Document of The World Bank Public Disclosure Authorized
Report No: 20929-AR Public Disclosure Authorized
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED LEARNING AND INNOVATION LOAN
IN THE AMOUNT OF US$5.00MILLION
TO THE Public Disclosure Authorized GOVERNMENT OF ARGENTINA
FOR AN
INDIGENOUS COMMUNITY DEVELOPMENT LIL
September 19,2000
Argentina Country Management Unit Environmentally and Socially Sustainable Development Unit Latin America and Caribbean Region Public Disclosure Authorized CURRENCY EQUIVALENTS
(Exchange Rate Effective September 2000)
Currency Unit = Argentine Peso LC = US$1 US$1 = LC
FISCAL YEAR January 1 December 31
ABBREVIATIONS AND ACRONYMS AC AdvisoryCouncil CAS CountryAssistance Strategy CMU CountryManagement Unit EA EnvironmentalAssessment GEF Global EnvironmentalFacility GOA Governmentof Argentina IBRD InternationalBank for Reconstructionand Development (World Bank) IDA InternationalDevelopment Association (World Bank) IDB Inter-AmericanDevelopment Bank IDF InstitutionalDevelopment Fund INAI NationalInstitute for IndigenousAffairs (InstitutoNacional para Asuntos Indigenas) IPA IndigenousProtected Area LCR Latin Americaand the CaribbeanRegion LCSES Environmentaland SociallySustainable Development Sector Unit of LCR LIL Learningand InnovationLoan LMU Local ManagementUnit NCB NationalCompetitive Bidding NGO Non-GovernmentalOrganization PAD ProjectAppraisal Document PMU ProjectManagement Unit SA SpecialAccount SC SubprojectsCommittee TG TechnicalGroup TOR Terms of Reference UCAF Administrativeand FinancialCoordination Unit
Vice President: David De Ferranti Country Manager/Director Myrna Alexander Sector Manager/Director John Redwood Task Team Leader/Task Manager: Jorge E. Uguillas and Sandra Cesilini ARGENTINA INDIGENOUS COMMUNITY DEVELOPMENT LIL
CONTENTS
A. Project Development Objective Page
1. Project development objective 2 2. Key performance indicators 2
B. Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Government strategy 3 3. Learning and development issues to be addressed by the project 5 4. Learning and innovation expectations 5
C. Project Description Summary
1. Project components 6 2. Institutional and implementation arrangements 7 3. Monitoring and evaluation arrangements 8
D. Project Rationale (This section is not to be completed in a LIL PAD)
E. Summary Project Analysis
1. Economic 8 2. Financial 8 3. Technical 9 4. Institutional 9 5. Environmental 9 6. Social 10 7. Safeguard Policies 11
F. Sustainability and Risks
1. Sustainability 12 2. Critical risks 12 3. Possible controversial aspects 13
G. Main Loan Conditions
1. Effectiveness Condition 13 2. Other 13 H. Readinessfor Implementation 13
I. Compliancewith Bank Policies 13
Annexes
Annex 1: ProjectDesign Summary 14 Annex 2: DetailedProject Description 18 Annex 3: EstimatedProject Costs 22 Annex 4: CostBenefit Analysis Summary, or Cost-EffectivenessAnalysis Summary 23 Annex 5: FinancialSummary for Revenue-EarningProject Entities, or FinancialSummary 24 Annex 6: Procurementand DisbursementArrangements 25 Annex 7: ProjectProcessing Schedule 33 Annex8: Documentsin the ProjectFile 34 Annex 9: Statementof Loansand Credits 37 Annex 10:Country at a Glance 40 Annex 11: SocialAssessment 42 Annex 12:Legal Analysis 54
MAP(S) ARGENTINA INDIGENOUS COMMUNITY DEVELOPMENT LIL ProjectAppraisal Document
Latin America and Caribbean Region LCSES Date: September19, 2000 Team Leader: Jorge E. UquillasRodas CountryManager/Director: Myrna Alexander SectorManager/Director: John Redwood ProjectID: P057473 Sector(s): SY - Other SocialSector LendingInstrument: Learning and InnovationLoan (LIL) Theme(s): PovertyTargeted Intervention: Y ProjectFinancing Data 3 Loan B Credit B Grant O Guarantee O Other (Specify)
For Loans/Credits/Others: Amount(US$m): $5.0 million ProposedTerms: VariableSpread & Rate Single Currency Loan (VSCL) Graceperiod (years): 5 Years to maturity:15 Commitmentfee: .75 Front end fee on Bank loan: 1.00% FinancingPlan: Source LOCl Foreign Total GOVERNMENT 0.88 0.00 0.88 IBRD 5.00 0.00 5.00
Total: 5.88 0.00 5.88 Borrower: GOV. OF ARGENTINA Responsibleagency: NAT'L INSTITUTE OF INDIG. AFFAIRS
Address: Lavalle 547, 7o Piso Buenos Aires Contact Person: Alejandro Isla, President Tel: 43939924/4345/4304/4306 Fax: Email:
Estimateddisbursements ( Bank FY/US$MI_ FY 2001 2002 2003 2004 Annual 1.0 2.0 1.5 0.5 Cumulative 1.0 3.0 4.5 5.0 Projectimplementation period: October 2000 - June 2003 Expectedeffectiveness date: 10/01/2000 Expectedclosing date: 12/31/2003 OCS PADfF Rev-M, ZDD A. ProjectDevelopment Objective
1. Projectdevelopment objective: (see Annex 1) The project developmentobjective is to establish the basis for community-drivendevelopment and managementof natural resourceson indigenouslands. This includesstrengthening social organizationand culture, formulatinglocal developmentand natural resource managementplans and testing innovative approachesto addressingkey socioeconomicand environmentalissues in a gender-sensitivemanner. The project will develop an indigenouscommunity-driven development model from experiencein three cases, the Mapuche territory of Pulmari(Neuquen Province), the Diaguita-Calchaquiterritory of Amaicha del Valle/Quilmes(Tucuman Province) and the Kolla territoryof Finca Santiago(Salta Province).The project will be considered successfulwhen local indigenous social organizationsare legally recognized and functioning;mechanisms are in place and workingto resolve land tenure conflicts;an IndigenousProtected Areas legal frameworkhas been formulated;there has been a successfulintegration of sustainablenatural resources managementpractices in community development plans; several successful new types of economicalternatives have been identifiedand tested in each targetedarea; and there is an on-goingprocess of technologyadoption which would in the long run lead to increasedproductivity and income among projectbeneficiaries.
The generalobjective of the Govemment'sindigenous peoples policy, as expressedin Article75 of the NationalConstitution, is to guaranteethe respectfor their culturalidentity and their right to a bilingual and inter-culturaleducation, to recognizethe juridical personalityof their communitiesand the communal possessionand ownershipof traditionally-heldlands. It also establishesthe need to ensuretheir participationin the managementof naturalresources which they control and in other areas of their interest.
To achievethe stated objectives,the projectwill supportthe followingactivities: (a) Socialand Cultural Strengtheningof IndigenousCommunities, by supportinglocal indigenousorganizations and indigenous culturalheritage, land regularization(including legal assistanceand conflictresolution), and planninglocal communitydevelopment and naturalresource management; (b) SustainableUse of Natural Resources,by makinginvestments in selectedactivities such as water managementagricultural diversification, pastures and forestrymanagement, artisan production and marketexchanges; and (c) Project Management, includingimplementation arrangements, monitoring and evaluation,and communicationsand disseminationof lessonslearned.
An associated project, financed by a GEF grant, will complementthis LIL, supporting biodiversity conservationand promotingthe creationof indigenousprotected areas.
2. Key performanceindicators: (see Annex 1) The mainperformance indicators are relatedto: (a) screeningand selectionof socialand productive investments(among them cost-benefitestimates, cash flow, rating of environmentalrisks and remediation measures);(b) supervisionof implementationof social and productiveinvestments (among them success rate of new enterprises,number of visitsper investmentproject, checks on environmentalmitigation); (c) institutionalcapacity and local facilitation(among them reportsof the Local ManagementUnit, LMU, to the communityorganization, adoption of soundbusiness practices, formulation of communitydevelopment plans and proposals);and (d) institutionalcapacity and outwardlinkages (including networking, regular participationin outsideevents, establishmentof inter-communityconflict resolutions mechanisms, support from provincialand federalgovernment agencies and establishmentof a legal frameworkfor indigenous protectedareas).
-2 - B. Strategic Context 1. Sector-relatedCountry Assistance Strategy (CAS) goal supportedby the project: (seeAnnex 1) Documentnumber: R2000-1 16/IFC/R2000-120 Dateof latestCAS discussion: 06/27/2000 Improvingtargeting and effectivenessof socialassistance generally through innovative mechanisms for reachingthe poorestis an importantelement of the social developmentstrategy of the CAS for Argentina. The CASenvironmental actions include promoting sustainable growth coupled with conservationof natural resourcesthrough improved protection and management. A progressbenchmark for socialdevelopment is establishmentof community-basedprojects in ruralareas and innovativepartnerships for poverty reduction,which is matchedin the case of environmentby the benchmarkof establishingand properly managingprotected areas. The two objectives(social and environmental)will be addressedby the project. Provenpractices for achievingthese objectives,at leastas regardsindigenous peoples, are not currently availableto the Governmentof Argentina. The projectwill help developsuch practices and contributeto the broaderCAS objectivesof environmentallyand sociallysustainable development.
Accordingto the FY01-04 CAS,the focus on insuringthat the poor participatein the developmentprocess and promotingequitable, sustained growth will continue.Three broadthemes will be emphasizedby the WorldBank: i) enhancingsocial development, including poverty alleviation and humanresource development;ii) improvingthe performanceand institutionalcapacity of government,particularly sub-nationalgovernments, to deliverkey, social,infrastructure, and environmentalservices; and iii) consolidatingstructural reforms, including public finance,labor markets and the financialsector. Beyond soundeconomic management and pro-employmentgrowth policies, other key reformsfor the ruralpoor, includingindigenous populations, address their needsfor sustainabledevelopment, income generation, accessto safewater and other services,and communitydevelopment. la. GlobalOperational strategy/Program objective addressed by the project: Not applicable
2. Mainsector issues and Governmentstrategy: Indigenouspeoples are arnongthe poorestof the poor in Argentina,the productof a historyof exclusion and discrimination.Estimates of their populationvary (in the absenceof up-to-datecensus figures),but sourcesindicate that they may numberabout one millionpeople or about 3 percentof the total population. They representa high proportion,approximately 25 percent,of the rural populationof the countryand are over-representedamong the ruralpoor. However,even thoughtheir financialassets are low,their social and culturalassets are high. Indigenouspeoples are an importantpart of the socialand culturalfabric of the Argentinenation, as recognizedby the 1994 Constitution.Their culturaland social diversityis being increasinglyrecognized and valued, and effortsare being made to amend pastpolicies that discriminated againstindigenous peoples.
There are severalfactors that demonstratethat the Governmentof Argentinais determinedto changethe exclusionand povertyconditions of indigenouspeoples. Beginning with the constitutionalreform of 1994, for the first time indigenousterritorial rights were recognized. Shortlythereafter, the NationalInstitute for IndigenousAffairs (INAI) was created,within the Secretariatof SocialDevelopment, with a mandateto developthe legaland administrativemechanisms for individualand collectiveland tenure, to identify developmentneeds of the indigenouspeoples and to coordinatepublic sector investment in indigenous communitydevelopment. During 1998,the INAI investedsignificant resources ($ 3 million)in the legal creationof the three proposedIndigenous Pilot Areas.
-3 - To support these efforts, the Bank in 1996 approved an Institutional Development Fund (IDF) grant designed to strengthen indigenous organizations in their capacities for planning, administration and participation in dialogue with the governnent. The proposed project is a direct product of the dialogue initiated by the World Bank with indigenous elected representatives and government officials to launch a process that would take several years to complete.
One of the main aspirations of indigenous communities is to have their territories declared as indigenous protected areas. There are several antecedents of natural protected areas containing indigenous human settlements in Argentina. Among them, there is a recent initiative in the Parque Lanin that deals with indigenous communities living within the boundaries of the Park and its buffer zone, which permits communal land titling and sustainable use of natural resources for the resident Mapuche communities.
There are two other favorable antecedents in Argentina are worth mentioning. First, the official declaration made by the Administracion de Parques Naturales (APSN: 1994, p.71) according to which the administration would: (i) reach agreements with national and provincial organisms responsible for protection/development of indigenous cultures, with the purpose of coordinating community development plans; (ii) provide, through the mentioned plans, orientation and exercise control in the management of natural resources; (iii) promote the participation of communities in the elaboration and follow-up of these plans; and, (iv) promote implementation of development projects and the formation of cooperatives and other traditional communal organizations.
Second, the ongoing effort made by the Argentinean Government with the support of the Global Environmental Facility (GEF) to develop norms, policies and practices in order to implement the Intemational Convention on the Protection of Biodiversity (1992), establishing priorities and action plans. For this purpose, INAI has hosted several national encounters among indigenous peoples in Argentina to assure their participation in the process and the inclusion of indigenous rights in any new legislation on protected areas.
Despite these efforts, numerous issues remain to be addressed before indigenous people's protected areas can be created and made operational and sustainable. These include: (a) design of sustainable-use systems of important and scarce natural resources and protection of fragile ecosystems; (b) agro-ecological constraints associated with current resource-use practices; (c) weakness in the current managerial capacity of indigenous communities to address these problems using modem means, as well as to deal with powerful external private sector and political interests that provoke internal disputes and factionalism among indigenous leaders.
The strategy of the Government of Argentina to address these issues is to build upon and strengthen the social capital of indigenous organizations by supporting community-based natural resources management systems and developing small-scale investment operations to be managed by the indigenous organizations themselves. There is very little experience in Argentina with this strategy. Therefore, the proposed project is designed as a pilot in three indigenous areas, formulating a methodology based on lessons learned in the pilots, and extending the model to additional areas/communities when it is demonstrated that the methodology is successful.
-4 - 3. Learning and Development issues to be addressed by the project: The main issue to be addressed in this project is the operationalizationof the concept of indigenous community-driven development. Progress in implementingArticle 75 of the 1991 Constitution regarding restoration and regularization of indigenous territorial rights was initially hampered by a lack of institutional capacity on the part of the newly created 1NAI. With the support of the Bank (IDF grant of US $ 200,000) for indigenous capacity building, the Inter-American Development Bank (grant of US $ 5 million) to strengthen INAI, and government investments in land purchase and titling, substantialprogress in land tenure security has been achieved. Further progress is now hampered by the absence of a model for institutional and regulatory frameworks which would permit self-determination by indigenous organizations as regards the management and utilization of natural resources in their territories.
Apart from the issuance of land titles to communities, proven methodologies for formulating sustainable development alternatives (by securing resources for the provision of key social services and the financing of investment sub projects as well as establishing sustainable natural resources management systems and ensuring that indigenous organizationsthemselves participate directly in the design and implementationof policy for their areas) do not as yet exist. The project will build upon these initiatives by strengthening INAI in its objective of improving the well being of indigenous peoples, providing them with land security, essential social services and, in cases where it is feasible, creating indigenous protected areas that will be co-managed by local indigenous communities and the relevant government authorities. Directly engaging local indigenous organizations in the planning and implementationof indigenous community-driven sustainable development and in the creation of indigenous protected areas reflects a strategic choice on the part of INAI.
