Reservation poverty

The official poverty rate on reservations is 28.4 percent, compared with 12.7 nationally. About 36 percent of families with children are below the poverty line on reservations, compared with 9.2 percent of families nationally. Some reservations in Washington, California, Wisconsin, Michigan, North Dakota, South Dakota, Arizona, and New Mexico fare worse, with more than 60 percent of residents living in poverty. Income levels on some reservations are extremely low. Five of the lowest per capita incomes in the country are found on reservations. Allen, South Dakota, on the Pine Ridge Reservation, has a low per capita income in the country, at $1,539 per year. Overall, the per capita income of American Indians on Reservations is half that of all Americans. The median income on reservations is $14,097, compared to $41,994 nationally. == Poverty rates on the ten largest reservations ==

Figures from the 2000 census. == Deep poverty ==

The deep poverty rate of a population is the percentage of families earning less than half of the poverty threshold. For a family of four in 2010, the deep poverty threshold was approximately $11,000 or less than $3,000 per person. In the 1970s, poverty on reservations decreased by as much as 20 percent on many reservations. In the 1980s, however, these gains were lost, and rates rose to levels comparable to those in the 2000. Through 2016, though, rates again rose, and rates in 2000 were very close to those in 1969. Explanations for these fluctuations suggest a need for further research, and careful consideration of how data was gathered, to ensure that figures reflect true changes in poverty rates rather than changes in reporting. Changes in poverty rates on largest reservations ''Historical data not available for Uintah and Ouray and Tohono O'odham Reservations.'' Figures from Trosper (1996). == Historical factors ==

Early development Following the American Revolution, the United States' strategy for native relations was to purchase Native American land by treaties. The United States also sought to assimilate Native Americans. The reservation system was created following the expansion of the United States into tribal lands. White settlers were considered unable to live alongside native peoples, and so various treaties continually limited the lands Native people were "allowed" to inhabit. This effort started under the presidency of Andrew Jackson with the Indian Removal Act of 1830, which created the first reservations. As forced relocation progressed, many tribes lost access to tribal traditional lifeways, which centered around community living and hunting and gathering. During this violent period, tribes were often forced to move to geographic areas unfamiliar to them, most commonly from Eastern states to Western states. Reservations were created on lands that were deemed worthless to white settlers. Reservations were placed on lands considered resource deficient, unfit for agriculture or cultivation, and which were isolated from urban centers and transportation networks. Mainstream political discourse of this era favored removing tribes from areas populated by or desirable to the white population. Dawes Act era As the white population began moving West, into the land formerly assigned to tribes, government policy underwent a transformation. In 1887, the Dawes Act was passed. The Dawes Act represented a shift in federal policy towards American Indians. Forced assimilation took away the livelihoods of many Native people, without providing anything in its place. Tribal members were prohibited from making a living through hunting, fishing, and arts. Furthermore, native people who provided educational, religious, medical, and culinary services to their communities were replaced with non-native, government and Church-sponsored individuals. Self-determination recognizes reservations as sovereign nations within US boundaries, meaning they are able to make and enforce their own laws and regulations, are independent from states' laws and regulations, and must abide by most federal laws. Almost all boarding schools were eliminated and replaced with a combination of federally and locally managed day schools. Self-determination represented an important ideological shift in government policy, but did not change conditions of poverty and limited opportunities. Concentration Effects The history of the reservation system has resulted in concentrated poverty. Regardless of urbanicity, areas of concentrated poverty tend to have higher crime rates, underperforming schools, poor housing, poor health conditions, limited private services, and few job opportunities. In addition, residents of these areas must contend with a geographic separation from areas of opportunity. Sociologist Gary Sandefur has called reservations the "first underclass areas" because of their concentrated poverty, high unemployment, and low educational attainment levels. Sociologist Loïc Wacquant has described reservations as areas of "socio-spatial seclusion," where residents are corralled and isolated, and that the reservations were created to immobilize native peoples. == Employment ==

