Global Witness - Breaking the links between natural resources, conflict and corruption
Côte d'Ivoire
Côte d'Ivoire was once the economic powerhouse of West Africa: a stable and affluent country which had managed to avoid the descent into civil war that had plagued so many of its neighbours. In the 1970s and 1980s, it was known as the ‘African miracle'. And yet in September 2002, an army mutiny escalated into a full-scale rebellion, resulting in the country being split into a rebel-held north and a government-held south. Several failed peace agreements later, the country remains divided in a military stalemate. The standoff has led to a culture of impunity characterised by human rights violations such as extortion, harassment and intimidation of civilians by government forces and harassment, arbitrary arrests, extortion of money and robbery by the rebels. There are also reports of extra-judicial executions and the use of child soldiers by both sides.
Natural resources are key to the financing of the conflict. In September 2005, Global Witness investigations discovered that diamonds mined in rebel-held Forces Nouvelles areas were being smuggled into Mali and Guinea and then onto the international market. A UN Panel of Experts report found that the rebels were using cocoa and cotton, as well as diamonds, to fund their war effort and for personal gain. In December 2005, three years after the conflict started, the Security Council extended the arms embargo against Côte d'Ivoire to include a ban on rough diamond exports from the country.
Natural resources are also important in funding the government and government-associated militias. Some 40% of the world's cocoa comes from Côte d'Ivoire. Cocoa makes up 35% of the country's export earnings. The majority of cocoa plantations are in the government-controlled south of the country. The UN Panel of Experts estimated that 20% of government military spending had come directly from the cocoa industry in the form of contributions, loans and grants. This is in addition to the routine contributions made by the industry via taxes to the treasury. For example, in August 2003, the chairman of one of the cocoa industry's regulating bodies admitted giving large sums of the institution's money to President Gbagbo to enable him to ‘defend Ivorian people'.
The situation in Côte d'Ivoire suggests worrying signs of a war economy that is thriving on a combination of access to land and control over natural resources, coupled with social and ethnic violence. Given the recent history of other West African countries and the presence of Liberian militias in parts of Côte d'Ivoire, failure to address this control over natural resources could constitute a danger not only for the country but also for the entire region.
Latest Publications
July 2010
The Bribery Act: what it means for business
Briefing paper produced by the Chartered Institute of Managment Accountants in collaboration with Global Witness outlining the implications for accountants and businesses worldwide of the new 2010 UK Bribery Act.
Global Witness takes UK government to court for failing to list UK companies trading Congo conflict minerals for UN sanctions
Global Witness has made an application to the High Court for a judicial review of the British government is acting unlawfully in refusing to put forward eligible UK companies and individuals trading in Congolese ‘conflict minerals' for targeted UN sanctions, said campaign group Global Witness today
Рисковый бизнес: кто контролирует Казахмыс ПЛС?
Russian translation of 'Risky Business' report.
Russkyi perevod doklada 'Riskovyi biznes.'
Letter on civil society participation in climate change and deforestation talks
Global Witness has signed a letter along with 39 other organisations complaining about the short notice given to civil society groups regarding participation in a meeting of the Interim REDD+ Partnership in Brasilia from 14-15 July. The non-transparent process and restrictions on participation violate the spirit and letter of the agreement and represent a serious false start.
U.S. passes landmark reforms on resource transparency
Global Witness strongly welcomes a ground-breaking new bill, passed by the U.S. Senate today, which will help to lift the curse of corruption and conflict from poor countries that are rich in oil and minerals by promoting greater public oversight and responsible trading practices.
Crisis averted by last-minute deal on Zimbabwe diamonds, but campaigners warn that biggest test lies ahead
A deal reached by the Kimberley Process diamond certification scheme could pave the way for reinforced oversight of diamond production in Zimbabwe, while allowing for limited exports. The deal is far from perfect and its success or otherwise will be determined by what the main players do next.
Renewing the Pledge: Re-Engaging the Guarantors to the Sudanese Comprehensive Peace Agreement
With six months until a referendum on Southern independence, Sudan is alarmingly unprepared. Renewing the Pledge is published by a coalition of 26 NGOs, including Global Witness from Africa, the Middle East, Europe, and the US. The report calls calls for urgent action from African heads of state who will meet shortly at a major summit of the African Union in Uganda from 19 – 27 July.
Six months before critical referendum, Sudan alarmingly unprepared
With six months until a referendum on Southern independence, Sudan is alarmingly unprepared according to a new report published today by a global coalition of 26 humanitarian and human rights organisations. The report calls for urgent action from African heads of state at the African Union summit.
Kazakh company on FTSE 100 a risk for investors, says Global Witness
Kazakhmys plc, a FTSE 100 company which mines copper in the Central Asian nation of Kazakhstan, failed to declare potentially key information about its shareholders and directors when it listed on the London Stock Exchange, thereby exposing investors to unquantifiable risk, warned Global Witness in a report published today.
Bail for Zimbabwe diamond activist welcome, but charges must be dropped
We welcome the decision by the Harare High Court to grant bail to Zimbawean human rights campaogner, Farai Maguwu, who has been in custody since 3 June. The spurious charges against Fairai must now be droppped immediately.
Risky Business: Kazakhstan, Kazakhmys plc and the London Stock Exchange
Kazakhmys plc, a FTSE 100 company which mines copper in the Central Asian nation of Kazakhstan, failed to declare potentially key information about its shareholders and directors when it listed on the London Stock Exchange, thereby exposing investors to unquantifiable risk.
This report raises serious concerns about London's "light-touch" market regulation and argues that it would be in the public interest for companies like Kazakhmys to be required to provide much more information to investors about political risk.
Congo Now! petition calls on UK to do more to end violence in DRC
Congo Now! is a coalition of non-governmental organisations, politicians and Congolese activists who are calling for the UK government to do more to end the cycle of violence and suffering in the resource-rich country.
Global Witness welcomes new EU law banning illegal timber
The European Parliament has introduced new legislation banning the trade of illegally sourced timber and timber products in EU member states. Global Witness warmly welcomed the reform as an important step towards cracking down on illegal logging around the world.
Do No Harm: A guide for companies sourcing from the DRC
Companies sourcing minerals and metals from conflict zones have a responsibility to ensure that they are not directly or indirectly funding human rights abuses or other crimes. Some companies claim that it is too complicated or too difficult for them to do. Global Witness has produced a guide, outlining the steps they must take.
Negotiations between north and south Sudan must include a fair and transparent oil deal
A fair and transparent arrangement for sharing and monitoring the revenues from Sudan’s oil fields should be a top priority for negotiators from north and south Sudan who begin talks today on what will happen if the south votes for independence in January’s referendum, said campaign group Global Witness.
5 Principles for a Post-Referendum Oil Deal in Sudan - briefing paper
A fair and transparent arrangement for sharing and monitoring the revenues from Sudan’s oil fields should be a top priority for negotiators from north and south Sudan who begin talks today on what will happen if the south votes for independence in January’s referendum. The January vote could see the birth of a new country: if so, it will be impoverished and heavily dependent on oil revenues, yet also dependent on former foes in north in order to export its oil. Transparency over oil revenues will be critical to preventing a return to war - this briefing paper outlines 5 principles that will be crucial in reaching such an agreement.
June 2010
Liberian debt relief welcome but better financial controls needed to prevent corruption
The decision by the World Bank to grant debt relief to Liberia under the Heavily Indebted Poor Countries Initiative (HIPC) is welcome but more needs to be done to prevent corruption in the post-conflict country.
