Indigenous Peoples

The World Bank is the first multilateral development agency to recognize the need to protect indigenous peoples from potentially adverse effects of development projects. In 1982 the Bank issued Operational Manual Statement (OMS) 2.34 "Tribal People in Bank-Financed Projects" The OMS applied to "ethnic groups typically with stable, low energy, sustained-yield economic systems as exemplified by hunter-gatherers, shifting or semi-permanent farmers, herders, or fisherman." This definition had a limited application in that only small, isolated and unacculturated tribal groups were covered under the OMS.

Following an internal review in 1987 the OMS was replaced by Operational Directive (OD) 4.20 in 1991. The main reason for this development was to align the Bank's policy with the emerging international thinking on indigenous peoples. The OD states that the Bank broad objective towards indigenous peoples is to ensure that the development process fosters full respect for their dignity, human rights, and cultural uniqueness. The OD recognizes that because of the varied and changing contexts in which indigenous peoples are found, no single definition can capture their diversity. Hence, the OD directs that indigenous peoples be identified in particular geographical areas by the presence in varying degrees of the five characteristics (close attachment to ancestral land, self identification and identification by others, an indigenous language often different from the national one, presence of customary social and political institutions, and primarily subsistence-oriented production.)

Currently, OD 4.20is being converted into Operational Policy (OP) and Bank Procedures (BP) 4.10. Extensive internal and external consultations on the draft OP and BP were completed, and the OP/BP are expected to be formally issued by the Bank after a review and analysis of the results of the consultations. The main reason for revising OD 4.20and reissuing it as OP/BP 4.10 is to incorporate the lessons learnt in the implementation of the OD during the last ten years, and to clarify some of its provisions. The change is also part of the process of the conversion of the Bank ODs into policies and procedures.

Part I of the drat OP sets out the processes for identifying indigenous peoples, the policy requirements to be followed when they are affected by Bank-assisted projects, and the specific measures required when a Bank-assisted project affects the lands or resources of an indigenous group. Part II describes activities which may be undertaken by Bank members in the context of their development planning and poverty reduction strategies and which may be supported by the Bank in order to further the objectives of this policy.

The draft Policy reiterated the broad objective of the Bank towards indigenous peoples included in the OD. However, the draft Policy makes a number of clarifications to the OD with regard to identification of indigenous peoples, consultation and participation, land and natural resources, and cultural resources of indigenous peoples.

The draft Policy provides detailed provisions on consultation and participation. To ensure meaningful consultation, the draft Policy requires the borrower to provide relevant information to indigenous groups affected by Bank-assisted projects, in a timely and culturally appropriate manner. To facilitate such consultation, the borrower is required to (i) establish an appropriate framework for dialogue, (ii) involve local representative indigenous organizations in discussion, as appropriate; and (iii) use culturally appropriate consultation methods which allow indigenous peoples to express their views and preferences. The Borrower considers the views and preferences of indigenous peoples in deciding whether to proceed with the project and what additional measures, including modification of project design, are required to address adverse impacts and enhance project benefits. The Bank reviews the borrower's project proposal to ensure its consistency with the draft Policy. In projects where adverse impacts are anticipated, the borrower undertakes social assessment to determine the nature and extent of the impacts and the measures to avoid, minimize or mitigate such impacts. Based on this assessment, the Borrower prepares an Indigenous Peoples Plan (IPP) in consultation with the affected indigenous groups. The content and level of detail of the IPP vary according to the specific characteristics of the project and the nature of impacts to be addressed.

The draft Policy recognizes that the economies, identities and forms of social organization of indigenous peoples are often closely tied to land, water and other natural resources. In Bank-assisted projects which affect indigenous peoples, the draft Policy requires the borrower to take into account their individual and collective rights to use and develop the lands that they occupy, and to ensure that indigenous peoples continue to have access to natural resources vital to their subsistence, to the sustainability of their cultures, and to their future development. In order to avoid or minimize adverse impacts of Bank-assisted projects on affected indigenous groups, and to determine measures which may be needed to enhance their security over lands and other resources, the borrower is required to give particular attention in the design of the project to (i) the cultural, religious and sacred values that these groups attribute to their lands and resources; (ii) their individual and communal or collective rights to use and develop the lands they occupy and to be protected against encroachment; (iii) their customary use of the natural resources vital to their cultures and ways of life; and (iv) their natural resources management practices and the long-term sustainability of these practices.

When Bank-assisted projects involve the commercial exploitation of natural resources (including forests, mineral, and hydrocarbon resources) on lands owned, or customarily used by indigenous groups, the borrower is required to (i) inform these groups of their rights to such resources under statutory and customary law; (ii) inform them of the potential impacts of such projects on their livelihoods, environments and use of natural resources; (iii) consult them at an early stage on the development of the project, and involve them in decisions which affect them; and (iv) provide them with opportunities to derive benefits from the project.

When a Bank-assisted project envisions the commercial use of cultural resources of indigenous groups, including their knowledge, Bank policy requires that such groups agree to and derive benefits from the use of such resources.

Useful Links

• The World Bank Social Development Website - Indigenous Peoples

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