1. CHAPTER 5
Globalization and cultural choice
“I do not want my house to be walled in on cultures giving way to a world dominated by Policies that regulate the
all sides and my windows to be stuffed. I Western values and symbols. The questions go
advance of economic
want the cultures of all lands to be blown deeper. Do economic growth and social progress
about my house as freely as possible. But I have to mean adoption of dominant Western val- globalization must
refuse to be blown off my feet by any.” ues? Is there only one model for economic pol-
promote, rather than
—Mahatma Gandhi1 icy, political institutions and social values?
The fears come to a head over investment, quash, cultural freedoms
When historians write of the world’s recent his- trade and migration policies. Indian activists
tory, they are likely to reflect on two trends: the protest the patenting of the neem tree by foreign
advance of globalization and the spread of pharmaceutical companies. Anti-globalization
democracy. Globalization has been the more movements protest treating cultural goods the
contentious, because it has effects both good and same as any other commodity in global trade and
bad, and democracy has opened space for peo- investment agreements. Groups in Western Eu-
ple to protest the bad effects. So, controversies rope oppose the entry of foreign workers and
rage over the environmental, economic and so- their families. What these protesters have in
cial consequences of globalization. But there is common is the fear of losing their cultural iden-
another domain of globalization, that of cul- tity, and each contentious issue has sparked
ture and identity, which is just as controversial widespread political mobilization.
and even more divisive because it engages or- How should governments respond? This
dinary people, not just economists, government chapter argues that policies that regulate the ad-
officials and political activists. vance of economic globalization—the move-
Globalization has increased contacts be- ments of people, capital, goods and ideas—must
tween people and their values, ideas and ways promote, rather than quash, cultural freedoms.
of life in unprecedented ways (feature 5.1). Peo- It looks at three policy challenges that are among
ple are travelling more frequently and more the most divisive in today’s public debates:
widely. Television now reaches families in the • Indigenous people, extractive industries
deepest rural areas of China. From Brazilian and traditional knowledge. Controversy
music in Tokyo to African films in Bangkok, to rages over the importance of extractive in-
Shakespeare in Croatia, to books on the history dustries for national economic growth and
of the Arab world in Moscow, to the CNN the socio-economic and cultural exclusion
world news in Amman, people revel in the di- and dislocation of indigenous people that
versity of the age of globalization. often accompany mining activities. Indige-
For many people this new diversity is ex- nous people’s traditional knowledge is rec-
citing, even empowering, but for some it is dis- ognized by the Convention on Biological
quieting and disempowering. They fear that Diversity but not by the global intellectual
their country is becoming fragmented, their val- property rights regime as embodied in the
ues lost as growing numbers of immigrants World Intellectual Property Organization
bring new customs and international trade and and the Trade-Related Aspects of Intellec-
modern communications media invade every tual Property Rights agreement.
corner of the world, displacing local culture. • Trade in cultural goods. International trade
Some even foresee a nightmarish scenario of and investment negotiations have been
cultural homogenization—with diverse national divided over the question of a “cultural
GLOBALIZATION AND CULTURAL CHOICE 85

2. Feature 5.1 What’s new about globalization’s implications for identity politics?
Cross-border flows of investment and knowl- medicinal value, food varieties that consumers people had both communal land ownership
edge, films and other cultural goods, and peo- demand and other valuable knowledge. En- and mineral rights over their territory and that
ple are not new phenomena. Indigenous people trepreneurs were quick to see the market po- attempts to dispossess them constituted racial
have struggled for centuries to maintain their tential if they could patent and sell this discrimination. Indigenous people now own
identity and way of life against the tide of for- knowledge. So traditional knowledge is in- or control more than 16% of Australia, with the
eign economic investment and the new set- creasingly misappropriated, with many “in- Indigenous Land Corporation expected to be
tlers that often come with it. As chapter 2 ventions” falsely awarded patents. Examples fully funded with a A$1.3 billion capital base,
shows, new settlers have spread their culture, include the medicinal properties of the sacred to be used to purchase land for indigenous
sometimes by design, often by failing to re- Ayahuasca plant in the Amazon basin people unable to gain ownership by other
spect indigenous ways of life. Similarly, the (processed by indigenous communities for means.6
free flow of films has been an essential part of centuries); the Maca plant in Peru, which en-
the development of the industry since the early hances fertility (known by Andean Indians Flows of cultural goods—films and other
20th century. And people have moved across when the Spanish arrived in the 16th cen- audiovisual products
national borders from the earliest times. In- tury); and a pesticidal extract from the neem The controversy over cultural goods in inter-
ternational migration has risen in recent tree used in India for its antiseptic properties national trade and investment agreements has
decades but is still below 3% of world popu- (common knowledge since ancient times). intensified because of exponential growth in
lation, no higher than it was when it last peaked Developing countries seldom have the re- the quantity of trade, increasing concentration
100 years ago.1 sources to challenge false patents in foreign of the film industry in Hollywood and the grow-
What makes these flows a stronger source jurisdictions—indigenous people even less so. ing influence of films and entertainment on
of identity politics today? Are old problems A March 2000 study concluded that 7,000 youth lifestyles.
