extractive industries and conflict prevention in … governance/ogc/rebecca a...the latin american...
TRANSCRIPT
United Nations Development Programme, Regional Centre Panama
EXTRACTIVE INDUSTRIES AND CONFLICT PREVENTION IN LATIN AMERICA
Photo: Lesley Wright/UNDP
CONTENT
THE LAC CONTEXT
CONFLICTS AND EXTRACTIVE INDUSTRIES: REGIONAL TRENDS
UNPACKING EXTRACTIVE CONFLICTS IN LAC
THE APPROACH OF UNDP
Economic growth and mineral exports in LAC
Growth rates correlated with mineral exports between 2002-2012
0
20
40
60
80
100
120
140
160
180
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
-2
-1
0
1
2
3
4
5
6
7
Min
era
l E
xp
ort
s (
Bill
ion
s, C
urr
en
t U
S$)
Pe
rce
nta
ge
LAC growth rate and mineral exports, 2004-
2014
GDP Growth ( %) Mineral exports (Billions, Current US$)
Pe
r C
ap
ita
GD
P (
19
90
=1
00)
Pe
rcen
tage
Per Capita GDP Extreme Poverty
62
95 9199
72 67 66 69 71
136
204215
225
186
171164 165 167
0
50
100
150
200
250
1980 1990 1999 2002 2008 2011 2012 2013 2014
Indigence Poverty
As Per Capita GDP increased, poverty and extreme poverty decreased
Between 2002 and 2012, poverty declined by 60 million people in LAC
1. In 2014, about 20% of global mineral exports originated in the LAC region
2. The Latin American economic model is based on exporting primary goods, hydrocarbons and minerals
3. Mineral exports representabout 13% of total LAC merchandise exports (about twice the global average)
0
5
10
15
20
25
30
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
LAC and the world: share of mineral exports in total merchandise exports, 1962-2014
Mineral exports from LAC as % of global mineral exports
Mineral exports from LAC as % of the region's total exports
Global mineral exports as % of global exports
Mineral and hydrocarbon exports boomed in LAC between 2003-2008 and 2010-2012, following high price cycles
• 10 LAC countries are among the 15 major producers of metals in the world
• By 2013, the region produced 33% of the world’s ethanol fuel, 25% of biofuels and 13% of oil
0
50
100
150
200
250
300
200
0M
1
200
0M
6
200
0M
11
200
1M
4
200
1M
9
200
2M
2
200
2M
7
200
2M
12
200
3M
5
200
3M
10
200
4M
3
200
4M
8
200
5M
1
200
5M
6
200
5M
11
200
6M
4
200
6M
9
200
7M
2
200
7M
7
200
7M
12
200
8M
5
200
8M
10
200
9M
3
200
9M
8
201
0M
1
201
0M
6
201
0M
11
201
1M
4
201
1M
9
201
2M
2
201
2M
7
201
2M
12
201
3M
5
201
3M
10
201
4M
3
201
4M
8
201
5M
1
201
5M
6
Index of International Commodity Prices, January 2000 to May 2013
(Index: January 2005 = 100)
Metals Energy (Oil, natural gas and coal)
1. Between 2003 and 2012, investment in mining exploration increased tenfold, from US$ 566 million to US$ 5 billion.
2. Five of the top 10 destinations for mining investments are located in Latin America (Chile, Mexico, Brazil Peru, Colombia)
Estimated mineral reserves:
• 65% of world’s Lithium; 49% Silver; 44% Copper; 33% Tin; 26% Bauxite; 23% Nickel; 22% Iron
Latin America25 %
Africa17 %
Asia-Pacific7 %
Australia12 %
Canada16 %
United States8 %
Rest of the World 15 %
Distribution of world mineral exploration budget by region or country of destination.
2012. World total: US$ 21.5 billion
Extractive revenues Fiscal revenue from mining and hydrocarbons allowed governments implement stronger social protection policies in the past decade AND counter-cyclical economic policy during the global recession
Fiscal revenue from mining and hydrocarbons
(% of total fiscal revenues)
Mining Hydrocarbons2000-
2003
2004-
2009
2010-
2012
2000-
2003
2004-
2009
2010-
2012
Argentina 0.5 1.0 1.0 8.7 7.9 10.5
Bolivia (Plurinational State of) 0.5 2.2 4.2 11.9 28.9 31.8
Brazil 0.3 0.5 0.8 2.3 3.5 3.0
Chile 4.3 25.8 19.4 - - -
Colombia 0.6 1.6 1.6 5.4 9.6 13.1
Ecuador - - - 30.0 33.5 42.7
Mexico 0.3 0.8 1.5 19.8 33.4 35.1
Peru 1.0 8.6 8.3 3.2 5.5 7.3
Venezuela (Bolivarian Republic of) - - - 48.0 47.8 41.5
2CONFLICT TRENDS IN LATIN
AMERICA
Conflict map
(2009-2010)
X axis: number of
conflicts
Y axis: escalation
and radicalization
of conflicts
Increasing social conflicts and protest
Paradoxical?
