From Conflict Recources to Sustainable Development - Memorandum by Fatal Transactions on the European Union’s Contribution to Natural Resource Management in Africa
Natural resources, such as oil, diamonds, coltan and gold, can be and have been an engine for growth in African countries. The exploitation of natural resources in Africa has however, been associated in many occasions with unsustainable management, underdevelopment and violent conflict. Armed conflicts have even become self-financed, as the private actors in the conflicts have increasingly relied on natural resource revenues to fund military activity.
Extractive companies can play a dubious role in this process, especially when they find themselves in situations where local rule of law and governmental institutions are weak or absent. While most companies do not deliberately seek to profit from violence, their investments and operations could contribute to poverty and insecurity.
Therefore, when addressing the link between natural resources and conflict, various stakeholders have to be involved: governments of producing, transit and importing countries; multilateral bodies and financial institutions; the private sector in its various dimensions (such as extractive industries, brokers, traders, private financial institutions); and civil society. In order to contribute to a process of natural resources as inherently good and as an engine for sustainable development, all stakeholders in the natural resources supply chain must ensure that lessons learned about improving natural resource governance are
captured and integrated.
This Memorandum looks specifically at the European Commission’s contribution to a sustainable exploitation of natural resources in Africa and a sustainable supply chain. It also assesses its approach on conflict resources. The paper provides an analysis of the Commission’s trade policy, development cooperation, foreign and security policy, cooperation under bilateral and multilateral agreements, humanitarian aid and financial assistance. It also takes a look at the Commission’s view on integrating and implementing external actions in its internal policies (e.g. energy and environment) in order to promote a sustainable management of natural resources abroad. The geographical focus of the research is Sub-Saharan Africa, given that the European Union is the world’s largest donor in Africa and is the continent’s most important economic and trade partner.
The Memorandum concludes with recommendations to the European Commission and European Parliament for contributing to a process of natural resources exploitation as inherently good and as an instrument of sustainable development.
