Issues in Indigenous Poverty and Development

The opinions expressed herein are those of the author and do not necessarily represent the official position of the Inter-American Development Bank. FOREWORD Throughout Latin America, the past decade has brought a growing national and international concern for the identity and rights of indigenous peoples. Moreover, in the context of structural adjustment programs in particular, the international development community has expressed a determination to tackle the high levels of poverty and extreme poverty in Latin America, above all in its rural areas. The strong correlation between ethnicity and poverty, with indigenous peoples almost invariably being represented disproportionately among the poorest sectors of society, has drawn attention to the issue of indigenous peoples, poverty reduction and development. Attempts to target development efforts at the poorest sectors of society, perhaps particularly at indigenous peoples, have raised a number of questions. Why are indigenous peoples disproportionately poor? Do indigenous peoples have particular aspirations with regard to the material as well as cultural aspects of development? Do they generally wish to pursue their own development path in accordance with longstanding traditions? Or do they strive to have a more equitable participation in national development and national institutions? To what extent should programs to redress the poverty of indigenous peoples take account of the wider and growing aspirations of indigenous peoples for autonomy, self-determination, self-government and " self-development " ? Or conversely, to what extent should they focus on the more structural aspects of discrimination, combat social exclusion and enable indigenous peoples to participate more effectively in the national economy and society? To what extent, or under what circumstances, should additional measures be taken to protect the economic affairs of indigenous communities from market forces? These and many related questions are now having to be confronted by the Inter-American Development Bank, as it aims to channel its development resources more effectively at the poorest sectors of Latin American society including its indigenous peoples. After many internal discussions, the Bank is now preparing a formal strategy paper to guide its policies and programs in the years to come. This paper is the first in a series of studies of poverty and poverty reduction strategies for indigenous peoples designed to provide an important input into the strategy paper. The studies have been contracted by the Indigenous Peoples and Community Development Unit (SDS/IND) of the Bank using resources provided by the European Special Fund for Technical Cooperation in …