Resource Booms and Institutional Pathways: The Case of the Extractive Industry in Peru (Latin American Political Economy)

This book analyses the institutional development that the Peruvian state has undergone in recent years within a context of rapid extractive industry expansion. It addresses the most important institutional state transformations produced directly by natural resources growth. This includes the construction of a redistributive law with the mining canon; the creation of a research canon for public universities; the development of new institutions for environmental regulation; the legitimation of state involvement in the function of prevention and management of conflicts; and the institutionalization and dissemination of practices of participation and local consultation. Contents 7 Editors and Contributors 9 List of Figures 12 List of Tables 14 Chapter 1 Cycle of Abundance and Institutional Pathways 15 1 Economic Abundance and Social Unrest 18 2 Institutional Developments in the Cycle of Abundance: Benefits and Costs Management 24 3 Literature and Research Questions 27 4 Arguments of the Book 30 4.1 Preceding Power Distribution of State and Society Actors 30 4.2 Historical Repertoires of State and Society Action 35 4.3 The Entrepreneurship of Actors in Transnational Networks 37 5 Book Methodology and Chapters 40 References 44 Chapter 2 Deeply Rooted Grievance, Varying Meaning: The Institution of the Mining Canon 55 1 Notes for a History of the Canon’s Pre-history 58 2 1971–1983: From Nationalism to Regionalism of Natural Resources 61 2.1 Seizing Oil Income: The Loreto Regionalist Movement 62 2.2 The 1979 Constitution and Return to Democracy 63 3 1984–1993: More Lawmaking, Few Rents, and New Policy Ideology 66 3.1 The First Law on Canon 66 3.2 The New Policy Context of Structural Adjustment 68 3.3 Peruvian Neoliberalism Meets Canon: The 1993 Constitution 69 4 1994–2014: Back to Canon Struggle, New Policy Turn, and Unforeseen Supercycle Prices 70 4.1 Piura and Tumbes Mobilized, Constitution Amended 70 4.2 The 2001 Mining Canon Act 72 4.3 Unforeseen Prices, Canon Boom 74 5 Conclusions 76 References 78 Chapter 3 Extracting to Educate? The Commodities Boom, State Construction, and State Universities 82 1 Introduction 82 2 Commodity Boom, State Construction, and the Implementation Gap 85 3 The Canon and State Universities: Amounts, Relaxation, and Impact 87 4 Determinants of Failure: Voluntary Congress, Weak University, and Rigid Technocrats 95 4.1 Congress of the Republic 95 4.2 State Universities: Between Institutional Weakness and Cliques of Power 98 4.3 MEF: Spending Control Without Alternatives 102 5 Conclusion 104 References 106 Chapter 4 Fragmented Layering: Building a Green State for Mining in Peru 110 1 Legal Birth of the Green State at a Neoliberal Juncture: DGAA and CONAM Layers 114 2 Institutional Conversion at the Socio-environmental Conflict Juncture: The OSINERGMIN Layer 118 3 The Free Trade Agreement Juncture: The Ministry of Environment and OEFA Layers 123 4 Conclusion 125 References 127 Chapter 5 The Social Construction of a Public Problem: The Role of the Ombudsman in Building Institutions for Extractive Conflict 131 1 Introduction 131 2 Socio-Environmental Conflicts and the Dispute Over Territory 134 3 From Dialogue Between “Private Actors” to Dissemination of RoundTable Discussions 136 3.1 The Paradigm of Dialogue “Between Private Actors” 136 3.2 The Institutional Legacy from Below, RoundTable Discussions 139 4 The Formalization of the State Function Regarding Socio-environmental Conflict 142 5 Conclusions 152 References 158 Chapter 6 Ethnicity Claims and Prior Consultation in the Peruvian Andes 164 1 The Boom of K’ana Federations and the Building of Identity 172 2 Participation and Indigenous Politics 175 3 Where Do We Go from Here? 178 References 182 Chapter 7 Conclusions 185 1 The Complexity of Institutional Development 186 2 Comparative Political Economy 189 3 Practical Relevance 192 References 193 ANNEXES 196 Annex 1 196 Annex 2 199 Annex 3 201 Bibliography 202 Index 211 This book offers an analysis of the "truth and justice" policies implemented in Chile since the 1990s. A central assumption is that human rights policies are a form of public policy and like other public policies they are the product of the political context from which they emerged. Consequently, the nature and extent of the human rights policies designed at a given time are a reflection of the existing political environment and of the balance of political forces. Because of their partial and political nature, these "truth and justice" policies instead of satisfying the victims' demands and providing a mechanism for closure and reconciliation, as expected by many, generate new demands and new policies and actions. Needless to say, these new policies and actions will also be partially satisfactory to those pursuing justice and the truth and too damaging to those trying to protect the structure of impunity. Thus, the author does not assume that Chile's human rights historical drama is finished but rather that the 40th anniversary of the violent military coup that brought General Pinochet to power provides a powerful milestone with which to end this policy analysis This book analyses institutional development that the Peruvian state has undergone in recent years within a context of rapid extractive industry expansion. It addresses the most important institutional state transformations produced directly by natural resources growth. This includes the construction of a redistributive law with the mining canon; the creation of a research canon for public universities; the development of new institutions for environmental regulation; the legitimation of state involvement in the function of prevention and management of conflicts; and the institutionalization and dissemination of practices of participation and local consultation.-- Provided by publisher Front Matter....Pages i-xv Cycle of Abundance and Institutional Pathways....Pages 1-40 Deeply Rooted Grievance, Varying Meaning: The Institution of the Mining Canon....Pages 41-67 Extracting to Educate? The Commodities Boom, State Construction, and State Universities....Pages 69-96 Fragmented Layering: Building a Green State for Mining in Peru....Pages 97-117 The Social Construction of a Public Problem: The Role of the Ombudsman in Building Institutions for Extractive Conflict....Pages 119-151 Ethnicity Claims and Prior Consultation in the Peruvian Andes....Pages 153-173 Conclusions....Pages 175-185 Back Matter....Pages 187-206