One of the major dilemmas of using rural commons for industrial uses in developing countries relates to the failure of the state to evolve consensus on allocating property rights to local communities and modern enterprises in a manner that sustains livelihoods and ecosystems. While traditional coastal communities enforce customary rights for fishing and mineral mining, the state sometimes reallocates traditional fishing territories to commercial mining to facilitate rapid industrialization. Communities oppose such transfers because of the negative impacts of commercial dredging on traditional fishing and ecosystems. Based on detailed field level surveys conducted in 2004, this paper describes how rural island communities along Cochin estuary expressed their opposition to the transfer of clam-mining rights to industries by democratic social mobilization. Counter moves were collectively organized by modern enterprises and trade unions which had the support of the state. However, major political parties retreated from conflict management, leaving the matter in a state of flux. This paper suggests that the state must recognize traditional livelihood rights of communities if it is to resolve conflicts and ensure the sustainable and equitable use of natural resources.
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