An additional issue that needs careful consideration is that of gender. Indigenous peoples have demanded an end to discriminatory practices from the dominant society and are gradually receiving responses to their demands. Although gender differences are deeply embedded in some if not all indigenous cultures, the project will strive to gradually end discriminatory practices and to provide incentives and opportunities so that the gender gap is reduced. 4. Learning and innovationexpectations: 1 Economic Z21Technical 1 Social 1 Participation 1 Financial 1 Institutional I Environmental El Other
(a) Economic. The project will provide practical experience for the local authorities in assessing the economic viability of sub projects for the purpose of increasing community incomes. It is anticipated that by the end of the project, decisions would be made to finance sub projects that accounted for both the economic value of the sub project from the point of view of an internal rate of return, as well as from the point of view of its added economic value for the community.
(b) Social. The project will also provide opportunitiesto learn about: (i) how to strengthen indigenous social organization and cultures, taking into considerationthe needs and interests of men and women; (ii) how to build on their social and cultural assets in order to reduce poverty and social exclusion; (iii) how to build capacities for community-driven development and natural resource management; (iv) how to create incentives for government to provide more equitable goods and services to indigenous communities; (v) how to improve networking among indigenous communities and between those communities and outside institutions; and (vi) how to introduce ethnic and gender concerns and criteria within social programs addressed to the poor.
-5 - (c) Participation. By the end of the project, the institutional relationships within communities are expected to show a substantial level of informed participation, improved balance in the levels of community involvement by gender, and the empowering of indigenous organizationsin the determinationof income generating activities. Participation of non-governmental organizations and local universities with expertise and strong linkages to the indigenous pilot areas will also be a key feature of this project. Their collaboration will to improve the project's knowledge about the communities and their natural and cultural environment. They will also carry out specific field activities based on existing demand and prior agreements with the indigenous organizations.
(d) Environment. By the end of the project, screening procedures for environmental issues in sub projects and community investments will have resulted in activities that are protecting the natural assets of the communities (soil, water, forest cover) and contributing to biodiversity conservation.
(e) Institutional. Two sets of institutional linkages will be critical to success of the project. First, at the community level, it is expected that by the end of the project, the LMUs would be fully functional and considered to be essential parts of the community. This implies that relationships between the traditional authorities and the LMU staff will be harmonious and productive and that the community at large will identify with the LMU. Second, the project will produce replicable working relationships between the LMUs and central authorities that will provide needed links to sources of technical and financial support, market and political access, and legal protection. The assumption is that this will be INAI in the first instance, but other useful institutions may also link for the purposes of support.
(]) Technical. A preliminary assessment has been made of the technical limits to introducing new income generating activities into the pilot communities. The project will explore different technological alternatives that combine traditional and modern knowledge and to provide experience and knowledge of the technical constrains and opportunities for such activities.
Overall, meeting these expectations will demonstrate the feasibility of a program to scale-up the operation to include a larger number of indigenous communities and community clusters. An assessment of progress will occur approximately 18 months after the project becomes effective with a full assessment of readiness for replication made after 30 months.
C. Project Description Summary 1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown):
Indicative Bank GEF % Componet Sector Costs % Of financing Bank financing GEF i_ (USSM) Total (US$M) financing WUSWM)financing Social and Cultural OtherSocial Sector 1.60 27.2 1.40 28.0 0.00 0.0 Strengtheningof Indigenous Communities SustainableUse of Natural NaturalResources 2.20 37.4 1.87 37.4 0.00 0.0 Resources Management ProjectManagement Institutional 1.37 23.3 1.28 25.6 0.00 0.0 Development Contingencies NaturalResources 0.66 11.2 0.40 8.0 0.00 0.0 Management
-6 - GlobalComponents 0.00 0.0 0.0 0.0 0.00 Total ProjectCosts 5.83 99.1 4.95 99.0 0.00 0.0 Front-endfee 0.05 0.9 0.05 1.0 0.00 0.0 Total FinancingRequired 5.88 100.0 5.00 100.0 0.00 0.0
2. Institutional and implementation arrangements: 2.1 Pilot Areas of Indigenous Community Development Level:
The LMU will be composed of "indigenous promoters" (technically prepared members of the indigenous community), nominated by traditional authorities (Confederaci6n Mapuche, Consejo Kolla de Finca Santiago and Consejo de Caciques y Comisiones Directivas de las comunidades Diaguita Calchaquiesy Quilmes) and selected by the Project Management Unit (PMU) on the basis of previously-approvedterms of reference and selection criteria. The LMU will be strengthened by a Project Coordinator/Administrator and a Secretary/Accountant,complemented on an as-needed basis by a Technical Group comprised of short-term technical professionalsjointly selected by traditional authorities and INAI.
The LMU will be resident in the Indigenous Pilot Area throughout the life of the project. The LMU will design and manage proposed activities at the local level, and monitor and supervise the delivery of services, works and goods. Implementation of projects will also be done by other parties (NGOs, community groups) besides the traditional community organization, but on the basis of approved plans and the prior consent of the traditional community organization. Approval of projects in amounts less than US$ 50,000 can be authorized by the LMU, after it has received the no-objection from INAI. The first three sub projects of each LMU above this level will be sent to the World Bank for no-objection. A Project Operations Manual will be finalized as a condition for project effectiveness. It will describe the required relationships between the LMU, local community-basedorganizations and other stakeholders at the local level, as well as the relationships between these, the PMU and INAI at the project level (including respective duties, responsibilities, clearances, procedures for administration of funds - operating a local bark account - and implementationof activities within the zone).
2.2 Project Management Level:
The Director of INAI will maintain overall administrative responsibility for the project's successful implementation. INAI's Director will also chair an Advisory Council (AC), comprised of two indigenous representatives of each pilot area plus representatives of relevant secretariats and ministries, that will meet as needed. The AC function will be to facilitate the timely response and coordination of responsiblepublic agencies to new initiatives stemming from the Indigenous Pilot Area. The content of the Project Operational Manual was agreed during appraisal. It will include, inter-alia, a description of: (a) administration arrangements and relationships; (b) financial management arrangements and resource flows (including auditing requirements);(c) procurement procedures, including a detailed description of responsibilities between the AC, PM[ and LMU; (d) standard terms-of-reference for consultants to be hired by the LMU; (e) terms-of-referencefor pilot-specific environmental assessments;(f) sample letters of invitation, procedures for evaluation, samples of agreements, and sample contracts for consulting services; and (g) monitoring, evaluation and reporting requirements. Approval of the Project Operational Manual is a condition of loan effectiveness.
The PMU will present to the Bank for review and approval draft annual Operating Plans and Budgets no later than November 15 of each year. A signed agreement governing the relationship between INAI and the
- 7 - communities will be a condition of disbursement for the financing of sub projects in each Indigenous Pilot Area.
3. Monitoring and evaluation arrangements: Monitoring of the project inputs and implementationprogress will be the responsibility of the PMU as part of its budget management and reporting system. It will report semi-annually based on reports from the pilot areas. The monitoring reports will be prepared initially by the three LMUs which will present the results to the target communities and traditional authorities for feedback and comments, and submit them in draft to the PMU. Project outputs will be monitored as part of this process.
To maximize learning for all participants,the PMU will present the evaluations of the results achieved and documented in the monitoring reports to a mid-term workshop. Broad, qualitative (efficacy of capacity-building, effectivenessof conflict-managementmechanisms, etc.) and quantitative (numbers of inputs, participants, etc.) indicators for the entire project were agreed upon during project appraisal. These indicatorswill be described in the Operational Manual. The mid-term review workshop will provide an opportunity to draw conclusions from experience and modify practices as required. The workshop will include members of the PMIUstaff, LMU staff, and other partners collaborating in the project and will be open to the communities benefiting. Monitoring reports by the PMU will reflect the findings and conclusions of this workshop.
During appraisal it was agreed that the PM[J will maintain a Project Information and Monitoring System with reporting formats agreed with the Bank through the period of project implementation. The Bank will receive quarterly project management reports not later than April 30, July 31 and October 31 of each year, commencing on April 30, 2001, linking project expenditures to key monitoring indicators of activities carried out during the quarter. In addition, an Annual Progress Report on project implementationwill be presented by January 31 of each year.
D. Project Rationale [This section is not to be completedin a LIL PAD. Rationaleshould be implicit in paragraphB: 3.]
E. SummaryProject Analysis (Detailed assessments are in the projectfile, see Annex8) 1. Economic (see Annex 4): [For LIL, to the extent applicable] O Cost benefit NPV=US$ million; ERR = % (see Annex 4) O Cost effectiveness O IncrementalCost * Other (specify) Not applicable
2. Financial(see Annex 4 and Annex 5): NPV=US$ million; FRR = % (see Annex 4) [For LIL, to the extent applicable] Since the project is a pilot operation, full cost recovery is not a project objective. However, fiscal sustainability is an important consideration in the design of this LIL. Although the GOA has committed itself to improve the living conditions of indigenous peoples, the current level of expenditure on indigenous development activities is low. The planned investments in the project, such as the training of INAI staff and
-8 - the development of materials for indigenous peoples, have low recurrent costs and can be covered by current budgets.
3. Technical: [For LIL, enter data if applicable or 'Not Applicable']
During project preparation, international technical experts in collaboration with indigenous experts living in the beneficiary communities conducted a preliminary technical assessment of possibilities and constraints related to land tenure, natural, resource-use patterns and the social and cultural institutions that are relevant to the establishment of indigenous protected areas in a manner consistent with indigenous cultures and environmentally sustainable practices. Technical feasibility of each specific sub project investment will be analyzed as part of the decision-making process by the LMU and PMU. See Annex 11 for greater detail.
4. Institutional: 4.1 Executing agencies: INAI has a proven record, as demonstrated in successful land titling and social investment project activities, for management of indigenous initiatives. INAI will be assisted by UCAF (Financial Management Unit of the Ministry of Social Development and the Environment) which is successfully providing support to a major World Bank-financed project (see section 4.4). 4.2 Project management: Overall, INAI has the capacity to manage this project. At the pilot area level, there is clear evidence of the capacity of indigenous organizationsto design, implementand assess small development initiatives,as expressed during the IDF Training Program. The relationship between INAI and UCAF is to be refined as part of the project. 4.3 Procurement issues: Procurement would be the responsibility of a Project Management Unit (PMU) established within INAI. Since the PMU does not have the capacity to carry out procurement, an action plan to strengthen the PMU's capacity was agreed on. Due to the relatively small value and large number of contracts, only a few of them would be subject to prior-review by the Bank. Thus, procurement review is expected to primarily be carried out during supervision missions, one every six months. In addition, the Bank shall commission an independent procurement audit by mid-term. 4.4 Financial management issues: The financial management assessment has indicated that UCAF can adequately manage financial matters, including accounts and budget balances (a 4B certification has been given). Nevertheless, the relationship between INAI and UCAF will have to be formally agreed as well as the TORs of the officials acting as liaisons between them. 5. Environmental: Environmental Category: B (Partial Assessment) 5.1 Summarizethe steps undertaken for environmental assessment and EMN preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. Diagnostic-level environmental analyses, conducted as part of project preparation, have identified major environmental issues and opportunities. Site-specific environmental analyses will be conducted for the three areas and will provide the basis for the elaboration of a natural resources management framework as well as the establishment of environmental management plans for mitigation of adverse imnpactsof development investnents identified. The project will finance environmentalstudies and environmental management
-9- plans as needed as part of the preparation of specific sub projects or investments. 5.2 What are the main features of the EMP and are they adequate? Not applicable 5.3 For Category A and B projects, timeline and status of EA: Date of receipt of final draft: At the beginning of project implementationand before disbursement of sub project funds.
5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted? Not applicable 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? A project screening mechanism will be created and operational at the beginning of the project so as to avoid, minimize or mitigate possible adverse impacts. Particular attention will be paid to activities which may lead to extensive harvesting of existing forests, the introduction of exotic plant or animal species, the use of agrochemical inputs in agriculture, etc. 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. A comprehensive social assessment was conducted as part of project preparation, which identified major socioeconomic, cultural, political and other aspects that characterize the targeted indigenous groups. One of the most innovative elements of the project approach is derived from the social assessment process: the direct participation of local community-based organizations in the identification, design and implementation of development investments and resource-managementdecisions. The diagnostic phase of this work included not only indigenous communities, but also non-indigenous stakeholders with interest in the pilot areas. It also identified main current and potential conflicts and tentative strategies for conflict management. Social analysis and participatory planning have already produced a list of possible community-driven, income-earning sub projects in each indigenous pilot area; each project component, with guidance criteria for the selection of sub project organization of investments at the local level; consensus mechanisms and institutional arrangements; and, the selection of performance indicators, monitoring and evaluation procedures. See Annex 11 for greater detail. 6.2 Participatory Approach: How are key stakeholders participating in the project? The project has benefited from a series of workshops supported by the IDF grant over the period 1996-1998 which brought together more than 1200 indigenous leaders pertaining to 14 ethnic groups in Argentina. Some 22 local and regional workshops were held in 6 provinces characterized by the largest concentrations of indigenous population. These leaders represented more than 20 indigenous organizations. The workshops took 3-4 days and involved the participation of government officials from the federal and provincial levels. From these encounters, the idea of indigenous pilot areas was presented by indigenous organizations themselves, and accepted by INAI as an alternative development strategy worth exploring.
In the process of project preparation, planning meetings were held by INAI with the following community-based organizations, NGOs, academic and government institutions active in each of the
- 10- proposed pilot areas:
(a) in Neuquen: the Mapuche Confederation de Neuquen, the Mapuche Coordinating Council, the Interstate Corporation of Pulmari , the University of Comahue, the Planning and Development Action Council for Neuquen Province and the Nuequen Development Corporation;
(b) in Tucumakn:the Center for Investigation and Indigenous Training, the Technological University, the National Institute of Agricultural Technology, the National University of Tucuman and the Provincial Social Council, and
(c) in Salta: the Ecological Research Laboratory of the Yungas, the Integral Promotion Association, the International Foundation for Science; the World Wildlife Fund; INTA; the German Technical Cooperation Agency; and the Agricultural Social Program of Salta.
Each of these organizations or agencies has an operational field presence in the proposed pilot area, and all the community-based organizations are indigenous peoples organizations based in the communities that comprise the proposed pilot areas. These organizations will be potential partners to achieve project success.
Six indigenous professionals, two from each pilot area, nominated by community assemblies and selected by INAI, were hired by the Bank to help prepare the project for their respective groups. These indigenous consultants worked closely with INAI officials and international experts in gathering baseline social, environmental and economic information, designing preliminary strategies for indigenous protected areas, and ensuring that project operational arrangements are compatible with indigenous culture and expectations
6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? See above. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? See Section on Institutional Arrangements. 6.5 How will the project monitor performance in terms of social development outcomes? See Section on Monitoring and Evaluation.
7. Safeguard Policies: 7.1 Do any of the following safeguard policies a ly to the project? Policy Applicability EnvironmentalAssessment (OP 4.01, BP 4.01, GP 4.01) 0 Yes0 No Naturalhabitats (OP 4.04, BP 4.04, GP 4.04) 0 Yes 0 No Forestry(OP 4.36, GP 4.36) * Yes0 No Pest Management(OP 4.09) * YesO No CulturalProperty (OPN 11.03) * YesO No IndigenousPeoples (OD 4.20) * YesO No InvoluntaryResettlement (OD 4.30) 0 Yes 0 No Safety of Dams (OP 4.37, BP 4.37) O Yes * No Projects in InternationalWaters (OP 7.50, BP 7.50, GP 7.50) 0 Yes 0 No
- 11 - D Projects in Disputed Areas (OP 7.60. BP 7.60. GP 7.60) D Yes Z No
7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. The Governrent of Argentina has conducted a Social Assessment illustrating the readiness of indigenous communities to proceed with the project. Compliance with additional safeguard policies will be assured through screening of sub projects to be financed during project implementation. The project itself fulfills OD 4.20 requirements since indigenous peoples are the direct beneficiaries and participants.
