In January 1998 the World Bank approved a US $50 million loan designed specifically to help people of Indigenous and Afro-Ecuadorian origin. Cofinanced by the International Fund for Agricultural Development, this initiative focuses on more than 800,000 Indigenous and Afro-Ecuadorians belonging to 15 ethnic groups that comprise 30 percent of the population of Ecuador. Living primarily in rural areas, they are among Ecuadorıs poorest people.

The Indigenous and Afro-Ecuadorian Peoples Development Project aims to improve the quality of life in Indigenous and Afro-Ecuadorian communities by providing more secure land titles and by financing community-based sub-projects. A sub-project could include, for example, a small community-based irrigation system that is identified and managed by people in the community and that complies with minimum technical, social, economic, and environmental eligibility criteria. Working in accordance with existing capacities and cultural values, the initiative is designed to incorporate the rich cultural heritage of the indigenous population in development projects.

This highly participatory project operates in a decentralized fashion and has established partnerships with 160 local membership organizations working in 2,300 Indigenous and Afro-Ecuadorian communities.