Institutional innovation in less than ideal conditions: Management of commons by an Alaska Native village corporation

Abstract

Alaska Natives have experienced less than ideal conditions for engaging in management of their homeland commons. During the first 100 years after the Treaty of Cession of 1867, Alaska Natives received limited recognition by the United States. The Alaska Native Claims Settlement Act of 1971 (ANCSA) was signed into law by President Richard Nixon after tedious negotiations by Alaska Natives, the United States Congress, and special interest groups. As part of the settlement, 12 regional corporations and over 200 village corporations were established to receive fee title to 40 million acres of land and a cash settlement of $962.5 million for lands lost. This arrangement has been considered by some as an act of social engineering to assimilate Alaska Natives into a capitalist economy. In spite of the goal of assimilation, Alaska Natives have utilized ANCSA to strengthen their indigenous identity and revitalize their cultural traditions. This paper examines the innovative efforts of Alaska Natives to successfully manage their commons despite the introduction of new and foreign institutions. Since the passing of ANSCA, Alaska Natives have cultivated good skills to navigate and modify legal systems and engage bureaucracies with considerable success. More than 36 years after the passage of ANCSA, most Alaska Native homelands remain intact in ways not previously imagined. Village corporations have used a number of legal methods to allocate land to shareholders, manage ownership of stocks, and contribute to the Alaska economy. ANCSA provided no special aboriginal rights for harvesting and management of fish and wildlife. Resultant rural-urban conflicts have been confronted with a novel mix of agency-Native cooperation and litigation. Although aspects of the arrangement are not ideal, the conditions are not hopeless. Our paper explores the hypothesis that while formal institutions matter, informal institutions have considerable potential to generate innovative solutions that overcome formal institutional shortfalls. We draw on the experiences of Native corporations in several regions of Alaska, with a focus on Bean Ridge Corporation (BRC), the village corporation which owns lands in and around the community of Manley Hot Springs, Alaska. Programs to distribute corporate earnings, address trespassing, and maintain cultural traditions are described.