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LINKING INDIGENOUS
COMMUNITIES WITH REGIONAL
DEVELOPMENT IN AUSTRALIA
15 March 2021
#OECDIndigenous
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Outline
2
#OECDIndigenous
1. Framework
2. Trends and analysis
3. Statistics and data governance
4. Entrepreneurship
5. Place-based approach
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Framework
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
OECD Linking Indigenous people with Regional
Development
4
#OECDIndigenous
1. Statistics and data governance – consistent identification, disaggregation of data,
specific population surveys, and data inclusion and ownership
2. Entrepreneurship – place-based approach, access to finance, entrepreneurial
skills, and preferential procurement
3. Activate and support land development – local planning authority, data,
coordination with other land regulators, acquisition and leasing, and support for
agreement-making
4. Local institutions – policy coherence, intergovernmental coordination,
meaningful participation, and local capability
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Trends and analysis
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Younger population that is growing faster
6
#OECDIndigenous
15% 10% 5% 0% 5% 10%
0-4
5-9
14-10
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85years and more
Indigenous non-Indigenous
15% 10% 5% 0% 5% 10%
0-4
5-9
14-10
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85years and more
Rural Indigenous Rural non-Indigenous
Age pyramid of Indigenous and non-Indigenous peoples, 2016
Note: Based on the OECD Territorial Classification.
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016 , TableBuilder.
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Significant land, water, sea and cultural assets
7
#OECDIndigenous
Indigenous land tenure, Australia (2020)
Source: National Native Title Tribunal
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Potential to drive regional development
8
#OECDIndigenous
Population distribution by type of region, 2016
Note: Based on the OECD Territorial Classification.
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016 , TableBuilder.
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Unrealised potential and opportunity to learn from
other jurisdictions
9
Note: percentage point difference between Indigenous and non-Indigenous outcomes
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia.
Employment
rate
Educational
attainment
Life expectancy
Australia -28 -39 -10
Canada -8 -16 -5
New Zealand -14 -9 -7
United States -13 -9 -4
#OECDIndigenous
Differences in socio-economic outcomes between Indigenous and non-Indigenous people
at the national level (Australia, Canada, New Zealand and the United States)
Source: National statistical sources (New Zealand, 2013), Australia, Canada and the United States
(2016)
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Gaps are larger in rural areas
10
Note: percentage point difference between Indigenous and non-Indigenous outcomes
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia.
Predominantly urban Predominantly rural
Indigenous
%
Non-
Indigenous
%
Gap (PP) Indigenous
%
Non-
Indigenous
%
Gap (PP)
Australia 54 74 -20 40 75 -35
Canada 58 62 -4 45 60 -15
New
Zealand
60 71 -11 52 72 -20
United
States
59 68 -9 53 70 -17
#OECDIndigenous
Differences in the employment rate between Indigenous and non-Indigenous people by
type of region (Australia, Canada, New Zealand and the United States)
Note: Based on the OECD Territorial Classification.
Source: Calculations based on national statistical sources.
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Significant variation at a local level
11
Predominantly urban Predominantly rural
Employment
rate (%)
Standard
deviation
Employment
rate (%)
Standard
deviation
Indigenous 55 0.07 44 0.08
Non-
Indigenous
75 0.02 76 0.05
Gap (PP) -20 +0.05 -32 +0.03
#OECDIndigenous
Employment rate between Indigenous and non-Indigenous people by type of region
(Australia), 2016
Note: Based on the OECD Territorial Classification.
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016 , TableBuilder.
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Statistics and data
governance
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Indigenous statistics and data governance – state of
play
13
What’s working well Areas for improvement
• Application of a standard identification
method in the statistical system
• ABS Indigenous engagement and
collection methods, and the National
Aboriginal and Torres Strait Islander
Social Survey (NATSISS)
• Work of Geosciences Australia and
CSIRO with traditional owners
• Local community-led innovations (e.g.
