This guide for legal advisors, community leaders and members builds on Guide 1 in this series. If a community decides to negotiate with a potential investor, this guide describes issues that can be included in a community–investor contract. It also explains what language should be avoided in the contract. It is designed to help communities negotiate a contract with an investor that is clear, fair, and equitable.
This guide for legal advisors, community leaders and members explains how communities can prepare for interactions with potential investors, including making decisions about whether or not to negotiate. It can be used to help a community: (a) prepare before an investor arrives and (b) decide whether or not to enter into discussions or negotiations with an investor that has arrived. It should be used before any negotiations start.
Deciding whether or not to allow an investor to use community lands and natural resources is one of the most important decisions a community can make.
When negotiations are conducted fairly and inclusively, investments may result in the creation of jobs, provision of much-needed infrastructure such as schools, roads and clinics, and rental payments that have the potential to support the community’s long-term prosperity and wellbeing.
Successive governments in India have emphasized the need for industrial expansion and privatization as the foundation for economic stability and growth. This focus has led to the policy-induced transformation of rural and peri-urban landscapes into use for industry and infrastructure. These transformations have caused social conflicts and ecological impacts for land and resource-dependent people.
Land transformation has been at the centre of the economic growth of post-colonial Asia. In the 1990s, many Asian countries embraced economic liberalization and speculative business interests in land began to replace the state’s control of land for developmental purposes. The growing demand for land by corporations and private investors has fuelled several regional land rush waves in Asia, bringing them directly in conflict with communities that require these lands for their occupations and survival.
Across Africa, Asia and Latin America, investors are increasingly approaching rural communities seeking land for logging, mining, and agribusiness ventures. Even in those situations where the investors have followed FPIC guidelines and undertaken a formal “consultation” with the community, these consultations are generally conducted in a context of significant power and information asymmetries. Part of the power imbalance comes from communities’ lack of information about the value of community lands and natural resources.
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