Cerro De San Pedro: Grass Roots Movements in Co-Operation and Conflict to Stop a Living City from Dissappearing

Abstract

The aim of this paper is to analyze relationships of cooperation and conflict between a mining company and the involved communities, New Social Movements and the three levels of government. The mining company begun operations for an open pit mine of gold and silver supported by officials from the local, state and federal government. The inhabitants of these communities supported by environmental groups and NGOs argue that the project will pollute sources of fresh water besides of perturbing the environment and the ecology of the region. The methodology used consisted of a historic and social analysis to determine in an exploratory study, the main economic, political, legal, social and cultural variables which are involved in this case, overall under the context after signed the North American Free Trade Agreement. The findings of this research contribute to explain relationships of co-operation and conflict between multinational firms operating in local communities, to analyze the role of the three levels of government and the new social movements in the conformation of local economies under processes of regional economic integration. The results also are relevant by their contributions to the understanding of corporate social responsibility processes of transnational firms and the contestation and collective action processes of new social movements economic and environmental development of local communities. This case also shows the lack of negotiation between firms, communities, new social movements and governments. Information about externalities and future costs of company activities is crucial but more crucial is formulation and implementation of more sensitive policies to avoid damage of the environment, biodiversity and health of population. Governmental institutions must be aware that their decisions may affect the community quality of life of actual and future generations only for a small increment in economic growth and large increase in private benefits of a small group of investors.

Keywords: Cerro de San Pedro, community, conflict, environment, firm, government.

JEL Classification: O18, Q57, Q58, R11, R58