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Energy transition, new state capitalism? Changing state roles in the production networks of critical minerals in Chile

Dates:6 June 2024
Times:14:00 - 15:30
What is it:Seminar
Organiser:Global Development Institute
Who is it for:University staff, External researchers, Adults, Current University students
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  • By Global Development Institute

Seminar organised by the Cities, Politics and Economies (Geography) and Global Production Networks, Trade, and Labour (GDI) research groups.

Speaker: Dr. Felipe Irarrázaval, Investigador postdoctoral, Pontificia Universidad Católica de Chile

The energy transition and the geopolitical reconfiguration of global production networks are reshaping the relationship between mining and governments. While many aspects of this evolving relationship suggest a revitalization of the state's role in the economy, it is crucial to understand the specific forms, purposes, and strengths of state intervention. This paper contributes to such endeavor by examining processes of continuity and change in state roles in the production networks of copper and lithium in Chile. In lithium production networks, the state is actively pursuing models of hybrid governance to stimulate economic upgrading. On the other hand, the state has maintained its facilitator role with a focus on leading green mining in copper mining. This article's contribution is twofold. Firstly, the exploration of hybrid governance in lithium production demonstrates that the state's producer role can foster economic upgrading through contracts rather than direct operational control. Secondly, the comparative analysis of two critical minerals within a single country identifies key drivers influencing the processes of continuity and change in state roles. This highlights that the contemporary resurgence of the state is not merely an outcome of current struggles and contingencies but is also shaped by the sedimented histories of institutional arrangements.

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