Faundez, Julio --- "The governance of natural resources in Latin America: The commodities consensus and the policy space conundrum" [2017] ELECD 1045; in Tan, Celine; Faundez, Julio (eds), "Natural Resources and Sustainable Development" (Edward Elgar Publishing, 2017) 117

Book Title: Natural Resources and Sustainable Development

Editor(s): Tan, Celine; Faundez, Julio

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783478378

Section: Chapter 7

Section Title: The governance of natural resources in Latin America: The commodities consensus and the policy space conundrum

Author(s): Faundez, Julio

Number of pages: 25

Abstract/Description:

This chapter examines the impact of international legal rules on the natural resource policies of Brazil, Chile and Ecuador during the recent commodities boom. By means of three case studies, it shows that their policies were remarkably similar despite considerable economic and political differences. Although they complied with norms on investment and trade liberalization, they were not constrained by other international rules, in particular those that recognize the rights of indigenous people and the need to protect the environment. Thus, the chapter shows that, while in some respects international law has reduced governments’ policy space in the area of natural resources, it provided them encouragement and flexibility to take advantage of the commodities boom. On close inspection, however, the political space created by the contradictory nature of international law conceals a more fundamental constraint arising from the nature of prevailing rules on trade and investment. Keywords: commodities; development; governance, international law; natural resources; Latin America; trade and investment