Yawuru and Yorta Yorta)
• Business data
• Indigenous business and economic
development knowledge-base
• Indigenous geographies
• More regular/granular data about
issues that matter to Indigenous
people
• Local and regional (Indigenous-led)
data initiatives
#OECDIndigenous
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Indigenous statistics and data governance -
recommendations (select)
14
Improve
national
Indigenous
statistics and
tools
• Introducing a consistent Indigenous business identifier into the Australian business registry system, the tax
office, and business surveys undertaken by the ABS.
• Increasing the frequency of the NATSISS from six to every four years; or consider re-aligning the ABS survey
model to streamline NATSISS and the 6 yearly NATSIHS (National Aboriginal and Torres Strait Islander Health
Survey) sample and questionnaire content into a single survey enumerated on a more regular basis.
Increase
access to local
data
• Developing an online platform for local Indigenous communities to disseminate data tools, build capacity, and
share lessons and good practices.
• Providing seed funding for Indigenous-led data projects and development of local indicators, data analytics
and GIS capabilities (including promoting philanthropic and private sector co-investment in these efforts).
Strengthen
Indigenous
data
governance
• Removing administrative barriers (through changing procurement rules, service agreements, data sharing
protocols) to enable the sharing of data between service providers and Aboriginal organisations.
• Ensuring the monitoring reports on the Partnership Agreement on Closing the Gap includes a component on
progress in improving Indigenous statistical frameworks, addressing data linkage issues, and supporting
Indigenous data sovereignty.
#OECDIndigenous
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Entrepreneurship
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Entrepreneurship – state of play
16
Note: percentage point difference between Indigenous and non-Indigenous outcomes
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia.
What’s going well Areas for improvement
• Local Indigenous-led efforts that
combine business and community
development (e.g. Rangers groups)
• Emerging policy focus on Indigenous
economic development at a national
and sub-national level
• Establishment of the Commonwealth
Indigenous Procurement Policy, and
similar frameworks at a sub-national
level
• Addressing barriers to activating land,
water, sea and cultural resource rights
• Commercial acumen of local
Indigenous institutions
• Economic policy coherence (land,
labour, entrepreneurship), including in
remote areas
• Access to business development and
financial intermediation
• Collaboration with local governments
and regional development bodies
#OECDIndigenous
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Entrepreneurship – recommendations (select)
17
Develop a national
Indigenous economic
policy
• Inclusion of Indigenous values and perspectives about development that addresses needs of Indigenous businesses
(individual entrepreneurs, community based enterprises, and social enterprises) in different locations.
• Integration of the broad range of policy settings that support Indigenous business and economic development
(business support, land use regulation and administration, infrastructure, employment and skills, and local institutions).
Increase
procurement
opportunities
• Harmonising Indigenous procurement rules across jurisdictions (e.g. setting a common target and timeframe,
thresholds for direct negotiation/ set asides, and requirements for suppliers related to sub-contracting).
• Providing more effective capacity building support for entrepreneurs and small businesses to participate in public
procurement markets (e.g. pre-establishment and establishment phases)
Support remote
economic
development
• Increase strategic planning, capacity building and economic development support for local Indigenous institutions
(Prescribed Body Corporates, local Indigenous corporations and other such entities).
• Consider establishing a loan instrument that would enable equity participation by Indigenous groups in mining and
resource projects.
Support the
establishment of
local Indigenous
financial institutions
• With an initial capital injection from government, and ongoing funding to cover a proportion of operational costs, and
developing partnerships with mainstream financial institution and philanthropic foundations to increase the
potential pool of capital available to Indigenous financial institutions.
• Re-orientating some of the loan and grant functions of Indigenous Business Australia (IBA) to these local institutions,
and focusing IBA on capacity building, networking, and technical support.
#OECDIndigenous
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Place-based approach
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Place-based approach – state of play
19
Note: percentage point difference between Indigenous and non-Indigenous outcomes
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia.
