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Indigenous and tribal communities are frequently affected by development projects in an adverse manner. Often they do not have any effective way of redressing their grievances, particularly against noncompliance of environmental guidelines and rules by International Development Institutions. This thesis explores avenues open to affected peoples to redress their grievances regarding the negative impacts of development projects. The thesis begins by defining "Project Affected Peoples," explores the concept of sustainable development, and suggests consequent principles for development projects. Then follows an examination of an existing grievance-redressal mechanism, the World Bank Inspection Panel, which has been mandated to redress complaints from peoples affected by Bank projects. Within this context, the reasons for the formation of the Panel and the Bank's Operational Directives, Policies and Procedures are examined. An assessment of the effectiveness of the Panel's decisions and the degree of the Panel's independence from the Bank management is made. A number of suggestions that could strengthen the Panel's functioning are listed. This thesis argues that the jurisdiction of the World Bank Inspection Panel might be expanded to encompass other International Development Institutions. These might include those that were identified as members of the Committee of International Development Institutions on the Environment formed in 1980 as one outcome of the 1972 Stockholm Declaration.