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Friday, November 11, 2016

Resource curse in weak states: Link between economic resources and violence or war.


Ayenka Franklin
MSc Social Science and International Relations (PUCA)
Peace and Development
Program Assistant at Ecumenical Service for Peace

Key word: conflict, economic resources, weak states

This work is a conceptual analysis centered on the opinions and works of scholars about natural resources and their relationship to violence in politically weak resource states. Since the late 1990s, many scholars have studied the relationship between natural resource wealth and war especially in Africa. Most have been motivated by a series of the high-profile conflicts – in Angola, the Democratic Republic of Congo, Liberia, Sierra Leone, Nigeria and the Sudan (which today exist as two separate sovereign political entities) – that have captured the attention of international organizations and the media. The works of Keen (1998), Collier & Hoeffler (1998), Reno (1995, 1998), Berdal & Malone (2000)[1] have this analysis. So, what can these studies tell us about the relationship between natural resources – including oil, gas, non-fuel minerals, gemstones, narcotics, timber, and agricultural products – and violent conflicts? The answer might be not too much, because the literature about war is still incomplete and changing from symmetric to asymmetric and sometimes not able to exhaustively explain why and how violent conflicts happen and cannot be managed easily or avoided. Only in the last decade, case study analysis and quantitative studies have been carried out. To define war and violence, scholars, have used a number of methods and consider several features, nevertheless many cases are difficult to handle because of the lack of important data.[2]
Collier’s study (1998) is one of the first to apply empirical economic data to the analysis of war and the relationship thereof. In particular, his objective is to measure the influence of some variables on the incidence of war and violence, and the risk of the onset of conflict. Collier and Hoeffler (1998) investigate violence globally and economic causes. They elaborated two versions of the same model that differ in some premises and outcomes. The comparisons of war data set are used and modified by authors of extra-systemic wars and conflicts with all data available in their sample. Both versions of the model had a big diffusion and were followed by a great and controversial debate.[3] Though some authors reach varying conclusions on some aspects in the relationship between resources and conflicts, and whether or not natural resources influence the onset, duration and the types or subtypes of conflict, and the set of resources that are more likely linked to conflict, it is understandable that resource possession and governance have been center stage of many violent conflicts in Africa.
To supporting these facts, Buchaman and Faith (1987)[4], Collier and Hoeffler hold that the “allure of claiming ownership of a natural resource discovery gives the populations in peripheral regions an incentive to establish sovereign states[5]. Though this is mostly influenced by conflict entrepreneurs who have economic benefit from war than from than from peace, we have seen populations sway easily to their dictates and manipulative tendencies in the Sudan, in Nigeria and the Democratic Republic of the Congo (DRC) with cataclysmic consequences. In his 2001 work Billion argues that secessionist actions are more likely when a resource is physically concentrated, appropriated by locals and requires foreign investment. Using labor intensive process to extract natural resources, which offers fewer benefits to the state than larger extraction firms, separatist rebellions are more provoked.[6] Since oil wealth might increase the value of controlling the state, it’s obvious that it can cause violence suggests Billion, Fearon and Laitin. Ross adds that oil and other mineral resources encourage foreign parties to support or start wars because mineral wealth increases the benefits of intervention.
In addition, Switzer (2001)[7] and Klar (2001)[8] hypothesize that the extraction process of natural resources led to community-level grievances such and pollution and destruction of ancestral property may lead to violent conflicts. Humphreys’ view is that resource-dependent countries are more susceptible to trade shocks, and when economies crash and suffering sets in it might lead war and that commodities that can be looted such as gemstones, drugs, and timber have a direct link to conflict as the can be used to finance war or create disputes over ownership.[9] At this juncture, it is therefore ideal to use Ross’ analysis on conflicts, that wars, symmetric or asymmetric  have been and are prominent in natural resource producing countries Africa. In essence, Stedman joins in to say that “no peace agreement has been successfully implemented where there are valuable easily marketable commodities such as gems or timber”. Global Witness, 2002 said that in Cambodia, Liberia and DRC both timber and gemstone maintained that viability of the military force of Khmer Rouge rebels in Cambodia (1989-1995)[10]
Graphic Representation of the Resource Trap

The conclusions to drawn from the graphic presentations above with starting point being institutional quality and how it affects the management of resources and then lead to economic development or conflict are:
Firstly, natural resources affect economic growth and national income as well as human behavioral patterns. To trace the link between economic resources and conflicts, from the presentation, the quality of institutions worsens leading to war or improve leading to economic development depending on the management of resources. If resource governance is democratic and inclusive, it leads to economic growth and reverses back to better management and strong institutions. If resource management is poor, there is a likelihood that it will create income inequalities, poor service and production sectors and low levels of per capita income which increases risk of war and violence, because it creates a 1% of strong individuals instead of strong institutions who can finance opposition groups easily to continue their ownership of resources. Hypothetically, low economic development creates social conditions that may pressure for socio-political change and conflict be it nonviolent demonstrations against inequality and injustice, or through violent means.
Nevertheless, resources if not properly managed provide proceeds for corrupted political behaviors, and an unearned revenue for the state, which in weak economies weakens the state’s ability to provide social physical security to its inhabitants. Weaker institutions are more likely to create grievances and are less able to cope with violent insurgencies and wars.
Yet again natural resources can be looted by opposition groups that use them to obtain finance to start a war and prolong hostilities, that is, natural resources finance opposition groups to continue politics by means of war as the war theorist and diplomat Carl Von Clausewitz would put it. In warfare, rebels can exploit more natural resources in illicit production and trade and increase their profits, and perhaps prolong hostilities.[11]



[1] Also, see, Michael L. Ross, What Do We Know About Natural Resources and Civil War, 2004 Journal of Peace Research, vol. 41, no. 3, 2004, pp. 337–356 Sage Publications (London, Thousand Oaks, CA and New Delhi) www.sagepublications.com
[2] Manuela Travaglianti, The Role of The State In The Natural Resources And Civil War Paradigm. In Jean Monnet Working Paper in Comparative and International Politics. October 2006 - JMWP n° 61. P 3
[3] Ibid. p 6
[4] Also, see, Buchanan, James M. & Roger L. Faith, 1987. ‘Secession and the Limits of Taxation: Toward a Theory of Internal Exit’, American Economic Review77(5): 1023–1031.
[5] Collier, Paul & Anke Hoeffler, 2002a. ‘Greed and Grievance in Civil War’, Oxford University, Centre for the Study of African Economies, Working Paper 2002–01 (http://www.csae.ox.ac.uk/workingpapers/pdfs/2002–01text.pdf).
[6] Ross, Michael L., 2001b. Extractive Sectors and the Poor. Washington, DC: Oxfam America.
[7] Switzer, Jason, 2001. ‘Armed Conflict and Natural Resources: The Case of the Minerals Sector’, Report No. 12, Minerals, Mining, and Sustainable Development, International Institute for Environment and Development, July
(http://www.iied.org/mmsd/mmsd_pdfs/jason_switzer.pdf)
[8] Klare, Michael T., 2001. Resource Wars. New York: Metropolitan
[9] Humphreys, Macartan, 2003. ‘Natural Resource, Conflict, and Conflict Resolution’, paper prepared for the Santa Fe Institute/Javeriana University ‘Obstacles to Robust Negotiated Settlements’ workshop, Bogota, 29–31 May
(http://www.santafe.edu/files/gems/obstaclestopeace/hymphreys.pdf).
[10] Global Witness, 2002. ‘The Logs of War: The Timber Trade and Armed Conflict’, Programme for International Co-operation and Conflict Resolution, Fafo-report 379, March (http://www.fafo.no/pub/rapp/379/379.pdf)
[11] Manuela TRAVAGLIANTI, opcit, pp 23 – 25 

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