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February 8 ,1983
Policy continued—
Development of
Reservation Economics
The economies of American
I n d ia n r e s e rv a tio n s a re
extrem ely depressed with
unemployment rates among
the highest in the country.
Indian leaders have told the
A d m in istra tio n th a t the
development of reservation
economies is their number one
priority. Growing economies
provide jobs, promote self-
sufficiency, and pro v id e
revenue for essential services.
Past attempts to stimulate
growth have been fragmented
and largely ineffective. As a
result, involvement of private
industry has been limited, with
only in fre q u en t success.
D e v e lo p in g r e s e r v a tio n
economies offers a special
challenge: devising investment
procedures consistent with the
trust status; removing legal
barriers which restrict the type
of contracts tribes can enter
in to an d re d u c in g th e
n u m e ro u s an d c o m p le x
regulations which hinder
economic growth.
Tribes have had limited
opportunities to invest in their
own economies because often
there has been no established
resource base for community
investment and development.
Many reservations lack a
developed physical infrastruc
tu re in c lu d in g u tilitie s ,
tran sp o rta tio n and other
public services. They also often
lack the regulatory, adjudica
to ry an d e n fo rc e m e n t
m echanisms necessary to
interact with the private sector
fo r reservation econom ic
development. Development on
the reservation offers potential
for tribes and individual
entrepreneurs in manufactur
ing, agribusiness and modern
technology, as well as fishing,
livestock, arts and crafts and
other traditional livelihoods.
Natural resources such as
timber, fishing and energy
p r o v id e a n a v e n u e o f
development for many tribes.
Tribal governments have the
responsibility to determine the
extent and the methods of
developing the tribe’s natural
re so u rc e s. T he fe d e ra l
governm ent’s responsibility
should not be used to hinder
tribes from taking advantage of
e c o n o m ic d e v e lo p m e n t
opportunities.
W ith regard to energy
resources, both the Indian
tribes and the nation stand to
g a in fro m th e p ru d e n t
development and management
of the vast coal, oil, gas,
uranium and other resources
found on Indian lands. As
already demonstrated by a
n u m b er of trib e s, these
resources can become the
fo u n d ation for econom ic
d e v e lo p m e n t o n m a n y
reservations while lessening
our nation’s dependence on
imported oil. The federal role is
to encourage the production of
energy resources in ways
consistent with Indian values
and priorities. To that end, we
have strongly supported the use
of creative agreements such as
joint ventures and other non
lease agreem ents for the
development of Indian mineral
resources.
It is the free market which
will supply the bulk of the
capital investments required to
develop tribal energy and other
resources. A fundam ental
p re re q u isite to econom ic
d e v e lo p m e n t is c a p ita l
formation. The establishment
of a financial structure that is a
part of the Indian reservation
community is essential to the
development of Indian capital
formation.
Federal support will be made
b ailable to tribes to assist
them in develo p in g the
n e c e ssa ry m a n ag e m en t
capability and in attracting
private capital. As a first step in
that direction, we provided
funds in the FYI983 budget to
provide seed money to tribes to
attract private funding for
e c o n o m ic d e v e lo p m e n t
ventures on reservations. As
more tribes develop their
capital resource base and
increase their m anagerial
expertise, they will have an
opportunity to realize the
maximum return on their
investments and will be able to
share an increasing portion of
the business risk.
It is the policy of this
Administration to encourage
private involvem ent, both
Indian and non-Jndian, in
tribal economic development.
In some cases, tribes and the
private sector have already
taken innovative approaches
which have overcome the
legislative and regulatory
im pedim ents to econom ic
progress.
Since tribal governments
have the primary responsibility
for meeting the basic needs of
Indian communities, they must
be allowed the chance to
succeed. This Administration,
therefore, is establishing a
P r e s i d e n t i a l A d v is o ry
C o m m is s io n on I n d ia n
Reservation Economics. The
Commission, composed of
trib a l and private sector
leaders, is to identify obstacles
to economic growth in the
public and private sector at all
levels; examine and recom
mend ways for the private
sector, both Indian and non-
Indian, to participate in the
development and growth of
reservation economies. It is alo
to be charged w ith the
responsibility for advising the
private sector, both Indian and
non-Indian, to participate in
the develoment and growth of
reservation economies. It is
also to be charged with the
responsibility for advising the
President on recommended
actions required to create a
positive environment for the
development and growth of
reservation economies.