worsening? Are new problems emerging? Or patents had been granted for the unauthorized World trade in cultural goods—cinema,
are people simply freer, with more capacity to use of traditional knowledge or the misappro- photography, radio and television, printed
claim their rights? For each case, the answer priation of medicinal plants.5 matter, literature, music and visual arts—
is different but contains an element of all But indigenous groups are increasingly as- quadrupled, from $95 billion in 1980 to more
three. sertive. Globalization has made it easier for in- than $380 billion in 1998.7 About four-fifths of
digenous people to organize, raise funds and these flows originate in 13 countries.8 Hollywood
Indigenous people and flows of network with other groups around the world, reaches 2.6 billion people around the world,
investment and knowledge with greater political reach and impact than and Bollywood 3.6 billion.9
Globalization has accelerated the flows of in- before. The United Nations declared 1995–2004 In the film industry US productions reg-
vestment that profoundly affect the livelihoods the International Decade for the World’s In- ularly account for about 85% of film audi-
of many indigenous people. In the last 20 years digenous People, and in 2000 the Permanent ences worldwide.10 In the audiovisual trade
more than 70 countries have strengthened leg- Forum on Indigenous Issues was created. In Au- with just the European Union, the United
islation to promote investment in extractive in- gust 2003 the Canadian government recog- States had an $8.1 billion surplus in 2000, di-
dustries such as oil, gas and mining. Foreign nized the ownership claims of the Tlicho Indians vided equally between films and television
investment in these sectors is up sharply (figure over a diamond-rich area in the Northwest Ter- rights.11 Of 98 countries around the world
1). For example, investments in mining explo- ritories. In October 2003 the Constitutional with comparable data, only 8 produced more
ration and development in Africa doubled be- Court of South Africa ruled that indigenous films than they imported annually in the
tween 1990 and 1997.2 1990s.12 China, India and the Philippines are
Because so many of the world’s untapped among the largest producers in the number of
natural resources are located in indigenous Figure
films per year. But the evidence changes when
Rapid increases in investments
people’s territories, the global spread of in- 1 in extractive industries in revenue is considered. Of global production
vestments in mining and the survival of in- developing countries, 1988–97 of more than 3,000 films a year Hollywood ac-
digenous people are inextricably linked (see counted for more than 35% of total industry
Inflows in mining, quarrying and petroleum
map 5.1 and table 5.1). These trends have in- 5,671 revenues. Furthermore, in 1994–98, in 66 of
Millions of US$
6,000
creased pressure on indigenous people’s 73 countries with data, the United States was
5,000
territories, resulting in forcible displacement the first or second major country of origin of
in Colombia, Ghana, Guyana, Indonesia, 4,000 3,580 imported films.13
1988 1997
Malaysia, Peru and the Philippines.3 If cur- 3,000 The European film industry, by contrast,
rent trends continue, most large mines may 2,037 has been in decline over the past three decades.
2,000
end up being on the territory of indigenous 1,219 Production is down in Italy, which produced
1,000
people.4 561 599 92 films in 1998, and Spain, which produced
Globalization has also heightened de- 0 85, while remaining unchanged in the United
South and Latin America Developing
mand for knowledge as an economic resource. East Asia countries Kingdom and Germany.14 France is the ex-
Indigenous people have a rich resource of Source: UNCTAD 1999. ception. Production there increased to 183
traditional knowledge—about plants with films in 1998.15 The share of domestic films
86 HUMAN DEVELOPMENT REPORT 2004

3. viewed between 1984 and 2001 declined dra- TABLE 1 poor to rich countries. In the 1990s the
matically in much of Europe, with the excep- Top 10 countries by share of migrant foreign-born population in more developed
tion of France and Germany, where policies population, 2000 regions increased by 23 million.19 Today, al-
support the domestic film industry. For the (Percent) most 1 in 10 people living in those countries
same period, the share of US films increased was born elsewhere.20
United Arab Emirates 68
across most of the continent (figure 2). Kuwait 49 • Irregular migration has reached unprece-
The international dominance of US films Jordan 39 dented levels: up to 30 million people
is just one aspect of the spread of Western Israel 37
Singapore 34 worldwide do not have legal residency sta-
consumer culture. New satellite communica-
Oman 26 tus in the country where they live.21
tions technologies in the 1980s gave rise to a Switzerland 25
powerful new medium with global reach and Australia 25 • Circular migration. People who decide
to such global media networks as CNN. The Saudi Arabia 24 to migrate today are more likely to return
New Zealand 22
number of television sets per thousand people to their place of birth, or to move on to a
worldwide more than doubled, from 113 in Source: UN 2003a. third country, than to stay in the first
1980 to 229 in 1995. It has grown to 243 since country to which they migrate. With
then.16 Consumption patterns are now global. Politics also influence the flow of people. cheaper communication and travel, mi-
Market research has identified a “global elite”, Repression can push people to leave; so can grants stay in closer touch with their home
a global middle class that follows the same greater openness. Political transitions in the communities.
consumption style and prefers “global brands”. former Soviet Union, Eastern Europe and the • Diaspora network. Having friends and
Most striking are “global teens”, who inhabit Baltics made it possible for many people to family abroad makes migration easier. Di-
a “global space”, a single pop culture world, leave for the first time in decades. But more aspora networks provide shelter, work
soaking up the same videos and music and than the numeric increase, the structure of mi- and assistance with bureaucracy. So mi-
providing a huge market for designer running gration has changed radically. grants coming from the same country tend
shoes, t-shirts and jeans.
• Changing demographics. For Western Eu- to concentrate where others have settled:
rope, Australia and North America, the 92% of Algerian immigrants to Europe
Flows of people
growth in migration in the last decade was live in France, and 81% of Greek immi-
Policies on immigration have become socially di-
almost entirely concentrated in flows from grants in Germany.22 Chinese illegal emi-
visive in many countries. Debates are not just
gration has swelled the diaspora to some
about jobs and competition for social welfare re-
30–50 million people.23
sources but about culture—whether immigrants Figure Fewer domestic films, more US
should be required to adopt the language and 2 films: evolving film attendance, • Remittances. In little more than 10 years
values of their new society. Why are these issues 1984–2001 remittances to developing countries went
more prominent today? What has globalization from $30 billion in 1990 to nearly $80 bil-
Share of US films
got to do with it? lion in 2002.24 Remittances sent from Sal-
Percent
100
Globalization is quantitatively and quali- 81
vadorans abroad amounted to 13.3% of El
1984 77
tatively reshaping international movements of 80 2001
74 Salvador’s GDP in 2000.25
66
people, with more migrants going to high- 60 62
60 53 • Asylum seekers and refugees. About
income countries and wanting to maintain their 47 48
39 9% of the world’s migrants are refugees
cultural identities and ties with their home coun- 40
(16 million people). Europe hosted more
tries (table 1).
20 than 2 million political asylum seekers
People have always moved across borders,
in 2000, four times more than North
but the numbers have grown over the last three 0
America.26
decades. The number of international mi- US France Italy Spain UK Germany
grants—people living outside their country of 0 • Feminization. Women have always mi-
birth—grew from 76 million in 1960 to 154 5 grated as family members, but today more
20
million in 1990 and 175 million in 2000.17 Tech- 18 17 17 16
19 22 women are migrating alone for work
nological advances make travel and communi- 40 34 abroad, leaving their families at home. For
cation easier, faster and cheaper. The price of 45 42 the Philippines, women made up 70% of
60
a plane ticket from Nairobi to London fell from migrant workers abroad in 2000.27
$24,000 in 1960 to $2,000 in 2000.18 The tele- 80
Percent
phone, the Internet and the global media bring 100
the realities of life across the globe into the liv- 97 94
Share of domestic films
ing room, making people aware of disparities in
Source: ATSIA 2003; CSD and ICC 2002; Moody 2000; WIPO
wages and living conditions—and eager to im- Source: Cohen 2004. 2003d; World Bank 2004; Cohen 2004; Kapur and McHale
prove their prospects. 2003; IOM 2003b, 2003c, 2004; UN 2002a, 2002b, 2003a.
GLOBALIZATION AND CULTURAL CHOICE 87

4. exception” for films and audiovisual goods, from global regimes for intellectual property
which would permit them to be treated dif- needs to be explicitly recognized, as does the cul-
ferently from other goods. tural impact of such goods as films and the cul-
• Immigration. Managing the inflow and in- tural identity of immigrants.
tegration of foreign migrants requires re- The aim of multicultural policies is not to
sponding to anti-immigrant groups, who preserve tradition, however, but to protect cul-
argue that the national culture is threat- tural liberty and expand people’s choices—in the
ened, and to migrant groups, who demand ways people live and identify themselves—and
respect for their ways of life. not to penalize them for these choices. Pre-
The extreme positions in these debates often serving tradition can help to keep the options
provoke regressive responses that are nationalis- open, but people should not be bound in an im-
The aim of multicultural tic, xenophobic and conservative: close the coun- mutable box called “a culture”. Unfortunately,
try off from all outside influences and preserve today’s debates about globalization and the loss
policies is to protect
tradition. That defence of national culture comes of cultural identity have often been argued in
cultural liberty and at great costs to development and to human terms of upholding national sovereignty, pre-
choice. This report argues that these extreme serving the ancient heritage of indigenous peo-
expand people’s
positions are not the way to protect local cultures ple and safeguarding national culture in the
choices—in the ways and identities. There need not be a choice between face of growing inflows of foreign people, films,
protecting local identities and adopting open music and other goods. But cultural identities
people live and identify
policies to global flows of migrants, foreign films are heterogeneous and evolving—they are dy-
themselves—and not to and knowledge and capital. The challenge for namic processes in which internal inconsisten-
countries around the world is to design country- cies and conflicts drive change (box 5.1).
penalize them for these
specific policies that widen choices rather than Four principles should inform a strategy
choices narrow them by supporting and protecting na- for multiculturalism in globalization:
tional identities while also keeping borders open. • Defending tradition can hold back human
development.
GLOBALIZATION AND MULTICULTURALISM • Respecting difference and diversity is
essential.
The impact of globalization on cultural liberty • Diversity thrives in a globally interdependent
deserves special attention. Previous Human world when people have multiple and com-
Development Reports have addressed sources plementary identities and belong not only to
of economic exclusion, such as trade barriers that a local community and a country but also to
keep markets closed to poor countries’ exports, humanity at large.
and of political exclusion, such as the weak • Addressing imbalances in economic and po-
voice of developing countries in trade negotia- litical power helps to forestall threats to the
tions. Removing such barriers will not itself cultures of poorer and weaker communities.
eliminate a third type of exclusion: cultural ex-
clusion. That requires new approaches based on DEFENDING TRADITION CAN HOLD BACK
multicultural policies. HUMAN DEVELOPMENT
Global flows of goods, ideas, people and
capital can seem a threat to national culture in The first principle is that tradition should not
many ways. They can lead to the abandonment be confused with freedom of choice. As chap-
of traditional values and practices and the dis- ter 1 points out, “To argue for cultural diver-
mantling of the economic basis on which the sur- sity on the ground that this is what the different
vival of indigenous cultures depends. When groups of people have inherited is clearly not rea-
such global flows lead to cultural exclusion, soning based on cultural liberty”. Furthermore,
multicultural policies are needed to manage tradition can work against cultural freedom.
trade, immigration and investments in ways that “Cultural conservatism can discourage—or
recognize cultural differences and identities. prevent—people from adopting a different
And the exclusion of traditional knowledge lifestyle, indeed even from joining the lifestyle
88 HUMAN DEVELOPMENT REPORT 2004

5. that others, from a different cultural back- BOX 5.1
ground, standardly follow in the society in ques- Culture—paradigm shift in anthropology
tion.” There is much to cherish in traditional For many years, defining cultural and social are increasingly being consulted by people try-
values and practices, and much that is consonant anthropology as the study of the cultural ing to assign to groups the kinds of general-
with universal values of human rights. But there dimension of people would have raised few ized cultural identities that anthropologists
is also much that is challenged by universal objections. “A culture” was understood as now find deeply problematic. Today, politi-
synonymous with what before had been cians, economists and the general public want
ethics, such as inheritance laws that are biased called “a people”. culture defined in precisely the bounded,
against women, or decision-making procedures During the past two decades, however, reified, essentialized and timeless fashion re-
that are not participatory and democratic. the concept of “culture”, and by extension cently discarded by anthropologists.
Taking the extreme position of preserving the idea of “cultural difference” and the Culture and cultural diversity have be-
underlying assumptions of homogeneity, come political and juridical realities, as stated
tradition at all cost can hold back human de-
holism and integrity, have been re-evaluated. in the first Article of the UNESCO Uni-
velopment. Some indigenous people fear that Cultural difference is no longer viewed as a versal Declaration on Cultural Diversity
their ancient cultural practices are endangered stable, exotic otherness. Self-other relations (2001): “cultural diversity is as necessary
by the inflow of foreign investment in extractive are increasingly considered to be matters for humankind as biodiversity is for nature.
industries or that sharing traditional knowledge of power and rhetoric rather than essence. In this sense, it is the common heritage of
And cultures are increasingly conceived of humanity and should be recognized and af-
necessarily leads to its misuse. Some have reacted as reflecting processes of change and inter- firmed for the benefit of present and future
to violations of their cultural identity by shut- nal contradictions and conflicts. generations”. Many people have grasped at
ting out all new ideas and change, trying to pre- But just as anthropologists were losing least part of the anthropological message:
serve tradition at all cost. Such reactions reduce faith in the concept of coherent, stable and culture is there, it is learned, it permeates
bounded cultural “wholes”, the concept was everyday life, it is important and it is far
not only cultural choices but also social and
being embraced by a wide range of culture more responsible for differences among
economic choices for indigenous people. Sim- builders worldwide. Anthropological works human groups than are genes.
