FROM RIGHTS TO RESULTS An Examination of Agreements between International Mining and Petroleum Companies and Indigenous Communities in Latin America ABOUT RESOLVE RESOLVE builds strong, enduring solutions to environmental, social, and health challenges. We help community, business, government, and NGO leaders get results and create lasting relationships through collaboration. RESOLVE is an independent non-profit organization with a thirty-eight year track record of success. RESOLVE was founded in 1977 to promote the effective use of collaboration and consensus building in public decisions and to help people with diverse interests engage in dialogue to achieve outcomes. RESOLVE helped institutionalize the use of dispute resolution in policymaking. RESOLVE continues to support critical policy initiatives and designs and implements solutions-focused programs. From Rights to Results © RESOLVE. July 2015. For more information contact: [email protected]. pg. 2 From Rights to Results (Sept 2015) TABLE OF CONTENTS Table of Contents About RESOLVE ............................................................................................................................................. 2 About the Research Team ............................................................................................................................. 6 Acknowledgements ....................................................................................................................................... 8 Forward by the President of RESOLVE .......................................................................................................... 9 Executive Summary ..................................................................................................................................... 10 Introduction to the Report. ......................................................................................................................... 17 Background ............................................................................................................................................. 17 Methodology ........................................................................................................................................... 17 Extractive Resource Development and Indigenous Rights: The Scale of the Issue ................................ 18 Today’s International Norms and Standards .......................................................................................... 19 1. Governance ............................................................................................................................................. 21 The Importance of Governance .............................................................................................................. 22 Policy Frictions ........................................................................................................................................ 24 The Critical Role of the State .................................................................................................................. 24 The Role of Courts ................................................................................................................................... 26 Economic Priorities and Indigenous Rights ............................................................................................. 26 Governance and the Project Cycle .......................................................................................................... 27 The Role of Home Jurisdictions ............................................................................................................... 28 Analysis ................................................................................................................................................... 29 2. Rights and Norms .................................................................................................................................... 30 Macro-Political Drivers ............................................................................................................................ 30 The Impact and Operation of International Norms ................................................................................ 31 Agreements, FPIC, and Community Veto................................................................................................ 34 Illegal Actors and Violence ...................................................................................................................... 35 Awareness and Expectations .................................................................................................................. 36 The Example of First Nations in Canada ................................................................................................. 37 Influence of the UN and the Convention on Biological Diversity ........................................................... 38 Analysis ................................................................................................................................................... 39 From Rights to Results (Sept 2015) pg. 3 3. Relationships ........................................................................................................................................... 40 Relationships are Complex ...................................................................................................................... 41 Observed Tensions .................................................................................................................................. 43 Resetting the Relationship ...................................................................................................................... 44 Examples of Resetting the Relationship ................................................................................................. 45 Community Capacity ............................................................................................................................... 46 Maturity, Sector, and Corporate Standards Matter ............................................................................... 47 Analysis ................................................................................................................................................... 48 4. Character and Content of Agreements ................................................................................................... 49 The Purposes of Agreements .................................................................................................................. 49 Morally or Legally Binding? ..................................................................................................................... 50 When Companies Operate Without Agreements ................................................................................... 50 Legitimacy of Community Signatories .................................................................................................... 51 Non-Financial Compensation and Benefits ............................................................................................. 52 Financial Agreements .............................................................................................................................. 52 “Other” Types of Financial Arrangements .............................................................................................. 53 Calculating Financial Arrangements........................................................................................................ 53 Benefits and Compensation Issues ......................................................................................................... 53 Agreement Duration ............................................................................................................................... 54 Management and Monitoring................................................................................................................. 55 Reasons for Success ................................................................................................................................ 56 Challenges and Reasons for Failure ........................................................................................................ 57 Failure is mostly for Predictable and Avoidable Reasons ....................................................................... 58 Good Practices ........................................................................................................................................ 58 Leading Practice ...................................................................................................................................... 59 Analysis ................................................................................................................................................... 60 5. Challenges and Suggested Priorities for Future Work ............................................................................ 61 Annex 1. Country Briefs A. Bolivia ................................................................................................................................................. 63 B. Brazil ................................................................................................................................................... 69 C. Colombia ...........................................................................................................................................