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Performance Standard 7-Rev- 0.1-Clean: Indigenous Peoples

Performance Standard 7-Rev- 0.1-Clean: Indigenous Peoples

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Published by IFC Sustainability

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Published by: IFC Sustainability on May 13, 2010
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April 14, 2010
Performance Standard 7 \u2013 Rev -0.1
Indigenous Peoples

1. Performance Standard 7 recognizes that Indigenous Peoples, as social groups with identities that are distinct from dominant groups in national societies, are often among the most marginalized and vulnerable segments of the population. Their economic, social, and legal status often limits their capacity to defend their rights to, and interests in, lands and natural and cultural resources, and may restrict their ability to participate in and benefit from development. They are particularly vulnerable if their lands and resources are transformed, encroached upon by outsiders, or significantly degraded. Their languages, cultures, religions, spiritual beliefs, and institutions may also be under threat. These characteristics expose Indigenous Peoples to different types of risks and potentially more severe impacts, including loss of identity, culture, and natural resource-based livelihoods, as well as exposure to impoverishment and diseases.

2. Private sector projects may create opportunities for Indigenous Peoples to participate in, and benefit from project-related activities that may help them fulfill their aspiration for economic and social development. In many countries, governments play a central role in the management of Indigenous Peoples\u2019 issues and clients must therefore collaborate with the responsible authorities. In addition, this Performance Standard recognizes that Indigenous Peoples may play a role in sustainable development by promoting and managing activities and enterprises as partners in development.


To ensure that the development process fosters full respect for the human rights and the dignity, aspirations, cultures, and natural resource-based livelihoods of Indigenous Peoples


To avoid adverse impacts of projects on communities of Indigenous Peoples, or when avoidance is not feasible, to reduce, restore, and/or compensate for such impacts

To provide opportunities for benefit sharing and sustainable development
outcomes, in a culturally appropriate manner
To establish and maintain an ongoing relationship with the Indigenous Peoples
affected by a project throughout the project\u2019s life-cycle

To foster good faith negotiation1 with, and informed participation of, Indigenous Peoples when projects (i) are to be located on lands under traditional or customary use by Indigenous Peoples; (ii) require relocation of Indigenous Peoples from traditional or customary lands; (iii) or when projects involve commercial use of Indigenous Peoples cultural resources

To respect and preserve the culture, knowledge, and practices of Indigenous
Scope of Application

3. The applicability of this Performance Standard is established during the social and environmental risks and impacts identification process, while the implementation of the actions necessary to meet the requirements of this Performance Standard is managed through the client\u2019s

1 Good faith negotiation involves (i) willingness to engage in a process and availability to meet at reasonable

times and frequency; (ii) provision of information necessary for informed negotiation; (iii) exploration of key issues of importance; (iv) mutually acceptable procedures for the negotiation; (v) willingness to change initial position and modify others where possible; and (vi) provision of sufficient time to both parties for decision making.

April 14, 2010
Performance Standard 7 \u2013 Rev -0.1
Indigenous Peoples
social and environmental management system. The assessment and management system
requirements are outlined in Performance Standard 1.

4. There is no universally accepted definition of \u201cIndigenous Peoples.\u201d Indigenous Peoples may be referred to in different countries by such terms as \u201cIndigenous ethnic minorities,\u201d \u201caboriginals,\u201d \u201chill tribes,\u201d \u201cminority nationalities,\u201d \u201cscheduled tribes,\u201d \u201cfirst nations,\u201d or \u201ctribal groups.\u201d

5. In this Performance Standard, the term \u201cIndigenous Peoples\u201d is used in a generic sense to refer
to a distinct social and cultural group possessing the following characteristics in varying degrees:
Self-identification as members of a distinct indigenous cultural group and
recognition of this identity by others
Collective attachment to geographically distinct habitats or ancestral territories in
the project area and to the natural resources in these habitats and territories
Customary cultural, economic, social, or political institutions that are separate from
those of the dominant society or culture
An indigenous language, often different from the official language of the country or

6. This Performance Standard applies to groups or communities of Indigenous Peoples who maintain a collective attachment to distinct habitats or ancestral territories and the natural resources therein. It may also apply to groups or communities that have lost collective attachment to distinct habitats or ancestral territories in the project area, occurring within the concerned group members\u2019 lifetime, because of forced severance, conflict, government resettlement programs, dispossession of their lands, natural disasters, or incorporation of such territories into an urban area.

