Linking Indigenous Communities with Regional Development in Australia - Policy Highlights - OECD
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@OECD
Linking Indigenous
Communities with Regional
Development in Australia
Policy Highlights
Linking Indigenous Communities with Regional Development in Australia
Linking Indigenous Communities with
Regional Development in Australia
T
here are approximately 800,000 In recent decades, there has been significant
Indigenous Australians, which is 3.3% Indigenous innovation and entrepreneurship
of Australia’s total population. Scientific with business growth in areas such as
evidence suggests that mainland Australia construction, tourism, environmental services,
was first settled by Indigenous peoples and arts and culture. However, significant gaps
approximately 65,000 years ago. The in socio-economic outcomes compared to non-
intimate relationships between spirituality, Indigenous Australians remain. These gaps are
livelihoods, kinship, and place are central to larger in rural regions.
understanding Indigenous Australians. It is the
world’s oldest continuous living culture and This study, undertaken prior to the COVID-19
Aboriginal and Torres Strait Islander peoples pandemic, provides recommendations to
make a vital contribution to contemporary the Australian Government about how to
Australian society. Indigenous Australians are improve economic development outcomes for
also important for the future of the national Indigenous peoples at a local and regional level
economy. For example, the amount of land around three pillars:
with Indigenous ownership and interest now
covers approximately half of Australia’s land 1. Developing statistical frameworks and
mass. data governance for Indigenous well-
being;
Indigenous Australians play an important role
in the development of regional economies. 2. Creating an enabling environment
Compared to the non-Indigenous population, for Indigenous entrepreneurs and small
Indigenous peoples are more likely to be business;
located in predominantly rural regions (48%
compared to 17% for the non-Indigenous 3. Implementing a place-based approach
population). As such, they are relatively more to economic development that empowers
important to rural economies in terms of Indigenous Australians.
labour supply and consumption, and play a
key role in unlocking the growth potential of
regional economies.
2
Policy Highlights
1. Indigenous well-being, statistical
frameworks and data governance
Since the 1970s, Australian Indigenous peoples
1.1 A ustralia’s Indigenous population is
characterised by its relative growth, youth,
and concentration in rural areas as well their
have had their rights recognised, which for
some includes land and rights to development.
Today, Indigenous Australians are developing
connection to land and traditional knowledge competitive and innovative businesses that
that gives rise to competitive businesses and range from mining and construction, tourism,
has significant growth potential renewable energy, ecosystem services, arts and
creative industries. In many cases, traditional
Place is a key organising feature of Australia’s knowledge (an evolving system of knowledge
Indigenous economy. Kinship relations of and practices developed over millennia) is a
different First Nations stretch back millennia fundamental component to these business
and emphasise spiritual connections to distinct ideas. Australia’s Indigenous population is
lands. Australian Indigenous policies up to the younger than the non-Indigenous population
late 1960s were characterised by dispossession with a median age of 23 compared to 38.
and assimilation. Often, this resulted in Indigenous peoples are also more likely to
the disruption and loss of traditional live in rural regions compared to the non-
territories, dependency upon religious and Indigenous population. Over time, the
state institutions, and barriers to economic population is becoming more urbanised.
participation.
Figure 1. Population distribution by type of region, 2016
Population growth rates 2001-2019 in small OECD regions
80% Note: Based
Indigenous on the OECD
70% Territorial
non-Indigenous
Classification.
60% Source:
Calculations
50% based on data
drawn from
40% ABS Census of
Population and
Housing, 2016 ,
30% TableBuilder for
Australia.
20%
10%
0%
Predominantly rural Intermediate Predominantly urban
© OECD 2021 3
Linking Indigenous Communities with Regional Development in Australia
resource based and have lower population
1.2 T here are significant well-being inequalities
between Indigenous and non-Indigenous
Australians - these gaps are larger in rural
densities (Queensland, the Northern Territory
and Western Australia). Unemployment for
instance varies from 9% (Australian Capital
regions Territory) to 27% (Northern Territory). These
results are similar to the employment rate.