ilarly, anti-immigrant groups often defend na- Source: Preis 2004 citing Brumann 1999; Clifford 1988; Rosaldo 1989; Olwig, Fog and Hastrup 1997; UNESCO 2002.
tional identities in the name of tradition. This
narrows their choices as well by shutting coun-
tries off from the socio-economic benefits of im- it is not diversity that inevitably leads to conflict
migration, which brings new skills and workers but the suppression of cultural identity and so-
to an economy. And defending national cul- cial, political and economic exclusion on the
tural industries through protectionism reduces basis of culture that can spark violence and ten-
the choices for consumers. sions. People may be fearful of diversity and its
In no society are lifestyles or values static. An- consequences, but it is opposition to diversity—
thropologists have discarded concerns with reify- as in the positions of anti-immigrant groups—that
ing cultures and now see importance in how can polarize societies and that fuels social tensions.
cultures change, continuously influenced by in-
ternal conflicts and contradictions (see box 5.1). DEVELOPING MULTIPLE AND
COMPLEMENTARY IDENTITIES — LIVING
RESPECTING DIVERSITY LOCALLY AND GLOBALLY
The second principle is that diversity is not an The third principle is that globalization can ex-
end in itself but, as chapter 1 points out, it pro- pand cultural freedoms only if all people develop
motes cultural liberty and enriches people’s multiple and complementary identities as citi-
lives. It is an outcome of the freedoms people zens of the world as well as citizens of a state and
have and the choices they make. It also implies members of a cultural group. Just as a culturally
an opportunity to assess different options in diverse state can build unity on multiple and
making these choices. If local cultures disappear complementary identities (chapter 3), a culturally
and countries become homogeneous, the scope diverse world needs to do the same. As global-
for choice is reduced. ization proceeds, this means not only recognizing
Much of the fear of a loss of national identity local and national identities but also strengthen-
and culture comes from the belief that cultural di- ing commitments to being citizens of the world.
versity inevitably leads to conflict or to failed de- Today’s intensified global interactions can
velopment. As chapter 2 explains, this is a myth: function well only if governed by bonds of
GLOBALIZATION AND CULTURAL CHOICE 89

6. shared values, communication and commit- notions of identity can lead to morbid mistrust
ment. Cooperation among people and nations of people and things foreign—to wanting to bar
with different interests is more likely when all immigrants, fearing that they would not be loyal
are bound and motivated by shared values and to their adopted country or its values, or want-
commitments. Global culture is not about the ing to block flows of cultural goods and ideas,
English language or brand name sneakers—it is fearing that homogenizing forces would destroy
about universal ethics based on universal human their national arts and heritage. But identities are
rights and respect for the freedom, equality and seldom singular. Multiple and complementary
dignity of all individuals (box 5.2). identities are a reality in many countries—and
Today’s interactions also require respect for people have a sense of belonging to the coun-
difference—respect for the cultural heritage of try as well as to a group or groups within it.
Multiple and the thousands of cultural groups in the world.
Some people believe that there are contradictions ADDRESSING ASYMMETRIC POWER
complementary identities
between the values of some cultural traditions
are a reality in many and advances in development and democracy. The fourth principle is that asymmetries in
As chapter 2 shows, there is no objective evi- flows of ideas and goods need to be addressed,
countries
dence for claiming that some cultures are “in- so that some cultures do not dominate others
ferior” or “superior” for human progress and the because of their economic power. The unequal
expansion of human freedoms. economic and political powers of countries,
States develop national identities not only to industries and corporations cause some cul-
unify the population but also to project an iden- tures to spread, others to wither. Hollywood’s
tity different from that of others. But unchanging powerful film industry, with access to enor-
BOX 5.2
Sources of global ethics
All cultures share a commonality of basic values Convention of Human Rights and the African • Democracy. Democracy serves multiple
that are the foundation of global ethics. That in- Charter on Human and People’s Rights, have ends: providing political autonomy, safe-
dividuals can have multiple and complemen- taken similar initiatives. More recently, the UN’s guarding fundamental rights and creating
tary identities suggests that they can find these Millennium Declaration, adopted by the full conditions for the full participation of citi-
commonalities of values. membership of the General Assembly in 2000, zens in economic development. At the global
Global ethics are not the imposition of recommitted itself to human rights, fundamen- level democratic standards are essential for
“Western” values on the rest of the world. To tal freedoms and respect for equal rights to all ensuring participation and giving voice to
think so would be both artificially restrictive of without distinction. poor countries, marginalized communities
the scope of global ethics and an insult to other There are five core elements of global ethics. and discriminated against minorities.
cultures, religions and communities. The prin- • Equity. Recognizing the equality of all in- • Protection of minorities. Discrimination
cipal source of global ethics is the idea of human dividuals regardless of class, race, gender, against minorities occurs at several levels:
vulnerability and the desire to alleviate the suf- community or generation is the ethos of non-recognition, denial of political rights,
fering of every individual to the extent possible. universal values. Equity also envelops the socio-economic exclusion and violence.
Another source is the belief in the basic moral need to preserve the environment and nat- Global ethics cannot be comprehensive un-
equality of all human beings. The injunction to ural resources that can be used by future less minorities receive recognition and equal
treat others as you would want to be treated generations. rights within a larger national and global
finds explicit mention in Buddhism, Christian- • Human rights and responsibilities. Human community. The promotion of tolerance is
ity, Confucianism, Hinduism, Islam, Judaism, rights are an indispensable standard of in- central to the process.
Taoism and Zoroastrianism, and it is implicit in ternational conduct. The basic concern is to • Peaceful conflict resolution and fair ne-
the practices of other faiths. protect the integrity of all individuals from gotiation. Justice and fairness cannot be
It is on the basis of these common teach- threats to freedom and equality. The focus achieved by imposing pre-conceived moral
ings across all cultures that states have come to- on individual rights acknowledges their ex- principles. Resolution of disagreements must
gether to endorse the Universal Declaration of pression of equity between individuals, be sought through negotiations. All parties
Human Rights, supported by the International which outweighs any claims made on behalf deserve a say. Global ethics does not mean
Covenants on Civil and Political Rights and on of group and collective values. But with a single path towards peace or development
Economic and Social Rights. Regional treaties, rights come duties: bonds without options or modernization. It is a framework within
such as the European Convention for the are oppressive; options without bonds are which societies can find peaceful solutions
Protection of Human Rights, the American anarchy. to problems.
