Stepping Towards       Self-Sufficiency:       An Indigenous Economic Development Plan       Interim Report of the IDB/CAN...
Stepping Towards Self-Sufficiency                                                                                         ...
Stepping Towards Self-Sufficiency                                                                                         ...
Stepping Towards Self-Sufficiency                                                                      Page iiiIDB/CANTAP ...
Stepping Towards Self-Sufficiency                                                            Page 1IDB/CANTAP Indigenous D...
Stepping Towards Self-Sufficiency                                                              Page 2IDB/CANTAP Indigenous...
Stepping Towards Self-Sufficiency                                                               Page 3IDB/CANTAP Indigenou...
Stepping Towards Self-Sufficiency                                                               Page 4IDB/CANTAP Indigenou...
Stepping Towards Self-Sufficiency                                                              Page 5IDB/CANTAP Indigenous...
Stepping Towards Self-Sufficiency                                                             Page 6IDB/CANTAP Indigenous ...
Stepping Towards Self-Sufficiency                                                             Page 7IDB/CANTAP Indigenous ...
Stepping Towards Self-Sufficiency                                                              Page 8IDB/CANTAP Indigenous...
Stepping Towards Self-Sufficiency                                                               Page 9IDB/CANTAP Indigenou...
Stepping Towards Self-Sufficiency                                                            Page 10IDB/CANTAP Indigenous ...
Stepping Towards Self-Sufficiency                                                             Page 11IDB/CANTAP Indigenous...
Stepping Towards Self-Sufficiency                                                              Page 12IDB/CANTAP Indigenou...
Stepping Towards Self-Sufficiency                                                              Page 13IDB/CANTAP Indigenou...
Stepping Towards Self-Sufficiency                                                           Page 14IDB/CANTAP Indigenous D...
Stepping Towards Self-Sufficiency                                                          Page 15IDB/CANTAP Indigenous De...
Stepping Towards Self-Sufficiency                                                            Page 16IDB/CANTAP Indigenous ...
Stepping Towards Self-Sufficiency                                                             Page 17IDB/CANTAP Indigenous...
Stepping Towards Self-Sufficiency                                                                Page 18IDB/CANTAP Indigen...
Stepping Towards Self-Sufficiency                                                            Page 19IDB/CANTAP Indigenous ...
Stepping Towards Self-Sufficiency                                                              Page 20IDB/CANTAP Indigenou...
Stepping Towards Self-Sufficiency                                                    Page 21IDB/CANTAP Indigenous Developm...
Stepping Towards Self-Sufficiency                                                          Page 22IDB/CANTAP Indigenous De...
Stepping Towards Self-Sufficiency                                                             Page 23IDB/CANTAP Indigenous...
Stepping Towards Self-Sufficiency                                                          Page 24IDB/CANTAP Indigenous De...
Stepping Towards Self-Sufficiency                                                                Page 25IDB/CANTAP Indigen...
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
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Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon

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This report was published as part of the requirements of an ground-breaking Indigenous development project of the Inter-American Development Bank (IDB). The project, which was funded by the Canadian Trust Fund at the IDB, is understood to be the IDB’s first project focused so directly on Indigenous business and economic development. The project was developed by Wayne Dunn, who was contracted by the IDB to design a program that would enable the IDB to undertake a focused Indigenous development project in Peru. The report outlines progress on the overall project and specifically details 14 commercial opportunities and 7 more general development opportunities.

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Transcript of "Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon"

  1. 1. Stepping Towards Self-Sufficiency: An Indigenous Economic Development Plan Interim Report of the IDB/CANTAP Development Program in the Peruvian Amazon. June 1999 Confederación de Nacionalidades Amazónicas del Perú – CONAP Prepared by Wayne Dunn & Associates Ltd. AndConfederación de NacionalidadesAmazónicas del Perú – CONAPJirón Brigaidier Pumacahua 974Jesús María, Lima 11, PERUTelefax: 511.423.8391 R.J. BurnsideEmail: conap@telematic.com.pe International Limited
  2. 2. Stepping Towards Self-Sufficiency Page iIDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)Table of Contents1 EXECUTIVE SUMMARY .........................................................................................................................1 1.1 BACKGROUND ............................................................................................................................................1 1.2 PROGRESS ON THE PROJECT WORKPLAN .....................................................................................................1 1.2.1 Project planning and initial mission .................................................................................................1 1.2.2 Capacity development.......................................................................................................................2 1.2.3 Development of commercial activities ..............................................................................................3 1.2.4 Development Projects .......................................................................................................................5 1.2.5 Legal Analysis...................................................................................................................................6 1.2.6 Mission to Canada ............................................................................................................................6 1.2.7 Signing of Cooperation Agreements .................................................................................................72 INTRODUCTION .......................................................................................................................................9 2.1 REPORT STRUCTURE ..................................................................................................................................9 2.2 THE PROJECT .............................................................................................................................................9 2.3 BACKGROUND ............................................................................................................................................9 2.3.1 Project Origins .................................................................................................................................9 2.3.2 CONAP ........................................................................................................................................... 10 2.3.3 Consulting Team ............................................................................................................................. 11 2.3.4 Inter-Indigenous Partnerships ........................................................................................................ 113 OVERVIEW OF RESULTS AND CHALLENGES ............................................................................... 13 3.1 RESULTS AND ACCOMPLISHMENTS .......................................................................................................... 13 3.2 CHALLENGES ........................................................................................................................................... 17 3.2.1 Lack of salary for CONAP leadership ............................................................................................ 17 3.2.2 Language capacity of the consulting team...................................................................................... 17 3.2.3 Legislative review/development process ......................................................................................... 17 3.2.4 Project-centric training and capacity development process ........................................................... 18 3.2.5 New and innovative approach to indigenous development ............................................................. 18 3.2.6 Plethora of opportunities ................................................................................................................ 184 PROGRESS ON THE PROJECT WORK PLAN .................................................................................. 19 4.1 TASK SET 1 – PREPARATORY WORK, PROJECT PLANNING AND INITIAL MISSION .................................... 19 4.1.1 Meeting/co-ordination of the Consulting Team .............................................................................. 20 4.1.2 Workplan ........................................................................................................................................ 20 4.1.3 Project Meetings ............................................................................................................................. 24 4.1.4 Selection of Accounting Firm ......................................................................................................... 25 4.1.5 Training CONAP on Computer and Accounting Systems ............................................................... 25 4.1.6 Administrative Capacity and Support ............................................................................................. 26 4.1.7 Working with CONAP Regional Offices ......................................................................................... 26 4.1.8 Project Reports ............................................................................................................................... 27 4.2 TASK SET 2 – DEVELOPMENT OF STRATEGIC PLAN FOR OPERATIONS...................................................... 27 4.3 TASK SET 3 – ADMINISTRATION AND FINANCIAL TRAINING .................................................................... 27 4.4 TASK SET 4 – DEVELOPMENT OF COMMERCIAL ACTIVITIES .................................................................... 28 4.4.1 Mini hydro electric power generation ............................................................................................ 