What’s going well Areas for improvement
• Establishment of local corporations
(Registered Native Title Bodies
Corporate) through the Native Title Act
• Commitment to Indigenous outcomes
through the Council of Australian
Governments, and the Joint Council on
Closing the Gap
• Local Decision Making and devolution
initiatives (e.g. Northern Territory and
New South Wales)
• Shifting from grants to own-source
revenues
• Addressing capability gaps at key
transition points
• Investing in intermediaries and co-
development institutions to build scale
and access expertise
• Linking with local governments and
Regional Development bodies
• Implementation of a place-based
approach (brokers, planning, budget
flexibility)
#OECDIndigenous
© OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Place-based approach - recommendations (select)
20
Strengthen the
capacities of local
Indigenous
corporations
• Consolidating existing funding support for institutional capacity building into a single program (alongside the other 5
themes of the Indigenous Advancement Strategy), and expand the range of activities that can be supported to
encompass support for community planning, business case development, and local area data.
Build scale in
Indigenous business
and economic
development
• Working with industry and Indigenous groups to develop good practice guidance, tools, and leading practices on how
to leverage Indigenous Land Use Agreements (ILUAs) to deliver sustainable community and economic development
outcomes.
• Consider including a specific reference to Indigenous economic and community development in the Regional
Development Australia (RDA) Charter.
Embed a place-based
approach in the NIAA
regional presence
• Re-scoping roles, training and mentoring to develop more entrepreneurial skills and capabilities in data analytics,
networking, negotiation, and business support.
• Having an agreed joint budget mechanism at the local level linked to a set of locally agreed outcomes, and delegating
funding authority to regional managers and empowering them to deliver on local area outcomes.
Improve the inclusion
of Indigenous
Australians in
decision-making
• Developing a common framework and good practices for engagement across Australian Government departments
and agencies, and task the NIAA with a whole of government leadership role in monitoring consultation, promoting
best practices, and delivering training and guidance on consultation.
#OECDIndigenous

Twitter: @OECD_local
LinkedIn: www.linkedin.com/company/oecd-local
Website: www.oecd.org/cfe
Thank-you!
Lisanne.RADERSCHALL@oecd.org

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Presentation of Report Highlights

  • 1. @OECD_local www.linkedin.com/company/oecd-local www.oecd.org/cfe LINKING INDIGENOUS COMMUNITIES WITH REGIONAL DEVELOPMENT IN AUSTRALIA 15 March 2021 #OECDIndigenous
  • 2. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Outline 2 #OECDIndigenous 1. Framework 2. Trends and analysis 3. Statistics and data governance 4. Entrepreneurship 5. Place-based approach
  • 3. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Framework
  • 4. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | OECD Linking Indigenous people with Regional Development 4 #OECDIndigenous 1. Statistics and data governance – consistent identification, disaggregation of data, specific population surveys, and data inclusion and ownership 2. Entrepreneurship – place-based approach, access to finance, entrepreneurial skills, and preferential procurement 3. Activate and support land development – local planning authority, data, coordination with other land regulators, acquisition and leasing, and support for agreement-making 4. Local institutions – policy coherence, intergovernmental coordination, meaningful participation, and local capability
  • 5. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Trends and analysis
  • 6. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Younger population that is growing faster 6 #OECDIndigenous 15% 10% 5% 0% 5% 10% 0-4 5-9 14-10 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85years and more Indigenous non-Indigenous 15% 10% 5% 0% 5% 10% 0-4 5-9 14-10 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85years and more Rural Indigenous Rural non-Indigenous Age pyramid of Indigenous and non-Indigenous peoples, 2016 Note: Based on the OECD Territorial Classification. Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016 , TableBuilder.
  • 7. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Significant land, water, sea and cultural assets 7 #OECDIndigenous Indigenous land tenure, Australia (2020) Source: National Native Title Tribunal
  • 8. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Potential to drive regional development 8 #OECDIndigenous Population distribution by type of region, 2016 Note: Based on the OECD Territorial Classification. Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016 , TableBuilder.
