In June the Bureau of Economic Analysis presented its estimate of the GDP for the first quarter of 2011. According to that estimate the real GDP of the U.S. increased 0.47 of 1 percent over its level in the fourth quarter of 2010. The growth rate of the economy is volatile. And, while any increases in real GDP are welcome they are not sufficient to reduce the pool of unemployed millions of Americans, especially Native Americans.

Unfortunately, most tribal economies were in poor state even before the current recession started. Unemployment is as high as 50% in majority of the American native tribes. Average median household income on most reservations is less than 50% of that national average.

       Tribal values are rooted in protecting the nature and land, yet it is perceived that their resources such as oil, gas and coals are the only path out of current poverty, tribes have tough choices to make, between their cultural and extraction. The pressure from oil and gas giants is putting unfair pressure of creating an economy that could destroys scared culture and values.

Many tribal governments lack the means to provide the basic necessities and infrastructure most US citizens outside the reservations take for granted, such as functional highways,  affordable housing, plumbing, electricity and communication services. According to one study many reservations are still unable to provide basic phone service to 72% of their citizens

On February 17, 2009, President Obama signed the American Recovery & Reinvestment Act of 2009 to encounter direct response to the economic crisis. the Recovery Act provided $288 billion in tax cuts and benefits for millions of working families and businesses. The hundreds of American tribes designated share from the recovery act constituted less than 2% or $6.1 billion of total of sanctioned amount. Through the American Recovery and Reinvestment Act of 2009, USDA Rural Development received funding to support over $20 billion in projects. This article only focuses on opportunities provided outside the USDA. (for USDA program see http://www.indiancountryworks.org/webinars.cfm).  The Tribal Government Economic Recovery Plan was targeted in improving infrastructure spending that supposed to allow tribes to effectively compete in the global economy. The budget provided an opportunity to invest building schools, building energy efficient homes, buildings , public safety facilities and repairing tribal roads and bridges, investments in clean and waste water facilities and health facilities through repairs and technology improvements.

The American Economic Recovery and Reinvestment Plan’s targeted infrastructure development offered tribal government an opportunity to improve their failing infrastructure. Funding streams were made available for tribal governments to fully participate in building and repairing needed infrastructure.

Tribal governments simply needed to be directly funded under these programs as other governments were to ensure that they were not left out. Unfortunately, only 85% funds were claimed by Indian reservations. Even the distribution of the funds was not evenly handed. For instance in Montana Ft. Peck Sioux were awarded $70,198,049 where Blackfeet were awarded only $6,891,927, less than 10% of what Sioux received. Crow agency received over $12,546,659 during same period.

The Feds has an important role to play in ensuring that all who are eligible know about and could access these grants and loans with dignity and respect.  Tribal governments are quite often an afterthought in the development of significant national policies. They are either inappropriately ‘shoe horned’ into legislation at the 11^th hour, or left out all together. As a result, Indian nations are left beyond and farther behind.

The Economic Recovery and Reinvestment Plan offered a once in a lifetime opportunity for the tribal government, to create jobs, repair old infrastructure,  and develop energy and create income. It would be a travesty for Indian nations who are persistently fraught with poverty, high unemployment, insufficient housing and infrastructure, and under-development economic to be left out of much of the potential opportunities created by the Economic Recovery Plan. Did tribes avail themselves of the opportunity? .........only history will decide.

Mat Chaudhry   Ph.D (c)

Many definitions were coined for term success among American entrepreneurs. However, American Indian entrepreneurial leaders may define success in an entirely different manner. Though Black’s 1994 article detailed economic success factors for American Indian tribes it can also be utilized to understand what is important to individual American Indian entrepreneurs. The article outlined 16 success indicators for American Indian development: (1) personal efficacy, (2) control of assets, (3) income, (4) responsibility, (5) trade and exchange, (6) productivity skills, (7) spirituality, (h) vibrant initiative, (8) social respect, (9) health and safety, (10) cultural integrity, (11) kinship, (12) vision, (13) political and civic responsibility, (14) income, and (15) environmental balance. Black’s article focused on federally recognized American Indian tribes who live on reservations (Hunt-Oxendine, 2009).

Mat Chaudhry Ph.D (c)

AISES - American Indian Science & Engineering Society

AISES, The American Indian Science & Engineering Society is a national, nonprofit organization which nurtures building of community by bridging science and technology with traditional Native values. Through its educational programs, AISES provides opportunities for American Indians and Native Alaskans to pursue studies in science, engineering, and technology arenas. The trained professionals then become technologically informed leaders within the Indian community. AISES' ultimate goal is to employs a "full circle of support" model that begins with pre-college programs, progresses into collegiate life, and then into the professional years of members into retirement.

Sponsorships

Each year, AISES’ National events attract the nation's brightest American Indian students, as well as professionals in the fields of science, engineering and technology for leadership development, career enhancement and networking opportunities.

AISES Awards

Annually, AISES recognizes individuals and groups whose successes contribute towards the organization’s mission.

You can learn more about AISES at: http://www.aises.org/

Mat Chaudhry PhD. (c)

VALUE-ADDED AGRICULTURE

Value added model Value-added products are defined by USDA as follows:

A change in the physical state or form of the product (such as milling wheat into flour or making strawberries into jam).

As a result of the change in physical state or the manner in which the agricultural commodity or product is produced and segregated, the customer base for the commodity or product is expanded and a greater portion of revenue derived from the marketing, processing or physical segregation is made available to the producer of the commodity or product (USDA).

