Is There Such a Thing as Development with Identity?

Decentralization is often presented as a promise: bring decisions closer to people, and development outcomes will improve. In Latin America and the Caribbean, this idea has shaped public policy debates for decades, around how resources are allocated and who gets a voice in public investment decisions. However, experience shows that decentralization is neither a silver bullet nor a neutral process. While it can strengthen accountability, ownership and sustainability, it can also reinforce existing local dynamics and disparities, sometimes in ways that limit the benefits of development for certain communities.

Many years ago, when I was starting my career in international development, I studied the allocation of social funds in Ecuador. Analyzing project-level data over a three-year period, we found that poorer localities were more likely to invest these resources in projects that directly benefited low-income households, such as latrines or septic tanks. However, we also found that among localities with similar levels of poverty, those with higher levels of inequality were less likely to prioritize such projects. 

This evidence suggested that local decision-making processes may not always reflect the priorities of poorer communities. It also led me to ask a broader question: under what conditions can local decision-making genuinely reflect the priorities and aspirations of communities?

Indigenous Peoples and Development with Identity at the IDB

These early research experiences influenced how I engage with the concept of development with identity, a cornerstone of the Inter-American Development Bank’s (IDB) Operational Policy on Indigenous Peoples approved in 2006. In many ways, the concept seeks to address the very question that emerged from my earlier work: how can development processes be shaped by the priorities, institutions, and aspirations of the communities themselves?

The Policy has two main objectives: to support Indigenous Peoples’ development in ways that reflect their identities and worldviews, and to help ensure that Bank-funded projects are designed and implemented in a manner that takes into account their interests and participation. In essence, development with identity recognizes Indigenous Peoples as active agents in defining their own development priorities and pathways.

Every time that I have approached experiences in community-driven development, including those grounded in development with identity, I have been curious to understand the underlying dynamics of decision-making and the extent to which existing local power structures may influence development priorities. 

Tourism with Identity in Practice

In 2025, I had the opportunity to visit an impressive ecotourism lodge, featured in an IDB study and operated by the Kichwa-Añangu Indigenous People in the Yasuní National Park in Ecuador. This lodge stands out as one of the pioneering organizations in Violet Tourism in Ecuador, a strategy implemented with technical and financial support from the IDB, in partnership with the Vice Ministry of Tourism. For me, it offered an opportunity to observe development with identity in practice.

Yasuní is considered one of the most biodiverse places on Earth, home to nearly 600 bird species and well over 100,000 insect species. Located in the Ecuadorian Amazon, it is also the ancestral home of different Indigenous Peoples, including the Tagaeri and Taromenane who are amongst the few voluntarily isolated groups on the planet.

The Kichwa-Añangu Peoples have built a business model that is financially sustainable, has promoted the conservation of a fragile ecosystem and, at the same time, is contributing to their wellbeing and to that of other nearby communities. A key element of this success is its governance model, which operates through a local council, elected every two years, with women holding 50% of the seats.  

Bringing Decisions Closer to Communities

What struck me most during my visit was not only the success of the business itself, but the way decisions were made. The experience suggested that when local institutions are representative, accountable, and rooted in community values, development can reflect the priorities and aspirations of the people it is intended to serve.

According to an IDB study, community-based tourism in Ecuador’s Amazon and Highlands regions is emerging as a powerful example of development with identity in practice. By combining income generation, cultural preservation, environmental stewardship, and local governance, it shows how development can align with Indigenous Peoples’ priorities and worldviews. Indigenous women also play a central role through activities such as gastronomy, visitor services, and artisanal production, contributing knowledge and skills that enrich the tourism experience and strengthen local economies.

Looking back, I realize that the question that emerged from my early research in Ecuador continues to shape how I think about development today. Is there such a thing as development with identity? My experience in Yasuní suggests that there is. It is about bringing decisions closer to communities. It is about ensuring that communities have the institutions, voice, and agency to define their own development pathways. When that happens, development is more effective, inclusive, sustainable, and true to the aspirations of the people it seeks to serve.