-
Certification: The Path to Conflict-Free Minerals from Congo
›This summer, the Wilson Center’s Africa Program, in co-sponsorship with the Enough Project, assembled a panel of experts from American, British, and Congolese governments, private industry, and the NGO community to discuss the deplorable situation in the eastern Democratic Republic of the Congo (DRC) involving conflict minerals and certification as a way forward.
After introductory remarks by Wilson Center President Jane Harman, Africa Program Director Steve McDonald introduced John C. Bradshaw, executive director of the Enough Project, who moderated the panel discussion. [Video Below]
Under Secretary of State Robert D. Hormats began by saying the “extremely traumatic” humanitarian situation in the restive areas of the eastern DRC requires “a bold, resolute, and morally inspired response by the United States and other countries.”
Sasha Lezhnev, policy consultant for the Enough Project, explained how the demand for tin, tantalum, tungsten, and gold – for use in batteries, circuit boards, and screens in computers and cellphones – are, in effect, driving the conflict in the DRC.
However, Ambassador to the United States from the DRC Faida Mitifu pointed out that a significant 70 percent of the economy in the eastern regions of the country depends on mining, thus any initiative would have to take into account the livelihoods of the people. In order to assist those communities while a process is formulated, Lezhnev called for targeted development projects in the most affected regions.
The Kimberley Process: A Potential Model?
“If we want to have a lasting impact, we’re going to need a certification process,” Lezhnev said, and we must learn lessons from the Kimberley Process (KP) in order to implement a suitable framework in the DRC.
Clive Wright, who served as the diplomatic negotiator for the KP and head of the foreign policy team for the British High Commission in Ottawa, described the intricacies of the process and its genesis. Under the provisions of the KP, the trade of rough diamonds is permissible, provided that there is a certificate from the country of origin and complementary legislation is in place in the importing country. This agreement was made through consultations and dialogue between the private sector and civil society.
Though successful in certain respects, Wright listed several shortcomings of the KP: it is not legally binding, therefore there are no levers to pull that compel government action; the process is void of an independent monitoring mechanism; and a consensus clause allows one government to block any action which clears the way for the status quo to prevail.
To implement a policy similar to the KP that guarantees legitimate minerals trade in the DRC, Under Secretary Hormats highlighted four key actors that have critical roles independently and collaboratively: 1) regional governments; 2) industry; 3) civil society; and 4) the U.S. government.
Regional Governments
Governments in the region face considerable challenges, said Hormats, as rebel groups trade across borders and evade efforts to rein in the commerce of precious gems, minerals, and arms. The states surrounding the Great Lakes – including Uganda, Rwanda, Burundi, Zambia, Kenya, and the DRC – have coalesced around these issues and developed a plan that will require effective coordination to ensure credibility. Some countries have already established traceability schemes, which are crucial for states that share borders with the DRC, since smuggling is incessant.
With regard to rebel factions, Kinshasa has occasionally participated in joint operations with the governments of Rwanda and Uganda “to stabilize [and] contain the activities of armed groups,” said Ambassador Mitifu. Progress, though slow, has also been made in demilitarizing the mining areas in the Kivu provinces as well as Maniema and in weakening the Congrès National pour la Défense du Peuple’s (CNDP) parallel administration.
The government in Kinshasa has made significant steps toward a certification framework and taken punitive action against military personnel who have engaged in illicit trade, said Ambassador Mitifu. She outlined the efforts the Kabila administration has made to address the issue, including initiatives to put in place a credible certification system so that clean minerals can be exported. In conjunction with MONUSCO – the UN peacekeeping mission in the DRC – the Congolese government has introduced centers where miners can bring their products and feed them into a legitimate supply chain. Finally, Kinshasa is working closely with the private sector, international organizations, and local NGOs to minimize fraud and enhance cooperation. Nevertheless, governance and corruption represent a formidable roadblock in the implementation of any certification process.
Industry Responsibility
Tim Mohin, the director of corporate responsibility for Advanced Micro Devices – one of the largest semiconductor manufacturers in the world – argued that industry can positively influence the supply chain by creating conflict-free smelter programs and a due diligence bulwark where anyone along the supply chain can trace their resources back to a certified smelter.
Customers, Mohin said, are going to have to insist that businesses comply with this tracking system. Under Secretary Hormats agreed with this sentiment, saying that companies that look into the origin of their minerals send a powerful message to the region and the world. He also expressed hope that “companies [would] work to find ways to adhere to legislation [Dodd-Frank] and honor their obligations to their shareholders without shunning the region’s minerals entirely.”
The most difficult stretches along the supply chain are getting buy-in from the miners and the smelters; overcoming the constraints of socio-economic realities on the ground and geo-politics; and the lack of a sustainable tracing system that spans the spectrum of the supply chain. In addition to shored-up U.S. involvement, Mohin called for increased public-private sector partnerships with incentives reminiscent of the Fair Trade system, development aid to assist displaced people, and enhanced security for artisanal miners and their businesses.
Civil Society and Government
Hormats commended the pivotal role civil society has played and must continue to play in highlighting the humanitarian issues at stake, as governments and companies have been only “dimly aware of the link between human rights abuses and the minerals trade.” Furthermore, Wright encouraged civil society’s participation because it serves as a “great policeman” that monitors the bad behavior of governments, especially when the allure of profiteering seeps into deliberations. Moving forward on boosting security for civil society on the ground in the Congo will be essential.
The U.S. government, Hormats asserted, has to do its part to support initiatives on the table to create conflict-free supply chains. If more revenue is invested in legitimizing supply chains, a substantial portion of the problem would be solved. USAID and the State Department are working with civil society to take action against those responsible for illegitimate trade and exacerbating the conflict. Of course there remains work to be done, but as Under Secretary Hormats indicated “this is the most significant moral issue of our time.”
Derek Langford is a program assistant with the Wilson Center’s Africa Program.
Photo Credit: “Aerial View of Camps for People Displaced by Conflict,” courtesy of flickr user United Nations Photo. -
Redrawing the Map of the World’s International River Basins
›Understanding why conflict over water resources arises between nations begins with a solid understanding of the geography of international river basins. Where are the basins? How big are they? How many people live there? Who are the riparian nations, and what is the significance of each to the basin?
-
International River Basins: Mapping Institutional Resilience to Climate Change
›Institutions that manage river basins must assess their ability to deal with variable water supplies now, said Professor Aaron Wolf of Oregon State University at the July 28 ECSP event, “International River Basins: Mapping Institutional Resilience to Change.” “A lot of the world currently can’t deal with the variability that they have today, and we see climate change as an exacerbation to an already bad situation.”
Wolf and his colleagues, Jim Duncan of the World Bank and Matt Zentner of the U.S. Department of Defense, discussed their efforts to map basins at risk for future tensions over water, as identified in their coauthored World Bank report, “Mapping the Resilience of International River Basins to Future Climate Change-Induced Water Variability.” [Video Below]
Floating Past the Rhetoric of “Water Wars”
Currently, there are 276 transnational water basins that cross the boundaries of two or more countries, said Wolf. “Forty percent of the world’s population lives within these waters, and interestingly, 80 percent of the world’s fresh water originates in basins that go through more than one country,” he said. Some of these boundaries are not particularly friendly – those along the Jordan and Indus Rivers, for example – but “to manage the water efficiently, we need to do it cooperatively,” he said.
Wolf and his colleagues found that most of the rhetoric about “water wars” was merely anecdotal, so they systematically documented how countries sharing river basins actually interact in their Basins at Risk project. The findings were surprising and counterintuitive: “Regularly we see that at any scale, two-thirds of the time we do anything over water, it is cooperative,” and actual violent conflict is extremely rare, said Wolf.
Additionally, the regions where they expected to see the most conflict – such as arid areas – were surprisingly the most cooperative. “Aridity leads to institutions to help manage aridity,” Wolf said. “You don’t need cooperation in a humid climate.”
“It’s not just about change in a basin, it’s about the relationship between change and the institutions that are developed to mitigate the impacts of change,” said Wolf. “The likelihood of conflict goes up when the rate of change in a basin exceeds the institutional capacity to absorb the change.”
Expanding the Database for Risk Assessment
Oregon State University’s Transboundary Freshwater Dispute Database (TFDD) tracks tabular and spatial information on more than 680 freshwater treaties along 276 transboundary river basins, said Jim Duncan. The team expanded the database to include recent findings on variability, as well as the impacts of climate change on the future variability of those basins. “We have a lot more information that we are able to work with now,” Duncan said.