Source: World Commission on Culture and Development 1995; UN 2000a.
90 HUMAN DEVELOPMENT REPORT 2004

7. SPECIAL CONTRIBUTION
Indigenous peoples and development
Development divorced from its human or cul- have much to contribute to society, and they of indigenous communities as groups, thus sig-
tural context is growth without a soul. Eco- bring to both national and international debates nificantly undermining meaningful ways of par-
nomic development in its full flowering is valuable advice about the great issues facing hu- ticipatory development.
part of a people’s culture. manity in this new millennium. Indigenous peoples have dynamic living cul-
—World Commission on Culture In May 2003 the Permanent Forum on In- tures and seek their place in the modern world.
and Development 1995 digenous Issues stressed in its Second Session the They are not against development, but for too
importance of recognizing cultural diversity in long they have been victims of development and
Indigenous peoples are proponents and repre- development processes and the need for all de- now demand to be participants in—and to ben-
sentatives of humanity’s cultural diversity. velopment to be sustainable. Recommendation efit from—a development that is sustainable.
Historically, however, indigenous peoples have 8 of the Second Session calls for “instituting a
been marginalized by dominant societies and have legal framework that makes cultural, environ-
often faced assimilation and cultural genocide. mental and social impact assessment studies
In the multicultural societies growing up mandatory” (E/2003/43). The forum also ex- Ole Henrik Magga
around them, indigenous peoples seek an end to pressed concern over development practices Chairman of the UN Permanent
such marginalization and fringe dwelling. They that do not take into account the characteristics Forum on Indigenous Issues
mous resources, can squeeze the Mexican film on respect for cultural traditions and the shar-
industry and other small competitors out of ing of the economic benefits of resource use.
existence. Powerful corporations can outbid in-
digenous people in using land rich in resources. WHY DO SOME INDIGENOUS PEOPLE FEEL
Powerful countries can outnegotiate weak coun- THREATENED ?
tries in recognition of traditional knowledge in
World Trade Organization (WTO) agreements. Central to ensuring the inclusion of indigenous
Powerful and exploitative employers can vic- people in a global world are how national gov-
timize defenceless migrants. ernments and international institutions deal
with investments in indigenous territories and
FLOWS OF INVESTMENT AND KNOWLEDGE— protect traditional knowledge. The historical ter-
INCLUDING INDIGENOUS PEOPLE IN A ritories of indigenous people are often rich in
GLOBALLY INTEGRATED WORLD minerals and oil and gas deposits (map 5.1,
table 5.1 and feature 5.1). That can set up the
Indigenous people see globalization as a threat potential for conflict between promoting na-
to their cultural identities, their control over tional economic growth through extractive in-
territory and their centuries-old traditions of dustries and protecting the cultural identity
knowledge and artistic expression (see feature and economic livelihood of indigenous people.
5.1). They fear that the cultural significance of The traditional knowledge, innovations and
their territories and knowledge will go unrec- practices of indigenous people, developed over
ognized—or that they will receive inadequate many generations and collectively owned by
compensation for these cultural assets. In these the community, can have practical uses in agri-
situations globalization is often blamed. culture, forestry and health. Conflict can arise
One reaction is to opt out of the global between recognizing collective ownership and
economy and to oppose the flows of goods and following the modern intellectual property
ideas. Another is to preserve tradition for its own regime, which focuses on individual rights.
sake, without accounting for individual choice Extractive industries. The cultural identity
or democratic decision-making. But there are al- and socio-economic equity of indigenous peo-
ternatives. Preserving cultural identity need not ple can be threatened in several ways by the ac-
require staying out of the global economy. There tivities of extractive industries. First, there is
are ways of ensuring the cultural and socio- inadequate recognition of the cultural signifi-
economic inclusion of indigenous people based cance of the land and territories that indigenous
GLOBALIZATION AND CULTURAL CHOICE 91

8. TABLE 5.1 Map Much extractive and infrastructural Lihirians and sharply reduced their ability to sub-
Indigenous population in 5.1 activity in developing countries is
Latin America sist by hunting game.
in areas where indigenous people
Percent live Third, indigenous groups complain about
Share of total Latin America, 2003 unfair exclusion from decision-making. And
Country population BELIZE
HONDURAS
when consultations with local communities do
Bolivia 71.0 MEXICO NICARAGUA
occur, they often leave much to be desired. Keep-
Guatemala 66.0 GUATEMALA
GUYANA ing such concerns in mind, the World Bank used
Peru 47.0 EL SALVADOR VENEZUELA
SURINAME
Ecuador 38.0 COSTA RICA COLOMBIA FRENCH GUIANA
a new approach to support the Chad–Cameroon
PANAMA
Honduras 15.0 Pipeline project.2 By law, net incomes were to be
Mexico 14.0 ECUADOR
Panama 10.0 deposited in an offshore account to ensure an-
Chile 8.0 nual publication of audits and reduce corruption.
El Salvador 7.0 BRAZIL
Nicaragua 5.0 PERU Further, 10% of revenues were earmarked for a
Colombia 1.8 BOLIVIA Future Generations Fund. Civil society repre-
Paraguay 1.5
Argentina 1.0 PA
RA
sentatives and a member of the opposition were
GU
Venezuela 0.9
CHILE
AY
to be part of a monitoring board. The project had
Costa Rica 0.8
Brazil 0.4 PACIFIC OCEAN to comply with the Bank’s safeguard policies on
Uruguay 0.4 ARGENTINA URUGUAY environmental assessments and resettlement.
Source: De Ferranti and others 2003. Note: Black dots represent And two new national parks were planned to
areas with high prevalence of
indigenous people and with SOUTH compensate for the loss of a small forest area. The
intense extractive and infra- ATLANTIC
structural activities (mining, oil OCEAN
project highlights the innovative steps interna-
exploration, dam and road
construction, industrial agriculture, tional institutions are taking to build capacity and
fisheries, electricity plants,
biopiracy, logging). transparency and ensure targeted benefit sharing.