Numerous federal agencies
can offer specialized assistance
and expertise to the tribes not
only in economic development,
but also in housing, health,
education, job training, and
other areas which are an
integral part of reservation
econom ies. It is to the
advantage of the tribes, and in
the interest of the taxpayers,
that the federal role be fully
reviewed and coordinated.
Therefore, this Administraton
directs the Cabinet Council on
Human Resources to act as a
mechanism to ensure that
federal activities are non-
duplicative, cost effective, and
consistent with the goal of
encouraging self-government
with a minimum of federal
interference.
ï
During a breakfast meeting, the Tribal Council m em bers discussed various program s that needed
attention during the week long meeting in Washington, D .C . on January 25-28,1983.
Indian
Policy Summary
This Administration intends intend to continue this dialogue
to restore tribal governments to with the tribes as these policies
their rightful place among the are implemented.
governments of this nation and
The g o v ern m e n tal and
to enable tribal governments, economic reforms proposed for
along with state and local the benefit of Indian tribes and
g o v ern m e n ts, to resum e their members cannot be
control over their own affairs. achieved in a vacuum.
Fhi£ Adm inistration has
This n a tio n ’s econom ic
sought suggestions from Indian h e a lth — and th a t o f th e
leaders in forming the policies tribes—depends on adopting
which we have announced. We th is A d m in is tra to n ’s full
Economic Recovery Program.
T h is p ro g ra m calls fo r
eliminating excessive federal
spending and taxes, removing
burdensome regulations, and
establishing a sound monetary
policy. A full econom ic
recovery will unleash the
potential strength of the private
sector and ensure a vigorous
e c o n o m ic c l i m a t e f o r
development which will benefit
not only Indian people, but all
other Americans as well.
Policy Initiatives
* Request that Congress repudiate
House Concurrent Resolution 108 of
the 83rd Congress which called for
term ination of the federal-tribal
relatio n sh ip . The A d m in istratio n
w ants this lingering th re a t of
termination replaced by a resolution
expressing its support of a government-
to-government relationship.
* Ask Congress to expand the
a u th o riz e d m em b e rsh ip of the
Advisory Commission on Intergovern
m ental R elatio n s to include a
re p re s e n ta tv e o f In d ia n trib a l
governments. In the interim, request
that the Assistant Secretary of the
Interior for Indian Affairs join the
ACIR as an observer.
* Move the White House liaison for
federally-recognized tribes from the
Office of Public Liaison to the Office of
Intergovernmental Affairs.
* Establish a Presidential Advisory
Commission on Indian Reservation
Economies to identify obstacles to
economic growth and recommend
changes at all levels; recommend ways
to e n c o u r a g e p r i v a t e s e c t o r
involvement, and advise the President
what actions are needed to create a
p o s itiv e e n v ir o n m e n t f o r th e
development and growth of reservation
economies.
* Support direct funding to Indian
tribes under the Title XX social services
block grant to states.
* Sought and obtained funds for FY
1983 to implement the Small Tribes
Initiative to provide financial support
needed to allow small tribes to develop
basic trib a l ad m in istrativ e and
management capabilities.
♦ Sought and obtained funds for FY
1983 to provide seed money for tribes
for economic development ventures on
reservations.
♦ Supported and signed info law the
Tribal Governmental Tax Status Act
which will provide tribal governments
with the same revenue sharing and
saving mechanisms available to other
governments.
♦ S upport the use of creative
agreements such as joint ventures and
other non-lease agreements for the
developm ent of In d ia n m ineral
resources.
* Direct the Cabinet Council on
Human Resources to act as a review
and coordination mechanism to ensure,
th a t federal activities are non-
d u p lic a tiv e , c o st e ffectiv e an d
consistent with the goal of encouraging
tribal self-government with a minimum
of federal enterference.