peru's extractive sector enrages the indigenous: lemme get some extraction, from the black-section!

8/13/2019 Peru's Extractive Sector Enrages the Indigenous: Lemme get some Extraction, from the Black-Section!

1/14

Jonathan Leonard

Comparative Development Experience: NINT 5000

April 9th, 20!

"er#$% Extractive &ector Enra'e% the Indi'eno#%:

Lemme get some Extraction, from the Black-Section!


2/14

Extractive Ind#%tr() *hat exactl( i% the extractive ind#%tr(+ *hat i% it extractin', and rom

-here+ The term .extractive ind#%tr(/ i% ar rom %el explanator(, and it$% ea%( to #nder%tand ho-

%omeone -ho i% #namiliar mi'ht not have the cleare%t idea o it% parameter%) rom the per%pective o

the 1#%ine%% -orld, an extractive ind#%tr( i% de%cri1ed a% .An( proce%%e% that involve the extraction o

ra- material% rom the earth to 1e #%ed 1( con%#mer%) The extractive ind#%tr( con%i%t% o an(operation% that remove metal%, mineral% and a''re'ate% rom the earth)/ In thi% ca%e %t#d( on "er#, -e

have expanded the term to incl#de the tim1er %ector, a% -ell a% other inite nat#ral re%o#rce%) The term

.extractive/ ha% a dierent and maredl( ne'ative connotation -ithin the -orld o 'lo1al development

economic%) The a#thor% o Why Nations Fail,Acemo'l# and 3o1in%on, de%cri1e extraction a% a po-er

%tr#ct#re -here elite mem1er% o %ociet( extract and hoard the -ealth, den(in' it% 1eneit% to the

remainder o the pop#lation)2 Intere%tin'l(, o#r ca%e %t#d( o "er# %hed% li'ht on a %it#ation in -hich

1oth the 1#%ine%% and development deinition% o extractive can 1e %im#ltaneo#%l( applied) 4%in' data

collected rom a diver%it( o %o#rce%, 1oth local and international, -e inve%ti'ate -hat %ocial

con%e#ence% mi'ht 1e emer'in' a% a %(mptom o thi% ph(%ical and economic extraction)

Extractive i%%#e% are no %tran'er to "er#, and are not limited to the time period o o#r

inve%ti'ation) In act, one o the mo%t nota1le hi%torical example% o extreme extractive practice -a%

the 3#11er 6oom o 78592, in -hich r#11er 1aron% en%laved a va%t n#m1er o indi'eno#%

Amaonian%) ; tho%e contacted 1( invadin' r#11ertapper%, 85< -ere illed)! ;#r ca%e %t#d( on

"er#$% extractive ind#%tr( -ill onl( inve%ti'ate the (ear% ollo-in' 2000, 1#t it$% important to

acno-led'e thi% atrocit( a% a 1lood( 1acdrop o Amaonian hi%tor( -hich contin#e% to eect

indi'eno#% attit#de% to-ard invadin' re%o#rce 'atherer%) Th#%, it %tand% to rea%on that -hen re%o#rce

'atherin' or'aniation% move deeper into "er#$% Amaon land% and 1e'in lar'e %cale extraction, the rate

o %ocial conlict and prote%t amon' r#ral Amaonian comm#nitie% %harpl( increa%e%) #rthermore, thi%

model o r#ral a1#%e and conlict can 1e exported to other .developin'/ co#ntrie% -hich are c#rrentl(

openin' their co#ntr(%ide to extraction) =o%t .developin'/ co#ntrie% are po%tcolonial %tate%, and oten

have their o-n hi%tor( o indi'eno#% atrocit( %imilar to the that o the 3#11er 6oom> main' them

partic#larl( %en%itive to developmentall( inclined inva%ion% o their traditional tri1al land%)

?Extractive Ind#%tr()? What Is Extractive Indstry "efinition and #eaning) *e1) =ar) 20!)

@http:---)1#%ine%%dictionar()comdeinitionextractiveind#%tr()htmlB2 Acemo'l#, Daron, and Jame% A) 3o1in%on) Why Nations Fail $he %rigins of &o'er, &ros(erity, and &overty) Ne-

or: Cro-n, 202) pa'e 8F "rint)

! ?The International Nat#ral 3#11er =aret, 7809!0)?Economic )istory Services) *e1) 2 =ar) 20!)

