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Extractivism is the process of extracting
natural resource , Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Se ...
s from the Earth to sell on the world market. It exists in an economy that depends primarily on the extraction or removal of natural resources that are considered valuable for exportation worldwide. Some examples of resources that are obtained through extraction include gold, diamonds, lumber and oil. This economic model has become popular in many
Latin America * ht, Amerik Latin, link=no * pt, América Latina, link=no , image = Latin America (orthographic projection).svg , area = , population = ( est.) , density = , ethnic_groups = , ethnic_groups_year = 2018 , ethnic_ ...

Latin America
n countries but is becoming increasingly prominent in other regions as well. Many factors are involved in the process of extractivism. These include but are not limited to community members,
transnational corporations A multinational company (MNC) is a corporate A corporation is an organization—usually a group of people or a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Nat ...
(TNCs) and the government. Trends have demonstrated that countries do not often extract their own resources; extraction is often led from abroad. These interactions have contributed to extractivism being rooted in the hegemonic order of global capitalism. Extractivism is controversial because it exists at the intersection where economic growth and environmental protection meet. This intersection is known as the
green economy A green economy is an economy An economy (; ) is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (econo ...
. Extractivism has evolved in the wake of
neo-liberal Neoliberalism or neo-liberalism is a terminology used to describe the 20th-century resurgence of 19th-century ideas associated with economic liberalism and free-market capitalism Capitalism is an economic system based on the private ...

neo-liberal
economic transitions to become a potential avenue for development to occur. This development occurs through stabilizing growth rates and increasing direct foreign investment. However, while these short-term economic benefits can be substantial, extractivism as a development model is often critiqued for failing to deliver the improved living conditions it promises and failing to work collaboratively with already existing programs, therefore inflicting environmental, social and political consequences. These environmental concerns include;
climate change Contemporary climate change includes both the global warming caused by humans, and its impacts on Earth's weather patterns. There have been previous periods of climate change, but the current changes are more rapid than any known event ...
,
soil depletion Soil fertility refers to the ability of soil Soil (often stylized as SOiL) is an American rock band that was formed in Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive maps of Chicago ...
,
deforestation deforestation in 1750-2004 (net loss) showing anthropogenic modification of remaining forest. File:MODIS (2020-08-01).jpg, 300px, Dry seasons, exacerbated by climate change, and the use of slash-and-burn methods for clearing tropical forest ...

deforestation
, loss of
food sovereignty Food sovereignty is a food system in which the people who produce, distribute, and consume food also control the mechanisms and policies of food production The food industry is a complex, global network of diverse business Business is th ...
, declining biodiversity and contamination of freshwater. Social and political implications include violation of human rights, unsafe labour conditions, unequal wealth distribution and conflict. As a result of this, extractivism remains a prominent debate in policy related discourse because while it sometimes delivers high economic gains in the short term, it also poses social and environmental dangers. Case studies in
Latin America * ht, Amerik Latin, link=no * pt, América Latina, link=no , image = Latin America (orthographic projection).svg , area = , population = ( est.) , density = , ethnic_groups = , ethnic_groups_year = 2018 , ethnic_ ...

Latin America
demonstrate these policy gaps.


Background


Definition

Extractivism refers to the process of removing large quantities of raw or natural materials, particularly for export. Most extracted resources are exported abroad because there is a lack of demand for these raw materials in their country of origin. The term may also be applied more broadly to refer not only to the unsustainable exploitation of minerals, metals, and fossil fuels, but also of humans, water, and land itself.


