Poverty reduction plans are gaining momentum as provinces across Canada adopt their own strategies to reduce socio economic disparity.  Eradicating poverty is a lofty goal.  The multifaceted nature of poverty adds to the challenge, and requires multi pronged strategies that get to the root of the issue. Recognizing this challenge, Albertans have been working together to develop a solution and re-imagine the economic realities in the province.  The Action to End Poverty in Alberta Steering Committee is working to lead the development and implementation of a comprehensive poverty reduction plan for Alberta (Alberta, 2011).  To combat and devise an effective strategy to mitigate poverty, we must first understand the demographics of the low-income population. Socio-demographic trends over time indicate that there are particular cohorts of Edmonton’s population who are more susceptible including young people, women, lone-parents, recent immigrants, and Aboriginal people (Council, 2011).

The reality is that Aboriginal people in Edmonton continue to be overrepresented amongst the low-income population.  In many Edmonton neighbourhoods, over 50% of the Aboriginal population lives in poverty. The poverty rate amongst Aboriginals in Edmonton is 1.4 times higher than Alberta’s Aboriginal average and 2.5 times higher than the average for all Edmontonians.  Since 1981, the unemployment rate of the Aboriginal population in Edmonton has been consistently higher than the Edmonton average.

In October 2009, a Statistical Profile of Aboriginal Peoples Living in the City of Edmonton was prepared for Alberta Aboriginal Relations (Quinless, October 2009). The findings in this study reveal that the incidence of low income among the Aboriginal Identity population (38%) was much higher than the non-Aboriginal population (16.5%).  In 2005, the median income of the Aboriginal population aged 15 years and over in the City of Edmonton was $18,769 compared to $28,233 for the non- Aboriginal population (Canada, 2008). As of October 2011, the unemployment rate of all Aboriginal people in Edmonton was 13.0%, up from 9.3% in October 2010.  In contrast, the seasonally adjusted unemployment rate for all of Edmonton in October 2011 was 5.1%.  Unemployment and low employment incomes place many Aboriginal families in a precarious financial state.

According to the Edmonton Financial Literacy Society, Canada's Aboriginal community is more susceptible to low levels of financial literacy as they are disadvantaged due to generally lower levels of education, the presence of difficult socio-economic conditions and have a tendency towards tenuous relationships with mainstream financial institutions,” (Society, 2010).  The report Aboriginal Financial Literacy in Canada: Issues and Directions prepared for the Canadian Task Force on Financial Literacy in 2011 documented the many barriers and systemic issues that impact the degree of financial inclusion and level of financial literacy amongst the Aboriginal population (Collin, February 2011). These challenges mirror those of low-income people, but with additional cultural and structural barriers, none the least of is generations of exclusion from Canada’s financial institutions. Cultural barriers they face include language, values that affect financial decision-making and money management, non cash-based economies, lack of trust toward financial institutions. Structural barriers include the education, literacy and numeracy deficit, and the lack of access to basic banking services. 

Although urban Aboriginal populations may have greater access to banking services, it does not remove the financial challenges. Low-income urban Aboriginal populations are especially vulnerable to financial crises as a result of low financial literacy and immediate financial pressures. Aboriginal serving organizations operating in urban centres routinely assist clients suffering from the results of bad financial decisions or predatory lending practices like payday lenders, which conveniently locate their business in low-income communities.  To respond to this crisis, the Task Force Report called for culturally adapted and relevant training to improve financial literacy. 

In Edmonton, the Edmonton Financial Literacy Society (EFLS) works to deliver financial literacy education to over 1,600 people.  Their programming is aimed predominantly toward low-income clients, including Aboriginals, Recent Immigrants, and Youth  (Society, About Us, 2010).  EFLS strongly believes that understanding the experience of low-income individuals and incorporating local community knowledge and experiences are important in developing projects that meet the unique needs and challenges in the community.  The EFLS partnership model provides an effective way to achieve community driven responses, and to date has formed innovative partnerships with schools, trades programs and the Aboriginal community.  Their Managing My Soniyaw program provides effective approaches to support Edmonton's Aboriginal community in improving their money management skills to overcome systemic barriers such as housing affordability, debt reduction, long-term savings plans, and home ownership goals.

Increasing financial literacy of individuals living on low-incomes is an effective strategy to reduce poverty on a sustainable basis (Momentum, April 2010).  However a comprehensive strategy, including financial literacy training, will only be effective if the income gap is lessened, and employment outcomes are improved.  The ESPC’s recent report In This Together: Ending Poverty in Alberta, provides recommendations on how to achieve this.  For instance, the report suggests raising and indexing minimum wage, raising social assistance payments, and assisting low-income people by creating asset building initiatives (Council, E. S., November 2011).  The City of Edmonton has partnered with the federal and provincial governments to deliver the Aboriginal Work Partnership Initiative (AWPI), which aims to increase participation of Aboriginal peoples in the labour market by developing programs and partnerships that attract and engage Aboriginal people in the City's workforce.  Edmonton is heading in a positive direction toward creating a more inclusive city with equal opportunity for all residents.  Strong leadership, public support and awareness of the need for a strategy to reduce poverty are required to ensure that momentum is not lost.

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Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved.