Monday 9 September 2013

Summary of Section Five: The Political Economy of Extractive Industries on Indigenous Soil





According to Martin and Hoffman (2008) in Chapter 7, “In Service of Globalization,” the impulse towards globalization is clearly manifested in the continuously expanding development of Manitoba’s hydroelectric system in order to serve increasingly distant extraprovincial markets. In Chapter 6, “Elites’ Survival and Natural Resources Exploitation in Nigeria and Niger,” Thorp et al. (2004), Yvan Guichaoua focuses his study on the behavior of political elites in the resource rich African countries in the post colonial era, which coincides with industrial extraction of oil and uranium respectively (p. 131).
The growing demand for electricity in Quebec and the Midwestern United States is influencing this impulse towards globalization evident in Manitoba Hydro’s present and long-term exogenous development goals.  Since 2001, non-domestic sales have accounted for anywhere from 33 to 42 percent of total system sales. Thus it is clear the limitation of a transmission system built primarily to meet local, or at best, regional loads, but which is increasingly being called upon to handle intercontinental bulk power transfers, is the reason for the push to build Bipole 3 (pp. 146-149).
            According to Thorp et al. in Nigeria and Niger, centralism is a common characteristic that tends to weaken the grassroots politics that might be the basis of a different endogenous development strategy (p. 168). In Nigeria, corporate interest holding the natural resource cash tap gives critical leverage for controlling the national political game (p. 151). In the case of Niger, post-colonial Niger had a resource France wanted dearly, which it sold to its colonial ruler as part of a bundled transaction involving mechanisms aiming to preserve incumbent elites, including aid, technical assistance, and military cooperation (p. 152).
Bradley and Hoffman (2008) state the key difference between hydro development in Quebec and Manitoba is the politically destructive project-by-project and community-by-community negotiating style that has long characterized provincial-Aboriginal relations in Manitoba. Thus, unlike in the case of the Paix Des Braves, Hydro and the province of Manitoba continue to deal with each and every community as a separate entity on a project-by-project basis. The implications of this strategy are best appreciated by comparing negotiations in Manitoba with those in Quebec, and specifically, with the 2004 Les Paix Des Braves agreement, which has been described as a ‘true partnership’. In contrast, the absolute inequality in Manitoba stems from the insistence on the part of Hydro that individual agreements be consummated between the company and various northern Aboriginal communities (pp. 151-152).
According to Bradley and Hoffman (2008), the project-by-project and community-by-community strategy also confronts individual communities with a remarkable reality: by becoming business partners, they are, in effect, agreeing to perpetuate ecological damages that are a functional part of the project’s operation. In this respect, Aboriginal communities become participants in the continued degradation of an ecology that could support a traditional land-based way of life. However, according to The Honorable Tim Sale, Minister of Energy, Science and Technology, hydro development is green energy and contributes to meeting our national climate change targets (Kyoto) by helping to displace fossil fuel generation (pp.151-155).
According to Thorp et al. (2004), a system where economic distribution is primarily oriented towards the reproduction of political elites is likely to be detrimental to the consolidation of a developmental state (p. 136). In Nigeria, despite the oil profits, the standard of living for the general population has not improved; the GDP per capita is roughly the same as it was in 1970. Favoritism and corruption are symptoms of rentier behaviors encouraged by oil specialization (p. 139). Indigenous people are not consulted and decisions are made from above (p. 145). The Niger delta has been a particularly volatile pocket of political and social upheaval with its share of ransoms, trafficking, and human rights abuses.
A redefinition of the Aboriginal role in hydro development in Manitoba is required.  It is necessary to consider Aboriginal people as a resource to be developed, as inhabitants of the lands being developed, with title to these lands and rights equal to all others, they must be a part of the consultation process as well as have a share in the projects and the profits derived from them.  This would inevitably contribute to securing better social health for the province in the future. According to Hoffman and Bradley (2008), a reasonable first step in reversing the downward spiral faced by these communities would be to abandon the divisive “business only” approach employed by provincial authorities and establish meaningful nation-to-nation dialogue in the next round of dam building (p. 164).
According to Thorp et al. (2004), more social movement and a push for decentralization are needed to stop the civil unrest in Niger. Young Tauregs (Nigerians) were promised the creation of municipalities and 25 percent of the riches produced locally, but the promise was never fulfilled.  In Nigeria, the behavior of oil companies is determined by political elites in power who prevent the creation of strong institutions to control environmental damage and create transparency (pp.188-191).

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