28 4.4.2 Camisea related opportunities ........................................................................................................ 29 4.4.3 De-mining opportunities ................................................................................................................. 31 4.4.4 Tourism ........................................................................................................................................... 33 4.4.5 Arts and crafts (Marotishobo) ........................................................................................................ 34 4.4.6 Transportation Services .................................................................................................................. 35R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  3. 3. Stepping Towards Self-Sufficiency Page iiIDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) 4.4.7 Development services in the border area ....................................................................................... 36 4.4.8 Educational program delivery/International Indigenous University .............................................. 37 4.4.9 National Park Development ........................................................................................................... 38 4.4.10 Geographical Information Systems and Remote Sensing ........................................................... 38 4.4.11 Forestry & non-timber forest products ...................................................................................... 39 4.4.12 Services to petroleum and mineral exploration .......................................................................... 40 4.4.13 Environmental Services .............................................................................................................. 41 4.4.14 Sectoral and Regional Opportunities ......................................................................................... 42 4.5 TASK SET 5 – DEVELOPMENT OF PROJECTS ............................................................................................. 43 4.5.1 Development and Peace ................................................................................................................. 44 4.5.2 Inter-American Foundation Project ............................................................................................... 44 4.5.3 Neegan International Partnership .................................................................................................. 44 4.5.4 Canadian International Development Agency ................................................................................ 44 4.5.5 Foncodes......................................................................................................................................... 44 4.5.6 Border area projects ....................................................................................................................... 44 4.5.7 Investment promotion mission and seminar ................................................................................... 45 4.6 TASK SET 6 – COMMERCIALIZATION OF PRODUCTS AND SERVICES ........................................................ 45 4.7 TASK SET 7 – LEGAL ANALYSIS ............................................................................................................... 45 4.7.1 World Bank: Operational Directive 4.30 – Involuntary Resettlement .......................................... 46 4.7.2 World Bank: Operational Directive 4.20 – Indigenous Peoples .................................................. 46 4.7.3 IDB: Community Consultation, Sustainable Development ............................................................. 46 4.7.4 IDB: Operational Directive 710 – Involuntary Resettlement ........................................................ 46 4.7.5 ILO: Convention 169 ...................................................................................................................... 47 4.7.6 UNCED: Chapter 26, Agenda 21 .................................................................................................. 47 4.7.7 UN Declaration on the Rights of Indigenous Peoples (Draft) ........................................................ 47 4.7.8 OAS Declaration on the Rights of Indigenous Peoples (Draft) ...................................................... 48 4.7.9 National Laws ................................................................................................................................. 48 4.8 TASK SET 8 – MISSION TO CANADA ......................................................................................................... 48 4.8.1 Meetings with Indigenous businesses ............................................................................................. 49 4.8.2 Meetings with Indigenous Institutions ............................................................................................ 49 4.8.3 Meetings with resource companies ................................................................................................. 49 4.8.4 Meetings with Federal and Provincial government officials .......................................................... 50 4.8.5 Other meetings and activities ......................................................................................................... 50 4.8.6 Expanding the Mission ................................................................................................................... 50 4.9 TASK SET 9 – SIGNING OF COOPERATION AGREEMENTS .......................................................................... 50 4.9.1 University of Washington ............................................................................................................... 50 4.9.2 Neegan International ...................................................................................................................... 51 4.9.3 Anecomsa ........................................................................................................................................ 51 4.9.4 Lagunas – Lac La Ronge twinning agreement ............................................................................... 51 4.9.5 International Indigenous University/SIFC ..................................................................................... 52 4.9.6 Miraflores Chamber of Commerce ................................................................................................. 52 4.9.7 Inter-Indigenous Partnerships ........................................................................................................ 52 4.10 TASK SET 10 – FINAL REPORT ............................................................................................................. 525 CHANGES TO CONSULTING TEAM .................................................................................................. 53R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  4. 4. Stepping Towards Self-Sufficiency Page iiiIDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)DisclaimerThis report was prepared by Wayne Dunn & Associates Ltd. and R. J. Burnside International Limited forConfederación de Nacionaes Amazónicas del Perú. The material in it reflects best judgement in light of theinformation available at the time of preparation. Any use which a third party makes of this report, or anyreliance on or decisions made based on it, are the responsibilities of such third parties. Wayne Dunn &Associates Ltd. and R. J. Burnside International Limited accepts no responsibility for damages, if any, sufferedby any third party as a result of decisions made or actions based on this report.Confederación de NacionalidadesAmazónicas del Perú (CONAP)Jirón Brigaidier Pumacahua 974, Jesús Maria, Lima 11, PERUTelefax: 511.423.8391Email: conap@telematic.com.peWayne Dunn & Associates Ltd.2457 Bakerview Road, Mill Bay, BC, VOR 2PO, CANADAPhone: +1.250-743-7619Fax: +1.250-743-7659Email: info@waynedunn.comR.J. Burnside International Limited15 Townline, Orangeville, Ontario, L9W 3R4, CANADAPhone: 519-941-5331Fax: 519-941-8120Email: info@rjburnside.comR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  5. 5. Stepping Towards Self-Sufficiency Page 1IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)1 EXECUTIVE SUMMARYThis report covers the project from its inception in late 1998 and includes activities andaccomplishments to May 31, 1999.1.1 BackgroundThe Inter-American Development Bank’s (IDB) Indigenous community development program for LaConfederación de Nacionalidades Amazónicas del Peru (CONAP) represents a new and innovativeapproach to indigenous development. This project, which is largely financed by the CanadianTechnical Assistance Program (CANTAP) focuses on institutional and economic development;assisting CONAP to move towards economic self-sufficiency and become more productiveparticipants in the Peruvian economy. A major focus of the project is the use of partnerships withCanadian indigenous businesses to bridge technical gaps and concentrate on strategic businessdevelopment opportunities.CONAPCONAP is a representative organization of indigenous peoples in the Peruvian Amazon. CONAP hasa national office in Lima and regional offices and executive in various communities throughout thePeruvian Amazon region.Consulting TeamThe consulting team is a collaboration between two Canadian firms, R.J. Burnside InternationalLimited and Wayne Dunn & Associates Ltd. The multi-disciplinary team brings together experts inindigenous business and economic development, international development and partnership building.Inter-Indigenous partnershipsA key strategic focus of the project is to link CONAP with Canadian indigenous businesses tofacilitate the sharing of successful business, economic and organizational development experiences.During the preparatory phase of the current project, CONAP urged the IDB to facilitate partnershipsbetween CONAP and Canada’s Indigenous Peoples. Canadian Indigenous Peoples have developedsuccessful businesses in all sectors of the economy and have expertise in connecting businessdevelopment with other social, community and organizational objectives. As well, IndigenousPeoples in Canada have well-developed capacity in educational, social, cultural and political areas.Building partnerships and sharing experiences between CONAP and Canadian Indigenous Peopleswill assist CONAP to capitalize on development and economic opportunities and will provide newopportunities and experiences for their Canadian partners.1.2 Progress on the project workplan1.2.1 Project planning and initial missionThe initial stages of the project involved working with CONAP to assess organizational capacity andidentify training and development needs. The project, which is being carried out by R.J. BurnsideInternational Limited and Wayne Dunn & Associates Ltd., both of Canada, then worked withCONAP to develop a ‘project-centric’ approach to capacity and institutional development. ThisR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  6. 