgaging and
homeownership).
13. Develop tribal laws for system of leasing or assignments to tribal members to make land
available to individual entrepreneurs and homeowners. Encourage tribes to utilize Section 17
corporations to lease tribal land based on business considerations.
FINANCIAL MANAGEMENT SKILL DEVELOPMENT
Summit participants stressed that tribal members are central and vital ‘assets’ that tribes can invest
in to transform their communities. This investment will reap dividends at all levels. School and
8
community-based strategies can prepare Native youth to effectively manage their personal finances.
These skills can be applied to successful careers as tribal leaders, entrepreneurs, non-profit
leaders, or simply as engaged members of their tribal community.
Tribal leaders at the Summit articulated a desire to develop their own financial management skills
in areas ranging from personal finances to investment and business management. Beyond financial
skills, there is a need to strengthen tribal governance through the development of future leaders
and invest in strategies to more effectively engage tribal members. Specific policy solutions that
were offered by Summit participants include recommendations to:
14. Develop, implement, and fund a comprehensive financial literacy program for Native students
K-12.
15.
Fund the implementation of more specific training focused on investment and business
management skills for tribal leaders and members.
16. Develop a loan forgiveness program for business and financial degree programs similar to the
health and legal programs that have already shown a good measure of success in steering tribal
youth toward needed tribal positions of responsibility and leadership.
17.
Gather data to understand the trends among Indian-owned businesses, tribal economic
growth, industry participation, sector participation and growth, and general economic
conditions.
Native American Economic Policy Report • 2007

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