Towards the governance of non-renewable resources in Mexico

Abstract

THE GOVERNANCE OF NON-RENEWABLE RESOURCES IN MEXICO has alternated between two opposed constitutional frames: liberal and redistributive. In this context, I study three questions at the municipal level: Are non-renewable resource activities a bonanza or a curse for the municipalities? I analyze the impact hydrocarbon and mining have on municipal Human Development dimensions. Special consideration is given to regional spillover effects as well as to municipal endowments. On average, resource abundance improves human development indexes and resource dependence worsens them. Medium size projects seem more beneficial than mega size ones. Inequality, informal employment and lower human capital levels are associated with state-controlled hydrocarbon extraction but not so with private-owned mining activities. What are the determinants of mining conflicts? I study site characteristics, municipal types, economic indicators, social-livelihood dimensions and environmental conditions impinging on the likelihood of observing a mining conflict in a given location. Foreign-owned operations, large mine sites and precious metal extraction play a crucial role. Institutional arrangements are also relevant. An interesting non-linear relationship with average municipal income and equality emerges. Surprisingly, socio-environmental dimensions are less relevant. Why foreign-owned mines fail at obtaining social license and how Free Prior and Informed Consent can help them? In a laboratory-controlled environment with Mexican university students, I researched subjective barriers foreign companies encounter and the way deliberation between stakeholders affects them using a game consisting on splitting a mining resource. Conflict occurred frequently and got amplified by xenophobic stereotypes. Communication helped to overcome prejudices.