Impact Of Modernization On Traditional Economies

The Aboriginal people are also known as the indigenous people in Canada. They are comprised of three groups known as First Nation, Inuit and Metis people. They were the first inhabitants of current Canada. They formed complex economic, social, cultural and political systems before the Europeans came to North America. The First Nations occupied south of the Arctic, Metis people are found in Ontario and the Prairie Provinces mostly, but are also found in other areas of Canada, while the Inuit people are found in the northern regions of Canada. The local and traditional economic systems of the indigenous people is known as Indigenous economies (Lang, Price, Pedersen, & Trovato, 2015). This paper will focus on the impact that modernization has caused to the on traditional economies of Canada’s Isolated Northern Aboriginal Communities and also look at the current economic status of Canada's Indigenous peoples in terms of employment or unemployment, income, educational attainment, and community well-being.


Impact of Modernization on Traditional Economies


In the past, Aboriginal economies greatly depended upon the availability and seasonal patterns of vital food origins geographically. These factors influenced their settlement size and duration, their interaction with other communities and division of labor between genders. This subsistence economy involved activities such as trapping, fishing, gathering, hunting and activities which provided income in terms of food, shelter, heat, clothing, plus other forms of survival goods and services. The indigenous economic activities were not meant for exchange of profits or competition but for the sole purpose of the individual, families and the community (The National Aboriginal Economic Development Board, 2015). The surplus was shared at ceremonies and festivals that promoted social cohesion of the community.  The indigenous economies focused on two primary principles, sustainability, and reciprocity. 


The first presence of the Europeans had very minimal disruption to the traditional economic activities of the Aboriginal communities, but over the past century, these changes have been dramatic. Due to the contact between the settler population and the aboriginal people, the subsistence-based economies went through irreversible changes (Lang, Price, Pedersen, & Trovato, 2015). These impacts of these were experienced differently by each region and by over time, they have very much been the same, slow yet consistent, from the informal-based economy to a capitalistic based form of livelihood. Three important factors contributed to this transition. They include the distinct evolutionary culture of each of these traditional societies, the magnitude in which the people were attracted into salary, money and market economy as well as the federal government’s involvement in the administration and support of the aboriginal communities. The formalization of the fur trade (acquisition and sale of animal fur) brought a significant change to their way of living. After this, their tradition of subsistence economy changed to market needs. This brought about a conflict between them on resource availability and territorial boundaries when it came to hunting and trapping.  The aboriginal societies became dependent on external markets and in return suffered from the destructive consequences of today’s capitalistic economies (Monique, 2016). One of the consequences was that they suffered from boom and bust cycles, where during the boom period, the economy grew, and jobs were plentiful.


The continued contact between the European immigrants and the high reliance on formal economy shortly led to the European claiming their lands and resources. Many of these communities found themselves economically vulnerable and disrupted as the settler economy continued to advance, while the fur trade declined. Their participation in the labor market was commonly sidelined and neglected. Up to this day, the effect of colonization has continued to impact the economic conditions of these communities.


Current Economic Status of Canada’s Indigenous People


            The polarity between the Aboriginal people and the rest of the country is still wide and continues to widen according to report by National Aboriginal Economic Development Board (NAEBD). In 1990, the board set its 2022 goal of social and economic equality that outlined some benchmarks of specific indicators including education, employment, housing and income (The National Aboriginal Economic Development Board, 2015). The rate of employment of the aboriginal community is 9.1 percent below the non-aboriginal employment rate. This was a slight improvement from the previous 8.9 (Roman, 2015). This shows that the unemployment rate of aboriginal people is higher as compared to the non-aboriginal people. Regarding income, the aboriginal communities make less as compared to the non-aboriginal people. This has improved slightly from 27.5 percent points to 33.4 percent points. When it comes to education, the high school completion rate has improved slightly as well to 20.6 points from the previous 18.5 points (Roman, 2015). Almost everyone finishes elementary school, a higher number attain secondary education, and just a small number get to achieve college or university education. The social conditions of the aboriginal people have improved due to access to high-quality services.


Conclusion


Modernization has made a significant impact on the traditional economies of the aboriginal people of Canada. The social conditions have improved as compared to the past, education and income levels have also increased significantly.


References


Baskin, M. (2016). Climate Change Related Impacts on Food Insecurity and Governance in the


            United States and Canadian Arctic (Doctoral dissertation, The George Washington


            University).


Lang, C., Price, J., Pedersen, A., Trovato, F. (2015). Economic Conditions of Indigenous Peoples


in Canada. Retrieved on 21st March 2018 from http://www.thecanadianencyclopedia.ca/en/article/aboriginal-people-economic-conditions/


Roman, K. (2015). Aboriginal Economic Development report Shows Little Progress. Retrieved on 21st


March 2018 from www.cba.ca


The National Aboriginal Economic Development Board. (2015).The Aboriginal Economic


            Progress Report 2015. Retrieved on 21st March 2018, from


            https://www.documentcloud.org/documents/2104954-naedb-progress-report-june-


            2015.html


           


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