At national level, inequalities between Indigenous Peoples in predominantly rural
Indigenous and non-Indigenous populations regions have the most disadvantage position
manifest themselves across far too many across multiple indicators. For example, the
indicators - for example, the gap in upper unemployment rate of Indigenous Peoples
secondary school attainment for 25-64 year in predominantly rural regions is 6 pp higher
olds is 40 percentage points (pp) between the than in predominantly urban regions, and
Indigenous and non-Indigenous population upper secondary school education attainment
and the gap in life expectancy is 10 years. of 25-64 years olds between urban and rural
There is significant variation at the State Indigenous Peoples is 16 pp lower in rural
and Territory level. The largest gaps are populations.
evident in the States and Territories that are
Table 1. Gaps in well-being indicators, Indigenous
and non-Indigenous population, by type of region, 2016
Urban Intermediate Rural
Employment rate gap -20 -27 -32
Unemployment rate gap 8 12 15
Self-employment rate gap -6 -9 -10
Educational attainment -31 -31 -31
Household internet access -5 -9 -11
Note: Percentage point difference between Indigenous and non-Indigenous outcomes.
Source: Calculations based on data drawn from ABS Census of Population and Housing, 2016, Table Builder for Australia.
4
Policy Highlights
Figure 2. Gaps in selected well-being indicators between Indigenous
and non-Indigenous peoples at the national level, 2016
Absolute values
45 Percentage
points
40
35
30
25
20
15
10
5
0
Unemployment Life Expectancy Income Employment Education
Note: The gap in life expectancy represents the gap between the life expectancy of Indigenous peoples and non-Indigenous
peoples relative to the life expectancy of non-Indigenous peoples. The gap in income is defined as the difference between median
weekly earnings of Indigenous and non-Indigenous peoples relative to median weekly earnings of non-Indigenous peoples.
Source: Calculations based on data received from the ABS.
© OECD 2021 5
Linking Indigenous Communities with Regional Development in Australia
1.3 Statistical frameworks have advanced -
but the inclusion of Indigenous values
by the Australian Bureau of Statistics (ABS).
The ABS also employs Indigenous engagement
and perspectives, and the empowerment of officers, and adapts collection methods for
Indigenous groups to collect and use data remote areas. Efforts to implement reforms
needs to become priority recognise the need to better link existing
datasets to improve coverage. However,
Despite progressive improvements in data the implementation of these reforms is
collection about Indigenous peoples, gaps not monitored, which depend upon co-
remain and inclusion of Indigenous values operation among the Commonwealth, States
and perspectives needs to be improved. and Territories. Support to empower local
Indigenous geographies (based on First Indigenous institutions to collect data and
Nation territories) are not part of the use it to inform community decision-making
territorial classification, which reflects how is generally lacking. This includes Indigenous-
government agencies (rather than Indigenous specific data governance models, and the
Australians) are primarily driving the framing availability of funding and technical support to
and organisation of statistics. The main build data collection and analytical capabilities.
mechanism for communicating Indigenous
well-being outcomes in Australia is the
“Closing the Gap” framework. The design and
organisation of these statistics is driven by
S elected recommendations for improving
statistical frameworks and data governance
1.4
government agencies, which is reflected in National Indigenous statistical frameworks and
lacking statistical products for local Indigenous tools can be improved by:
communities and missing survey instruments
to collect sufficiently disaggregated data about Introducing a consistent Indigenous
issues that matter for Indigenous peoples (e.g. business identifier that acknowledges
traditional knowledge). Further, research is the stage of maturity of the Australian
heavily weighted to health and social issues, Indigenous business sector, into the
and in comparison, evidence about Indigenous Australian business registry system,
business and economic development issues, is the tax office, and business surveys
lacking. In addition, there are inconsistencies undertaken by the ABS.
and gaps related to data about Indigenous
businesses across governments, not for Increasing the frequency of the National
profit and private sectors because there is no Aboriginal and Torres Strait Islander Social
common definition for Indigenous business. Survey (NATSISS) from six to every four
This makes it difficult to make accurate years to provide more timely data about
and comparable statements about the size, Indigenous populations. Alternatively,
composition and trends in this sector. consider re-aligning the ABS survey model
to streamline NATSISS and the six yearly
Mechanisms to include Indigenous Australians NATSIHS (National Aboriginal and Torres
in the governance of data are focused on Strait Islander Health Survey) sample and
government agencies and miss to empower questionnaire content into a more regular
local Indigenous institutions. Indigenous single survey.
