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National Strategy for Economic Independence

This strategy aims to create a society where Aboriginal and Torres Strait Islander individuals and communities can choose to share in comparable levels of economic independence as the wider community. However, it recognises Australia as a diverse society where individuals enjoy different lifestyles.

This is an incomplete draft of what the final national strategy might look like. The Council for Aboriginal Reconciliation welcomes your views and comments on this draft. In particular, we want to hear your views on the proposed content (including the suggested time-lines and implementing agencies) and we would like to know if you think there are any gaps.

Your comments would be welcome before

Tuesday 4 April 2000

to ensure they can be taken into account.

Please send your comments to:

Council for Aboriginal Reconciliation
Locked Bag 14
Kingston ACT 2604
(fax: 02-6271-5168)

Or by e-mail to:
bryan.palmer@pmc.gov.au

For more information please telephone:
 Stacey Rippon on 02-6271-5599
Bryan Palmer on 02-6271-5449

Or visit our web site:
 http://www.austlii.edu.au/car/

Prepared by the Partnerships in
Reconciliation Committee of the
Council for Aboriginal Reconciliation

16 February 2000

National Strategy for Economic Independence

Setting the Scene

More Aboriginal and Torres Strait Islander people experience substantial economic disadvantage in the areas of wealth, employment and income compared with the wider community. This is a major obstacle to greater self-determination. With economic independence, individuals and communities will have increased opportunities and a broader range of life choices.

Welfare programs and services are necessary in a civil society. However, they are neither the best nor the only solution for addressing disadvantage in health, housing, employment, education, law and justice. For many people, welfare programs have not resulted in independence from governments or self-reliance. No Australian should expect to be on a Work for the Dole program for 10 years without getting a ‘real’ job, yet such hidden unemployment is the experience of some Community Development Employment Program (CDEP) participants.

Ultimately, strategies that successfully improve the economic independence of Aboriginal and Torres Strait Islander peoples would also:

  • stimulate regional and rural economies;
  • empower Indigenous Australians to participate in and control their own economic development; and
  • add to the national economy and enhance Australia’s international status.

Barriers

One of the themes underlying all of the actions in this national strategy is overcoming the barriers of Aboriginal people and Torres Strait Islanders and communities achieving economic independence.

Education

In the area of education, the barriers include: culturally insensitive curriculum, developing English language skills, differing community approaches to schooling requirements, access to educational institutions, and poorer health. Low education contributes to, and has an impact on, low economic status.

Employment

In the area of employment, the barriers to work include: poor education, the lack of appropriate knowledge, skills and experience, developing English language skills, poorer health, culturally insensitive workplaces and regional and remote localities. Not only are these barriers to entering the labour market, they are also barriers to career progression within the labour market.

Business and capital management

In the area of business and capital management, barriers include: lack of personal financial management skills, lack of confidence to enter small business, developing the necessary skills to run a business, finding business partners, establishing networks with the business sector, access to good advice, identifying opportunities, remoteness from markets, a lack of capital and negative perceptions about creditworthiness, and restrictions upon the transfer of native title land and statutory land grants.

Cultural intolerance

The existence of anti-discrimination laws has not resulted in equal treatment and many of the struggles Indigenous people face in trying to obtain economic independence are a result of racism. Indigenous people still regularly encounter discrimination, for example, when applying for jobs or loans, or even when renting properties.

The responsibility to address these barriers does not lie solely on the wider Australian community. Aboriginal and Torres Strait Islander peoples and community leaders must also take initiatives to ensure that changes are achieved. There cannot be complete reliance on others or on government policies and programs, even though support, commitment and assistance from all governments, the private sector and the wider community is essential. Change will only occur through the Australian community recognising their individual responsibilities in the first instance, but also working together.

