The New Bourgeoisie and the Limits of Dependency

The New Bourgeoisie and the Limits of Dependency: Mining, Class, and Power in Revolutionary Peru

David G. Becker
Copyright Date: 1983
Pages: 448
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  • Book Info
    The New Bourgeoisie and the Limits of Dependency
    Book Description:

    The author clarifies the mutually constructive relationship between transnational and the modernizing Peruvian state, showing how the state maintains this relationship while simultaneously nurturing the new class.

    Originally published in 1983.

    ThePrinceton Legacy Libraryuses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

    eISBN: 978-1-4008-5323-6
    Subjects: Business, Sociology

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
  3. List of Tables
    (pp. ix-x)
  4. List of Figures
    (pp. xi-xii)
  5. Glossary of Acronyms
    (pp. xiii-xvi)
  6. Foreword
    (pp. xvii-xx)
    Richard L. Sklar

    Industry is the great arch of modern civilization. In all societies, material culture is molded, like putty, by the driving force of industrial development. The underlying and constitutive principles of industrial organizations are political as well as economic. In newly industrializing countries the political foundations of an industrial order are clearly visible. Industrial civilizations are reared upon systems of government and law which facilitate the mobilization of labor, training of specialists, taxation, accumulation of capital, fiscal management, foreign exchange, and many other processes of industrial construction. These requirements are common to all industrial orders regardless of whether they are constructed...

  7. Preface
    (pp. xxi-xxviii)
  8. PART I: Introduction
    • CHAPTER ONE Development, Class, and Dependency
      (pp. 3-16)

      This is a study of political power and social control in Peru. The much-discussed “revolution from above” imposed by the military from 1968 to 1980 forms the backdrop against which it is set. Its major aim is to show how the organization, distribution, and uses of power have been affected by the country’s chief export industry, nonferrous metal mining. But that is not all. The industry produces for the international market and has long been shaped by direct foreign investment. Consequently, the study is also a vehicle for comprehending the nature and significance for national development of the interaction between...

    • CHAPTER TWO Peru: Un País Minero
      (pp. 17-48)

      A nation of 18 million people in possession of the third largest political subdivision of South America, Peru is one of the three Andean countries (with Bolivia and Ecuador) where pockets of Inca-era peasant culture can still be found. That fact has endeared it to tourists and anthropologists alike. It has also conjured up in many minds an image of an urban-based, mostly white, culturally Western elite riding herd over a far larger rural, mostly Indian, culturally traditional mass. Such an image was quite valid thirty years ago.¹ It has since become far less so.

      Modern Peru is a racially...

    • CHAPTER THREE Mining Policy and Policymaking after 1968
      (pp. 49-71)

      Our purpose in this chapter is to review the mining policy goals and framework adopted by the military government—the first step in comprehending why it acted as it did in the situations that we will examine later on. (We will also review the minor policy changes adopted by the civilian government after 1980.) Policymaking in the mining sector was primarily influenced by three factors, and we shall discuss each of them in turn. They are: (1) the historical evolution of the process of Peruvian development and of the mining industry’s role therein—particularly, the failure of the industry to...

    • CHAPTER FOUR World Industries and World Markets in Nonferrous Metals
      (pp. 72-92)

      Neither Peruvian policymakers, nor transnational mining companies, nor the smaller firms of the mediana minería are free to act just as they please if they hope to secure their respective interests. Instead, the field of action realistically available to any of these actors is bounded by the institutions, structures, and practices of the international mining and metals industries and their markets. The latter-day OPEC experience surely points up the unwisdom of assuming that these fields of action can be specified in the abstract on the basis of supposed world capitalist system-maintenance exigencies. On the other hand, government policymakers in particular...

  9. PART II: Mining Transnationals and the Peruvian State
    • [PART II Introduction]
      (pp. 95-96)

      In Part I we made our acquaintance with the principal actors, institutions, and structures that have influenced the impact of the Peruvian minería on national development. We discovered that after 1968 the military regime sought a rapid increase in the volume and value of mining exports as the key to a bonanza development strategy focused on heavy industry. At the same time the strategy called for segmental incorporation of certain popular sectors—those most likely to go over into opposition, and to make their opposition effective, if not economically mollified—to be continued and extended. We have seen that the...

    • CHAPTER FIVE Southern Peru Copper versus an Assertive State: The Cuajone Project
      (pp. 97-131)

      The Southern Peru Copper Corporation and its majority parent, Asarco, had been since the 1950s the stellar representatives of modern, oligopolistic transnational mining capital in Peru. They had entered the country at a time when neocolonialism, though still present in the form of oligarchic social supremacy and political-economic domination, was on the wane with the rise of industrialization and medium-mine development. Their operations, highly capital-intensive from the start and physically located in a desert region where few peasants lived, had little direct impact on local populations. (We will see later on that the bulk of Southern’s small work force was...

    • CHAPTER SIX The Decline and Fall of Cerro de Pasco
      (pp. 132-166)

      The experience of Southern Peru Copper shows that it was possible in certain circumstances for a transnational mining company to work out a mutually acceptablemodus vivendiwith Peru’s “revolutionary” military regime. However, the Southern experience was not universally replicated. At the same time that it and the government were feeling their way toward an accommodation, Cerro was finding it much harder to do likewise. In the end, all chance for accommodation disappeared, and the foreign company with the longest record of continuous operation in the country was expropriated. We now know that the Peruvian military establishment was not doctrinally...

