Analysing Benefit Sharing Scheme as Compensation for Damages Caused by Resource Extraction in Indigenous Territory

Abstract

In Latin America extractive operations have given rise to the loss and environmental degradation of indigenous peoples’ territories. This, in turn, has implied the denial of the access of indigenous peoples to essential resources for their cultural, economic and social development. To compensate the loss of their livelihood, the Inter-American Court on Human Rights, states, multinational and financial institutions have recognised the right of indigenous peoples to benefit sharing. This article analyses the impact of this mechanism on indigenous peoples’ lives. While the definition and scope of benefit sharing is still being shaping at international level, its implementation depends on the political and economic interests at national level. The case of Shuar communities in Ecuador affected by the Mirador and San Carlos Panatza mining project illustrates how a top-down hierarchical approach to implementation leads to violent confrontation between state, corporations and indigenous peoples.