representatives have an advisory capacity in
the creation and dissemination of statistics
6
Policy Highlights
Working with Indigenous organisations agreements, data sharing protocols) to
and community representatives enable the sharing of data between
to develop indicators and data by service providers and Aboriginal
remoteness category related to organisations (e.g. to support collaborative
subsistence, access and use of traditional initiatives such as Empowered
lands and waters, and internet access and Communities).
use (potentially by increasing the scope of
NATSISS). Embedding data and analytical capacities
into the National Indigenous Australians
Ensuring that the monitoring of progress Agency (NIAA) regional network to provide
through “Closing the Gap” includes support communities to utilise data in
disaggregated analysis and reporting planning and decision-making.
by remoteness category, and compares
progress across different types of regions. Ensuring the monitoring reports on the
Partnership Agreement on “Closing the
Working with Indigenous organisations Gap” include a component on progress
and community representatives to in improving Indigenous statistical
develop pilots on statistical reporting frameworks, addressing data linkage
based on the traditional boundaries of issues, and supporting Indigenous data
language and social groups. sovereignty.
Increasing access to local data that can be used
by Indigenous groups for community planning
by:
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.
Strengthening Indigenous data governance by:
Supporting Indigenous-led institutions to
develop data governance models, research
ethics guidelines, and protocols for data
use and sharing.
Removing administrative barriers (through
changing procurement rules, service
© OECD 2021 7
Linking Indigenous Communities with Regional Development in Australia
2. Creating an enabling environment
for Indigenous entrepreneurs
and small business
Indigenous economy is legal rights over the
2.1 Indigenous entrepreneurship and business
development is critical to self-determination
use of land, water and sub-surface resources.
Over the past 50 years, the amount of land
and unlocking the potential of regional with Indigenous ownership and interests has
economies – geography shapes opportunities increased significantly in Australia. In 2017,
48.5% of Australia’s land mass had some form
Entrepreneurship presents Indigenous of Indigenous rights, and a further 28.1% was
peoples with the opportunity to use assets subject to claimant application for Native
and resources in ways that align with their Title. Current arrangements for managing and
objectives for development, build wealth and regulating Indigenous lands create barriers to
create jobs. It can support self-determination economic development, including complex and
and reduce dependency relationships. lengthy procedures, dependency on multiple
Typical market failures, such as asymmetric local, state and Commonwealth agencies,
information and the inefficient allocation weak links with local municipalities, and lack
of credit, are often more pronounced in the of authority and capacity to map land and
Indigenous small business sector. This can identify areas for development potential.
be due to the regulatory and administrative Overall, local Indigenous institutions lack
arrangements governing Indigenous lands, effective control of land.
discrimination and poor credit histories.
I
Geography is an important factor in shaping
the economic development opportunities
ndigenous communities value development
outcomes that strengthen cultural well-being
2.2
available to Indigenous communities. and this is driven by local innovation
Development opportunities and challenges
differ whether firms are located in a The analysis of Indigenous economic
metropolitan region, rural regions close to development includes six diverse places and
cities, or in rural remote regions. Cities offer their communities. These range from remote
a greater diversity of opportunities due to places with limited resources and amenities
the scale and density of economic activity. In over remote paces with abundant resources
contrast, rural regions have thin markets, lower and amenities to those close to cities and
levels of human capital, and often depend in metropolitan regions. Many communities
upon specialising in tradeable activities. strive to join economic development with
the strengthening of connections to country
Land tenure arrangements shape trajectories and culture. In rural remote areas with large
of Indigenous business and economic Indigenous populations the development
development. A key characteristic of the
8
Policy Highlights
context is shaped by traditional hunting, from reforming employment services towards
fishing and food gathering, cultural obligations, increasing demand for Indigenous business
and sharing resources amongst kinship groups. through preferential procurement. The
These communities have also developed Australian Governments 2018 Indigenous
opportunities linked to the primary sector Business Sector Strategy identified
and tourism. Local Indigenous leaders and measures to improve access for individual
institutions have played a key role in activating entrepreneurs and business owners to finance
these opportunities. and business support services. Despite this,
there are still a number of weaknesses in
Developing local Indigenous economies is the policy framework that need addressing,
a complex task that requires strong local including: failing to include Indigenous
institutions and flexibility from governments. perspectives about development; unclear
Effective local Indigenous-led development roles and responsibilities between different
institutions are needed to provide leadership, levels of government; a failure to integrate
facilitate development priorities, build Indigenous priorities in land use regulation
evidence through data, coordinate investment, and administration, and; a lack support
and operate community businesses. for local Indigenous institutions leading in
Local Indigenous institutions (Aboriginal community economic development. There
Corporations, Land Councils, and Prescribed is an opportunity to improve the policy
Body Corporates (PBCs)) take on these roles, framework and address these gaps as part of
but generally do not have the skills and the implementation agreement of the Joint
resources needed to do this in a sustainable Council on the “Closing the Gap” report.
