Rose Role and Rationale

"Indian Territory", Michael Horse (Yaqui, Mescalero, Apache, Zuni)

Role and Rationale

1. The Rose Community Development Corporation is an Indian corporation, directed and managed by experienced, well-educated Indian people and guided by Indian community values. The Corporation is dedicated to the building of sustainable, self-sufficient, independent sovereign Indian nations, through the efficient allocation, concentration and preservation of Indian resources, by Indian nations for the use of Indian nations.
2. The Rose Community Development Corporation is assembling an advisory board composed of nationally recognized experts on finance, strategy and international business. This Board includes policymakers, business people and academics, all with extensive knowledge, grounded in real world experience. It is the function of the Advisory Board to complement and expand the knowledge base of the Corporation's Native American Board of Directors.
3. Rose Community Development Corporation follows the general approach to culture sovereignty and institutions developed by the Harvard Indian Project. However, Rose Community Development Corporation goes beyond the Harvard project by moving from a social theory orientation to the above-mentioned hybrid, blended value, and investment-driven model. In general, Rose Community Development's strategy is to create value for its clients, stakeholders, benefactors and other participants through the building of a new array of linkages and value clusters in Indian Country. In developing this array our goal is to create new opportunities for successful long-term businesses, in Indian Country, by drawing upon the economies of scale, scope and agglomeration, which are inherent in our business model. The natural extension of this process is the creation of a new, value-generating infrastructure, designed to achieve long-term value growth within and across Tribal Nations. As explained below, an important mechanism in this process is Rose Community Development Corporation's creation and management for Native Americans of the "hybrid enterprise space"
4. Within the hybrid enterprise space, Rose Community Development Corporation has built a new community economic development model which draws many of its most useful features from the system used to create the Japanese economic miracle in the decades following the total destruction of Japan's economy and productive capabilities in World War II. This model, which is more fully explained in the following sections, can most simply be described as a system which combines individual entrepreneurship with professional expertise and institutional guidance in order to build access to external technology, capital and labor markets. In the historical Japanese model, new technology was shared between corporate groups or Keiretsu, just as Rose envisions the "Cyber-Rez" as being a place for sharing information and technology across Tribal Nations. Rose Community Development Corporation, as its primary mission, offers Tribal Nations the opportunity to participate in this system by employing this expertise and allowing Rose Community Development Corporation to guide their investment and business policy in this new value creating fashion.
5. The goals of the system are community goals, but unlike the failed centrally planned economies of Eastern Europe and the former Soviet Union, this model encourages individual companies and individual entrepreneurs to achieve community goals. The encouragement, as will be shown, can take a variety of forms, including tax credits, loan guarantees and other mechanisms, all/most of which lower the cost of capital. The goals are community goals, but incentives are provided through Rose Community Development Corporation to encourage individual Native American entrepreneurs and companies to accomplish them, again feeding the overall value cluster without relying on a philanthropic or "donor" type model.
6. In the context of Rose's new model for Native American economic development, Rose Community Development Corporation is the direct agent of the Tribal Government, but administers the program (proprietary screening, competitive strategy, capacity building and investment instruments) outside the channel of local tribal politics. In this sense, Rose Community Development draws its legitimacy from the authority of the Tribal government, and retains an active role in business management, investment and the encouragement of local entrepreneurs separated from tribal politics. The investments made with this capital are then guided by Rose Community Development, as a centralized institution, whose individuals are chosen for their expertise in finance and investment as well as in Native American business management. Specifically, the operational definition as an organization engaged in the building of sustainable, self-sufficient, independent sovereign Indian nations, through the efficient allocation, concentration and preservation of Indian resources, by Indian nations for the use of Indian nations.
The critical function of this "dual" structure is to allow tribal governments to optimize economic growth without encumbering the growth process with the kind of politics, which lead to enterprise failure. The delegation of management authority to Rose Community Development Corporation represents exactly the kind of separation between economics and politics that the Harvard Project on Indian Economic Development described as a necessary element for success in Indian country (the neutral third party capability to fairly and effectively adjudicate disputes).
7. This separation of activities further allows the Rose Community Development as the guiding institution to target the most favorable technologies for the Tribe's development. Here, Rose's unique model combines the best features of the venture capital model along with the best features of the Japanese "administrative guidance" model. The intent of Rose Community Development Corporation is to use this new hybrid approach to create an array of value clusters where, using Michael Porter's language, "the value chain is as strong as its strongest link."
8. Using a variety of financing tools, particularly tax credits and the new investment instruments available to Community Development Financial Institutions ("CDFI"), Rose Community Development Corporation will create a consistent, coherent and consonant set of programs for the purpose of building a sustainable competitive advantage for Indian Nations. A factor which is extremely important from the cultural, historical and institutional points of view is that this business model is based on a natural interface between external capital markets and the holistic, communitarian values of Native Americans, creating a balance between the financial and social returns on investment. As indicated, Rose Community Development Corporation, while working with a number of hybrid technologies, has as its central commitment the accomplishment of economic development in Indian Country, by Indians, using the appropriate cultural principles of Native American peoples.
9. Rose Community Development Corporation's approach to distributing this wealth relies on a unique combination of tribal leadership, modern scientific management informed by the most recent advances in the physical sciences and local Native American culture. In this context, the blended value proposition guides the decision making process of the business model. A basic corollary of the blended value proposition is that every decision is a balance of financial, social and environmental factors. The economic model is not a short-term "jobs and income" approach, nor is it a theoretical, academic, social science exercise. It is a real-world, practical application of a proven, historically successful, for-profit model of nation building, supported by its' own venture capital funding across a broad range of financial instruments and investment opportunities.