Economic benefits Demand for extracted resources on the global market has allowed this industry to expand. Extractivism has therefore been seen as a tool for economically advancing developing countries that are rich in natural resources by participating in this market. It is argued that the emergence of this industry in the neo-liberal context has allowed extractivism to contribute to stabilizing growth rates, increasing
direct foreign investment,
diversifying local economies, expanding the middle class and reducing poverty. The green economy has emerged as an economic model in response to the arising tensions between the economy and the environment. Extractivism is one of the many issues that exist at this intersection between the economy and the environment.
Environmental consequences One of the main consequences of extractivism is the toll that it takes on the natural environment. Due to the scale extraction takes place on; several renewable resources are becoming non-renewable. The environment often must compensate for overproduction driven by high demand. To what degree humans have a right to take from the environment for developmental purposes is a topic that continues to be debated.
Social impacts In addition to the environmental consequences of extractivism, social impacts arise as well. Local communities are often opposed to extractivism occurring. This is because it often uproots the communities or cause environmental impacts that will affect their
quality of life. Extractivist policies and practices heavily destroy the land as explained above. This changes game populations, migration patterns for animals, pollutes rivers and much more. Doing so, does not allow Indigenous populations to practice their culture and ways of life because the environment they depend on to hunt, fish etc. is drastically changed. As well, foreigners usually fill the highest paying managerial positions, leaving local community members to do the most labour intensive jobs. Frequently, the enclaves where extractivism occurs are distanced from government involvement, therefore allowing them to avoid being subjected to the enforcement of national laws to protect citizens. It is argued that prolonged social transformation cannot thrive on export dependent extractivism alone therefore making neo-extractivism a potentially flawed development method on its own.
Political implications campaign began in Canada to build indigenous sovereignty and nationhood and to protect water, air, land and all creation for future generations. Due to the fact that the state is a prominent actor in the extractivism process it has several political implications. It pushes the state into a position where they are one of the central actors involved in development when recent decades have seen a shift to
civil society organizations. The increasing demand for raw materials also increases the likelihood of conflict breaking out over natural resources. Conflicts between Indigenous peoples, corporations and governments are occurring around the world. Because many of the extractivist practices take place where Indigenous communities are located, the conflicts are making these landscapes politicized and contested. The conflicts are driven because Indigenous lives are put in jeopardy when they are dispossessed, when they lose their livelihoods, when their water and land is polluted and the environment is commodified.
Anti-extractivist activism Because extractivism so often has negative implications for the Indigenous communities it affects, there is much resistance and activism on their end. For example, from the 1980s and through today we can see examples of "extrACTIVISM", a term coined by author Anna J. Willow. In protest of the logging project on their land, the
Penan of
Borean Malaysia claimed it was a case of civil disobedience as a means to end it and succeeded. In '89,
Kayapó peoples stood up against the building of dams on their land in
Pará,
Brazil, causing their funding to be stopped and successfully ending the project. The
U'wa people of
Colombia ended oil extraction on their land through blockade activism from the 90s through 2000. Just this year, the
Keystone Pipeline that runs through Canada and the U.S. was put to a halt due to Indigenous activism. Its construction officially ended in June 2021. Despite the difficulties they face in protesting these projects, their resilience continues to flourish and oftentimes they succeed in ending extractivism on their land. Another example of this activism is the
Ponca tribe planting corn in the path of the Keystone Pipeline as an act of resistance. Aside from active protesting,
Tribal sovereignty is essential in their goal of protecting their own land. == Case studies ==