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Indigenous groups in Nicaragua have won the courtroom battle to preserve their land rights in the country's autonomous region. However, they are waiting to see whether the government will respect the Supreme Court's ruling.

On Feb. 3, 1998, Nicaragua's Supreme Court ruled in favor of the Indians in the North Atlantic Autonomous Region, or RAAN, where a logging concession was illegally granted to a South Korean company, Solcarsa. The 62,000-cubic hectare concession did include lands designated for industrial use, but it also included lands that had been set aside for environmental preservation and indigenous groups. The Supreme Court ruling ordered the federal government to shut down Solcarsa's operations.

This is the second ruling against Solcarsa in the last year. On Feb. 27, 1997, the Supreme Court ruled that the concession was illegal because the RAAN Regional Council had not approved the development. However, by October, more than half of the 45 Regional Council members approved the deal, and the company was allowed to proceed with its operation.

By October, Solcarsa had already invested more than $15 million in the RAAN. In addition to its lumber operation, the company wanted to open textile factories in the area over the long term.

The suit against Solcarsa and the government charged that the concession was approved with only national and personal interests at stake, and that local interests such as indigenous land rights and regional development were not considered. Solcarsa would have provided more than 700 jobs in the region and would have generated hundreds of thousands of dollars in tax revenue. Solcarsa had also said it would reinvest its profits in the RAAN and not send them back to South Korea. In addition, there had been suspicions of bribery that allowed Solcarsa's development to be approved, according to a report by the Indian Law Resource Center. The center assisted in the case against Solcarsa.

While indigenous groups like the Elders' Council and the Yatama said they would welcome the opportunity for development, the dangers of losing their land rights were too great, as was the possibility of dangerous working conditions for their people.