  • 9. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Unrealised potential and opportunity to learn from other jurisdictions 9 Note: percentage point difference between Indigenous and non-Indigenous outcomes Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia. Employment rate Educational attainment Life expectancy Australia -28 -39 -10 Canada -8 -16 -5 New Zealand -14 -9 -7 United States -13 -9 -4 #OECDIndigenous Differences in socio-economic outcomes between Indigenous and non-Indigenous people at the national level (Australia, Canada, New Zealand and the United States) Source: National statistical sources (New Zealand, 2013), Australia, Canada and the United States (2016)
  • 10. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Gaps are larger in rural areas 10 Note: percentage point difference between Indigenous and non-Indigenous outcomes Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia. Predominantly urban Predominantly rural Indigenous % Non- Indigenous % Gap (PP) Indigenous % Non- Indigenous % Gap (PP) Australia 54 74 -20 40 75 -35 Canada 58 62 -4 45 60 -15 New Zealand 60 71 -11 52 72 -20 United States 59 68 -9 53 70 -17 #OECDIndigenous Differences in the employment rate between Indigenous and non-Indigenous people by type of region (Australia, Canada, New Zealand and the United States) Note: Based on the OECD Territorial Classification. Source: Calculations based on national statistical sources.
  • 11. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Significant variation at a local level 11 Predominantly urban Predominantly rural Employment rate (%) Standard deviation Employment rate (%) Standard deviation Indigenous 55 0.07 44 0.08 Non- Indigenous 75 0.02 76 0.05 Gap (PP) -20 +0.05 -32 +0.03 #OECDIndigenous Employment rate between Indigenous and non-Indigenous people by type of region (Australia), 2016 Note: Based on the OECD Territorial Classification. Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016 , TableBuilder.
  • 12. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Statistics and data governance
  • 13. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Indigenous statistics and data governance – state of play 13 What’s working well Areas for improvement • Application of a standard identification method in the statistical system • ABS Indigenous engagement and collection methods, and the National Aboriginal and Torres Strait Islander Social Survey (NATSISS) • Work of Geosciences Australia and CSIRO with traditional owners • Local community-led innovations (e.g. Yawuru and Yorta Yorta) • Business data • Indigenous business and economic development knowledge-base • Indigenous geographies • More regular/granular data about issues that matter to Indigenous people • Local and regional (Indigenous-led) data initiatives #OECDIndigenous
  • 14. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Indigenous statistics and data governance - recommendations (select) 14 Improve national Indigenous statistics and tools • Introducing a consistent Indigenous business identifier into the Australian business registry system, the tax office, and business surveys undertaken by the ABS. • Increasing the frequency of the NATSISS from six to every four years; or consider re-aligning the ABS survey model to streamline NATSISS and the 6 yearly NATSIHS (National Aboriginal and Torres Strait Islander Health Survey) sample and questionnaire content into a single survey enumerated on a more regular basis. Increase access to local data • Developing an online platform for local Indigenous communities to disseminate data tools, build capacity, and share lessons and good practices. • Providing seed funding for Indigenous-led data projects and development of local indicators, data analytics and GIS capabilities (including promoting philanthropic and private sector co-investment in these efforts). Strengthen Indigenous data governance • Removing administrative barriers (through changing procurement rules, service agreements, data sharing protocols) to enable the sharing of data between service providers and Aboriginal organisations. • Ensuring the monitoring reports on the Partnership Agreement on Closing the Gap includes a component on progress in improving Indigenous statistical frameworks, addressing data linkage issues, and supporting Indigenous data sovereignty. #OECDIndigenous
  • 15. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Entrepreneurship
  • 16. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Entrepreneurship – state of play 16 Note: percentage point difference between Indigenous and non-Indigenous outcomes Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia. What’s going well Areas for improvement • Local Indigenous-led efforts that combine business and community development (e.g. Rangers groups) • Emerging policy focus on Indigenous economic development at a national and sub-national level • Establishment of the Commonwealth Indigenous Procurement Policy, and similar frameworks at a sub-national level • Addressing barriers to activating land, water, sea and cultural resource rights • Commercial acumen of local Indigenous institutions • Economic policy coherence (land, labour, entrepreneurship), including in remote areas • Access to business development and financial intermediation • Collaboration with local governments and regional development bodies #OECDIndigenous
