Indegenous Peoples, Energy, and International Justice: The Pangue/Ralco Hydrologic Project in Chile’s Alto BioBio (July 2004) (Orellana)

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In the upcoming months, the reservoir of the Ralco dam, one of a series of dams along the Upper BíoBío River in Southern Chile, will destroy the pristine mountain ecosystem and will permanently and irreversibly disrupt the semi-nomadic lifestyle and cosmovision of the Mapuche/Pehuenche people. At the same time, the communities affected by the dam will attempt to reconstruct their lives and culture using resources and rights provided by a “friendly settlement” reached by them with the Chilean Government and approved by the Inter- American Human Rights Commission (IACHR). This is the aftermath of a decade-long struggle by indigenous communities and environmental groups in defense of their rights against the project sponsor (Endesa–a formerly public but now privatized company), the Chilean government, and the International Finance Corporation (IFC).

Controversial is sues raised in the BíoBío dams case present difficult public policy questions: How to reconcile respect for indigenous peoples’ cultures with energy demands by the dominant majority? How to operationalize prior informed consent with respect to large dams that involve resettlement and flooding of ceremonial and sacred sites? How to hold multinational corporations accountable for human rights violations? And how to determine the “public interest” in light of developmental needs and indigenous peoples’ cultures and rights?

In general, this case highlights the fact that projects in violation of fundamental human rights do not constitute sustainable development. In other words, violation of the rights of indigenous peoples cannot be justified by the ‘public interest’ of the settler, dominant majority.

This piece presents a chronicle of the decade-long struggle of the Mapuche/Pehuenche against the flooding of their cultural ecosystem. This account first provides a historical background, and then examines the role of the IFC, the Chilean government, and the project sponsor in regard to the dams. It concludes with discussion of the petition presented by the affected indigenous families to the IACHR and of the settlement that was finally negotiated.

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