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Clayoquot Green Economic Opportunities Project
PART TWO
Critique of the Landscape for Community Economic Development
Communities have two choices with respect to their economic position, and therefore their community well being. Either they organize to shape the kind of economy they want or they find themselves reacting to economic forces imposed from elsewhere. Recent history demonstrates that the latter has been the most common scenario in coastal BC. When fishing and logging collapsed these communities were not prepared with an alternative strategy. They have been struggling to regain economic equilibrium ever since.
Tofino was exempted from the position of other communities to some extent because of a tourism boom that grew, in large part, out of the controversies of the 1980s and 90s. While on the surface this appeared to be a solution, residents and community leaders now recognize their continued vulnerability. A tourism-dependent community is still a one-resource town. Tofino continues to be in a reactive mode with respect to its economy.
Ucluelet and some of the First Nations communities have benefited to a lesser extent from the tourism boom. These communities have had a harder struggle and as a result have moved into more of a proactive economic development approach. The challenge is not to pursue just any economy and the jobs and revenues it provides, but to use this opportunity to create an economy that speaks to agreed upon long-term values of ecological sustainability, social equity, economic well-being and recognizes the inherent rights of the region's First peoples.
The UNESCO Biosphere designation in 2000 issues a challenge to the Clayoquot Biosphere communities to actively engage in the development of an economy that embodies these values and is a model for the world.
Our research has revealed a number of factors that will help the region achieve their vision. It has also identified both sector-specific and overarching issues that must be attended to because they represent very real barriers to success.
2.1 Key Factors Working in the Region's Favor:
There are four important ingredients that will assist the Clayoquot Biosphere Region to achieve its vision.
* A creative, talented and committed population.
More than 50% of the population have been here for generations. Their attachment to the place is unwavering and they are deeply committed to ensuring these communities are healthy and vibrant for their children and their children's children. Newcomers to the region are choosing the place because of the values embodied here, expect to see them realized and are willing to contribute time and energy to that dream. This kind of "people power" is a huge asset to any kind of community economic development initiative. The development of innovative solutions such as Iisaak and the West Coast Vancouver Island Aquatic Management Board are a testament to leadership and commitment.
* A world-renowned and scientifically important ecosystem
A globally unique natural environment of the region offers incredible economic opportunities. Rich natural resources, managed appropriately, provide natural capital that can sustain communities in perpetuity. By 2008, with proper stewardship, oyster and clam production alone is expected to contribute more than $5.5 million per year to the local economy. Tourism revenues, based primarily on the attraction of the area's natural environment, already top $100 million per year.
* Ready market and ready money
Whistler is the only other local BC economy that has a similar level of local access to the global marketplace - a market with significant disposable income. The monetary wealth created in the region, at least in the short to medium-term, can be channeled toward long-term solutions. No other rural coastal community has this level of resources to work with. At this time, with the exception of this year's voluntary $10 tax initiative[1], there are no mechanisms for directing a portion of this wealth to long-term community capacity building.
Increasing local control over resources and development
Lack of local access to adjacent natural resources has been a major barrier to economic development in the region. Progress has been made in recent years, however, largely due to the confirmation of Aboriginal rights and title in the courts and subsequent treaty negotiations. Settlement of treaties will provide an new opportunity to redefine the relationship between communities and their access to adjacent natural resources, benefiting all communities of the region in the process.
A second impetus for change in this direction is the gradual devolution of authority to municipal and tribal governments. While this change is driven by fiscal rather than philosophical considerations, it provides opportunities to design more locally appropriate policies and programs.
2.2 Barriers to Success
Directing the development of a community economy requires not only an identification of community strengths and assets but also a candid assessment of barriers and a commitment to clear them out of the way. The barriers identified in this research for the Clayoquot Biosphere communities can be summarized in five key 'issues':
* Human resource capacity
Being committed to a vision doesn't equip a community to get the job done. Each community has its own human resources challenges. Nuu-chah-nulth communities are faced with significant social challenges as a result of years of denigration. Very real issues of substance abuse and other significant health and social issues, including diabetes,[2] teen pregnancy, heart problems and HIV/AIDS. Government dependency as well as cultural and community obligations make it complex to successfully integrate First Nations into the "traditional" labour force.
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For all Clayoquot communities education levels are below provincial averages. Further, while local residents are often highly skilled, there is not necessarily a good match between these skills and the needs of a new, more diverse economy. In order to succeed, these communities need to complete a candid skills assessment and plan for the building of new skills that are appropriate to their chosen economic direction.
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"It is hard to get people to work for you, so they call the shots".
Tofino Entrepreneur
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In the small and independent business community there is limited attention paid to the development of a marketing strategy. At this time the success of small business is largely dependent on the marketing activities of larger businesses. This characteristic is partly a function of funding and partly a function of preference, skills and temperament.
Yet another issue is labour force reliability and mobility. The seasonal nature of the tourism economy has brought a new kind of employee to the region. Made possible by high labour demand in Tofino these employees often do not have high levels of employer or community loyalty. Developing a long-term labour force is made more difficult with high housing costs.