Analyzing the institutional vulnerability of treaties along with hydrological hazards, they found the risk of tension concentrated in African basins: The Niger, Congo, and Lake Chad basins “popped out,” said Duncan. When predicting future challenges, they found that basins in other areas, such as Southeastern Asia and Central Europe, would also be at risk.
Duncan and his colleagues were able to identify very nuanced deficiencies in institutional resilience. “Over half of the treaties that have ever been signed deal with variability only in terms of flood control, and we’re only seeing about 15 percent that deal with dry season control,” said Duncan. “It’s not the actual variability, but the magnitude of departure from what they’re experiencing now that is going to be really critical.”
Beyond Scarcity
“Generally speaking, it’s not really the water so much that people are willing to fight over, but it’s the issues associated with water that cause people to have disagreements,” said Matt Zentner. Water issues are not high on the national security agendas of most governments; they only link water to national security when it actively affects other sectors of society, such as economic growth, food availability, and electric power, he said. Agricultural production – the world’s largest consumer of water – will be a major concern for governments in the future, he said, especially in developing countries economically dependent on farming.
Some experts think that current international treaties are not enough, said Zentner. Peter Gleick of the Pacific Institute has said that “the existing agreements and international principles for sharing water will not adequately handle the strain of future pressures, particularly those caused by climate change.”
How transboundary water treaties fare as the climate and consumption rates change is not as simple as measuring flow; the strength of governing institutions, the parties involved, and other variables all play major roles as well, said Zentner. “When you have flexibility built within [a treaty], it allows it to be a living, breathing, and important part of solving those [water] problems.”
Download the full event transcript here.
Sources: Oregon State University, Pacific Institute.
Photo Credit: “Confluence of the Zanskar and Indus,” courtesy of Flickr user Sanish Suresh. -
Conflict Minerals in the DRC: Still Fighting Over the Dodd-Frank Act, One Year Later
›August 11, 2011 // By Schuyler NullOne year after the Dodd-Frank Act passed Congress with a provision that was aimed at preventing the sourcing of “conflict minerals” by SEC-registered companies, backlash seems to be growing over the impact of the measure, particularly on artisanal miners in the Democratic Republic of the Congo (DRC).
-
Environmental Cooperation for Peacebuilding in Sierra Leone
›Sierra Leone’s decade-long civil war led to a complete collapse of environmental management in the country, according to Oli Brown, an environmental affairs officer with the UN Environment Programme (UNEP). Speaking at the Wilson Center last month, Brown highlighted the country’s current environmental conditions and how they have evolved since the war ended in 2002, while also outlining UNEP’s support for rebuilding the country’s natural resource governance.
Despite its wealth of natural resources, Sierra Leone is plagued by high unemployment, a massive gap between the poor and wealthy, and extreme poverty – 70 percent of the population lives on $1.00 a day. The country is still “very fragile,” said Brown; the poor distribution of resources is partly responsible for the current problems facing the country.
Sierra Leone’s environmental future and prospects for improving its natural resource governance depend on the answers to three key questions, said Brown:
The first 5 to 10 years after a civil war are a critical time for peacebuilding efforts, Brown emphasized. Natural resources can help in this peace building process, but countries must recognize the value of their natural resources, and establish policies that are sustainable – environmentally, economically, and socially.- How can the countries bountiful natural resources be shared more equitably?
- How can the countries natural resources improve local livelihoods and provide jobs?
- How can the war’s legacies be properly addressed while minimizing their negative impact?
Potential in Abundance: Agriculture, Minerals, Fisheries, and Tourism
Today, agriculture – including rice, palm oil, and sugar cane – accounts for 50 percent of Sierra Leone’s GDP, but current production methods are extremely inefficient, said Brown. Farmers use slash-and-burn clearing techniques to grow crops with zero consideration for the environmental effects, a practice which has led to a high level of deforestation. Only four percent of the country’s original forest cover remains, he said.
As part of its plan, Sierra Leone’s government is actively seeking large-scale investment in agricultural products for export. However, access to land development is complicated by the fact that more than 100 different chiefs control land and leasing rights around the country.
