The extractive sector as a lever for productive transformation

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Sep 2023
The extractive sector in the Andean Region stands out for its historical and economic significance. However, it faces emerging challenges due to the commitments of the Paris Agreement to address climate change and the growing demand for critical minerals. This context emphasizes the importance of diversifying economies, adopting sustainable technologies, and considering the territorial and environmental effects associated with this transition. Various crucial aspects related to the current challenges of the extractive sector in the Andean Region, are addressed. The document highlights the importance of Social License to Operate and community trust in extractive projects, as well as the need to improve governance capacity and promote the creation of shared value. Governance and transparency also present significant challenges, particularly in terms of fiscal and environmental regulation, policy coordination, and industry transparency promotion. Economic diversification and the development of productive linkages are crucial elements for sustainable and balanced development in the region. Digitalization and the adoption of digital technologies also have a fundamental role to play in addressing the challenges of the energy transition and meeting sustainability standards. The inclusion of marginalized groups, such as women and ethnic minorities, is also highlighted as a crucial need for achieving inclusive and equitable development. Despite the obstacles, the region has the opportunity to transform the extractive sector into a lever for productive transformation, leveraging innovative approaches and effective policies.