Economics of conflict phần 1 pps

Mark TaylorEmerging Conclusions March 2002 Economies of Conflict: Private Sector Activity in Armed Conflict Emerging Conclusions These Emerging Conclusions offer a preliminary analysis o

Mark Taylor

Emerging Conclusions March 2002

Economies of Conflict:

Private Sector Activity in Armed Conflict

Emerging Conclusions

These Emerging Conclusions offer a preliminary analysis of the findings

of four reports from the Economies of Conflict policy research series,

which examines the links between private sector activity and armed

conflict In addition, the four reports are presented here in electronic

form on an enclosed compact disc The occasion is the symposium

“Economic Agendas in Armed Conflict: Defining and Developing the

Role of the UN”, co-organized by the International Peace Academy and

Programme for International Co-operation and Conflict Resolution, and

sponsored by the Government of Norway, on 25 March 2002 in New

York

These and additional forthcoming reports from the series are available

from the PICCR web-site at www.fafo.no/piccr

The Economies of Conflict project is supported by the Government of

Norway

Institute for Applied Social Science

P.O.Box 2947 Tøyen

N-0608 Oslo

http://www.fafo.no/engelsk/

Programme for International Co-operation and Conflict Resolution

Mark Taylor

Emerging Conclusions – March 2002

Fafo

Economies of Conflict: Private Sector Activity in Armed Conflict

Programme for International Co-operation and Conflict Resolution

© Fafo Institute for Applied Social Science 2002 Cover page: Agneta Kolstad

Printed in Norway by: Centraltrykkeriet AS

Contents

Preface 5

1 Introduction 7

2 Preliminary Findings 11

2.1 Anarchic Exploitation 12

2.2 Criminalized Transactions 15

2.3 Militarized Production 17

2.4 Conflict Commodities 20

2.5 Rogue Companies 23

2.6 Emerging Conclusions 25

3 Executive Summaries 27

Dirty Diamonds 28

Fuelling Conflict 33

Illicit Finance and Global Conflict 38

The Logs of War 47

About the Authors 53

Appendix: Contents of the Economies of Conflict CD, Version 1 54

4

Preface

These Emerging Conclusions offer a preliminary analysis of the findings of four re-ports from the Economies of Conflict policy research series, a project of Fafo’s

Pro-gramme for International Co-operation and Conflict Resolution (PICCR) These reports are the first to emerge from the series, which examines the links between certain private sector activity and armed conflict

The four reports presented here in electronic form on compact disc are being

released for the first time on the occasion of Economic Agendas in Armed Conflict:

Defining and Developing the Role of the UN, a symposium co-organized by the

In-ternational Peace Academy and PICCR, and sponsored by the Government of Norway, on 25 March 2002 in New York These reports will be released in printed format in the coming months

The Executive Summaries of the reports are reproduced below, as is a table of contents for the compact disc itself We have gathered from the authors a number

of related primary and secondary source documents and included these on the com-pact disc in order to provide background and context to the studies and to give this version of the compact disc additional utility Much of what is included on the compact disc is also available on the Fafo web site at www.fafo.no/piccr, which will

be updated regularly with additional material Later in 2002, the Economies of

Con-flict series will release additional reports on regulatory options, the private security

sector, small arms, and brokers

It should be emphasised that Economies of Conflict is an analytical policy-oriented

project, aimed at a better understanding of processes and behaviour as the basis for

suggesting policy options The reports issued as part of the Economies of Conflict series

do not seek to accuse or shame particular firms or governments Rather, the studies approach the private economic dynamics involved in armed conflict from within each sector, asking the question, How does certain private sector activity help sus-tain armed conflict and what can be done about it?

In designing the research programme, PICCR opted for an industry perspec-tive The industries identified below have been selected based on their identifica-tion in the literature and through practice (as evidenced by on-going work of non-governmental organisations, governments, or multilateral institutions) They are by

no means exhaustive of the economic dimensions of war, but they represent some

of the industries that are, perhaps, most relevant to the challenges to international

peace and security posed by contemporary armed conflicts Although the studies

do address illicit activities within licit industries, the project has yet to commission studies related to the specifically criminal activities linked to armed conflict (e.g narcotics, trafficking in human beings, etc.)

As with past PICCR projects, we have chosen an inductive approach, seeking

to contribute to these arenas through an analysis of experience and lessons-learned PICCR commissioned studies from practitioners and researchers engaged in issues related to the industry and war, or the industry and corporate social responsibility, and with a keen sense of what has worked – and what has not worked - in practice

The Economies of Conflict project was launched in the spring of 2001 and since

that time we have benefited from the input and support of a growing number of people Principal among these has been Ambassador Wegger Strømmen at the Norwegian Permanent Mission to the United Nations, who has watched the project grow since its inception Karen Ballentine, Research Coordinator and Program

