Birthing extractivism : The role of the state in forestry politics and development in Uruguay

Abstract

This study examines the role of states in developing contemporary extractivism based on recent investments and project plans in industrial forestry in Uruguay. This sheds light on several unanswered questions related to the role of the state and civil society in the governance, politics, and political economy of extractivism. The role played by states in contemporary extractive investments is a topic that requires studies that do more than simply analyse whether that role is strong or weak. Instead the focus should be on how states promote such investments, and on the political and socio-economic consequences thereof. Our analysis shows that the multiple roles of states need to be better understood when explaining the role of states in endorsing and expanding extractivism and its effect on the broader societal governance of business conduct. Our analysis indicates severe and negative developmental and socio-economic outcomes of pulp investments in Uruguay, which are hard if not impossible to transform as corporations can now use the investment protection laws – created by the government to regulate the state conduct – to restrict the possibilities of civil society and state actions.