  10. PART III: Institutional Foundations of the Peruvian Mining Bourgeoisie
    • [PART III Introduction]
      (pp. 169-170)

      The two preceding chapters have dealt with the nature of relations between the Peruvian state and transnational (in the formal definition) mining enterprises. We discovered that the position of a foreign mining corporation in the world nonferrous metals oligopoly significantly affects its ability and willingness to harmonize its global interests with “good corporate citizenship” on the part of its local subsidiary. Nonetheless, it remains within the host government’s capabilities to adopt a definition of “good corporate citizenship” in law and administrative regulation and to sanction deviant corporate conduct, just as is done with regard to individuals. Colonial companies—those which...

    • CHAPTER SEVEN The Medium-Mining Subsector
      (pp. 171-200)

      Peru stands alone among the major less-developed mineral-exporting countries in having an economically significant element of medium-scale private enterprise, much of it locally owned, operating in the resource industry. Chile has a national mediana minería, as does Mexico. But Chile’s produces mainly coal, iron ore, and nonmetallic minerals for domestic consumption and is in any event swamped by the great size of her gran minería; while Mexico’s is relatively small in comparison to the indigenous manufacturing sector. In contrast, the Peruvian mediana minería produces mostly nonferrous metals for export, exactly as the large mines do. Moreover, the nation’s smaller industrial...

    • CHAPTER EIGHT Parastatal Enterprise in Peruvian Mining
      (pp. 201-232)

      The object of our concern in this chapter is the effort of the Peruvian state to fill the economic space left vacant in the mining sector by the private domestic firms, whose financial resources have limited their further expansion; and by the transnational oligopolists, who, except for Asarco, have not hurried to invest in the country.

      Other Third World mineral-exporting countries have turned to state entrepreneurship for the realization of political and ideological objectives: cementing central state control over the national territory (Zaire), eliminating vestiges of racism and promoting socioeconomic equality (Zambia), or attacking inequitable aspects of the world economic...

  11. PART IV: Mining and Development:: A Class Analysis
    • [PART IV Introduction]
      (pp. 235-236)

      Up to this point, our analysis has centered upon institutions—although we have taken pains to demonstrate the salience of institutional structures and relationships in shaping class interests and in constituting vehicles for the expression of class power. Dependency propositions have not fared well. Few signs of structured dependency relationships were discerned in regard to the transnational enterprise sector, where the Peruvian subsidiaries either conformed to local policy dictates of the state or were suitably disciplined; in regard to the domestic private sector, where dynamic corporate growth under national-bourgeois auspices accelerated without furthering dependence on Peruvian or foreign finance capital;...

    • CHAPTER NINE The Bourgeoisie and Middle Class of the Minería
      (pp. 237-278)

      A class is defined by a mutual interest in political power and social control. To the degree that a class has a national identity, it is because the common class interest is geographically delimited—not because the members are citizens of a particular country. A national bourgeoisie is one whose concerns derive preponderantly from considerations of a local conjuncture, even if influenced in great measure by external forces. We have observed that the reformed Peruvian state is not a handmaiden of transnational resource corporations’ global concerns; that there are also domestic mining firms; and that these, though participants in international...

    • CHAPTER TEN The Mining Industry and the Claims of Labor
      (pp. 279-320)

      In the advanced capitalist countries, and particularly in the Western European social democracies, politics has largely evolved into an effort to preserve and protect bourgeois ideological hegemony in the face of a more powerful working class while, at the same time, promoting the restructuring of capital and improving the conditions for its accumulation. This is one of the typically contradictory processes of late-capitalist development. The attempt to resolve the contradiction has conduced to a characteristic feature of late capitalism: the rise of corporatist forms of interest intermediation.

      Such forms entail a greater presence of working-class interests inside the state, to...

  12. Conclusions
    • CHAPTER ELEVEN The New Bourgeoisie and the Limits of Dependency
      (pp. 323-342)

      Paul Baran was an astute critical observer of the capitalism of his time. Writing at the height of the Cold War, he argued that “the main task of imperialism” was “to prevent, or . . . , to slow down and to control the economic development of underdeveloped countries.” He held that Third World development was “profoundly inimical to the interests of foreign corporations producing raw materials for export.” It raised “the mortal threat of nationalization. . . .” Worse, it increased the class consciousness and economic bargaining leverage of labor, forcing wages up. This had especially adverse consequences for...

  13. Appendices
    • APPENDIX A Miscellaneous Data
      (pp. 345-353)
    • APPENDIX B Mining Policy Guidelines and Legislation of the Military Regime
      (pp. 354-360)
    • APPENDIX C A Comparison of Key Provisions of the Toquepala and Cuajone Basic Agreements
      (pp. 361-364)
    • APPENDIX D Statutory Rights and Privileges of Peruvian Mine Workers
      (pp. 365-368)
  14. Bibliography
    (pp. 371-408)
  15. Index
    (pp. 409-419)
  16. Back Matter
    (pp. 420-420)