Analyzing the Resource Curse with Reference to Phillipe Le Billon’s “Resource Wars Reframed"
The “Resource Curse”: What is it?
The “Resource Curse” is a concept explored in Phillipe Le Billon’s article “Resource Wars Reframed”. As the name implies, natural resources have often proven to be more of a curse than a blessing for resource rich states. The concept emphasizes that countries rich in natural resources are not able to translate the resources into prosperity and ultimately boost their economies. On the contrary, resource rich states subjected to the resource curse find themselves worse off than states without abundant natural resources, suffering from low economic growth (Wenar, 2013, p. 298). Petroleum producing countries are a primary example of resource cursed states. The negative effects perpetuated from the resource curse are often compared to that of the foreign aid curse. Despite the perception that abundant natural resources will result in fiscal revenues and jobs, as well as necessary investment-capital, the resource curse has resulted in economic and environmental devastation (Klarem 2002, p. 27). The capital produced merely benefits repressive regimes and rebel groups, rather than local population that are often tainted by human rights abuses (Wenar, 2013, p. 301). Therefore, due to the economic and political vulnerability perpetuated from the resource curse, global political-military conflict is too often the result.
Shaking Hands with Le Billon
In coming to understand the resource curse encompassed in Le Billon’s article, I can not help but question the irony in the concept. The states with the richest of natural resources, are the poorest of nations. Moving the discourse aside, it genially hurts me to realize the reality of the situation, for states were blessed with abundant resources by nature, but fail to reap their benefits. Instead, they are faced with economic vulnerability, political instability, conflict and heartache. Are states better off not having any natural resources at all, than bare the resource curse? In my attempt to understand the grave reality of the resource curse, I took a close look at Le Billon’s notion of resource dependance as both reflecting and shaping conditions for increased vulnerability of conflict (Le Billon, 2012, p. 35). I found such significant in my understanding of the resource crisis, as resource dependance mirrors the states’ already vulnerable status and perpetuates a continued vulnerability as an unequal give-and-take relationship is formed. In the game of power and money, it seems only suiting that states who are poorly governed, and underperform economically, are more likely to be taken advantage of. Worse of all, the resource curse can be understood more like the resource curse cycle, as citizens lack the democratic bargaining power due to their corrupt regimes to break the curse, but are forced to bare the negative effects. To better comprehend the resource curse, it is important to look at the core-periphery relations reinforced by the curse. The resource curse merely reflects a neo-empiricism, where core states continue to take advantage of the periphery and reap their benefits.
Am I to blame?
Being fortunate enough to live in a core state, benefiting from the resource curse, I find it difficult to digest the concept. I, like many other North American, live my life day-by-day without fulling realizing the suffering of others at my luxury. As I drive my car to purchase my ridiculously overpriced coffee, individuals across the globe are living with horrid human rights violations or even worse-dying! Sadly, with this knowledge, I am reluctant to change my ways...Could that be the most horrific thing of all? The sad reality is that we have become so accustomed to the natural resources we devour on a daily basis, that an alternative way of life seems almost impossible. The consumer capitalist world we are living in only perpetuates this problem and our oil-thirsty industries show no sign in a declining dependance on natural resources. But as long as the supply and demand is there, the natural resources will be extracted at the expense of another. I must remind myself that the life I am living is one of privilege, and one to be thankful for. I must remind myself that the fridge I stare unenthusiastically in while looking for a snack should be done with genuine gratitude, not routine. It is for people like me that global political-military conflicts are occurring and growing at an extraordinary rate. In a way, it’s almost shameful. I must put myself in the shoes of the individuals involved in the extraction of diamonds enduring structural, cultural and physical violence. A price, other than that on the tag, not many future fiancés consider before purchasing that “special” ring.
Natural Resources and Conflict
When looking at the resource curse and current global political-military issues, it is unquestionable that the power base coincides with natural resources such as diamond mines. Zimbabwe is currently undergoing a resource curse with their diamond industry, as diamond revenues are largely marginalized and human rights abuse remains a major concern. The political enables military as Zimbabwe’s ZANU-PF political and military elite continue to reap in the state’s diamond wealth through shadowy joint-venture companies (globalwitness.org). Such non-democratic politicians, as well as the violent reputation of the military posses major suspicion that funds are being used for repression and human rights abuses within the state (Wenar, 2013, p. 300). With the army’s seizure of the diamond fields in 2008, the military has perpetuated the conflict in the area, working alongside the government for economic self-interest and control. The oppression of the people is used as a tool of power, reinforcing the resource curse. Ultimately, it is not exactly clear where the money is going, but it is certainly not going to the people of Zimbabwe! Children are hungry on the streets, while political and military leaders are driving brand new Mercedez to their lavish estates. Hidden company ownership in Zimbabwe can cover who benefits from the diamond revenues, providing cover for the military (Klare, 2002, p.1).
"With no transparency in the present moment, no one is sure what is happening with the revenue transmission. They are Zimbabwe assets and should be benefiting the Zimbabwe people. Right now they are not benefiting the Zimbabwe people"
-Tendai Biti, Zimbabwe Financial Minister
With the EU lifting their sanctions on Zimbabwe, a call was recently made for the U.S. to lift sanctions as well, providing Zimbabwe access to international markets (Wenar, 2013, p. 300). The argument for Zimbabwe’s stability and prosperity is being made; however, I am not sure such is the case! With civil conflict still raging in the region, and great political and military instability, a lift in sanctions will not solve the conflict. Europe and the U.S. should maintain sanctions against the state until the Zimbabwean diamond sector is reformed. In addition, despite the Kimberly Process, global companies must implement risk-based due-diligence to ensure the diamonds are not obtained in exchange for human rights abuses (Klare, 2002, p.1). However, who will implement such progressive policies you may ask? There will need to be not only third party involvement in the implementation and follow through with these new policies but internal involvement, as well. Too often when we see the production and trade of conflict diamonds we have the issue of a corrupt government. How can you rely on such a government to ensure the implantation of conflict prevention policies, when they are at the source of the issue? The ownise and motivation must fall on the diamond industry, insuring a humanitarian approach to the business. Consumers must demand and settle for nothing less than conflict-free diamonds and diamond industries must live up to such promises! The Kimberly Process will also need to have some power behind it, not just a symbolic certificate. KP needs to be able to hold industry members responsible for any infractions they may commit. Without any significant authority, the KP is just an idea that can be taken advantage of.
Respective governments, a UN body, Grassroot Watchdog Organizations, and even the people of Zimbabwe need to make sure that these new policies are being upheld. One group of people cannot be the only ones involved in the protection of human rights as well as the production of conflict free diamonds. Actors such as rebel groups, and politicians that sell the diamonds to diamond companies for less, or use revenues to fund their political agendas, must be monitored, as they undermine the implantation of appropriate policies to assist Zimbabwe in dealing with the diamond conflict at hand.
References:
Le Billon, P. (2012). Wars of plunder: conflicts, profits and the politic’s of resources.(pp. 9-42). New York: Columbia University Press.
Klare, M. (2002). Resource wars: The new landscape of global conflict. (1 ed.). New York: Henry Holt and Company.
Wenar, L. (2013). Fighting the resource curse. Global Policy, 4(3), 298-304. doi:http://dx.doi.org/10.1111/1758-5899.
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