6. Stepping Towards Self-Sufficiency Page 2IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)method focuses on learning by doing. Training and capacity development occurs while working onreal business and economic projects. This allows new skills to immediately be put to practical use,rather than developing new skills in a classroom setting and then attempting to apply them in real-lifesettings later. The project-centric approach is more difficult and time consuming to initiate, butexperience in Canada has proven that it creates more sustainable, long-term organizational andoperational capacity.The highlights of the initial mission were: Development of a good collaborative working relationship between CONAP and the consulting team. The establishment of a partnership between CONAP and Neegan International, an indigenous business from Canada. This partnership was announced at a high profile press conference at the Canadian Embassy in Lima The operationalizing of CONAP’s Lima office, A visit to CONAP regional centres of Iquitos, Lagunas and Pucallpa/Yarinacocha Identification of a number of project and business opportunities. Hosting of a Peru-Canada Indigenous Business Development Seminar Facilitation of discussions with the Miraflores Chamber of Commerce Purchase and installation of a computer system for CONAP’s offices Initiate training in computer operation, administration and financial procedures. This included computer orientation sessions held in the regional centres. Workshops on indigenous business development and Canada’s indigenous business development experience Development of a process for selecting an accounting firm1.2.2 Capacity developmentProgress has been made on enhancing CONAP’s organizational and operational capacity. As notedearlier, a decision was made to focus this process around meaningful projects, which will result inslower, but ultimately more sustainable progress in this area. A major thrust of the implementation ofthe capacity development strategy has been the identification and advancement of business andproject opportunities in order to provide a focus for training efforts. As the following sectionsindicate, substantial progress has been made in project development.In late May CONAP, the IDB and the consulting team met to evaluate the project and progress madein capacity development. They agreed that the consulting team would need to increase their hands-onsupport for CONAP’s operations during the next several months in order to better address CONAP’sproject development, training and capacity development needs. Arrangements have been made forone member of the consulting team to have an extended presence in CONAP’s office, providing extrahands-on support in these areas.The consulting team and CONAP have identified several areas that will be addressed in a strategicoperations and procedures manual. This item will be advanced and completed during the extendedpresence in CONAP’s offices. Other items that will be addressed during this period include:  Administration and financial trainingR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  7. 7. Stepping Towards Self-Sufficiency Page 3IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)  Project development and management  Office practices  Partnership development  Computer training  Other priorities as identified by CONAPThe entire consulting team will remain available via email and telephone to assist with this process.1.2.3 Development of commercial activitiesA major focus of the consulting team’s work to date has been the identification and development ofcommercial opportunities. Beginning with the partnership with Neegan and continuing through theidentification of thirteen specific commercial opportunities, the development of strategies and actionplans for each, and the identification of potential Canadian indigenous partners, the project has laidthe foundation for CONAP to take major strides towards economic self-sufficiency. The body of thereport presents background information, summary of work completed, a development strategy and anaction plan for each of the following commercial opportunities.1. Mini hydro electric power generation – There is an opportunity to utilize state of the art mini hydro electric power generation technology to supply many communities that are now serviced by more expensive diesel generated electricity. A potential partner has been identified and a pilot site located.2. Camisea related opportunities – Development of the Camisea gas field will result in billions of dollars in contract and business opportunities. Canadian indigenous businesses with expertise in supplying goods and services to oil and gas projects are ready to work with CONAP to develop business opportunities with the Camisea project.3. De-mining opportunities – The Peru-Ecuador peace agreement has created the need for huge areas of the border area to be cleared of anti-personnel mines. Canada is a world leader in the promotion of demining activities. A Canadian indigenous firm with expertise in demining is interested in working with CONAP to secure demining contracts in the region.4. Tourism development – The Amazon region is known worldwide for its tourism potential. Indigenous peoples have a strategic advantage in developing new tourism products because the fastest growing sector of the tourism industry is eco-cultural tourism. Although many parties have been identified who are interested in working with CONAP to develop specific opportunities, it is recommended that a comprehensive indigenous tourism strategy be developed. This would allow for systematic development of the industry in a manner that will maximize benefits to local indigenous peoples.5. Arts and Crafts – The Shipibo Peoples are well known for their arts and crafts ability. They have operated an arts and crafts business in Pucallpa/Yarinacocha for nearly 25 years. They have demonstrated remarkable commitment, sticking with the business through many difficult times. Currently there are several local issues that need to be addressed and then a detailed business plan developed that will chart a course towards financial self-sufficiency for the operation.6. Transportation services – The current transportation infrastructure and services in the entire region will need to be upgraded to accommodate the new business and investment the region is expecting. Transportation has proven to be an attractive and profitable sector for CanadianR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  8. 8. Stepping Towards Self-Sufficiency Page 4IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) indigenous businesses, with successful operations in air, marine, surface, construction and other aspects of the industry. A systematic review of this sector could identify significant opportunities to work with Canadian or other interests and participate productively in upgrading the system.7. Development services in Peru-Ecuador border area – The peace agreement has stimulated significant international interest in the border area. The World Bank and the IDB have both pledged USD$500 million to development programs in the area. Other nation states and development agencies are also planning activities in the area. CONAP, with its connection to local peoples and knowledge of the area, could be a strategic partner and/or promoter of many of the projects.8. Educational program delivery/International Indigenous University – The Saskatchewan Indian Federated College (SIFC) has been delivering Spanish educational programs in remote areas for a number of years. They have recently begun developing an International Indigenous University. SIFC wants to meet with CONAP and explore opportunities for collaborating in the new University and for ongoing program development and delivery.9. National Park Development – The World Bank has announced USD$20 million in financial support for the development of four new National Parks in Peru. One will be located in the Peru- Ecuador border region. Through partnerships with Canadian and other interests, CONAP can add technical expertise to its base of local knowledge and be in an excellent position to secure contracts related to the development of the Parks.10. Geographical Information Systems and Remote Sensing – GIS and Remote Sensing technology is the most efficient and effective technology for dealing with many of the unresolved land and demarcation issues in the Peruvian Amazon region. As well, increasing interest in mineral and petroleum resources in the area is fueling the demand for more and better geographical and geological information. A Canadian indigenous firm with expertise in GIS and Remote Sensing wants to work with CONAP to develop a business in this sector.11. Forestry and non-timber forest products – The Amazon region holds vast reserves of timber and is a virtual treasure of non-timber forest products (i.e. medicinal plants, teas, etc.). Even though the lands are traditional indigenous territories, Indigenous Peoples are, at best, marginal players in these industries. At least one existing company that is active in using local plants for teas has expressed interest in working with CONAP on this opportunity. The full range and extent of the opportunities represented by forestry and non-timber forest products is not well known, nor is it known what sustainable harvest/yield levels are. The project recommends conducting participatory research to create a sustainable forest usage strategy and opportunity identification study. After this research is completed various strategies, including joint venture, can be utilized to pursue the most promising opportunities.12. Services to petroleum and mineral exploration – Peru is home to two of the world’s major resource development projects; the aforementioned Camisea project and the USD$2.2 billion Antamina mining project. Attracting new investment into these sectors is a key component of the national governments economic development strategy. Numerous firms from Canada and other countries are actively exploring for petroleum and mineral resources throughout the Amazon region of Peru. This represents a significant business opportunity and one that Canadian indigenous peoples have a plethora of experience in.13. Environmental services – The Amazon region is known as one of the most environmentally sensitive regions in the world. Increasing settlement, resource development and other activities are creating many opportunities to supply environmental management, monitoring and otherR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  9. 