ILO Convention 169 and the private sector: questions and answers for IFC clients

This note seeks to address the private sector’s role in complying with the International Labour Organisation’s Convention 169 on Indigenous and Tribal Peoples. The briefing addresses main questions about the Convention's content, its legal scope, the risks non-compliance might pose for the private sector, and practical approaches that can be adopted to respond to the requirements of the Convention.

The paper discusses a number of issues:

• groups covered by the Convention
• legal obligations under the Convention
• the responsibility of private companies in protecting human rights
• the effect of the Convention on the granting of oil, gas and mining concessions
• how companies can mitigate risks relating to resource exploitation
• land rights and relocation of indigenous peoples
• the benefits to companies for complying with the Convention.

The paper argues that the implementation of the Convention not only protects the rights of indigenous and tribal peoples it also benefits private companies implementing projects that affect them. For example:

• culturally appropriate consultations with indigenous and tribal peoples are critical for establishing constructive relations with them and for addressing their concerns effectively
• decision-making processes that take into account the views of affected indigenous communities improve project design and facilitate its operation over time
• the clear definition and protection of the rights of indigenous peoples to land and natural resources facilitates the planning and implementation of privatesector projects and reduces the risk of conflicts over lands and resources.
• the participation of indigenous and tribal peoples in the benefits generated by private sector projects generates support for the project among these peoples, enhances the reputation of the companies that implement them, and lowers operational risks.