History

Extractivism, on a large scale, has been occurring for over 500 years. During the extended era while the West was colonizing Africa, Asia and the America’s, the extraction industry took off. At this time, colonizers exploited resources from their colonies to meet the demands of their home cities. The colonies typically specialized in the production and extraction of the raw materials while the colonizers manufactured the goods – the colonies were exporters and the colonizers were importers. Today, the industry remains largely unchanged in the shadows of
decolonization Decolonization (American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the United States The United States of America (USA), commonly known as the United States (U ...
. However, since then, extractivism has evolved in the wake of neo-liberal economic transitions to become a potential avenue for development to occur. This pattern has been termed “neo-extractivism”. Neo-extractivism refers to a set of growth-oriented development paths. This transition to neo-liberal economies is rooted in a nation’s subordination to an emphasis on free trade. In contrast to older forms of extractivism, neo-extractivism regulates the allotment of resources and their revenue, pushes state-ownership of companies and raw materials, revises contracts, and raises export duties and taxes. Neo-extractivism has transformed the industry into a specific growth-oriented development path. This path involves three components. First, extracting the raw natural materials. Second, exporting these extracted raw materials. Third, using the revenue from these exports to improve living conditions for those in the countries where extraction occurs. However, the third step’s success is debatable as the communities at the sites of extraction rarely experience improved living conditions. More commonly, the people at these sites experience worsened living conditions, such as in the cases of extraction from Indigenous communities in Canada’s boreal forest. Neo-extractivism has similarities to older forms of extractivism and exists in the realm of neo-colonialism.


Philosophy

Extractivism is a result of colonial thought which places humans above other life forms. It is rooted in the belief that taking from the earth will create abundance. Many Indigenous scholars argue that extractivism opposes their philosophy of living in balance with the earth and other life forms in order to create abundance. Leanne Betasamosake Simpson, a Michi Saagiig Nishnaabeg scholar and writer, compares these ideas of destruction versus regeneration in her book A Short History of the Blockade. She references the Trent Severn Waterway, a dam in Canada that caused major loss of fish, a major source of food for her people. She quotes Freda Huson in saying, “Our people’s belief is that we are part of the land. The land is not separate from us. The land sustains us. And if we don’t take care of her, she won’t be able to sustain us, and we as a generation of people will die.” She also defines extractivism in another work, stating it is “stealing. It’s taking something, whether it’s a process, an object, a gift, or a person, out of the relationships that give it meaning, and placing it in a nonrelational context for the purposes of accumulation.” The colonial action of theft goes beyond only extracting from the earth. This philosophy of entitlement is the cause behind colonization itself, and we are watching the continuation of theft in real-time through practices such as extractivism. Naomi Klein also touches on this in her book "This Changes Everything: Capitalism vs. The Climate." She writes, "Extractivism ran rampant under colonialism because relating to the world as a frontier of conquest- rather than a home- fosters this particular brand of irresponsibility. The colonial mind nurtures the belief that there is always somewhere else to go to and exploit once the current site of extraction has been exhausted."


Actors

Transnational corporations (TNCs) are a primary actor in neo-extractivism. Originally, as TNCs began to explore raw material extraction in developing countries they were applauded for taking a risk to extract high-demand resources. TNCs were able to navigate their way into a position where they maintained large amounts of control over various extraction-based industries. This success is credited to the oftentimes weak governance structure of the resource dependent economies where extraction is taking place. Through complex arrangements and agreements, resources have slowly become denationalized. As a result of this, the government has taken a “hands-off” approach, awarding most of the control over resource enclaves and the social responsibility that accompanies them to TNCs. However, the government still plays an important role in leading development by determining which TNCs they allow to extract their resources and how thorough they are when it comes to enforcing certain standards of social responsibility.


Resources and techniques

Some resources that are obtained through extraction include but are not limited to gold, diamonds, oil, lumber and food. This occurs through techniques such as
mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. These deposits form a mineralized commodity that is of economic interest to t ...

mining
,
drilling Drilling is a cutting Cutting is the separation or opening of a physical object, into two or more portions, through the application of an acutely directed force In physics Physics (from grc, φυσική (ἐπιστήμη), p ...

drilling
and
deforestation deforestation in 1750-2004 (net loss) showing anthropogenic modification of remaining forest. File:MODIS (2020-08-01).jpg, 300px, Dry seasons, exacerbated by climate change, and the use of slash-and-burn methods for clearing tropical forest ...

deforestation
. Resources are typically extracted from developing countries as a raw material. This means that it has not been processed or has been processed only slightly. These materials then travel elsewhere to be turned into goods that are for sale on the world market. An example of this would be gold that is mined as a raw mineral and later in the supply chain manufactured into jewellery.


