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Article

7 Aug 2020

Author:
Brookings (USA)

Latin America: Reports illustrate negative impacts of corruption across the natural resource value chain on indigenous people

"Uncommon ground: The impact of natural resource corruption on indigenous peoples", 7th August 2020

...Around the world, the rights of indigenous peoples are often in tension with the economic interests of extractive companies and governments. Many indigenous communities live in biodiverse and resource-rich regions that also have revenue-generating potential for extracting oil, gas, or other resources. Resource governance problems are not, of course, unique to indigenous communities; however, abiding legacies of colonization and modern-day exploitation and expropriation have posed distinctive threats to indigenous communities. On the other hand, growing international and national recognition of indigenous rights can serve as a springboard for future action.

In a recently released report, the LTRC project team examined corruption risks across the natural resource value chain (NRVC). The NRVC encompasses the entire life cycle of resource extraction, from the decision to extract natural resources, the contracts governing the terms of extraction, the production itself, and the revenue generated by extraction and spent by governments.

At this first step of the NRVC—the decision to extract—indigenous peoples are, too often, left out of positions of decision-making authority. A norm of consultation between governments, industry actors, and indigenous peoples prior to the start of potentially disruptive projects has largely taken root, especially in Latin America; however, the more rigorous standard of consent by tribes and other indigenous groups before extraction begins has yet to take hold in most jurisdictions...