Native American economic development on selected reservations: a comparative analysis

American Journal of Economics and Sociology, The,  Oct, 1996  by David L. Vinje

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Reflecting the emphasis on public sector activities consistent with tribal objectives of meeting Basic Needs, government employment increased to 60.8 percent of total employment from the 1970 figure of 47.0 percent. Mining activity, while important for specific tribes, did not constitute an important source of employment overall with a median figures of .3 percent for the reservations covered. There were a few individual reservations where the resource boom of the 1970s was especially important. The Laguna Pueblo with its uranium activity, for example, had some forty-one percent of its labor force in mining by 1980, and, for the same year, had the highest per capita and family income of all 23 reservations. This clearly is an exception, since the next highest level of employment in mining is found on the San Carlos and Navajo reservations with 9.7 percent and 7.1 percent respectively.

The Basic Needs emphasis associated with a greater tribal voice in development decision-making can also be seen by the data on education and housing for 1980. The percent of population 25 years and older completing high school nearly doubled, increasing from a median figure of 23.4 in 1970 to 44.8 percent by 1980. In housing, the percent of housing without plumbing dropped impressively from 59.6 percent in 1970 to 9.1 percent by 1980. The percent of housing with one or more persons per room also underwent a major change. While not as dramatic a change as in the case of plumbing, it still shows a significant drop going from 57.6 percent in 1970 to 35.1 percent by 1980.

The 1980s were a difficult period for the twenty-three reservations covered. Reagan's "New Federalism" was put forth as an extension of tribal self-determination since it emphasized further reductions in the BIA's operations. However, in reality, much of the emphasis of the "New Federalism" appears to consist of a reduction in federal monies available to the Native American population. Specifically, the tribes are essentially on their own in regards to the economic development process with seventy-five percent of the financing for new projects being required to come from tribal and private sources. Prior programs had often had the government putting up seventy-five to one hundred percent of the funds needed. Additionally, the federal government reduced its spending for many of the Basic Needs categories. Patrick Morris, in an article entitled "Termination by Accountants: The Reagan Indian Policy," documents the Reagan Administrations attempts to substantially reduce spending in the area of Indian education and human services.(6) In examining federal expenditures in constant dollar terms, Paul Stuart found that for the period 1981-88 there was a negative 5.5 percent change in BIA Direct Program Expenditures, a negative 34 percent change in Indian Education grants, and a 28.1 percent decline in Job Training expenditures. The only sector of federal expenditures that increased during this period was that of direct outlays for Indian Health with an average increase of 3.5 percent a year.(7)