Evaluation of the Northern Aboriginal Economic Opportunities Program 2016-17 to 2020-2021 - Summary Report
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Overview of the Program
The objective of NAEOP is to maximize economic opportunities for Indigenous communities, entrepreneurs, and businesses in Canada’s territories. NAEOP is made up of two program funding streams:
- Community Readiness and Opportunities Planning (CROP) stream for First Nations and Inuit communities and organizations to help them plan for and participate in economic opportunities.
- Entrepreneurship and Business Development (EBD) stream to support Indigenous entrepreneurs to establish or expand their businesses.
Budget (contributions): $10.8 million/year.
Overview of the evaluation
In accordance with the Treasury Board of Canada Secretariat’s Policy on Results (2016) and the Financial Administration Act (FAA) requirements, this is the second evaluation of the Northern Aboriginal Economic Opportunities Program (NAEOP). This summative evaluation was conducted to:
- Ensure program delivery aligns with the needs and expectations of Indigenous Northerners;
- Identify areas for improvement moving forward;
- Meet Government of Canada accountability requirement around assessing relevance, effectiveness, and efficiency for contribution programs.
The evaluation of the NAEOP was undertaken by an external consultant and Canadian Northern Economic Development Agency (CanNor) personnel between October 2022 and April 2023 and examined the 2016-2017 to 2020-2021 fiscal year (FY) period of the Program.
A variety of methods were used to access the Program, including the following two lines of evidence:
Document and file reviews
The evaluation was examined using the following program information and data. This included:
- Program documentation, previous studies and evaluations, financial and statistical information, program terms and conditions, program guidelines, administrative manuals and guides, and information posted on CanNor’s and other Government of Canada websites.
Interviews
64 potential interviewees were identified. 26 interviews were completed of the 32 scheduled. Some interviewees did not attend the interview. Adapted interview guides for each stakeholder were developed to provide a more focused effort tailored to the individual(s) being interviewed.
What the evaluation found
Relevance
The NAEOP program continues to be relevant and aligns with the Government of Canada commitment to support economic development and job creation for Indigenous Peoples.
The Program is necessary due to increased timelines and business costs in the North, with some stakeholders stating that they would not be able to conduct their project or work without the funding received through the Program. The Program plays a critical role in enhancing the well-being and quality of life for Indigenous businesses, communities, organizations, and individuals in the territories.
However, the Program relies heavily on the existing nation-to-nation relationships. There is a perception that there is a lack of ongoing coordination among federal and provincial jurisdictions, leading to confusion regarding what services are to be provided, at what service levels, and what legislation applies. Both Service Delivery Partners (SDPs) and CanNor program officials acknowledge that gaps created by jurisdictional conflicts contribute to the economic disparities (e.g., high unemployment, lower income levels, lower levels of education, poorer health, and inadequate housing) among Indigenous Peoples in Canada. Additional work is needed to improve program delivery for funding recipients.
Effectiveness
Based on current data available, there is evidence that the Program has made progress towards its short- and medium-term outcomes. Key informants highlighted the positive impacts the Program had on launching businesses in northern Indigenous communities. This includes, but is not limited to, using NAEOP funding to engage in establishing partnerships, conducting preliminary studies, or other economic development project preparation/readiness work. However, it is unclear if there has been a long-term increase in program effectiveness as it is too early to determine at this stage. Key risk areas that may impede or delay the achievement of targets include data collection and interpretation, individual choices, and cultural differences.
Potential improvements were identified in the areas of funding levels, application processes, outreach, reporting, and understanding local communities. Coordination and collaboration of funding across federal departments are also needed, and external factors such as inflation or policy changes should be recognized.
Moving forward, there is a need to define what success and progress means in the context of economic development for northern Indigenous communities, as well as to quantitatively evaluate the performance of the Program itself. This may include improving data collection tools and metrics of performance to gain a deeper understanding of the Program’s impact on demand and quality of services provided to northern Indigenous communities, organizations, and businesses.
Efficiency
The evaluation found that of the available information, there is evidence that NAEOP is making progress towards achieving its intended outcomes at present. The Program reported that all 73 communities in the territories (15 in Yukon, 33 in Northwest Territories, and 25 in Nunavut) received NAEOP funding (via contribution agreements) between the FY 2016-17 and FY 2020-2021 period. However, based on interviews, there is room for improvement in consistent reporting, enhancing capacity for local economic development, and facilitating greater access to commercial financing.
The evaluation team was unable to get a clear idea of whether there had been a measurable increase in the efficiency of the Program delivery over the medium- and long-term.
Recommendations
The evaluation team has made the following three (3) recommendations for the Program going forward:
- Recommendation 1: Develop a strategy that identifies potential opportunities for economic development, which includes identifying areas where there is a potential local demand for services that could be met by local resources with support from the Program. This strategy can then be made available to applicants as potential types of projects that would be eligible for funding from the Program.
- Recommendation 2: Work with communities to develop communications strategies to improve awareness, coordination, and communication with federal/territorial economic development services.
- Recommendation 3: Review the current levels of funding available to recipients of funding to ensure that contributions and funding awards reflect the impacts of inflation and the actual costs of doing business in the North.