1. Consolidated democracies
2. Substantial social and economic
advances in the past decade
A common regional platform
1. Fragmentation of actors
2. Multiple agendas and demands
3. State as the most frequent subject of
demands
4. Polarisation
Three “ideal types”
Socio-economic (47.3%)
– Work, economic conditions, land
tenure
Institutional conflicts (37,7%)
– Management, public services, legal
measures, authority
Cultural conflicts (14.9%)
– Public goods, ideology, politics,
natural resources and the
environment
The State remains the main recipient of demands (69%)
Mapping EI conflicts in LAC
• The extraction of metal ores are the most common cause of environmental conflicts in the region (212)
MINERALSHYDROCARBONS
Regional trends on EI conflicts
• Conflicts arise during all phases of the
extractive chain
• EI conflicts are multi-causal
• People mobilize against EI for both
potential and observed impacts
• International / Local Non-
Governmental organizations play a
major role
• Environmental activists play a major
role
• Peasants, indigenous groups are
present in a majority of cases
Conflict dynamics and outcomes
• Application of existing regulations
(47.3%)
• Increased contestation and participation
(34%)
• Corruption/bribing (32%)
• Compensation (30%)
• Judicialization/criminalization of
activists (29%)
• Repression (27%)
• Migration/displacement (26%)
• Violence (23%)
3Unpacking
extractive conflicts
in LAC
1. Weak participatory mechanisms
Sporadic, fragile and deficient engagement with affected rural and indigenous communities
• Absent/weak institutions
• Limited regulatory frameworks
• Lack of information
• A tendency to judicialize conflicts
Weak consultation mechanisms
• Free, prior, and informed consent rights are well established in the public sphere, but mostly unregulated
• ILO Covenant 169 endorsed by most countries but challenges remain for its effective implementation to reduce the incidence of conflicts
2. Potential and observed impacts of extractive activities
Environmental
• Water pollution / depletion
• Soil contamination / erosion
• Deforestation or loss of biodiversity
• Air pollution
• Waste overflow
Socio-economic
• Environmental-related diseases
• Occupational hazards and diseases
• Human rights violations
• Land / resource dispossession / population displacement
• Loss of livelihood / food insecurity
• Loss of traditional knowledge / practices
3. Inequitable distribution of benefits• Weak job creation at the local level
• Failure in planning and implementation of social and compensation
funds
• Labor “precarization”
• Lack of transparency4. Limited state capacity / lack of credibility of state institutions• Weak capacities to enforce regulations and norms
• Weak capacities to implement programmes to improve living conditions of affected populations or mitigate negative impacts
• Weak environmental governance tools
• Limited territorial oversight capacities
• Insufficient financial – human resources
• Corruption / Collusion with private companies
6. Globalization of social responsibility and transparency standards• Greater access to new technologies of information and communications
• Global and regional activism, increased pressure
• Global corporate standards for transparency (EITI) and accountability
7. Private sector actions
• Short-term solutions
• Minimalist concept of corporate social responsibility
• Poor workplace policies
• Non-compliance of relevant regulatory tools
• Cooptation of leaders and division of communities
• Clashing world views and development models
8. Clashing views on development models
• Private sector prioritize economic interests
• Governments adopt short-term development approaches
• Indigenous communities have different cultural values and interests
4 UNDP WORK IN
LAC
UNDP work on Extractive Industries
At least twelve countries have projects related to EI in region with strong governance components:
• Promoting conflict prevention and
multi-stakeholder dialogue
• Strengthening institutional
capacities to monitor and manage
conflicts (Peace Infrastructures,
Early Warning-Early Response
systems)
• Strengthening institutions in charge
of environmental and mining
regulation
• Designing policies, reforming
normative frameworks, establishing
protocols, improving procedures
• Improving governance at the sub-
national/local level
• Projects designed with a strong
territorial base
UNDP work on Extractive Industries
Initiatives and tools developed
• More agile and user-friendly conflict analysis tools
• Professional facilitation services for dialogue processes
• Early Warning / Early Response systems templates
• Strategies and programmatic tools to promote a shared visión of societies and a culture of peace
• Intervention protocols for conflict management
• Software and new technological tools that can contribute to conflict prevention
• Gender-sensitive methodologies for consensus-building and multi-stakeholder dialogue
• Guidelines for democratic dialogue and conflict prevention
• Systematization of dialogue processes and lessons learned
LESSONS LEARNT
• No “one size fits all” solutions: context specific interventions
• Two main lines of work in conflict prevention and management:
• Operational conflict prevention: building state infrastructures for peace and supporting multi-stakeholder dialogue. Involve the private sector and CSO’s in dialogue and conflict prevention platforms
• Structural conflict prevention: Strengthening environmental governance (regulatory frameworks; technical capacities to manage EI). Focused socio-economic development on excluded and poor communities with or without EI
• UNDP’s convening power is one of its major assets
• UNDP should adopt a DST approach to address conflict in EI
• Interventions must aim at promoting a positive change in state-society relations
EXAMPLES OF PUBLICATIONS
UNDP Regional Hub / Regional Bureau for Latin America and the Caribbean
(+507) 302-4500 [email protected] / www.latinamerica.undp.org/