In the 1990’s, after years of a military dictatorship, most Latin American countries initiated processes of democratization that included the passing of new constitutions. Most of these constitutions acknowledged indigenous peoples and recognized their right to property of communal lands. These transformations occurred in the context of neoliberal reforms that entailed political and economic adjustment, such as cuts in the national budget, end of the state subsidies, and processes of decentralization and privatization at national and local levels. The new constitutions promoted the inclusion of traditionally excluded groups as the nation state was experiencing radical transformations that diminished some of its powers. This thesis examines the ways in which the Argentine state has constructed nation and citizenship, and how indigenous communities engage with these processes. It analyzes changes and continuities in citizenship and ethnic identity construction, and how these processes are shaped from below, by looking at the historical process of appropriation and restitution of the territory of the Kolla Community of Finca Santiago, located in the province of Salta, Northwestern Argentina. It explores the various strategies carried out by the local community, the provincial and federal governments, various non-governmental organizations, and finally the World Bank. Lastly, the thesis also examines the local and national impact of the Indigenous Development Project carried out by the World Bank in the community.