@http:eh)netenc(clopediaarticleran)international)r#11er)maretB)

2


3/14

rom an economicall( developmental %tandpoint, 2000 on-ard% i% con%idered the po%t

*a%hin'ton Con%en%#% period) The *a%hin'ton Con%en%#% -a% a -e%tern championed %et o neo

li1eral development %trate'ie% p#%hed #pon the developin' -orld d#rin' the 990%> incl#din' the

dere'#lation o maret% and the openin' o 1order% to ree international trade) The%e policie% p#%hed

"er# into a ne- maretplace -ith more ind#%trialied %tate%, and increa%ed it% export potential%i'niicantl()G In the earl( 2000%, China and India experienced a man#act#rin' 1oom -hich 'reatl(

increa%ed the 'lo1al demand or ra- material%) The ollo-in' 'raph ill#%trate% 1oth the 'lo1al price o

"er#$% main ra- material% in 1l#eF a% -ell a% it$% prod#ction o tho%e material% oran'eF)

G *eintra#1, &idne() ?Trade Inte'ration In The America% : 3evi%itin' The *a%hin'ton Con%en%#%)? 8 =ar) 2009) *e1)

7 =ar) 20!) @http:%t#dentor'%)la-)%m#)ed#'etattachmentInternationalLa-3evie-A%%ociation3e%o#rce%L63A

Archive5&=60!)pd)a%pxB)

!


4/14

Thi% %pie in demand, a% demon%trated in the 'raph a1ove, incentivied a n#m1er o

or'aniation% %#ch a%: extractive corporation%, the national 'overnment, and ille'al miner% to increa%e

their rate o extraction) Indeed, a% a percenta'e o the nation$% export%, the o#tlo- o metal%, oil, and

'a% have tr#l( come to the oreront, compri%in' 80< o "er#$% total export% in 200:5

Thi% h#'e increa%e in the 6#%ine%%F extractive %ector, paired -ith Economicall(F extractive

policie% and re'#lation% have ca#%ed a dra%tic increa%e in the n#m1er o %ocial conlict%> e%peciall(

amon' the indi'eno#% pop#lation) =an( o the%e &ocial Conlict% are reaction% to the 'overnment

'rantin' land conce%%ion% to extractive 1#%ine%%e%) *ithin the%e conce%%ion%, the 'overnment allo-%

land to 1e #%ed or the extraction o a %peciic nat#ral re%o#rce) &ome o the more dramatic

conce%%ionar( activit( -a% %een in the h(drocar1on %ector, -here the 'overnment lea%ed h#'e expan%e%

o land) In 200! h(drocar1on conce%%ion% covered a total o 8< o "er#$% Amaon re'ion) In 200

the( covered G


5/14

6#t it$% not #%t the ormal %ector o extractive ind#%trie% -hich ha% 1een rapidl( expandin'> the

n#m1er o ille'al 'old minin' and lo''in' camp% have al%o 'ro-n exponentiall() Ille'al camp% have

%pr#n' #p all over the Amaon 1a%in, even in area% -hich are protected 1( the national 'overnment

%#ch a% nat#re re%erve% or indi'eno#% re%ervation%) The 1lac maret 1aron% -ho r#n the%e camp% are

notorio#% or the a1#%e, over-orin', and en%lavement o their o-n -orer%) 8 The( al%o a1#%e the

local indi'eno#% pop#lation, oten -ipin' o#t entire tri1e% 1( -a( o '#n%, di%ea%e%, and de%tr#ction o

vital re%o#rce%)7 6#t the pro1lem o %ocial conlict and economic extraction r#n m#ch deeper than #%t

the ille'al camp% operatin' on the %#race)

In order or ille'al 'old or l#m1er to 1e exported, it need% 1e le'all( doc#mented) The level o

corr#ption and lenienc( in the "er#vian 'overnment ha% created a c#lt#re o or'ed doc#mentation,

-hich i% #%ed to le'all( export ille'all( collected material%) To ill#%trate ho- thi% -or%, let$% tae the

tim1er trade) Ille'al lo''er% -ho c#t tree% rom nat#ral re%erve% need doc#mentation or the%e tree%)

"eople -ho o-n le'al conce%%ion% rom the 'overnment create doc#ment% o .vol#me/ -hich reer to

the ellin' o p#rel( ictional tree% on their conce%%ion) The%e doc#ment% are then %old to the ille'al

lo''er%, %o that it appear% that the tree% came rom a le'al conce%%ion) The%e extractive practice% are