9. Stepping Towards Self-Sufficiency Page 5IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) services. Indigenous peoples are recognized throughout the world for their environmental stewardship and sensitivity. Indigenous businesses in Canada have developed expertise in providing many environment related business services and are interested in working with CONAP to establish businesses in this sector.14. Sectoral and regional opportunities – There are many regional and sectoral opportunities for business and commercial projects in the Amazon region. Rice production, Jute, Silkworm production, forestry, fishing, coffee production, medicinal plants, and banana production are some that have been discussed and identified. Many of these opportunities have entrepreneurs and organizations ready to develop them further. The consulting team will work with them to assist in further development and commercialization of these opportunities.1.2.4 Development ProjectsIn addition to the commercial projects detailed in the previous section, the consulting team has beenworking with CONAP to identify and develop projects of a more developmental nature and to assistwith ongoing CONAP projects. Details on the following projects are contained in Section 4.5 of thisreport.1. Development and Peace – This is an ongoing, Canadian funded, project to assist in reviewing laws related to indigenous peoples and petroleum exploration.2. Inter-American Foundation (IAF) – A proposal was submitted to the IAF to assist CONAP with additional training, and organizational development. The IAF has refocused its program and is no longer supporting this type of project. However, they did agree to give priority consideration to providing up to $500,000 towards developing one of the business opportunities noted earlier – provided that a comprehensive business plan was in place.3. Neegan International Partnership – As noted earlier, the consulting team facilitated a partnership between CONAP and Neegan International, a Canadian indigenous company with expertise in business development. The partnership has contributed greatly to the advancement of the commercial opportunities discussed earlier.4. Canadian International Development Agency (CIDA) – A proposal is being developed for submission to CIDA to secure the resources for expanded support to CONAP’s economic development efforts.5. FONCODES – A number of potential FONCODES projects have been discussed, with several focusing on municipal water systems and waste management. The consulting team will continue working with FONCODES and CONAP to advance these discussions and develop a project proposal.6. Peru-Ecuador Border Area Projects – The aforementioned programs and projects for the border area will create project opportunities that are consistent with CONAP’s developmental priorities. Initial meetings have been held with IDB officials in this regard. Further investigation of this opportunity is required.7. Investment Promotion Mission and Seminar – Consideration is being given to identifying additional resources in order to expand CONAP’s upcoming mission to Canada; allowing moreR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  10. 10. Stepping Towards Self-Sufficiency Page 6IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) CONAP participation and enabling visits to more than one region of Canada. As well, the IDB has offered to host a Round Table in Washington, DC to promote CONAP’s projects and facilitate greater interaction between CONAP and Washington based development projects.1.2.5 Legal AnalysisThe consulting team conducted an identification and initial review of international directives anddeclarations that had potential impact on CONAP’s development aspiration. The following wereidentified as key instruments:1. World Bank: Operational Directive 4.30 – Involuntary Resettlement2. World Bank: Operational Directive 4.20 – Indigenous Peoples3. IDB: Community Consultation, Sustainable Development4. IDB: Operational Directive 710 – Involuntary Resettlement5. ILO: Convention 1696. UNCED: Chapter 26, Agenda 217. UN Declaration on the Rights of Indigenous Peoples (Draft)8. OAS Declaration on the Rights of Indigenous Peoples (Draft)A short discussion on key aspects of each is contained in Section 4.7. A local legal expert, MercedesManriquez, with extensive background in indigenous issues and a good working relationship withCONAP, was retained to undertake a more thorough review of these international instruments andnational laws.The consulting team also conducted a review of AYUDA MEMORIA, which is the framework for alarger set of negotiations between Indigenous Peoples and petroleum companies in Peru. Thisanalysis directed CONAP’s attention to a number of deficiencies in the framework and assisted withtheir involvement in the process.1.2.6 Mission to CanadaExtensive work has gone into preliminary preparations for CONAP’s upcoming mission to Canada.During the visit, CONAP will be exposed to some of Canada’s leading indigenous businesses andinstitutions. Many of these are interested in discussing specific partnership opportunities withCONAP. Some of the planned activities include:1. Indigenous businesses – there will be meetings with, and site visits to, many of the businesses that are interested in partnering with CONAP on the specific opportunities noted earlier. Site visits have also been arranged with several.2. Indigenous institutions – meetings have been set up with indigenous governmental, service delivery and educational institutions. Site visits have also been arranged with many.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  11. 11. Stepping Towards Self-Sufficiency Page 7IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)3. Resource companies – CAMECO, a Canadian based mining company that purchases over $100 million per year in goods and services from Canadian indigenous businesses, will host CONAP and discuss their work with indigenous peoples and how it adds value to their operations.4. Federal and Provincial government officials – meetings have been arranged with key officials of the provincial and federal governments.Other activities and media events will be planned after further consultation with CONAP. As notedearlier, there is a potential to expand the scope of the mission to enable visits to other regions ofCanada and meetings in Washington, DC.1.2.7 Signing of Cooperation AgreementsThe consulting team has worked with CONAP to build on CONAP’s existing cooperation andagreements and to identify new opportunities for strategic cooperation and collaboration. Some ofthese include:1. University of Washington – CONAP has a long-standing relationship with the University of Washington. The consulting team is working with CONAP to identify opportunities to build on this established relationship.2. Neegan International On February 5, 1999, at a high profile press conference at the Canadian Embassy in Lima, CONAP signed a Memorandum of Agreement with Neegan International, an Indigenous owned business from Canada, to collaborate in enabling Indigenous peoples to participate more productively in the Peruvian economy. The collaboration will focus on:  The creation and execution of a comprehensive economic development strategy for CONAP and its member regions.  Facilitating linkages and sharing of experiences between CONAP, its member communities, and Canadian Indigenous organizations involved in social, cultural, educational and business development.  Encouraging the governments of Peru and Canada to collaborate and share experience on indigenous business and economic development. This agreement has already produced many of the commercial and other project opportunities identified in earlier sections of this report.3. Anecomsa – Anecomsa is a Peruvian indigenous organization working with communities in the Andean region of the country. They are also receiving technical support and financial assistance from the IDB. CONAP and Anecomsa have signed an agreement to collaborate in the execution of the IDB projects.4. Lagunas – Lac La Ronge Community Twinning – During the visit to Lagunas the local Mayor asked CONAP for assistance in setting up a twinning arrangement with a Canadian indigenous community. After reviewing expectations and community criteria with CONAP, the consultingR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  12. 12. Stepping Towards Self-Sufficiency Page 8IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) team has identified a community – Lac La Ronge Indian Band. Lac La Ronge has expressed strong interest and is looking forward to moving this project forward.5. International Indigenous University – As noted earlier, the Saskatchewan Indian Federated College wishes to collaborate with CONAP in the development and delivery of educational programs and to explore possible CONAP involvement in the creation of an International Indigenous University.6. Miraflores Chamber of Commerce – Meetings were held with the President and other representatives of the Chamber. As well, Chamber representatives attended the Peru-Canada Indigenous Development Seminar that CONAP hosted. The Chamber expressed interest in building a closer relationship with CONAP and in identifying specific opportunities for collaboration.7. Inter-Indigenous Partnerships- as noted earlier, the consulting team has identified numerous indigenous businesses and institutions that are interested in developing commercial and development projects with CONAP.The following sections contain detailed information on the aspects of the project discussed above.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  13. 13. Stepping Towards Self-Sufficiency Page 9IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)2 INTRODUCTION2.1 Report StructureThis report is written to provide background information on the project and key participants, and topresent a summary of project activities and progress made to May 31, 1999. This is an interim reportand will be updated to incorporate comments and developments as the project progresses.Background information on the project, key participants and on inter-indigenous partnerships isprovided in Section 2. Section 3 highlights the overall approach to the project and identifiesaccomplishments and challenges. Section 4 contains an item by item review of progress on projecttasks and provides detailed information on potential business and economic projects. As well, adevelopment strategy and itemized workplan is presented for each commercial and businessopportunity listed. Section 5 discusses some changes to the consulting team makeup.A package of supporting and background materials has been prepared and provided to CONAP andthe IDB under separate cover.2.2 The ProjectThe overall objective of the project is to increase CONAPs ability to participate constructively in thePeruvian economy and to enhance CONAP’s institutional capacity to provide business and economicdevelopment, and other support services to indigenous communities of the Peruvian Amazon region.The project team is collaborating with CONAP to achieve this objective by assisting with workplanning, training and human resources development, partnership building and identifying anddeveloping economic and development project opportunities.The three main components of the project are:A. The institutional strengthening of CONAP, (a project focused capacity development approach that includes collaboration with Canadian indigenous businesses and institutions)B. Increased constructive participation in the Peruvian economy through the strategic development of collaboration with the private sector and improving access to national and international funding institutions, andC. Improving CONAP’s capacity to support the economic development aspirations of indigenous communities in the Amazon (with a focus on identifying and developing specific opportunities i.e. marketing of products and services and strategic participation in key areas of the local economy (tourism, resource development, etc.)2.3 Background2.3.1 Project OriginsR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  14. 