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Beyond Supply Risks: The Conflict Potential of Natural Resources
›While the public debate about resource conflicts focuses on the risk of supply disruptions for developed countries, the potentially more risky types of resource conflict are usually ignored. As part of a two-year research project on behalf of the German Federal Environment Agency, adelphi and the Wuppertal Institute for Climate, Energy, and Environment have analyzed the risks of international conflict linked to natural resources in a series of reports titled Beyond Supply Risks – The Conflict Potential of Natural Resources.
Resource extraction, transportation, and processing can create considerable crises and increase the risk of conflicts in producing and transit countries. This phenomenon – widely referred to as the “resource curse” – impacts consuming countries only if it leads to shortages and higher prices. However, in the producing and transit countries it can have much wider destabilizing effects – from increasing corruption to large-scale violent conflict. In addition, the extraction, processing, and transportation of resources often create serious environmental risks. Overexploitation, pollution, and the degradation of ecosystems often directly affect the livelihoods of local communities, which can increase the potential for conflict.
The eight reports that comprise Beyond Supply Risks explore plausible scenarios over the next two decades, focusing on four case studies: copper and cobalt in the Democratic Republic of Congo; the Nabucco natural gas pipeline project across Southern Europe and Turkey; lithium in Bolivia; and rare earth minerals in China.
Lithium in Bolivia
Bolivia possesses the world’s largest known lithium deposits, a potentially important resource for the development of electric vehicles. While the development of Bolivia’s lithium reserves could provide major economic benefits for one of the poorest countries in Latin America, our analysis identifies two main potential risks of conflict.
First, the environmental consequences of developing industrial-scale lithium production might have negative effects on the livelihoods of the local population. The local population in the lithium-rich department of Potosí has shown that it is capable of organizing itself effectively in defense of its interests, and past resource conflicts have turned violent, making a conflict-sensitive approach all the more important.
Second, the Bolivian economy is largely dependent on natural resources, and consequently is susceptible to price shocks. At present, this risk is primarily associated with natural gas. But lithium production, if developed, might be subject to the same dynamics, which could potentially destabilize the political system.
For consuming countries, these conflicts threaten supplies of lithium only if local protests or broader destabilization were produce bottlenecks in the supply chain.
Rare Earths and China
Like lithium, rare earths are likewise essential for some new technologies. China’s well publicized monopoly on 97 percent of the global production spurred a heated debate on the security of supply of strategic minerals. While our case study identifies supply risks for consuming countries, it also outlines some of the conflict risks China might face internally.
First, local populations could protest against the severe ecological impact of rare earth mining and production. In addition, conflicts might arise if those who profit from economic development (entrepreneurs or regional power-holders) undermine the traditional centralized party structures and expand their own influence.
International conflicts over access to Chinese rare earth resources, while they dominate the headlines, do not appear to be the dominant risk. Instead, internal political tensions could result in a weakened China that is not able to exploit its monopoly position for foreign policy gains. Or the government could enter into multilateral agreements and thus avoid a confrontational approach towards consumer nations.
Ultimately, the actual rate of diffusion of environmental technologies and the development of new technologies remain the key factors in determining whether relative shortages in global supply of rare earths will in fact occur. If industrialized nations and emerging economies commit to the same technologies to attain climate policy goals, international resource governance and coordinated promotion of (environmental) technology will also play a role in preventing conflict and crisis over rare earths.
The Way Forward
The series concludes with five recommendations to mitigate the risks of future resource conflicts:- Introduce systematic policy impact assessments to understand how policy goals and strategies, especially in regard to climate and environmental policy, interact with resource conflict risks.
- Increase the transparency of raw material markets and value creation chains to prevent extreme fluctuations in prices and improve information on markets, origins, and individual players.
- Improve the coherence of raw material policy by linking raw material policies with security, environmental, and development policies.
- Demand and promote corporate social responsibility along the whole value chain.
- Increase environmental and social sustainability as a means of strengthening crisis and conflict prevention by systematically taking into account social and conflict-related aspects in the resource sector.
