Adequate Compensation in Case of Expropriation of Tribal People’s Land: the Case of Belo Monte, Brazil

Developing projects in traditionally occupied territories affects indigenous and tribal groups with particularly serious consequences for their livelihood and agro-ecological spaces. The ILO Convention n. 169 on Indigenous and Tribal Peoples provides the same safeguards for both indigenous and tribal communities, including as to the use and enjoyment of traditionally occupied territories. In the Brazilian legal framework, distinctions between the two groups which might lead to discrimination claims among them and their entitlements to land are instead present. More radically, civil law notions such as “property” or “possession” are inadequate to depict the special relations between indigenous and tribal peoples and the land they occupy. Indeed, this relation goes beyond merely patrimonial aspects and has a deep spiritual meaning. The construction of the Belo Monte Hydroelectric Power Plant in the Xingu Basin, Brazil, which is causing the displacement of 60.000 people, will be used as a case study. The remedial actions taken by the Norte Energia consortium have not been able to adequately compensate the material and moral damages suffered by tribal peoples. This paper aims to: (a) identify the legal issues hindering the granting of prior and fair compensation for the losses suffered by tribal peoples, and (b) suggest best practices for effective compensation.