Ponencia en el 2015 Biennial Conference on The Business and Economics of Peace (10-11 de abril), el cual fue organizado por la Escuela de Negocios (Kogod School of Business) de American University (Washington D.C., USA) y el Instituto para la Economía y la Paz (IEP - Institute for Economics and Peace).

1. EXTRACTIVE INDUSTRIES & CONFLICT
PREVENTION: SOCIAL INTERVENTION MODEL
FOR SOUTH AMERICA
Sandra Carrillo Hoyos
Pontificia Universidad Católica del Perú, Communications Department

2. EXTRACTIVE POTENTIAL IN THE REGION
1° copper
3° molybdenum
7° silver
9° nickel
11° coal
3° silver
3° copper
3° tin
3° zinc
4° lead
4° molybdenum
6° gold
3° iron
5° tin
7° nickel
12° oil
4° tin
6° silver
8° lead
11° oil
CHILE BRAZIL PERU COLOMBIABOLIVIA VENEZUELA
The performance of
extractive industries
has allowed these
countries to become
the top producers in
the world

3. SOCIO-ENVIRONMENTAL UNVIABILITY
Community of Caimanes against Los Pelambres Company Vélez and Landázuri Municipalities against coal mining
Chile, Coquimbo Colombia, Santander
Perú, Arequipa
Cajamarca Province against Conga Project – Newmont Mining
Bolivia
Indigenous groups claiming against North Energy Company
Brazil, Pará

4. Mistrust
National
and
Subnational
government
Extractive
company
Community
and civil
society
groups
TENSIONS BETWEEN STAKEHOLDERS
Uncertainty

5. Mistrust
National
and
Subnational
government
Extractive
company
Community
and civil
society
groups
TENSIONS BETWEEN STAKEHOLDERS
Uncertainty
Asymmetries

6. Mistrust
National
and
Subnational
government
Extractive
company
Community
and civil
society
groups
TENSIONS BETWEEN STAKEHOLDERS
Uncertainty
Asymmetries

7. SUSTAINABILITY DRIVERS OF CONFLICT
• Low credibility on
environmental
regulation efficacy
• Lack of participatory
mechanisms and
communication
efforts
• Ineffective actions to
achieve social license
to operate
• Low capacity to
address social
conflicts
• Dependency on exporting raw
materials, low economic
diversification
• Distrust of revenue distribution
Dissatisfaction
with the low
impact on local
development
Social
mobilization
against
extractive
activities
Concerns about
environmental
impact on
resources
necessary for
subsistence
Ineffective
communication
Economic
EnvironmentalSocial

8. BUSINESS CHALLENGE TO PREVENT SOCIO-
ENVIROMENTAL CONFLICTS
Reactive
response
Preventive
strategy
Chile
Perú
HidroÑuble Project in San Fabian community
Tía María Project – Southern Company in Islay Province

9. BUSINESS CHALLENGE TO PREVENT SOCIO-
ENVIROMENTAL CONFLICTS
Reactive
response
Preventive
strategy
Improving the way
of doing business in the
extractive industry
How to start?

10. BUILDING INTERNAL SKILLS TO PROMOTE
STAKEHOLDER DIALOGUE
Internal alignment
and response capacities
Stakeholder engagement
Communication strategy to
address information gaps
Direction board
Human
resources
Operations Logistics
Corporate
affairs
Sales
Community
relations
Personnel Local community State Clients Suppliers
Building trust trough a coherent message

11. SOCIAL INTERVENTION MODEL PROPOSAL
Dialogue and participation mechanisms
Trusting information through the extractive value chain
Strengthening of
local capacities
Governance and
accountability
Strategic partnerships
Public, private and civil
society
Monitoring and participation efforts
LOCAL DEVELOPMENT
PLANNING AND MANAGEMENT
Build a common long-term vision
L
e
a
d
e
r
s
h
i
p
c
a
t
a
l
y
s
t

12. CONCLUSION
 The extractive industry in South America has shown significant positive
impacts on development and macro-economic stability.
 The increasing resistance to the industry is outlined in principal
sustainability challenges at three levels: economic, environmental
and social.
 The social intervention model presented aims to enhance the
contribution of extractive companies in local development by acting as
a catalyst for economic growth and social change.
 This proposal could reduce dissatisfaction with extractive activities
and as a consequence reduce their risks and costs associated with social
conflict.

13. Questions? Comments?
sandra.carrillo@pucp.pe
pe.linkedin.com/in/sandracarrillohoyos