7. The client may be required to seek inputs from one or more qualified experts to ascertain whether a particular group is considered as Indigenous Peoples for the purpose of this Performance Standard.

Avoidance of Adverse Impacts

8. The client will identify through a social and environmental risks and impacts identification process all communities of Indigenous Peoples who may be affected by the project within the project\u2019s area of influence, as well as the nature and degree of the expected direct, indirect, and cumulative social, cultural (including cultural heritage2), and environmental impacts on them.

9. When avoidance is not feasible, the client will reduce, restore, and/or compensate for these impacts in a culturally appropriate manner commensurate with the nature and scale of such impacts and the vulnerability of the affected Indigenous Peoples. The client\u2019s proposed action will be developed with the informed participation of affected Indigenous Peoples and contained in a time- bound plan, such as an Indigenous Peoples Development Plan, or a broader community development plan with separate components for Indigenous Peoples consistent with the requirements of paragraph 10.3

2 Additional requirements on protection of cultural heritage are set out in Performance Standard 8.
3 The determination of the appropriate plan will require the input of a qualified expert. A community development
plan may be appropriate in circumstances where Indigenous Peoples form part oflarger affected communities.
April 14, 2010
Performance Standard 7 \u2013 Rev -0.1
Indigenous Peoples
Information Disclosure, Consultation, and Informed Participation

10. The client will establish a relationship with the affected communities of Indigenous Peoples from as early as possible in the project planning and maintain it throughout the project life-cycle. In projects with adverse impacts on affected communities of Indigenous Peoples, the consultation process will ensure their free, prior, and informed consultation and facilitate their informed participation on matters that affect them directly, such as the project\u2019s direct and indirect adverse impacts, proposed mitigation measures, the sharing of development benefits and opportunities, and implementation issues. The process of community engagement will be culturally appropriate and commensurate with the risks and potential impacts to the Indigenous Peoples. In particular, the process will include the following:


Involve Indigenous Peoples\u2019 representative bodies and organizations (e.g., councils of elders or village councils), as well as members from the communities of Indigenous Peoples


Enable members of Indigenous Peoples\u2019 communities to become aware of, have access to, and understand project information (including the project\u2019s social and environmental impacts) and have the opportunity to engage with the client

Be inclusive of both women and men and of various age groups in a culturally
appropriate manner
Provide sufficient time for Indigenous Peoples\u2019 collective decision-making

Facilitate the Indigenous Peoples\u2019 expression of their views, concerns, and proposals in the language of their choice, without external manipulation, interference, or coercion, and without intimidation


Ensure that the grievance mechanism established for the project, as described in Performance Standard 1, is culturally appropriate and accessible for Indigenous Peoples

Mitigation, Compensation, and Development Benefits

11. The client will ensure that a process of free, prior, and informed consultation is carried out. The client and the affected communities of Indigenous Peoples will identify mitigation and/or compensation measures as well as opportunities for culturally appropriate and sustainable development benefits.

12. Mitigation measures as well as the determination, delivery, and distribution of compensation and other benefit sharing measures to affected Indigenous Peoples will take account of the laws, institutions, and customs of the affected groups as well as their level of interaction with mainstream society. Eligibility for compensation can either be individually or collectively-based, or be a combination of both.4 Where compensation occurs on a collective basis, mechanisms that promote the effective delivery and distribution to all eligible members of the group will be defined and implemented.

13. The scale of project risks and impacts and the vulnerability of the affected Indigenous Peoples will determine the nature of the Indigenous Peoples development benefits supported by the project. Identified opportunities should aim to address the goals and preferences of the Indigenous Peoples

4 Where control of resources, assets and decision making are predominantly collective in nature, efforts will be
made to ensure that benefits and compensation are collective where possible.

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