Community-Investor Negotiations Guide #1: Preparing in Advance for Potential Investors
As the human population rises, and climate change dramatically changes local ecosystems, there is more and more competition for fewer and fewer natural resources. National elites and international businesses are increasingly turning to more remote locations to extract minerals, log timber, establish agribusiness ventures, and build hotels and other tourism-related services.
In some legal jurisdictions, communities have the right to Free Prior Informed Consent; Indigenous Peoples have the right to Free Prior Informed Consent under international law (UNDRIP). However, consultations are often characterized by very significant information and power asymmetries: investors may arrive for the first time, accompanied by government officials who tell the community “that they are being consulted” and demand an immediate “yes.” Even worse, investors and/or government officials may run “consultations” as opportunities to only inform the community that an investment is happening. Community members - and their leaders - often do not know their rights, or may feel powerless in the face of influential government officials. The consultation may not even take place in the local language, making it very hard for community members to understand what is being discussed.
Furthermore, potential investors also often make elaborate promises of jobs, infrastructure, rental payments, etc. - yet never put these promises into an enforceable contract. Community members may welcome an investment on the assumption that the investor will bring needed/promised jobs and development, yet not know that if these promises are not put in writing, they are absolutely meaningless and may never happen.
After searching in vain for a low-literacy guide for communities about how to prepare to negotiate and then negotiate with potential investors, Namati and CCSI decided to write these guides for community members, leaders, and their advocates/paralegals/NGO activists, etc..
Guide 1 is designed to prepare communities in advance - it details how they can:
1) Create a community vision for their future development, so they can assess whether an investment would be either advance their vision or negatively impact their desired future;
2) Understand the value of their land to them, so they know how to assess the investors' offers of payment;
3) Make rules to guide how they and their leaders interact with investors and help them to manage their lands and natural resource sustainably and equitably;
4) Work to resolve conflicts around how to react to potential investors - as community members often have very different opinions on what is best for the community; and
5) Prepare for negotiations by researching the investor, creating a negotiating team, and agreeing on points the team will advocate to be included in the contract.
It also details community members' legal rights, explains what an authentic "consultation" should include, and advises community members on what documents about the potential investment they should get copies of and read so they can make a decision about the investment with full knowledge and their eyes wide open, knowing what they would be inviting into their community.