Communal land, forests, and water sources are essential to the survival of many communities around the world. However, investors seeking resources may negotiate contracts that do not include rental payments. To address this imbalance, Namati and its partners designed an activity to empower communities to grasp the inherent value of their common areas to them, so that they can reject inequitable contract offers and negotiate contracts that will lead to community prosperity.
Across Africa, Asia and Latin America, investors are increasingly approaching rural communities seeking land for logging, mining, and agribusiness ventures. In response, international and national advocacy organizations are stepping forward to provide support to communities in negotiations with investors, often with a focus on ensuring adherence to international laws such as the right to free, prior, informed consent (FPIC). Yet even in situations when investors have followed FPIC principles and conducted a formal “consultation” to seek community consent to their proposed business venture, these consultations are generally conducted in a context of significant power and information asymmetries. Communities are frequently pressured by high-level government officials to consent to deals that they do not fully understand or desire. Community members may not be aware of the rental value of their land on the national market, the expected annual profits the investor will gain from the venture, the overall net worth of the investors’ company, and other financial information critical to negotiating a fair contractual agreement, including the value they themselves are deriving from their common lands. As a result, they have difficulty calculating an appropriate rental cost that leaves them in an equal or better position than before the investment.