C ONFLICT AND E XTRACTIVE I NDUSTRIES Cindy Kroon Governance for Extractive Industries Program & Parliamentary Strengthening Program World Bank Institute

T HE LINK BETWEEN CONFLICT AND EXTRACTIVE INDUSTRIES The facts Conflict at the national level Conflict at the local level Conflict at the regional level What can parliament do to make natural resources contribute to development?

T HE FACTS There is a connection between natural resources and conflict But what is the nature of that connection? Extractives used in different ways: as the cause of conflict, as a way to continue conflict, etc.

C ONFLICT AT THE NATIONAL LEVEL Indirect link: Increased poverty Increased inequalities Direct link: Control of the resources Resources used to finance arms and wars Overall Result: Weakening of institutions – decrease in governance

C ONFLICT AT THE LOCAL LEVEL Ownership of resource Employment expectations Environmental damage Labor immigration

C ONFLICT AT THE INTERNATIONAL LEVEL Competition for resources by neighboring countries Transportation of resources through neighboring countries Labor immigration

A VOIDING CONFLICT AND USING EXTRACTIVE INDUSTRIES FOR DEVELOPMENT Governance failure is the link between resource- dependence and risk of conflict Stimulating good governance and accountability in the extractive industries sector in order to avoid conflict and use resources for development

THE ROLE OF P ARLIAMENT Promote transparency and participation in: 1. The decision to extract 2. Getting a good deal 3. Monitoring operations 4. Collecting revenues 5. Revenue management for sustainable development WBI’s capacity building program on extractive industries in general and on extractive industries and parliament specifically