ABSTRACT
This chapter analyses the process before, during and after the involuntary displacement and resettlement of Pehuenche families affected by the construction of two hydroelectric dams on their ancestral lands in post-dictatorship Chile. Despite a favourable international context characterised by growing recognition of the rights of indigenous peoples by international organisations – and even with many Chilean companies forming part of the United Nations Global Compact – economic considerations remain more important than human rights. This case study highlights the limited influence of these international norms when faced with cultural, economic and political forces that formally respect but effectively distort community development plans, bypassing political opposition. Indeed, the Chilean government’s dependence on private sector investment in electrical energy offers few incentives to voluntarily recognise the social costs generated by these projects. Also, historical inequality and a legal framework that does not effectively consider customary rights to land place the burden on the affected families to demand their rights. This chapter shows how effective implementation requires clear standards with respect to well-known risks, rigorous public participation processes, transparency requirements and independent supervisory organisations with a clear mandate.
