Economic change needed on reservations

By Michael B. Jandreau For the Argus Leader

The book that appears to have become required summer reading is "The World is Flat" by Thomas Friedman. It is an extraordinary book that discusses the phenomenon of globalization and what it means for the U.S. It starts by outlining just how fast China, India and other developing countries are entering the new world economy and competing effectively.

Through outsourcing, insourcing, new technological breakthroughs and various business techniques, along with new international trade agreements, the global market has "flattened" the world and allowed more and more countries to compete on a level playing field.

Unfortunately, American Indian reservations are not benefiting from the new global economy. Not much seems to be changing on the reservation, unless the reservation is near a major population center and can benefit from gaming.

The unemployment rates and health statistics still do not come close to those of the rest of the U.S.

Life expectancy on American Indian reservations approximates that of the Third World. Unemployment can reach 75 or 80 percent. Enrolled tribal members face a choice between upward mobility and leaving their culture and family.

My recent testimony before the Senate Committee on Indian Affairs made the point that, in the long run, for tribal sovereignty to survive there must also be economic sovereignty. In short, there must be a private sector economy on the reservations for people to flourish and have their culture survive.

What is needed? Assuming there is the political desire to do so, the following initiatives might be a good place to start:

There must be major tax incentives for any company to locate on a reservation and employ enrolled tribal members.

The federal government must find a way to facilitate the extension of private credit on a reservation. Most small businesses are started by taking the equity out of your home. Since tribal land is held in trust, perhaps the federal government should have to guarantee private loans to tribal members.

A federal program to bring the Internet to all reservations is crucial. The Internet is the modern version of electricity, and we need a new REA.

A job training program is vital. We must recognize that to break the cycle of poverty and create a private sector economy on the reservations, a work force must be trained.

Education must be emphasized at all levels. Whether it is technical school or the Ivy League, tuition and support should be provided for all those interested in going to school.

Structural changes must be made within the Bureau of Indian Affairs to give each tribe increased autonomy.

This is not intended as the definitive list of initiatives necessary to address the complicated problems facing the reservations, particularly those rural reservations that are usually among the poorest counties in the U.S. It is intended to stimulate thinking.

The world is changing at rapid rate. This change, however, seems to be bypassing the Indian reservations of America.

It is time to flatten the reservations. It is up to those on the reservations, and others who care, to try to unite behind a common agenda and present it to Congress and the administration.