way. Government policy frameworks and
decision-making across levels of government
lacks a vision for Indigenous economic
development based on strengthening culture
In terms of programme delivery and
implementation, gaps in supply-side support
need to be addressed, along with making it
2.4
and connections to country. Policy settings easier for entrepreneurs, business owners
related to Indigenous economic development and local institutions to navigate the existing
tend to focus on public procurement and support
industrial development opportunities.
Engagement with local governments and The Australian Government’s Indigenous
Regional Development Australia (RDA) Procurement Policy has generated impressive
Committees are absent or weak. results, and there are opportunities to
strengthen this initiative. In 2015, the
2.3 Although policy frameworks are advancing,
more efforts are needed to recognise the
Australian Government set a target of 3%
of the total value of public procurement to
unique strengths of Indigenous economies Indigenous businesses by 2019-2020. It also
and the importance of community economic has mandated set-asides in remote areas
development. to incentivise Indigenous participation, and
minimum Indigenous content requirements
All Australian Governments have made on public procurement contracts. This policy
significant progress in policy frameworks to has increased the value of contracts awarded
support Indigenous economic participation, to Indigenous businesses increased from AUD
but challenges remain. The focus has shifted 6 million to over AUD 1 billion in three years.
© OECD 2021 9
Linking Indigenous Communities with Regional Development in Australia
Additionally support is provided in terms of Indigenous entrepreneurs, business owners and
concessional loans and performance bonds communities face complexities in accessing
as inadequate capital and assets prevented existing programs and services. Indigenous
participation in public works. The Australian communities and entrepreneurs struggle
Government also supports registration and to navigate the range of business support
matching through Supply Nation, a non- available. Often this results from programmes
profit entity. As this market matures, better and services being delivered by different
support is needed to support firms at key intermediaries (Commonwealth and State
transition points. Improved market efficiencies agencies, local government, and not for profit
can happen by simplifying in preferential entities) that do not have strong relationships
procurement rules and coordinating public with Indigenous communities, or consistent
investment between levels of government. presence in some places. Importantly, many
of these institutions are not Indigenous-led or
In remote regions, there are a number of owned, which means economic development
specific programme and implementation capabilities are not necessarily developed
challenges. Preferential procurement policies within communities.
are less effective in low-density economies
because of thin markets. Other types of
policy interventions, such as reforms to
Indigenous land tenure and building the
S elected recommendations for creating
an enabling environment for Indigenous
entrepreneurs and small business
2.5
capacity of local institutions to promote
community economic development, can Ensure that the Joint Council on “Closing
improve this. The Australian Government’s the Gap” Framework and associated
Community Development Programme (CDP) implementation arrangements include the
is the service for job seekers in remote following:
areas, to which a business incubator pilot
was recently introduced. However, this will Inclusion of Indigenous values and
not succeed without a local entrepreneurial perspectives about development, and
and business eco-system to support it, and the unique economic contribution and
these different elements are external to the strengths of Indigenous Australians.
programme (e.g. physical premises, mentors,
and financial intermediation). This approach Integration of the broad range of policies
also needs to recognise the different forms that support Indigenous business and
of entrepreneurship (not for profit and linked economic development (business support,
with traditional knowledge and cultural land use regulation and administration,
obligations). Finally, primary sectors in remote infrastructure, employment and skills, and
areas (mining and resources, farming, and local institutions).
fisheries and aquaculture) are capital intensive,
and Indigenous groups tend to lack the capital Identification of different forms
to participate as equity partners. This reduces of Indigenous business (individual
incentives for economic development and the entrepreneurs, community based
opportunities for Indigenous Australians to enterprises, and social enterprises) and the
benefit from it. differences across territories.