F. Sustainabilityand Risks 1. Sustainability: This section is not to be completed in LIL PAD.
2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1): Risk Risk Rating Risk MitigationMeasure FromOutputs to Objective The targeted areas do not benefit from M INAI will coordinate with other government infrastructure and the provision of social agencies and donors in order to improve services from other development indigenous communities access to programs and institutions in a complementary goods and services, such as complementary way. water and sanitation, health and education. Economic conditions do not permit the N Emphasis is on investments on micro-enterprises establishment of new enterprises. which largely respond to local demand.
From Componentsto Outputs Indigenous leaders and N Besides strengthening indigenous communities GOA will not remain committed to project and the implementation capacity of INAI, the as a learning process. project will dedicate all efforts necessary to foster positive interaction patterns between them, thus ensuring their interest in the project. Key studies, consultation processes, and M Key studies such as the social assessment and pilot activities are not executed on time. consultation processes have advanced during project preparation. Indicative plans for each indigenous community, with a preliminary identification and prioritization of pilot activities, have also been prepared. Delays in procurement of goods and M INAI will create the conditions for effective services. procurement. In addition, the presence of the Co-Task Team leader in the Argentina Resident Office will allow for a close supervision to ensure that these actions are done in a timely manner.
Overall Risk Rating M Risk Rating - H (High Risk), S (SubstantialRisk), M (ModestRisk), N(Negligibleor Low Risk)
3. Possible Controversial Aspects:
- 12 - 3. PossibleControversial Aspects: Resolvingland tenure issuesis likelyto producecontroversy in at least somecases. At presentboth federal and state authoritieshave constitutionalrights vis-a-vis land holdingsso that tensionsbeyond those normallyexpected between indigenous people and "government"may be expected.The projectwould not becomeinvolved in these disputes.INAI, however, is expectedto continueits active supportfor the regularizationof indigenouscommunity lands.
G. Main LoanConditions 1. EffectivenessCondition Establishmentof appropriateaccounting procedures for INAI and the LMUsto receiveand manage projectfinances. Issuanceof a Project OperationalManual.
2. Other. Disbursementof sub projectfunds for each LMUto beginwhen collaborationagreement between INAI and the indigenouscommunity is reached.
H. Readinessfor Implementation OI 1. a) The engineeringdesign documents for the furstyear's activities are completeand ready for the start of projectimplementation. Z 1. b) Not applicable.
C12. The procurementdocuments for the first six months'activities are completeand ready for the start of projectimplementation; and a frameworkhas been establishedfor agreementon standardbidding documentsthat will be used for ongoingprocurement throughout the life of LIL Z 3. The LIL'sImplementation Plan has been appraisedand found to be realisticand of satisfactory quality. LJ 4. The followingitems are lackingand are discussedunder loanconditions (Section G):
1. Compliancewith Bank Policies 1 1. This projectcomplies with all applicableBank policies. C 2. The followingexceptions to Bankpolicies are recommendedfor approval. The projectcomplies with all other applicableBank policies.
Jorge E. UquillasRodas John Redwood Myra Alexander TeaM Leader Sector Manager/Director CountryManager/Director
-13- Annex 1: Project Design Summary ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL Key Performance Hierarchyof Objectives Indicators Monitoring& Evaluation CriticalAssumptions Sector-relatedCAS Goal: SectorIndicators: Sector/country reports: (fromGoal to BankMission) Rural developmentand Acknowledgmentby Projectsponsored Improvedmanagement of povertyreduction as well as independentevaluators that assessments naturalresources and the protectionand management knowledgeand practices environmentwould enhance of naturalresources. (conditionsgenerating sustainablecommunity adoptionof technology)for developmentthrough the sustainableuse of improvementin the naturalresources have productivityof improvedin targetedareas resource-basedactivities.
Follow-onDevelopment Objective: The well beingof Acknowledgmentby Project sponsored No outsidefactors like Argentina'sindigenous indigenouscommunities that self-evaluations naturaldisasters and/or peoplesis improvedby livingconditions are economiccrisis have implementingcommunity improving,including a intervenedto affect living drivenapproaches to bettergender balance, since conditionsof indigenous communitydevelopment and projectstarted communities. environmentalprotection. implementation. Objectivemeasures of Independentsurvey of qualityof life indicators. conditions
GEFOperational Program:
- 14 - Key Performance Hierarchyof Objectives Indicators Monitoring& Evaluation CriticalAssumptions ProjectDevelopment OutcomeI Impact Projectreports: (fromObjective to Goal) Objective: Indicators: Establish the basis for -Local indigenous social Project-sponsored GOA commitment to community-driven organizationslegally participatorymonitoring and indigenous community development and the recognizedand functioning impact evaluations (with development remains strong. protection and management by the end of project. baseline and follow-up of natural resources on -Indigenouscommunities studies) to be undertaken Key legal/fiscal/institutional indigenouscommunity participating in capacity with results incorporated reforms will be adopted by lands. This includes building activities. into community Provincial and/or national strengthening social -Mechanismsfor solving development and natural Congress as well as by organization and culture and land tenure conflicts in resource management plans. institutions involved in building indigenous communitiesdeveloped and social sector issues and capacities for sustainable tested by end of project. indigenous affairs. development in a - A legal framework for the gender-sensitivemanner, as creation of Indigenous Stakeholders agree to a well as improvingthe Protected Areas has been process of land delivery of government developed by first year of regularization and services to indigenous project. co-management of natural peoples, reinforcing the -Five year community resources with indigenous links between government sustainable development organizations. agencies and indigenous plans designed by year 1. communities. -At least 2 successful new Political interference from types of economic government and traditional alternatives identified and conflicts among indigenous tested in each targeted area peoples are kept at a (including activities led by minimum level. women) by year 2 of project. -Adoption rates for sustainable production activities have increased by end of project. -National Plan of Indigenous Communities Development formulated by year 2 of project.
GlobalObjective:
- 15 - Key Performance Hierarchyof Objectives Indicators Monitoring& Evaluation CriticalAssumptbons Outputfrom each OutputIndicators: Projectreports: (fromOutputs to Objective) Component: (i) Key social and cultural -3 participatory diagnostic Results of semi-annual The targeted areas benefit factors of community driven studies by year I monitoring and evaluation from infrastructure and the development identified -3 community organizations (with pilot activities provision of social services strengthened in development evaluated on completion) from other development skills by end of project reported to PM`Uensures programs and institutions in results properly a complementary way. incorporated into community development plans. (ii) Improved local -3 integrated plans of Economic conditions permit development and natural community development and the establishment of new resource management plans natural resources enterprises. formulated management by year I - process to achieve land tenure security initiated in 3 communities of target areas by end of project (iii) Innovative approaches -6 pilot community sub to community development projects in agroforestry and and sustainable use of "eco" and "ethno" tourism natural resources tested implemented by year 2 - 15 community sub projects of basic infrastructure for production implemented by end of project (iv) Coherent and effective -environmental screening of institutional arrangements sub projects in place by year identified at the central and 1 local levels, including an -I Project Management Unit efficient project monitoring and 3 Local Management and evaluation system Units created and operational by end of project -I Monitoring and Evaluation System created and operating efficiently by end of project (v) Possible follow-up -I APL proposal designed investments identified by year 2 of project
-16 - Key Performance Hierarchyof Objectives Indicators Monitoring& Evaluation CriticalAssumptions ProjectComponents / Inputs: (budgetfor each Projectreports: (fromComponents to Sub-components: component) Outputs) (1) Social and Cultural (1) US$1.6 million Results of participatory Indigenous leaders and Strengthening of Indigenous monitoring and evaluation GOA remain committed to Communities reported to the PMU; PMU project as a learning * Support to local ensures results properly process. indigenous organizations incorporated into plans and Timely execution of key * Support to indigenous prepares regular reports. studies, consultation cultural heritage process, and pilot activities. * Land regularization Timely procurement of (including legal assistance goods and services and conflict resolution) * Planning Local Community Development and Natural Resource Management * Cultural exchange and gender workshops * Learning events (2) Sustainable Use of (2) US$2.2 million Natural Resources * Water management * Agricultural diversification * Pasture management * Forestry * Artisan production * Market exchanges Tourism
(3) Project Management (3) US$1.4 million * Implementation arrangements * Monitoring and evaluation * Dissemination of lessons learned (4) Unallocated (4) US$0.6 million
-17 - Annex 2: Detailed Project Description ARGENTINA: INDIGENOUS COMMUNITY DEVELOPMENT LIL
By Component:
ProjectComponent I - US$1.60million Social and Cultural Strengtheningof Indigenous Communities
The social and cultural strengthening of indigenouscommunities will be supportedthrough capacity building for self-developmentand the promotion of activities closely related to their traditional knowledge and culture, including handicrafts, ethno or cultural tourism strategic planning and cultural exchanges and networking. An activity of special interest to the project is the provision technical assistance in legal and conflict resolution issues related to the establishment of Indigenous Pilot Areas.
Special technical support will be given to strengthen the capacity of INAI and indigenous organizations to carry out legal and regulatory actions related to the irmplementationof this project. Actions expected in this component will cover: assistance to complete the registration and regularizationof property rights in the three pilot areas; preparation of subsidiary legal instruments related to the establishment of the IPA; legal instruments to guarantee the management of natural resources by indigenous peoples; mechanisms to assure active involvement and participationof indigenous authorities in the new legal and regulatory framework; custom-tailoredsolutions to legal conflict in protected areas. This will require the close collaboration of INAI with the indigenous communities and their traditional authorities in order to advance/consolidatethe land regularizationprocess and secure indigenous rights over land and natural resources.
This component comprises the following sub-components:
1. Capacity building and studies 2. Technical assistance in legal matters and conflict resolution 3. Local planning 4. Cultural exchange and gender workshops 5. Learning events 6. Improving basic social services
The design of specific sub projects will be based on key concepts which have been analyzed and reached full agreement during project preparation, namely: self-development,co-management and consensus-building.(1) Self-developmentconsists in the right and capacity of indigenouspeoples to decide on an autonomous manner the contents and methods of development programs to be carried out in their communities and lands. Specifically,these programs should be compatible with traditional cultural values and strengthen the culture of indigenouspeoples. (2) Co-management is understood as a process of negotiation and consensus building between the different public and private social actors that intervene in the administration of land and natural resources as well as in the implementationof economic activities that affect indigenous peoples. Co-managementrequires of an active process of conflict resolution and networking. (3) Consensus-buildingis closely related to the previous concept. Consensus is a necessary condition for the strengthening of indigenous communities and their organizations so that they can administer efficiently their lands and natural resources and build partnerships with other social actors in order to secure their land rights and cultural identity.
ProjectComponent 2 - US$2.20 million
- 18 - Sustainable Use of Natural Resources
In each Indigenous Pilot Area the project will formulate a community-based natural resources management plan, which delineates priority resources for conservation, areas for sustainable development investments, and specific development sub projects Proposed sub projects will each require further elaboration of specific environmental mitigation mechanisms. The Bank loan will finance environmental analysis, resources assessments, applied research, extension services, soil/water/forest management planning, marketing studies for selected sub projects (to be financed on a demand-driven basis, including, among others, soil and pasture improvement, community forestry, watershed management, micro-irrigation, spot improvement of rural roads, marketing, post-harvest community infrastructure, and technical assistance for agriculture, livestock, management of archeological sites, eco-tourism etc.). A gender approach will be adopted, so as to ensure that both men and women have access to the goods and services offered by the project. In sum, this component comprises the following sub-components:
1. Pilot water management and agricultural diversification projects 2. Pilot pastures and livestock management 3. Pilot forestry and agroforestry sub projects 4. Artisan production ,. Pilot eco- and ethno-tourism projects 6. Basic infrastructure for production
Detailed sub project eligibility criteria would be included in a Project Operational Manual acceptable to the Bank. The tentative strategy for protection and development in each pilot area is briefly outlined below (see Annex 11 for greater details).
For the Mapuche pilot area (Hacienda Pulmari, Neuquen Province), the expected specific benefits will be the strengthening of traditional institutions and practices to facilitate integration of dispersed populations and consensus mechanisms among the six communities that currently occupy the Pulmari area and other stakeholders to manage communal pastures, forests, and alternative opportunities such as eco-tourism Evidence that the project propitiated better living conditions for Mapuche communities, stronger cohesion and control on decisions that affect their lives, territory and culture and environmental protection of the existing biodiversity and endangered species (e.g. the Pehuen Tree), is expected in the project evaluation results.
For the Kolla pilot area (Finca Santiago, Salta Province), the expected specific benefits will entail the consolidation of internal economic exchange system between the Kolla communities located in the high and low areas, consensus mechanisms to manage communal pastures, forests, irrigation water and profits resulting from the value-added processes to forest resources and other market oriented economic opportunities. Evidence that the project improved current living conditions for the poorest communities of the highlands (Puna), initiated of market-production activities, generated stronger cohesion among the Kollas, and better integration between the Kolla traditional institutions and local government is expected in the project evaluation results.
For the DiaguitalCalchaqui/Quilmes pilot area (Amaicha del Valle, Tucuman Province) the expected results will be a self-developed, integrated cultural and natural resource strategy based on the management of pre-Hispanic archaeological places for cultural tourism purposes, for the purposes of generation of income and the rescue of traditional cultural identity, combined with services and rational use of communal water resources and subsistence productive activities.
- 19- A participatory social assessment process started during preparation will continue during implementation. It will be conducted by community-based organizationsto identify social issues, conflict management mechanisms and potentially equitable solutions. Major social issues already identified center on equity among factions of the community and enhancing the opportunities for women and youth to reverse current out-migration pattems and consolidate communities around shared development activities. The transparent allocation of project development resources in relation to the solutions agreed through consensus by beneficiaries regarding equity, women and youth is expected to contribute significantlyto building solidarity, mutual trust and social capital in each indigenous groups.
ProjectComponent 3 - US$1.43 million Project Management
This component will have the following sub-components:
1. Project administration 2. Monitoring and evaluation 3. Communications and dissemination
Project administration support includes incremental costs of a Project Management Unit (PMU) to be created in INAI consisting of the Director of INAI, three INAI technicians, and necessary administrative personnel. A Sub projects Committee to review and approve expenditures above a threshold will be established on an as needed basis. The PMU will be responsible for overall coordination, monitoring, mid-term review, evaluation and reporting. Local Management Units (LMU) will be created in each of the three pilot areas by INAI, consisting of a Project Manager/Administrator and a Secretary/Accountant. In addition, a series of Technical Advisers will be hired for short-term assignments to work with the Technical Group (TG) in the LMU on project implementation as well as supporting the monitoring and reporting functions of the LMU to PMU. Terms of Reference for the LMU and the Technical Advisers will be specified in the operations manual for each Indigenous Community Pilot Area. The project will also finance the incremental equipment needs for the LMU function, including vehicles, computers, and accounting and planning software for each of the three areas. As needed INAI will provide administrative support from counterpart resources from its headquarters staff under the administrative responsibility of the Director.
Each pilot zone LMU will contract short-term consultants to serve as a Technical Group (TG) to support the design, implementation and evaluation of specific development sub projects The project will finance equipment for the TG function, including computers, telephone, fax, photocopier, etc. The TG will also generate primary data for the monitoring and reporting requirements of INAI, as well as for capacity building of community leaders and representatives in carrying out these functions. The project will foster training workshops, encounters among stakeholders, meetings among clusters of beneficiaries to incorporate them in program activities as well as open community meetings at which LMU quarterly monitoring reports are presented and discussed prior to their submission to the PMU. The project will also finance a mid-term review among all stakeholders to identify lessons learned and make adjustments to the strategies of each protected area as needed
Independent contractors will carry out an end-of-project Development Impact Assessment. While the project management (monitoring) function will focus mainly on performance indicators, the concurrent evaluation will be designed to focus upon results on the ground as measured by outcome indicators and reviewed with the community. The indicators may include accumulation of assets, rising social cohesion, initiation of new credit relationships by producers, purchase agreements with private sector buyers, innovation of productive activities, adoption of conflict management and consensus building mechanisms,
- 20 - etc. The evaluation will assess the viability of the models established for the three pilot indigenous areas for the purpose of scaling up by INAI to other regions and indigenous communities.