Additionally, some fear that companies investing in Sierra Leone may be exploiting the situation to achieve maximum profit without providing local development benefits, such as employment.
Water is also crucial to agriculture development, but Sierra Leone’s government does not know how much they have, said Brown, so they cannot properly plan for addressing the needs of their people. Reforming the sector is critical, as palm oil and sugar cane in particular have great potential for increasing the country’s GDP.
Sierra Leone also has an abundant supply of minerals: Diamonds, iron, rutile, gold, and oil currently account for about 20 percent of GDP and approximately 250,000 jobs, said Brown.
The planned Tonkolili iron mine will be the largest of its type built over the past 20 years anywhere in the world. If successful, the mine could double Sierra Leone’s GDP, he said. But the government must monitor these mining operations to ensure that the environmental damage does not undermine the economic benefits, said Brown. For example, rutile mining without proper safety precautions has produced acid lakes, he said, some of which have been measure with a PH level of 3.7 or greater.
While fishing operations in Sierra Leone make up only 10 percent of GDP, fish provide 80 percent of the animal protein consumed in the country’s households. However, lack of regulation and enforcement has left the door open for rampant illegal and unregulated fishing, said Brown, which has depleted local fish stocks and reduced the size of fish that are caught threatening the country’s food security.
On a more positive note, environmental tourism could be a potential source of sustainable revenue. The large chimpanzee population and the national parks could be strong tourist draws. However, the country must overcome its “blood diamonds” stigma in order to take advantage of its potential.
UNEP is seeking to help Sierra Leone’s government develop its environmental regulations and planning, said Brown, such as ways to measure and regulate water usage. The regulation of agriculture, minerals, fisheries, and tourism industries will be vital steps toward helping Sierra Leone build a sustainable economy and a sustainable peace.
Sources: Awoko Newspaper, Delegation of the European Union to Sierra Leone, Infinity Business Media, The Oakland Institute, UNDP, USAID.
Photo Credit: “mining57,” courtesy of flickr user thehunter1184. -
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. -
Backdraft: Minimizing Conflict in Climate Change Responses
›“What are the conflicts or risks associated with response to climate change?” asked ECSP Director Geoff Dabelko at the Wilson Center on July 18. “How we respond to climate change may or may not contribute to conflict,” he said, but “at the end of the day, we need to do no harm.”
-
Lakis Polycarpou, Columbia Earth Institute
The Year of Drought and Flood
›August 1, 2011 // By Wilson Center StaffThe original version of this article, by Lakis Polycarpou, appeared on the Columbia Earth Institute’s State of the Planet blog.
On the horn of Africa, ten million people are now at risk as the region suffers the worst drought in half a century. In China, the Yangtze – the world’s third largest river – is drying up, parching farmers and threatening 40 percent of the nation’s hydropower capacity. In the U.S. drought now spreads across 14 states creating conditions that could rival the dust bowl; in Texas, the cows are so thirsty now that when they finally get water, they drink themselves to death.
And yet this apocalyptic dryness comes even as torrential springtime flooding across much of the United States flows into summer; even as half a million people are evacuated as water rises in the same drought-ridden parts of China.
It seems that this year the world is experiencing a crisis of both too little water and too much. And while these crises often occur simultaneously in different regions, they also happen in the same places as short, fierce bursts of rain punctuate long dry spells.
The Climate Connection
Most climate scientists agree that one of the likely effects of climate will be an acceleration of the global water cycle, resulting in faster evaporation and more precipitation overall. Last year, the Proceedings from the National Academy of Sciences published a study which suggested that such changes may already be underway: According to the paper, annual fresh water flowing from rivers into oceans had increased by 18 percent from 1994 to 2006. It’s not hard to see how increases in precipitation could lead to greater flood risk.
At the same time, many studies make the case that much of the world will be dramatically drier in a climate-altered future, including the Mediterranean basin, much of Southwest and Southeast Asia, Latin America, the western two-thirds of the United States among other places.
Continue reading on State of the Planet.
Sources: Associated Press, The New York Times, Proceedings from the National Academy of Sciences, Reuters, Science Magazine, University Corporation for Atmospheric Research.
Photo Credit: “Drought in SW China,” courtesy of flickr user Bert van Dijk.
Showing posts from category environmental security.