Impacts of extractivism


Economic benefits

Neo-extractivism is seen as an opportunity for successful development in many areas of the developing world. Demand for extracted resources on the global market has allowed this industry to expand. Since the year 2000, there has been a substantial rise in global demand and value for raw materials – this has contributed to steadily high prices. Neo-extractivism has therefore been seen as a tool for economically advancing developing countries that are rich in natural resources by participating in this market. It is argued that the emergence of this industry in the neo-liberal context has allowed extractivism to contribute to stabilizing growth rates, increasing direct foreign investment, diversifying local economies, expanding the middle class and reducing poverty. This is done by using surplus revenue to invest in development projects such as expanding social programs and infrastructure. Overall, extraction based economies are seen as long-term development projects that guarantee a robust economic foundation. It has created a new hegemonic order that closely intertwines with the dominant capitalist system of the world. The green economy has emerged as an economic model in response to the arising tensions between the economy and the environment. Extractivism is one of the many issues that exist at this intersection between the economy and the environment.


Environmental consequences

One of the main consequences of extractivism is the toll that it takes on the natural environment. Due to the scale extraction takes place on; several renewable resources are becoming non-renewable. This means that the environment is incapable of renewing its resources as quickly as the rate they are extracted at. It is often falsely assumed that technological advancements will enable resources to renew more effectively and as a result make raw material extraction more sustainable. The environment often must compensate for overproduction driven by high demand. Global
climate change Contemporary climate change includes both the global warming caused by humans, and its impacts on Earth's weather patterns. There have been previous periods of climate change, but the current changes are more rapid than any known event ...
,
soil depletion Soil fertility refers to the ability of soil Soil (often stylized as SOiL) is an American rock band that was formed in Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive maps of Chicago ...
,
loss of biodiversity Biodiversity loss includes the extinction of species worldwide, as well as the local reduction or loss of species in a certain habitat, resulting in a loss of biological diversity. The latter phenomenon can be temporary or permanent, depending on w ...
and
contamination of fresh water Contamination is the presence of a constituent, impurity Impurities are chemical substance A chemical substance is a form of matter In classical physics and general chemistry, matter is any substance that has mass and takes up space by h ...
are some of the
environmental issues Environmental issues are harmful effects of human activity on the biophysical environment. Environmental protection is a practice of protecting the natural environment The natural environment or natural world encompasses all life, living an ...
that extractivism contributes to. As well, extraction produces large amounts of waste such as toxic chemicals and heavy metals that are difficult to dispose of properly. To what degree humans have a right to take from the environment for developmental purposes is a topic that continues to be debated.


Social impacts

In addition to the environmental consequences of extractivism, social impacts arise as well. Local communities are often opposed to extractivism occurring. This is because it often uproots the communities or cause environmental impacts that will affect their
quality of life Quality of life (QOL) is defined by the World Health Organization The World Health Organization (WHO) is a list of specialized agencies of the United Nations, specialized agency of the United Nations responsible for international public heal ...

quality of life
. Indigenous communities tend to be particularly susceptible to the social impacts of extractivism. Indigenous peoples rely on their environment to sustain their lifestyles as well as connect with the land in spiritual ways. Extractivist policies and practices heavily destroy the land as explained above. This changes game populations, migration patterns for animals, pollutes rivers and much more. Doing so, does not allow Indigenous populations to practice their culture and ways of life because the environment they depend on to hunt, fish etc. is drastically changed. In addition, this destruction hinders the practice of Indigenous culture and creation of knowledge making it more difficult for Indigenous individuals to pass down their traditions to future generations. While employment opportunities are brought to local communities as a pillar of neo-extractivism projects, the conditions are often unsafe for workers. TNCs can take advantage of more lenient health and safety conditions in developing countries and pay inadequate wages in order to maximize their profits. As well, foreigners usually fill the highest paying managerial positions, leaving local community members to do the most labour intensive jobs. Frequently, the enclaves where extractivism occurs are distanced from government involvement, therefore allowing them to avoid being subjected to the enforcement of national laws to protect citizens. This can result in widespread human rights violations. It is argued that prolonged social transformation cannot thrive on export dependent extractivism alone therefore making neo-extractivism a potentially flawed development method on its own.


Political implications

Due to the fact that the state is a prominent actor in the extractivism process it has several political implications. It pushes the state into a position where they are one of the central actors involved in development when recent decades have seen a shift to
civil society Civil society can be understood as the "third sector" of society, distinct from government A government is the system or group of people governing an organized community, generally a State (polity), state. In the case of its broad ...
organizations. As well, the relationship between the State providing the natural resources and the TNCs extracting them can be politically complex sometimes leading to corruption. Likewise, as a result of government involvement, this process as a development project becomes politicized. The increasing demand for raw materials also increases the likelihood of conflict breaking out over natural resources. Extractivism near or on Indigenous land without the permission of Indigenous peoples begins to threaten the land based self-determination of Indigenous groups. Conflicts between Indigenous peoples, corporations and governments are occurring around the world. Because many of the extractivist practices take place where Indigenous communities are located, the conflicts are making these landscapes politicized and contested. The conflicts are driven because Indigenous lives are put in jeopardy when they are dispossessed, when they lose their livelihoods, when their water and land is polluted and the environment is commodified.


Anti-extractivist activism

Because extractivism so often has negative implications for the Indigenous communities it affects, there is much resistance and activism on their end. For example, from the 1980s and through today we can see examples of “extrACTIVISM”, a term coined by author Anna J. Willow. In protest of the logging project on their land, the Penan of Borean Malaysia claimed it was a case of civil disobedience as a means to end it and succeeded. In ‘89, Kayapó peoples stood up against the building of dams on their land in Pará, Brazil, causing their funding to be stopped and successfully ending the project. The U’wa people of Colombia ended oil extraction on their land through blockade activism from the 90s through 2000. Just this year, the Keystone Pipeline that runs through Canada and the U.S. was put to a halt due to Indigenous activism. Its construction officially ended in June of 2021. Despite the difficulties they face in protesting these projects, their resilience continues to flourish and oftentimes they succeed in ending extractivism on their land. Another example of this activism is the Ponca tribe planting corn in the path of the Keystone Pipeline as an act of resistance. Aside from active protesting,
Tribal sovereignty 300px, Map of the contiguous United States with reservation lands excluded as of 2003 Tribal sovereignty in the United States is the concept of the inherent authority of indigenous tribes to govern themselves within the borders of the Uni ...
is essential in their goal of protecting their own land.


Case studies


United States: The Dakota Access Pipeline

The Dakota Access Pipeline is an oil pipeline running from northern North Dakota through southern Illinois. The construction and utilization of this pipeline has been heavily debated within U.S. politics; the Indigenous communities of the Standing Rock Sioux and Cheyenne River Sioux tribes have actively protested its existence as it could potentially pollute their waterways and will definitely alter their land. There are also burial grounds and sacred sites on the land that the pipeline destroys. Protestors occupied the area for close to a year before they were forced to evacuate by U.S. law enforcement. During the peaceful protests, police responded with violent force, utilizing dogs, pepper spray, and water cannons against the activists. Hundreds of people were arrested, hundreds were injured, and there was one death during these months. Though former president Barack Obama ordered a temporary stop to the pipeline for “review”, the decision was reversed by federal courts and he didn’t do anything past his initial attempt to stop it. Donald Trump ordered the utilization of the pipeline to continue just a couple of months later.


Peru: mega-mining in Cajamarca

The instance of the mega-mining project in
Cajamarca Cajamarca (), also known by the Cajamarca Quechua Cajamarca Quechua is a variety of Quechua languages, Quechua spoken in the districts of Chetilla District, Chetilla, Los Baños del Inca District, Baños del Inca and Cajamarca District, Cajamarc ...
,
Peru , , image_flag = Flag_of_Peru.svg , image_coat = Escudo_nacional_del_Perú.svg , other_symbol = Great Seal of the State , other_symbol_type = National seal , national_motto ...

