Indigenous organizations and NGOs have long criticized the World Bank for financing projects that destroy the lives and livelihoods of indigenous peoples around the globe. In a parallel session on Tuesday July 19, Mr Jorge Uquillas, a social scientist specializing in Latin America and the Caribbean Region at the World Bank, was at hand to present the World Bank’s remedy to these historical grievances by presenting its revised Indigenous Peoples Operational Directive labelled OD 4.10.

Mr Uquillas started his presentation by differentiating the original and modest objective of earlier World Bank policies and the new and more proactive policy that will ensure indigenous people benefit from development projects assisted by the organisation by promoting their participation in development.

Some of the new key revisions presented by Mr Uquillas included: Self-identification (who is an Indigenous People) that is useful for determining where the new policy applies, a clear mandatory requirement for the borrower to undertake a social assessment, a process of free prior and informed consultation that is required for each stage of the project, and a requirement to undertake culturally appropriate consultation. Mr Uquillas went on to stipulate that under the new policies, the Bank would not proceed with projects “if it is unable to ascertain that (broad community) support exists”. The Bank representative also presented Bank’s obligation to recognize the ownership rights of indigenous peoples over lands they have traditionally owned, or customarily used or occupied. Finally, borrowing entities of the bank will have to avoid resettlement of indigenous peoples.

Discussion following the presentation suggested that new Operational Directive does not meet expectations amongst the indigenous population and various key weaknesses and flaws where brought up.
1. It does not prohibit World Bank funding of projects or programmes that risk contravening a borrower’s international obligations on human rights and the environment.

2. There is no requirement that the Bank and borrower respect indigenous peoples’ right to free prior and informed consent

3. The Bank decides whether community support for a project exists.

4. Many countries are unfamiliar with the policy, while others resist applying it to their projects.

5. Environmental assessments are not independent because consultants are chosen by the Bank.

There are some potentially useful elements in the draft-revised policy. However, judging from the comments of the participants, it appears that it still contains serious gaps and ambiguities to help reduce the negative impact of Bank-funded projects.