8 &harma, 6havna, ontem(orary Forms of Slavery in &er. Anti&laver( International, 200) *e1) 9 April) 20!

http:---)anti%laver()or'incl#de%doc#ment%cmdoc%2009ccontemporar(orm%o%laver(inper#)pd

7 $hreats to the /ncontacted $ri+es. rvival International) *e1) 9 April) 20!

http:---)%#rvivalinternational)or'campai'n%threat%

5

200- 200, 200. 200 200+ 200/ 200( 2010

0

.0000

100000

1.0000

200000

2.0000

-00000

-.0000

,00000

&mount o yrocarbon 3oness#on 4an 5200-620107

Source: 8"P Sc#ence9 En#ronmental ;esearc* Paper n2er3onecess#on5s?

uare@M7


6/14

made po%%i1le 1( the "er#vian 'overnment oicial% -ho are either 1ein' paid o, or are %impl(

incapa1le o properl( re'#latin' the lo- o tim1er) In 202 "er#$% Corr#ption "erception% Index -a%

at !700, p#ttin' it on par -ith Jamaica, &er1ia, and =ala-i in term% o 'overnment corr#ption)9 6#t

it$% not onl( ille'al operation% -hich are ca#%in' a pro1lem) Kovernment entitie% have 1een allo-in'

le'al companie% to i'nore r#le% and re'#lation%> e%peciall( tho%e de%i'ned to protect the indi'eno#%people livin' on or near conce%%ion land)

The%e inrin'ement% o le'alit( and ethic% have not 'one #nnoticed in the local or 'lo1al

comm#nit() *ithin "er#, there ha% 1een a %pie in the n#m1er o complaint% reported rom the r#ral

one%, -here the extractive ind#%tr( i% operatin') The ollo-in' 'raph relate% to the n#m1er o

complaint% -hich have come in rom nationall( protected area% 1et-een 999 and 2009) The

complaint% -ere lod'ed -ith Deen%oria Del "#e1lo, an a#tonomo#% 1ranch o the "er#vian

'overnment -ith the mi%%ion o pre%ervin' the ri'ht% o villa'er%)0

9 ?Corr#ption "erception% Index 202 ie- 3e%#lt% Ta1le ie- 6roch#re)? 0120 orr(tion &erce(tions Index) *e1) 2

=ar) 20!) @http:cpi)tran%parenc()or'cpi202re%#lt%B)

0 ?"#e1lo% Indi'ena%)?"efensoria "el &e+lo) *e1) 2 =ar) 20!) @http:---)deen%oria)'o1)pe'r#po%

eatencion)php+de%H20B)

2002 200- 200, 200. 200 200+ 200/ 200(

0

2

,

/

10

12

1,

1

=umber o 3ompla#nts rom Protecte &reas 58n#enous an =ature ;eseres7w*#c* *ae been loe w#t* Deensor#a el Pueblo

=umbero03om

pla#nts


7/14

The correlation 1et-een extractive ind#%tr( and %ocial conlict 1ecome% even %tron'er -hen -e

1rea the complaint% into dierent cate'orie%) The ollo-in' chart %ho-% the 1reado-n o complaint%

or 20072009, the (ear% -hich the complaint rate or protected area% reached an all time hi'h)

rom the 'raph -e can %ee that the lar'e%t n#m1er o complaint% are concernin' the ri'ht% o

indi'eno#% to-n%, the ri'ht to petition prote%tF, and environmental ri'ht%) At ir%t 'lance it$% ea%( to

%ee ho- villa'e ri'ht% and environment ri'ht% are %tron'l( tied to the inva%ion o the extractive

ind#%tr() illa'e%$ ri'ht% are i'nored a% corporation% orci1l( relocate their re%ident%, or di' open pit

mine% in their direct vicinit() Environmental ri'ht% are i'nored a% extraction operation% poll#te

-ater%hed% and deore%t lar'e %ection% o the Amaon)2 &tran'el( eno#'h, the ri'ht to petition al%o

correlate% to the prolieration o "er#$% extractive ind#%tr(, altho#'h 1e it le%% directl() "etition% and

prote%t% have 1ecome a common occ#rrence thro#'ho#t the Amaon re'ion, and -ere exacer1ated 1(

the pa%%in' o G controver%ial decree% -hich -ere %een 1( indi'eno#% pop#lation% a% a land'ra1

attempt 1( the national 'overnment)

