Federated Cooperatives Limited is giving $1 million to the University of Saskatchewan with the goal of stimulating Aboriginal business development in rural parts of the province.
The company and university hope by using the cooperative business model, existing gaps in services can be filled.
Speaking at the announcement in Saskatoon Wednesday, Treaty Commissioner George Lafond says the Aboriginal and non-Aboriginal communities in rural Saskatchewan need to work together to meet current economic development challenges.
“In fact, we have very little social capital on this issue,” he says. “I’ll say that as a treaty commissioner because we have to recognize our collective past but also our collective future, our tie to each other.”
Federated Cooperatives CEO Scott Banda adds the cooperative model takes a longer term and more local approach to business development which will hopefully address some of the existing gaps.
“Our shareholders are here, they’re right here in Western Canada, they’re not transient, they’re committed to their communities,” he says. “So, it’s that local piece and stable piece that allows the co-op model to plan.”
The project will be led by the U of S’s Centre for the Study of Co-operatives.
Other partners include the Johnson-Shoyama Graduate School of Public Policy, International Centre for Northern Governance and Development, the Edwards School of Business and UK Plunkett Foundation.
Murray Fulton, a professor at the Johnson-Shoyama Graduate School of Public Policy, says use of the cooperative business model could result in a number of economic developments.
“There might be a community that doesn’t have a grocery story and this would be an obvious one,” he says.
Director of the International Centre for Northern Governance and Development Ken Coates adds overall both Indigenous and non-Indigenous communities in rural Saskatchewan face a unique set of economic development challenges.
“When you get into smaller towns – it’s not so much that they are Aboriginal – they are isolated, they are small populations, there’s uncertain economic activity,” he says.
As part of the project, Coates says graduate students will be going out and speaking to various rural Aboriginal communities to identify what their economic development needs are and how they may be met.
The funding will be distributed over two years with the possibility of extension.