Indigenous Economies Show a Sustainable Path for Rural Latin America

Rocío Medina Bolívar, IFAD Regional Director for Latin America and the Caribbean, said Indigenous Peoples demonstrate how economic well-being can grow alongside social responsibility and environmental care.

Indigenous Peoples from across Latin America and the Caribbean have brought a clear message to a regional gathering in Mexico: sustainable rural development becomes stronger when ancestral knowledge, territorial rights and community-led economies are treated as living solutions rather than traditions from the past. The Latin America and the Caribbean Regional Consultation of the Indigenous Peoples' Forum of the International Fund for Agricultural Development (IFAD) gathered 50 participants representing 35 Indigenous Peoples from 15 countries in Teotihuacán on 31 August and 1 September.

The meeting was organized by the Abya Yala Indigenous Forum and the Indigenous Tourism Network of Mexico, with support from IFAD and participation from the Government of Mexico and UN Mexico. Jesús Amadeo Martínez, General Coordinator of the Abya Yala Indigenous Forum, described Indigenous Peoples as essential partners in sustainable rural development because their economies are rooted in solidarity, collective management, respect for ecosystems and a close relationship with their territories.

Rural prosperity shaped by knowledge and community

The consultation focused on 'Indigenous Peoples' Self-Determined Rural Economies: Knowledge, Territories and Collective Well-Being,' a theme that reflects how Indigenous communities define development through their own priorities, cultures and relationships with nature. Their livelihoods include small-scale farming, fishing, pastoralism, forest management, handicrafts, Indigenous tourism and biodiversity conservation, all of which can create income while protecting the natural systems that sustain community life.

Rocío Medina Bolívar, IFAD Regional Director for Latin America and the Caribbean, said Indigenous Peoples demonstrate how economic well-being can grow alongside social responsibility and environmental care. Their knowledge of sustainable production, resource management and ecological balance offers valuable lessons at a time when rural communities face climate pressures, biodiversity loss and growing demands on land and water.

Strong ideas held back by practical barriers

Indigenous rural enterprises often struggle to reach larger markets or earn a fair return from their products because access to finance, infrastructure, technology and reliable connectivity remains limited. High transportation and certification costs add further pressure, while weak participation in value chains means that communities may produce valuable goods and services without receiving an equitable share of the final income.

Roberto de León Huerta, General Director for Global Affairs at Mexico's Ministry of Foreign Affairs, highlighted Indigenous Peoples as agents of transformation within food systems and guardians of nature. He pointed to the value of traditional knowledge, community organization and Indigenous production systems, while reaffirming the ministry's willingness to support dialogue and joint action.

Investment built around Indigenous rights and priorities

IFAD has worked with Indigenous Peoples since its establishment in 1977, supporting rural development that respects culture, identity, knowledge, natural resources and collective rights. By the end of 2025, about 43 percent of IFAD's portfolio supported initiatives serving Indigenous rural communities, covering 91 projects in 45 countries. Its Indigenous Peoples Assistance Facility, created in 2007, has supported another 212 projects in more than 45 countries and mobilized close to US$15 million through partnerships with donors and foundations.

The recommendations developed in Teotihuacán will feed into the eighth global meeting of the Indigenous Peoples' Forum at IFAD, scheduled for early 2027 in Rome alongside the Fund's 50th Governing Council session. Participants are seeking financing designed for Indigenous realities, stronger local economies, fairer access to markets and full recognition of Indigenous rights, placing communities themselves at the centre of decisions affecting their territories and futures.