The individual reports from the project can be downloaded here:- Conflict Risks (GERMAN only)
- Supply and demand (GERMAN only)
- Case Study: Nabucco Pipeline (GERMAN only)
- Case Study: Congo
- Case Study: Bolivia
- Case Study: China
- Conflict Resolution Strategies (GERMAN only)
- Summary and Recommendations
Sources: Government Accounting Office.
Photo Credit: “Potosí: miners in darkness,” courtesy of flickr user Olmovich. -
Second Generation Biofuels and Revitalizing African Agriculture
›In “A New Hope for Africa,” published in last month’s issue of Nature, authors Lee R. Lynd and Jeremy Woods assert that the international development community should “cut with the beneficial edge of bioenergy’s double-edged sword” to enhance food security in Africa. According to Lynd and Woods, Africa’s severe food insecurity is a “legacy of three decades of neglect for agricultural development.” Left out of the Green Revolution in the 1960s, the region was flooded with cheap food imports from developed nations while local agricultural sectors remained underdeveloped. With thoughtful management, bioenergy production on marginal lands unfit for edible crops may yield several food security benefits, such as increased employment, improved agricultural infrastructure, energy democratization, land regeneration, and reduced conflict, write the authors.
The technological advancements of second-generation biofuels may ease the zero-sum tension between food production and bioenergy in the future, writes Duncan Graham-Rowe in his article “Beyond Food Versus Fuel,” also appearing last month in Nature. Graham-Rowe notes that current first-generation biofuel technologies, such as corn and sugar cane, contribute to rising food prices, require intensive water and nitrogen inputs, and divert land from food production by way of profitability and physical space. There is some division between second-generation biofuel proponents: some advocate utilizing inedible parts of plants already produced, while others consider fast-growing, dedicated energy crops (possibly grown on polluted soil otherwise unfit for human use) a more viable solution – either has the potential to reduce demand for arable land, says Graham-Rowe. “Advanced generations of biofuels are on their way,” he writes, it is just a matter of time before their kinks are worked out “through technology, careful land management, and considered use of resources.” -
Eddie Walsh, The Diplomat
Indonesia’s Military and Climate Change
›July 22, 2011 // By Wilson Center StaffThe original version of this article, by Eddie Walsh, appeared on The Diplomat’s ASEAN Beat blog.
With more than 17,000 islands and 80,000 kilometers of coastline, Indonesia is extremely vulnerable to climate change. Analysts believe that rising temperatures will almost certainly have a negative impact on human security in Indonesia, which in turn will increase the probability of domestic instability and introduce new regional security concerns. With this in mind, it’s important that Indonesia’s armed forces take a range of measures to prioritize environmental security, including procuring new equipment, strengthening bilateral and multilateral relations, and undertaking training for new roles and missions.
Indonesians are expected to experience warmer temperatures, increased precipitation (in the northern islands), decreased precipitation (in the southern islands), and changes in the seasonality of precipitation and the timing of monsoons. These phenomena could increase the risk of either droughts or flooding, depending on the location, and could also reduce biodiversity, lead to more frequent forest fires and other natural disasters, and increase diseases such as malaria and dengue, as well incidences of diarrhea.
The political, economic, and social impact of this will be significant for an archipelago-based country with decentralized governance, poor infrastructure, and a history of separatist and radical conflict. According to a World Bank report, the greatest concern for Indonesia will be decreased food security, with some estimates projecting variance in crop yields of between -22 percent and +28 percent by the end of the century. Rising sea levels also threaten key Indonesian cities, including Jakarta and Surabaya, which could stimulate ‘disruptive internal migration’ and result in serious economic losses. Unsurprisingly, the poor likely will be disproportionately impacted by all of this.
Continue reading on The Diplomat.
Sources: World Bank.
Photo Credit: “Post tsunami wreckage Banda Aceh, Sumatra, Indonesia,” courtesy of flickr user simminch. -
UN Security Council Debates Climate Change
›Today the UN Security Council is debating climate change and its links to peace and international security. In this short video, ECSP Director Geoff Dabelko outlines his hopes for today’s session and its follow-on activities. He suggests it is time to move from problem identification to problem solving by developing practical steps to respond to climate-security links.