An active communications and disseminationprogram will be supported as part of this component. Using the appropriate media (radio, printed materials, audiovisuals), the program will keep the indigenous communities and other stakeholders informed about the project. It will reproduce and distribute results of the studies undertaken during the life of the project, the lessons leamed, and the advances made in the implementation process.
- 21 - Annex3: EstimatedProject Costs ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL
Local Foreign Total ProjectCost By Component US $million US $million US $million 1. Socialand CulturalStrengthening of Indigenous 1.20 0.40 1.60 Communities 0.00 2. SustainableUse of NaturalResources 1.40 0.80 2.20 0.00 0.00 3. ProjectManagement 1.10 0.33 1.43 TotalBaseline Cost 3.70 1.53 5.23 PhysicalContingencies 0.00 0.00 0.00 PriceContingencies 0.60 0.00 0.60 Total ProjectCosts 4.30 1.53 5.83 Front-endfee 0.05 0.05 TotalFinancing Required 4.30 1.58 5.88
-22 - Annex 4: Cost Benefit Analysis Summary ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL
NA
Summary of Benefits and Costs: NA
Main Assumptions: NA
Sensitivityanalysis / Switchingvalues of critical items: NA
-23 - Annex 5: Financial Summary ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL Not applicable
-24 - Annex 6: Procurementand DisbursementArrangements ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL Procurement
A. General
All procurement of goods under the Project would be carried out in accordance with the "Guidelines, Procurement under IBRD Loans and IDA Credits " dated January 1995 and revised in January and August 1996, September 1997, and January 1999. Consultants would be employed in accordance with the Guidelines,Selection and Employmentof Consultantsby WorldBank Borrowers,dated January 1997and revised in September 1997 and January 1999, and the provisions stipulated in the Loan Agreement
Procurement methods: The methods to be used for procurement are described below and the estimated amounts for each method, are summarized in Table A. The thresholds contract values for the use of each method are established in Table B.
B. Procurement Responsibilities and Capacity
Procurement for the Project would be the responsibility of a Project Management Unit (PMU) established within National Institute for Indigenous Affairs (INAI-Instituto Nacional de Asuntos Indigenas). The PMU will receive financial and procurement management support from Financial Management Unit of the Ministry of Social Development and the Environment (UCAF), which is currently handling another Bank-financed project (AR 4398 - Social Protection IV).
A procurement capacity assessment of UCAF was carried out by Andres Mac Gaul, Procurement Specialist, LCOPR, and was approved by the Regional Procurement Advisor's Office on June 2, 2000. The "Overall Procurement Risk" was assessed as "high".
The assessment determined that the UCAF's capacity to carry out procurement is not adequate due to its lack of experience on Bank procurement, particularly in respect of goods and consulting services. On the other hand, UCAF's information and office equipment, support staff, and record keeping system are overall adequate, although the latter should be improved.
To handle the risks and to strengthen the PMU's capacity the action plan that follows was agreed on:
1. Before October 31, 2000, a Procurement Specialist acceptable to the Bank should be appointed by the PMU. This consultant will help draft the project OM (Operational Manual) and carry out procurement work on an "on call" basis. At least, the consultant should assist the PMU -preferably within UCAF- in preparing standard documents and in handling all the procurement subject to prior review by the Bank, with exception of the contracts to be used for the hiring of individuals. In this case, the model of contract in use in the Social Protection IV Project can be used, since the Bank has already reviewed it.
2. Before LIL effectiveness the OM of the Project should be approved by the Bank and adopted by the Borrower. The OM should detail -inter alia- procedures on record keeping, including specifics on logging and filing correspondence.
Local communities, which will be beneficiaries of the grants, are represented by Indigenous Organizations
-25 - with legal personality, and basic political and administrative structures. Most of these organizations have participated in previous development projects sponsored by Provincial Governments and NGOs and jointly administered grants ranging from US$ 30,000 to 40,000. However, these Indigenous Organizations have only recently been established as structured communities. Consequently, they have little experience in financial and administrative matters, including procurement. Most of them have only very basic accounting notions and systems. Only one of the organizations currently holds a checking account and only few have any office equipment or adequate space where to establish administrative offices.
The communities' participation in the process would be facilitated by Local Management Units (LMIJs) reporting to the PMU. LMUs would comprise elected representatives of the communities and technical/administrative staff whose appointment would be cleared by the PMU to ensure that they are qualified and the selection process is transparent. The LMUs would be responsible for making procurement decisions, maintaining accurate procurement records for the sub projects administering the contracts jointly with the beneficiary communities, and monitoring implementation. Consequently, grant beneficiaries, officially represented by the Indigenous Organizations,would be actively involved in procurement for the sub projects by participating in procurement planning, selection of supplier/contractors through shopping procedures, and selection of individual consultants, where these methods are appropriate. Contracts to be awarded on the basis of NCB and contracts with consulting firms, if any, would be procured by UCAF. The LMUs would carry out their responsibilities under the supervision of and with technical assistance from the PMU. The PMU, with financial management support from UCAF would be solely responsible for managing the project account and making payments in tranches at the beneficiary's request and based on work completed. The details of this assistance would be included in the Project Operational Manual.
T'he last CPAR for Argentina indicates that some of the requirements of domestic procurement legislation are not in accordance with Bank procurement policy and procedures. Consequently, the following Special Provisions should be included in the Loan Agreement:
1. The results of bid evaluations shall remain confidential until award of contracts. After award, the PMU/UCAF may disclose upon request to a bidder information relating to its own bid, and upon request by any bidder, a summary of the evaluation and comparison of bids may be disclosed.
2. Time for bid preparation shall not be less than 10 days in the case of shopping, and 30 days in the case of NCB, respectively.
3. Promissory notes issued by bidders or checks issued by local banks shall not be an acceptable form of bid or performance securities.
4. The price of bidding documents shall reflect the cost of reproducing and mailing the documents and not be related to the estimated cost of the contract.
5. The standard technical specifications for office technology issued by the Secretariat of the Public Function shall not be used for the purchase of office equipment financed by the loan.
C. Procurement Arrangements 1. Procurement of Works
No procurement of Works is anticipated under the project.
- 26 - 2. Procurement of Goods
The Project would finance several small contract packages for the purchase of vehicles, computers and software, and miscellaneous office equipment for the operational needs of the PMU and the LMUs estimated to cost a total amount of US$280,000 equivalent. Contracts estimated to cost less than US$100,000 equivalent up to an aggregate amount of US$280,000 equivalent, may be procured following shopping procedures in accordance with paragraphs 3.5 and 3.6 of the Guidelines.
Shopping procedures, including a standard invitation to submit quotations, would be agreed before the first invitation is issued.
3. Consultant Services
The loan would finance technical assistance, studies and capacity building. Consulting services would be required to strengthen the capacity of INAI and indigenous organizations to carry out legal and regulatory actions related to the project, including conflict resolution related to the establishment of the Indigenous Protected Areas and assistance to complete the registration of property rights. Capacity building would include self-developmentand promotion of activities related to the indigenous communities' traditional culture.
Firms
Contracts with firms, if any, would be awarded following a Quality and Cost Based Selection process, in accordance with Section II of the Consultant Guidelines. For contracts costing $ 100,000 or less selection may be on the basis of Least Cost Selection method. Contracts for specialized advisory services for indigenous communities costing $ 50,000 or less may be awarded on the basis of Consultant's Qualifications.
Individuals
Specialized advisory services for project administration and monitoring that do not require of a team effort may be contracted with individuals up to an aggregate amount of $420,000. The Individual consultants would be selected on a competitive basis in accordance Section V of the Consultants Guidelines. As a minimum, individuals would be recruited by comparison of qualifications of at least three qualified candidates. The process followed to select individual consultants shall be described in detail in the Operational Manual.
4. Sub projects
Grants for an aggregate amount of US$2,430,000 equivalent would be awarded for the social and cultural strengthening of indigenous communities. Sub-project eligibility and selection criteria agreed with the Bank would be detailed in the Operational Manual. Procurement of goods and contracting of consulting services by the communities shall be carried out on the basis of competitive procedures similar to those used for procurement by UCAF. The OM shall detail those procedures.
In addition to their participation in the LMUs, communities would be involved in making decisions affecting the Project through their representatives in the Advisory Council responsible for ensuring the active participation of the communities in the process and supervising the overall progress in meeting
- 27 - Project objectives.
The Project would also finance technical assistance to further assess internal decisional processes, organizational and administrative/financial capacity of the Indigenous Organization, analyze lessons learned from their previous and current involvement in implementing sub projects and develop simple standard contracting and conflict resolution methodologies, technical specifications, manuals and procedures for transportation and maintenance of basic goods and equipment. Technical assistance and training for capacity building would aim at strengthening the indigenous organizations' procurement and financial management capacity to make sure that by the end of the Project they are capable to carry out procurement independently and have adequate financial management and reporting capabilities. A specific joint action plan to build the organizations' and the communities' administrative capacity would be also included in the agreements concluded by the PMU and each of the Provinces in which these are located.
5. Prior Review
The review of procurement actions by the Bank is presented in Table B. Due to their relatively small value and large number, only a few contracts would be subject to prior-review by the Bank. Thus, procurement review is expected to primarily be carried out during supervision, as described below.
An OM would be prepared and adopted by the PMU prior to loan effectiveness to ensure acceptable procedures for procurement, accounting, disbursement and auditing, as agreed for all IBRD operations, and provide proper guidance for the project specific operations, including relations with the LMUJs,the Provincial Governments and beneficiaries of the grants. The OM will also be updated to include specific operating and control mechanisms agreed under the financial and physical monitoring system.
6. Procurement Supervision
Procurement supervision missions should be carried out every six months by a Procurement Specialist (PS) or Procurement Accredited Staff (PAS) and include a review of: (i) the PMU's capacity; (ii) the procurement plan for the project, including a timetable for procurement actions anticipated during the next 12 months; (iii) the PMU's monitoring system; and (iv) complete records for one in every five contracts (for goods, works, and consulting services, respectively). The PS or PAS should perform selected physical inspections of the goods received and meet with selected suppliers/contractors,whenever possible. During the mission the PS or PAS will discuss with PMIJ staff procurement for the project as well as under the grants, including the respective procurement plans prepared by the LMUs. In addition, the PS or PAS will visit at least one LMU each time to review their capacity and examine the files of selected contracts for each type of procurement.
In addition, the Bank shall commission an independent procurement audit by mid-term.
- 28 - Procurementmethods (Table A)
Table A: ProjectCosts by ProcurementArrangements (US$ millionequivalent)
ProcurementMethod ExpenditureCategory ICB NCB Other2 N.B.F. Total Cost
1. Works 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 2. Goods 0.00 0.00 0.28 0.00 0.28 (0.00) (0.00) (0.20) (0.00) (0.20) 3. Services 0.00 0.00 0.82 0.00 0.82 (ConsultingServices) (0.00) (0.00) (0.80) (0.00) (0.80) 4. CommunitySub Projects 0.00 0.00 2.93 0.00 2.93 (0.00) (0.00) (2.43) (0.00) (2.43) 5. Front-endfee 0.00 0.00 0.05 0.00 0.05 (0.00) (0.00) (0.05) (0.00) (0.05) Training 0.00 0.00 0.77 0.00 0.77 (0.00) (0.00) (0.71) (0.00) (0.71) Operating and Unallocated 0.00 0.00 1.03 0.00 1.03 Costs31 (0.00) (0.00) (0.81) (0.00) (0.81) Total 0.00 0.00 5.88 0.00 5.88
______(0.00) (0.00) (5.00) (0.00) (5.00) " Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies Includes shopping, consulting services, training, technical assistance services, and incremental operating costs related to (i) managing the project, and (ii) on-lending to communities. 3/ Operating $370 (250) and Unallocated Costs $660 (560) have been added in the table due to format limitations.
-29 - Table Al: Consultant Selection Arrangements (optional) (US$ millionequivalent)
Consultant Selection Method Services Expenditure QCBS QBS SFB LCS CQ Other N.B.F. TotalCost Category A. Firms 0.10 0.00 0.00 0.30 0.00 0.00 0.00 0.40 (0. 10) (0.00) (0.00) (0.30) (0.00) (0.00) (0.00) (0.40) B. Individuals 0.00 0.00 0.00 0.00 0.42 0.00 0.00 0.42 (0.00) (0.00) (0.00) (0.00) (0.40) (0.00) (0.00) (0.40) Total 0.10 0.00 0.00 0.30 0.42 0.00 0.00 0.82 (0.10) (0.00) (0.00) (0.30) (0.40) (0.00) (0.00) (0.80) 1\ Includingcontingencies
Note: QCBS= Quality- and Cost-BasedSelection QBS Quality-basedSelection SFB = Selectionunder a Fixed Budget LCS = Least-CostSelection CQ = SelectionBased on Consultants'Qualifications Other = Selectionof individualconsultants (per SectionV of ConsultantsGuidelines), CommercialPractices, etc.
N.B.F.= Not Bank-financed Figuresin parenthesisare the amountsto be financedby the BankLoan.
- 30 - Prior reviewthresholds (Table B)
Table B: Thresholds for Procurement Methods and Prior Review'
Contract Value Contracts Subject to Threshold Procurement Prior Review Expenditure Category (US$thousands) Method (US$ millions) 1. Works
2. Goods <100,000 Shopping First 3 contracts; approx. $75,000 3. Services Firms >100,000 QCBS All >50,000 LCS First three <50,000 CQ Nil Individuals >50,000 Guidelines, Section V All
Total value of contracts subject to prior review: $ 1,000,000
Overall Procurement Risk Assessment
High
Frequency of procurement supervision missions proposed: One every 6 months (includes special procurement supervision for post-review/audits) A procurement audit shall be carried out at mid term. Thresholds1 generally differ by country and project. ConsultOD 11.04 "Reviewof Procurement Documentation"and contact the RegionalProcurement Adviser for guidance.
- 31 - Disbursement
Allocationof loan proceeds(Table C) A financialmanagement assessment was carried out by SusanaCirigliano (LCCOA) in May 2000 and foundthat the implementingagency currently satisfies the Bank'sminimum financial requirements and meets the conditions stated in Annex4-B of the LACI ImplementationHandbook. An action plan and timetablehas been agreedto remedy someinadequacies identified and is enclosedto the certificate.
