The Navajo Nation: A History of Dependence and Underdevelopment

This paper examines how U.S. economic and political domination of the Navajo Nation has caused and perpetuates its underdevelopment. First, a brief summary of the history of the Navajo Nation is provided, focusing on the evolution of U.S. - Navajo relations since the U.S. conquest of the Navajos. This brief historical account concludes with a summary of data contrasting the wealth of Navajo natural resources with the poverty of the Navajo people. The major part of the paper is then devoted to an analysis of contemporary Navajo under development. The deterioration of the traditional sector is analyzed citing trans fers of value to the U.S. economy through the two mechanisms of unequal ex change in trade and unequal trade. The capitalist sector is then analyzed, focus ing on the despoilation of Navajo mineral resources by U.S. based transnational corporations in a manner similar to that experienced by third world countries around the world. In this context the factors which diminish the Navajos' bar gaining power in efforts to improve the terms of their economic relations with these corporations are discussed in some detail. There follows an analysis of the Navajo Nation's own efforts to develop its timber, agricultural and water re sources as well as attempts to attract footloose manufacturing firms. Finally the relatively large public service sector of the Navajo economy is discussed, focusing on how the bloating of this sector has steadily increased its purely economic im portance in the Navajo economy while further undermining the political flexibil ity of the already conservative tribal government. The paper concludes by out lining an alternative self-reliant strategy for the economic development of the Navajo Nation which would permit them to regain control of their economy and thereby their destiny.