South-East Asia and Pacific, 2003 But some indigenous groups believe that this
has been inadequate. Fewer than 5% of the
NORTHERN
A SE A
PHILIPPINES
MARIANA
ISLANDS
Bagyéli people affected by the pipeline were em-
HIN
ployed on the project. They received little com-
HC
UT
SO
THAILAND
BRUNEI
pensation and few of the promised health care
PACIFIC OCEAN
MALAYSIA facilities.3 In countries with very weak institutional
PAPUA
NEW structures, project partners face major challenges
GUINEA
in effectively implementing well conceived pro-
INDONESIA
INDIAN OCEAN
jects. This does not mean that investments need
TIMOR-LESTE
to be stopped; rather, even greater efforts are
Source: Tebtebba and International Forum on Globalization 2003.
needed.
Fourth, indigenous people feel cheated when
people inhabit. Indigenous people have strong their physical resources are misappropriated
spiritual connections to their land, which is without adequate compensation. There was very
why some of them oppose any investment in limited involvement of local people on the Yana-
extractive industries within their territories. For cocha gold mine in the Cajamarca region in
instance, some groups of San Bushmen in Peru (a joint venture between Peruvian and US
Botswana oppose the exploration licences that mining companies and the International Finance
the government has granted to Kalahari Dia- Corporation). Some of the tax revenues were to
monds Ltd. go to the indigenous inhabitants, but they re-
Second, there is plausible concern about ceived less than they were promised.4 Ecuador
the impact of extractive industries on local liveli- is home to one of the largest confirmed oil re-
hoods. When mineral extraction leads to the serves in Latin America. Companies pay about
widespread displacement of communities and $30 million in taxes for a special Amazon de-
loss of their farmlands, it affects both their sense velopment fund, but little of that money reaches
of cultural identity and their source of sustain- the indigenous communities.5
able livelihood. The Lihir Gold Mine in Papua These issues highlight the conflict between
New Guinea has destroyed sacred sites of the national sovereignty over resources and the
92 HUMAN DEVELOPMENT REPORT 2004

9. special rights of indigenous people to their domain principle ignores obligations to the
territories and the mineral resources they contain. community.
For instance, Ecuador’s Constitution does not The Convention on Biological Diversity rec-
give native Indians any rights to the oil and gas ognizes traditional knowledge, in contrast to
within their territories. While it is not necessary the global intellectual property rights regime ad-
that such rights be constitutionally guaranteed, ministered under the World Intellectual Prop-
it is necessary that indigenous people have a say erty Organization (WIPO) and the agreement
in the use of resources within their territories. on Trade-Related Aspects of Intellectual Prop-
Traditional knowledge. The traditional erty Rights (TRIPS). Article 8(j) stipulates that
knowledge of indigenous groups has attributes contracting parties must preserve and maintain
of communal ownership and sometimes has spir- the knowledge and innovations of indigenous
itual significance. Intellectual property regimes and local communities. It also seeks the wider The solution is not to block
fail to recognize either the community ownership application of traditional knowledge “with the
flows of investment or
or spiritual significance of traditional knowl- approval and involvement of the holders of
edge. The laws protect the work of individual, such knowledge” and encourages “equitable knowledge or to preserve
identifiable authors or inventors and spell out sharing of the benefits”. Article 10(c) of the
tradition for its own sake.
how others can use their work. The Quechua In- convention encourages the “customary use of bi-
dians in Peru oppose the commercial exploita- ological resources in accord with traditional Human development aims
tion of their traditional knowledge but can do cultural practices”. The issue, then, is to find
at expanding an
little about it. The Maori in New Zealand believe ways to reconcile the provisions of different in-
that even when their knowledge is publicly dis- ternational intellectual property regimes in order individual’s choices
closed, there is no automatic right to use it—that to protect traditional knowledge for the bene-
right must be determined collectively. fit of the indigenous community and promote
There is also a danger of wrongly awarding its appropriate use within wider society.
intellectual property rights, so that communities
that have produced, preserved or developed POLICY OPTIONS AND CHALLENGES FOR
traditional knowledge over several generations PROTECTING RIGHTS AND SHARING BENEFITS
are not compensated for its use. To qualify for
patent protection an invention must fulfil three The solution is not to block flows of investment
strict criteria: it must be novel, not obvious and or knowledge or to preserve tradition for its own
industrially useful. Since traditional knowledge sake. Human development aims at expanding an
does not always meet these criteria, the inter- individual’s choices, through growth that favours
national intellectual property regime does not the poor and through equitable socio-economic
explicitly protect it. Researchers can appropri- opportunities within a democratic framework
ate traditional knowledge and apply for a patent, that protects liberties. Addressing the concerns
claiming to have invented a new product. of indigenous people will require global, na-
Copyright protection can also be wrongly tional and corporate policies that advance human
awarded for the appropriation. development goals (box 5.3).
Misappropriation of traditional knowledge International institutions are already look-
need not be deliberate. Sometimes it arises from ing for ways to mitigate some of the problems.
mistakenly treating traditional knowledge as In 2001 the World Bank commissioned an ex-
part of the public domain, where intellectual tractive industries review to determine how
property protection does not apply. Traditional such projects can assist in poverty reduction
knowledge, because it is known publicly within and sustainable development. Based on dis-
the community (and sometimes outside it), is cussions with governments, non-governmental
more prone to appropriation without compen- organizations, indigenous people’s organiza-
sation to the community that developed it than tions, industry, labour unions and academia,
are other types of intellectual property. The the 2004 report recommends pro-poor public
Sami Council of Scandinavia argues that even and corporate governance, effective social and
if its knowledge is publicly known, the public environmental policies and respect for human
GLOBALIZATION AND CULTURAL CHOICE 93

10. BOX 5.3
Private companies and indigenous people can work together for development
Is it possible for private companies to work co- would receive training in operating machinery, Red Dog Mine, United States
operatively with indigenous people and to gain and services would be contracted to the local In the 1970s the Inupiat people of Northwest
in the process? Yes. Consider these examples. communities. Hamersley would contribute more Alaska successfully blocked Cominco Inc.’s
than A$60 million for these purposes. interest in exploiting zinc-lead deposits at the
Pilbara region, Australia Red Dog site. After several years of negotia-
Hamersley Iron Pty Ltd has been exporting ore Raglan project, Canada tions the Northwest Alaska Native Association
from the natural resource–rich Pilbara region After a 1975 agreement to settle land ownership (NANA) and Cominco signed an agreement in
since the mid-1960s. While Aboriginal pop- issues in northern Quebec between indigenous 1982 to allow mining to go forward. Cominco
ulations remained concentrated in welfare- groups and the provincial and federal govern- agreed to compensate the Inupiat through
dependent towns, the company’s need for skilled ments, the Inuit received financial compensation royalties, to include NANA representatives
labour led to a massive influx into the region of to set up the Makivik Corporation as a heritage in an advisory committee, to employ indige-
non-indigenous people. The Aboriginal groups fund. In 1993 Makivik signed a Memorandum nous people and to protect the environment.
