Natural Resources and Conflict  | | Illicit trade in "Conflict diamonds" is both a cause
and an effect of conflict in Sierra Leone.
USAID / OTI's Peace Diamond Alliance is an
important step toward improving control and
management of this industry.
| The Issues The idea that the degradation of and competition over natural resources is linked to deadly conflict has received a great deal of attention over the past decade. It has been argued that environmental scarcity leads to a host of political and social ills that fuel conflict, including population transfers, weakened state institutions and a heightened sense of grievance. Another issue is the political economy of natural resource control, including competition over the control and management of land and other critical resources such as water, timber, oil and valuable minerals. Additionally, negative political and economic effects can result from over-dependence on natural resources which can create what is known as the "resource curse', namely that as a general rule natural resource-rich countries under-perform relative to countries with fewer natural resources because of a lack of economic diversification and over-dependence on those natural resources.
Development practitioners are increasingly aware of the relationship between natural resources, land and violent conflict. This is true whether we are talking about how natural resource and land issues may function as causal or aggravating factors in violent conflict, or whether we are thinking about the particular resource-related issues that arise in post-conflict settings.
Our Work The Office of Conflict Management and Mitigation (DCHA/CMM) provides technical expertise to USAID’s missions with the aim of raising awareness, facilitating understanding of these issues, and assisting in the development of conflict sensitive programming. Toward that end, the office developed a series of toolkits on natural resources and conflict with focuses on forests, land, and minerals. Future toolkits are also proposed on oil and natural gas, and water. The toolkits provide a practical introduction to these issues and as well as a range of potentially relevant programmatic interventions. DCHA/CMM also works with USAID programs in-country by providing financial assistance and technical guidance. For example, in Burundi, DCHA/CMM provided funds for activities that mitigate land-related conflict. These activities address transitional issues, particularly those related to the most immediate threats and development objectives once the transitional period ends. They seek to address the land issue in two ways: first by creating a “breathing room” within which a participatory dialogue on land and resettlement can take place as developing policies related to land is a longer term process and second, to create livelihood and food security opportunities to stimulate economic development. DCHA/CMM also supported activities in the Niger Delta, Northern Nigeria, and Plateau State that will link mediation efforts to concrete development activities that address underlying causes of violence such as competition over land or the erosion of traditional livelihoods in the Delta.
In the Democratic Republic of Congo, DCHA/CMM provided financial assistance to the Mission and examined options to engage the private sector in advancing peace, security and sustainable development. Recent investments in the mining sector provide the Mission a unique window of opportunity to leverage the interest shown by international mining companies in developing strong corporate social responsibility programs that will benefit the local populations. The approach began with Katanga Province where significant investments are being made in the mining sector. The Mission is currently funding Pact to carry-out such a program.
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