Showing posts from category Bolivia.
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Beyond Supply Risks: The Conflict Potential of Natural Resources
›While the public debate about resource conflicts focuses on the risk of supply disruptions for developed countries, the potentially more risky types of resource conflict are usually ignored. As part of a two-year research project on behalf of the German Federal Environment Agency, adelphi and the Wuppertal Institute for Climate, Energy, and Environment have analyzed the risks of international conflict linked to natural resources in a series of reports titled Beyond Supply Risks – The Conflict Potential of Natural Resources.
Resource extraction, transportation, and processing can create considerable crises and increase the risk of conflicts in producing and transit countries. This phenomenon – widely referred to as the “resource curse” – impacts consuming countries only if it leads to shortages and higher prices. However, in the producing and transit countries it can have much wider destabilizing effects – from increasing corruption to large-scale violent conflict. In addition, the extraction, processing, and transportation of resources often create serious environmental risks. Overexploitation, pollution, and the degradation of ecosystems often directly affect the livelihoods of local communities, which can increase the potential for conflict.
The eight reports that comprise Beyond Supply Risks explore plausible scenarios over the next two decades, focusing on four case studies: copper and cobalt in the Democratic Republic of Congo; the Nabucco natural gas pipeline project across Southern Europe and Turkey; lithium in Bolivia; and rare earth minerals in China.
Lithium in Bolivia
Bolivia possesses the world’s largest known lithium deposits, a potentially important resource for the development of electric vehicles. While the development of Bolivia’s lithium reserves could provide major economic benefits for one of the poorest countries in Latin America, our analysis identifies two main potential risks of conflict.
First, the environmental consequences of developing industrial-scale lithium production might have negative effects on the livelihoods of the local population. The local population in the lithium-rich department of Potosí has shown that it is capable of organizing itself effectively in defense of its interests, and past resource conflicts have turned violent, making a conflict-sensitive approach all the more important.
Second, the Bolivian economy is largely dependent on natural resources, and consequently is susceptible to price shocks. At present, this risk is primarily associated with natural gas. But lithium production, if developed, might be subject to the same dynamics, which could potentially destabilize the political system.
For consuming countries, these conflicts threaten supplies of lithium only if local protests or broader destabilization were produce bottlenecks in the supply chain.
Rare Earths and China
Like lithium, rare earths are likewise essential for some new technologies. China’s well publicized monopoly on 97 percent of the global production spurred a heated debate on the security of supply of strategic minerals. While our case study identifies supply risks for consuming countries, it also outlines some of the conflict risks China might face internally.
First, local populations could protest against the severe ecological impact of rare earth mining and production. In addition, conflicts might arise if those who profit from economic development (entrepreneurs or regional power-holders) undermine the traditional centralized party structures and expand their own influence.
International conflicts over access to Chinese rare earth resources, while they dominate the headlines, do not appear to be the dominant risk. Instead, internal political tensions could result in a weakened China that is not able to exploit its monopoly position for foreign policy gains. Or the government could enter into multilateral agreements and thus avoid a confrontational approach towards consumer nations.
Ultimately, the actual rate of diffusion of environmental technologies and the development of new technologies remain the key factors in determining whether relative shortages in global supply of rare earths will in fact occur. If industrialized nations and emerging economies commit to the same technologies to attain climate policy goals, international resource governance and coordinated promotion of (environmental) technology will also play a role in preventing conflict and crisis over rare earths.
The Way Forward
The series concludes with five recommendations to mitigate the risks of future resource conflicts:- Introduce systematic policy impact assessments to understand how policy goals and strategies, especially in regard to climate and environmental policy, interact with resource conflict risks.
- Increase the transparency of raw material markets and value creation chains to prevent extreme fluctuations in prices and improve information on markets, origins, and individual players.
- Improve the coherence of raw material policy by linking raw material policies with security, environmental, and development policies.
- Demand and promote corporate social responsibility along the whole value chain.
- Increase environmental and social sustainability as a means of strengthening crisis and conflict prevention by systematically taking into account social and conflict-related aspects in the resource sector.
The individual reports from the project can be downloaded here:- Conflict Risks (GERMAN only)
- Supply and demand (GERMAN only)
- Case Study: Nabucco Pipeline (GERMAN only)
- Case Study: Congo
- Case Study: Bolivia
- Case Study: China
- Conflict Resolution Strategies (GERMAN only)
- Summary and Recommendations
Sources: Government Accounting Office.
Photo Credit: “Potosí: miners in darkness,” courtesy of flickr user Olmovich. -
Climate Change, Development, and the Law of Mother Earth
Bolivia: A Return to Pachamama?
