Tebtebba (Indigenous Peoples International Centre for Policy Research and Education)
Saami Council
NakoaIkaika Kalahui, Hawaii
Indian Law Resource Centre
Inuit Circumpolar Conference (ICC)
Foundation for Aboriginal and Islander Research Action
Cordillera Peoples’ Alliance
Bangladesh Adivasi Forum
Chin Human Rights Organisation
Shimin Gaiku Centre
ChingYi Kao/ International Association for Human Values
Tara Ping Pu, Taiwan
Aliansi Masyarakat Adat Nusantara (AMAN)
Jaringan Komunitas Masyarakat Adat (Aceh)
Ikatan Cendekiawan Tanimbar Indonesia (ICTI)
Parbatya Chattaagram Jana Samhati Samiti (PCJSS)
CIPRAD (Centre for Indigenous Peoples’ Rights and Development)
The Akha Heritage Foundation
Threatened Indigenous Peoples Society (TIPS), Manipur
Jharkhandis Organisation for Human Rights (JOHAR)
Bangsa Adat Aliku (Maluku)
South Asia Indigenous Women’s Forum- Nepal
Peace Campaign Group, India
Nepal Federation of Indigenous Nationalities (NEFIN)
Himalayan Indigenous Women's Organisation  (HIWN)

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Permanent Forum on Indigenous Issues
Fourth Session, May 2005
New York

Multilateral Development Banks (MDBs) and Indigenous Peoples’ Rights,
including Free, Prior Informed Consent

The goal of the Second Decade UN Decade of the World’s Indigenous Peoples is the further strengthening of international cooperation for the solution of problems faced by indigenous peoples in such areas as culture, education, health, human rights, the environment and economic and social development, by means of action-oriented programmes and specific projects, increased technical assistance and relevant standard-setting activities.

The UN Permanent Forum on Indigenous Issues, in its past meetings has made numerous recommendations about the existing and emerging policies of the multilateral development banks (MDBs). Specifically, the Permanent Forum has highlighted the importance of indigenous peoples’ rights to self-identification, the recognition of customary land and resources rights, the prohibition of involuntary displacement and free prior and informed consent in their policies and projects. In the coming years, continued critical engagement by the UN Permanent Forum on Indigenous Issues with these MDBs will be a necessary part of the activities during the 2nd UN Decade of the World’s Indigenous Peoples, to ensure that their policies and projects do not harm, and will contribute to the sustainable development of indigenous peoples.

The World Bank recently approved its Operational Policy on indigenous peoples (OP/BP 4.10) after seven years of consultations and revisions.   Many other international financial institutions such as the Inter-American Development Bank and the International Finance Corporation are similarly revising their own operational policies or performance standards specific to indigenous peoples.

The newly revised policy has made important improvements in several areas, such as requiring that the commercial development of affected indigenous peoples’ cultural resources and knowledge be conditioned upon their prior agreement to such development. Nevertheless, we continue to be extremely concerned about these Multilateral Development Banks lack of recognition of indigenous peoples’ customary rights to their lands territories and natural resources and to their related right of free prior informed consent, and their derogation of international standards to national law. Given the critical precedents set by the World Bank, we hope that other IFI s will make additional advances as they move forward in their policy revision processes.

As a part of their collective rights to ownership of their property and self-determination, indigenous peoples have the right to protect and to determine the use and disposition of their lands, territories and resources. Indigenous peoples’ right of free prior informed consent is one of the particularly important incidents of their collective rights to property and self-determination. But it is critical that the right of free prior informed consent not be misunderstood and that it not be used as a substitute for indigenous peoples’ rights to property, self-determination and other human rights by the MDBS.

Of specific concern is the World Bank’s recent decision to require a process of free prior and informed consultation with affected indigenous peoples’ communities to ascertain their broad community support for a project, rather than requiring the free prior and informed consent of the affected indigenous people. By merely requiring the World Bank to verify that the borrower has gained the “broad support from representatives of major sections of the community”- with no guarantees as to what information will be disclosed and when, how such verification will be conducted and by who, and how the collective decision-making processes and structures of the affected indigenous people will be recognized and respected- the free prior and informed consultation process stands to reduce indigenous peoples rights to a mere technical procedure.   The weakening of free prior and informed consent as an international standard for indigenous peoples stands to severely threaten the lands, territories, and natural resources of indigenous peoples and to undermine their internationally recognized human rights.

We strongly urge that the Permanent Forum, in its activities under the 2nd UN Decade:

1. Coordinates the various UN bodies, mechanisms and processes with responsibility for the Human Rights of Indigenous Peoples (inter-alia, the UN Permanent Forum, Special Rapporteur on the Fundamental Rights and Freedoms of Indigenous Peoples, UNWGIP and the Sub-commission on the Promotion and Protection of Human Rights), to undertake studies and promote activities to further the accountability of the multilateral development banks to all applicable international human rights standards and to respect, protect and fulfill the rights of indigenous peoples in their policies and practices.

2. Calls upon the World Bank, the International Finance Corporation, the Inter-American Development Bank, and the Inter-Agency Support Group on Indigenous Issues to report to the Permanent Forum and to the Working Group on Indigenous Peoples their detailed definitions of how free prior and informed consent, and/or broad community support, is to be defined, ascertained, verified, and complied with.

3. Calls upon the World Bank to create a mechanism which will guarantee the full and effective participation of indigenous peoples in discussing and defining the meaning and application of conducting free prior and informed consultation and ascertaining broad community support with the Bank’s management, legal counsel, and task teams (TT). Indigenous peoples’ suggestions and comments should be reflected in the forthcoming Indigenous Peoples Guidebook and in any revisions made to BP 4.10.

4. Encourages the International Finance Corporation to conduct further consultations with indigenous peoples regarding the revision of its Performance Standards to ensure that indigenous peoples are able to provide recommendations as to how free prior and informed consent must be ascertained, and under which conditions, so as to ensure that indigenous peoples’ customary land and natural resource rights are not undermined by the IFC and its private sector clients.