  • 17. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Entrepreneurship – recommendations (select) 17 Develop a national Indigenous economic policy • Inclusion of Indigenous values and perspectives about development that addresses needs of Indigenous businesses (individual entrepreneurs, community based enterprises, and social enterprises) in different locations. • Integration of the broad range of policy settings that support Indigenous business and economic development (business support, land use regulation and administration, infrastructure, employment and skills, and local institutions). Increase procurement opportunities • Harmonising Indigenous procurement rules across jurisdictions (e.g. setting a common target and timeframe, thresholds for direct negotiation/ set asides, and requirements for suppliers related to sub-contracting). • Providing more effective capacity building support for entrepreneurs and small businesses to participate in public procurement markets (e.g. pre-establishment and establishment phases) Support remote economic development • Increase strategic planning, capacity building and economic development support for local Indigenous institutions (Prescribed Body Corporates, local Indigenous corporations and other such entities). • Consider establishing a loan instrument that would enable equity participation by Indigenous groups in mining and resource projects. Support the establishment of local Indigenous financial institutions • With an initial capital injection from government, and ongoing funding to cover a proportion of operational costs, and developing partnerships with mainstream financial institution and philanthropic foundations to increase the potential pool of capital available to Indigenous financial institutions. • Re-orientating some of the loan and grant functions of Indigenous Business Australia (IBA) to these local institutions, and focusing IBA on capacity building, networking, and technical support. #OECDIndigenous
  • 18. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Place-based approach
  • 19. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Place-based approach – state of play 19 Note: percentage point difference between Indigenous and non-Indigenous outcomes Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, TableBuilder for Australia. What’s going well Areas for improvement • Establishment of local corporations (Registered Native Title Bodies Corporate) through the Native Title Act • Commitment to Indigenous outcomes through the Council of Australian Governments, and the Joint Council on Closing the Gap • Local Decision Making and devolution initiatives (e.g. Northern Territory and New South Wales) • Shifting from grants to own-source revenues • Addressing capability gaps at key transition points • Investing in intermediaries and co- development institutions to build scale and access expertise • Linking with local governments and Regional Development bodies • Implementation of a place-based approach (brokers, planning, budget flexibility) #OECDIndigenous
  • 20. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Place-based approach - recommendations (select) 20 Strengthen the capacities of local Indigenous corporations • Consolidating existing funding support for institutional capacity building into a single program (alongside the other 5 themes of the Indigenous Advancement Strategy), and expand the range of activities that can be supported to encompass support for community planning, business case development, and local area data. Build scale in Indigenous business and economic development • Working with industry and Indigenous groups to develop good practice guidance, tools, and leading practices on how to leverage Indigenous Land Use Agreements (ILUAs) to deliver sustainable community and economic development outcomes. • Consider including a specific reference to Indigenous economic and community development in the Regional Development Australia (RDA) Charter. Embed a place-based approach in the NIAA regional presence • Re-scoping roles, training and mentoring to develop more entrepreneurial skills and capabilities in data analytics, networking, negotiation, and business support. • Having an agreed joint budget mechanism at the local level linked to a set of locally agreed outcomes, and delegating funding authority to regional managers and empowering them to deliver on local area outcomes. Improve the inclusion of Indigenous Australians in decision-making • Developing a common framework and good practices for engagement across Australian Government departments and agencies, and task the NIAA with a whole of government leadership role in monitoring consultation, promoting best practices, and delivering training and guidance on consultation. #OECDIndigenous
  • 21.  Twitter: @OECD_local LinkedIn: www.linkedin.com/company/oecd-local Website: www.oecd.org/cfe Thank-you! Lisanne.RADERSCHALL@oecd.org

Editor's Notes

  1. Thank you Alain I would like to acknowledge that I am on Ngunawal Country and pay my respects to elders part, present and emerging, and to Indigenous leaders who are part of the launch today. Acknowledge the team who produced this work in the Secretariat, the Centre for Aboriginal Economic Policy Research at ANU, Jeanette Pope, and peer reviewers from Canada and New Zealand.
