Billions Buys a Continuing Dependency
by Darrel Smith

    According to the Associated Press, tribal leaders don't think President Clinton's plan to increase Indian funding from 8.2 billion to 9.4 billion dollars is enough to meet their needs. In this country, there are approximately 2.4 million people who identify themselves as Indians. The Native American Press estimates that about 20% of that number, or about 500,000, are tribal members living on reservations where the vast bulk of the funds are directed. If we divide the 8.2 billion dollars provided last year by the 500,000 reservation tribal members, we find that last year the federal government spent almost 16,400 dollars per reservation tribal member or 65,600 dollars for a family of four.
  
These 65,600 dollars don't include any state and local expenditures or foundation grants. It doesn't include casino profits, which might almost double the 65,600 by themselves. It doesn't include profits from other tribally owned businesses such as stores, motels, gas stations, commercial fishing or farming enterprises. It also doesn't include income from timber leases, gas and oil leases, mineral leases, and farm and range leases. Added together, these income sources easily run well into six digits for a family of four. Of course, only a small fraction of this amount, some estimate around 5%, actually reaches the average tribal member on the reservation.
  
How can grinding reservation poverty exist in spite of such massive infusions of money? A recent study of 60 countries by the World Bank might provide some answers. The study called, "'Voices of the Poor' found that poor people were victimized by some of the very systems intended to ameliorate their lot." The President of the World Bank concluded, "pervasive and systemic corruption at the grassroots level on a global scale among civic and governmental organizations makes it very difficult to lift the congenitally poor out of poverty." He also said, "Corruption hampers economic growth, burdens the poor disproportionately, and undermines the effectiveness of investment and aid."  Does this sound familiar to anyone?
  
Most of this country enjoys a system of free, private enterprise that not only provides comfortably for the needs of the individuals and families involved but also provides tax support for governmental functions (including that 8.2 billion for reservations). In contrast, reservations have been saddled with a political and economic system that was purposely modeled after Communism. This typically includes concentrated governments that control both the political process and communally owned assets. In spite of, or perhaps because of, all the government "help" they receive, very few reservations have any hope of becoming self-sustaining. Very few even consider self-sufficiency a worthy and realistic goal.