began to oppose the development of newer of Understanding with Falconbridge Ltd (later In lieu of taxes Red Dog would pay $70 mil-
mines and demanded discussions on the com- the Raglan Agreement) to guarantee benefits lion into the Northwest Arctic Borough over
pany’s activities on traditional lands. In 1992 from planned mining projects in the region, in- 24 years. By 1998 Cominco had invested $8.8
Hamersley established the Aboriginal Training cluding priority employment and contracts for million in technical training almost entirely
and Liaison Unit, to provide job training, increase the Inuit, profit sharing and environmental for NANA shareholders employed in the pro-
business development in the area and improve monitoring. Falconbridge will pay an estimated ject. NANA has also monitored the impact
infrastructure and living conditions while pre- C$70 million to an Inuit trust fund over 18 on subsistence activities and forced efforts to
serving the aboriginal heritage and culture. By years. Archaeological sites were also identified reduce effluent flows into streams. Cominco
1997 the Gumala Aboriginal Corporation had and marked as off limits to mining, and the has maintained a flexible work schedule that
signed joint venture agreements with Hamers- rights of Inuit employees to hunt outside the allows Inupiat employees to continue their
ley to develop newer mines. Aboriginal men Raglan site were assured. traditional way of life.
Source: International Council on Metals and the Environment 1999.
rights. WIPO’s General Assembly established have misappropriated traditional knowledge
an Intergovernmental Committee on Intellectual should be revoked.
Property and Genetic Resources, Traditional Recognizing rights. Many states have laws
Knowledge and Folklore in October 2000. It is that explicitly recognize indigenous people’s
reviewing mechanisms for protecting traditional rights over their resources. In a 2002 report
knowledge while increasing the participation the UK Commission on Intellectual Property
of indigenous people. Rights argued that national legislation is needed
States and international institutions need to address specific circumstances. The Philip-
to collaborate in continuing to adjust global pines has laws requiring informed consent for
rules and national laws in ways that more access to ancestral lands and indigenous knowl-
successfully take into account the concerns of edge and for equitable sharing of benefits.
indigenous people, giving them a genuine stake Guatemalan law promotes the wider use of tra-
in the flows of investments, ideas and knowledge. ditional knowledge and cultural expressions
Three measures are essential: by placing them under state protection.
• Explicitly recognizing indigenous people’s Bangladesh, the Philippines and the African
rights over their physical and intellectual Union recognize the customary practices of
property. communities and the community-based rights
• Requiring consultations with indigenous to biological resources and associated tradi-
communities and their participation for the tional knowledge.
use of any resource, thus ensuring informed Requiring participation and consultation.
consent. Including the local community in decision-
• Empowering communities by developing making is not only democratic—it also ensures
strategies to share benefits. against future disruption of projects. Having
Loans to companies or countries for projects learned from the Yanacocha mine, the Antam-
that wrongly appropriate property must be ina zinc and copper mine in Peru involved
withdrawn, and patents granted to others who indigenous communities in decision-making at
94 HUMAN DEVELOPMENT REPORT 2004

11. the start of operations in 2001. But consultations Traditional and Genetic Resources for use by
have to be meaningful. This requires carefully patent examiners. The Consultative Group on In-
identifying the affected groups and providing full ternational Agricultural Research has linked its
information about the likely costs and benefits information to the portal. And India has con-
of a project. tributed its Health Heritage Test Database.
Consultations can also prevent the false ap- Sharing benefits. Opportunities for bene-
propriation of genetic resources and traditional fit sharing in extractive industries are exten-
knowledge. Countries now demand disclosure sive, including education, training, preferential
of the origin of plants and other genetic mate- employment for local people, financial com-
rial before granting patents. The Andean Com- pensation, business opportunities and environ-
munities, Costa Rica and India, among others, mental commitments. In Papua New Guinea,
include this provision in laws and regulations. where indigenous communities own 97% of the Documenting traditional
Documenting traditional knowledge is often land, small mining projects have assisted in
knowledge is often
essential for protecting it, as is being done by the poverty alleviation. At the Bulolo mine a well
Traditional Knowledge Digital Library in India planned closure allowed the mining company to essential for protecting it
and a similar initiative in China. Lao PDR has use its infrastructure to develop a timber
a Traditional Medicines Resource Centre. In plantation—which remains financially viable
Africa, where much traditional knowledge is 35 years after the mine was closed.6 Companies
oral, documentation would diminish possibili- in other countries have also had success in-
ties for uncompensated exploitation of knowl- volving local communities in decision-making
edge. But in Latin America some indigenous and profit sharing.
people worry that documentation, by making While multilateral negotiations on protect-
their knowledge more accessible, would facili- ing traditional knowledge within the intellectual
tate exploitation. property rights regime continue, countries are
Documentation does not prejudice rights. It discovering ways of using existing systems to do
preserves knowledge in written form and prevents so (box 5.4). Industrial designs protect carpets
others from claiming it as their own. WIPO has and headdresses in Kazakhstan. Geographical
an Online Portal of Databases and Registries of indications protect liquors and teas in Venezuela
BOX 5.4
Using intellectual property rights to protect traditional knowledge
Respecting traditional knowledge does not mean The Copyright Act protects tradition-based cre- knowledge the South African Council for Scien-
keeping it from the world. It means using it in ations like woodcarvings, songs and sculptures. tific and Industrial Research (CSIR) in 1995
ways that benefit the communities from which In 1999 the Snuneymuxw First Nation used the patented the Hoodia cactus’s appetite-suppressing
it is drawn. Trademarks Act to protect 10 religious petro- element (P57). By 1998 revenues from the li-
Australia’s intellectual property rights laws do glyphs (ancient rock paintings) from unautho- censing fee for developing and marketing P57 as
not cover traditional knowledge, but certifica- rized reproduction and to stop the sale of goods a slimming drug had risen to $32 million (Com-
tion trademarks are used to identify and authen- bearing these images. mission on Intellectual Property Rights 2002).