›May 20, 2011 // By Christina DaggettIn Bolivia, environment-related contradictions abound: shrinking glaciers threaten the water supply of the booming capital city, La Paz, while unusually heavy rainfall triggers deadly landslides. The government is seeking to develop a strategic reserve of metals that could make Bolivia the “Saudi Arabia of lithium,” while politicians promote legal rights for “Mother Earth” and an end to capitalism.
This year has been particularly turbulent. In La Paz, landslides destroyed at least 400 homes and left 5,000 homeless. While the rain has been overwhelming at times, it has also been unreliable – an effect of the alternating climate phenomena La Niña and El Niño, experts say, which have grown more frequent in recent years and cause great variability in weather patterns. Bolivia has endured nine major droughts and 25 floods in the past three decades, a challenge for any country but particularly so for one of the poorest, least developed, and fastest growing (with a total fertility rate over three) in Latin America.
Environmental Justice or Radicalism?
Environmentalism has become a major force in national politics in part as a response to the climatic challenges faced by Bolivia. A new law seeks to grant the environment the same legal rights as citizens, including the right to clean air and water and the right to be free of pollution. (Voters in Ecuador approved a similar measure in 2008.) The law is seen as a return of respect to Pachamama, a much revered spiritual entity (akin to Mother Earth) for Bolivia’s indigenous population, who account for around 62 percent of the total population.
Though groundbreaking in its scope, the new law may prove difficult to enforce, given its lack of precedent and the lucrative business interests at stake (oil, gas, and mineral extraction accounted for 70 percent of Bolivia’s exports in 2010).
On the global stage, President Morales has issued perhaps the most aggressive calls yet for industrial countries to do more about climate change and compensate those countries that are already experiencing the effects. Bolivia refused to sign both the Copenhagen and Cancun climate agreements on grounds that the agreements were too weak. In Cancun, Morales gave a blistering speech:We have two paths: Either capitalism dies or Mother Earth dies. Either capitalism lives or Mother Earth lives. Of course, brothers and sisters, we are here for life, for humanity and for the rights of Mother Earth. Long live the rights of Mother Earth! Death to capitalism!
Bolivia’s stance has alienated potential allies: In 2010, the United States denied Bolivia climate aid funds worth $3 million because of its failure to sign the Copenhagen Accord.
Going… Going… Gone
Bolivia’s Chacaltaya glacier – estimated to be 18,000 years old – is today only a small patch of ice, the victim of rising temperatures from climate change, scientists say. Glaciologists suggest that temperatures have been steadily rising in Bolivia for the past 60 years and will continue to rise perhaps a further 3.5-4˚C over the next century – a change that would turn much of the country into desert.
Other Andean glaciers face a similar fate, according to the World Bank, which estimates that the loss of these glaciers threatens the water supply of some 30 million people and La Paz in particular, which, some experts say, could become one of the world’s first capitals to run out of water. The populations of La Paz and neighboring El Alto have been steadily growing – from less than 900,000 in 1950 to more than 2 million in 2011 – as more and more Bolivians are moving from the countryside to the city, putting pressure on an already dwindling water supply.
If the water scarcity situation continues to worsen, residents of the La Paz metropolitan area may migrate to other areas of the country, most likely eastward toward Bolivia’s largest and most prosperous city, Santa Cruz. Such migration, however, has the potential to inflame existing tensions between the western (indigenous) and eastern (mestizo) portions of the country.
Rising Prices, Rising Tension
The temperature is not the only thing on the rise in Bolivia; the price of food, too, is increasing. According to the World Food Program, since 2010, the price of pinto beans has risen 179 percent; flour, 44 percent; and rice, 33 percent. Shortages of sugar and other basic foodstuffs have been reported as well, leading to protests.
In early February, the BBC reported President Evo Morales was forced to abandon his plans to give a public speech after a group of protestors started throwing dynamite. A week later, nation-wide demonstrations paralyzed several cities, according to AFP, closing schools and disrupting services.
The Saudi Arabia of Lithium?
One way out for Bolivia’s economic woes might be its still nascent mineral extraction sector. Bolivia possesses an estimated 50 percent of the world’s lithium deposits (nine million tons, according to the U.S. Geological Survey), most of which is locked beneath the world’s largest salt flat, Salar de Uyuni. The size of these reserves has prompted some to dub Bolivia a potential “Saudi Arabia of lithium” – a title, it should be noted, that has also been bestowed upon Chile and Afghanistan.