In US farming communities are heavily influenced by cooperative farming. While the benefits of coop farming are staggering the coop farming contributes to lack of creativity, red tape and no difficult decision making process. The coop should be involved in production of a raw commodity but also takes part in processing, and distribution of the product.   Value-added processing and marketing is a comparatively new concept to many traditional coop, and required capital, teamwork, experience and integration of diverse segments of the food industry.   Doing more of the processing and marketing activities takes time skill and experience.

Sustainable Profitability Depleting grain prices, lower farm subsidies, changing consumer habits and intense competition for ag commodities have created a immediate need to explore alternative production and marketing strategies. The establishment of farmer owned, value added processing cooperatives in the Pulses industry would provide farmers with opportunities to enhance sustainable profit. Only valued-added agriculture model ensures farmers progress up the food chain. The farmers and coop no longer disconnect from the end users of their products. It is sad that middleman still harnessed more profit than the real owner of the produce. As a result the farmers receive only 2-3% return on their investment.

If the farmers can move up the food chain by getting involved  in processing  and direct marketing, rather than just selling their raw commodities to a trader or middlemen, then they would realize much  higher returns on their investment. Clearly there are higher profits to be made between the time a raw product is produced on the farm and it is converted in highly valued finished food product ready to be consumed.

Today's food consumers want taste, nutrition, freshness, variety, and convenience.  Ethnic populations are growing and niche markets are becoming available.  By engaging in value added agriculture farmers are expecting to increase their net farm profits that would otherwise go to the middlemen in the food chain.  The value added concept transforms growers from 'price takers' to 'price makers'.

Value added coop's control processing steps and achieve greater product quality control, brand loyalty and volume.  Members receive a much greater ROI for their products.  Coop’s reduce threat coupled with new enterprises, keep jobs in the rural communities, and strengthen the local economics hub.

In the absence of value-added farming the benefits never reach to local communities. Only a group of famers modestly benefit from the sale of raw products. When you add value-added formula to the agriculture it creates ripple effect on the entire community. Farmers, truck drivers, motels, restaurant, markets and end users all benefits from it. In the Pulses industry there are over 350 value-added products are available mostly in pulses consuming countries. In United States the pulses industry is processing less than 3 of those bi-products. The farmers are giving away their raw gold to Canada and India, where the US pulses get processed and value-added and then re-export to many parts of the world including United States. Not only the process increases the carbon footprint but also the consumer ended up paying a much higher price.

Challenges

The value-added farming is not as easy as it sounds. There few challenges that coop must overcome in order to produce value added agriculture?  Value-added processing requires sound marketing savvy team.   Getting a new product into the highly competitive retail market is not an easy task. The research shows that two third of new products fails after their introduction mainly due to consumer appeal.  Failure to do market research and the lack of a sound business plan are leading reasons for failure. There are many factors that should be considered when planning value-added processing. For instance, business plan, technology, food safety, packaging material, branding, trade names, copyrights, regulations, market research and liability are just few.

The research shows that almost all value added ventures have a project champion who is a leader and a visionary, and who is able to bring together agreement and teamwork.   He should be able to influence others to join and take reasonable risks.

The farmers can no longer ignore the ground realities of global changes. The world has shrunk, increasingly peoples and nations have grown dependent on one another. No one can any longer act entirely in his own interest.  Producers will need to look at creating value-chains from the field to the plate if they are going to have sustainable profitability. Farmers, coop and producers across the North America are putting together strategic alliances with existing agribusiness companies, forming marketing cooperatives or developing new ventures to meet the needs of the changing ag industry.

It is clear that coop farming needs value-added business ideas that will help farmers raise profits by diversifying their incomes

Mat Chaudhry PhD (c)

While freedom and economic growth are highly valued in tribal society, neither is possible without embracing economics diversity.

Over the past decade, the tribes have become major players in the US economy. The tribes are aggressively creating and operating business such as gaming, telecom, IT, finance and tourism. An outcome to the dramatic increase in tribal economic development is the increased interaction of tribes and non-native citizens who seek business, jobs, or fun on tribal reservations.

Recently, I had an opportunity to attend the Reservation Economics Summit and Trade fair. It was a fantastic opportunity to witness, meet and network with various tribal businesses, companies and governmental agencies involved with Indian tribes.  I strongly believe that tribal nations are in an incredible position to support the growth for citizens in a position to seek sustainability through entrepreneurship and small businesses. With incredible resources available from the Federal govt and state government, comparative tax advantage through sovereignty and possible economics development through economics growth, now is the time to evaluate low-risk, value-added agriculture sector for commercial growth. Unfortunately, a good number of these resources will not be utilized.

       In order to create and sustain a higher quality of life, the Blackfeet leadership must provide academic and practical insight on to accessing Blackfeet potential by seeking initiatives that promote long term economics diversity. It is imperative to have tribal owned businesses on tribal land but using entrepreneurial diversity as a competitive advantage is vital for long term economics growth and sustainability. Establishing industrial parks that seek out and welcome relationship from different communities’ even global investors is a life line of future economics development. Establishing and developing the next generation of business leaders is one of the most significant investments the tribal leadership can make. It means the tribe must look for diverse businesses willing to invest in tribal economy. Those who want to invest in tribal economy should be given strong support and infrastructure resources needed to launch businesses. Blackfeet need to attract businesses to help deliver distinctive, innovative solution in education, health care, food, agriculture and risk management. At Blackfeet one must recognizes that they are a stronger community when they tap the power of diversity, which include developing businesses that reflect the communities they do business with.