14. Stepping Towards Self-Sufficiency Page 10IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)This project has its origins in meetings between the Canadian Executive Director’s office at the IDBand Mr. Bernardo Guillamon, a Micro-Enterprise Specialist with the IDB and in Apikan IndigenousNetwork’s pioneering work on inter-indigenous partnerships. These meetings spawned a preparatoryassistance project, which was financed by the Canadian Technical Assistance Program (CANTAP).The project, which was executed by Apikan, also designed the projects and developed terms ofreference for the CONAP project and for two other indigenous development projects in Peru. TheCanadian government, through the CANTAP program, is financing the costs of the consulting teamthat is assisting CONAP to execute the project. The IDB has provided financial assistance forCONAP to cover project costs and is administering the CANTAP funds as well.2.3.2 CONAPThe Confederation of Amazon Nations of Peru (CONAP), is a representative organization ofindigenous peoples in the Peruvian Amazon. CONAP has a national office in Lima and regionaloffices and executives in various communities throughout the Peruvian Amazon region.CONAP’s organizational focus addresses the need for sustainable cultural and economic self-determination and maintaining their political identity. The organization strives to reach these goalsby claiming larger control on their lands and natural resources, increasing participation in thenational, regional and local political and economic arenas and by developing a strong organizationalsystem. CONAP maintains linkages with other Indigenous Peoples throughout the Americas andaround the world, working in solidarity to support cultural, economic and political objectives.CONAP, with the participation of their individual members, national leaders, professionals and thecooperation of diverse national and international institutions seeks to develop and promote actions inthe following basic areas: Defense and Organizational Consolidation Capacity Building within Individuals for Management of the organization Human rights Promotion of Womens Rights Environmental Protection and Sustainable Development of the Amazon Invigoration of the Productive Capacity of the Communities Diffusion and Communication of InformationThe organization of CONAP is divided into four unique sections.1. National Congress of CONAP - the highest authority of the Organization and is composed of all the associate members. The members have the rights to speak and vote at the sessions of the National Congress.2. National Directive Council - is composed of President, Vice President, Secretary of Economy, Secretary of Records and Files, Secretary of Defense, Secretary of Organization, Secretary of Communications, Secretary of Training and Culture, Secretary of Feminine Matters, Secretary of Health, Secretary of Production and Commercialization and Secretary of Sports.3. Advisory Board - guides CONAP in its operation with recommendations from elders and appointed members of the advisory committee.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  15. 15. Stepping Towards Self-Sufficiency Page 11IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)4. Regional Headquarters - provides leadership to the regional communities by means of administration and economic leadership.2.3.3 Consulting TeamThe consulting team assisting CONAP is a collaborative effort between RJ Burnside InternationalLimited and Wayne Dunn & Associates Ltd., both of Canada. The multi-disciplinary team bringstogether a broad set of skills, including strong expertise in indigenous business and internationaldevelopment.2.3.4 Inter-Indigenous PartnershipsIn addition to cultural and lifestyle similarities, Indigenous Peoples throughout the Americas haveshared many comparable experiences during the five hundred years since Columbus first landed.Loss of traditional lands and livelihoods, colonialization, economic and social marginalization, andattempts at cultural extinction are some of the common elements of the history of Indigenous Peoplesthroughout the hemisphere. Despite these experiences, indigenous culture and identity remains strongand Indigenous Peoples are beginning to share new, more positive experiences; assisting each other toachieve development objectives.Many of Canada’s Indigenous Peoples have begun to focus on business and economic development,seeking to become more productive participants in the Canadian economy and to gain increasedcontrol over their own destinies. Over the past ten years this has produced a virtual explosion inindigenous business development with thousands of businesses, operating successfully in every sectorof the Canadian economy. At the same time indigenous peoples have been developing the politicaland institutional capacity to assume increasing control of the institutions and agencies that are dailyparts of their lives.Canadian Indigenous peoples lead the world in Indigenous business development and have developedexpertise in developing business in ways that are supportive of cultures and communities. LatinAmerican Indigenous peoples often have access to business opportunities, but lack the financial andtechnical capacity to take full advantage of them. Indigenous peoples in Latin America have strongfamilies and communities and are not besieged by many of the social issues that are plaguing manyNorth American Indigenous Peoples. Facilitating the development of partnerships and linkagesbetween Indigenous Peoples throughout the Americas can help to address many of the pressing socialand economic issues they are facing.The experiences of Canada’s Indigenous Peoples provide a huge pool of development expertise thatcan collaborate with other Indigenous Peoples who have not yet had the same developmentexperiences. Inter-Indigenous Partnerships in which Indigenous peoples in Canada and theircounterparts in other areas of the world share experience, capacity and learning are a promisingdevelopment strategy. These partnerships offer a number of specific advantages for all concerned(Canadian Indigenous Peoples, Indigenous Peoples from Latin America and elsewhere in the world,Development agencies and institutions, private sector firms operating in the vicinity or Indigenouspeoples, Nation States, etc.). The partnerships can facilitate sharing of relevant experiences, help tobridge capacity gaps, support institutional development and promote meaningful indigenousparticipation in resource development and other business projects.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  16. 16. Stepping Towards Self-Sufficiency Page 12IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)The natural resource sector (Mining, Oil & Gas, and related activities such as pipeline construction) isa fertile sector for the development of inter-indigenous partnerships between Canada and Peru.Indigenous businesses in Canada have a plethora of experience in providing goods and services to theresource industry. Indigenous peoples in Peru live on lands where companies from Canada andaround the world are exploring for and developing resources. Resource companies are oftensearching for new and constructive ways of involving Indigenous peoples in resource developmentprojects. However, CONAP, like many Indigenous organizations, lacks the technical and financialcapacity to assist their people to capitalize on these opportunities. Linking resource based CanadianIndigenous businesses together with Indigenous peoples from the Peruvian Amazon region will resultin the development of inter-Indigenous partnerships that will produce meaningful and sustainablebenefits for all concerned.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  17. 17. Stepping Towards Self-Sufficiency Page 13IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)3 OVERVIEW OF RESULTS AND CHALLENGESThe initial stages of the project focused on working with CONAP to identify strengths, weaknesses,project opportunities and project execution strategies. There was little interest in training people whowould then have no project or activity on which to apply their new skills. An early decision wasreached to avoid training and capacity development in a projectless vacuum and instead, tostrategically focus the capacity development around actual opportunities and issues. CONAP and theconsulting team felt that this opportunity-centric approach would serve to anchor the training anddevelopment in meaningful projects and activities, thereby increasing the relevance of the learningsand producing more sustainable results. They recognized that this approach would result in more up-front time and a slower start to the project. However, they agreed that the increased ability to producelong term, sustainable benefits far outweighed any issues that may arise from a slower project launch.3.1 Results and AccomplishmentsKey results, grouped according to the projects main components, are summarized below. A moredetailed documentation of results is contained in the Section 4.A. The institutional strengthening of CONAP, (a project focused capacity development approach thatincludes collaboration with Canadian indigenous businesses and institutions)Institutional strengthening – at the request of CONAP, an inception mission was undertaken toconduct an initial assessment of CONAP’s institutional and operational capacity and to discussexecution strategies. Initial training focus has been on developing the skills to operationalizeCONAP’s offices and to begin to lay the groundwork for a more strategic approach to economicdevelopment. In CONAP’s Lima office and in regional offices, specific training areas that wereinitiated included; computer orientation and operation; project administration, business and economicdevelopment strategy (focused on resource extraction and tourism), negotiations and projectmanagement. In addition, the project team utilized a press conference at the Canadian Embassy as ahands-on session in media relations training. It should be noted that the training to date has onlybegun to address the issues and that ongoing training and skills development will be required.Institutional strengthening is an ongoing process that will require continued focus for the life of thisproject and beyond.B. Increased constructive participation in the Peruvian economy through the strategic development ofcollaboration with the private sector and improving access to national and international fundinginstitutions.Economic development strategy, opportunity identification, and development – a key focus ofthe Jan/Feb 1999 mission was laying the groundwork for the elaboration of an economic developmentstrategy and identifying opportunities to enable CONAP to take a more productive role in theeconomy of the Peruvian Amazon region. Focus areas for the strategy included:(a) Bridging technical and financial gaps(b) Developing strategic partnerships and institutional collaboration(c) Identifying and focusing on key opportunitiesR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  18. 