Demand for lithium, which is used most notably in cell phones and electric car batteries, is expected to dramatically increase in the next 10 years as countries seek to lower their dependence on fossil fuels. Yet, some analysts have wondered if Bolivia’s lithium is needed, given the quality and current level of production of lithium from neighboring Chile and Argentina.Others have questioned whether Bolivia has the necessary infrastructure to industrialize the extraction process or the ability to get its product to market, though Bolivia recently signed an agreement with neighboring Peru for port access. In an extensive report for The New Yorker, Lawrence Wright writes that “before Bolivia can hope to exploit a twenty-first century fuel, it must first develop the rudiments of a twentieth-century economy.” To this end, the Bolivian government last year announced a partnership with Iran to develop its lithium reserves – a surprising move, given Morales’ historical disdain for foreign investment.
Nexus of Climate, Security, Culture, and Development
The Uyuni salt flats are both a potent economic opportunity and one of the country’s most unspoiled natural wonders. How will Bolivia – a country of natural bounty and unique indigenous tradition – balance the need for development with its stated commitment to environmental principles?
Large-scale extraction may be worth the environmental cost, a La Paz economist told The Daily Mail: “We are one of the poorest countries on Earth with appalling life-expectancy rates. This is no time to be hard-headed. Without development our people will suffer. Getting bogged down in principles and politics doesn’t put food in people’s mouths.”
“The process that we are faced with internally is a difficult one. It’s no cup of tea. There are sectors and players at odds in this more environmentalist vision,” said Carlos Fuentes, a Bolivian government official, to The Latin American News Dispatch.
Sources: American University, BBC News, Bloomberg, Change.org, Christian Science Monitor, The Daily Mail, Democracy Now, Green Change, The Guardian, Instituto Nacional de Estadística de Bolivia, IPS News, Latin America News Dispatch, MercoPress, The New York Times, The New Yorker, Population Reference Bureau, PreventionWeb, Reliefweb, Reuters, SAGE, Tierramerica, USAID, U.S. Geological Survey, UNICEF, Upsidedownworld, Wired UK, The World Bank, Yahoo, Yes! Magazine.
Photo credit: “la paz,” courtesy of flickr user timsnell and “Isla Incahuasi – Salar de Uyuni, Bolivia,” courtesy of flickr user kk+. -
Mapping the Hot Spots of the 2010/11 Food Crisis
›If you’ve taken a trip to the supermarket lately or scanned the headlines you may have noticed something: Food prices are on the rise. Worldwide, food prices are on track to reach their highest point since their peak in 2008. Using data from the Food and Agriculture Organization (FAO), the International Food Policy Research Institute (IFPRI), and the World Bank, the Environmental Working Group (EWG) and ActionAid have collaborated to create an interactive world map called, “Hot Spots in the Emerging Global Food Crisis.”
The focus of the map is to highlight the 52 most at-risk countries where increases in staple food prices could tip the scales of stability. There are three variants of the map to choose from: countries at risk which depend on imported cereals, countries where prices are already increasing (featured above), and countries with vulnerable economies and high rates of hunger.Food prices have become a hot topic of conversation lately for their alleged role in the instability that is rocking the Middle East/North Africa region. But the Middle East is not the only area affected: Besides in Algeria, Tunisia, Morocco, Jordan, and Egypt, food-related riots and protests have also broken out in Mozambique, Bolivia, and India. As the map’s accompanying text puts it, these food riots “feed deeper discontent about economic inequalities and hunger and help give rise to revolutions that can topple governments, as in Tunisia and Egypt.”
Scrolling over a country reveals more information, like, for example, the specific percentage increases in the price of wheat or rice over the past year (wheat prices have risen 15.9 percent in China vs. 54 percent in Kyrgyzstan) or the amounts of corn, soybean, and wheat annually imported and exported (Afghanistan exported 908 million metric tons of wheat in 2010 while Egypt imported 4,978).
Users can also click on vulnerable countries to see how many people are malnourished and their per capita income per day. In the Democratic Republic of the Congo, for example, an estimated 42 million people were undernourished between 2005 and 2007, and the average person lives on $0.28 per day. According to EWG and ActionAid, the total number of people living in extreme poverty rose by 25 million in 2008 during the last global food crisis. Since June 2010, the start of the current upward trend in prices, the World Bank estimates that 44 million people have fallen into extreme poverty.
One recommendation from EWG and ActionAid for developed countries and the United States in particular: Stop looking to biofuels as an energy option. In their view, “spending scarce taxpayer dollars to shift crops from food to biofuels at the expense of hungry people and already stressed resources like soil, water, and air is unsustainable.”
Image Credit: Map courtesy of the Environmental Working Group and ActionAid, and Food Price Index and Food Commodity Indices, extracted from Global Food Price Monitor, January 2011, courtesy of the Food and Agriculture Organization.
Sources: ActionAid International, BBC News, CNN, the Environmental Working Group, The European Union Times, Time, Voice of America, World Bank.