Pathways

This strategy primarily targets private sector companies and their peak organisations, but nevertheless relies on the assistance of every person, both as an individual and in their respective social and community environments, as well as all levels of government. The strategy focuses on two pathways to improve Indigenous economic independence, they are:

  • employment; and
  • managing a business and capital assets (such as cash, land, shares or other assets).

In both cases, education is a fundamental foundation for success. It is a necessary precursor to getting a job, for owning and running a successful business, and managing capital assets, including land.

The majority of people in the wider Australian community attain their economic independence primarily through employment. However, the scarcity of jobs and the relatively large number of Indigenous people living in regional and remote Australia means that actions to assist people to get and retain paid employment, as well as actions to establish businesses and employment opportunities, are necessary.

Future employment requirements

The Australian Bureau of Statistics (ABS) projections based on the 1996 Census suggest that, at the very least, the Indigenous population is likely to increase from an estimated 386,000 in 1996 to 469,100 by 2006. This is twice the rate of growth projected for the rest of the population. Of significance is the much younger age profile of the Indigenous population, which will have an impact on working age population in future years. In 1996, the proportion of the Indigenous population under the age of 15 years was 40 per cent compared to 21 per cent of the total population. This implies a need for social policy focus to remain on issues such as school to work transition and employment.

The efforts necessary simply to maintain social and economic conditions at their present low levels, to say nothing of actually achieving improvements, pose a serious challenge for the nation. The way forward will only occur with a fundamental change of attitude and with the worth and skills of Indigenous people being valued and utilised.

The Council urges individuals and organisations across the nation to make a sincere commitment to implement this national strategy.

What can we achieve

This strategy aims to create a society where Aboriginal and Torres Strait Islander individuals and communities can choose to share in comparable levels of economic independence as the wider community. It is not intended to be prescriptive, but recognises Australia as a diverse society where individuals and communities enjoy different lifestyles.

The following objectives build on this aim. They provide a guide for people and organisations as they put this strategy into practice. They also serve as national performance indicators. Ultimately, the effectiveness of this strategy should be evaluated against the scale of improvements and reductions achieved.

Education and training

In addition to the education and training objectives identified in the National Strategy to Address Aboriginal and Torres Strait Islander Disadvantage:

  1. An increase in flexible methods for the delivery of vocational training modules to Aboriginal and Torres Strait Islander peoples, especially in regional and remote communities.
  2. An increased understanding of Indigenous cultural obligations by employers, professional bodies and employee bodies.
  3. An increased recognition, understanding and acceptance of Aboriginal and Torres Strait Islander cultures.

    4. Employment

    In addition to the employment objectives identified in the National Strategy to Address Aboriginal and Torres Strait Islander Disadvantage:

  4. An increase in job durability for Aboriginal and Torres Strait Islander peoples.
  5. An increase in the proportion of Aboriginal and Torres Strait Islander school-leavers who make a successful transition from school to employment.
  6. An increase in the number of national parks under joint management with traditional owners.

    7. Indigenous commercial activity

  7. An increase in the proportion of Aboriginal and Torres Strait Islanders who are self-employed, especially youth and people in regional and remote Australia.
  8. An increase in the number of viable small businesses seeded by CDEPs.
  9. An increase in the proportion of Aboriginal and Torres Strait Islander people who are successful in obtaining business loans from financial institutions.
  10. An increase in the number of Aboriginal and Torres Strait Islander people who have access to business advice and development programs, and trade and market assistance programs.

The actions we can take

The Council for Aboriginal Reconciliation has identified key result areas where action is needed to improve the economic independence of Aboriginal and Torres Strait Islander peoples, they are:

  1. education and training;
  2. employment;
  3. capital;
  4. markets and trade;
  5. regional and remote Australia; and
  6. partnerships and joint ventures.

1. Education and training

<Some lead in words - talk about building skills, knowledge and experience>.

Actions – what needs to be done and who will do it

A.

