Resource information
For many developing countries, natural
resource exports such as oil, diamonds and copper continue
to be important drivers for economic growth and provide a
unique opportunity for generating revenues for much-needed
infrastructure and human development. Dependence on
extractive resources, however, may also increase the
likelihood of underdevelopment, fragility and conflict. The
challenges for managing these resources efficiently are
likely to expand, as a growing number of developing
countries and fragile states emerge as oil and mineral
producers. Thus, there is a need to gain a better
understanding of the factors that may help prevent violent
conflict in resource rich countries. This paper proposes
that one way of gaining such understanding and insight is to
“conflict-sensitize” the Extractive Industries Value Chain
(EIVC), and use it as a framework for conflict prevention in
resource-rich countries. In this context, the report’s main
objective is to examine the potential opportunities for
conflict prevention along the extractive industries value
chain. Such a body of knowledge can help the World Bank, the
UN and EU, as well as client countries and other partners,
in their planning and coordination of complementary
activities when implementing their programmes and projects,
particularly when working in the same resource-rich
countries. This paper aims to demonstrate the feasibility
and challenges faced by adopting a conflict-sensitive
approach within the World Bank’s EI Value Chain. The
methodology used was a combined desk review and in-depth
interviews with regional and country specialists, especially
in governance/conflict prevention and extractive industries
(Annex 1). The emphasis is on qualitative analysis. The four
countries that were desk reviewed for the project, including
Chile, Peru, the Democratic Republic of Congo (DRC), and
Zambia, are all copper producers and were selected due to
their heavy dependence on revenues from mining. This book is
arranged as follows: (i) part one explains extractives,
conflict prevention and the value chain; (ii) part two is
about the EI value chain as framework for conflict
prevention; (iii) part three talks about emerging themes and
recommendation; and (iv) part four describes the four
country examples and the emerging lessons.