The official unemployment rate on reservations as of the 2000 census was 14 percent, but there is much variation. Reservations nearer urban centers, especially on the East Coast, tend to have employment rates similar to or higher than the national average. On many large, rural reservations, though, a majority of adults are unemployed or out of the workforce. On reservations in California, Oregon, Nevada, Arizona, Utah, Florida, Washington, New Mexico, Nebraska, Montana, and Alaska, reservation unemployment rates are above 25 percent. On some California reservations, the number exceeds 75 percent. Unemployment Rates on the Ten Largest Reservations Figures from the 2000 census. However, reservation residents rarely are able to meet the educational and requirements of jobs off the reservation, and in addition, often encounter discrimination from employers who are hesitant to hire reservation natives. The lack of formally educated, experienced workers and entrepreneurs also opens reservations up to exploitation from outside firms looking to capitalize on the resources of reservation land. Although this land is often incredibly isolated geographically and absent of natural resources or productive potential, some areas do hold potential for development. Such development, though, requires a substantial amount be invested at the onset to build necessary infrastructure. Tribes are at a disadvantage, not having the resources or specialists needed. As such, they contract development out to firms off the reservation, who keep a great majority of the profits. Although the tribe usually receives a nominal amount of profits, they lose the rights to their land and the potential for truly sovereign development. The rule of native lands by non-natives off the reservation is particularly prevalent on many large reservations in the Midwest and Rocky Mountain regions. Although the land provides opportunity for ranching, few reservation residents possess the capital required to raise cattle. Instead, they lease the land to non-native ranchers for minimal amounts. As the reservation residents do not have alternative ways of making money on the reservation, ranchers can drive the lease rates down to mere dollars a year. Education The boarding school system had the doubly negative effect of inadequately educating a generation of reservation youth while simultaneously fostering a resentment of formal education. As of 2008, there were only six banks and seven credit unions operated by American Indians on reservations. Without formal financial institutions, many reservation residents are unable to save or invest what income they do have, and do not have access to loans for homes, cars, or businesses. Due to the lack of commercial establishments, non-cash transactions are common on some reservations. Although a bartering system can function within the reservation community, it inhibits economic interaction with those off the reservation or on other reservations, meaning, non-cash economies serve to further isolate reservation residents from the national or global economy. Geographic isolation For employment, education, and financial opportunity, many reservation residents are expected to leave the reservation. However, reservations were placed intentionally far from urban centers, and many of the roads serving these areas are substandard. Many key roads were never designed or built for vehicular traffic. According to the Bureau of Indian Affairs, only 15% of the nearly 28,000 miles of reservation roads are in acceptable conditions and pass current safety regulations. A food desert is described as a low-income area with a substantial number of people who do not have access to affordable and healthy food options. 23% of Natives living on reservations are food insecure, with some reservations having as much as 50% of the people living with food insecurities. This means that the reservations are suffering from low-income and low access to food. Low access is described as 33% or more of the population living in rural areas where stores providing affordable and healthy foods are more than 10 miles away from their homes. However, barely one percent of reservation residents rely on any kind of public transportation. The lack of safe roads and adequate transportation further isolates reservation communities and strengthens the neighborhood effects of concentrated poverty. Isolation tends to lead to depression and poverty. With depression and isolation afflicting so many Native people, it is not surprising to see the rates for suicide and homicide correlating to the populations in poverty. The Indian Health Service found that in areas with high poverty rates, the percentage increases for suicide and homicide cases, the numbers decrease with a lower percentage of poverty. Problematic behaviors The rate of violent crime on reservations is more than twice the national average. Although not heavily studied, gang violence is a problem on the Navajo and Pine Ridge Reservations. Almost one fourth of a national sample of reservation residents report gang activity in their communities. The use of drugs, alcohol, and cigarettes on reservations is also higher than national averages. This is especially true among youth, with the rate of youth drug use among reservation populations more than twice that of the general population. The suicide rate among reservation residents is also twice that of the general population, and suicide is the leading cause of death on reservations among youth aged 15–24. == Government assistance ==

