Mining

By Susana del Granado* and Gabriela Olivarez**

Questions surrounding the extraction of natural resources have been the topic of multiple debates in Bolivia. Most recently, two talks, one in La Paz[1] and the other in Santa Cruz[2], questioned the need of this extraction and analyzed the costs. However, the need to compare the extraction between the current and previous governments remains. This short article attempts to contribute to fulfill this gap by comparing the quantities extracted and the public investment between a government claiming to be state-led (2004-2013) and neoliberal ones (1985-2003).

The data shows that the quantities extracted of the main raw materials for export in Bolivia’s economy have increased in the state-led government (see figure 1), but public investment in industry and manufacturing has remained fairly constant (figure 2). Yet, the current government wishes – as established in both development plans (2007, 2015) – to transform Bolivia’s extractivist economy into an economy in which the extraction of raw materials is used as a springboard to achieve industrialization. Nevertheless, little progress appears to be taking place in the discursive trajectory of the current government led by Evo Morales. Furthermore Raul Zibechi, an Uruguayan researcher and journalist, in a recent talk in La Paz argued that industrialization from extractivism is an unattainable goal[3]. Read More »

By Valerie Giesen

Private sector investment in infrastructure and extractive projects such as mining are often perceived as opportunities by national governments. For instance, African governments have welcomed the large-scale involvement of Chinese and Indian firms in infrastructure and mining projects as an economic advantage, which allows governments to improve their competitiveness abroad and increase employment at home. However, these projects tend to affect local populations unevenly, confronting governments with the dilemma of weighing the benefits and disadvantages of economic development in emotionally charged environments. Just last week Ricardo Morel Berendson wrote about the difficulties of building an inclusive mining model in Peru.

An example of the tensions between development goals, which made it into the international headlines in 2011, was the Bolivian government’s plan to build a 182-mile highway, parts of which were to cut through a national park in the Bolivian part of the Amazon basin. Up to this point, the government under Evo Morales had presented itself as a radical defender of indigenous ecological rights on the global stage and had gone beyond external demands on developing countries to preserve their natural environment as a safeguard against climate change. For instance, in 2010, Bolivia was the only country to refuse the outcome of the United Nations (UN) climate summit in Cancún; Its ambassador to the UN, Pablo Solon, argued that the voluntary agreements proposed at Cancún would not be sufficient to bring global warming under control, accusing the international community of acting irresponsibly.

In July 2011, the government’s ‘green’ discourse was undercut by its desire to improve domestic economic growth, when Bolivia’s participation in a continent-wide Brazil-led infrastructure plan was announced. Read More »

By Ricardo Morel Berendson

The mining boom in Peru during the 1990s attracted private investment that led to current economic growth. However, this did not translate into sustainable development of the mining activities. The government has been absent in remote mining areas and, thus, corporations have been targeted as being responsible for attending to local communities’ demands and providing assistance. As a result, mining companies developed only short-term and interest-driven ‘socially responsible’ plans to continue operating. Not surprisingly, social conflict has been especially prevalent in the field of extractive industries. A shift from an extractive model to a more inclusive, participatory one—where governments and private companies work together with local communities—could create a virtuous circle of sustainable social development.

Read More »

HAZ CLIC AQUÍ para leer en español.

China’s strong growth has been extensively reported and debated due to its significant impacts on the prices and volumes of commercial flows during the last few decades. The economic behavior of China is fundamental given that it has one of the highest Gross Domestic Products (GDP) in the world (second only to the United States) and that it has a population that makes up approximately 15 percent of the world’s total.

The 2012 ECLAC document ‘Panorama of the International Insertion of Latin America and the Caribbean’ contains information that allows an analysis of China’s influence on international commerce to be performed. The data are presented in the following table. Read More »

By Adam Nelson and Allan Spessoto

“…Gross national product … counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage….Yet [it] does not allow for the health of our children, the quality of their education, or the joy of their play.”

Robert F. Kennedy Address, University of Kansas, Lawrence, Kansas, March 18, 1968

It has long been established that the way that national wealth is calculated is a poor measure of development. Gross and Net Domestic Products (GDP and NDP) positively count only the production of material goods, including weapons, cigarettes and handcuffs, but do not count some of the positive aspects of society like poetry, relationships, and music. Nor does it deduct ‘progress’ when the health of the environment, human beings or animals is negatively affected at the hand of pollution and toxic industries. Or give credit to ecosystems for the services they provide to nourish people and planet, like the rainforest’s capacity to purify air, stabilize soils and nutrients, curb global warming, and provide food, shelter, and cultural sustenance to millions of people. For many, such deductions and credits would mean having to put a dollar value on things in life that are just too sacred to be commoditized. For others, such a value is the first step to making them visible, and thus making them count, when they were taken for granted before. Throughout the month of November, Development Roast has shared with you a series of INESAD Live Research updates on how whole nations are rallying behind the call for green growth by trying to integrate the environment in national accounting calculations. Today, we start with the first of a two-part update on Latin America.

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“I’m not in this race to slow the rise of the oceans or to heal the planet.” Republican Presidential Candidate Governor Mitt Romney, an interview on “Meet the Press”, September, 2012.

This month, Development Roast has published several posts offering insights into different principles and practices of green accounting. After our overview of European experience with environmental accounting, we now turn to North America. Excluding Mexico (which will be discussed next week in the Latin America update), the two remaining countries show us quite different experiences with greening the national accounts. While Canada has shown to be an example of comprehensive implementation, the United States suspended its national project for environmental accounting in 1995 and hasn’t made large attempts to develop these accounts since. Read More »

Last night I tagged along to a dinner in Bangkok where I met a couple of executives of Thailand’s national energy company. Needless to say that, as someone with environmentalist proclivities, I was deeply interested in their ‘insider’ views of the industry, as I have learnt from experience that these can be revealing. Although, like taking a ring road bypass to dodge rush hour city traffic, all questions of the environmental impacts of such processes as fracking were skillfully avoided, several things struck me as the conversation turned to the company’s ambitions in the United States.

Fracking is a process of hydraulic fracturing that uses up to 300 tons of chemicals and injects large amounts of explosives and water to crack rock and release natural gases from deep wells. It presents an opportunity to get at previously untouchable gas and every oil and gas explorer wants a piece of the pie. However, according to the executives, the confidence with which the non-renewable industry operates is somewhat geographically determined. Read More »

“When the last tree is cut down, the last fish eaten, and the last stream poisoned, you will realize that you cannot eat money,” Native American saying

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs,” Brundtland Report

It is undeniable that our current way of life is unsustainable; If every country consumed resources and created waste at the same per person rate as the United States, we would need three to five planets to survive. Part of the problem lies in the fact that economics—the major discipline advising global and national policy—has failed to include the environment in its calculations. To rectify this problem, different methods have been proposed, so as to make predictions and come up with better ways of managing the planet’s resources without compromising the future.

Read More »

By Grahame Russel

Increasingly, over the past few years, information has been published about serious human rights violations and health and environmental harms being caused in Guatemala by (mainly) Canadian mining company operations: Goldcorp Inc., Radius Gold Inc., Tahoe Resources Inc., Hudbay Minerals, and others.

It is not possible to understand how these violations and harms occur, and will continue to occur, without understanding the political context.  Read More »