The development of Arctic Canada's resources has historically been guided by two contrasting administrative approaches: one favoring the free play of profit motives in a laissez-faire market economy and the other the coordination of development through formalized government planning. In both approaches, Eurocanadians are the dominant figures, while Eskimos are depressed and subservient. Against this background, a third approach to development is emerging--the Arctic cooperative movement. This movement aims to encourage Eskimos to participate directly in the development of their communities. Pelly Bay, an isolated Eskimo community on Simpson Peninsula, joined the Arctic cooperative movement in 1966. The coop's first priority is to satisfy the immediate, basic needs of the community for an Eskimo-owned retail store and for a producers' coop to encourage local industry. Today, its program is one of the most ambitious of the Arctic coops involving tourism, large-scale commercial fishing, and air transport. At present, every family is a member of the coop, and all decisions are made through the elected board of directors and executed by the coop manager and his staff. To date, coop ventures have been successful; community morale is high and coop revenues continue to increase. Yet, local initiative is often curtailed by poor communication between the village and the myriad of government agencies regulating Northern development. (Author/NQ)