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Where We Mine: Resource Politics in Latin America

Thea Riofrancos interviewed by Annabelle Dawson - Green European Journal, August 12, 2021

As the drive to expand renewable energy capacity speeds up, there is a rush for lithium and other materials around the world. What will the expansion of rare earth mining in Latin America mean for the indigenous communities and workers who have historically borne the harms of extractivism? Thea Riofrancos, author of Resource Radicals (Duke University Press, 2020), explains how the energy transition in the Global North risks being anything but just without structural changes to supply chains and the governance of extractive industries.

Annabelle Dawson: Your work explores the politics of resource extraction in Latin America, from oil in Ecuador to lithium in Chile. How do you define resource politics or extractivism?

Thea Riofrancos: Resource politics refers to any social or political activity – whether conflict, collaboration, political economy or social mobilisation – that’s attributed to the extraction of resources, and in some cases to stop resource extraction. Scholarship tends to see resource politics as primarily related to elites like state officials and corporate actors. This is pivotal, for example, to the concept of the resource curse, which holds that dependency on resource rents leads to authoritarianism. However, this focus overlooks a range of resource politics such as social movements that oppose extractive projects or demand better regulation and indigenous rights.

Extractivism is a little thornier to define. My research has explored how in Latin America social movements, activists and even some bureaucrats in the case of Ecuador began to use this term to diagnose the problems that they associated with resource extraction. This happened in the context of the 2000 to 2014 commodity boom – a period of intense investment in resource sectors driven by the industrialisation of emerging economies like China – and the Left’s return to power across Latin America during the “Pink Tide”. Activists, left-wing intellectuals and some government officials began to see extractivism as an interlocking system of social and environmental harm, political repression, and corporate and foreign capital domination. So, the concept originates from political activity rather than scholarship [read more about extractivism in Latin America].

We tend to associate resource extraction with notoriously dirty commodities like coal, oil, and certain metals. How are green technologies implicated in all of this?

The transition to renewable energies is often thought of as switching one energy source for another: fossil fuels for renewables. That’s part of it, but this transition fits into a much bigger energy and socio-economic system. You can’t just swap energy sources without rebuilding the infrastructures and technologies required to harness, generate, and transmit that energy. All this has a large material footprint and requires materials such as lithium, cobalt, nickel and rare earth metals [read more about the central role and impact of these rare metals]. More traditional extractive sectors like copper are also very important for decarbonisation.

One very bad outcome would be if the harms related to fossil fuel capitalism were reproduced in new renewable energy systems, subjecting particular communities to the harms of resource extraction in the name of fighting climate change. We need a new energy system quickly – especially in the Global North given the historic emissions of the US and Europe. But in this rush, there’s a real risk of reproducing inequalities and environmental damage. This is especially so with some mining sectors where a boom in the raw materials for green technologies like wind turbines, electric vehicles and solar panels is predicted.

Green Economy, Green Capitalism? The Case Against The Case for Climate Capitalism

By Nick Grover - The Bullet, May 14, 2021

Even now, with a ten-year timeframe left for action, it’s rare for the climate crisis to be treated as the emergency it is. So, credit where due to Tom Rand. In his The Case for Climate Capitalism: Economic Solutions for a Planet in Crisis (Toronto: ECW Press, 2020), Rand calls for a rapid transition away from fossil fuels and toward renewables; he blames the political and business elite for the mess and says they will have to pay the price as markets turn against oil and assets are stranded; he even advocates for expansion of public transit. Where the book gets less refreshing is Rand’s tone toward the people who have been saying these things all along: his secondary enemy, leftists fusing demands for climate action with calls for economic justice.

Rand’s Case for Climate Capitalism aims to preserve and “co-opt” the forces of capitalism to usher in a transition toward green tech. His case is presented as simple pragmatism: the emergency we face affords us no time to discuss economic reforms; we must unite and do what works instead of holding out for a perfect system. His concern is that left ideas like the Green New Deal and Leap Manifesto – which wed strong climate action with job guarantees, labour protections, taxing the rich, and expanding social programs – alienate conservatives and the business class when we need them in our coalition to save the planet.

Green Energy, Green Mining, Green New Deal?

Ecosocialismo: Envisioning Latin America’s Green New Deal

A Just Transition to a Fair and Sustainable Society or Healthy Green Growth?

By Cynthia Kaufman - Common Courage, February 18, 2021

The main goal of Norwegian economist Per Espen Stoknes’ new book, Tomorrow's Economy: A Guide to Creating Healthy Green Growth, is to offer the concept of healthy green growth as an alternative to simple GDP growth. Stoknes teaches in a business school, and the economic tools he creates around this concept will probably be very helpful for businesses wanting to measure if, as they create profit, they are also creating environmental and social wellbeing. But for those of us working to shift how we think about the economics of wellbeing, this book is a step backwards in an already rich conversation.