ticate products or services provided by indigenous Other countries have explicitly recognized When the San alleged biopiracy and threatened
people. In the 1995 Milpurrurru case—Aboriginal traditional knowledge and customary legal sys- legal action in 2002, the CSIR agreed to share
designs were reproduced on carpets without prior tems. Greenland retains its Inuit legal tradition future royalties with the San.
consent—an Australian court judged that “cultural within its Home Rule Government. Over the past Recognition of traditional culture can occur
harm” had been caused due to trademark viola- 150 years written Inuit literature has documented at the regional level as well. Article 136(g) of De-
tion and awarded compensation of A$70,000 cultural heritage. Cultural heritage is treated as cision 486 of the Commission of the Andean
(WIPO 2003c). In the 1998 Bulun Bulun case a dynamic and not restricted to traditional as- Community states that signs may not be regis-
court judgement found that an indigenous per- pects alone. Both traditional and modern cultural tered as marks if they consist of the names of in-
son owed fiduciary obligations to his community expressions are respected and enjoy equal pro- digenous, Afro-American or local communities.
and could not exploit indigenous art contrary to tection under law. The Colombian government used Article 136(g)
the community’s customary law. A more celebrated case involves the San to reject an application for registration of the term
In Canada trademarks are used to protect Bushmen of southern Africa. An anthropologist “Tairona”, citing it as an invaluable heritage of
traditional symbols, including food products, noticed in 1937 that the San ate the Hoodia cac- the country—the Taironas inhabited Colom-
clothing and tourist services run by First Nations. tus to stave off hunger and thirst. Based on this bian territory in the pre-Hispanic period.
Source: Commission on Intellectual Property Rights 2002; WIPO 2003c.
GLOBALIZATION AND CULTURAL CHOICE 95

12. and Viet Nam. Copyrights and trademarks are states, by companies, by international institutions
used for traditional art in Australia and Canada. and by indigenous people.
In many cases these measures have resulted in
monetary benefits for the community as well. FLOWS OF CULTURAL GOODS—WIDENING
Discussions at WIPO are focusing on how CHOICES THROUGH CREATIVITY AND DIVERSITY
to complement intellectual property provisions
with unique national approaches. One During the 1994 countdown to the Uruguay
proposal—the compensatory liability approach— Round of multilateral trade negotiations, a group
envisages rights for both the patent owner and of French movie producers, actors and directors
the owner of traditional knowledge. While the was able to insert a “cultural exception” clause
patent owner would have to seek a compulsory in trade rules, excluding cinema and other au-
Globalization can bring licence to use the traditional knowledge resource, diovisual goods from their provisions. The clause
the owner would also have the right to com- acknowledges the special nature of cultural
recognition to indigenous
mercialize the patented invention after paying roy- goods as traded commodities. The Uruguay
people who have alties to the patent owner. This mechanism avoids Round text provided a precedent for other trade
restricting scientific progress and makes benefit agreements to allow countries to exempt cultural
developed their resources
sharing economically significant. goods from trade agreements and adopt policies
over the centuries By promoting flows of investments and to protect such industries at home. Some ex-
knowledge, globalization can bring recognition ceptions for trade in cultural goods were writ-
to indigenous people who have developed their ten into the North American Free Trade
resources over the centuries. But national and Agreement (NAFTA) in 1994. In the acrimo-
international rules on global trade and invest- nious debates over the Multilateral Agreement
ment must also account for the cultural on Investments in the OECD in 1998 the cul-
sensitivities and customary property rights of in- tural exception was one of the most bitterly
digenous people. Respecting cultural identity contested issues, propelling the collapse of ne-
and promoting socio-economic equity through gotiations (box 5.5).
participation and benefit sharing are possible as At the preparatory meetings in Cancun for
long as decisions are made democratically—by the Doha Round in 2003 negotiations reportedly
foundered over the Singapore Issues—trade fa-
BOX 5.5 cilitation, transparency in government pro-
The debate on cultural goods and the curement, trade and investment, and trade and
Multilateral Agreement on Investments fiasco competition.7 The United States had asked for
After the Uruguay Round of trade negoti- countries inserted exceptions and reserva- a freeze on the extension of the cultural excep-
ations ended in 1994, some countries wanted tions that weakened the initiative. Con- tion, to avoid bringing Internet-related audio-
to set up a mechanism to liberalize, regulate cerned about the effect that MAI could visual activities into the negotiations. The Free
and enforce global investment flows. This have on cultural industries and fearing loss Trade Area of the Americas ministerial meeting
set the stage in 1998 for the Multilateral of leeway to subsidize or protect national in-
Agreement on Investments (MAI). The ob- dustries, France introduced clauses for cul-
in Miami in November 2003 faced similar chal-
jective was to create a single multilateral tural industries. Motivated by a number of lenges for cultural goods, and no clear agreement
regulatory framework to replace some 1,600 objections to the negotiations, including was reached.
bilateral investment treaties. Among other the treatment of cultural goods like any So, whether to treat cultural goods like any
provisions the MAI aimed at introducing the other merchandise, non-governmental
other commercial good or to make them an ex-
“national treatment” principle of non- groups in Australia, Canada, India, New
discrimination to investment rules and for- Zealand, the United Kingdom and the ception has become a hotly contested issue in
eign investors. Country of origin would United States joined the French govern- international trade negotiations. Positions remain
have ceased to be a factor when applying ment’s campaign against the agreement. polarized. On one side are those who consider
rules on investment and trade in services in The initiative collapsed, demonstrating how cultural products as commercial as apples or cars
order to stop discrimination against for- contentious these issues are and compli-
eign investment and facilitate its flows. cating future talks on trade in services and and therefore subject to all the rules of inter-
As the MAI was being negotiated investment that affect countries’ cultural national trade. On the other side are those who
within the OECD, though, a number of diversity. view cultural products as assets conveying val-
ues, ideas and meaning and therefore deserving
Source: UNESCO 2000b, 2000c; Public Citizen 2004.
of special treatment.
96 HUMAN DEVELOPMENT REPORT 2004