Table C: Allocationof Loan Proceeds
ExpenditureCategory Amountin US$million FinancingPercentage Goods 0.20 70% Consulting Services 0.80 100% Sub-projects 2.43 80% Training 0.71 90% Operating Costs 0.25 100% the first $125,000, 60% the next $80,000 and 40% the rest. Unallocated 0.56
Total ProjectCosts 4.95 Front-endfee 0.05 100% Total 5.00
- 32 - Annex 7: Project Processing Schedule ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL
Project Schedule Planned Actual Timetaken to preparethe project(months) 5 16 First Bankmission (identification) 11/16/98 11/16/98 Appraisalmission departure 04/10/2000 04/24/2000 Negotiations 04/15/2000 05/05/2000 PlannedDate of Effectiveness 10/01/2000
Preparedby: Jorge E. Uquillas
Preparationassistance: Karen Ravenelle
Bank staff who workedon the projectincluded: Name Speciality Jorge E. Uquillas, Task Manager Senior Sociologist, LCSES Sandra Cesilini, Co-Task Manager Civil Society/Social Development, LCC7C Maria Clara Mejia Social Scientist William Partridge Principal Anthropologist Susana Cirigliano Country Financial Management, LCC7C David Varela Counsel, LEGLA Andres Mac Gaul Country Procurement, LCC7C Soren Gigler Consultant, LCSES Karen Ravenelle Project Assistant, LCSES Kevin Healy Peer Reviewer Robert Crown Project Design Filemon Torres Natural Resource Management Enzo de Laurentis Procurement, LCSES Teresa Genta-Font Counsel, LEGLA Jorge Nahuel Indigenous Consultant (Mapuche) Manuel Galvarino Cafulqueo Indigenous Consultant (Mapuche) Luis Alberto Pastrana Indigenous Consultant (Diaguita) Juan Santiago Santos Indigenous Consultant (Quilmes) Egidios Ramos Indigenous Consultant (Kolla) Ruben Vargas Indigenous Consultant (Kolla)
- 33 - Annex 8: Documentsin the Project File* ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL
A. ProjectImplementation Plan 1. Draft Project Implementation Plan. Submitted in March 2000.
B. Bank StaffAssessments 1. Problemas y Oportunidades para el Fortalecimiento y Desarrollo de Aspectos de Comunidades Diaguitas de los Valles Calchaquies Tucumanos. Aspectos Ambientales y Sociales. Filemon Torres, Beatriz Cachero. Enero 1999. (Spanish)
2. Problemas y Oportunidadespara el Fortalecimiento y Desarrollo de Aspectos de Comunidades Kolla en Yungas/Pre-Puna de Finca Santiago en Salta. Aspectos Ambientales y Sociales. Filemon Torres, Beatriz Cachero. Febrero 1999. (Spanish)
3. Problemas y Oportunidades para el Fortalecimiento y Desarrollo de Aspectos de Comunidades Mapuche en los Bosques Andino-Patagonicos. Aspectos Ambientales y Sociales. Filemon Torres, Beatriz Cachero. Marzo 1999. (Spanish)
4. Evaluaci6n Social. Maria Clara Mejia. Marzo 2000. (Spanish with an English Executive Summary)
5. Assessment of the Agency's Capacity to Implement Project Procurement; Setting of Prior Review Thresholds; Procurement Supervision Plan. Andres Mac Gaul. June 2000.
C. Other 1. INAI: Concepto Legal: Posibilidad de establecer Areas Indigenas Protegidas en las Provincias donde habitan las Comunidades: Salta, Tucumdn y Neuquen y la situaci6n de las Comunidades en relaci6n a la propiedad de las Tierras. Viviana Canet / Luis Zapiola. Subdirecci6n Area de Personeria Juridica y Tierras. Agosto de 1999.
2. INAI: Proyecto de Desarrollo Sustentable de las Comunidades Indigenas. Mayo 2000. (Spanish)
2. Technical Documents
1. API/PSA, 1999. Asociaci6n para la Promoci6n Integral y Programa Social Agropecuario: C. Redin y M. Ezcurra, Comunicacion personal.
2. Bendini, M. Y P. Tsakoumagos, 1993. Campesinadoy Ganaderia Transhumante en Neuquen. Universidad Nacional del Coma/ue - La Cohlnena
3. Bianchi, A. R. Y C. Yaniez, 1992. Las precipitaciones en el noroeste Argentino. INTA.
4. Brown, A. D. 1995. Las Selvas de Montana del Noroeste Argentino: problemas ambientales e importancia de su conservaci6n. En Investigaci6n, Conservaci6n y Desarrollo en Selvas Subtropicales de Montania, Ed. por Brown, A.D. y H.R. Grau, Laboratorio de Investigaciones Ecol6gicas de las Yungas
- 34 - (LIEY), Facultad de Ciencias Naturales e Instituto Miguel Lillo. Universidad Nacional de Tucuman.
5. Brown, A. D., y H. R. Grau, 1993. La Naturaleza y el Hombre en las Selvas de Montana. Colecci6n Nuestros Sistemas. Proyecto GTZ - Desarrollo Agroforestal en Comunidades Rurales del Noroeste Argentino.
6. Burkart, R. et. al., 1994. El Sistema Nacional de Areas Naturales Protegidas de la Argentina: diagn6stico de supatrimonio naturaly su desarrollo institucional. Administraci6n de Parques Nacionales. Enero.
7. CIP, 1998. Pulmari y su estrategia de desarrollo de cara al nuevo milenio. Espacio de Publicidad en el Diario Rio Negro del 29/6/1998
8. Chauky, F., 1999. Comunicaci6n personal (Dirigente CK-FS)
9. COM-N, 1997. Pulmari - Territorio Indigena Protegido. Coordinaci6n de Organizaciones Mapuche - Nequen. Mimeo.
10. COPADE, 1985. Propuesta para el Desarrollo del Establecimiento Pulmari y su Area de Influencia. Consejo Provincial de Planificaci6ny Acci6n para el Desarrollo. Documento Interno.
11. CMN, 1996. Pulmari - Demanda de Reparaci6n TerritoriaL Confederaci6n Mapuche Neuquina. Documento.
12. Corcuera, J., La Selva Misteriosa Buenos Aires, 1997.
13. DGT, 1997. Origen y Situaci6n Actual de la Corporaci6n Interestadual Pulmari. Direcci6n General de Tierras de la Secretaria de Estado de Producci6n y Turismo. Documento del 5/2/97
14. EEAOC, 1996. Desarrollo Agricola de los Valles Calchaquies Tucumanos, Etapa I. Estaci6n Experimental Agropecuaria Obispo, Colombres. Septiembre.
15. Frites, E., 1999. Comunicacion Personal (Abogado, CK-FS)
16. Grau, A. y Gonzales Lelong, A., 1997. Desarrollo Agricola de los Valles Calchaquies Tucumanos, Etapa 1. EEAOC, Septiembre.
17. Grupo Bristol, 1992. Relevamiento Forestal y Biol6gico del Area de Pulmari. Septiembre.
18. INAI, 1994-99. Relevamientos e Informes realizados por las Areas de Proyectos de Desarrollo y Asuntos Juridicos del INAI en las Comunidades del.Area de Alumine. Instituto Nacional de Asuntos Indigenas.
19. INTA, Evaluacion de los Recursos Naturales Renovables del Area Pulmari y Recomendaciones Orientativas para su Aprovechamiento Sustentable. Bariloche, Julio 1999.
20. Isla, A. R., 1996. Identidady Estructura Social en los Valles Calchaquies, Tucumanos: el Caso de Amaicha del Valle. Tesis de Disertaci6n para el Grado de Doctor. Facultad de Filosofia y Letras,
- 35 - Universidad de Buenos Aires.
21. Martinez Sarasola, C., 1992. Nuestros Paisanos Los Indios. EMECE.
22. Mejia, Maria Clara, 2000. Argentina: Proyecto de Desarrollo Indigena y Proteccidn de la Biodiversidad--Comunidades Mapuche, Diaguita/Calchaqui- Quilmes, Kolla.
23. Moscatelli, G. et. al., 1990. Atlas de Suelos de la RepuzblicaArgentina; escalas 1:500.000 y 1:1.000.000 - INTA.
24. Perea, M. C., 1995. Mapa de Vegetaci6n del Valle del Santa Maria, sector Oriental (TucumAn, Argentina). Lilloa, XXXVIII (2): 121-132.
25. Proyecto ARG/G31/96. Estrategia Nacional de Biodiversidad. Taller Nacional: Documento base para la discusi6n. Marzo 1998.
26. Rabinovich, J., 1999. Environment and Economics from the Perspective of the South. In Managing Human-Dominated Ecosystems, (Ed) by P.H. Raven and G. Chichilnisky. Island Press (sent for publication)
27. Radovich, J.C. y A. Balazote, 1992. La Problematica Indigena: estudios antropol6gicos sobre pueblos indigenas de las Argentina CEAL - Buenos Aires
28. Reboratti, C. 1998. El Alto Bermejo: Realidades y Conflictos. La Colmena.
29. Redin. C., 1999. Comunicaci6n Personal (API, Tilcara)
30. Soriano, A. y J.M. Paruelo, 1990. El Pastoreo Ovino: principios ecol6gicos para el manejo de campos. Ciencia Hoy (2): 44-53
31. Tiscornia, L., 1998. Propuesta para el Uso, Aprovechamiento y Manejo Integral de los Campos de Pulmariy Comunidades Indigenas Aigo, Salazar, Puel, Catalan, Norquinco y Currumil. Informe preliminar.
32. Tiscornia, L., 1999. Comunicaci6n personal.
33. Tres Puntos, 1999. Patagonia en blancoy negro. En la revista del 27/1/99.
34. UNIR, 1994. Investigaci6n Demografica y Socioecon6mica en Comunidades del Valle Calchaqui que Integran el Proyecto UNIR: Partes I y II. Proyecto UNIR, Universidad Nacional de Tucuman. Septiembre.
35. Universidad Nacional del Comahue, Facultad de Ciencias Agrarias. Informe Final. Propuesta para el Uso, Aprovechamiento y Manejo Integral de los Campos de Pulmari y Comunidades Indigenas, Aigo, Salazar, Currumil, Cataldn, Puel y Norquinco. Volumenes I & 2. Rio Negro, Agosto 1999. *Includingelectronic files
- 36 - Annex 9: Statement of Loans and Credits ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL
Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Borrower Purpose IBRD IDA Cancel. Undisb. Orig Frm Rev'd
P043418 1997 Argentina AR-AIDSANDSTDCONTROL 15.00 0.00 000 3.50 2.77 0.00 P058526 1999 Argentina AR-DRUG PREVENTION (LIL) 4.75 0.00 0 00 4 70 2.21 0.00 P063388 2000 Argentina AR-HEALTH INSURANCE FOR THE UNINSURED 4.90 0.00 0.00 4.90 1.40 0.00 P045687 1996 Argentina AR-HEALTH INSURANCE TA 25.00 0.00 0.00 0.85 0.85 0.00 P034091 1996 Argentina AR-HIGHER ED. REFORM 165.00 0.00 0 00 76.54 76 54 2.20 P006059 1997 Argentina AR-MATERNAL& CHILD HLTH & NUTRITION 2 100.00 0.00 0.00 59.08 0.08 0.00 P006030 1996 Argentina AR-PROV. HEALTH SECTOR DEVELOPMENT 101.40 0.00 0.00 47.98 45.68 0.00 P055482 2000 Argentina AR-PUB. HLTH. SURV. & DISEASE CONTROL 52.50 0.00 0.00 52.50 6.83 0.00 P005992 1995 Argentina AR-SECONDARY ED 1 190.00 0.00 21.31 31.02 52.32 32 32 P006057 1996 Argentina AR-SECONDARY ED.2 115.50 0.00 0.00 68.17 6011 0.00 P050714 1998 Argentina AR-SECONDARYEDUCATION3 119.00 0.00 0.00 31.08 2942 000 P049269 1998 Argentina AR-SOCIAL PROTECTION 3 284.00 0.00 0.00 72.28 72.28 0.00 P006058 1999 Argentina AR-SOCIALPROTECTION4 9075 0.00 0.00 75.51 10.54 0.00
P057449 . 1999 Argentina ARG YEAR 2000 30.30 0.00 0.00 26.61 21.61 0.00 P03958i4 1997 Argentina B.A.URB.TSP 200.00 0.00 0.00 141.49 69.83 0.00 P055935 1998 Argentna ELNINOEMERGENCY 42.00 0.00 0.00 32.88 32.88 1555 P006052 1997 Argentina FLOOD PROTECTION 200.00 0.00 0.00 165.33 98.67 35.00 P006040 1996 Argentina FORESTRYIDV 16.00 0.00 0.00 8.57 3.81 0 00 P006055 1996 Argentina MINING SCTR DEVT 30.00 0.00 0.00 1.82 0.52 0 00 P055477 1998 Argentina MININGTA 39.50 0.00 0.00 13.84 13.84 0.00 P050713 1998 Argentina MODEL COURT DEV. 5.00 0.00 0.00 4.15 345 0.00 P006060 1995 Argentina MUNIC DEVT 11 210.00 0.00 0.00 69.92 -51.40 0.00 P040808 1997 Argentina N.FORESTIPROTC 19.50 0.00 0.00 13.46 -1.20 0.00 P052590 1998 Argentina NAT HWY REHAB&MAINT 450.00 000 0.00 271.66 165.92 0.00 P046821 1997 Argentina PENSION TA 20.00 0.00 0.00 8.81 7.97 0.00 P006050 1998 Argentina POLLUTION MGT. 18.00 0.00 0.00 17.58 10.05 0.98 P006010 1997 Argentina PROVAGDEVTI 125.00 0.00 0.00 116.21 30.89 6.27 P006018 1995 Argentina PROV DEVT 11 225.00 0.00 0.00 85.22 -1.12 0.00 P005980 1997 Argentina PROV ROADS 300.00 0.00 0.00 265.05 166.39 0.00 P037049 1996 Argentina PUB.INV.STRENGTHG 16.00 0.00 5.50 7.25 12.75 0.00 P006043 1999 Argentina RENEWENERGYR.MKTS 30.00 0.00 0.00 29.10 3.30 000 P005968 1987 Argentina SEGBAV 276.00 0.00 0.00 32.24 32.24 0.00 P006041 1998 Argentina SMALL FARMER DV. 75.00 0.00 000 42.21 22.19 1788 P055461 1999 Argentina SOC&FISCNTL ID SYS 10.00 0.00 0.00 7.25 4.25 0.00 P062992 1999 Argentina SPEC REPURCHASE 505.05 0.00 0.00 500.00 0.00 0.00 P006046 1999 Argentina WATER SCTR RFRM 30.00 0.00 0.00 30.00 8.34 0.00 P062992 1999 Argentina SPECIAL SAL (SSAL) 2525.30 0.00 250.00 500.00 750.00 500.00
Total: 6665.40 0.00 276.80 2940.70 1752.70 -785.10
- 37 - ARGENTINA STATEMENT OF IFC's Held and Disbursed Portfolio
In Millions US Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1998 AUTCL 6.00 0.00 0.00 0.00 6.00 0.00 0.00 0.00 1994 Aceitera Chabas 0.00 0.00 3.10 0.00 0.00 0.00 3.10 0.00 1994 Aceitera General 7.50 0.00 6.90 0.00 7.50 0.00 6.90 0.00 1960/95/97/99 Acindar 50.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 1994/95/96 Aguas 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1977/84/86/88/94/96 Alpargatas 10.00 0.00 0.00 40.50 10.00 0.00 0.00 40.50 1999 American Plast 10.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 1993 Arg Equity Inv. 0.00 2.84 0.00 0.00 0.00 2.84 0.00 0.00 2000 Argentina SMMC 0.00 12.50 0.00 0.00 0.00 0.00 0.00 0.00 1994/99 BGN 0.00 0.00 33.00 0.00 0.00 0.00 33.00 0.00 1989/91/96 Banco Frances 4.10 0.00 0.00 0.00 4.10 0.00 0.00 0.00 1996/99 Banco Galicia 50.00 0.00 0.00 245.00 50.00 0.00 0.00 245.00 1995/97 Banco Roberts 30.00 0.00 0.00 0.00 30.00 0.00 0.00 0.00 1996 Bansud 3.39 0.00 0.00 0.00 3.39 0.00 0.00 0.00 2000 Bco Hipotecario 25.00 0.00 0.00 102.50 25.00 0.00 0.00 102.50 1996 Brahma - ARG 14.93 0.00 0.00 16.50 14.93 0.00 0.00 16.50 1988/93 Bunge y Born 0.53 0.00 0.00 4.01 0.53 0.00 0.00 4.01 1996 CAPSA 9.82 0.00 5.00 27.00 9.82 0.00 5.00 27.00 1999 CCI 0.00 20.00 20.00 0.00 0.00 20.00 6.00 0.00 1995 CEPA 6.67 0.00 3.00 1.20 6.67 0.00 3.00 1.20 2000 Cefas 10.00 0.00 5.00 0.00 0.00 0.00 0.00 0.00 1999 Correo Argentino 63.00 0.00 12.00 0.00 63.00 0.00 12.00 0.00 1994/95 EDENOR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 F.V. S.A. 11.25 0.00 4.00 0.00 11.25 0.00 4.00 0.00 1998 FAID 0.00 2.75 0.00 0.00 0.00 2.75 0.00 0.00 2000 FAPLAC 10.00 0.00 5.00 0.00 10.00 0.00 5.00 0.00 1992 FEPSA 2.75 0.00 2.00 0.00 2.75 0.00 2.00 0.00 1997 FRIAR 10.00 0.00 2.50 7.00 10.00 0.00 2.50 7.00 1996 Grunbaum 6.00 0.00 2.00 3.33 6.00 0.00 2.00 3.33 1997 Guipeba 13.93 0.00 5.00 0.00 13.93 0.00 5.00 0.00 1998 Hospital Privado 9.60 0.00 0.00 0.00 6.50 0.00 0.00 0.00 Huantraico 0.00 17.00 0.00 0.00 0.00 0.00 0.00 0.00 1992 Kleppe/Caldero 6.00 0.00 0.00 0.00 6.00 0.00 0.00 0.00 1995/97 MBA 0.00 0.16 0.00 0.00 0.00 0.16 0.00 0.00 1996 Malteria Pampa 3.50 0.00 1.00 0.00 3.50 0.00 1.00 0.00 1992/93/96 Mastellone 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 Milkaut 7.50 0.00 10.00 3.00 7.50 0.00 10.00 3.00 0/97 Minetti 30.00 0.00 14.00 100.00 30.00 0.00 14.00 100.00 1978/81/86/87/91/93/9 Molinos 0.00 1.24 0.00 0.00 0.00 1.24 0.00 0.00 6/99 Nahuelsat 17.50 5.00 0.00 0.00 17.50 5.00 0.00 0.00 1993/94 Nuevo Central 3.13 3.00 0.00 3.75 3.13 3.00 0.00 3.75 1995 Oleaginosa Oeste 2.29 0.00 3.75 0.92 2.29 0.00 3.75 0.92 1993 PAE - Argentine 9.09 0.00 0.00 18.18 9.09 0.00 0.00 18.18 1992 Patagonia 5.00 0.00 1.00 0.00 5.00 0.00 1.00 0.00 1992/95 1998 Total Portfolio: 652.48 117.64 189.25 888.81 632.38 67.72 170.25 888.81