Mainstream economists insist that the way to measure the health of an economy is in growth in Gross Domestic Product (GDP), or how much is bought and sold within an economy. Stoknes by proposing a better form of growth is engaging with the mainstream of Economics, hoping to move it in a direction that takes human and ecological wellbeing into account, while still maintaining the core of its approach.

There are many economists doing work to shift the discipline more significantly away from a focus on growth. They have produced an impressive body of literature that this book would have done well to take more seriously. These economists are developing tools and conceptual frameworks for increasing human wellbeing while maximizing ecological health. Much of that work takes seriously the devastating impacts current trajectory has on the poor in the Global South and on poor and racially marginalized communities in the Global North. In her book Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist, Kate Raworth uses the image of a doughnut to talk about the twin problems of alleviating poverty and staying within the world’s ecological limits to outline the “sweet spot” of what an economy needs to aim at achieving. Raworth is joined by many people doing important work in this area such as Amartya Sen, Juliet Schor, Robert Bullard, Michael Pollan, and Clair Brown.

Ecosocialism is the Horizon, Degrowth is the Way

Jason Hickel interviewed by Samuel Miller-McDonald - The Trouble, February 11, 2021

“Degrowth” means many things to many people. To most, it probably doesn’t mean much beyond an antonym to “growth,” the process of getting larger or more complex. To some detractors, the term represents a scary violation of the imperative to increase GDP annually, what’s now a holy sacrament to policymakers and economic pundits (though less so to actual academic economists, who are more ambivalent). To its less pedantic and more hysterical detractors, it’s a ploy to take away everyone’s Hummers and return to a mushroom-foraging-based economy. 

At its most distilled, “degrowth” refers to a process of reducing the material impact of the economy on the world’s many imperiled ecologies, abandoning GDP as a measurement of well-being, and forging an equitable steady-state economy.

Although the concept of placing limits to economic growth is not very new, having been articulated by environmentalists several decades ago—most famously by the Club of Rome in 1972—the more recent iteration, only just over a decade old, emerges from the French décroissance. Given that the community and scholarship is so young, there’s still a lot of debate around some of the fundamentals of what the term means, and what it should mean. Some who believe in the principles recoil at the term itself: Noam Chomsky has said “when you say ‘degrowth’ it frightens people. It’s like saying you’re going to have to be poorer tomorrow than you are today, and it doesn’t mean that.” But many degrowth defenders, one of the most prominent being ecological economist Giorgos Kallis, stand by it and see value in such a unifying notion. 

Even so, there lurks some danger in all such terms and political communities, like socialism or democracy, as I have warned elsewhere of the perennial risk of being co-opted and ill-defined by bad-faith actors. If the degrowth critique goes only as far as targeting economic growth, or even general anticapitalism, there’s little intrinsic to it to stop a right-wing authoritarian program from co-opting degrowth rhetoric to justify imposing authoritarianism, or giving cover to cynical Global North states to demand degrowth of the Global South while continuing to disproportionately consume and pollute. Degrowth, if it is to get traction and if that traction is to be desirable, needs to be abundantly clear about what it stands for and what it rejects. Luckily, we have just the book to offer this much needed clarity. 

Economic anthropologist Jason Hickel is among the most eloquent advocates of degrowth, and has been intimately involved in the community’s attempt to stake out a useful, clear meaning for the term and pathway to integrating its principles into a coherent program. Hickel’s latest book, Less is More: How Degrowth Will Save the World published in August 2020 (with a paperback edition released this month), offers an abundance of facts, concepts, and research alongside a passionate defense of ecocentric and humanistic values. Hickel has achieved something many writers of popular nonfiction seek in vain: a high density of ideas and data delivered in a light, enjoyable narrative prose. The book makes a very strong case for a topic in need of strong cases. And Less Is More arrives in good company: degrowth advocate Timothée Parrique counted 203 essays, 70 academic articles, and 11 books on degrowth published in 2020. 

Some bad-faith commentators have attempted to paint degrowth as dressed-up primitivist austerity, intrinsically harmful to the Global South, but Hickel does a persuasive job emphasizing that degrowth actually means the opposite. He musters an army of historical and contemporary data, anecdotes, and theory to argue definitively that an equitable degrowth scenario is more likely to increase material abundance and resource access. If the ideology of growthism offers an ethic of constant amoral expansion and exploitation, degrowth(ism) offers a more restrained ethic that values an abundance of time, leisure, love, and equality over concentrated wealth and distributed waste. 

