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The implications of the green economy are great. Interethnic conflict will only continue to spread as the resource scarcity caused by corporate mining firms will not necessarily go away. A green economy is likely only to help the very big commercial mining companies, empowering them with an increased demand for their product which increases the usage of resources.
Lack of resources for green economies frequently results in mining around the world. The main problem is that mines for strategic metals are expanding to developing areas which can damage the environment and impose heavy costs on nearby communities.
Over 1.4 million people in Rio Tinto’s affected community of Tamboga suffer from poverty and unemployment. Freeport’s mining operations cover an area 1/3 the size of Rhode Island and the company controls political decisions affecting the people living near their Grasberg Mine.
One of the most prominent differences in Freeport-McMoRan’s operations since it relinquished the mine is that they are proving less resistant to environmental pressures. Yet, there are still unanswered questions about the corporate stewardship Paragominas if, over time, PT Freeport Indonesia does not get its act together. Understanding how mining is being run in these two locations gives us an excellent comparative lens if we are to advocate responsibly for responsible mining operations.
Corruption and conflict continue to plague modern mining, especially in Indonesia. Recent technology has been developed to increase worker safety, but the evidence of pre-colonialism is obvious from caution from international operators from Rio Tinto and Freeport-McMoRan to the concerns of disenfranchised Indonesians.
Recent government export bans may illustrate how the hands of Indonesia’s government could disrupt markets. In 2020, the government banned nickel exports and is now considering implementing bans on bauxite ore and copper ore. The government believes that keeping raw materials at home may be a path to economic development by providing corporate mining companies cheaper resources to use, rather than exporting them abroad. Exports may appear to violate the rules of the World Trade Organization and violate basic concepts of comparative advantage beyond state-sponsored planning. Export bans
The Green Economy has implications for interethnic conflict, as mining is inherently connected with power and land rights. Indonesia’s role as a colonial nation is ironic as they themselves are now enacting those same policies. Mining for minerals leads to opportunities and conflicts that tie into the environment and ethnic groups.
Papua is an island nation with diversity in the cultural dialogue. The majority of them have lived in subsistence agriculture and tribal warfare prior to European settler arrival in 1828. West Papua\’s geography has facilitated a diverse culture with a population of 752,000 remaining out of touch with the world.
Using the Green Economy, we can sustain and responsibly extract vast natural resources from West Papua. Using Native land and so on.
Despite the great success in terms of population engagement resulting in better conservation, mining projects continue to plague multinational corporations. A recent case study recorded that the Free Papua Movement has waged a guerilla war against the Indonesian state since 1962 due to Dutch occupation among other issues. With the relatively high number of deaths caused by a proxy war between 300,000 and 100,000 Papuans, Indonesia has yet to appropriately take responsibility for its actions.
We can see how development projects in Papua have the aim of benefiting the Indonesian government more than the inhabitants. For example, in a recent deal that gave Indonesia a controlling stake at Grasberg mine, locals were excluded and Papuan interests shared only 1/5th of their 20% share. It’s not hard to see how deals like this would make Papuans feel resentful and would play a role in fueling tension between locals and Indonesians.
The complicated labor market has caused strife on the island of West Papua for some time. Figuring out a way to have citizens have some say in what laborers are hired will continue to be difficult.
A company could generate goodwill and increase profits by supplementing its production with ecological and economic responsibility. However, if local people do not feel that they are getting a fair share of the wealth then the safety, peace, and stability of their environment are compromised. Local violence or rebellion against the mining operation will affect both the environment and the company’s reputation.
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