Clinton visit should address conflicts in resource rich countries

US Secretary of State Hillary Clinton should put a strong emphasis on how best to manage natural resource wealth and avoid conflict and corruption.

As she concludes her visit to seven African countries, Liberia, Angola, the Democratic Republic of Congo, and Nigeria (all in her itenerary) are key examples of how abundant natural resource wealth — such as oil, minerals, and timber — can be more of a curse than a blessing, causing or exacerbating conflict and corruption.

Angola, for instance, where several major US oil companies have big investments, has an appalling record for corruption and mismanagement of its oil wealth.

Seven years after the end of the civil war, most of the country’s people continue to live in deep poverty, despite the vast earnings from oil.

The death rate of Angolan children is one of the highest in the world and the country ranked 157 out of 179 on the UN Human Development Index in 2008.

The state oil company, sonangol, which still does not publish audited accounts, had given permission to bid for oil and gas licences to a private company whose shareholders had the same names as top government officials.

In its 2008 human rights report, the US State Department described official corruption in Angola as a “severe” problem.

We hope Secretary Clinton will not downplay the very serious corruption issues in Angola because of US energy interests there.

The Angolan oil sector needs to open up to full public scrutiny to ensure that the money is used for the public good. This is in America’s long term interests.

In Nigeria, which is in Clinton’s second half of the African tour, has also suffered grievously from corruption surrounding oil revenues — a direct cause of the violent conflict in the Niger Delta region.

Global Witness believes the US should urge the Nigerian government to reinvigorate the Nigerian Extractive Industries Transparency Initiative and should support the transparency reforms included in the new Petroleum Industry Bill.

The fourth stop on Clinton’s tour was the Democratic Republic of Congo on August 9.

Global Witness recently published a comprehensive report showing how the fight for control of mineral wealth remains a key underlying driver of the 12-year conflict, which has killed millions and displaced many more.

The report names international companies trading in minerals that come from armed groups.

For too long, international governments, including the US, have not paid enough attention to the economic drivers of this war.