This article originally appeared in Canadian Affairs.
By Douglas Lauvstad and Sheila North, May 30, 2025
In the first decades of the 20th century, the Hudson Bay Railway and Port of Churchill loomed large in Canada’s economic aspirations. This northern Manitoba transportation system was expected to deliver prairie agricultural products to global markets while opening the corridor to further resource development.
But the initiative failed, and east-west railway routes remained central to Canada’s economy.
However, times and technologies have changed, and a new economic order is emerging. This time, northern development will — and should — be different. This time, Indigenous peoples must be co-developers of provincial northern resources.
The northern regions of the provinces that sit directly beneath Canada’s three territories hold enormous economic promise.
Geologists sometimes say northern Manitoba hosts “herds of elephants” — a reference to the numerous multi-generational mines located close together in the area. The area is also home to one of the world’s most impressive hydroelectric capacities, making it a potential economic powerhouse.
And so it goes across the country.
Labrador has minerals and hydropower. Northern Quebec has massive hydro dams and mineral potential. Throughout northern Ontario, there are untapped rare earth minerals. Saskatchewan has world-class mines for resources like uranium. Alberta has its staggering oil and gas reserves. And British Columbia has massive natural gas deposits along with ready access to world markets.
While the region holds the key to Canada’s long-term socio-economic wellbeing, this reality is not currently reflected in the region.
Despite pockets of Indigenous prosperity, the benefits of resource wealth have flowed much more to the country as a whole than to the region that generated these revenues.
Mining and energy workers earn high wages, but many northern First Nations and Metis communities languish economically. Their lands are often devastated by past development projects, and their societies disrupted by the painful interventions of the Canadian welfare state.
Most of the Canadian communities still subject to boil water advisories are in the provincial North. These communities also face major housing shortages, and some of the country’s lowest average incomes. By all standard measures, the provincial North lags well behind the rest of the country.
It’s a painful situation that reflects poorly on the nation’s ability to care for its citizens. It is reasonable to expect that the residents of this region, too, should benefit substantially from its resources.
As the country seeks to boost its economy, natural resources development is drawing increased attention in the national conversation. As this discussion occurs, Canada must set high aspirations to address these shortcomings.
That is why consultative preparatory work between Canadian policymakers and northern Indigenous communities must begin immediately.
First Nations and Metis must determine if they are willing to accept resource and infrastructure projects on their territories. Without proactive engagement, Indigenous people will face enormous pressure to concede to federal and provincial demands for rapid economic expansion.
Communities, government agencies and post-secondary institutions need to develop training and workforce preparation programs. This is to ensure the Indigenous men and women in the region are trained for work in new and expanding industries, and also well prepared to protect the land, water and resources of their home territories.
Furthermore, First Nations and Metis governments must ensure their economic development corporations are ready to work with the incoming developers. They must also have strategies for ensuring profits are protected for the long-term benefit of northern communities.
Completing Confederation requires addressing the lingering problems of the past and seizing opportunities for a better collective future.
The Indigenous peoples of the provincial North are ready for a change that represents nothing less than the transformation of this region, and the re-imagining of the economic development of the Canadian North.
Douglas Lauvstad is president of University College of the North, and a contributor for the Macdonald-Laurier Institute.
Sheila North is former grand chief from northern Manitoba, and a contributor for the Macdonald-Laurier Institute.