&alaar, =ila'ro%) ?"E34: ;pen"it =ine Contin#e% to &-allo- Cit()? Inter "re%% &ervice Ne-% A'enc(, 05 Jan) 2009)*e1) 8 =ar) 20!) @http:---)ip%ne-%)net20090per#openpitminecontin#e%to%-allo-cit(B)

2 =orten%on, Darrin) ?Te%t% "rove ;il Contamination In "er#vian Amaon 3e%erve and Native Territorie%)?*liana

*rkana) N)p), e1) 20!) *e1) 8 =ar) 20!) @http:---)alianaarana)or'mediaroom1lo'late%t

ne-%entr(te%t%proveoilcontaminationalon'pa%taaandnationalre%erveindin'%#elnativere%i%tanceB)

8

Types o 3ompla#nts rom Protecte Aones 5200/ 200(7

Source: S#stema e 8normac#on Deensor#al 5S8D7

;#*ts o 8n#enous


8/14

Controver%ial Decree% pa%%ed in 2007 re'ardin' the Di%mantlin' o Indi'eno#% Land 3i'ht%:

) Decree 05: Attempted to acilitate the privatiation o indi'eno#% land 1( %#1%tantiall(

red#cin' the n#m1er o voter% re#ired or a comm#nit( to %ell it% land to a !rd part() It

red#ced the re#ired n#m1er to 50< o mem1er% pre%ent at the comm#nal a%%em1l(F)

2) Decree 0G: Declared that !rd partie% -ho had invaded and 1een occ#p(in' indi'eno#% land%ince 2005 can claim a title -ithin comm#nal land%) A1oli%hed the %tate$% o1li'ation to con%#lt

-ith the indi'eno#% comm#nit( re'ardin' ne- extractive proect%, and the compen%ation the(

-o#ld receive)

!) Decree 079: E%ta1li%hed ne- a'enc( called C;;"3I -hich ha% %-eepin' po-er% to modi(

exi%tin' comm#nit( 1o#ndarie%, and ann#l exi%tin' land title%)

G) Decree 090: E%ta1li%hed a ne- ore%tr( la- -hich doe% not reco'nie c#%tomar( indi'eno#%

land%, and th#% ca#%e% their overlap -ith tim1er and 1io#el conce%%ion%)!

The%e decree%, alon' -ith other% aimed at erodin' indi'eno#% land holdin'%, -ere the main

catal(%t or the dramatic increa%e in %ocial conlict% and prote%t%) "rote%ter% -o#ld commonl( mae

their pre%ence no-n 1( road1locin' tr#cin' ro#te%, preventin' the extracted re%o#rce% rom leavin'

the area) Kovernment and private intere%t% 1ecame r#%trated 1eca#%e the( co#ld not meet proected

'oal% and -eren$t deliverin' on promi%e% made to their 1#%ine%% partner% and %hareholder%) The%e

conrontation% came to a head in J#ne 2009 in an area called 6a'#a, -here A-a#n and *ampi%

tri1e%men had 1een o1%tr#ctin' the road to "etro"er#$% remote oil p#mpin' %tation No) or t-o

month%) Cla%he% 1et-een police and prote%ter% 'ot o#t o control, and let #p to 00 people dead)G

6a'#a, altho#'h the 1loodie%t %ocial conlict in decade%, i% ar rom 1ein' an i%olated incident) The

pre%%#re rom the 'overnment to open #p the Amaon to orei'n inve%tment ha% ca#%ed %ocial conlict%

-hich %pan acro%% the entire Amaonian re'ion)

! ?Le'al 6#t Not Le'itimate: Le'i%lative Decree 05 and ;ther%)? "e# pport Kro#p, 05 A#') 200) *e1) 8 =ar)

20!) @http:---)per#%#pport'ro#p)or')#article25)htmlB)

G Coll(n%, Dan) ?"er# "olari%ed ater Deadl( Cla%he%)?BB Ne's) 66C, 0 ;ct) 2009) *e1) 2 =ar) 20!)

