Appropriation by Coloniality TNCs, Land, Hegemony and Resistance The Case of Botnia/UPM in Uruguay Adrián Groglopo Department of Sociology Umeå University 2012 This work is protected by the Swedish Copyright Legislation Act (1960:729) © Adrián Groglopo ISBN: 978-91-7459-530-7 ISSN: 1104-2508 Printed by Print & Media, Umeå, Sweden, 2012 Cover photo by the author For my children Micaela, Lucas and Nicolas Acknowledgements Finally the moment of writing my acknowledgements! Although I would like to begin with “It has been a journey…”, more than a journey it was a time of struggle. And for me it has also been a rich process of learning. It was a struggle not only to go through and understand theories and empirical data but, even more so, the power of social processes and the differences in people’s understandings. This goes not only for the things I found in the fieldwork, but also for the very making and writing of this thesis. In this struggle I had very good companions that have supported me spiritually, theoretically and institutionally. First of all I want to give my most sincere thanks and appreciation to all the respondents and the people who contributed to the study during my fieldwork in Uruguay and Argentina. Thank you so much for taking your time to talk, showing me places, giving me tips and having coffee with me in order to make me understand. I’m truly indebted and thankful to my two supervisors Aina Tollefsen and Simon Lindgren. To Aina Tollefsen for her invaluable knowledge that has guided me in my writing, and also for her support during the whole process of this struggle. To Simon Lindgren for his incredible knowledge and patience to structure me in the worst and best moments of this process, and for his ability to negotiate. Thank you both so much for your abilities, presence and loyalty in this struggle. My most sincere and special thanks to Nora Räthzel, because this dissertation would not have been possible without her. Thank you for giving me this opportunity during the whole process! I would also like to warmly thank Irene Molina and Diana Mulinari for their intellectual activism and support during the whole struggle of writing, thinking and living in Sweden. Thank you so much for making me think and for being there. Two persons at the Department of Sociology in Umeå have been extremely helpful: Daniel Larsson and Per Wisselgren. Thank you so much for your critical readings and comments of my texts. You have helped me a lot. My special thanks goes to my uncle Maximo Garcia Reyes in Buenos Aires for his guidance and contacts during the fieldwork. Juan Bortheiry, Ana Rodríguez i and Leda Chopitea Gilardoni really helped me out in Montevideo. Thank you so much. My warmest thanks to Sara Bonfanti for being there to listen to my crazy theories. You are the best flatmate ever! To Suzanna Bondesson for her patience and care during many years. To Hjördis Myhr and Jukka Leinikka for their invaluable hospitality and their warm spirit. Without their warm teachings in the art of Tango I would not have been able to write this dissertation. Thanks also to Eva Arvidsson for being there to grow together in this art. Sincerely thanks to all my friends that have understood my absence and still continued to invite me to meetings and parties. I’m very thankful to Lena Sawyer for her friendship and support during this process. To Jorge Martorell, for his analytical support and friendship through our diasporial years. To my brother of life, Pablo Basualdo, for the long talks and deepest analysis about and during life. I’m proud to have you as my friend in this life-journey. My love goes to my distant family: my mother Susana Garcia Reyes and my brother Andres Moscovich for being a source of strength, support and encouragement since my childhood. Mom you taught me to fight in life. Thank you so much! To the memory of my grand mother Elda Maria Martino who taught me to live, to be present and to have faith. And to my loves, my children Micaela, Lucas and Nicolas, for having the patience and understanding to have me as your father. This book is for you. Although this time it does not begin with: Mitt inne i djungeln, under det högsta trädet, brukade Leopold ligga och drömma... ii Contents Acknowledgements ............................................................. i Contents ............................................................................ iii I. FRAMEWORK ............................................................. 1 1. Introduction ..................................................................... 3 Aims and research questions ......................................................................... 3 Background to the case .................................................................................. 5 Disposition of the thesis .............................................................................. 13 2. Theoretical framework .................................................. 15 Coloniality of power ...................................................................................... 15 Absolute, relative, and relational space ...................................................... 19 Uneven geographical development of capitalism ....................................... 23 The web of socio-ecological life ............................................................................................. 23 Accumulation by dispossession ............................................................................................. 25 Dependency theory ...................................................................................... 30 Dependency and development .............................................................................................. 32 Development of underdevelopment ...................................................................................... 34 Internal colonialism ..................................................................................... 35 Theoretical synthesis ................................................................................... 38 Accumulation by dispossession through coloniality of power ............................................. 39 Hegemony by (logics of) coloniality ...................................................................................... 45 3. Previous research .......................................................... 55 The role of TNCs in the world economy ...................................................... 55 TNC investments and natural resources in Latin America ......................... 60 TNCs and the “green” paradigm .................................................................. 63 The foreignisation of land ............................................................................ 68 The impacts of afforestation in Uruguay ..................................................... 74 Botnia/UPM and labour conditions ............................................................ 77 Research on foreign direct investments in other scientific fields ............... 