In large part due to the simple lack of "Rule of Law" in Latin American countries, as well as to the minority status of indigenous people and their proximity to unexploited natural resources, their rights are being ignored by state and market actors alike. This is despite the ratification of ILO Convention 169 by the majority of South American countries.
"Social and indigenous movements in Latin American countries have increasingly strengthened their capacity to demand for social rights and their presence in the political arena. This has been generating a constant confrontation between indigenous peoples and Latin American states. Although many countries subscribe to international regulations on the rights of indigenous peoples, most face difficulties in implementing international norms into their national legislation. Currently, the ILO Convention 169, ratified by eight South American countries, and the United Nations Declaration on the Rights of Indigenous Peoples are the two mechanisms through which States are encouraged to institutionalize the participation of indigenous peoples through consultation on the implementation of policies that affect them, particularly in the exploration and exploitation of natural resources in indigenous territories."
Bolivia and Ecuador, two of the Latin American countries with the largest indigenous populations, are the only ones to have made significant progress in enforcing and guaranteeing the rights of their indigenous populations. Indigenous beliefs and culture have, in fact, become a significant part of national political culture in both countries. At the same time, on a policy and practice level, other Latin American governments are treating indigenous people as second-class citizens and are likely to continue doing so, especially in situations where indigenous land rights are being asserted against development projects such as dams, logging, and land use change for agribusiness.
FORO, October 2010, pg. 4: http://newsletters.clearsignals.org/FORO_Oct2010.pdf#page=4 
C169, Indigenous and tribal people convention, OIT. Available: http://www.ilo.org/ilolex/english/convdisp1.htm  [accessed: October, 2010]. See, too: Consejo de Derechos Available: http://www.servindi.org/pdf/A_HRC_EMRIP_2010_2_sp%5B1%5D.pdf  [accessed: October, 2010].