Brown University

Extracting from the Extractors: The Politics of Private Welfare in the Peruvian Mining Industry

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Abstract:
As a result of global and domestic processes unleashed over the last thirty years, many global extractive companies have created special funds directed to contribute to the social development of the populations living near their operations. These considerable funds are under the direct control of extractive companies and are showcased as part of the Corporate Social Responsibility (CSR) agenda promoted by the industry. Despite the potential positive developmental impacts they may have, the process of fund allocation is far from ‘politics-free’. In this dissertation I explore the distributional politics behind the allocation of extractive companies’ social funds on fence line populations. The empirical testing ground of this project is a controlled comparison of two large-scale mining companies operating in Peru, Southern Copper Corporation and Minera Barrick Misquichilca, which have two operations each: Toquepala, Cuajone, Pierina and Lagunas Norte. This research design allows for contrasts between companies – to explore the differences in corporate characteristics – and within companies – to investigate the diverse local configurations that companies encounter on the ground. Evidence from 14 months of fieldwork at these four mining localities suggests two broad conclusions. First, even though both companies have adopted a similar CSR rhetoric, their CSR practices on the ground differ substantially. To a large extent, the level and patterns of fund allocation respond to the institutionalization of processes that translate the ambiguous CSR rhetoric into daily routines. Second, despite the power of mining companies and the low organizational density of fence line populations, I find that local residents can influence the size and selection of social investments if they are able to adopt globally-relevant frames to make claims on companies. Through a framework that concentrates on the interactions between field company officials and local residents, I show the mismatch between CSR rhetoric and actual performance and document the new, powerful strategies that local residents can deploy to increase their leverage over large extractive companies. These findings support the analytical value of qualitative, field-based research to understand the encounters between extractive companies and local populations.
Notes:
Thesis (Ph.D. -- Brown University (2012)

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Perla, Cecilia, "Extracting from the Extractors: The Politics of Private Welfare in the Peruvian Mining Industry" (2012). Political Science Theses and Dissertations. Brown Digital Repository. Brown University Library. https://doi.org/10.7301/Z0JQ0ZBB

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