The La Grande hydroelectric project, which alone supplies enough power for a community of 400,000

This 50-year political and economic agreement, signed on February 3, 2002, and the process to achieving this unique ‘nation to nation’ relationship, was the focus of a recent mission led by the Bank’s Sustainable Development Vice President Ian Johnson – to feed into the Bank’s approach to dealing with Indigenous Peoples in its development projects.

The Bank mission to James Bay’s Indigenous Cree Community saw first-hand how the Government of Quebec and Hydro-Quebec, one of world’s leading companies in the hydropower business, learned, despite occasional differences, to reconcile the objectives of the three parties including the interests of the local communities – on the basis of mutual respect and understanding – to go forward with a $4 billion hydropower infrastructure project which was begun in the early 1970’s.

At the time of the 2002 agreement, Ted Moses, Grand Chief of the Grand Council of the Crees, stated that “Today we can finally turn the page and focus our attention, energy, and imagination on our common effort in a true spirit of cooperation with Quebec, with a view to planning a future that takes into account all Quebecers, including the Crees.”

“Over the past 30 years, the World Bank has invested in infrastructure projects,” Johnson told the Cree community leaders, “but hasn’t always done a very good job of listening to the local people.  We are in the process of, and in going forward, trying to learn both from mistakes and from good practice.  Listening to you here has been a profound experience, and we appreciate your insight.”

First, they had to lessen the impacts of their projects and activities on traditional ways of life – and this could be achieved only through meaningful consultation.  Second, the design, execution, and operation of their projects and activities had to lead to benefit-sharing through active participation of the First Nations in the Quebec economy.

The values and lifestyles of Aboriginals throughout northern Quebec have changed dramatically over the last forty years – communities that were once nomadic and lived mainly by hunting and fishing have become sedentary and joined the cash economy.  The Quebec government and Hydro-Quebec rapidly became aware that the hydropower project would have an impact on Aboriginal ways of life, as well as on social and economic structures – points which they recognized in early agreements with the First Nations – and that specific measures were needed to offset or limit them. 

Sustainable Development Vice President Ian Johnson and Chisasabi Chief Abraham Rupert meet at the Cree Community of Chisasabi headquarters.

In response, SOTRAC – a joint, non-profit corporation for remedial work – was established to benefit communities directly affected by the project.  The objective was to mitigate the negative impacts of the project by fostering aboriginal use of areas affected by the project, and promoting the pursuit of traditional activities by all users in the affected communities – such as protecting as much as possible the traditional beaver trap lines. 

SOTRAC also served as forums for discussion and issue-resolution during the project construction phase, ensuring an on-going dialogue to facilitate achievement of the objectives and the intent of the agreement. 

Additionally, all agreements involved in the project included ways and means of stimulating economic development – promoting the use of Aboriginal businesses in bidding for construction, maintenance, repair, and service contracts; running information campaigns in the communities and providing Aboriginal companies with information to raise awareness of the project’s business practices and administrative procedures; and encouraging joint ventures so that Aboriginal-owned companies would be able to acquire experience in new fields.

As evidence of this economic inclusion, between 1992 and 2002, Hydro-Quebec awarded more than CAN$370 million in contracts to Aboriginal-owned companies or entities.  In 2002, a minimum of 129 Aboriginals worked for Hydro-Quebec, or 0.7 percent of the workforce.  By way of comparison, the Aboriginal population totals approximately 80,700, that is, one percent of the population of Quebec (7.6 million).

An important element to the project and the relationship between the Cree Community, the Government of Quebec, and Hydro-Quebec is that Cree expertise is being used to reduce impacts on the environment.  The project has been able to proceed because it is a forgone conclusion that:

• The Cree are in control of their territory;
• The Cree must be included in all aspects of natural resource development in their territory:  assessment, investigation, execution, and benefit;
• The Cree must be given the resources and opportunities to participate in a meaningful manner; and
• The Cree are not going anywhere.

With estimates placing their number at over 200 million and living in more than seventy countries, Indigenous Peoples have historically been the most disadvantaged, marginalized, and excluded populations in many  parts of the world.  Their identities and cultures are inextricably linked to the land on which they live and the natural resources on which they depend, and are especially vulnerable to changes caused by development programs.

The Bank’s relationship with Indigenous Peoples in the twenty-first century has moved beyond its modest ‘do no harm’ objective of its earliest policies of a generation ago, to a more proactive approach that promotes indigenous peoples participation in development, benefit-sharing, and the provision of culturally sensitive benefits.

“In the last three years in particular,” says Navin Rai, the Bank’s Indigenous Peoples Coordinator, “the World Bank has purposefully engaged Indigenous leaders in a direct dialogue.  The international Indigenous community has responded to this opportunity for direct engagement to articulate their concerns.”

“The Bank’s approach is based on a long-term perspective,” added Johnson, “which recognizes and respects the situations faced by Indigenous Peoples in each country.”