18. Stepping Towards Self-Sufficiency Page 14IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)(a) Bridging technical and financial gapsIn order to bridge the technical and financial gaps that prevented CONAP from taking full advantageof opportunities, it was decided to focus on internal capacity development and to develop an inter-indigenous partnership with a Canadian indigenous business that had the necessary capacity, expertiseand access to resources. The consulting team facilitated an agreement with Neegan International, aCanadian indigenous company headed by Mr. Ken Thomas, a Cree Indian from Saskatchewan,Canada. Ken Thomas is one of the leading indigenous business people in Canada and, as theChairperson of Aboriginal Business Canada, played a catalytic role in facilitating the financing anddevelopment of several thousand Canadian indigenous businesses.A Memorandum of Agreement was negotiated between CONAP and Neegan and was signed in aceremony with the Canadian Ambassador. The agreement generated wide media coverage in Peruand provides a cornerstone of CONAP’s economic development strategy. Additional details on theagreement are contained in Section 4.9.2 of this report.Workshops on indigenous business development and economic development strategies were heldwith CONAP’s executive and membership in Lima, Iquitos, Lagunas, Pucallpa and Yarinacocha. Theimproved understandings gained in these workshops, combined with previous CONAP activities inthe oil and gas sector, will form the basis for the creation of a strategically focused economicdevelopment strategy. The workshops also served to identify several business and commercialopportunities. These are discussed in more detail in Section 4.4 of this report.Meetings have been held with the Inter-American Foundation (IAF), a development financing arm ofthe United States, the Fondo Peru-Canada, Foncodes and other institutions regarding projectfinancing support. The Fondo Peru-Canada has approved a rice production project that will bestarting in September 1999. The IAF has agreed to give priority consideration to investing up to$500,000 to support the development of a viable business, once a detailed business plan has beencompleted. Foncodes has expressed interest in assisting with several projects.The consulting team has completed an initial identification of key international instruments anddirectives such as the International Labour Organization’s (ILO) Convention 169 on Indigenous andTribal Peoples. As well, the first phase of analysis has been completed. A final analysis and reportwill be completed in the next several months. Additionally, the project commissioned a review of thedocument AYUDA MEMORIA (#001-99-MEM/BM/MG). This document is a framework for muchlarger negotiations between the indigenous people and the petroleum companies. The review proveduseful for CONAP’s involvement in the process. Detailed information on this work is contained inSection 4.7 of this report.(b) Developing strategic partnerships and institutional collaboration – in addition to theaforementioned partnership between CONAP and Neegan significant progress has been made indeveloping additional strategic partnerships and institutional collaboration.Miraflores Chamber of Commerce – meetings were held with the President and representatives of the Chamber. A representative of the Chamber attended the public portion of the Peru- Canada Indigenous Business Development Seminar on Jan. 29. There is interest in exploring a range of potential business and collaboration opportunities including tourism development, non-timber forest products and other Amazon investment and development opportunities.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  19. 19. Stepping Towards Self-Sufficiency Page 15IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)Additional partnerships with Canadian indigenous businesses – the partnership with Neegan International has identified eight strategic opportunities for collaboration with Canadian indigenous businesses. Potential partners have been identified to explore opportunities in; mini hydro, Camisea, de-mining, National Park development, linking educational institutions, environmental services, transportation and community twinning. Development work is ongoing to further explore these opportunities and build the partnerships. This is covered in more detail in Section 4 of this report.Puerto Palmeras Tarapoto Resort – This resort is part of a chain of resorts operated by the Corporacion Turistica Amazonica S.A. As a result of meetings with the Miraflores Chamber of Commerce, a meeting was held with the owner of the Puerto Palmeras Tarapoto Resort to discuss the tourism industry and possible opportunities for collaboration with CONAP and its member organizationsMushu S.A. Productos Naturales – this company produces teas and other natural non-timber forest products. A meeting was held to explore the potential of collaborating with CONAP to harvest and market Amazonian products.Seminar on Trade and Investment in the Peruvian Amazon – Project team member Wayne Dunn was a speaker and panelist at a Peruvian government sponsored forum on Trade and Investment in the Peruvian Amazon, which was held at the Ronald Reagan International Trade Center in Washington, DC on March 4, 1999. This seminar, which was also attended by the Vice President of Peru and many Peruvian and international business people, provided an opportunity to communicate CONAP’s interest in developing business and economic collaboration with other institutions and firms.Increased collaboration with the Inter-American Development Bank (IDB) – The Chief of Indigenous Peoples and Social Development at the IDB, has agreed to host a round-table discussion to promote CONAP’s economic aspirations and to facilitate increased interaction with other IDB projects and with other Washington based development institutions.Canadian Embassy/Government – the Canadian Ambassador to Peru hosted the CONAP – Neegan signing ceremony and was a witness to the agreement. Various other departments and agencies of the Canadian government have expressed interest in collaborating with CONAPPeruvian National Government/World Bank – CONAP has been supported (albeit in a limited way due to budgetary constraints) in its involvement in the development of new resource legislation for Peru and other developments that impact their lands. The consulting team has assisted with this by providing a review of significant documents and suggesting issues and strategies. A significant development is the World Bank/Government of Peru requesting CONAP’s involvement in the creation of a national park in the Peru/Ecuador border region.Camisea and other resource development – The consulting team has worked with CONAP to develop a new, more constructive strategy for collaboration with Camisea and other resource development initiatives on CONAP’s lands. They plan to utilize strategic approaches such as the joint-venture strategy that has enabled Canada’s Lac La Ronge Indian Band to develop $40 million/year in business with local mining projects. CONAP has identified opportunities and business partners and is poised to capture significant business from Camisea and other projects, if they are able to secure implementation support. A major focus of CONAP’s mission to Canada in September/October 1999 will be to see first hand the Lac La Ronge and other successful Canadian indigenous businesses and to use this learning in developing Camisea related business opportunities.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  20. 20. Stepping Towards Self-Sufficiency Page 16IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)Mission to Canada – a tentative plan has been developed for CONAP’s mission to Canada. The mission will focus on introducing CONAP to the operations of the potential Canadian indigenous partners (see Section 4 for details). Additionally, the government of Saskatchewan and CAMECO, a major Canadian mining company, has agreed to participate in the mission.(c) Identifying and focusing on key opportunitiesCONAP is working with the consulting team to identify and focus on key opportunities that can makea notable contribution towards long term economic self-sufficiency. To date fourteen commercialopportunities have been identified and strategies created to develop them further. Examples includethe multi-billion dollar development of the Camisea gas field, the Peru-Ecuador border area which isexpecting billions of dollars in new development following the signing of the peace agreement,tourism development, and infrastructure project opportunities. A second area of focus is on assistingcommunities and local entrepreneurs to participate more productively in the existing local economy.The consulting team has traveled to the regions with CONAP executives to begin the process ofidentifying business opportunities, market potential and understanding the barriers that need to beovercome for various communities and regions. Additional details on specific opportunities areprovided in Section 4.4.C. Improving CONAP’s capacity to support the economic development aspirations of indigenouscommunities in the Amazon (with a focus on identifying and developing specific opportunities i.e.marketing of products and services and strategic participation in key areas of the local economy(tourism, resource development, etc.)As discussed in prior sections, excellent progress has been made on identifying specific economicopportunities and outlining strategies to take advantage of them. Initial training and capacitydevelopment efforts were undertaken, seeking to assist in developing key capacities andunderstanding of business and economic development. These have included:Operationalizing CONAP’s Lima office (basic office procedures, computer skills, filing, administration, etc.). Informal assessments were completed and initial aspects of the strategic plan of operations and the procedures manual were developed and implemented during this process. Computers were purchased and installed, staff training initiated, some manual and electronic reporting and recording forms were developed to enable CONAP staff and executive to improve key record keeping and information gathering activities. A selection procedure for engaging an accounting firm was developed; a number of firms submitted proposals and a series of interviews occurred. It is expected that CONAP will retain an accounting firm to implement a computerized financial accounting system and provide financial services and training in the near future. The consulting team has refocused the workplan to enable more resources to be dedicated to fully operationalizing CONAP’s offices in Lima.Peru-Canada Indigenous Business Development Seminar – on January 29 a Peru-Canada Indigenous Business Development Seminar was held at the Canadian Cooperation Office in Peru. The seminar featured discussion on the business and economic experiences of Canadian Indigenous Peoples. The strong focus on natural resource development was ofR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  21. 