Types of assistance Reservation residents are eligible for all federal social assistance programs, including Temporary Aid for Needy Families (TANF), Supplemental Security Income (SSI), and food stamp programs. In addition, Food Distribution on Indian Reservations (FDPIR), often called "commodities," provides in-kind handouts of food. This program is the result of treaties established in the nineteenth and twentieth centuries that included provisions that the government would provide food and shelter for tribal members. Each reservation has a commodities office, from which monthly food supplies are given out. Unfortunately, this food tends to be nonperishable, heavy on simple starches, and nutritionally deficient, thus contributing to high rates of obesity and diabetes on reservations. Public assistance does not effectively reduce poverty on the reservation. Although it may keep many families from being completely unable to survive, it does not build economies, reinstitute cultural institutions, or create a source of pride for reservation residents. Researchers gathering data on American Indians rarely differentiate between reservation residents and non-reservation residents, even though there are huge differences in lifestyles and often much tension between the groups. Furthermore, the rural nature of many reservations, the lack of available contact information and telephone numbers, protective rules by tribal councils, and a distrust of outsiders present data collection challenges. Lastly, an overwhelming majority of research focuses on the Pine Ridge and Navajo Reservations, suggesting a need for more comparative analyses of conditions on individual reservations. Government Assistance on the Ten Largest Reservations Figures from the 2000 census. The Tanana Chiefs Conference of Alaska and the Lac du Flambeau Bank of Lake Superior Chippewa of Wisconsin have already included hunting and fishing as work activities for purposes of welfare distribution. In addition, locally controlled welfare programs usually mean much easier application processes and increased accessibility to offices, allowing a greater number of eligible individuals to become recipients. The amount of money made available to tribes is calculated from the amount that individual states made available to reservation residents in years prior. Unfortunately, many states did not educate reservation residents on procedures for applying for aid, meaning that the number of receiving individuals was less than the number of eligible individuals, and limiting the amount currently made available. Anti-poverty programs Across the country, individuals and organizations both on and off reservations are fighting to reduce the poverty discussed above. Most efforts have focused on gaming casinos, tribal economic entrepreneurship, and cultural revival. Environmental protection efforts Reservations in relatively close proximity to urban areas have become sites for waste treatment, storage, and disposal facilities (TSDFs), adding environmental degradation to the landscape of poverty. Living in proximity to high levels of pollution or industrial facilities has been linked to serious short-term and long-term health impacts. In what is perhaps the most negative use of Native American lands, the federal government has used reservations for nuclear testing and nuclear waste disposal. Uranium mining, uranium conversion and enrichment, and nuclear weapons testing have all occurred on reservation lands in the past century. After creating the Nevada Test Site on Western Shoshone lands in Nevada, the federal government tested over one thousand atomic weapons on Western Shoshone land between the 1950-90s. The Western Shoshone people call themselves the "most bombed nation on the planet." Similar activities happened on Paiute Shoshone lands as well. For Native American nations, environmental justice on reservations is more than the enforcement of equitable protection of human health and natural resources, it is also a matter of tribal sovereignty, self determination, and redistribution of power. The field of environmental justice (EJ) focuses on measuring and mitigating patterns of disproportionate exposure to environmental pollutants and health hazards, has been a useful ally for Native nations in the fight against environmental degradation on reservations. Over the past several decades, EJ communities, researchers and activists have used varied methodology to measure the disparate siting and long-term health effects of locally unwanted land uses, waste treatment facilities, and other noxious point sources of pollution in relation to communities of color and other socioeconomically disadvantaged groups. Native governments on reservations have used their legal "Treatment as State" status with the Federal government to mount EJ claims with the Environmental Protection Agency (EPA) in several cases to successfully legally push back against pollution and environmental degradation on their lands . However, many Native activists argue that a seat at the table "does not ensure a comparable serving of the environmental protection pie" == Influence of casinos ==

Indian gaming casinos are often considered a potential solution to reservation poverty. Because reservations are exempt from many federal and state regulations, including those prohibiting gambling, tribes are able to operate commercial casinos on reservations. These casinos can provide jobs on the reservation, attract tourists, and bring in money for tribes to fund education, health, and social service programs. The Ojibwe of Minnesota have built two schools, the Choctaw of Oklahoma have built a new hospital, and the Pueblo of New Mexico have rebuilt their water system, all using casino profits. Other tribes fund child and elder care programs, health services, fire and police protection, and housing development with gambling earnings. Casinos also provide much-needed job opportunities on reservations. In 1989, average levels of unemployment on reservations was above 30 percent. In the next decade, that rate dropped to 13 percent on reservations with casinos, while remaining stagnant on reservations without casinos. Casinos' impact on overall economic conditions, however, is limited. Through the 1990s, the number of reservation residents eligible for public assistance programs increased across most reservations. Although the rate of increase was slightly less on reservations that had casinos, the casinos were unable to reverse trends of worsening poverty. There are a number of factors explaining why casinos have done little to change living conditions on many reservations, despite the income they bring in. First, a relatively small number of casinos bring in the majority of casino income. In the 1990s, ten casinos brought in more than half the earned money, and 20 percent of casinos brought in more than 80 percent of earnings. Those that are most financially successful tend to be small reservations with relatively few inhabitants located near metropolitan areas that do not have as high poverty rates as larger, more rural reservations, which hold a much greater portion of the nations' reservation inhabitants. Many of the reservations facing the most dire poverty also are the most geographically isolated, meaning outside tourists rarely travel to the casinos. Instead, they are visited by reservation residents. Depending on the profit distribution plan of the tribe, this can result in a redistribution of income from many to a few, and a fractionalization of the reservation population between those who spend at casinos and those who earn from them. When reservation residents spend portions of their sometimes very sparse incomes gambling, casinos can serve to exacerbate rather than relieve conditions of poverty. Beyond initial investments, some casinos rely on outside management companies for day-to-day operations. Currently, fifteen percent of casino revenues go to such management firms. Beyond limited economic efficacy, casinos have faced criticism on cultural grounds. Some tribal leaders have raised concerns that gambling goes against cultural beliefs and values, and is not a solid cultural foundation for native economic development. Without culturally sensitive investment in education and job creation, they assert, conditions of poverty will not change. == Economic development ==

