Mr Shahid Javed Burki
Vice President Latin America and the Caribbean
The World Bank
1818 H St NW
Washington DC
USA
Dear Mr Burki,
RE: Rondonia Natural Resource Management Project
I read with some disquiet the article in World Bank News (22 February),
based on a letter you had written to the Financial Times, but which was
not published in the UK edition. I would like to take issue with a number
of points in the article attributed to you, which I believe misrepresent
both the facts and Oxfam's position.
You state that Oxfam is wrong to have suggested that Bank management
ignored the potential threat to the project represented by the Brazilian
Government's decree 1775, which opens up the boundaries of the majority
of Indigenous People's reserves, protected by the 1988 Brazilian
Constitution, to challenge by other claimants. Oxfam's reasons for saying
this is that: (i) there is no reference whatsoever to the decree in the
Report on the Status of Implementation for the Rondonia Natural Resource
Management Project - PLANAFLORO - which went to the Board on 25 January
1996; (ii) it was only on the day of that Board meeting (which was to
discuss whether to authorize a full inspection of the project under the
World Bank's new complaints mechanism - the Inspection Panel), that the
Bank's Legal Department contacted a specialist Brazilian NGO - the
Comiss'o Pr"-Indio - to request a copy of the text of the new decree.
Given that the legislation was approved by the Brazilian Congress on 8
January, this hardly suggests that the Bank was in your words 'carefully
studying the decree'. It would appear that the Bank had ignored the
likely impact of the decree until the matter was raised by Oxfam, through
the office of the UK Executive Director.
I accept that the Bank's belated 'preliminary judgement' was indeed that
this new regulation would not conflict with the indigenous people's
components of PLANAFLORO. However, this judgment was reached with
complete disregard for the concerns expressed to the World Bank by
Brazilian specialist NGOs and Indian people's organisations. The failure
by the PLANAFLORO Project Management Team to draw to the Board's attention
the possible incompatibility of the decree with the loan agreement is in
marked contrast with the view expressed by Robert Schneider, the World
Bank's Coordinator of the G-7 funded Pilot Programme, which also has a
component for the demarcation of Indian reserves. He stated in a letter
last September that:
The activities programmed under the Indigenous Lands Project are
based on pertinent Brazilian legislation and administrative procedures in
effect at the time the Grant Agreement was signed (July 6, 1995). Should
the legal situation change in a manner threatening the objectives of the
project, the Bank, as Trustee of the Pilot Program, would report to the
Donors, and seek counsel on the appropriate response.
Although the Brazilian Government has attempted to present the new
legislation as a minor amendment which will have little impact on the
rights of Indigenous people, this is not a view shared by those
representing Indians, who have strongly opposed the measure. CAPOIB, an
organization representing Brazil's Indians, and the Forum in Defense of
Indigenous Rights warned that by signing the decree 'the Government has
thrown away millions of dollars invested in the demarcation of indigenous
lands, which came from agreements signed abroad'. The constitutionality of
the legislation is also being contested in the Brazilian Federal courts.
According to Amnesty International 'among those isolated groups in the
state of Rondonia whose safety is further jeopardised by the new decree are
the Uru-eu-wau wau, Cano, Akunsu, Kassup and Jururei'.
Oxfam is indeed very concerned that some important indigenous areas
proposed to be fully regularized under this project as a priority are in
fact threatened under the terms of this decree. Since last July the
Uru-eu-wau wau reserve has suffered a number of encroachments, which
Indian organisations attribute to the announcement of the impending
legislation. The Brazilian Federal Government's Indian Agency, FUNAI, has
indicated that the Government of Rondonia has taken the first steps in the
process for challenging the boundaries of a number of Indian reserves,
five of which are covered by PLANAFLORO. They include: the Uru-eu wau wau
reserve, 10 per cent of which is being claimed by settlers. Similar
claims threaten the Mequens, the Karipuna, the Rio Guapor, Sagarana and
Massaco areas. It would appear that these areas have not been fully
registered in the local land registries and are therefore liable to
review.
Oxfam, and the organizations we work with in Brazil, believe that the
World Bank would be wrong to adopt a position about the merits of decree
1775 until the deadline for the presentation of challenges to Indian areas
expires in April 1996. Furthermore, it would be highly inappropriate for
the Bank to take a position, which would in effect pre-empt a ruling by
the Brazilian Federal Courts on the constitutionality of the decree.
Given the level of misunderstanding that exists between the Project staff
and indigenous communities and Brazilian NGOs working in this field, Oxfam
feels that it would be helpful for Bank Management to invite CAPOIB to
present its views to the Board before any final decision is taken. No
doubt the Bank will also wish to take into consideration the resolution
passed by the European Parliament on 15 February, which expresses concern
about the Brazilian Government's reversal of its indigenous peoples
policies, which could threaten the constitutional rights of Brazil's
Indian population.
With regard to your statement that Oxfam is wrong to assert that local
communities were not involved in the preparation of the action plan, may
I refer you to the letter from the Rondonia NGO Forum addressed to the
World Bank's President, James Wolfensohn, dated 13 February 1996, in which
they complain:
There was no effective participation by members of the Rondonia Forum
of NGOs and Social Movements in the preparation of the current Action
Plan. In the Status of Implementation Report dated December 15 1995, it
is stated that the updated version of the Action Plan was fully discussed
with members of the NGO Forum of Rondonia. However during the Bank's
supervision mission of September/October 1995 (whose Aide Memoire became
the basis of the Action Plan) only one meeting was held with members of
the NGO Forum to discuss a sub-component of Planafloro (the Community
Initiatives Programme - PIC). The Planafloro project as a whole, covering
the problems identified in the Request for Inspection was not discussed
with the Forum on this occasion.
The Forum then go on to say that they only received the Aide Memoire of
the September/October 1995 supervision mission in December 1995, and the
matrix of the Action Plan in Portuguese on January 23 1996 - that is to
say two days before the Board meeting took place. Consequently, neither
the Forum of NGOs and Social Movements of Rondonia, who are supposed to be
participating in the project, nor the Board, nor the Inspection Panel have
had a proper opportunity to consider whether the plan of action, proposed
by Bank Management, is adequate. Oxfam in its statement to the Board was
simply pointing out one obviously deficient area.
Finally, Oxfam shares your view that Planafloro could offer many benefits
to the people of Rondonia and, contrary to the implication in the World
Bank News article, we have never opposed the project. Any doubts we have
expressed over the years have arisen from the inadequate project
preparation; the absence of an appropriate policy and legal framework in
Rondonia to guarantee the project's objectives; the repeated failure of the
project staff to tackle crucial areas of non-compliance and to keep the
project on course, despite unprecedentedly high levels of supervision; and
the obstacles to the full participation of the intended beneficiaries.
The Board's decision to invite the Inspection Panel to participate in six
months time in reviewing implementation of the plan of action suggests
that too they share Oxfam's concerns.
May I assure you that Oxfam remains committed to working with the World
Bank, the Government of Rondonia and the Forum of NGOs and Social Movements
to improve the project's performance and help secure the benefits intended
for some of the state's most disadvantaged communities.
Yours sincerely,
Patricia Feeney
Policy Department
cc UK Executive Director