We present submillimeter observations of the Local Group , metal-poor , irregular dwarf galaxy IC 10 , directly relevant to the interaction between interstellar medium and star formation activity in primeval galaxies . Using the JCMT , we have observed the fine structure neutral carbon transition ^ { 3 } P _ { 1 } \rightarrow ^ { 3 } P _ { 0 } at 492 GHz and the rotational J = 3 \rightarrow 2 transition of ^ { 12 } CO and ^ { 13 } CO in the most massive giant molecular cloud complex in this galaxy , IC 10-SE . We find that , although the I _ { [ CII ] } / I _ { CO } ratio for this object is a factor of 4 larger than the typical Milky Way value , its [ C I ] to CO intensity ratio I _ { [ CI ] } / I _ { CO } \simeq 18 \pm 2 ( in units of erg s ^ { -1 } cm ^ { -2 } sr ^ { -1 } ) is similar ( only about 50 % larger ) to that of the Milky Way . Modelling of the behaviour of the [ C II ] /CO and [ C I ] /CO intensity ratios with metallicity indicates that , if C ^ { + } and C ^ { 0 } are chiefly produced by UV photodissociation in the PDR , both ratios should increase sharply with decreasing metallicity ( and consequently diminished UV shielding ; Bolatto , Jackson , & Ingalls 1999 \markcite BJI99 ) . These data then suggest a different origin for an important fraction of C ^ { 0 } in these clouds , unrelated to photodissociation . We have also mapped the 850 \mu m continuum in this region using SCUBA . Employing these data in conjunction with KAO and IRAM measurements we find that the 100 \mu m to 1300 \mu m continuum emission corresponds to a graybody with an extremely low emissivity exponent , \beta \sim 0.5 . We conclude that this low exponent is most likely due to the destruction of small dust grains , brought about by the increased penetration of UV radiation in the low metallicity ISM . If a low emissivity exponent in the submillimeter is a general property of metal-poor systems then the interpretation of millimeter and submillimeter surveys of high-z galaxies should be revised .