10Policy Highlights
Alignment of policy outcomes across Increasing strategic planning, capacity
levels of government and sectors, building and economic development
clarification of roles and responsibilities support for local Indigenous institutions.
across different levels of government
(including local government). Consider support for the establishment of
Indigenous-owned local financial institutions,
Ensuring that evaluation frameworks including:
disaggregate outcomes across different
types of regions. An initial capital injection from
government and ongoing funding to cover
Increase opportunities for Indigenous-owned a proportion of operational costs.
businesses in the public procurement market
by: Developing partnerships with mainstream
financial institution and philanthropic
Harmonising Indigenous procurement foundations to increase the potential pool
rules across jurisdictions (e.g. setting a of capital available to Indigenous financial
common target and timeframe, thresholds institutions.
for direct negotiation/ set asides, and
requirements for suppliers).
Providing more effective support for
entrepreneurs and small businesses to
participate in public procurement (e.g. pre-
establishment and establishment phases
to access finance, insurance and required
certifications, cash flow management,
business strategy).
Improve opportunities for Indigenous-led
economic development on traditional lands
and in remote regions by:
Prioritising implementation of
recommendations identified in the 2014
investigation by COAG on Indigenous land
administration reform and use allowing
traditional owners to generate economic
development opportunities (within the
framework of the Joint Council).
Strengthening the Remote Indigenous
Business Incubation model, by ensuring
this pilot has the elements in place to
support entrepreneurial ecosystem.
© OECD 2021 11Linking Indigenous Communities with Regional Development in Australia
3. Implementing a place-based approach
to economic development that empowers
Indigenous Australians
3.1 A place-based approach requires a long-term
commitment to strengthening Indigenous
capacities to promote economic development
strengthening co-development institutions
required for community economic
development. These intermediaries include
at the local level regional advisory services (that can provide
technical assistance and policy advice),
Local Indigenous institutions are the Indigenous research institutions (that can
foundation of this place-based approach, build a body of knowledge, produce data,
however; capability gaps reduce their and promote knowledge-exchange), and
effectiveness. There are a multiplicity of community brokers (who can coordinate
local Indigenous institutions across Australia. and build linkages to access resources).
These include Indigenous municipalities, Governments at all levels need to consider
Indigenous corporations and co-operatives, how they can use policy, grant funding,
and PBCs. Local institutions are important for coordination, facilitation, and service design to
community economic development because strengthen this eco-system.
they facilitate negotiation and dialogue and
activate development processes. Often, local
Indigenous institutions are unable to fulfil
these functions because they lack own source
G overnment needs to facilitate economies
of scale and shared decision-making for
local Indigenous institutions
3.2
revenues, have restricted mandates, and do
not have the right mix of skills and capabilities. Local Indigenous institutions also require
Capability gaps include leadership, community mechanisms that strengthen regional
planning, technical skills (e.g. finance and legal), partnerships to build scale, access ideas
and business and commercial skills. Current and resources, and mobilise investment
capacity building support is insufficient to opportunities. Frequently, local Indigenous
address critical gaps. institutions do not have the scale or scope
to address complex economic development
Strengthening the ecosystem that supports issues. Furthermore, connections with
these local institutions will enable them institutions that shape local and regional
to take a leadership role in economic and development policies are lacking. This results
community development. Currently, capacity- in inconsistent links with:
building programmes target individual
institutions while economic development Local governments with responsibilities
programmes focus on individual firms. in areas such as community planning,
More consideration needs to be given to local economic development, local
12Policy Highlights
infrastructure, and service provision “Closing the Gap” provides an opportunity to
(noting these operate under different develop a more coherent and comprehensive
States and Territory legislative national policy framework for Indigenous
frameworks). economic development, which can be used
as a basis to better coordinate action at the
The Australian Governments RDA local level and shift to a longer-term funding
Committees that undertake regional approach.
strategic planning, identify and facilitate
projects, disseminate information about
government programmes, and inform
government of regional priorities.