- 38 - ApprovalsPending Commitment FY Approval Company Loan Equity Quasi Partic 2000 ALEF 25000.00 0.00 0.00 150000.00 2000 APSF 20000.00 0.00 5000.00 30000.00 1999 AmericanPlast 0.00 0.00 350.00 0.00 2000 ArgentinaSMMC 100000.00 0.00 0.00 450000.00 1999 Biopork 5200.00 2000.00 0.00 5000.00 2000 CAGFund 0.00 0.00 10000.00 0.00 1999 DI TELLA 9000.00 0.00 0.00 0.00 1999 GaliciaBLINC 0.00 0.00 0.00 75000.00 1998 U.Belgrano 15000.00 0.00 0.00 0.00 1999 Unisoy 5000.00 2000.00 0.00 4000.00 TotalPending Commitment: 179200.00 4000.00 15350.00 714000.00
- 39 - Annex 10: Country at a Glance ARGENTINA:INDIGENOUS COMMUNITY DEVELOPMENT LIL Latin Upper- POVERTY and SOCIAL America middle- Araentina 8 Carib. income Development diamond 1999 Population, mid-vear (millions) 36.6 509 573 Life expectancy GNP per capita (Atlas method, US$) 7,600 3,840 4.900 GNP (Atlas method, USS billions) 277.9 1,955 2.811 Average annual growth, 1993-99 Population (%) 1.3 1.6 1.4 Labor force (%) 21 2.5 2.1 GNP Gross Most recent estimate (latest year available, 1993-99) capita enrollment Poverty (% of population below national poverty line) 18 Urban population (% of total population) 90 75 76 Life expectancy at birth (years) 73 70 70 Infant mortality (per 1,000 live births) 19 31 27 Child malnutrition (% of children under 5) 2 8 7 Access to safe water Access to improved water source (% of population) 65 75 78 Illiteracv (% of population age 15+) 3 12 10 _ et Gross primary enrollment (% of school-aae population) 111 113 109 Argentia Male 111 .. .. --- Upper-middle-income group Female 111 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1979 1989 1998 1999 Economic ratios' GDP (US$ billions) 69.3 76.6 298.1 282.8 Gross domestic investment/GDP 25.9 15.5 19.9 19.1 Exports of aoods and services/GDP 6.5 13.1 10.4 9.8 Trade Gross domestic savinas/GDP 26.0 22.0 17.4 17.4 Gross national savinas/GDP 25.2 13.6 15.1 14.8 Current account balance/GDP -0.8 -1.7 -4.8 -4.3 'I Interest payments/GDP 1.4 2.0 2.4 2.8 Domestic ment Total debt/GDP 30.2 85.6 47.1 51.2 Savings I Total debt servicelexports 22.7 36.4 52.8 69.6 Present value of debt/GDP .. .. 50.5 .. Present value of debt/exworts .. .. 410.1 Indebtedness 1979-89 1989-99 1998 1999 1999-03 (average annual growth) GDP -0.4 5.0 3.9 -3.1 3.8 -Argentina GNP Per capita -2.4 4.1 2.4 -4.1 2.9 Upper-middle-income group ExPorts of aoods and services 2.5 8.9 10.1 -1.1 4.1
STRUCTURE of the ECONOMY 1979 1989 1998 1999 Growth of investment and GDP %) (% of GOP) 20 Aariculture 7.8 9.6 5.7 4.6 Industr" 44.0 42.3 28.7 28.3 10 Manufacturino 32.7 30.9 19.1 18.2 Services 48.2 48.0 65.6 67.1 1 94 96 97 98 IR Private consumption 63.0 73.5 70.7 69.7 -20 General povernment consumption 11.0 4.5 11.9 12.9 -GDI W GDP Imports of qoods and services 6.3 6.6 12.9 11.5
1979-89 1989-99 1998 1999 Growth of exports and imports (%) (average annual growth) Agriculture 0.5 4.0 10.3 -0.5 30 Industry -1.2 4.6 3.2 -5.1 20 Manufacturino -0.9 3.6 1.6 -6.9 Services 0.5 5.0 4.7 -1.4 1C Private consumption 3.8 12.1 -4.2 oe Ie General aovernment consumption .. 1.3 -1.1 1.2 9496 97 Gross domestic investment -4.6 9.3 6.6 -7.6 -1C -Ex Imports of aoods and services -5.4 19.6 8.4 -11.2 Exports - Imports Gross national product -1.0 5.4 3.5 -3.3
Note: 1999 data are preliminary estimates. The diamonds show four kev indicators in the countrv (in bold) compared with its income-proup averaae. If data are missina. the diamond will be incomplete.
-40 - Argentina
PRICES and GOVERNMENT FINANCE 1979 1989 1998 1999 Inflation (%) Domestic pnlces (% change) 15 Consumer prices 159.5 3,066.3 0.9 -2.2 1i Implicit GDP deflator 147.4 3,057.6 -2.0 -2.2
Government finance (% of GDP, includes current grants) 9 9 Current revenue 8.0 15.5 18.8 19.3 -5 Current budget balance 3.7 -3.5 -0.3 -1.5 -GDP deflator -CPI Overall surplus/deficit -1.4 -6.3 -1.4 -1.7
TRADE (US$ millions) 11979 1989 1998 1999 Export and Import levels (USS mill.) Total exports (fob) .. 9,656 26,441 23,315 35000 Food .. 1,016 3,056 2,428 .. Meat .. 716 836 653 Manufactures .. 3,186 17,387 15,082 21.000 Total imports(cif) 4,230 31,404 25,538 4.1) Food .. . . 466 Fueland energy .. 389 852 674 Capitalgoods .. 1,450 15,649 11,909 0 Export price index (1995=100) .. .. 92 8o Import price index (1995=100) .. .. 92 85 U Exports * Imports Terms of trade (1995=100) .. .. 101 94
BALANCE of PAYMENTS
(USS millions) 1979 1989 1998 1999 Current accountbalance to GDP (%) Exportsofgoodsandservices 9,176 11,759 31,123 27,758 0 Imports of goods and services 8,773 6,254 38,568 32,557 Resource balance 403 5,505 -7,445 -4,799 - Net income -973 -6,818 -7,335 -7,847 Net currenttransfers 26 8 388 394 Current account balance -544 -1,305 -14,392 -12,252 t Financing items (net) .. 107 10,954 11,051 Changes in net reserves .. 1,198 3,438 1,201 41 Memo: Reserves including gold (US$ millions) . 10,814 24,906 26,407 Conversion rate (DEC, locallUS$) 2.79E-8 4.23E-2 1.0 1.0
EXTERNAL DEBT and RESOURCE FLOWS 1979 1989 1998 1999 (US$ millions) Compositionof 1998 debt (USS mill.) Total debt outstanding and disbursed 20,942 65,618 140,489 144,657 IBRD 367 2,281 7,417 8,591 A: 7,417 IDA 0 0 0 0 c 5,442 G: 30,956 D0:1.705 Total debt service 2,251 4,385 19,690 23,571 | : 0,ss6 E:7,400 IBRD 59 417 725 998 IDA 0 0 0 0 Composition of net resource flows Official grants -2 54 31 6 Official creditors 233 660 2,072 1,538 Private creditors 4,334 -732 9,527 2,882 Foreign direct investment 206 1,028 6,150 11,120 Portfolio equity 0 8 50 -2,093 F:87.569 World Bank program Commitments 96 35 3,815 132 |A-IBRD E-Bilateral Disbursements 39 316 2,029 1,573 | B-IDA D - Othermulbilateral F - Pnvate Prncipal repayments 24 221 350 445 c - IMF G - Short4enem Netflows 15 96 1,678 1,128 Interest payments 36 196 375 553 Net transfers -21 -101 1,304 575
Development Economics 9/12100
-41 - Additional Annex No.: 11
Social Assessment
Introduction
In 1997 the World Bank approved an Institutional Development Fund (IDF) grant requested by the Government of Argentina (GoA) to strengthen the participation of indigenous community organizations in the identification,design and implementationof socioeconomic development processes compatible with indigenous cultures. Through a series of local, regional and national capacity building workshops, which engaged indigenous communities, local government institutions, non-governmental organizations and national institutions such as the Secretariat of Social Development and Environment (SSDE) the National Institute for Indigenous Affairs (INAI), the present proposed project was identified.
The development priorities that emerged from this exercise, proposed by the indigenous communities and endorsed by the GoA, are focused upon the creation of Indigenous Pilot Areas (IPA). The concept, which is an important innovation for Argentina, entails several key principles:
* improve the quality of life of indigenous communities by promoting traditional cultural knowledge and practices of sustainable use of natural resources; * foster socioeconomic development investments that resolve present constraints and lessen human pressure on natural resources; * empower local indigenous communities to participate in the co-management of the resources upon which they depend for survival.
Due to the fact that the current legal framework for establishing Indigenous Pilot Areas requires new developments, high level negotiations and reforms, in 1999, the World Bank decided to modify the approach and formulate a more traditional indigenous development project aimed at both supporting local development initiatives and biodiversity protection in three selected indigenous areas. However, the establishment of TPAwas kept as an strategic objective which first steps are to be achieved during implementation of the current project. Indigenous leaders (especially Mapuches) expect that the project will take the necessary stands to make possible the establishment and operation of IPA.
Both indigenous and non-indigenous organizations and institutions agree that a Learning and Innovation Loan (LIL) is the most appropriate instrument for Bank support of this new approach to indigenous community development and biodiversity protection. This is because all of the parties feel the need to learn from the experience of testing a promising but unfamiliar development strategy. The GoA has requested this LIL to pilot the new approach in three regions of the country before attempting to scale it up to the broader Argentine context.
The proposed project will support three pilot operations in regions where indigenous communities have obtained collective title to their lands or are in the final stage of securing State recognition of their ancestral tenure rights. The three indigenous territories are
* Mapuche territory of Pulmari in Neuquen Province;
* Daiguita-Calchaqui and Quilmes territory of Amaicha del Valle in TucumainProvince;
- 42 - * Kolla territory of Finca Santiago in Salta Province.
1. Methodology of the Social Assessment
The Social Assessment carried out during project preparation was the vehicle through which the three indigenouscommunities participated directly in defining project objectives, designing components, formulating implementationarrangements and structuring management procedures. Additionally, the technical content of the Social Assessment, including historical information, socioeconomic analysis, environmental analysis, and institutional analysis, are the product of this participatory approach. (The extended Spanish version of the Social Assessment is listed in the project files.)
Eight indigenous consultants were responsible for assisting INAI professional staff and the Bank in the major aspects of project preparation. The indigenous consultants convened community meetings to discuss sustainable development options, collected data, recommended courses of action, participated in decision making and served as liaisons between the indigenouscommunities and the INAI-Bank team. All project documents, including Terms of Reference, Reports, Aide Memoires, and the Project Appraisal Document (PAD) in draft, were translated into Spanish (the common language spoken by the consultants) and made available for discussion in the three pilot communities. In addition to the eight indigenous consultants, the World Bank hired an international and two national consultants, specialists on social and indigenous development and on agriculture and natural resources management. The information and results presented in this document are the result of the interdisciplinaryand inter-ethnic group.
While the project idea was originally presented to the GoA and the Bank by indigenous organizations,the approval and active support of traditional leaders of the communities is a vital element. Consultations were held with traditional authorities in each community, including the six Lonkos (maximum authority) and the Werken (religious leaders) of the Mapuche settlements of Pulmari; the leaders of the Confederation of Mapuche Organizations in Neuqudn; the Kolla Council of Finca Santiago (maximum authority) representing the four Ayllus (clans/settlements)of Finca Santiago; the Executive Community Council of Amaicha del Valle, maximum authority of the Diaguita/Calchaqui,and the Council of the Indigenous Community of Quilmes. While these institutions have approved the PAD in draft, final consultations regarding technical details and operational arrangements with indigenous leaders are still to be sought during project appraisal.
2. Beneficiary Communities: Historical Context and Situation Today
Mapuche Communityof Pulmari
There are six communities settled in a territory of 112,900 hectares administered by the Pulmari Interstate Corporation based in the Municipality of Alumine, Neuquen Province. Several centuries ago, the region was home to the Pehuenches (pehuen: pine tree; che: people) whose staple was seasonal harvest of pine nuts (PinionAraucaria). The Mapuche (people of the plains) are related descendants of Araucanian people of southern Chile, pushed in 15th and 16th centuries into southern Patagonia by the Spanish invasion, together with Tehuelche people who occupied the plains previously. At the end of the 19th century, the Mapuche, Tehuelche and Pehuenche occupying Pulmari were the object of the "Desert Campaign" of the Argentine Army, resulting in military defeat of the indigenous groups and the annexation of the territory into large estates of the wealthy families that paid for the military campaign. Today's Mapuche communities are the remnants of the three peoples who assimilated themselves as rural landless laborers employed on the great livestock estates that took over their lands. In 1948, hacienda Pulnari was sold by its owner to the nation, which divided it between the Army and the Provincial government of
-43- Nuequen with no recognition of the rights of the Mapuche settlements on the estate. Mapuche demands for restitution of their land rights dates from that period.
