Social Struggle and the Political Economy of Natural Resource Extraction in Peru

Abstract

In the period 2002–12, the Peruvian economy almost doubled in size. This growth was mainly the consequence of the commodity boom in these years. The importance of the mining sector for the Peruvian Treasury is politically translated in the immense difficulties Peruvian Governments have in closing the doors to transnational mining corporations. The government of Ollanta Humala actually inserted the fiscal contribution of extractive industries into the cornerstone of its social policies. In Peru, a growing body of literature is emerging regarding mining issues. However, it lacks an analysis of the development of the mining sector in relation to the general workings of capitalism. In this article we analyze the development of mining in Peru from a critical political economy perspective as this enables us to identify the forces that are advancing the capitalist development process as well as the forces of resistance to this development.