From 2001, schools, vocational education providers, universities and education departments develop and implement programs to improve attendance, retention rates and academic results of Aboriginal and Torres Strait Islander students, for example by:

  • auditing current performance and identifying the factors that lead to successful educational outcomes and replicating these where appropriate;
  • identifying underperforming Indigenous students and intervening in the early stages of their education;
  • establishing mentoring programs for Aboriginal and Torres Strait Islander students;
  • rewarding Aboriginal and Torres Strait Islander students with consistently good attendance and/or grades; and
  • implementing mandatory cultural awareness elements in all pre-vocational teacher training courses.
B. Governments, businesses and training institutions provide cultural awareness training to their constituents in order to advance reconciliation and contribute to a national ethos that is free of racism and prejudice and celebrates diversity of cultures.
C. From 2001, education and training providers enter into partnerships with Aboriginal and Torres Strait Islander parents and communities to promote excellence and innovation in schooling.
D. From 2001, education providers ensure that their programs are promoted to, and are open to access by, those people for whom the education system has failed the first time around.
E. From 2001, vocational training providers (including Community Development Employment Projects) ensure that their programs are responsive to the employment needs of the local labour market. Providers begin with an audit of their existing training programs to identify the level of local employer demand for program graduates.
F.

From 2001, governments and peak organisations in the private sector develop and promote local business and entrepreneurial programs that:

  • assist Indigenous people, particularly young people, to learn what is involved in starting and operating a business;
  • provide strategic direction for Indigenous businesses;
  • develop successful Aboriginal and Torres Strait Islander entrepreneurs who can serve as role models to encourage and inspire future generations; and
  • encourage innovative business practices.
G. From 2001, peak organisations in the private sector work with local chambers of commerce to develop public awareness programs (for employers and co-workers) that address myths and stereotypes and recognise the importance of ceremonial occasions, funerals and traditional obligations.
H. From 2001, education providers and financial institutions develop, deliver and promote programs that increase the capacity of people to work wisely with money and accumulate wealth - to plan, to budget, to save, to invest, and so on.
I.

Aboriginal and Torres Strait Islander leaders actively encourage their people to equip themselves with the skills, knowledge and experience that are valued in the employment market where they want to work.

2. Employment

<some lead in words – include a focus on private sector employment. also recognition of the opportunity for the employment of Aboriginal and Torres Strait Islanders in policy development and management of National and State parks>

Action – what needs to be done and who will do it

A. Peak organisations in the private sector and individual employers establish targets and/or strategies for employing more Aboriginal and Torres Strait Islander people.
B. Employers ensure that real jobs are available at the conclusion of subsidised training/employment placements in the public and private sectors.
C.

Public and private employers adopt practices which are supportive of affirmative action approaches and Aboriginal and Torres Strait Islander peoples, such as:

  • culturally appropriate recruitment and induction strategies (for example, using word-of-mouth contacts and advertising in the Indigenous media) rather than relying on job advertisements in the mainstream media;
  • having Indigenous people on job selection panels;
  • helping applicants, where appropriate, to prepare resumés, giving people trial runs at entry examinations, or providing pre-employment training opportunities within the local community;
  • mentoring and "buddy" schemes; and
  • apprenticeships, cadetships, scholarships.
D. The Commonwealth Government continues and expands its Indigenous Employment Program.
E. State and national parks review their management and employment practices to ensure there is genuine opportunity for Indigenous participation in planning and employment, which acknowledges Indigenous community obligations and uses traditional knowledge and skills.

3. Capital

<some lead in words. note that ‘land’ is a key source of capital>

Actions – what needs to be done and who will do it

A. Banks and other financial institutions adopt culturally responsive banking and financing regimes, including the establishment of Indigenous-specific financial institutions, such as the First Nations Credit Union and the Traditional Credit Union.
B. Governments and financial institutions, including ATSIC, the Commercial Development Corporation and the Indigenous Land Corporation, collaborate to enhance the availability of equity, working and venture capital for Indigenous businesses.
C.