@http:ne-%)11c)co)#2hi709!829)%tmB)

7


9/14

;n the 'raph -e can clearl( %ee a %pie in the n#m1er o %ocial conlict% -hich %tron'l(

correlate% -ith the pa%%in' o the controver%ial 2007 decree%) Almo%t at the pea o %ocial conlict i%

the 6a'#a incident, -hich too place in J#ne 2009) The relative decline ollo-in' the incident can 1e

attri1#ted to the political %#cce%%e% achieved 1( the indi'eno#%, and their demand% or a voice

1e'innin' to 1e reco'nied)15 Advocate% o the extractive ind#%tr( mi'ht thro- do#1t #pon thi% data,

claimin' that the increa%e in %ocial conlict% co#ld 1e attri1#ted to other %ocial actor%) To addre%% the%e

potential critici%m%, o#r next 'raph %ho-% a 1reado-n o %ocial conlict over thi% time period)

5 ?"rote%t% in "er# Malt Ne-mont Kold =ine "roect)?BB Ne's) 66C, !0 Nov) 20) *e1) 8 =ar) 20!)

@http:---)11c)co)#ne-%-orldlatinamerica595G29B)

9

Can 0May 0

Sep 0Can 0+

May 0+Sep 0+

Can 0/May 0/

Sep 0/Can 0(

May 0(Sep 0(

Can 10May 10

Sep 10Can 11

May 11Sep 10

.0

100

1.0

200

2.0

-00

-.0

=umber o Soc#al 3onl#cts #n Peru 5200620117

Source: Deensor#a el Pueb

=umbero03on0l#cts


10/14

*e can clearl( %ee that environmental concern% -ere the lar'e%t contri1#tor to %ocial conlict in

20020) Conlict% -ith local 'overnment% are lar'el( related to a#lt( re'#lator( monitorin',

1eca#%e man( o the re%pon%i1ilitie% o Amaonian environmental re'#lation have 1een pa%%ed rom

the national 'overnment to inade#ate local 'overnment%) Increa%ed local 'overnment control i% the

prod#ct o a lon' term decentraliation proce%% -hich 1e'an in "er# in 2002) The pro1lem aro%e -hen

%tate #nction% -ere tran%erred rom the national level to the local level more rapidl( than the

development pace o the local 'overnment, leadin' to it% lac o capacit( and competence) The

national 'overnment, po%%i1l( #p%et over it% lo%% o control in the r#ral re'ion%, ha% ne'lected to

provide '#idance to the local m#nicipal 'overnment% on ho- to handle their ne- #nction%) Amon'

the%e #nction% -hich are lacin' -e ind: an ina1ilit( to over%ee extractive companie% and their

accordance -ith the la-, and an ina1ilit( to halt the operation% o ille'al extraction camp%)

The local 'overnment% ace a 'rave dearth o re%o#rce%, mainl( 1eca#%e all the mone( made

rom r#ral nat#ral re%o#rce% either: leave% the co#ntr( in the hand% o the =NC%, 'oe% to Lima in the

hand% o "er#vian 1#%ine%%men, or 'oe% to Lima to ill the coer% o the national 'overnment -ho i%

paid or land conce%%ion%F) The re'ional 'overnment, rom -ho%e land the re%o#rce% -ere act#all(

extracted, then ha% to -ait or mone( tran%er% 1ac rom Lima to cover their operatin' co%t%) er(

6#%tad, Eri, and Linn Klme#%) .Eval#ation' i%cal Decentraliation in "er#)/ The%i%) Department o Economic% at

the 4niver%it( o L#nd, 200) *e1) 7 =ar) 20!)

0

D#str#but#on o 5re#stere7 Soc#al 3onl#cts #n Peru 20062011

Source: Deensor#a el Pueblo9 ;eporte Mensual e 3onl#ctos Soc#ales =(1

En#ronmental ,1+!

8ssues w#t* 4ocal %oernment 1+!

4abor 8ssues 122!

8ssues w#t* =at#onal %oernment +!

Electoral 8ssues .2!

8ssues w#t* ;e#onal %oernment ,!

3ommun#ty 8ssues ,,!

"t*er 8ssues -+!

Terr#tor#al Demarcaton --!

8lleal 3oca %row#n 11!


