International hands off! why international financial institutions must stop drilling, piping and mining Yanacocha gold mine in Peru

This December 2003 report by Friends of the Earth International argues that International Financial Institutions (IFIs), including multilateral development banks and bilateral export credit agencies, should phase out funding for the extractive industries. The document contends that IFI-supported oil, gas, and mining projects frequently lead to environmental disasters, human rights abuses, and the marginalization of indigenous peoples, while failing to alleviate poverty in resource-rich developing nations.

• International Financial Institutions (IFIs) use public taxpayer money to support the exploitation of oil, gas, and mineral resources, often pressuring poor countries to open up to foreign investment. This export-led development model is described as devastating for local communities, leading to soaring poverty and ravaged ecosystems while primarily benefiting transnational corporations.
• The report identifies a 'resource curse' where countries with abundant natural resources often perform worse economically than those without. It cites an analysis of 97 countries showing that those with a high ratio of natural resource-based exports to Gross Development Product tended to grow more slowly.
• Extractive industry projects are linked to severe human rights violations and militarization. In Colombia, the report states that 90% of human rights violations occur in mining and petroleum districts, with one union leader assassinated every month on average.
• Mining and fossil fuel extraction frequently marginalize indigenous peoples by destroying their cultural identities and environments. In Peru, the Camisea gas project is reported to have wiped out 42% of the Nahua population through the introduction of diseases such as the flu.
• The report highlights significant environmental disasters linked to IFI funding, such as the 1993 Marcopper copper mine spill on Marinduque Island in the Philippines, which poisoned the Mogpog River and killed two children. It also notes the 2000 mercury spill at the Yanacocha gold mine in Peru, which poisoned over 900 people.
• IFIs are accused of contributing to climate change by subsidizing fossil fuel operations despite international agreements like the Kyoto Protocol. The World Bank Group provided over US$24 billion for fossil fuel power and production between 1992 and the end of 2002.
• The report argues that the claim that extractive industries create employment is a myth, as modern operations are highly capital-intensive and mechanized. Most jobs are short-term construction roles, and the loss of traditional livelihoods often outweighs the new employment created.
• Friends of the Earth International recommends that IFIs establish a plan to phase out investments in extractive sectors and immediately create 'no-go areas' in protected zones, indigenous territories, and areas of armed conflict.

APA

Friends of the Earth International (2003). International hands off! why international financial institutions must stop drilling, piping and mining Yanacocha gold mine in Peru. https://www.foei.org/wp-content/uploads/2020/12/handsoff.pdf

Chicago

Friends of the Earth International. International hands off! why international financial institutions must stop drilling, piping and mining Yanacocha gold mine in Peru. 2003. https://www.foei.org/wp-content/uploads/2020/12/handsoff.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=International hands off! why international financial institutions must stop drilling, piping and mining Yanacocha gold mine in Peru |date=December 2003 |url=https://www.foei.org/wp-content/uploads/2020/12/handsoff.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternational2003international, author = {{Friends of the Earth International}}, title = {{International hands off! why international financial institutions must stop drilling, piping and mining Yanacocha gold mine in Peru}}, institution = {Friends of the Earth International}, year = {2003}, month = dec, url = {https://www.foei.org/wp-content/uploads/2020/12/handsoff.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }