Social Conflicts in Peru

Social conflicts are once again the leading topic of conversation in Peru. The disagreements between Argentine oil company Pluspetrol and the Andoas indigenous group continue. While negotiations had resumed between the two parties, they broke down again over the weekend. The Andoas people are determined to resolve all of their complaints in one fell swoop, whereas Pluspetrol once to negotiate each issue separately. The Andoas group abandoned the talks and took over the airport again.

In related news, the Rights and Resources Initiative (RRI) released a report titled, “Communities as Counterparties: Preliminary Review of Concessions and Conflict in Emerging and Frontier Markets,” documenting and analyzing social conflicts in eight countries, including Peru. In their research, RRI found that more than 40% of the Peruvian territory has been allocated for timber, mining, and oil and gas operations. In addition, the vast majority of conflict starts at the beginning of projects. Instead of involving local communities in drawing up projects and constructing project plans, the Peruvian government and private companies present the project as a fait accompli, and conflict ensues.

Ninety-three percent of the lands allocated by the government for timber, mining, and oil and gas, are inhabited. The report explains that any time you’re selling land where people already live, conflict becomes inevitable. It stresses that it is best for everyone involved, including the private companies, to involve the local communities from the start and to win their buy-in. If you do things wrong from the start, ultimately, the costs will end up being much greater.