AbstractNatural resources, principally minerals, agriculture and forestry, underpin the economic achievements of Chile. As a consequence of this, successive governments have had to develop policies that encourage growth while protecting the country's resources, heritage and biodiversity. A major challenge has been to redress historical injustices perpetrated against indigenous people plus resolving present day conflicts between these people and encroaching industries, particularly from the forestry and energy sectors. A balance is needed between the price paid for economic advancement and the destruction of indigenous people's cultural heritage. Conflicting government legislation has complicated the situation. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.