17 Institutional reforms facilitating the reallocation of lands would contribute to increasing farming production and reducing poverty levels. Based on the size of the cattle farming establishments in Chaco, it may be stated that cattle farming in the region is mostly extensive, with typically reduced efforts being made to maximize profits and secure a quick financial return on investment. On the other hand, the importance of cattle farming in creating employment opportunities is negligible in terms of employment "quality.” If we analyze the employment conditions frequently offered to indigenous workers by the cattle farming establishments in Chaco, the treatment is absolutely reprehensible. In spite of the legal framework recognizing and demanding respect for the rights of indigenous peoples, the State is responsible for the social exclusion, poverty and humiliation of these communities. This is largely due to the denial of the constitutional right to a territory. Thus, according to the 2002 Report on the Situation of Human Rights in Paraguay, the lands secured for indigenous peoples in the East region amount to some 66,356 hectares, and 972,256 hectares in the West region, and yet they are below the statutory minimum. According to the 2002 National Indigenous Census, to cover the minimum values set forth by statute, it is necessary to secure some 240,000 hectares in the East region and 1,200,000 hectares in the West region. The claims by indigenous peoples are not necessarily conflictive; in the case of the Presidente Hayes department, a large percentage of the lands being claimed do not affect operating productive units. Unfair practices are followed in determining the prices and choosing the lands for allocating resources to the indigenous communities. For example, from 1996 to 1998, the Congress passed a budget allocation of about US$ 30,000,000 (thirty million U.S. dollars) to purchase lands claimed by the indigenous communities. However, as a result of the misuse of public funds and irregular practices in the claims proceedings filed by the INDI, lands that were not being claimed were purchased, and other ones were over-payed. Among the issues restricting access of the indigenous communities to land are those concerning the legislation governing the latifundia, or large landed estates, which, in spite of introducing efficient use and environmental management standards for real property, set forth loose standards which have not contributed to its disappearance or to foster distribution and the land market. The Loma Porá estate is an example of one of the most common practices in Paraguay for concealing the real extension of lands held by a landowner. This cattle farming establishment covers 61,000 hectares in all, subdivided into different holdings as a result of the territorial claim of the Sawhoyamaxa Community, title to which is vested separately in different business organizations set up for the purpose of splitting up the estate. j. Statement by Mr. Andrew Leake, expert witness The general purpose of his study was to review the resources and models of land use by the indigenous people in the East region of the Paraguayan Chaco, and in this context to determine whether the extension of 14,404 hectares claimed by the members of the Sawhoyamaxa Community will allow them to maintain and develop their own sustenance. The data used for the study was obtained from archives, personal communications and published material, but the study basically relies on knowledge the witness has of the region and the indigenous population of Chaco. The depth of the analysis of the land was limited to broad categories of soil coverage, to the extent necessary for a preliminary examination. Any more detailed study will

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