Executive Summary

Introduction

In the fall of 2002, the governments of Canada and Saskatchewan signed the Northern Development Agreement (NDA), with the people of northern Saskatchewan as program partners.  The intent of the Agreement was to enhance the economic opportunities available to Northerners through training, employment, innovation, business development, infrastructure enhancements and investment in northern communities.  A $20 million commitment, over five years, has been shared equally by each of the provincial and federal governments.

The NDA has implemented a unique approach to program administration and governance.  As part of the Agreement, northern people have been represented by the Northern Development Board Corporation (NDBC).  The Board provides administrative functions as well as advice during the screening, processing and selection of appropriate projects for northern economic development.  Involvement of Northerners in the design, planning and implementation of the NDA has been an important operational principle.

Now, after five years of the NDA, the Agreement is being evaluated to determine whether there is a continued need and rationale for the program, what success and impacts have been achieved and how effectively the program has been administered and implemented.  This report highlights the evaluation results.

Evaluation Methodology

The primary tools used to complete this program evaluation included; document and file review; key informant interview program (total of 18, federal, provincial, and Northern representatives), a survey of successful (20) and unsuccessful (8) fund applicants, a survey of individuals who have participated in NDA funded training (18); and, consultations with the NDBC and TMC.  The evaluation was conducted from November, 2006 to March, 2007.

Evaluation Findings

Program Relevance

Several indicators point to a continued need for economic development programming and funding in northern Saskatchewan.

Below Average Economic Conditions - Employment rates, standards of living and business opportunities in the north lag significantly behind the economic opportunities that the southern portion of the province is exposed to.   A move toward more equitable conditions is a desired goal.  Northern populations are growing, with nearly half (43%) of the overall population under the age of 20.  Unemployment in the northern administration district is approximately 24%.  This evaluation has identified that the NDA is an appropriate tool to facilitate economic development through training, employment and infrastructure investment.

Local Stakeholders Identify Continued Need – All NDA program applicants, the NDBC and the majority of key informant interviewees, reported that there will be an on-going need for economic development tools and support initiatives in northern Saskatchewan.  The need for infrastructure advancements, employment opportunity, community capacity building and other economic development supports will be needed in order to assist northern communities as they grow.

Future Growth Opportunities – Economic trends in the province suggest steady overall employment growth with significant demand for employment in the resource sector.  Strategic investment and increased activity in the oil and gas and mining sectors suggest that there will be an on-going demand for economic development activity that includes employment and capacity building in some northern communities.

Northern Development is Just Beginning – Northern communities are in the early stages of identifying economic development opportunity and are just beginning the process of developing the human capacity to respond to economic potential.  Building northern human resource capacity has been initiated under the NDA, however there will continue to be a significant need for Northerners to learn and apply their economic development skills.

Program Results

It is important to note that economic development often requires a significant amount of time to elapse prior to the results being evident.  Results often are not seen for five to ten years, or more.  Therefore, significant program results may not be realized in the short term.  In the case of the NDA, many of the funded projects have had less than five years to generate results and/or impacts in northern communities.  In fact, many projects have been funded within the last two years of the program, rather than in the first year or two, so these projects will have had even less time to generate results.   Even so, there are early indicators that benefits, outcomes and important results have been achieved.

Tripartite Governance Structure Established - A significant accomplishment of the NDA has been the implementation of a newly created "tripartite governance approach" Northerners (First Nations, Métis and non-Aboriginal) have worked together within one organization, the NDBC.  The NDBC has worked in cooperation with the governments of Canada and Saskatchewan to administer and manage the delivery of the NDA.  As a result, each individual group"s agendas were set aside in order to advance the goals and objectives of economic development for all Northerners.

Training, Employment and Capacity Building Enhanced - A significant number of NDA projects (32/42, 76%) have focused on capacity building, training and employment, representing 63% of the total funds allocated to date.  The result has been that approximately 580 people will have received training at the conclusion of the NDA, and a large proportion of the trainees will have acquired employment.