Some have suggested that private enterprise originating on the reservation is the key to poverty alleviation. Once a critical mass of business exists, jobs will be created. By keeping the circulation of money on the reservation, economies will grow. Currently, there are 236,691 businesses in the US owned by American Indians and Alaskan Natives, most located off reservations. Although 1.5 percent of the population identifies as American Indian or Alaskan Native, these businesses represent less than one percent of all businesses in the nation. Native-owned businesses tend to be very small, with only 10 percent of them having any employees, and only 162 having more than 100 employees. However, trends suggest the number of natively owned businesses is growing. The number has risen 18 percent in the past decade, and native-business profits rose nearly 30 percent. Some Native entrepreneurs have brought economic development to their reservations. Small businesses thrive on reservations throughout the country. For example, the Native American Natural Foods Company of Kyle, South Dakota, on Pine Ridge produces energy bars using buffalo meat and cranberries that are sold in gourmet grocery stores throughout the country. They serve as a model for other reservation-based businesses. An artists' cooperative on the Siletz Reservation in Oregon sells Native artwork and is staffed by young reservation residents, providing the artists with business and the employees with important work experience. In some areas, reservation residents have developed professional networks to share resources as they develop businesses. For example, four tribes in Oregon created the Oregon Native American Business and Entrepreneurial Network, which offers training to assist tribal members start, fund, and operate business ventures. The organization has assisted more than 10,000 individuals since its founding in 1993. Unfortunately, for every successful business, there are many that are not able to sustain themselves, and many more ideas without the resources needed to implement them. Alaska Native Corporations The federal government has taken an active role in fostering business on native lands through the creation of Alaska Native Corporations (ANCs). These corporations, created by the Alaska Native Claims Settlement Act of 1971, were created to settle land disputes with Alaska Natives. Rather than creating reservations, the government divided Alaskan lands into corporations, each of which owns a segment of land on which tribal members reside. In addition to owning tribal lands, these corporations have a business relationship with the government, who can contract with them for any number of tasks. Alaskan corporations have held federal contracts to deal with defense, sexual harassment regulation, and more. Such contracts have not brought substantial money or economic activity to Alaska. Frequently, large, non-natively owned corporations in the continental United States will subcontract with the Alaskan Native Corporations. Due to the circumstances of their creation, contracts with ANCs are free from much of the regulation conventional contractors face, such as requirements for competitive bidding and spending caps. As such, the subcontractors are able to avoid regulation, while only passing on a very small portion of funds to the native shareholders of the Alaskan Native Corporation. In practice, the Alaskan Native Corporation system has done little to reduce poverty among Alaska's natives despite its effort to provide tribes with opportunities for economic activity. Business challenges on reservations There are many challenges facing business leaders on reservations. As discussed above, the substandard educational system leaves many aspiring entrepreneurs without necessary skills to fulfill their visions. The concentration of poverty and geographic isolation of many reservations severely limits the human capital from which business owners may draw to develop their business plans. The lack of disposable income of residents, furthermore, leaves reservation businesses with a limited customer base, while the shortcomings of telecommunications technologies can prevent expansion beyond reservation borders. In addition to material challenges facing economic development, some have criticized the ideological view of business ownership and development as solutions to reservation poverty. These critics have stated that conventional capitalist business plans run counter to many Native traditions, which stress community and interdependence rather than individualism and competition. It is often noted that the reservation system needs change. Some have asserted that the entire system needs to be eliminated, but disagree on what should take its place. Anthropologist Shuichi Nagata has stated that both the reservations and modern American cities clash with traditional Native lifestyles. What is needed, he writes, is something separate from either that combines the cultural richness of reservations with the opportunity of contemporary urban centers. ==See also==