Country : Republic of Seychelles

Committee : The Economic and Financial Committee (ECOFIN)

Topic : Inuit Communities: Balancing Traditional and
Modern Economies

The rapidly changing Arctic environment brought new challenges and opportunities for indegeneous
communities. Due to the ever expanding reach of global demand for resources, public and private
actors directly and indirectly influence policies that benefit their interests while often sidelining the
importance of involving people who have been living in the region for centuries. An example of such
policies is when the Canadian National Energy Board approved without prior FPIC (Free Prior
Informed Confirmed) an offshore seismic survey that may harm maritime mammal life important to
coastal Inuit fishing activities back in 2014.1 Only overturned after a legal battle initiated by the
community, the incident highlights instances where Inuit were not given a voice in decision making.
As one of its oldest inhabitants, the Inuit way of life and well being were shaped and tied to the Arctic
and Subarctic region. Although some might see foreign investments and subsequent industrialization
as beneficial by providing working opportunities and the building of infrastructure, the Republic of
Seychelles believes that a sustainable economic model that respects the traditional Inuit cultures must
first be prioritized to ensure that the Inuit are not deprived from their means of subsistence, traditional
economic activities, and cultural wisdom. This perspective is in line with both the United Nations
Declaration on the Rights of Indigenous Peoples (UNDRIP) and the Circumpolar Inuit Declaration on
Resource Development Principles in Inuit Nunaat.
Despite the vast distance that separates Inuit and Seychellois Creole, both communities share
similar economic challenges and might benefit from each other's experience. As one of the SIDS
(Small Island Developing States), the impact of overexploitation and climate change is one of
Seychelles primary concerns. With local economies heavily relying upon tourism and maritime-based
resource extraction, massive industrialization in the Arctic may devastate the island nation. Using the
HADCM3 climate prediction model, it is estimated that 2040 will see an extinction of coral reefs in
Seychelles and other regions with similar climate.2 In addition, Seychelles geographic limitations
makes the island to have to consistently balance between the traditional economic model of extraction
and a more modern economic model that relies on tourism and limited scale manufacturing. Despite
this, the Republic of Seychelles has the highest GDP per capita in the region at $17,448 in 2019. 3
Seychelles achieves this by implementing a comprehensive community-based environmental impact
assessment and a highly selective Foreign Direct Investment (FDI) entry, which impose limitations on
types of activities that investors may be involved in. However, challenges such as short labour
shortage and youth migration remain to be overcome.
To address the issue of balancing between a sustainable modern economy and ensuring a robust
traditional economic activities, the Republic of Seychelles proposes SEA: ICED (Sustainable
Economic Activities: Inuit Centric Equitable Development).

- A scheme involving the Inuit community in investment projects environmental

assessment using metrics that are mutually agreed with the parties involved to ensure
sustainable living. In addition to such schemes, market regulations against traditional
inuit products are to be reviewed and gradually lifted. Furthermore, fair compensations
are to be made by investing in human development such as health and education
- Introducing a selective tourism model to limit the harmful impact of mass tourism and
involving Inuit communities in decisions that revolves around the sector

The Republic of Seychelles hopes that such solutions can be discussed upon and improved within the
assembly.

1
Payet, Rolph & Agricole, Wills. (2006). Climate Change in the Seychelles: Implications for Water and Coral Reefs. Ambio. 35. 182-9.
10.1579/0044-7447(2006)35[182:CCTSI]2.0.CO;2.
2
Seychelles. Seychelles - Place Explorer - Data Commons. https://datacommons.org/place/country/SYC.

3
BBC. (2017, July 26). Canada's Supreme Court halts seismic testing near Inuit hamlet. BBC News. https://www.bbc.com/news/world-us-
canada-4067757 8.