INFORMATION ASYMMETRY AND THE EFFECTIVENESS OF PRIOR CONSULTATION: AN ANALYSIS OF NbS CONTRACTUAL NEGOTIATIONS IN THE VALE DO JAVARI INDIGENOUS TERRITORY

Abstract

This article sought to analyze the impact of information asymmetry on the effectiveness of Prior, Free, and Informed Consultation, taking as a reference the negotiations of Nature-based Solutions (NbS) contracts in the Vale do Javari Indigenous Territory in 2022. The adopted methodology was qualitative, exploratory, and applied, conducted primarily through documentary analysis, especially the records of a Public Civil Action, and a literature review, utilizing the theoretical framework of information asymmetry by Stiglitz and Akerlof alongside ILO Convention 169. The results demonstrate severe transparency failures, a disparity of conditions between the parties, and evidence of the non-existence of a genuine consultation process, which culminated in the judicial suspension of the contracts. Therefore, the research concluded that the institutionalization of autonomous consultation protocols is a crucial mechanism to mitigate informational vulnerability and ensure the effective participation and self-determination of indigenous peoples.