While natural resources hold the potential to stimulate economic growth and socioeconomic improvements, this growth is not innately inclusive or transformational, and has the potential to undermine statebuilding and peacebuilding objectives. Therefore, policies to reduce the conflict potential of natural resources are necessary (UNDP 2008). For natural resources to contribute to inclusive and sustained post-conflict economic growth, it is critical to improve the transparency of resource management (IMF 2007). The UNDG (2013) and the United Nations Interagency Framework Team for Preventative Action (2012) suggests that transitional post-conflict environments provide opportunities to transform and rebuild natural resource management (NRM) systems in ways that would otherwise be more difficult to achieve. The UN agencies acknowledge that the key challenges in this area are identifying which natural resources have the greatest potential for contributing to (or undermining) peace, how they should be managed, and which stakeholders should be engaged, including governments, international organisations, civil society and the private sector. They emphasise the importance of transparency, stating that, in order to contribute to peace efforts, natural resource management systems need to allow for decisions to be challenged by various stakeholders without violence. In this way natural resources can change from a cause of conflict into a government commitment to peace and development and, although this process may be supported by external actors, it must be driven from within.
The premise put forward by Brown (2013) is that improved NRM is a form of peacebuilding in that it encourages the development of clear and fair systems of ownership; creates mechanisms to resolve disputes; and promotes the equitable sharing of benefits. This is echoed by the United Nations Department of Economic and Social Affairs (2004) which states that the governance and management of natural resources are core tools for preventing conflict. A more detailed framework is put forward by Grundel (2010) who notes that natural resources can be used to promote peacebuilding and post-conflict economic recovery via the following principles:
- the importance of transparency and accountability by governments in their management of natural wealth and its revenues;
- the need to involve civil society, particularly local communities, in defining and implementing plans for the better management of natural resources;
- the important role that responsible resource extraction and processing companies can play in improving wider governance conditions within the sector;
- the potential of international standards and initiatives to provide guidance and set benchmarks for various public and private actors.
There are a range of transparency and accountability initiatives (TAIs) in the extractives sector covering licensing, exploration, contracting and extraction, as well as revenue generation and the allocation of natural resource revenues (Mejía Acosta 2013). Examples include Publish What You Pay (PWYP), the Extractive Industries Transparency Initiative (EITI) which advocates a global standard for transparency among business and governments, OECD’s due diligence guidelines for responsible supply chain management of minerals from conflict-affected areas, and the IMF’s encouragement of oil-producing countries to publicise data on oil production.
A survey of TAIs in the extractives sector conducted in 2012 (Mejía Acosta 2013) calls for a more explicit understanding of how civil society can affect specific transparency outcomes. The survey reveals that there are few rigorous attempts to show how greater accountability and transparency may lead to improved governance outcomes. There are challenges in distinguishing between the direct and indirect contributions that TAIs make to improve natural resource governance, and the lack of precision in identifying the contributing factors to improved resource governance, such as education levels, the strength of the rule of law, the roles of the judiciary and other institutions (Mejía Acosta 2014). An EITI assessment of reports concludes that in itself, EITI is not sufficient to eradicate corruption in the extractive sectors. However, it highlights the role such initiatives play in informing public institutions and demonstrating government and company commitment to tackling corruption.
This understanding of transparency, not as an end in itself but as a means to more accountable government, is echoed in challenges around outcome and impact measurement. International donors often focus on inputs (transparency, guidelines, policies), but forget about outcomes (such as accountability, equity, and reduced violence)((Brown 2013). For example, in Afghanistan, where there are progressive laws and regulations on forestry, water and wildlife management, there is little tangible impact due to a lack of capacity to implement them
What works and does not work in natural resource management
Darby (2010) advances four components to ensuring that conflicts can be mitigated through NRG:
- ensuring that local people who are likely to be affected are actively and consistently consulted before and during resource extraction/use;
- providing information regarding the terms of resource contracts, and ensuring that the physical locations of resource concessions are publicly available and easily accessible;
- opening channels of communication between large-scale and local users of a resource, or ways in which local users can report the illegal use of resources;
- tracking and monitoring of the revenues, so that all stakeholders are clearly aware of the beneficiaries.
Brown’s (2013) work supports this, highlighting the need for the international community to invest early on, and systematically, in NRM as a part of peacebuilding programmes. This should also include reducing competition for resources, and improving resource management across boundaries. The importance of good multi-sectoral communication is also crucial, but raises concerns around the constraints that may arise as a result of bargains struck during peace negotiations (UNIFTPA 2012).
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