Fuelling Social Inclusion? Neo†extractivism, State–Society Relations and Biofuel Policies in Latin America's Southern Cone

Scholarship on neo†extractivism agrees that this ‘post†neoliberal’ model of development is founded on an inherent contradiction between the commitment to continue natural resource extraction and the need to legitimize these activities by using their revenues for poverty reduction. Using the cases of the national biofuel policies of the ‘post†neoliberal’ governments of Argentina, Brazil and Uruguay, this article enquires why and how these policies emerged, how they were implemented, and how the resulting national experiences exemplify the inherent contradictions embedded in neo†extractivist policies. Adopting a strategic†relational approach to analyse state–society interaction, it is argued that the scope of progressive policies is conditioned to a large extent by pre†existing social structures, institutions and state–society interactions. The article shows how progressive reforms intersect with the prevailing interests of agribusiness and state actors and are recast and used for different ends as these interact with powerful actors such as the multinational soybean complex and agrarian movements. It is suggested that the prevailing over†emphasis in the neo†extractivist literature on the politics of domination and contestation overlooks the multiple and complex rural responses of the different progressive governments. It also obscures the possibilities to explore the ruptures and continuities of these countries’ governments with previous models, and therefore fails to recognize state advances.