The Pulmari Interstate Corporation formed by the Province and the federal government owns the portion of Pulmari, 110,000hectares, not ceded to the Army. Its stated purpose when created was to promote the development of the region and its indigenous population. Usufruct right to 23,505 hectares (23%) was granted to four Mapuche communities (creating conflict with the others) but usufruct right to the remaining lands (those located at both sides of the river, with enough water for cattle ranching and industrial agriculture) were given in concession to non-indigenous outsiders for grazing livestock (46%) and for tourism facilities (31%). The latter two occupy the prime pasture lands of the region. The Mapuche of Pulmari, having been pushed to use grazing lands with environmental and water restrictions: they live in poverty and had to invest enormous amount of effort for their survival and the survival of their animals. The Mapuches have fought as much as they can for restitution of their rights to the pine nuts, pastures and waters of Pulmari (wajmapu, roughly, the biosphere) during several generations with little success until now. Sorting out the ancestral land rights and territorial control of the Mapuche people vs. those superimposed by.the Nation State and other outsiders is a major challenge.
Diaguita/Calchaqui and Quilmes Communities of Amaicha del Valle
The communities occupy the Valley of the Calchaquies, in the Department of Tafi in the Province of TucumAn. The Diaguita, once widespread in northeastern Argentina, responded to Spanish conquest by strong resistance lead by hereditary hierarchies while others assimilated with the conquerors to form the mixed population dominating the region until European immigration overwhelmed them in the l9th century. The Quilmes occupied the valley since at least the year 1,000. Ruins and ancestral remains of the Amaicha and Quilmes populations are scattered throughout the valley, including the largest pre-hispanic city in Argentina named Quilmes, and today's settlements are built on the archeological sites of their ancestors. Ironically both communities are not the owners and not even the managers of the pre-hispanic sites located in their ancestral territory.
A Royal Decree dated 1716 (discovered in the middle of the 20th century) grants the Diaguita/Calchaqui of Amaicha ownership of the valley, land which they have successfully occupied and defended from invasion and annexation over the years. In 1976 and 1986, the GoA recognized the collective rights of the Amaicha community to 117,000 hectares on the eastern shore of the Santa Maria River (Tucuman Province). The Quilmes were less successful, for while they too are covered by the Royal Decree, their lands (about 60,000 hectares on the western bank of the Santa Maria River) are occupied by a handful of non-indigenous colonists and large hacienda owners who claim to have titles. Sorting out the ancestral land rights of the Quilmes people vs. those superimposed by outsiders is a major challenge to be faced by the project.
Kolla Community of the Finca Santiago
The people of Finca Santiago, located at several altitudes in the Bermejo River Basin (Salta Province), are known in Argentina as Kolla, meaning descendants of a mixture of Quechua-Aymara people of the altiplano and remnants of lower-altitude groups that they assimilated during the conquest and subsequent colonization. This identity stems from the 17th century, when the indigenous resistance in northeast Argentina was defeated and there followed a period of uprooting, displacement, migration and resettlement of indigenous groups, annexation of communal lands, transformation of farmers into landless wage laborers and inter-ethnic mixing. This process continued during the next centuries.
-44 - The Finca Santiago dates from 1930, when a sugar factory bought the land along the Bermejo River and imposed "rent" on the Kolla for the use of their own land. This ensured the migration from the highlands of a steady supply of indebted laborers for the cane harvest. At some point, the rents are no longer needed, as the impoverished Kolla must migrate to sell their labor in order to survive. Four communities comprise Finca Santiago: Calazuli in the altiplano, Volcan Higueras in the middle altitude slopes, and Isla de Cafiasand Rio Cortaderas in the lowlands. The lowland settlements date from three decades ago, in response to migration closer to sources of wage labor combined with the expansion of cattle raising on the slopes. Beginning in the 1940s with marches on the capital, the Kolla pressed for recognition of their ancestral land rights. In 1994, GoA expropriated Finca Santiago from its non-indigenous owners, granting collective title to the Kolla Council of Finca Santiago in 1999. Establishing an integrated, self-managedand culturally adequate pattern for sustainable use of natural resources in Finca Santiago is a main challenge.
Demographic Aspects of the Indigenous Communities
Since the indigenous territories selected for the pilot project do not correspond to European administrative units (municipalitiesand departments) and indigenous identity has never been reflected in national census figures, official sources do not provide precise demographic data. The data given below (see Figure 1) are approximate and stem from various sources.
Migration is a common phenomenon in all three areas, which is perceived as a threat to cultural survival by the indigenous communities. In the Mapuche case, increasingly restricted access to grazing lands and other resources, tenure insecurity, and growing disparity between life styles of their communities and the society around them have stimulated out-migration of young people aged 14 to 24 years. For the Diaguita-Calchaquiand Quilmes, the population pyramid reflects a preponderance of older people having returned to retire at home, and emigration of young people 10-13 (girls) or after 18 year (boys). Similarly, the Kolla community looses about 17% of its populationto emigration between the ages of 14 and 50 years. These facts explain why indigenous families often have between 5 and 11 children, but household size at any given point in time averages 4-5 persons. Changing the current migration pattern is with no doubt one of the most difficult and important challenges of the current project and an revealing indicator of success.
Figure I Beneficiary Communities _ Community Population Settlements Location/Area Mapuche 1,517 Aigo Pulmari Puel 1 12,900 has Currimil Catalan Norquinco Salazar
Diaguita/Calchaqui 2,739 Amaicha Amaicha del Valle Los Sazos 117,000has
-45 - Quilmes 1,582 Collado del Valle Fuente Quemado Quilmes El Bafiado Anjuana Talapazo El Pichao El Arbolar Ancillos El Paso Chaniares Las Canias La Vaqueria
Kolla 2,628 Isla de Cafias Finca Santiago Rio Cortaderas 125,458 has Volcan Higueras Colazuli
3. Social, Cultural and Economic Organization
See the Social Assessment Final Report for details on indigeniouscommunities organizations. Figures 2, 3 and 6
Mapuche of Pulmari. The community of Mapuches depends upon grazing lands and the forests of Pulmari. The former support the raising of goats, sheep, cattle and horses which constitutes a principle economic activity and providing food security and social prestige (particularly cattle and horses). The forest provides firewood, medicinal and food plants and the staple pine nuts from which flour is made for bread. While livestock appear at first glance to be most important, it is clear that forest products are at the core of the economy. Agriculture occupies a secondary activity and is mainly dedicated to provide family food.
The Mapuche settlements have around 60,500 head of livestock. They practice a itinerant production regime, moving animals between winter and summer pastures. While all depend on livestock to some degree, the fact that 16% of households own no livestock reflects significant socioeconomic stratification. Due to lack of access to pastures and consequent overstocking, livestock rearing is a low-yield activity. Experts estimate that winter pastures are 7 times overstocked and livestock exceed summer pasture carrying capacity by 70%. Herein lies the rationale for sub projects of fodder production and cancellation of grazing concessions to non-residents of Pulmari.
The potential for forestry development in Pulmari has long been observed. Unfortunately, Mapuche involvement in forestry development has been minimal, and most areas of greatest potential value have been given in concession to large non-resident investors by the Pulmari Interstate Corporation. Only in Puel and Currumil does one encounter incipient re-forestation programs stimulated by the provincial Forestry and Parks Directorate. The other communities reject this program, because it is based on introduction of exotic
-46 - species, and prefer improvement of production of native species. In any case, it is clear that a key to sustainable natural resource management in expanding Mapuche access to and control over the native mixed forests, and, most important, the endangered Pehuen tree.
Ecological tourism services and traditional crafts have a potential to contribute to socioeconomic development and relieve pressure on natural resources. Production and sale of crafts represent a potential benefit for women ( 190 households represent 66% of production)that with technical assistance can be improved. This potential is related to tourism development, which the young see as perhapsthe only alternative to migration. All six settlements have tourism projects planned, but a real change in earning patterns much depends on reversing the 80 tourism concessions granted by the Corporationto non-residents.
A study by the University of Comahue found that 72% of the Mapuche live below the poverty line (US$ 148 per capita/month) and 41% below the line labeled indigent (US$ 78 per capita/month). Unemployment accordingly ranges between 10% and 24% of the economicallyactive populationof each community. The communities are clearly stratified socially, with those owning less than 50 head of livestock, those depending entirely on farm income and those with no off-farm income. In contrast, the better-off families have more than 50 head of livestock and/or a diversifiedhousehold production, including off-farm income from tourism services or employment, processingof Pehuen pine seeds, and production and sales of crafts.
The Mapuche cultural cosmology centers on the concept of Wajmapu-ixofimogen. Wajmapu refers to a multidimensionalenvironment composed of what in occidental cultures are called space, soil and subsoil, wherein the Mapuche trace their origin and existence in the cosmos. The second concept, ixifijmogen,refers to the integral concept of biodiversity in which nature does not belong to humans, but humans belong to nature. Sustainable development for the Mapuche means achieving harnony among the "natural," "social" and "cultural" which are seen as mutually interdependent, as expressed in the bi-annual Naguillatun ceremony.
While land tenure is collective, land use is organized along family lines. The Lonko or maximum civil authority in each settlement is distribution of usufruct rights to the families, was previous hereditary but is today elected for a two-year term. Each settlement also has an elected Executive Council through which relations with institutions of local government are managed. In contrast, the Werkenes are the maximum spiritual authority, who are today concentrated on recuperating and revaluing Mapuche culture. While solidarity at the settlement level is tangible, there are continuing conflicts between settlements due to successive decisions of the Corporation, Provincial authorities and GoA which deprive some of access to resources and reward others. For this reason, second-tier indigenous organizations are important to consensus building, conflict resolution and building social capital. These include the Mapuche Confederation of Neuquen representing 42 Mapuche settlements in the rural areas of the Province and the Mapuche Coordinating Organizationwhich is an executive function of the Confederation.
Diaguita/Calchaquies/Quilmes,Amaicha del Valle. The social, cultural and economic organization of Amaicha del Valle is founded upon collective land ownership by the community, within which are distinguished two types of hereditary usufruct rights: property of a family and the natural resources in its vicinity and communal property to which all families have access/use rights such as pasture and water. However, with the passage of time and the impacts of migration and penetration of the dominant society, there have emerged two patterns of living in the valley. First, about 20% of the people of Amaicha del Valle live exclusively off of the land, the majority located in small settlement at some distance from more populous centers. Here one finds the traditional gardens and agroforestry production system
-47 - and the ancient practice of the "minga" or collective labor in planting and harvest typical of the Andean civilizations. The majority, however, operate a mixed economic production system, depending upon farm income to supplement off-farm employment or income and to permit traditional gift exchanges with neighbors and family. The latter generally means less efficient use of natural resources and increasingly reliance on employment in commerce and delivery of public services.
Studies indicate arable soils (provided that there is irrigation) in Amaicha del Valle of about 15,000 hectares, of which a bout 600 presently have permanent irrigation and 200 have seasonal irrigation. However, only about 1,000 are under cultivation, characterized by poor irrigation delivery and management practices due to the imposition of inappropriateregulations by the Provincial government resulting in poor yields. Studies also indicate there is great potential for intensified productivity due to the presence of abundant groundwater. However, under present conditions, any development strategy based on field crops alone holds limited potential. Livestock on the other hand are almost universally present in Amaicha and Quilmes households, with a range of 100 to 200 head per household of goats (and a few sheep and cows). Animals serve as both food source (milk, cheese, meat) and "walking banks" wherein savings are invested. In sum, irrigated cropping and livestock are the twin pillars of the rural economy. For these reasons, improvement of irrigation (impermeablechannels to cut loss and drip delivery) combined with reforms and improvements in the organizationand administration of water rights to achieve equity are viewed by the indigenous community as essential. Similarly, rationalizationof livestock rearing through fodder production on irrigated land is essential.
The socioeconomic stratification of the community reflects the low productivity of those families who depend on agriculture who rank lowest. Those who combine agriculture and off-farm employment constitute a middle segment. Families who have one member working in high positions in pubic administration, families that receive remittances from members working in cities outside the valley, and families of merchants enjoy the highest ranking. Some 15% of the population have completed schooling through 4th grade, and 37% through 7th grade. A minority have obtained secondary school diplomas and fewer still have graduated from university.
The cosmology of the people of Amaicha del Valle center on the divinity of the Pachamama or mother earth, a belief system shared with groups throughout the Andes. Catholicism dates from the time of colonization,but the ritual cycle is that of the agricultural cycle of ancient times culminating in the August festival of Pachamama represented by the "election" of the oldest female of the community in celebration of the mother earth. Civil authority is embodied in the Cacique, who traditionally was selected along hereditary lines for life but today is elected as President for life. Nevertheless, a President can be removed by decision of the community. Each community President is backed by a Community Directorate or Commission formed by elected delegates of the different settlements.
Kolla of Finca Santiago. The community utilizes three ecological zones that comprise the territory: the high-altitude soils for pasture combined with marginal agriculture, the middle-altitude slopes for pasture, and the low-altitude zone for agriculture, grazing and forest products gathering. Settlements are located in the three zones, with a corresponding tendency to specialization required by the micro-environmentof the zone, and are linked together in the ancient Andean "vertical economy." Production is distributed over several ecological zones and products from one zone are exchanged for products from the other, following long-standingfamily, fictive kinship and patron-client relationships that link settlements.
The Kolla community is almost auto-sufficient, producing the bulk of what they consume. Livestock production is predominant, including sheep, goats, llamas, burros, mules and horses in the middle
-48 - and upper zones, from which meat and wool are derived for consumption, trade and sale. Some irrigated agriculture is practiced in the high-altitude zone, although its revenues are affected by wind erosion and loss of water and soil nutrients. The forests of the lower zone were devastated by logging companies (commercial species high-grading) and the sugar industry (fuel) in the middle of the 20th century, and only remnants of the original forests remain. Today the Kolla use the areas cleared by loggers for agriculture, including field crops and citrus orchards, and cattle grazing. Firewood is gathered from the non-commercial species cut and left to rot by the loggers. The Kolla have initiated a reforestation program, protecting naturally regenerating valuable species as well as planting high-value species (expected to mature in 15-20 years). The majority of families in the four settlements depend entirely on agriculture and livestock rearing, but in the lower altitude area as much as 18% of the people derived some off-farm income as well (e.g. migration for the sugar cane harvest).
Despite the rich cultural heritage, abundant natural resources and productive capacities of the Kolla of Finca Santiago, one finds that 75% of the inhabitants are living in poverty (basic needs unsatisfied, reflected in short life expectancy, high rates of infant mortality, substandard housing and lower coverage of schooling and public health services). These for the most part cultivate small plots and maintain small herds of goats and sheep. Other families which operate production systems at several different altitudes and are able to supplement that with non-farm income are better off. Cattle raising is concentrated in these families. Families with members who are merchants or public sector employees (politicians, teachers, health workers) constitute the upper strata of the community, and they increasingly invest their surplus in cattle ranching in the lower altitudes. Women are less involved in agriculture, but play important roles in keeping domestic animals, livestock rearing, trade and commerce and manufacturing in addition to child rearing.