Key Infrastructure Constructed - Significant improvements have been made to the Athabasca Road which will contribute to the connection of northern Saskatchewan and northern Alberta.  High speed, broad-band Internet connections have been provided to thirty-five (35) northern communities. These two major infrastructure projects will influence future development and community lifestyles far into the future.

Investment and Innovation Unaffected - Although the NDA established "Investment Attraction" and "Innovation" as Strategic Priorities, the program did not make significant advancements in these areas.  In part, this was due to the fact that few proposals were submitted within these priority areas and, in part it was due to the inconsistencies between the goals of the NDA and the funding criteria used by the federal and provincial governments. The funding criteria did not allow governments to support proposals from "for-profit" groups. In reality, the for-profit sector participants are key generators of economic development.

Program Design and Delivery

Cost Effectiveness - The NDA has been delivered in a very low cost manner.  The NDBC received $150,000/year (cost-shared by federal and provincial government) to cover the costs associated with a full-time Executive Director, office space and operating expenses, and the meeting costs of the NDBC.  Federal and provincial governments contributed approximately 0.5 full-time equivalent (FTE) positions towards the operation and administration of the program.  The province also provided administrative time from the seven provincial funding departments who were responsible to establish and administer contractual agreements with NDA project proponents.

Although this approach to program operation was cost-effective, it did not provide enough resources for NDA administration to be proactive in seeking out strategic projects and/or to assist communities in their efforts to prepare quality proposals. One of the goals of the NDA was to build the capacity of Northerners. Stakeholders agree that Northerners need to learn how to assess economic development potential, prepare a strong business case, and formalize their business concepts into a quality funding proposal.

Program Funding – The NDA Agreement outlines a cost-share of $10 million for each of the federal and provincial governments.  The federal government sourced their contribution from the Western Diversification Fund (WDP), while the province generated their share from the existing budgets of seven different Departments.  As a result, projects had to fit within the parameters of the NDA, and then be scrutinized under the funding criteria of each individual department involved. This funding structure resulted in administrative inefficiencies, time consuming project review and funding decisions, and served to restrict the projects that could be funded within the NDA program.  The funding criteria within the WDP, and that is used within the provincial departments, has not always been consistent with the goals and objectives of the NDA.

Governance - The Tripartite Governance approach has been considered to be a ground-breaking method to the administration of community-based economic development.   There is no doubt that involving Northern people in the identification, development and implementation of economic development projects is praiseworthy.   However, adding another constituent to the project selection and approval process has resulted in significant delays and in lower applicant satisfaction.   Multiple department interests, separate due-diligence activities and internal government procedures have also contributed to time consuming decision-making.

The NDBC has reported frustration with their role within the Tripartite NDA administrative approach.  As an Advisory Board, the NDBC does not feel that they are a "decision-making" body and they are unsatisfied with their level of influence on the decision-making process.

The NDBC is made of representatives from several northern groups and organizations, such as the Tribal Councils, cultural groups, etc.   The original make-up of the NDBC was predicated on the expectation that Board members would fill the role of providing guidance and strategic direction for the NDA.   However, in future, a more proactive, interactive and community-based economic development NDBC role will be necessary to advance the NDA"s goals and objectives.  Therefore, the future make-up of an NDBC working group can be made up of individuals with practical economic development experience.  These individuals will interact with communities to assess, develop and bring forward economic development proposals that fit within the mandate of the NDA.   An NDBC working group can be made up of economic development officers who are currently employed within northern communities.   Existing NDBC membership could continue in an advisory capacity to develop the Strategic Economic Development Plan for the North, on an annual or bi-annual basis.

Future Considerations

The findings resulting from this evaluation provide important feedback to project managers and administrators.  These findings can be used to make adjustments to the NDA, in order to enhance the achievement of goals and objectives, and to influence the design and delivery of similar programs in the future.  By reviewing interview notes, document and file research and analyzing the evaluation results, a number of important themes and considerations for the future have been presented.