While the book explores the moral imperative for controlled degrowth, Hickel is equally comfortable arguing for degrowth from a standpoint of a purely rational approach to fundamentally shifting an economy that is currently heating the world to death, guaranteeing centuries of mass death and destruction. The only way to slow the rapid race to collapse civilization and accelerate extinctions is to stop the omnicidal political economy that rules the globe. Given the natural limits that thermodynamics and terrestrial ecologies impose on human economies and non-human populations, degrowth is inevitable: it’s just a matter of deciding whether human agency will play a positive, benevolent role in the process, or continue to maximize the chaos and violence involved. I asked Dr. Hickel via email about some of the major challenges to achieving degrowth reforms and some important peripheral issues. Here is our discussion:

Public Finance for the Future We Want (Lavinia Steinfort and Satoko Kishimoto)

By Lavinia Steinfort and Satoko Kishimoto (editors) - Transnational Institute, June 2019

Do you wish to see regenerative, equitable and democratic economies, built with collective power? We believe it is not only necessary but also very possible.Today’s economic system, fueled by an extractivist logic and prone to crises, has reignited and enflamed old monsters of racism, misogyny and other forms of fear and hate. Economic alternatives are needed now more than ever.

This book is about financial alternatives, drawn from real-world examples. It highlights the kinds of models that could become the new normal, building the basis for a democratically organized and life-sustaining future.Before the 2008 global financial crisis, the mantra was ‘there is no alter-native’ to the extractive economic model that has fostered excessive inequality and ecological destruction. Post-crisis, big banks were rescued and the blame misdirected to public spending.

This justified evermore harsh austerity measures, reinforcing the story that the public sector must rely on private finance to solve these ‘collaterals’.More than 10 years later, we know that private finance has not only failed to address these problems, it has intensified them. Civil society needs to unite behind systemic solutions before another financial bubble bursts.

Read the report (PDF).

Decent work in the management of electrical and electronic waste (e-waste)

By staff - International Labour Organization, April 2019

At its 329th Session (March 2017), the Governing Body of the International Labour Office decided that a Global Dialogue Forum on decent work in the management of electrical and electronic waste (e-waste) would be held in Geneva. During its 334th Session (October– November 2018), it decided that the date of the meeting would be 9–11 April 2019 and that all interested governments should be invited. Eight Employer and eight Worker participants would be appointed on the basis of nominations made by their respective groups in the Governing Body, and selected intergovernmental organizations and non-governmental organizations would be invited as observers.

The purpose of the Global Dialogue Forum is to discuss current and emerging issues and opportunities related to the promotion of decent work in the management of e-waste, with the aim of adopting points of consensus, including recommendations for future action by the International Labour Organization (ILO) and its Members. Taking place in the centennial year of the ILO, the Forum is also an opportunity to discuss more broadly the future of work in the circular economy.

Read the report (Link).

A Vision for a Sustainable Battery Value Chain in 2030: Unlocking the Full Potential to Power Sustainable Development and Climate Change Mitigation

By staff - World Economic Forum, 2019

The need for urgent and more intensive actions against climate change is broadly recognized. In support of this agenda, this report presents a simple yet profound vision: a circular, responsible and just battery value chain is one of the major near- term drivers to realize the 2°C Paris Agreement goal in the transport and power sectors, setting course towards achieving the 1.5°C goal if complemented with other technologies and collaborative efforts.

With the right conditions in place, batteries are a systemic enabler of a major shift to bring transportation and power to greenhouse gas neutrality by coupling both sectors for the first time in history and transforming renewable energy from an alternative source to a reliable base. According to this report, batteries could enable 30% of the required reductions in carbon emissions in the transport and power sectors, provide access to electricity to 600 million people who currently have no access, and create 10 million safe and sustainable jobs around the world.

This report provides a quantified foundation for a vision about how batteries can contribute to sustainable development and climate change mitigation over the coming decade. The analysis underscores that this opportunity can only be achieved sustainably through a systemic approach across social, environmental and economic dimensions. It outlines key conditions and presents recommendations to realize this potential.

Read the report (Link).

Metals in the Circular Economy

By Davide Patteri and Frédéric Simon - Euractiv, November 2018

Vanadium, borate, bismuth, gallium – they may sound like planets from a science fiction movie, but in fact they are some of the most critical elements of the European Union’s economy.They are all on the European Commission’s ‘critical raw materials list’.

The 27 materials on the list are considered both very important to the EU economy and of worrying scarcity. They therefore benefit from specific measures to guarantee their sourcing and encourage their reuse.

These metals are essential components in the manufacturing of smart phones, electric car batteries and other green technologies. In this special report, EURACTIV looks at how the EU’s circular economy strategy can help secure Europe’s supply of critical raw materials in a sustainable way.

Read the report (PDF).

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