Natural resources (such as oil, natural gas, diamonds, minerals, forests and water) are often a major source of national income, and are also a major cause of conflict and instability if mismanaged or shared unfairly. Countries with weak institutions often struggle to handle the potentially destructive force of corruption and attempts by various actors to capture the wealth generated by natural resources. The governance of natural resources is especially important in the context of divided societies because control over the benefits from local natural resources is often a chief motivator of ethnic or identity-based conflicts.
Where the natural-resources debate is particularly sharp is not only in the context of divided societies, but in those cases where the uneven geographic distribution of natural resources corresponds with ethnic, religious or linguistic divides. While these issues are especially important in decentralised nations and are particularly salient in a federal context, they can arise in any state confronted with demands for increased autonomy over local resources from individual communities. Under these circumstances, the framework for the treatment of natural resources can strengthen a national compact or can exacerbate conflict.
Despite this, natural resources have not always been perceived as important enough to require extensive treatment in constitutions or peace agreements. In many countries where natural resources do not constitute a significant sector of the economy, it is not unusual for natural resources to fall under general provisions dealing with the treatment of revenue and fiscal and financial issues (as in most Western states). Similarly, many peace treaties make only passing reference to natural-resource arrangements. In more recent constitutions and legal agreements it is, however, more common to deal with natural resources separately from other elements of the wealth-sharing framework. There are a number of reasons for this. In some developing countries, natural resources are the only or predominant source of wealth. As a result, these resources are very often seen as a national heritage to be shared equitably. However, they often generate strong feelings of local community ownership over their development and the resulting revenues. The challenge is to balance these local interests against the overall importance of natural resources to national development. Constitutions or peace treaties are often called upon to mediate this tension and the conflict that can result from it.