21. Stepping Towards Self-Sufficiency Page 17IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) particular interest to CONAP’s membership and the various private sector and governmental representatives in attendance.Business and economic development workshops were held in Lima, Iquitos, Pucallpa and Lagunas. There was a strong focus on strategic approaches to the issue and use was made of successful examples from Canada. The purpose of the workshops was to introduce new concepts and ideas such as the Canadian indigenous business development experience with joint-ventures, strategic targeting of opportunities, etc., to explain success stories (Lac La Ronge Band building a $40 million/year business) and to stimulate new ways of thinking about business and economic development.Computer awareness/orientation training – in addition to conducting sessions for staff and executives in CONAP’s Lima office, the consulting team conducted several hands-on computer orientation sessions during the regional visits. For many in the regions it was the first time they had ever seen a computer.3.2 ChallengesAs with any innovative, groundbreaking project, this one has faced, and continues to face a number ofchallenges. Some of these include:3.2.1 Lack of salary for CONAP leadershipTo be successful, this project must be a priority focus for CONAP leadership, occupying aconsiderable share of their time. This is difficult as CONAP has no core funding and is not able togive their executive and President a salary to enable them to provide for their families. The terms andconditions of funding for this project specifically prohibit paying of CONAP salaries. It is atestament to the dedication of CONAP’s leaders that they continue to be enthusiastically committed,investing hundreds of volunteer hours in the project, despite the economic strain it puts on theirfamilies. However, if project resources could be used for salaries the project would benefit greatlyfrom the increased time that the leadership could commit to it.3.2.2 Language capacity of the consulting teamSome members of the consulting team had little or limited ability to communicate in Spanish.Although this was largely overcome by having translators available, it did detract from the overallcommunication process.3.2.3 Legislative review/development processPeru, with assistance for the World Bank is currently undertaking a major review of resourceextraction legislation. Part of the review process involves consultations with CONAP and other localpeoples. This provides an excellent opportunity to negotiate local/indigenous preferences forconstructive involvement in resource development activities. A small preference can provide astrategic advantage for CONAP in its efforts to develop partnerships to supply downstream goods andservices to resource extraction projects. Canada’s Lac La Ronge Indian Band used a similar processto develop a $40 million/year business in mining. Unfortunately, CONAP does not have theresources or capacity to take full advantage of this opportunity. The consulting team does not haveR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  22. 22. Stepping Towards Self-Sufficiency Page 18IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)the mandate or resources to adequately support CONAP in this process. An attempt was made bycommissioning a review of the document AYUDA MEMORIA (#001-99-MEM/BM/MG).3.2.4 Project-centric training and capacity development processAs noted previously, this approach focuses on developing meaningful projects and activities and thenstructuring training and capacity development around them. This strategy is more sustainable,enables better overall learning, and assists in project development and overall progress towardseconomic self-sufficiency. For example, rather than conduct a generic training program innegotiations and then expect people to apply the new skills the next time they are in negotiations, anegotiations training program will be developed around a specific negotiation (i.e. participation in aparticular resource project). This process is also more time consuming and thus more costly asconsiderable additional research must be done to essentially provide advice on a particular set ofnegotiations. However, CONAP and the consulting team felt it was the most appropriate way as notonly will more effective learning occur, but an actual project will be furthered in the process.3.2.5 New and innovative approach to indigenous developmentThe approach being taken by this project focuses on developing real projects to address economicmarginalization and then structuring training and capacity development around these projects.CONAP has overall responsibility for the success or failure of the project. Although this is muchslower and often more difficult than traditional approaches where the consultant plays a much morecentral role in the clients operation, it will ultimately lead to a more sustainable result. Additionally,the bridging of technical and capacity gaps through partnerships with Canadian indigenous businessesis also a process that, while it offers significant long-term economic payoff, requires large upfrontinvestments of time and resources to identify and screen potential partners and to facilitate initialdiscussions and partnership development.3.2.6 Plethora of opportunitiesCONAP faces a plethora of exciting and substantial opportunities, many of which can produce longterm economic benefits. It requires a considerable investment of time and resources to work withCONAP to prioritize and rank those opportunities that will offer the best probability of success,providing the groundwork for the development of an economic base for CONAP and its membercommunities. We expect that this project can be a precursor to additional initiatives that will make along term, sustainable difference and chart a new course for indigenous development.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  23. 23. Stepping Towards Self-Sufficiency Page 19IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP)4 PROGRESS ON THE PROJECT WORK PLANThe results achieved to date are listed below under the headings of the task sets as listed under theterms of reference.4.1 Task Set 1 – Preparatory Work, Project Planning and Initial MissionThe first task involved initial meetings with CONAP to review project priorities and executionstrategies, assess CONAP’s institutional capacity, establish project team members, orientation forthose unacquainted with the specifics of the project, outline responsibilities, and confirm theworkplan. The initial mission of the Canadian consulting team occurred from January 18, 1999 toFeb 6, 1999 and involved Norm Looker, Wayne Dunn, Rodrigo Contreras, Grant Bennington andOscar Milliones. As well, Ken Thomas, of Neegan International participated in the mission at hisown expense.Highlights of the first mission included: Development of a good, collaborative working relationship between the consulting team and CONAP Executive and staff Establishment of an Inter-Indigenous partnership between CONAP and Neegan International Purchase and installation of computer system for CONAP’s Lima office Initial computer orientation and training for staff and executive Identification of a number of business and economic opportunities (see details in Section 4.4) Visits to CONAP regional offices in Iquitos, Lagunas and Pucallpa/Yarinacocha Hosting the first ever Peru-Canada Indigenous Business Development Seminar Public Awareness – CONAP received broad national coverage by all major Peruvian media for the signing ceremony of its agreement with Neegan International. Administration training and procedures – the consulting team developed forms (computerized and manual), record keeping procedures and information managing process to assist CONAP staff and executive with key administrative functions. This is an ongoing task and more progress will occur during subsequent missions and during the extended team’s presence in CONAP’s offices. Linkages were developed with other Peruvian and international businesses and institutions (see details in Section 4.9) CONAP Executive responsibilities were assigned for various project functions Responsibility Name Administration Issues Luis Katip - Accounting Computer Issues Isaac Paz/Fermin Punt Relations With Other Organizations Jorge Dionisio Negotiations With Private Companies Cesar Sarasara/Manuel MacKenzie and Development of ProjectsR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  24. 24. Stepping Towards Self-Sufficiency Page 20IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) Workshops on Indigenous business and economic development held in Lima and in CONAP regional centres (Lagunas, Iquitos, Pucallpa and Yarinacocha). These workshops also covered basic negotiation strategies, focusing on capturing benefits from resource development projects. Computer orientation training delivered in Lagunas, Iquitos, Pucallpa and Yarinacocha A facility was identified to provide ongoing, structured computer training A process was developed for selecting an accounting firm Proposals received from four accounting firms and interviews held with allWeek 1 Activities in CONAP’s national office in LimaJan 18-25Week 2 Activities in CONAP’s national office in LimaJan 25-30 Began travel to regional offices and initial meetings/workshops in IquitosWeek 3 Additional meetings/workshops in Iquitos and meetings in Lagunas,Jan 31 – Feb 6 Tarapoto, Pucallpa and Yarinacocha Agreement signed with Neegan International at press conference in Canadian Embassy Mission debriefing meetings held in Lima4.1.1 Meeting/co-ordination of the Consulting TeamA project and mission planning meeting was held in the Orangeville office of R. J. BurnsideInternational Limited in December 1998 between RJ Burnside International and Wayne Dunn &Associates. The Canadian project members of Norm Looker, Andrew Isaak, Grant Bennington,Wayne Dunn and Rodrigo Contreras met to review project progress and planning and to prepareworkplans and strategies for the initial project mission trip to Peru. Objectives of the mission were toinclude set-up of accounting systems, bank account, office employees, training, agreements withother organizations, identification of project opportunities, assist CONAP to begin networking withother institutions and businesses and, if possible, establish an initial inter-indigenous partnership.4.1.2 WorkplanProject Manager, Rui De Carvalho undertook a mission to Lima in May to update CONAP on thestatus of the project, discuss changes to the project team (see Section 5 for detail on project teamchanges) and to review the priorities and expectations for the remainder of the project. Based on thismission and the discussions with CONAP and IDB, the project workplan was revised as follows: Project WorkplanTask Description of Tasks Who WhenUpdate workplan Prepare an update to the Rui De Carvalho By June 1 and sent by original workplan based email to CONAP and on discussions of IDB by June 4 mission of May 18-20R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  25. 