Peru
provides an illustrative example of the extractive dynamic of raw material in Latin America. In 2011, a TNC began a project called
Yanacocha Yanacocha (Cajamarca Quechua Cajamarca Quechua is a variety of Quechua languages, Quechua spoken in the districts of Chetilla District, Chetilla, Los Baños del Inca District, Baños del Inca and Cajamarca District, Cajamarca (Porcón) in the Per ...
, installing a mega-mining project in Cajamarca. The government favoured this project and saw it as an opportunity for development therefore giving large amounts of control to the TNCs extractive procedures. Local community members (known as peasant populations) expressed their concern for the project given the threat of contamination to their main source of water. Leaders of Yanacocha promised the creation of 7,000 jobs and development projects that would work collaboratively with and be beneficial for the community. The TNC said they would fail to launch the project if they could not do so on socially and economically responsible terms. However, this guarantee failed to be actualized and violent conflict broke out as a result. The regional level and national level government had opposing opinions on the development project and tension was formed between the two parties as protests broke out injuring more than 20 people and killing 5. Unlike the national government, the regional government sided with the community protestors and rejected the Cajamarca mining project. In the end, the national government overrode the concerns of the community and pushed forward with the Yanacocha mega-mining project, leaving the task of social responsibility to the corporations.


Ecuador: oil exploitation in Yasuni National Park

Many Amazonian communities in
Ecuador Ecuador ( ; ; Quechua Quechua may refer to: *Quechua people, several indigenous ethnic groups in South America, especially in Peru *Quechuan languages, a Native South American language family spoken primarily in the Andes, derived from a c ...

Ecuador
are opposed to the national governments endorsement of oil extraction in
Yasuni National Park Yasuni National Park () is in Ecuador Ecuador ( ; ; Quechua Quechua may refer to: *Quechua people, several indigenous ethnic groups in South America, especially in Peru *Quechuan languages, a Native South American language family spoken ...
. The Spanish corporation . and American corporation Chevron-Texaco have both attempted to make investments to extract oil from the reserves in Yasuni. Various civil society organizations fought against the implementation of this project because of the parks valuable biodiversity and their concerns were answered. The Ecuadorian state worked collaboratively with these interest groups and launched a project where members of the international community could donate to a fund that was put in place to compensate for the lost income that an oil reserve would have generated. This totalled US$3.5 billion, equal to 50% of the revenue that would have been produced by the oil extraction project. Through this initiative, the wishes of the activists and community members were validated without compensating economic growth. Since then, the national government has taken these concerns even further, redesigning the constitution to give the state more autonomy over their natural and raw materials. In addition, an overall mandate of living well has been adopted for guiding neo-extractivism projects in the future. These two case studies represent examples of both successful and impaired approaches to neo-extractivism in Latin America. They can be used to illustrate the inter-disciplinary complexities of extractivism by illustrating the economic, environmental, social and political layers to the topic. Increasingly, policy tools such as corporate social responsibility mechanisms and increased government involvement are being used to mitigate the negative implications of neo-extractivism and make it a more effective development model.


