Given the surge in socio-environmental conflicts that extractive
industry activity has generated in Latin America, particularly in the
last decade, it is only natural that countries in the region have begun
to consider how different rent distribution schemes could be used to
prevent or mitigate such struggles. By taking a panoramic look at the
distribution systems in place across the region, two different
distribution logics can be identified: distribution for development vs.
distribution for compensation. This Brief focuses on the case of Peru, a
country struggling with visible and violent conflicts, and examines one
particular aspect of their compensatory distribution scheme, the Law of
Canon. The Brief presents an overview of the law, and some reflections
about the reasons why it seems to not be as effective as was hoped in
reducing Peru’s conflict. Finally, underlying contextual and enabling
factors of Latin American experiences are identified, along with lessons
learned that may prove useful for countries in other contexts.
Latin American cases show how rent distribution alone does not diminish
To increase the likelihood of success of a particular rent distribution
system, compensation mechanisms should be linked with broader
development goals and be implemented by decentralised units that have
the necessary institutional capacities.
Glave, M.; Damonte, G. ELLA Policy Brief: Rent Distribution and Extractive Industry Conflict: The Latin American Approach. Publisher: ELLA, Practical Action Consulting, Lima, Peru (2012) 7 pp.