11/14

little mone( come% 1ac rom Lima to the m#nicipal 'overnment% in compari%on -ith ho- m#ch i%

ph(%icall( extracted, and the mone( -hich doe% ret#rn i% %trictl( earmared or capital inve%tment and

not or %ocial or inra%tr#ct#ral improvement%)8 Thi% removal o mone( rom the extraction one i%

-h( -e de%i'nate the re%o#rce ind#%tr( a% economicall( extractive, e%peciall( on a re'ional %cale)

;n a national %cale, ho-ever, the ine#alit( i% more diic#lt to perceive) A lot o the mone('ained rom 'overnment conce%%ion% i% %pent on %chool% and other %ocial 'ood% in Lima, and th#%

relect -ell on the %ocial -elare 1#d'et o the co#ntr( at lar'e) Th#%, indicator% -hich mea%#re "er#

a% a -hole %#ch a% KD" "er CapitaF -ill have diic#lt( relectin' the%e re'ionall( extractive i%%#e%,

e%peciall( con%iderin' that the pop#lation o Amaonia i% m#ch %maller than that o "er#$% developed

coa%tal re'ion)

8 Ara'on, ernando, and Carlo% Ca%a%) ?Local Kovernment% Capacit( and "erormance: Evidence rom "er#vian

=#nicipalitie%)? p'%: 2!2) Dec) 2007) *e1) 7 =ar) 20!)

@http:---)ca)comattach9dea#ltal'overnment%capacit(andperormanceevidencerom"er#vianm#nicipalitie%dee

rnandoAra'


12/14

Indeed, it %eem% that man( o the common 'lo1al indicator% o development, %tandard% o

livin', and #alit( o live %eem to mi%% thi% re'ionall( extractive i%%#e entirel() The primar( rea%on

1ein'> the( a%%e%% "er#$% reportingpop#lation a% a whole) 6ein' an extreme minorit(, mo%t o -hom

do not report an(thin' to the national 'overnment, the Ind'eno#% Amaonian% are rather ea%( to .%-eep

#nder the r#')/ To ill#%trate ho- thi% -or%, -e %hall ollo- a h(pothetical example o ho- a -idel(reco'nied indicator %#ch a% the M#man Development Index MDIF can ail to addre%% thi i%%#e: A

corporation i% 'ranted an oil conce%%ion #pon indi'eno#% land) The indi'eno#% tri1e i% then rava'ed 1(

di%ea%e and poi%oned 1( oil in their -ater %o#rce) The compan( %ell% their oil on the 1oo%, 'ivin' a

lar'e %pie to "er#$% KD"Capita, a contri1#tin' actor to MDI) Kovernment taxe% on the oil$% %ale, and

rent 'athered rom the oil conce%%ion are #%ed to #nd %chool% and health %ervice% in Lima) No-, more

"er#vian children are in %chool, and "er#vian% have a hi'her lie expectanc(> 1oth actor% o MDI) And

-hat o the poi%oned and di%ea%ed indi'eno#% tri1e+ Not a actor)

To #ll( #nder%tand the chain o event% -hich have led to -ide%pread %ocial conlict, it i%

1eneicial to tae a %tep 1ac and revi%it each in t#rn: A%ia$% 1oom in man#act#rin' led to a 'reater

'lo1al demand or ra- material%, e%peciall( mineral%) The increa%ed price or ra- material%

incentivied a 'reater rate o extraction in r#ral re'ion%) Thi% %#r'e o r#ral activit( -a% not eectivel(

moderated 1( the "er#vian 'overnment d#e to corr#ption and inade#ate #nction% o m#nicipal

2

200. 200 200+ 200/ 200( 2010 2011 2012

0+

0/

0(

0+0+1

0+2

0+-

0+,

0+.

Peru's D8 5uman Deelopment 8nex7 200. 6 2012

Source: >=DP


13/14

'overnment%) iolation% o indi'eno#% ri'ht% 1( companie% and criminal% -ent #np#ni%hed, and the

Amaonian pop#lation 1e'an to %ho- %erio#% %(mptom% o #nre%t) The decree% 1( the 'overnment to

#rther open the re'ion to orei'n inve%tment led to -ide %pread prote%t% acro%% all eected area%)

The%e prote%t% led to cla%he% -ith the police, and #ltimatel(: 1lood%hed) Thi% chain o event% ha%

1ro#'ht the i%%#e o the "er#vian Amaon to the oreront o 'lo1al h#manitarian i%%#e%)*hat can -e learn rom thi% ca%e %t#d( o the extractive ind#%tr(+ *e need to di%%eminate thi%

inormation to incl#de not #%t -hat happened, 1#t -h( it happened and ho- it mi'ht happen in other

