Since 1831, when Chief Justice Marshall described the relationship between Indian tribes and the federal government as "nations within a nation," as "domestic dependent nations," and as "that of a ward to his guardian," Indian tribes have struggled to define and assert their sovereignty. Their struggle has been blown by political winds between the extremes of termination and self-determination, with the result always being continued poverty and dependence on the federal government.

Given the institutions that govern tribal politics and economics, this result should not be surprising. A growing body of empirical literature shows that economies governed by a strict rule of law, secure property rights, and secure freedom of contract perform better than those without these institutions.

This seminar will consider how political and legal institutions governing reservations affect economic performance. The first session will focus on judicial independence and the impact of gaming on reservation economies; the second on the implications of sovereignty for secure property rights and contracting on reservations. Over a luncheon, Maurice McTigue of the Mercatus Center will reflect on the issue of sovereignty as it relates to other indigenous populations, with a focus on the Maori in New Zealand.