This Security Council debate was held at the instigation of the German government, chair of the Security Council this month. But it is not the first time this body has debated climate and security. In 2007, the United Kingdom used its prerogative as chair to introduce the topic in the security forum. Opinions from member states diverged on whether the Security Council was the appropriate venue for climate change.
Largely at the instigation of the Alliance of Small Island States, the UN General Assembly tackled climate and security links in 2009. The resulting resolution also spurred the UN Secretary-General to produce a summary report on the range of climate and security links.
Sources: Reuters, UN. -
Failed States Index 2011
›“The reasons for state weakness and failure are complex, but not unpredictable,” said J.J. Messner, one of the founders of the Fund for Peace’s Failed States Index, at the launch of the 2011 version of report in Washington last month. The Index is an analytical tool that could aid policymakers and governments seeking to prevent and mitigate state collapse by identifying patterns of underlying drivers of state instability.
The Index ranks 177 countries according to 12 primary social, economic, and political indicators based on analysis of “thousands of news and information sources and millions of documents” and distilled into a form that is meant to be “relevant as well as easily digestible and informative,” according to the creators. “By highlighting pertinent issues in weak and failing states,” they write, the Index “makes political risk assessment and early warning of conflict accessible to policymakers and the public at large.”
Common Threats: Demographic and Natural Resource Pressures
The Index reveals that half of the 10-most fragile states are acutely demographically challenged. The composite “Demographic Pressures” category takes into account population density, growth, and distribution; land and resource competition; water scarcity; food security; the impact of natural disasters; and public health prevention and control. Additional population indices are found in “Massive Movement of Refugees or Internally Displaced Persons (IDPs),” and health indicators, including infant mortality, water, and sanitation, are spread across several categories.
Not surprisingly, some of the most conflict-ridden countries show up at the top of the list. The Index highlights some of the lesser known issues that contribute to their misery: demographic and natural resource stresses in Afghanistan, Iraq, Nigeria, Pakistan, and Yemen (a list that would include Palestine, if inclusion in the Index were not contingent on UN membership); the DRC’s conflict minerals; and Somalia and Sudan’s myriad of environmental and migration problems, which play major roles in their continued instability.
Haiti, with its poor health and lack of infrastructure and disaster resilience, was deemed the Index’s “most-worsened” state of 2011. The January 2010 earthquake and its ensuing “chaos and humanitarian catastrophe” demonstrated that a single event can trigger the collapse of virtually every other sector of society, causing what Messner termed the “Humpty Dumpty effect” – while a state can deteriorate quickly, it is much harder to put it back together again.
The inclusion of natural resource governance within the social and economic indicators would render the Index a more complete analytical tool. In a 2009 report, the UN Environment Program (UNEP) found that “since 1990, at least eighteen violent conflicts have been fueled by the exploitation of natural resources,” and that effective natural resource management is a necessary component of conflict prevention and peacebuilding operations.
The Elephant in the Room: Predicting the Arab Spring
Why did the Index fail to predict the Arab Spring sweeping the Middle East and North Africa? Many critics assert that the inconsistent ranking of the states, ranging from Yemen (ranked 13th) to Bahrain (ranked 129th), demonstrates that the Index is a poor indicator of state instability. Particularly, critics argue that many of the countries experiencing revolutions were ranked artificially low.
“Of course, the Failed States Index did not predict the Arab Spring, and nor is it intended to predict such upheavals,” said Messner at the launch event. “But by digging down deeper into the specific indicator analysis, it was possible to observe the growing tensions in those countries.” The Index has consistently highlighted specific troubling indicators for the region, such as severe demographic pressures, migration, group grievance, human rights, state legitimacy, and political elitism.
Blake Hounshell, a correspondent with Foreign Policy (long-time collaborators with the Fund for Peace on the Index), wrote that the Index was never meant to be a “crystal ball” – even the best statistical data cannot truly encapsulate the complex realities that lead to inherently unpredictable events, such as revolutions. “It’s thousands of individual decisions, not rows of statistics, that add up to political upheaval,” Hounshell continued.
