Overcoming barriers to economic development in Indigenous communities would help achieve economic reconciliation and better socioeconomic outcomes for Indigenous peoples. These barriers continue to prevent many First Nations, Inuit and Métis communities and businesses from fully participating in the Canadian economy. Barriers to Indigenous economic development include the legacy of colonialism, the failure to recognize Indigenous jurisdiction, inadequate infrastructure, administrative burdens, limited access to capital, and limited access to federal procurement opportunities. First Nations, Inuit and Métis face similar barriers to economic development, but they are also confronted with challenges that are unique to their situation and their relationship with the federal government.

In early 2022, the Standing Committee on Indigenous and Northern Affairs of the House of Commons (the committee) undertook a study on the barriers to Indigenous economic development and how to remove them. Based on what it heard from 33 witnesses over five meetings, the committee is making a series of recommendations pertaining to:

• implementing the United Nations Declaration on the Rights of Indigenous Peoples Act;
• overcoming administrative burdens and making economic development programs more accessible;
• improving access to capital and federal procurement opportunities;
• implementing the forthcoming national Indigenous economic strategy;
• adapting funding mechanisms and programs to account for the remoteness and isolation of some communities;
• ensuring that the government meaningfully engage Indigenous businesses and communities on major infrastructure projects in the North;
• ensuring that the Métis have access to economic development supports equivalent to those provided to First Nations and Inuit;
• amending the First Nations Fiscal Management Act to establish a legislative basis for a First Nations Infrastructure Institute;
• expanding First Nations fiscal powers;
• increasing the resources available to the three First Nations fiscal institutions (First Nations Finance Authority, First Nations Tax Commission and First Nations Financial Management Board) and expanding the mandate of the First Nations Finance Authority;
• eliminating barriers to economic development that stem from the Indian Act;
• amending the First Nations Land Management Act;
• redesigning the Additions to Reserve process;
• creating a Federal Advisor on the Enforcement of First Nations Laws and By‑Laws;
• ensuring that postal rates do not unfairly penalize Indigenous communities; and
• supporting interested Indigenous peoples in seizing opportunities in the natural resources sector.

This report explores the testimony heard as part of this study and provides more context for these recommendations.