Thursday, April 23, 2015

Brazil's trouble with social conflicts

Colombia and Peru do not have a monopoly on the famous “social conflicts” between extractive sector companies and the local communities in the predominantly rural areas where these businesses operate. On Tuesday, the Washington Post published an investigative piece on one Brazilian town’s experiences with the dark side of rapid, unchecked industrial development.

The piece details the interactions between the community of Piquia de Baixo and the nao Vale mining company, which supplies iron ore to pig iron plants in the town and which controls the railroad that transports the iron ore supplies. The most pressing concern for the locals is pollution. According to a 2011 report by the International Federation of Human Rights, 77% of households in the town had someone with an acute health concern. Vale avoids responsibility for the pollution, saying that the fault lies with the pig iron plants, all while it looks to build a second train line to bring even more ore to the plants.

The residents feel powerless to advance their own interests through negotiations or conversations with the mining company. The author recounts that past agreements and solutions with Vale have not been respected, with profit-bearing infrastructure projects given much more priority than infrastructure projects that could benefit the Piquia de Baixo community.

The locals have found that their only recourse is to blockade the tracks and protest; they have no other choice. Of course, this approach is not any more effective than the others, and simply leads to more conflict.

This zero-sum approach to negotiations between Vale and the local community does not benefit the local community or the company’s bottom line. At its heart is a communications problem. The mining company appears to have lost the support of the local community, and appears unable to win it back.



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