Demographer Richard Cincotta’s work on Tunisia’s revolution illuminates how the Index’s linear indicators can mask a complex reality. Whereas the Failed States Index simply measures “demographic pressure” as a linear function of how youthful a population is, Cincotta pointed out at a Wilson Center event that it was actually Tunisia’s relative demographic maturity that paved the way for its revolution and gives it a good chance of achieving a liberal democracy. Other countries in the region are much younger than Tunisia (Yemen being the youngest). The Arab Spring demonstrates that static indicators alone often do not have the capacity to predict complex social and political revolutions.
Sources: Foreign Policy, The Fund for Peace, UNEP.
Image Credit: Failed States Index 2011, Foreign Policy. -
Robert Jenkins, OpenDemocracy.net
Women, Food Security, and Peacebuilding: From Gender Essentialism To Market Fundamentalism
›July 5, 2011 // By Wilson Center StaffThat women’s engagement in resolving and recovering from conflict is crucial to sustainable peace has been an article of faith, and an element of international law, since the UN Security Council passed Resolution 1325 in 2000. It took a decade of missed opportunities, however, for the UN to develop a systematic action plan for redeeming the promise of 1325. The September 2010 Report of the Secretary-General on women’s participation in peacebuilding contains a concrete set of commitments for UN actors working in post-conflict settings.
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Watch: Richard Matthew at TEDxChange on Natural Resources, Conflict, and Environmental Peacemaking
›“It’s not surprising that about half the time, efforts to try to stabilize countries as they come out of war fail,” said Richard Matthew, associate professor at the University of California at Irvine and founding director of the Center for Unconventional Security Affairs, at a recent TEDxChange event. “Wars today are very destructive. They may not be as big as the wars of the last century, but they do a lot of damage.”
Matthew’s work focuses on the environmental dimensions of conflict and peacebuilding. Conflict can be spurred by competition over natural resources but it also contributes to further scarcity in many cases, creating a feedback loop. The natural resource aspect of conflict is particularly important in areas where livelihoods depend directly on access to land, water, and forests, he said.
In addition to discussing the benefits of including the environment in peacemaking efforts, Matthew also touched on the need for an increased proportion of national security spending to be spent on peace and development rather than defense. “It is in our interest to grow people out of the conditions that foster terrorism and extremism and infectious disease and crisis,” he said.
In particular, Matthew remains confident that an emerging group of leaders will find new and creative ways to support peacebuilding, natural resource management, and adaptation activities in the future: “Social entrepreneurs – people willing to combine their passion to make a better world with sound business tools – are developing truly innovative ways of taking daunting social problems and making them manageable.” -
Global Climate Change Vulnerability and the Risk of Conflict
›In a study from the Center for Sustainable Development at Uppsala University in Sweden titled “Climate Change and the Risk of Violent Conflicts in Southern Africa,” authors Ashok Swain, Ranjula Bali Swain, Anders Themnér, and Florian Krampe examine the potential for climate change and variability to act as a “threat multiplier” in the Zambezi River Basin. The report argues that “socio-economic and political problems are disproportionately multiplied by climate change/variability.” A reliance on agriculture, poor governance, weak institutions, polarized social identities, and economic challenges in the region are issues that may combine with climate change to increase the potential for conflict. Specifically, the report concludes that the Matableleland-North Province in Zimbabwe and Zambezia Province in Mozambique are the areas in the region most likely to experience climate-induced conflicts in the near future.
The “Climate Vulnerability Monitor 2010: The State of the Climate Crisis,” published by Madrid-based DARA and the Climate Vulnerable Forum, is a comprehensive atlas of climate change vulnerability around the world. The report examines country vulnerability in four impact areas – health, weather disasters, habitat loss, and economic stress – and compares current levels of vulnerability with those expected in 2030. Of the 184 assessed countries, nearly all registered high vulnerability to at least one impact area. The report estimates that there are 350,000 “climate-related deaths” each year, almost 80 percent of which are children living in South Asia and sub-Saharan Africa. Finally, the report features an overview of climate change basics, country profiles, and reviews on the effectiveness of several climate adaptation methods.
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