The community is organized in four ayllus or territorially-based lineage, corresponding to the four settlements of Isla de Cafias, Rio Cortaderas, Volcan Higueras, and Colanzuli. These kin-based groups are incorporated into the Kolla Council of Finca Santiago through 12 delegates, three from each of the ayllus, which at the settlement level function as a Local Council. Representatives serve for two years, but can be re-elected depending upon their performance, their moral qualities and their "altruistic actions" in helping others. The charter of the Council specifies its obligations to defend the territory and reaffirm traditional cultural identity, the latter defined in large measure as promoting sustainable use of natural resources through communal management. The Assembly of the Kolla of Finca Santiago is the maximum authority of which the Council is the executive body. All household heads 16 years or older have voice and vote in the Assembly, 50% of which are required to be present to constitute a quorum. The Kolla of Finca Santiago are nominally catholic (there is a chapel in Isla de las Canas), but fundamentally believe in the cult of Pachamama (earth mother) present throughout the Andes. Their concepts of sustainable development derive from obligations to the ayllu and its descent from (kinship with) earth mother.
4. Management Capacity of Indigenous Organizations
The indigenous organizations of the Mapuche, the Amaicha and Quilmes, and the Kolla, so far as their structure, internal processes, management experience and recuperation of cultural values and identity, are in a formative stage. They require additional capacity formation and technical assistance compatible with their culture and stage of development. The proposed project involves populations governed by oral traditions, and, therefore, cannot attempt to subject all activity to written agreements.
On the other hand, all of the indigenous organizations have participated in development projects offered by Provincial Governments and NGOs They are accustomed to shared-managementresponsibilities in small-scale projects that entail resources from US$ 30,000 to 40,000. Each has only rudimentary
- 49 - familiarity with accounting, but require additional training. Each has been established legally as a civil society organization (personeriajuridica), which specifies statutes under which they operate, needed to manage bank accounts, loans and debts. But only the Amaicha del Valle organization has already established a bank account. With regard to physical facilities, only the Kolla Council of Finca Santiago has a local office staffed with personnel and equipment needed for participation in the project. For this reason, the project should provide resources to strengthen the facilities of the Mapuche and the Amaicha/Quilmesand for strengthening the managerialcapacities of all groups involved. This is with no doubt a condition for project success.
Apart from formal organization, which in large measure will be strengthened by the proposed project, it is important to note that in each community one can identify important human resources. These include professionalsand technicians with profound knowledge of the natural resources of their region and the traditional cultures of their people, some of them with experience in local university, other educational institutions and local government services programs (e.g. agricultural extension). Historically, such skilled individuals found little opportunity for personal growth and achievement within their communities, who, for several generations, were prohibited from managing their own lands and natural resources. The proposed project will draw upon these untapped human resources.
Finally, the strength and resilience of indigenous organizationsand the oral culture which they transmit should not be underestimated. What must be kept in mind is that they have survived generations of efforts to extinguish them, ranging from theft of their natural resources base to the persecution of their leaders. Far from being weak, the indigenous organizations involved in the proposed project have succeeded remarkably in winning recognition of their people's human rights and their ancestral territories against enormous odds. It is upon these demonstrable achievements, capabilities and skills that the proposed project will build.
5. Other Social Actors Involved
See the Social Assessment Final Report for detailed information on actors involved at the national, provincial level as well as potential associates and project allies. Charts 9 to 12.
In addition to those directly involved in the project design and execution, there are other important social actors who will be involved indirectly. These include local, provincial and national institutions of governrment,non-governmental organizations and the private sector, with which the pilot indigenous communities will establish collaborative agreements, obtain support and assistance and work with to implement a diversity of a activities and actions entailed in the project.
National Level
Several entities have statutory responsibility with regard to the management of the resources to be provided by the World Bank loan, counterpart resources provide by the GoA, quality review and control, auditing, etc. The Ministry of Environment and Social Development is the GoA agency responsible for the project, through its Secretary of Social Promotion which will have responsibility for ensuring coordination among all GoA agencies involved. INAI is the project Executing Agency, under the Secretary of Social Promotion, responsible for all activities required for project execution including indigenous policy, relations with indigenous partner organizations, legalization of territorial issues, organizational aspects, etc. The Directorate of the Cabinet, Ministry of Foreign Relations, is responsible for making resources of the loan available in a timely manner to the project Executive Agency as well as for management of audits, provision of counterpart resources and compliance with legal agreements with the Bank. The Agriculture
- 50 - Secretariat, through its National Institute for Agricultural Technology, will support activities relating to use of soils and agricultural technology. The Secretariat of Natural Resources, through its Forestry Directorate, will provide support activities related to environmentalprotection, environmental clearances and management of forest resources. The Ministry of Defense will manage issues surroundingmanagement of lands which are property of the State in Pulmari
Neuquen Province
Organizational and institutional support for project implementationwill be provided by the Neuquen Mapuche Confederation, the Coordinator of Mapuche Organizations of Neuquen, the Directorate for Indigenous Affairs of the Province of Neuquen and the Planning and Action Council for the Developmentof the Province, Government of Neuquen. The latter will have a special importance with respect to the proposed creation of the Bi-national Park Los Pehuenes (an joint ecologicalreserve among Argentina and Chile now under discussion) within which the Pulmari pilot zone may or may not be included. Scientificand technical support in Neuquen can be provided by the University of Comahue, the Social Agriculture Program of GoA, the National Institute of Agricultural Technology of GoA, the Forest Corporation of the Province of Neuquen and the Provincial Wildlife and Parks Secretariat and Forestry Directorate. In addition, NGOs such as the Civil Association Pro-Patagonia and the Civil Association for Lands of Pehuen are important sources of capacity strengthening, technical assistance and social capital building, and each is already involved in assisting the Mapuche.
Tucuman Province
Organizational,institutional and technical support will be provided by the Social Agriculture Program of the Secretariat of Agriculture, Livestock, Fishing and Food, the Programs Pro-Huerta, Encalilla Experimental Farm and Rural Change of the National Institute of Agricultural Technology, the Yungas Laboratory of Ecology Investigation,the National Technical University, the National University of Tucuman, the University of Buenos Aires, and the Andean Center for Development Investigation. NGOs such as Formaci6n, Waters of Aconquija, the Miguel Lillo Foundation and the Highlands Foundation are active locally and are important sources of capacity strengthening,technical assistance and social capital building.
Salta Province
In the high-altitudezone, two entities will be the source of organizational, institutionaland technical support to the project. The Social Agriculture Program of the Ministry of Agriculture and the NGO Integrate Promotion Association will provide scientific and technical knowledge and skills with specific reference to their experience in this zone. In the low-altitude zone, the Yungas Laboratory for Ecological Investigation has the specialized knowledge and experience to assist the project. This laboratory has the institutional support of the GoA Secretariat of Agriculture and Livestock, Secretariat of Social Development,and the National Council of Investigation together with international organizations such as the German Agency for Technical Cooperation, World Wildlife Fund and the International Foundation for Science.
6. Strategies and Action Plans Agreed
See the Social Assessment Final Report for details on the strategy and action plans agreed upon per each of the beneficiary communities. Figures 7 to 9 and Charts 13 to 15.
- 51 - In each pilot community, INAI and Bank professionalsdiscussed jointly with the indigenous organizations concerned and the maximum authorities of the communities the actions and activities proposed to achieve the objectives of indigenous development and protection of biodiversity. The following overarching principles were agreed in each case to organize the execution strategy:
§ Self-determination. Each community has the right and capacity to choose for themselves the development programs and their means of implementationin keeping with their ancestral culture, within the framework of the applicable Argentine legislation.
§ Co-management. Decision making regarding the managementof natural resources and economic development investmentswill be negotiated and agreed among the indigenous communities and the other social actors involved, in both public and private sectors.
§ Construction of Consensus. Both self-determinationand co-management require explicit attention to formulating conflict resolution and consensus building procedures and mechanisms, for which the project will provide financial, technical and legal assistance.
Action Plan of Mapuche Communityof PulmarL Three components constitute the plan for Pulmari:
§ Sustainable Use of Natural Resources § Strengthening Organizations and Traditional Culture, and § Legal Assistance for Resolution of Conflicts.
The first entails a series of investments in training young people is planning, design and management of sustainable development investments, a series of community assemblies to agree and prepare guidelines for biodiversity protection (especially the Pehuen tree) and the production of pedagogic materials. Sustainable production investments in specific settlements are also included, such as production of fodder for livestock, new livestock management regimes, camping facilities of tourists, irrigated vegetable cultivation, and potable water systems. The second component includes investments in recuperation and strengthening of traditional handicrafts, recuperation of traditional medicinal plants uses and commercialization of traditional textile production. The third component provides legal services to clarify issues surrounding land tenure security and associated conflict-resolutionamong indigenouscommunities and leaders and between Mapuches, the CIP, local governments and other private actors.
Action Plan of Diaguita/Calchaqui-QuilmesCommunity of Amaicha
The central concept around which the action plan is organized can be called "living archeological sites." The community intends to recuperate traditional sustainable natural resources use practices to generate income, preserve their culture, and establish an attractive tourism experience to attract visitors. Traditional irrigation systems will be strengthened and improved (e.g. covering diversion channel to mitigate evaporation, introducing drip technology) to permit increased productivity. The management of water will revert to traditional Andean practices, replacing the present wasteful system of "turns," so that visitors can appreciate traditional sustainable management combined with modem technology. Production investments include irrigated fodder, fruit and nut production, recuperation and restoration of archeological resources, and small livestock production. A second component supports preservation/recovery/strengtheningof traditional culture, and includes support for the traditional" councils", establishment of a community center for the Quilmes, support of an RM radio installation for Amaicha for capacity building programs, and investments in traditional handicrafts manufacturing. The
- 52 - third component entails legal services for clarifying land tenure security issues and for securing co-management of archeological sites with other social actors.
ActionPlan of the Communityof FincaSantiago
The key strategy of the Kolla is the consolidationof customary "vertical" exchange relationships between the upper, middle and lower settlements to strengthen social solidarity, diversify production and increase economic demand both internally and for trade beyond the community. Increased productivity is to be based in broadly agreed guidelines and mechanisms for sustainable management of areas to be set aside for natural pastures, natural forests, production forests and irrigated agriculture for traditional crops and the so-called "green agriculture" for which there is a great demand. Investments in sustainable natural resources use include manufacture of furniture, creation of a management plan delimiting livestock grazing areas, technical assistance for agriculture imnprovement,improvement of road connections among settlements, production of improved seed varieties, planting wind break trees, and capacity building in agricultural technology. A second component targets capacity building for natural resources management and economic development, investments in traditional manufacturingof ceramic, wood and textile products, construction of community-centers and training for young people in traditional Kolla culture. The third component provide legal services to resolve conflicts and secure co-management agreements with other social actors.
- 53 - Additional Annex No.: 12
Legal Analysis on the Possibility of Establishing Indigenous Protected Areas
A Legal Analysis on the possibility of establishing indigenous protected areas in the provinces of Salta, Tucuman and Neuquen and the land tenure situation of the communities selected by the project was carried out by Government of Argentina during 1999. The main report in Spanish is in the project files. Below is a summary of the main findings.
The objective of establishing indigenous protected areas in the Provinces of Salta, Tucuman and Neuquen is legally viable because there is not any norm opposing it in the legal framework of the country or the provinces, though none expressly states this possibility. This viability is based on the fact that public policies regarding both protected areas and indigenous peoples have created favorable precedents for such purpose. Therefore, the conditions for the establishment of indigenous protected areas could be created by building technical and administrative capacities among the involved indigenous communities.
A. A synthesis of the main issues follows:
I. Argentina is a federal country where most indigenous lands are in the jurisdiction of the provinces, with the exception of those belonging to the Corporacion Interestadual Pulmari (CIP), which are under special norms.
2. In the provinces where the project will be implemented there are no laws regulating protected areas. Only in Tucuman there is a general environmnentallaw which includes some considerations about protected areas.
3. Since there is no specific legislation on the subject, a particular law is required in each Provincial Legislature in order to create indigenous protected areas. This law can be generic, declaring community lands as protected areas, or specific, establishing management categories.
4. The requirements to establish this law are to be found in a specific management category: namely Category VII, corresponding to Natural-Cultural Reserves. If necessary, other categories could also be incorporated depending on the characteristics of the lands involved.
5. Establishment of the protected areas has advantages both for indigenous communities and for society in general: (a) for communities, it would allow its use as a territorial unit, thus guaranteeing future generations the an integrated environment where resources could be conserved, used in a sustainable way; (b) for society, it would ensure the management of natural resources in the lands under possession by indigenous communities.
6. Since the National Strategic Plan is not finished yet, consideration of the issue of indigenous protected areas could be included in it (INAI is already working towards this end).
7. The country already has precedents of protected areas with human settlements; in some of them (i.e. Parque Nacional Lanin) the communities have land titles.
8. Indigenous legislation in Argentina, which has been substantiallymodified since the constitutional
- 54 - reformof 1994,establishes the recognitionofjuridical personality of the indigenouscommunities, the communalproperty of the landsthey occupyas well as othersapt for their development,and the participationof indigenouscommunities in the administrationof naturalresource and of othermatters affectingthem.
9. Indigenousaffairs is a federalmatter in the NationalConstitution. This allows the designof general publicpolicies regarding the topicof indigenousprotected areas, notwithstanding procedures that may be establishedat the provinciallevel.
10. Indigenousprotected areas could be createdby (a) requestinga law to be enactedat the beginning of the IndigenousCommunities Development Project, or (b) requestinglegal recognitionas protectedareas when indigenouscommunities have improvedtheir organizationaland management capacity.
11. If noneof the aboveoccurs, there are precedentsof provincialjurisdiction of privatedomains in the NationalSystem of ProtectedAreas. This would allowthe creationof privateprotected areas in lands whichare propertyof the indigenouscommunities, under the privateadministration of such communities, or underco-administrative arrangements where lands have not titledto indigenouscommunities but are underprovincial jurisdiction.
B. A summary description of the legal status of the organizations and land tenure situation of the indigenouscommunities involved in the projectis presentedbelow:
1. The Kolla Indigenous Community of Finca Santiago has juridical personality registered in the Secretary of Social Development and the Environment (SSDE) as indigenous community and has the statutory capacity to make decisions regarding land administration. Its lands are held with communal titles since September 1999.
2. The Diaguita-Calchaqui of Amaicha del Valle and Quilmes. This case involves two communitieswith different status: (a) The Diaguita-CalchaquiCommunity of Amaicha del Valle has juridical personality as indigenous community, registered in SSDE and has the legal capacity to decide on land administration matters. It holds communal title to the land, inscribed with the domain restrictions established in the National Constitution. (b) The Quilmes Indigenous Community has juridical personality as a civil association, registered in the Province of Tucuman, and is in the process of transforming its legal status to be registered as indigenous community in the SSDE. This communitiesare living in five nucleated settlementsinside the limits established in the Cedula Real and have ancestral possession over them. However, it does not have title to the land and needs to follow a legal process called acquisitive prescription. INAI has been trying to finance measurements of their land to do the mapping and to claim prescription based on their ancestral rights.
3. The Mapuche Community of Pulmari have all the juridical personalities, one is registered in the register of Juridical Persons in the Province of Neuquen (Catalan, Puel, Aigo and Niengiehual) and in the SSDE (Norkinko). All of these communitieshave the statutory capacity to decide on land administration matters. They have the following land tenure differences: (a). In the case lands outside the administration of CIP and over which they have title, they can decide on their incorporation (to the protected area status). (b) Lands which are administered by the CIP are subject to litigation, for this reason they cannot be incorporated into a protected area;
- 55 - however,the IndigenousCommunity Development Project can contributeto the solutionof this conflictby generatingnew conditionsfor sustainabledevelopment based on an improvedsoil use and diversificationof productiveactivities.
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