credit unions and the needs of indigenous Australians

I asked my friend Steve Soames (Associate Principal, Ngaanyatjarra Lands, Warburton Ranges Campus) whether the credit union movement was alive and well in Australia. In his informative newsletter he had identified the debt problems in his local community. I wondered whether credit unions might possibly help.

He responded as follows ;

There is a Credit Union movement in Australia, but it seems to be the domain of savvy white folk or pretty mainstream, acting like a bank. The issue of schonky money lending is pretty grim as folk living in a dry community will do just about anything to access alcohol when visiting a community where it is legally available. In fact income management is a significant issue here. On 'pay-day' there are many card games around the community with the stakes getting progressively higher. The Rudd government has issued two 'stimulus packages' which put a lot of money into the hands of families on benefits. The effect of that out here was to increase gambling, people leaving the community for a drinking binge and purchasing large consumer items such as cars (which compound the need for extra money for fuel etc...)
The Community Development Adviser does a form of income management in order to ensure that the housing stock is adequately maintained. He holds back 10% of income for this purpose...I NEVER thought I'd see myself supporting the equivalent of a poll tax having fought tooth and nail against it in the UK!

Credit Unions would certainly be a powerful local solution, but I think they may be some way down the track as there's currently a greater need for basic financial management. The folk out here are only 3 or 4 generations out of the desert. successive government policies of welfare dependency and 'guilt money' aimed at keeping social issues contained in remote areas has done nothing to build capacity around sound financial management.

Added to this mix is the cultural importance of family. Family members are obliged to 'share' resources...a great survival mechanism when living a nomadic existence in such a harsh and unforgiving environment, but it doesn't suit a residential population as things get pulled down to the lowest common denominator. For example, when in Laverton I was exploring childhood nutrition...why were indigenous families not purchasing enough food for the week and rationing it out. The answer was that family members would rock-up and empty the fridge/larder as living hand-to-mouth is the norm. It is easier to hide a few bucks and give this to the children to ensure that they get a daily lunch. We needed to teach the children to make healthy choices at the store...but in remote locations, it's easier to provide pies and coke than it is sandwiches and fruit.

My current assessment is that mainstream, anglo-saxon economic solutions may not be the answer to supporting a culture in rapid transition. Families are a real strength and possibly offer a solution. White agency folk tend to get too bogged down in the symptoms and Heads of Service are too busy trying to meet unrealistic government targets...sound familiar "