  2. Brief overview of the OECD framework Findings and recommendations
  3. This report is located within and informed by a global report released in June 2019 at EMRIP in Geneva Active involvement of 14 countries and the European Commission Engaged directly with over 600 people and spent time with 36 First Nation communities Throughout stuck with the fundamental principle about how to activate Indigenous economic potential and facilitate participation in markets … process of learning and adjustment as we conducted the engagement and considered the evidence The recommendations focus on four key ingredients for thriving Indigenous economies: Usable data and information Fostering entrepreneurship Activating land, sea, water and cultural assets Strengthening local economic institutions Encourage you to also review the global report that is available on the OECD I-library
  4. Now in terms of our data analysis – I will make some key observations
  5. There is significant potential in the human capital of Indigenous Australians and this will become more important to the Australian economy. The Indigenous population is younger (median age of 23 years compared to 37 years for the non-Indigenous population) and is projected to grow to 1.05 million by 2030 due to a higher fertility rate and the increasing propensity to self-identify.
  6. Another area of economic contribution is the growing Indigenous estate. Indigenous tenure (Native Title and Statutory land rights) currently covers 51% of Australia’s land mass. It is estimated that this will increase to two-thirds over the next decade due to the resolution of outstanding claims. As we shift to a post-determination era, greater focus will need to be placed on how Indigenous Australians can best utilise their estate, including for commercial benefit.
  7. Relative to the non-Indigenous population more Indigenous Australians live in lower density economies (in Regional Australia) This chart uses the OECD territorial classification for comparative purposes but similar findings are generated when using the ABS geographic classification. Given these land and human assets, Indigenous Australians have the potential to be important drivers of regional economic development.
  8. However, Australia is not mobilising the economic potential of Indigenous Australians. There are various reasons for gaps in economic outcomes between Indigenous and non-Indigenous Australians including: Mismatches in skills, experience and location relative to the jobs that businesses are creating. This is likely to become more of a risk in a weaker labour market that places a higher premium on skills. Barriers to activating the potential of land, sea, water and cultural resource rights Discrimination and cultural bias. Lack of inter-generational wealth transfer and experience of participation in markets. Importantly, gaps between Indigenous and non-Indigenous economic and well-being indicators are much larger in Australia relative to comparable settler countries that inherited British institutions. For example, the Northern Territory has the lowest Indigenous economic outcomes and largest gaps of any region in the OECD. These outcomes are worse than comparable jurisdictions such as Alaska and Nunavut. These findings demonstrate the scope for Australia to learn from other jurisdictions to improve domestic policy settings.
  9. One novelty of the OECD work was the comparison of economic and demographic indicators at a small area level [213 small regions across 5 countries (+Mexico)] The empirical analysis revealed two key findings: Relatively more Indigenous people live in low density economies Gaps in well-being are larger in these types of regions Again, these gaps are much larger in the Australian context.
