The Shady Side of Consultation and Compensation: ‘Divide‐and‐Rule’ Tactics in Bolivia's Extraction Sector

The rights to prior consultation and compensation have been established within the framework of international indigenous peoples’ rights. However, in practice these processes have often gone hand in hand with adverse social consequences for local populations, such as the exacerbation of conflicts, the division of communities and the weakening of indigenous organizations. These phenomena have received little attention, despite their great relevance for these populations. This article sheds light on the use by the Bolivian state and extraction corporations of exclusionary participation and negotiation processes, on the one hand, and ‘carrot‐and‐stick’ techniques on the other, which have together accounted for negative social impacts on the ground. The article is based on recently conducted field research, focus group discussions and semi‐structured interviews in Guaraní communities in Bolivia. The findings extend the existing literature by providing a fine‐grained and systematic analysis of divisive undertakings and their sociocultural and sociopolitical consequences in neo‐extractivist Bolivia. The broader implications of the study add to academic debates about participation in development, about ‘divide‐and‐rule’ tactics and about the practice of indigenous peoples’ rights.