Associate on the International Peace Academy’s project Economic Agendas in Civil

Wars, has been extremely helpful and, along with the excellent staff at IPA, has made

the Fafo-IPA cooperation on these issues both easy and effective Our team of re-searchers deserve special thanks, both for their openness to our approach to the research task and their willingness to share their knowledge with each other across

the seminar table My thanks also to Leiv Lunde, an advisor on Economies of

Con-flict and the author of an upcoming report from the project, for his help and

per-spective over the past year, and to Christian Ruge, a PICCR colleague, who has made

an invaluable contribution to the project I am also grateful to the Government of Norway, which provided financial support for the project, and to those Norwegian officials who have contributed their perspectives on policy issues Of course, none

of the above bears responsibility for any inaccuracies or omissions that might occur

in these reports The views and recommendations expressed in these reports, includ-ing this summary of emerginclud-ing conclusions, are those of the authors alone and do not necessarily reflect the views of Norway, its Government or officials, or Fafo These emerging conclusions present a work in progress Your comments would

be welcome and should be directed to pisk@fafo.no

Mark Taylor

Programme Director, PICCR

Series Editor, Economies of Conflict

1 Introduction

Today’s warlords, governments and non-state actors alike, make use of global finan-cial and commodity markets to transform control over natural resources into war fighting capacity Under the cover of secrecy and unaccountability provided by war, legally or illegally produced commodities are traded on the legitimate, but highly unregulated, global markets to obtain financial resources, weapons and other ma-teriel needed to sustain the war

The economic dimensions of wars are not new Yet, the horrors of recent wars seem to have thrown into stark relief the inadequacy of our attempts to end them Despite the terrible human cost of the wars of the past decade – millions of lives lost or ruined, societies irrevocably scarred, and economies destroyed – it has be-come increasingly clear that recent wars have far outstripped our ability to bring them

to definitive conclusion1 and that the economies of these conflicts may play a cru-cial part in sustaining them

As a priority for international action, the economic dimensions of conflicts have been catapulted to the top of the international agenda by increasing concerns about the dark sides of globalization Since 11 September 2001, the U.S.-led

internation-al effort to target terrorist financing and logistics has underlined the importance of global financial and criminal networks to national and regional security Today, a common, global infrastructure of financial services is used to facilitate transactions involving drug money, small arms, diamonds, smuggled timber, the proceeds of corruption, human trafficking and terrorist finance The apparent ease with which licit and illicit economic goods and services are able to move between ‘black’, ‘grey’2

and ‘white’ markets has forced governments to seek greater financial sector account-ability The failures of financial oversight and corporate accountability apparent in the spectacular bankruptcy of the U.S.-based Corporation Enron have added to a

1 While the number of armed conflicts has dropped since the early 1990s, of those that continue 66 per cent were more than 5 years old in 1999 and 30 per cent were more than twenty years old In addition, many conflicts which were suspended in the 1990s – not least in Europe, the Middle East,

and Central Asia – have not been resolved; see Dan Smith, Trends and Causes of Armed Conflict, Berghof

Handbook for Conflict Transformation (April 2001).

2 The term ‘Grey markets’ is used here in its more generally legal sense, referring to markets which bridge legal or ‘white markets’ and the trade in illegal ‘black’ market goods.

growing sense of uncertainty about the transparency and accountability of firms operating internationally

Concerns about the economic dimensions of international peace and security appear to be converging with an evolving agenda for greater corporate accountabil-ity Intense activity is underway in several arenas to better understand and respond

to the economic driving forces of violent conflict and war Governments and mul-tilateral organisations, non-governmental organisations, multinational corporations and industry associations, have all in recent years launched or participated in initi-atives to study or develop policy options for dealing with economies of armed con-flict Campaigning NGOs and industry have moved to address private sector links

to conflict through the increasingly significant lens of corporate social responsibil-ity (CSR) Multilateral institutions, including the World Bank, the OECD, and the United Nations, have begun to tackle the issue from their own perspectives (mac-ro-economic analysis, global policy co-ordination, sanctions).With this convergence

in mind, PICCR’s Economies of Conflict project has been structured to build on the

bodies of work that have emerged from these efforts and to provide input to them.3

Summary: Conflict Commodities and Rogue Companies

With the rise to prominence of ‘conflict diamonds’, and to a lesser extent ‘conflict timber’, there is a growing sense that goods produced in an economy torn by armed conflict are, or should be, morally suspect The tendency to view such goods as ‘con-flict commodities’ is a direct result of an increase in consumer sensitivity resulting from successful campaigns on issues related to corporate social responsibility and human rights, and the increasing concern that such activities run counter to efforts

to maintain international peace and security It is arguable that an international moral and political norm is gradually emerging which views private sector activity that sustains armed conflict as unacceptable

The notion of conflict commodities possesses inherent dangers Countries de-pendent upon a limited number of exports could face serious economic hardship should the ‘conflict commodity’ label taint their product Companies with legiti-mate investments in such countries face the potential for significant losses and height-ened risk to their reputations These dangers were recognised early on by

3 For a summary of UN oriented initiatives see, e.g., “Economic Agendas in Armed Conflict: Defi-ning and Developing the Role of the UN”, Background Paper prepared by The International Peace

Academy and The Fafo Institute for Applied Social Science, on the occasion of a symposium spon-sored by the Government of Norway, Monday, 25 March 2002, New York A comprehensive look at the full spectrum of regulatory options relevant for the private sector is being developed for

publica-tion as part of the Economies of Conflict series in the Spring 2002; see www.fafo.no/piccr.