S elected recommendations for implementing
a place-based approach to economic
development that empowers Indigenous
3.3
Australians
The Regional Network of the National
Indigenous Australians Agency (NIAA) has Strengthen the capacities of local Indigenous
the potential to play a stronger role in institutions to promote community economic
implementing a place-based approach. development by:
The NIAA is shifting towards a more place-
based approach focussed on working with Consolidating existing funding support for
local communities to identify opportunities institutional capacity building into a single
and bottlenecks, and coordinating within programme (alongside the other 5 themes
government, private and philanthropic sectors of the Indigenous Advancement Strategy).
to address them. Yet, the staff in the regional
network do not have sufficient capability Increase funding to address capability
and tools – such as entrepreneurial skills, gaps and re-focus support on
community planning frameworks, and budget strengthening institutional capacities that
flexibility – to implement this place-based address these gaps (leadership, technical
approach and adjust for diversity of conditions skills e.g. finance and legal, and business
across Australia’s First Nations. and commercial skills) at critical points
in the lifecycle (e.g. pre-establishment of
A place-based approach requires governments PBCs).
to facilitate opportunities for meaningful
participation, coordinating and aligning Expand the range of institutional capacity
policies, and investments at the local level. building activities including support
Without a formal representative institution for community planning, business case
of Indigenous Australians, the quality of development, and local area data.
engagement and consultation with them
is inconsistent across Commonwealth Strengthen the role of Indigenous-led
departments and agencies, and between third party organisations in delivering
levels of government. Over the last two programs including support to develop
decades, there have been many changes to guidance, share good practices and
organisational structures in Indigenous Affairs. lessons, and coordinate local efforts.
The institutional landscape at a local level
is complex and small scale with ad-hoc and
inconsistent support. The Joint Council on
© OECD 2021 13Linking Indigenous Communities with Regional Development in Australia
Build scale in Indigenous community and The NIAA taking a whole of government
economic development by: leadership role in monitoring consultation,
promoting best practices, and delivering
Working with local governments on training and guidance.
developing good practice guidance, tools,
and leading practices on the role of local Establishing a model for shared local
government in Indigenous community and decision-making through the Joint
economic development. Council on “Closing the Gap” that enables
agreements on local area outcomes
Consider adding Indigenous economic and pooling of budgets between levels
and community development to the RDA of government to support Indigenous
Charter, and sharing best practices on how community and economic development.
RDAs work with Indigenous communities.
Including regional scale collaboration as a
criteria in relevant programme streams of
the Indigenous Advancement Strategy.
Embed a place-based approach in the
operational model of the NIAA regional
network by:
Re-scoping roles, training and mentoring
to develop entrepreneurial skills and
capabilities for staff (i.e. Community
development, stakeholder engagement,
data analytics and business support)
Delivering guidance, tools and material
to support community planning for
Indigenous groups, and providing
resources and expertise for Indigenous
organisations to develop and use data.
Improve the inclusion of Indigenous peoples in
Australian Government decision-making and
reform multi-level governance and funding
arrangements by:
Developing a common framework and
good practices for consultation across
Australian Government departments and
agencies.
14Policy Highlights About the OECD The OECD is a unique forum where governments work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. About the Centre for Entrepreneurship, SMEs, Regions and Cities The Centre helps local, regional and national governments unleash the potential of entrepreneurs and small and medium-sized enterprises, promote inclusive and sustainable regions and cities, boost local job creation and implement sound tourism policies. About this Policy Highlights This booklet reproduces highlights from the Linking Indigenous Communities with Regional Development in Australia report. Find out more about the OECD work on regional and rural policy: http://www. oecd.org/regional/rural-development/ Photo credits Cover illustration graphic elements © Martha Lee Cover photo © Getty / PomInOz © OECD 2021 15
Contact us
José Enrique Garcilazo
> joseenrique.garcilazo@oecd.org
Full report
> https://oe.cd/pub/3wY
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