%tate% -hich 1ear certain %imilaritie% to "er#) Thi% application can 1e made ea%ier 1( identi(in'

'eneral actor% o "er#$% %it#ation -hich co#ld 1e applied to other nation %tate% -ith 1#r'eonin'

extractive %ector%) ;ne o the e( element% i% that extractive ind#%trie% 'enerall( operate in r#ral

re'ion%, -here the ra- material% are located) The%e remote area% are 'enerall( #ite a di%tance a-a(

rom the centralied 'overnment) 3emote re'ion% oten lac a %tron' 'overnment pre%ence, and can 1e

relativel( #nre'#lated 1( the central 'overnment) I a 'overnment ha% a hi'h level o corr#ption lie

"er#F7the remotene%% o extraction %ite% mae% it ea%( or extractor% to %ide%tep or 1latantl( i'nore the

r#le%)

=o%t o the ne-l( emer'in' extraction one% are in nation% -hich are commonl( reerred to a%

.developin'/ co#ntrie%) =an( o the%e co#ntrie% have lo- level% o 'overnmental control, and hi'h

level% o corr#ption) Thi% i% e%peciall( harm#l con%iderin' that the extractive ind#%trie% are 'enerall(

not #%t ph(%icall( extractive, 1#t tend to 1e %ociall( and economicall( extractive a% -ell) Thi% mean%

that the -ealth 'enerated doe% not %ta( in the comm#nit( rom -hich the re%o#rce -a% extracted)

In%tead, the -ealth i% .extracted/ rom the comm#nit(> %ent o to the #r1an area% o the co#ntr(, or to

the pocet% o orei'n inve%tor%) The%e concept% are %(mptom% o -hat i% reerred to a% the .3e%o#rce

C#r%e/ or .D#tchDi%ea%e)/ Thi% phenomenon ha% 1een o1%erved in developin' nation% -hich have

%iea1le endo-ment% o ra- material% paired -ith hi'h level% o 'overnment corr#ption and -ea

in%tit#tional %tr#ct#re% and acco#nta1ilit()9 Mi%toricall(, D#tchDi%ea%e alict% the r#ral poor 1eca#%e

the( are in the proximit( o extraction one% and are the mo%t #nderrepre%ented and di%enranchi%ed

%#1%et o %ociet(> main' them ea%( tar'et% or exploitation)

7 Tran%parenc( International, Corr#ption "erception% Index 202) http:cpi)tran%parenc()or'cpi202re%#lt%

9 E1rahimadeh, Chri%tine) ?D#tch Di%ea%e: *ealth =ana'ed 4n-i%el()?Finance 3 "evelo(ment) International

=onetar( #nd, 27 =ar) 202) *e1) 2 =ar) 20!) @http:---)im)or'externalp#1%tandd1a%ic%d#tch)htmB)

!


14/14

Mo-ever, the local people are not -itho#t voice) In an era o 'ro-in' international

tran%parenc( and non 'overnment -atchdo'%, the indi'eno#% people are learnin' to %tand their 'ro#nd)

Ater all, the( are the one% %ittin' on the%e de%ira1le re%o#rce%, and the( have the a1ilit( to ca#%e

%erio#% %et1ac% to the invadin' ind#%tr() The %ocial #nre%t ca#%ed 1( the extractive ind#%tr( %ho#ld 1e

#%ed a% a -arnin' to other co#ntrie% -hich are in the proce%% o openin' #p their r#ral one% topro%pector%) *e have %een a direct correlation 1et-een %ocial conlict and the expan%ion o the

extractive ind#%tr( a% a re%#lt o 'ro-in' pain%) The%e pain% are ca#%ed 1( the 'ro-thrate o

extractive ind#%tr( exceedin' the 'ro-thrate o in%tit#tional re'#lation) An( nation hopin' to avoid

another 6a'#a incident -o#ld do -ell to remem1er that: Lar'e and rapid 'ro-th o the extractive

%ector paired -ith a lac o le'al re'#lation and the pre%ence o 'overnment corr#ption -ill lead to an

increa%ed level o %ocial conlict, e%peciall( amon' indi'eno#% pop#lation% and other r#ral re%ident%)

G

peru's extractive sector enrages the indigenous: lemme get some extraction, from the black-section!

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