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Northwest Economic Adjustment Initiative Assessment: Lessons Learned for American Indian Community and Economic Development

University of California, Berkeley

Jonathan Kusel

Sierra Institute for Community and Environment

Economic development interventions often do not account for the social, cultural, and political differences among populations being served. Factors that make economic development projects successful in Native American communities are not well known or adequately studied. Drawing on a capital asset framework and the governance hypothesis advanced by Cornell and Kalt, the authors analyze how six Pacific Northwest tribes applied Northwest Economic Adjustment Initiative funds to diverse projects, which strategies were successful, and why. The data presented show that culturally congruent, community-based projects that meet multiple tribal goals are particularly successful. The authors discuss the necessity of investing in tribal cultural, institutional, and social capital, the value of efficient tribal bureaucracy that maximizes the benefits of sovereignty, the particular importance of building outside entities' understanding of tribal legal and cultural differences, and how the initiative interfaced with existing tribal structures. They offer lessons learned for tribal economic and community development.

Key Words: economic development • Native American • community development • capitals framework • governance • cultural competence

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