Background Paper
Indigenous peoples: New IDB policy in 2006 and projects to foster development and identity
The Inter-American Development Bank last year approved three loans specifically targeted at supporting indigenous peoples in its borrowing member countries and also approved a policy on indigenous issues that will guide the Bank’s work in its operations and other activities.
In one operation, a $45.2 million loan will help finance the second phase of the program for Integrated Development for Indigenous Peoples for rural Mapuche, Atacameño and Aymara communities in Chile. A second loan will finance an innovative business development program in rural indigenous communities in Guatemala. A third program, also for Guatemala, will finance a social investment program to directly benefit indigenous communities. The total IDB investment for the three loans is $125 million, with an additional $60 million in leveraged funds.
Several grant-funded operations will support indigenous access to health and education, production and market development, and consultation processes. The IDB also began the preparation of a series of Technical Notes on Indigenous Issues as part of the Bank’s country strategy and programming process. Notes have been prepared or are being prepared for Bolivia, Guatemala, Guyana, Nicaragua and Nicaragua.
The Bank’s technical cooperation program also supported studies in the areas of isolated indigenous peoples, mapping of indigenous peoples in the impact areas of IIRSA projects, linkage between indigenous and market economies, good practices and a survey of indigenous enterprises for potential bank support, among others initiatives.
These loans, in additional to indigenous-related components of another 19 loans and 37 technical cooperation projects, represent a significant increase in IDB investment in projects to support indigenous development over approvals in the previous year.
According to Anne Deruyttere, chief of the IDB’s Indigenous Peoples Unit, the increasing number and amount of IDB support in this area reflects growing awareness and demand on the part of both governments and indigenous groups. It may also reflect the impact of the extensive discussions that led up to the Bank’s new indigenous policy and strategy.
The Operational Policy on Indigenous Peoples and the Strategy for Indigenous Development were approved in February 2006 by the Bank’s Board of Executive Directors. The approval culminated a two-year process of consultations with government agencies, representatives of indigenous organizations and other stakeholders. The policy entered into force in August of last year.
The strategy presents ways to support the strengthening of indigenous territories and measures to promote equitable access to labor markets and social services. It also points out opportunities for mobilizing the potential of indigenous peoples for economic and social development based on their considerable natural resources, social capital, cultural heritage and access to niche markets where they have comparative advantages. The strategy emphasizes that indigenous development-or development with identity-must respect and build upon the cultural identity of each community and group.
To assist the implementation of the strategy and policy, the Bank also approved a set of guidelines for use by Bank staff and borrowers.
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