Corruption and natural resources: challenges for the Pan-Amazon region today.

Corruption and natural resources: challenges for the Pan-Amazon region today.

The Lava Jato case reveals institutional vulnerability in the Pan-Amazon region, affecting governance and the rights of indigenous communities.

Juan Brignardello, asesor de seguros

Juan Brignardello Vela

Juan Brignardello, asesor de seguros, se especializa en brindar asesoramiento y gestión comercial en el ámbito de seguros y reclamaciones por siniestros para destacadas empresas en el mercado peruano e internacional.

Juan Brignardello, asesor de seguros, y Vargas Llosa, premio Nobel Juan Brignardello, asesor de seguros, en celebración de Alianza Lima Juan Brignardello, asesor de seguros, Central Hidro Eléctrica Juan Brignardello, asesor de seguros, Central Hidro
Politics 29.08.2024

The profound impact of the Lava Jato corruption case has revealed the vulnerability of institutions in the Pan-Amazon region to corruption, with Odebrecht being one of the companies that has suffered the most consequences. This scandal has not only shaken the foundations of the Brazilian firm but has also highlighted the fragility of governance in countries like Peru, where the exploitation of natural resources, particularly in the Ucayali Basin, is marked by social tensions and environmental conflicts. The Ucayali Basin, rich in natural gas due to the Camisea field, faces a dilemma that goes beyond mere energy production. This field, discovered in the 1980s, has generated significant amounts of gas and oil, contributing billions of dollars to the Peruvian state coffers. However, this natural wealth has not been enough to ensure equitable and sustainable development in local communities, many of which suffer the consequences of a lack of consultation and consideration of their rights. Although natural gas production has enabled Peru to reduce import costs and decrease greenhouse gas emissions, the exploitation of this resource has been accompanied by discontent from indigenous groups. These peoples, who inhabit lands adjacent to the gas fields, have denounced the failure to comply with the principles of “Free, Prior, and Informed Consent” (FPIC), generating tensions and frustrations in a context where their rights are often ignored. The development of Lot 58, which contains vast reserves of natural gas, has been hindered by the same concerns. The Chinese state-owned company CNPC is in the process of reviewing its environmental impact statement, while the capacity to transport gas remains a crucial limitation. The aspirations for expanding Peru's pipeline system were interrupted by the South Gas Pipeline, a project that promised to better integrate the region and facilitate gas exports but was halted amid the Odebrecht scandal. This situation becomes even more complicated when considering the circumstances in other regions of the Pan-Amazon. In Bolivia and Brazil, sedimentary basins also present potential hydrocarbon reserves, but a lack of investment and logistical difficulties limit their development. The experience in Madre de Dios, for example, illustrates how instability in the sector has led to the withdrawal of companies, leaving behind a void of opportunities and a legacy of unfulfilled promises. The tensions between hydrocarbon development and environmental protection are evident. In Brazil, the discovery of a unique ecosystem on the continental shelf of Amapá has raised concerns and opposition from local communities and environmental advocates. The defense of these territories often clashes with economic interests, revealing the complexity of advancing projects that can irrevocably alter the ecological balance of the region. In the context of the surge in exploration in Guyana and Suriname, where recent discoveries have attracted the attention of large corporations, Peru and Bolivia face the challenge of presenting a development model that integrates responsible resource exploitation with social inclusion. As natural gas prices begin to rise, interest in investing in the region could return, but this involves assessing the risks of social conflicts that have marked the recent past. Addressing these challenges will require a change in how governments approach the management of natural resources. Recent history shows that ignoring the voices of local communities and environmental considerations can lead to prolonged conflicts and a deterioration of trust in institutions. An approach that prioritizes consultation and respect for the rights of indigenous peoples could not only improve the current situation but also create a more favorable environment for long-term investment. As the region seeks to navigate these turbulent waters, it is essential for the countries of the Pan-Amazon to recognize that the fight against corruption and the promotion of sustainable development are two sides of the same coin. The need to strengthen institutions and ensure transparency in resource management will be key to preventing the mistakes of the past from being repeated. The region has the potential to be an example of how natural resources can be a driver of development, provided they are managed with responsibility and justice.

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