Economic trends on the American Indian reservations in South Dakota.

I. Introduction

Since the end of World War II, the U.S. and South Dakota economies have experienced tremendous economic growth. For both the U.S. and South Dakota, real per capita personal income has more than tripled. Since 1969, the percent of persons in poverty dropped from 13.7 percent to 11.7 percent for the U.S. and from 16.9 percent to 11.7 percent for South Dakota. U.S. employment has increased by 84 percent and South Dakota employment by 73 percent since 1958. Real earnings per job have increased by about one-third for the U.S. and about one-fifth for South Dakota since 1969.

These are all signs of economic progress for both the U.S. and South Dakota. However, not all groups in the state or nation have fared as well. American Indians, who comprise approximately eight percent of the South Dakota population, have not realized the same level of economic progress. It is the purpose of this article to examine the economic performance of the American Indian reservations in South Dakota. Trends in per capita income, reduction in poverty, and employment growth are examined to determine where progress has been made and where it has not. Comparisons will be made between the American Indian reservations, South Dakota, and the U.S.. Data published by the Bureau of Census, Department of Labor and Commerce are the basis for this analysis.

This article is organized as follows: Section II will provide a short history of the reservation system in South Dakota, Section III will examine the current status of income and poverty using 2000 Census data, Section IV will examine trends of income and earnings using Bureau of Economic Analysis data since 1969, Section V will discuss the issue of economic development on the reservations, and Section VI will provide a summary and conclusions.

II. A Short History of the Reservation System in South Dakota

Shortly after encountering white explorers in north-central Minnesota about the end of the 17th century, the Lakota (also called western Sioux) moved west to pursue buffalo in what is now South Dakota, Montana, Wyoming, and Nebraska. They did not actively resist white immigration until the whites began to decimate the buffalo herds.

The United States government, as defined by the United States Constitution, has governmental relationships with international, tribal, and state entities; therefore, tribal nations have a government-to-government relationship with the United States. The Tribes of the Great Sioux Nation signed treaties in 1824, 1851, 1863, and 1868 with the United States which were the legal documents that established Tribal boundaries and recognized the Tribes' rights as sovereign governments. The South Dakota Tribes operate under a constitution and are governed by a Tribal Council.