  10. The empirical analysis also revealed a higher level of diversity in economic outcomes for Indigenous Australians across small regions, which was higher again in low density economies. The key implication is that a one size fits all solution is unlikely to work – more so regional and remote areas. So what are the implications? There is unrealised economic potential (I say that deliberately to avoid a deficit approach) Indigenous Australians are relatively more important for regional economies Outcomes are highly diverse and therefore policies need to be context specific
  11. I will now turn our focus to the policy recommendations First area is Statistics and data governance Data is critical in terms of making informed decisions and being visible in policy and markets…
  12. What’s working well Relative to peers, strong on the data aspects (NATSISS) Good grass roots efforts at the local level, led by Indigenous communities – using data to define community aspirations and strategies for development Areas for improvement Fragmentation of business data, and lack of focus on business and economic development (For example on the Closing the Gap Clearinghouse [AIHW] there are 300 reports and papers related to research about Indigenous Australians. Of these, only 1 deals specifically with Indigenous entrepreneurship and 4 engage with labour market issues) More granular data, and support for data use driven by Indigenous Australians at local and regional levels
  13. Recommendations (highlights) Consistent Indigenous business identifier that is operationalised in the statistical system Increasing the frequency of NATSISS Specific support for Indigenous led local data projects to inform community and economic planning Addressing structural barriers related to the use and sharing of data between government agencies and levels of government
  14. 2nd theme Indigenous business ownership has a range of benefits in terms of: Breaking dependency relationships with government Wealth creation and generating own source revenues Leadership, role models, and mentoring Increased employment Activation of latent assets
  15. What’s working well Engagement revealed strong and effective local efforts to combine economic participation and community development Increased policy focus in recent years on economic and business development (and a marginal shift away from a predominantly social policy and welfare focus) Areas for improvement Analysis of current policy settings (and relative to international peers) there are three challenges: Lack of coherence across economic policy domains – no comprehensive and integrated policy direction in terms of economic development Lack of focus on land activation. Local traditional owners generally lack the means (authority, capital, information) to make decisions about land use. Too much power sits with statutory agencies and service providers related to local entities such as PBCs. Difficulties for entrepreneurs to access the support and capital needed, particularly at a start-up and early growth phase. This is an issue of the type of financial instruments available and how that support is delivered.
  16. Recommendations (highlights) First is to develop a national Indigenous economic policy framework that provides comprehensive and integrated direction across entrepreneurship, employment, the activation of land, sea, water and cultural assets, and strengthening local institutions Build a national procurement market underpinned by common rules Change the way business support and financial intermediation is delivered for Indigenous entrepreneurs and small business by establishing a network of local Aboriginal financial institutions (implies a different role for existing institutions such as IBA) The latter draws on the lessons identified from the establishment of local Indigenous financial institutions in the United States and Canada since the 1980s.
  17. Such differentiated outcomes + attachment of Indigenous Australians to kin and country necessitates a localised approach to policy implementation and economic development. Consistent with the National Agreement on Closing the Gap
  18. What’s working well Progress has occurred on a number of fronts: Corporations established under the NTA Closing the Gap and earlier co-operation through COAG – signifies a bi-partisan approach Local decision making frameworks – assets and services are devolved to Indigenous organisations, for example in the NT and NSW Areas for improvement Most Indigenous institutions are caught in a cycle of dependency on short term government grant funding making it difficult to be strategies, or incentivise the generation of own source revenues. There are a lack of institutions to develop economies of scale and deliver business and economic development support (hence the focus in the report on co-development and business advisory services) Weak linkages with local government and regional development bodies Lack of tools to deliver a place-based approach (which results in the fragmentation of funding and high transaction costs at the local levl)
  19. Recommendations (highlights) Focus within the Indigenous Advancements Strategy on institutional capacity building (leadership development, corporate governance, commercial acumen) Focus on training, expert advice, template and tools and peer learning in regards to commercial agreement making for local traditional owner groups Continue to shift the National Indigenous Australians Agency regional presence from grants administration to a community and economic development role, which is critical in terms of brokering solutions on the ground NIAA taking on a whole of government role in terms of setting standards, frameworks and monitoring engagement of Indigenous Australians in decisions that affect their lives. Significant lessons for Australia about how to professionalise, strengthen the capability of Indigenous peoples, and foster linkages with markets. In the Canadian context this includes the National Aboriginal Capital Corporations Association, and the Canadian Council of Aboriginal Business.
  20. Thank you for your participation Further information is available on this work from the OECD Secretariat Happy to engage in further dialogue on this work.