The social and economic problems facing Indian people in Canada did not emerge overnight. For more than 130 years, Indians have been segregated from Canadian society by the Indian Act. This archaic and paternalistic Act was drafted when Canada was an intolerant and racist nation. For example, women and Jews were not considered persons and did not have a right to vote. Visible minorities, including Indians, were often thought of as inferior.

But rather than treat all Canadians as equals in the 21st century (women, Jews, and visible minorities receive all the rights and responsibilities as any other Canadian citizen) Indians are still segregated from the rest of society based entirely on their ethnicity.

Fortunately there are no legal or constitutional barriers to ending federal jurisdiction over Indians, because the Constitution allows but does not require the federal government to legislate for Indians. Therefore, the federal government can abolish the Indian Act and its policies of segregation at any time. Unfortunately, it would appear the government of Canada is not prepared to eliminate the Indian Act anytime soon.

The federal government's proposed First Nations Governance Act merely props up the paternalistic Indian Act. The First Nations Governance Act will establish new rules for band elections, and financial accountability for Native bands. It is true, good governance, accountability and transparency are minimal requirements for Native communities to thrive; but they are not enough to ensure prosperity. The First Nations Governance Act does nothing to address the inequality suffered by Native Canadians living on reserves.

For example, land on an Indian reserve is treated differently than private property. The land which comprises a reserve is owned by the Crown and is controlled collectively by the Native band council, not by individuals. The communal arrangement imposed by the Indian Act, and continued by the First Nations Governance Act, is unfair and is the reason why many people in Native communities live in poverty.

The key to generating wealth and prosperity is easily identifiable individual property that can be leveraged for loans and wealth creation. Most Canadians can borrow against their own private property and thus capital is obtained to invest in new business ventures. Capital formation allows the expansion of the economy and accumulation of wealth. But without property as collateral, individuals on reserves have difficulty obtaining credit or doing deals with outside investors; therefore the wealth of the land is under-utilized.

If native communities are to become economically self-sustaining, the reserve land which is now held by the Crown should be transferred to individual natives living on-reserve, and to band members living off-reserve. It will be up to natives themselves to decide if they want to transfer the land into a communal arrangement or allow for the property to be owned and managed individually.

It is time the federal government moved Aboriginal policy from the 19th century to the 21st century and eliminated legislation and government policy based on ethnicity. Clearly, treating one group of Canadians differently is wrong both morally and intellectually. However, Canada continues to move down the path of further favouritism, balkanization and racism. If not reversed, this trend toward division, will only serve to weaken our cultural, political and economic fabric.