Theme 1

Future Economic Development Investments - Strategically Targeted at Key Sector Development

When reviewing the original documentation related to the NDA (NDBC Strategic Plan, Northern Development Accord, and the Northern Development Agreement) it is clear that there was a significant desire to advance economic development in key sectors of the northern economy.  It was anticipated that advancements would be made in mining, forestry, tourism, and in small business development.  In reality, the NDA has invested primarily (63% of funding) in training, employment and capacity building.  Although these areas are important to northern economic development, it was not anticipated that training and employment investments would be the primary focus of the NDA funds.

Recommendation #1

Establish a stand-alone fund for the Northern Development Agreement, with funding criteria that matches the goals and objectives of the Agreement.  In order to attract investment, encourage innovation, and to focus on the key economic sectors, future project selection criteria will need to include applications from for-profit, private sector, groups which can benefit and contribute, as these are the engines of future economic development and growth in the North.   A single stand-along fund would make strategic investments and alleviate administrative inefficiencies associated with finding an appropriate funding source.

Recommendation #2

Create a coordinated Strategic Plan for the North that identifies sectors with potential for strategic investment. Involve northern communities, northern leadership, and public and private sector representatives with an interest in northern development.  In order to build consensus and to involve a wide range of Northerners and individuals interested in Northern Development, it may be necessary to coordinate a Strategic Planning process on a annual or bi-annual basis that can refocus future efforts and investment policies. Involvement in the Strategic Planning process is an appropriate role for the current NDBC.

Theme 2

Training, Employment and Capacity Building Continue to be Important to Northern Development

The majority of the projects accepted and funds allocated within the current NDA can be classified as Training, Employment and Capacity Building initiatives.  The NDA has demonstrated that there is a strong demand for programming that focuses on these areas.  Although these human resource categories are a component of economic development, the NDA was also designed to attract investment, to advance economic infrastructure and to support innovation and research. 

Recommendation #3

Create a separate "Training and Capacity Building Program" that focuses on localized, northern Saskatchewan training opportunities, human resource development and employment generation. The management and administration of such a program could be placed within federal and provincial departments that identify human resource capacity building as their specific mandate.  (i.e. Service Canada, Saskatchewan Learning)

Recommendation #4

Ensure that training, education and employment project contracts incorporate a participant follow-up requirement that tracks employment results.  Currently, there is limited ability for the NDA to determine whether the significant investment in Training, Employment and Capacity Building has resulted in long-term employment opportunity for Northerners.

Theme 3

Service Standards Required to Standardize the Delivery of the Northern Development Agreement

Project applicants report that their satisfaction with the NDA program administration is low.  In large part, this is due to poor communication and slow project decision-making procedures.  Some of the proponents suggest that standardized timelines, templates for reporting and consistent procedures would improve their experience with the NDA.

Recommendation #5

Establish a set of "Administrative Performance and Service Standards" that outline timelines for project selection, proponent communication, payment procedures, reporting templates and contracting standards.

Theme 4

Adjust the Roles and Responsibilities of the NDBC

The NDBC is an important resource for the NDA.  The NDBC represents an important step to more effective inclusion of Northerners in the process of economic development in northern communities.

Recommendation #6

Include organizational representatives (current NDBC Board structure) in the annual/bi-annual creation of a Strategic Investment Strategy for Northern Saskatchewan, but not in the NDBC"s day-to-day working operations and functions.  There is a role for political leaders and cultural leaders in the development of a Northern Economic Development Strategic Plan.

Recommendation #7

Provide greater support to communities in the assessment of economic opportunity and development of strategic economic projects.  Involve individuals who are currently employed as economic development officers in northern communities, to support the NDBC"s day-to-day operations and functions (i.e. project review, due diligence, community awareness building, proposal preparation, strategic advisory support, etc.). Individuals currently employed by northern communities would not require honoraria, thus reducing the NDBC"s operating costs.  Cost savings could be used for NDA administration to become more involved in proactive support for economic development projects and for community-based workshops, seminars and planning activities.