Economic Development
8(a) Contracting: The federal government’s unique legal and political relationship with Native Americans is recognized in the U.S. Constitution, statutes, and Supreme Court decisions. The Native 8(a) program was created in order to promote the economic and political self-sufficiency of Native Americans and in furtherance of the federal government’s trust obligation. The program was also intended to remedy barriers to Native economic development that were created by past government policies. The 8(a) provisions have been an important tool to achieve social, educational, and economic goals. This is especially important for Alaska Natives, many of whom live in rural areas far removed from major industrial centers and markets. Native communities suffer from some of the worst poverty in this country, with unemployment levels up to 75%. Providing access to federal contracting opportunities to qualified Native companies provides critical incentives that stimulate economic growth in Native communities, provides economic opportunities for Native American businesses, and encourages entrepreneurship. Despite the Native 8(a) program’s success, there have been attempts in Congress to modify it without the benefit of Congressional hearings and without consideration of the federal government’s unique obligations to Native Americans and the economic benefits that federal contracting has provided to Native communities. The General Accounting Office is currently studying Alaska Native participation in the 8(a) program. AFN calls upon Congress to hold hearings both in Washington, DC, and in Alaska, after the publication of the GAO report and to examine the economic and social needs of America’s Native communities and the success of federal programs intended to address those needs. We strongly oppose any congressional amendment, regulatory changes or other means to diminish or abolish the current rights established in the federal procurement system allowing Native Americans to create economic opportunities in their communities.
Economic Strategies for Rural Communities: The increasing cost of fuel is resulting in higherand higher costs of transportation and shipping to rural and coastal communities, causing some providers of transportation and shipping services to stop providing services to these communities. The higher costs and the lack of competition are driving the cost of living in rural and coastal communities to levels that are not sustainable in the current rural economic environment. These higher costs further restrict small businesses and hamper efforts to increase economic opportunities. The spiraling high cost of living is resulting in the outward migration to Alaska’s urban areas, which puts higher demands on urban area infrastructure and services. It is in the interest of all Alaskans to have economically healthy rural communities. For that reason, AFN urges Congress to work with AFN and rural and coastal communities to develop local and regional strategies to bring economic growth and sustained job creation to Alaska’s rural villages.
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