80 4. Methodological considerations ..................................... 83 Methodological flexibility ............................................................................ 83 The position of the researcher ..................................................................... 85 Entering the field ......................................................................................... 87 Doing the field work .................................................................................... 91 The data material ......................................................................................... 96 Method of analysis ....................................................................................... 98 5. Botnia/UPM and the land question in Uruguay ............ 101 The background of capitalist expansion in Latin America ........................ 101 iii The land question in Uruguay ................................................................... 109 Land distribution and the consolidation of classes ............................................................. 112 The new geophagous ............................................................................................................ 118 Legislative changes related to land, forestry, and investments ................ 123 The law of rural leasing ....................................................................................................... 123 The law of public limited companies (Sociedades Anonimas) ............................................ 125 Bilateral Investment Treaties ............................................................................................... 131 Free Trade Zones ................................................................................................................. 134 Forestry law .......................................................................................................................... 137 The expansion of the industry of pulp and paper ..................................... 143 The shift in industrial forestry from North to South ................................ 146 Pulp mills in the southern cone ................................................................. 149 The arrival of Botnia .................................................................................. 153 II. EMPIRICAL CASE STUDY ..................................... 159 6. Introducing the TNC in the region ............................... 161 A short history of Uruguay ......................................................................... 161 The local history of “El Anglo” .................................................................. 163 Introducing the TNC to the community .................................................... 165 Conclusion .................................................................................................. 171 7. Establishing the TNC in the local community ............... 173 The image of the TNC as a socially responsible actor ................................ 174 Conclusion: Silence and acceptance ........................................................... 179 8. Transforming the local economy ................................. 181 Changing conditions ................................................................................... 181 Creating hegemony .................................................................................... 184 Conclusion ................................................................................................. 188 9. Following the traces of colonial history ....................... 191 A history of being “the Other” .................................................................... 191 “We are accepting” ..................................................................................... 194 “We are the People” ................................................................................... 198 Conclusion ................................................................................................. 203 10. Consequences of the process of afforestation ............. 205 The socio-environmental impact of afforestation ..................................... 205 Demography, forestry workers, and the conditions of (un)employment . 214 Conclusion ................................................................................................. 219 11. The formation of resistance ........................................ 221 The mobilization ........................................................................................ 222 “Asembleistas”: a networked and non-hierarchical form of resistance ... 231 Conclusion ................................................................................................. 242 iv III. CONCLUSIONS .................................................... 243 12. Results of the case study ............................................. 245 Making the TNC indispensible .................................................................. 245 Dominating the spaces of communication ................................................ 245 Controlling the narratives ......................................................................... 246 Contradictions of external and internal colonialism ................................ 247 Establishing and maintaining hegemony .................................................. 247 Knowledge and power ............................................................................... 249 13. Conceptual discussion ................................................ 255 Capitalism with colonial designs ............................................................... 255 Re-articulated models of dependency and new forms of domination ...... 257 Three hegemonic projects ................................................................................................... 258 Appropriation by coloniality ..................................................................... 261 Poniendo el cuerpo y/and telling another story ....................................... 263 14. Works cited ................................................................ 267 Literature ................................................................................................... 267 Reports and digital documents ................................................................. 279 Newspapers and magazines ....................................................................... 284 Argentinian Newspapers ..................................................................................................... 284 Uruguayan Newspapers ....................................................................................................... 284 Magazines ............................................................................................................................ 285 Lectures and digital material ..................................................................... 286 Web links ................................................................................................... 287 v vi