Canada: Logging and Grassy Narrows First Nation's road blockade

Extractivism policies and procedures are present in Canada as well. Canada has many natural resources because of its large land mass and biodiversity. The forest sector in Canada contributed to 19.8 billion or 1.25 per cent of Canada’s GDP in 2013. The
Boreal forest Taiga (; rus, тайга́, p=tɐjˈɡa; relates to Mongolic and Turkic Turkic may refer to: * anything related to the country of Turkey * Turkic languages, a language family of at least thirty-five documented languages ** Turkic alphabets (di ...
covers 28 per cent of Canada’s land and within that 70 per cent of Indigenous communities live in these areas. Logging efforts in the Boreal forest are encouraged to be economically efficient by clearcutting.
Clearcutting Clearcutting, clearfelling or clearcut logging is a forestry Forestry is the science and craft of creating, managing, playing, using, conserving and repairing forests, woodlands, and associated resources for human and environmental benefits ...
means to remove all trees from an area at one time. This has led to loss of biodiversity,
habitat fragmentation Fragmentation and destruction of Great Ape habitat in Central Africa, from thGLOBIOand GRASP projects (2002). Areas shown in black and red delineate areas of severe and moderate habitat loss, respectively. Habitat fragmentation describes the emer ...
and reduction, soil erosion and carbon release contributing to climate change.
Asubpeeschoseewagong First Nation Asubpeeschoseewagong First Nation (also known as Grassy Narrows First Nation or the ''Asabiinyashkosiwagong Nitam-Anishinaabeg'' in the Ojibwe language) is an Ojibwe First Nations The First Nations (french: Premières Nations ) are the lar ...
, also known as Grassy Narrows First Nation is located in northwestern Ontario near the town of
Kenora Kenora (), previously named Rat Portage (french: Portage-aux-Rats), is a small city situated on the Lake of the Woods in Ontario, Canada, close to the Manitoba boundary, and about east of Winnipeg by road. It is the seat of Kenora District. The ...
. In 1873, the Anishinaabe people participated and negotiated in
Treaty 3 Treaty 3 was an agreement entered into on October 3, 1873, by Chief Mikiseesis (Little Eagle) on behalf of the Ojibwe The Ojibwe, Ojibwa, Chippewa, or Saulteaux are an Anishinaabe people in what is currently southern Canada Canada is a ...
with the Canadian government. The terms of this treaty are extremely contested by the Anishinaabe people and the Canadian government as both groups disagree on its interpretation and assumptions. The Canadian government at the time, wanted to expand farther into the West for more agricultural settlements. This treaty was seen as a way to secure and create a route through northwestern Ontario and further Canadian nation building. Anishinaabe leaders saw the treaty as a peace-and-friendship agreement. The Anishinaabe people wanted to share the land to ensure its survival but not surrender it according to oral histories and the unofficial versions of Treaty 3. The Canadian government contests this stating the Anishinaabe right to land was surrendered once the treaty was signed. In December 2002, people of Grassy Narrows grew tired of seeing their environment being destroyed and Treaty 3 being violated in their eyes. They began Canada’s longest road blockade as a way to protest the
clearcutting Clearcutting, clearfelling or clearcut logging is a forestry Forestry is the science and craft of creating, managing, playing, using, conserving and repairing forests, woodlands, and associated resources for human and environmental benefits ...
that was proposed near their community. In the past, the community has been affected by the flooding of ancestral burial grounds because of hydroelectric dams. Most notably, the community were affected by mercury contaminated water from a pulp and paper mill. Since the 1990s logging rates near the community had accelerated which caused community members to act. Working with non-Indigenous environmentalists and human rights advocates, they began media campaigns to draw attention to their protest. The site of resistance was on the Ontario Provincial Highway 671 near Slant Lake. However, the blockade went against what the Grassy Narrow’s chief and council wanted. They wanted to stop the logging efforts by working within the federal system and use the
Indian act The ''Indian Act'' (, long name ''An Act to amend and consolidate the laws respecting Indians'') is a Canadian act of Parliament that concerns Indian Register, registered Indians, their bands, and the system of Indian reserves. First passed in ...
. Anti-clearcutting activists and community members continued to support the road blockade for years. Many think it is a clear violation of treaty rights and the sovereignty of the Anishinaabe nation. In 2008, the Ontario government began negotiating a resolution to the conflict, which ended the license for logging companies. In 2014, the provincial government stated they would monitor logging companies to make sure they adhered to the new proposed rules. However, many in the community remain skeptical.


References


Bibliography

* Acosta, Alberto. “Extractivism and neo-extractivism: two sides of the same curse.”Beyond Development: Alternative Visions From Latin America, (2013): 61–87. * * * * * Klein, Naomi. “How Will Everything Change Under Climate Change?” ''The Guardian.'' (2015): https://www.theguardian.com/environment/2015/mar/08/how-will-everything-change-under-climate-change. * * {{cite journal , last1 = Reikoff , first1 = L , year = 2014 , title = Legislating corporate social responsibility: expanding social disclosure through the resource extraction disclosure rule , url = http://heinonline.org.subzero.lib.uoguelph.ca/HOL/Page?public=false&handle=hein.journals/mnlr98&page=2435&collection=journals# , journal = Minnesota Law Review , volume = 89 , issue = 6, pages = 2435–78 Natural resources