Peru has a small oil and gas sector and a vibrant mining industry. It is one of the world’s top producers of copper, gold and silver. Natural resources present both an opportunity and a challenge for development and governance. First, it is an opportunity for the country to get urgently needed revenues that can support infrastructure and public services. But it is also a challenge for Peru to collect, administer, and manage this revenue, to ensure that it does not fuel corruption or social conflicts within the country. If the benefits of development of natural resources are not shared with society, social conflicts invariably result and have resulted.
The 2018 Capstone will build on prior Capstone work with the goal of having the recommendations implemented by all stakeholders, namely the government, the mining companies and the communities. The earlier Capstone teams reviewed the mining industry in Peru and identified key issues to prevent the resource curse in the mining industry in Peru. In particular, the teams looked at legal, economic, environmental and social issues; laid the ground work in establishing what Consulta Previa should mean in practice and not just in theory --- how can it be implemented with binding effect and establishing the parameters of the social license, including securing the input of communities, and determining a path forward which is legally binding.
The 2017 report, titled Mining, Social License and Conflict Prevention (report will be available in late 2017) established, among other things, the parameters for what is needed in a social license, inputted local concerns for a draft agreement between the communities and a mining company, and established necessary procedures for securing social or community consent to any such agreement or license.
The 2018 Capstone team will build on the 2017 Capstone report.