25. Stepping Towards Self-Sufficiency Page 21IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project WorkplanTask Description of Tasks Who WhenComplete report Prepare report on work Rui De Carvalho By Mon June 7 completed to date, Wayne Dunn outline of work plan for Andrew Isaak completion (translator)Draft of the The “procedures Wayne Dunn The draft or outlineProcedures Manual manual” requires Andrew Isaak should be completed by further definition; It Mon June 14 so that it was agreed that a draft can be sent to CONAP outline would be ahead of the upcoming prepared to be mission discussed with CONAP during the June missionDraft strategic It is important for Wayne Dunn The draft should beoperational plan CONAP to visualize the completed by Mon June concept of the 14 so that it can be sent development of its to CONAP ahead of the Strategic Operational upcoming mission Plan (4 year term); it was agreed that this is a The process of task that CONAP has to development of do but that we would Strategic Operational prepare a draft model Plan should remain for consideration and to open until after the get the process started mission to Canada to take advantage of exposure of new ideasPrepare for June 21 It was agreed that it is Rui De Carvalho The draft should bemission essential that this Wayne Dunn completed by Mon June mission be Ken Thomas 14 so that it can be sent appropriately planned Andrew Isaak to CONAP prior to the with the roles of all start of mission participants well defined ahead of timeDraft entrepreneurial A number of business Wayne Dunn Should be completedconcepts ideas will be put forth Ken Thomas for presentation during for the Executive to the mission; consider and discussion during the upcoming It is being covered in mission (should draw the current working upon on the information report. learned from the visit to the Regions)R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  26. 26. Stepping Towards Self-Sufficiency Page 22IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project WorkplanTask Description of Tasks Who WhenDraft marketing A sequel to the previous Wayne Dunn For presentation duringconcepts task Ken Thomas the June missionPreliminary This ties in with the Wayne Dunn For presentation duringidentification of previous two items Ken Thomas the June missionproducts and servicesConcepts in Draft of preliminary Wayne Dunn For presentation duringidentification of funds ideas for CONAP to Ken Thomas the June mission develop and follow up in order to achieve long term economic sustainabilitySubmissions to As much of the above Rui De Carvalho/will Before and during theCONAP and IDB should be submitted to compile and make June mission CONAP and IDB even submissions as in a preliminary format appropriate so that the intent of the work is communicatedIdentify individuals to It was agreed that four CONAP ideally prior to the Junereceive training and as many as eight mission individuals (for redundancy) should be identified by CONAP to receive training in areas of administration accounting/finance legal issues strategic planning and negotiationsJune 21 mission Assumed that the full Rui De Carvalho week will be Wayne Dunn allocated/draft agenda Ken Thomas to be prepared outlining Andrew Isaak (who will the week’s proposed remain in Lima - Oscar program Milliones to assist Andrew with the long Morning of June 21 term accommodation) should be dedicated to review the week’s workplan and expectations.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  27. 27. Stepping Towards Self-Sufficiency Page 23IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project WorkplanTask Description of Tasks Who WhenExtended Mission Preliminary list of Andrew Isaak tentative dates tasks: support from Oscar June 21 to September -become familiar with Milliones and from the 18 CONAP its people and Team in Canada (with one trip home or politics through email and visitor from home) -implement telephone administrative procedures -monitor implementation of financial systems -develop web page -provide computer training -develop procedures manual -acquisition of additional equipment -implement some capacity at regional centresLegal Framework Following the terms of Mercedes Manriquez sometime in AugustAnalysis reference and the after her schedule is background material able to allocate the provided by Wayne appropriate time Dunn recognition that if The terms of reference appropriate resources for the analysis will be were available, the reviewed during the analysis would be much upcoming mission and more extensive revised as necessaryWorkshop on CONAP’s objectives is Wayne Dunn and Ken scheduled to benegotiation and to have the workshop in Thomas assuming that determinedconflict resolution Peru to be scheduled to they may be assisting in coincide with a specific such negotiations negotiation individuals David Bennett as an alternativeR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  28. 28. Stepping Towards Self-Sufficiency Page 24IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project WorkplanTask Description of Tasks Who WhenMission by CONAP to Planning of mission to Ken Thomas at the end of SeptemberCanada be carried out during Wayne Dunn / early October the June mission in Lima individuals to be selected A draft itinerary will be available for discussionPreparation of Final Final document on how Andrew Isaak November 99Project Report the objectives of the Rui De Carvalho project were achieved - Wayne Dunn results based managementFinal Mission to closure to existing To be determined December 99 or moreCONAP project - initiation of practically in January new ventures 2000.4.1.3 Project MeetingsNorm Looker and Rodrigo Contreras attended the first meeting with CONAP. Cesar Sarasaraexpressed his satisfaction with the agreements between R. J. Burnside International Limited andCONAP. Mr. Sarasara also provided information on advancement of dialogues with resourcecompanies such as Shell, ARCO, Chevron, Philips and ICRAF. He also advised that CONAP wouldbe signing agreements with the University of Washington regarding biological research and areligious order to support land demarcation and titling for the Marainor region. Working with Mr.Sarasara, Mr. Looker and Mr. Contreras conducted a preliminary institutional capacity assessment ofCONAP to enable the consulting team to better prepare for subsequent missions.A second meeting was held with CONAP on November 16, 1998. In attendance were Norm Looker,R.J. Burnside International Limited (BIL), Cesar Sarasara (CONAP), Luis Katip (CONAP), JorgeDionisio (CONAP) and Mercedes Manriquez (independent). Contents of the meeting coveredconcerns and questions by CONAP and more information regarding possible economic agreements: CONAP expressed interest in having additional workshops associated with Indigenous involvement and petroleum exploration and operation in Peru, following the successful workshop held October 28-31, 1998 with Petro Peru. It was agreed that petroleum and other resource development would be a priority area for the development of business opportunities. CONAP has been receiving assistance from Canada’s Development & Peace to review laws governing issues about petroleum exploration. Burnside will be contacting them to discuss potential collaboration possibilities.R.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.
  29. 29. Stepping Towards Self-Sufficiency Page 25IDB/CANTAP Indigenous Development Program forLa Confederación de Nacionalidades Amazónicas del Peru (CONAP) A possible $45,000 demographics mapping project was discussed. The use of satellite remote sensing using RADARSAT may be useful and will be investigated. CONAP expressed concern that the large expectations for the project may be difficult to meet, given the limited budget available to CONAP and the consulting team. Training of two or three people in each of the communities in administration, accounting and marketing has been recommended. The goal would be that those trained could pass on their skills to others.4.1.4 Selection of Accounting FirmThe selection of an accounting firm to assist CONAP with their financial activities is a priority of thisproject. In keeping with the strategy of associating training with real projects and activities, theconsulting team utilized the selection of an accounting firm as a learning opportunity. Theconsulting team assisted CONAP to establish a process for selecting the accounting firm. Theprocess includes:  Identify accounting and financial support needs (completed)  Based on needs, prepare a terms of reference accounting and financial support (completed)  Identify firms who have the capacity to undertake the work invite proposals (completed)  Establish an evaluation process for ranking proposals (completed)  Screen proposals and conduct meetings/interviews with top candidates (completed)  Evaluate results of meetings/interviews and either select a firm to negotiate a contract with, or request additional information from select firms. (in progress)This process is much slower and more time consuming, but it provides an excellent training andcapacity building opportunity for CONAP.4.1.5 Training CONAP on Computer and Accounting SystemsThe consulting team decided to use the purchase of computers as another hands-on opportunity tofurther enhance CONAP’s institutional capacity. Rather than simply purchasing the computers andinstalling them in CONAP’s offices, the team involved CONAP executive and staff in the entireprocess including needs identification, supplier review and product selection.During the January/February mission computer training was initiated for CONAP staff andexecutives. Some already had a basic level of computer skills while others had little or no previousexposure to computers. The training was tailored to focus on the skill/experience level of eachparticipant.Prior to the purchase of CONAP’s new accounting system, the consulting team developed severalelectronic forms (fax cover sheets, letterhead, meeting attendance recording sheets, etc.), installedthem on CONAP’s existing computer system and trained the staff in their use. Several formal andnumerous informal and orientation sessions were held in CONAP’s Lima offices during theR.J. Burnside International Limited June, 1999Wayne Dunn & Associates Ltd.

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