Governments protect and increase the value of Indigenous assets by:

  • reforming intellectual property laws so that Indigenous people can profit from their cultural and traditional knowledge;
  • establishing joint management arrangements for existing national parks and conservation areas with high Indigenous cultural values, or vesting ownership to Indigenous people;
  • governments and Indigenous land managers develop strategies to restore the natural environment for Indigenous lands;
  • vesting public housing assets for Indigenous people in appropriate legal entities, which are owned and controlled by Indigenous people; and
  • promoting the voluntary declaration of Indigenous Protected Areas on Aboriginal and Torres Straits Islander Lands to encourage Indigenous communities to sustain the environment and help build economic independence.
D. Indigenous people and communities recognise and develop their existing competitive advantages in respect of their special knowledge of the land and the environment as a basis for economic independence.

4. Markets and trade

<some lead in words>.

Actions – what needs to be done and who will do it

A.

Governments and private sector promote trade opportunities and programs for Indigenous businesses by:

  • incorporating Indigenous products in Australia’s formal strategies for overseas trade promotion and export development;
  • publishing an Aboriginal and Torres Strait Islander business directory in print and electronic format;
  • marketing Indigenous businesses locally, nationally and internationally;
  • assisting Aboriginal businesses to market their products and services on the Internet; and
  • encouraging mainstream Australian business to see the opportunities in the Indigenous economy.
B. Aboriginal and Torres Strait Islander entrepreneurs and businesses develop export opportunities, explore new markets, enhance their skills and consider expanding their operations through partnership and joint venture arrangements.
C. Governments enhance access to electronic and communication technologies that would enable Indigenous businesses in remote locations to access the virtual marketplace.
D. Governments facilitate and promote tendering by Indigenous businesses for government goods and services.

5. Regional and remote Australia

<some lead in words>.

Actions – what needs to be done and who will do it

  1. Governments, ATSIC and rural interest groups develop programs to assist regional and remote businesses to address the market and structural barriers experienced in non-urban Australia.
  2. Government, ATSIC, peak private sector organisations, and rural interest groups undertake regional profiling and model-building research to identify and make the most of competitive advantages in regional and remote communities. Where possible the application of successful developments to other communities should be examined. A particular focus should be given to identifying viable commercial activities on Indigenous land.
  3. The Department of Employment, Workplace Relations and Small Business (DEWRSB), ATSIC, native title representative bodies develop innovative regional development models levering from native title land to maximise employment, training and business opportunities.
  4. Governments and industry give priority to filling positions in remote areas with local residents.
  5. ATSIC reassesses its expectations to collect "profits" from successful CDEP endeavours.
  6. Governments provide tax incentives to businesses operated on Indigenous-owned land.

6. Partnerships and Joint Ventures

<some lead in words >.

Actions – what needs to be done and who will do it

A. Indigenous communities, families and individuals take greater responsibility for addressing the causes and consequences of economic disadvantage within their control.
B. National and regional peak private sector organisations, local chambers of commerce and local and Indigenous employers build business contacts and networks with Indigenous businesses.
C. ATSIC and other Indigenous representative bodies encourage the development of cooperative business arrangements between Indigenous people and communities.
D. Peak organisations in the private sector encourage business to see opportunities in the Aboriginal and Torres Strait Islander economy, including joint ventures. ATSIC continues to encourage and promote joint venture business opportunities between CDEPs and the private sector.
E. Governments work with Indigenous businesses to improve their competitiveness through the adoption of emerging technologies and to increase the number of Aboriginal businesses involved in knowledge-and technology-based industries.
F.

Governments and peak business sector organisations have schemes that recognise and reward the following good corporate behaviours:

  • employing Indigenous people;
  • recognising Indigenous cultural needs;
  • subcontracting to Indigenous businesses; and
  • providing leadership, training and networking opportunities to Indigenous businesses.
G.
  1. ATSIC explores options which would simplify the process of supporting and funding new Indigenous business.

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