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Finally, as in any small community, there are a handful of individuals who carry a tremendous leadership load. After more than two decades of struggle many of these leaders are burnt out and disillusioned. For the Nuu-chah-nulth the tasks of building outside relationships and negotiating treaties over-and-above managing their own internal affairs are onerous and stretch their capacity to the limit. For both Native and non-Native leaders this is a barrier to proactive economic development.
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"There is a lack of education and knowledge about what is possible, and a real fear of change".
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* Community relationships
There are many areas of economic opportunity that can only be capitalized on if there is regional cooperation. For instance, a business utilizing industrial waste is only viable with regional volumes of supply. The same can be said for a shake and shingle mill. Current efforts to promote tourism in one community are often at the cost of another, when collaborative marketing could benefit both. This region does not have a strong history of cooperation for economic development. Lines are drawn all too easily based on history, family, philosophy and jealousy between Native/non-Native, Ucluelet-Tofino, and Nation to Nation factions. As a result many opportunities are lost and quality of life in the region is reduced. In the Clayoquot Biosphere region one of the keys to breaking down these relationship barriers is an acknowledgement of inequity and a willingness to address it.
* Infrastructure limitations
Probably the most evident barrier and the one that has received the most attention if not the most action in recent years is lack of community infrastructure. The list of infrastructure challenges in Tofino includes: sewage treatment, water storage, parking (for both visitors and offshore residents), affordable housing, commercial/retail space.
Housing shortages and adequate solid and liquid waste treatment issues are significant in First Nations communities. Ucluelet also has limited sewage treatment, a limited recycling program and deteriorating marine infrastructure. The safety and condition of the roads are another concern. The distance to the West Coast from major markets and the high costs of transportation are factors that have to be taken into account in the development of any new businesses. Improvements to Highway 4 being considered would help alleviate this problem to a limited extent.
Finally, communications infrastructure (e.g. highspeed Internet) has been a business barrier in the region. Current initiatives are underway to address it. As with all rural communities infrastructure, however, management issues are particularly hard to grapple with because of the limited tax base and huge costs associated with improvements. Currently the huge influx of summer visitors to the Clayoquot Biosphere region taxes available infrastructure beyond its capacity but does not make a comparable contribution to infrastructure development.
* Financing load
In addition to the challenges of financing infrastructure, businesses face financial management issues associated with a seasonal economy. Businesses have four-five months to cover a year's worth of expenses. This is particularly problematic in areas with high real estate and commercial lease costs (Tofino and increasingly Ucluelet). The always-difficult challenge of financing small business start-up is amplified in a region that can't show year-round cash flow. Initiatives to create a twelve-month economy are essential.
* Governance changes
The final set of critical barriers revolves around questions of governance, both locally and at senior government levels. Municipal and tribal governments are being asked to take on an increasing number of functions as senior governments and institutions 'download' their programs and services. This increased responsibility comes without adequate training or timelines to adjust. Staffing levels at the local level are often insufficient to manage the new workloads and the challenges of economic development are often forced into a secondary position behind issues of seemingly more pressing urgency.
In Tofino and Ahousaht there is not designated economic development capacity. In Ucluelet an economic development agency has been created (UEDC), but responsibility rests with an already busy financial manager. Ecotrust Canada, Tla-o-qui-aht Economic Development Corporation, a recently approved NTC shellfish corporation, Ma-mook Development Corp. and others organizations, however, bring staff resources for CED to the region (see p. 35 for a list of relevant agencies). Where economic development capacity does not exist, research on economic development options is limited and business support and recruitment efforts minimized.
First Nations governments are also faced with the complex task of reconciling more than one governance system within their communities. The complexity of hereditary and band council structures, and the shifting relationships between them, can undermine some economic development initiatives and make it more difficult for private sector partners to engage.
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Yet another challenge for business development is the confusing web of regulations and jurisdictions that exists at the level of senior governments. Small businesses and local development agencies find themselves taxed in terms of time, money and knowledge in their attempts to 'clear the way' for new initiatives at the community level. In each of the sectors examined for this project this issue was repeatedly raised. It is no ones role in government to focus on ways to rationalize regulations to assist small business. There is no small business strategy and no rural policy to bring the various strings together and facilitate community-based development.
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"It takes 2 - 5 yrs to get going because of the paper trail. At times I felt like throwing in the towel."
"The decision-makers have the ability to clear the log jam, but they don't. It's a real piss-off."
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This can be particularly difficult for new industries that governments know little about and have reduced capacity to address. The lengthy timelines to bring underutilized fisheries species on-line for commercial harvest is an example.
Finally, governments generally do not acknowledge social or cultural criteria in designing policies that effect rural areas (e.g. market-based fiber or fisheries allocations). The three-year WCVI Aquatic Management Board pilot program repeatedly points to the importance of driving decision-making and management control down to the community level to ensure that local knowledge and commitment to sustainable use are integrated into planning.
2.3 Maximizing Opportunity
Whether a single business operator or an entire region that is faced with economic challenges, the means of getting to a more positive position are the same - Understand what is working for you and what is working against you, maximize your strengths, minimize your weaknesses and develop an action plan for clearing obstacles out of the way. The preceding section has identified both strengths and challenges to be addressed in developing the Clayoquot economy.
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1) Recommended in the 2003 Insider's Guide to Tofino.
2) BC Vital Health Statistics Agency, 2001: www.vs.gov.bc.ca/stats/quarter/q2_97/
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