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PROJECT INFORMATION DOCUMENT (PID) 
CONCEPT STAGE 
Report No.:  AB5314 
Project Name 
BR Indigenous Peoples Sustainable Develo 
Region 
LATIN AMERICA AND CARIBBEAN 
Sector 
Other social services (100%) 
Project ID 
P112043 
Borrower(s) 
GOVERNMENT OF BRAZIL 
FUNAI (Funda##o Nacional do #ndio) 
Tel: 61-3313-3501 
 
marcio.meira@funai.gov.br, 
Implementing Agency 
 
Environment Category 
[
]
A
[X] B   [ ] C   [ ] FI   [ ] TBD (to be determined) 
Date PID Prepared 
December 17, 2009 
Estimated Date of 
Appraisal Authorization 
November 15, 2010 
Estimated Date of Board 
Approval 
February 28, 2011 
1. 
Key development issues and rationale for Bank involvement 
 
Introduction
.
Although significant progress has been made in Brazil toward regularizing
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indigenous 
lands which comprise almost 13% of the national territory (21% of the Brazilian Amazon and 1.3% of 
other regions), land regularization alone does not guarantee the protection, well-being and sustainability 
of either these traditional groups or their habitats.  Brazil is the richest of the world's megadiversity 
countries, and indigenous lands in Brazil represent a significant portion (over 20%) of the remaining most 
preserved tropical forests as well as other biomes, to a far greater extent than even in other types of 
conservation units such as parks. 
 
The socio-economic and ecological homeostasis of isolated tribes with stone age economies unconnected 
to the nation-state and the cash economy is increasingly changing.  Today many Brazilian indigenous 
peoples live in precarious conditions, and while 16% of the national population live in extreme poverty, 
for indigenous people extreme poverty is estimated by IBGE at 38%. This is due to numerous factors 
including insufficient access to resources; contact and acculturation; growing cash needs; conflicts such 
as with invading goldminers or even landless peasants; and other factors.  Hence, change and adaptation 
of indigenous cultures and societies appears to be inevitable.  This can occur quite destructively as during 
the first half of the twentieth century when more than half the remaining indigenous groups in Brazil 
became extinct.  It could also occur positively when indigenous peoples themselves participate actively in 
determining the nature and pace of change 
–
in other words, sustainable ethnodevelopment
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.
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Hence, two of the central challenges for the futures of the approximately 700,000 indigenous peoples
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of 
Brazil who comprise 220 ethnicities and speak 180 different languages are:   
 
How best to protect their lands and natural resources --  from external threats but also with respect to the 
long-term conservation and sustainable use and management of the natural resources given that 
populations will grow and indigenous economies will evolve? 
 
How best to promote indigenous well-being 
–
in terms of empowering  these distinct societies to 
determine their own paths to socio-economic change consistent with their cultural values and lifeways – 
in other words, sustainable ethnodevelopment?   
 
A
related but important third question is whether Brazil and its relevant governmental institutions in 
general and its National Indian Agency (FUNAI) are correctly positioned to help meet these challenges 
successfully.  The joint World Bank (loan) and KfW (grant) operation being proposed in this Project 
Concept Note directly addresses these three questions.  If Brazil succeeds, it could become a bellweather, 
a
leader and a model for culturally appropriate ethnodevelopment of indigenous peoples in Latin 
America, and in the world. 
2. Proposed 
objective(s) 
 
To contribute to the implementation of Brazil's National Policy for Indigenous Peoples, which is 
integrated in the government's Pluriannual Plan (PPA) and embodies a strategic vision for the promotion 
and protection of indigenous peoples and their Constitutional rights; the recognition and respect for 
indigenous peoples and their cultures, linked to their active participation in the management of their land 
and natural resources. This strategy places a high priority on the needs and concerns of indigenous 
peoples within the context of national development policies while ensuring sufficient comprehension of 
indigenous socio-cultural, economic and environmental realities to ensure the physical and cultural 
integrity of these cultures and societies.  This development objective will be accomplished by means of: 
(i) strengthening FUNAI to effectively carry out its revised mission statement; (ii) creating the conditions 
for FUNAI to adequately articulate and coordinate indigenous policies and actions among diverse 
governmental agencies and nongovernmental organizations; (iii) strengthening indigenous rights to 
traditional and ecologically viable lands by implementing indigenous land regularization, protection 
activities including protection of recently contacted isolated Indians; and (iv) supporting the sustainable 
management of indigenous lands and natural resources by means of participatory planning and execution 
of subprojects.  
 
3. Preliminary 
description 
 
Component 1.  Institutional Development for the Management of Indigenous Lands
The objective of this component is to support FUNAI's restructuring in order to create the conditions for 
FUNAI to become a recognized center of excellence for the effective management and implementation of 
indigenous policies, recognized by other government agencies, civil society, and internationally by means 
of: (i)  improving the formulation, coordination, and implementation of indigenous policies, and 
improving the mechanisms of participatory management for the protection and promotion of the rights of 
indigenous populations;  (ii)  improving FUNAI's capacity for information management on indigenous 
issues in Brazil; and (iii) strengthening FUNAI's workforce. 
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Component 2.  Promoting Sustainable Ethnodevelopment in Indigenous Lands 
The objectives of this component is to improve the quality of life of indigenous peoples and the 
conservation and sustainable use of their natural resources by: (i) securing the rights of indigenous people 
to their traditional lands and natural resources via implementing policies of land regularization, territorial 
and environmental protection, and protection of isolated and recently contacted indigenous peoples; and 
(ii) supporting the sustainable management of indigenous lands via participatory planning and the 
formulation and implementation of subprojects for ethnodevelopment, including, among others, foci on: 
traditional knowledge management practices, improving production, food security, income generation, 
access to social rights, and conservation and sustainable use of natural resources.   
 
Component 3.  Support for Project Management
The objective of this component is to: (i) strengthen effective and efficient project management and 
administration; (ii) ensure high quality results oriented monitoring and evaluation; and (iii) ensure the 
design and implementation of a communications strategy including public dissemination.  
4. 
Safeguard policies that might apply 
 
·
Environmental Assessment (OP/BP 4.01) 
·
Natural Habitats (OP/BP 4.04) 
·
Forests (OP/BP 4.36) 
·
Physical Cultural Resources (OP/BP 4.11) 
·
Indigenous Peoples (OP/BP 4.10) 
·
Involuntary Resettlement (OP/BP 4.12) 
5. Tentative 
financing 
Source: ($m.) 
Borrower 
       5.47 
International Bank for Reconstruction and Development 
40 
GERMANY: KREDITANSTALT FUR WIEDERAUFBAU (KFW) 
      11.53 
 Total 
57 
 
6. Contact 
point 
Contact: Judith M. Lisansky 
Title: Sr Anthropologist 
Tel: (202) 473-5746 
Email: Jlisansky@worldbank.org