However, sanctions and embargoes might not be the right measure or even feasible when addressing natural resources that require a more stable political and investment environment for exploitation, but could prompt conflict aimed at controlling these resource. To prevent such a conflict, logic measures that address unequal distribution of existing natural resource revenues, provoke compensation to tense won surer Owe to environmental damage AT resource extraction, and promote the transparency of financial flows may prove to be more effective.

To settle such a conflict, these same issues, addressed in a credible manner, could comprise part of a successful peace settlement. The nature of natural resource is also likely to affect the international community’s leverage on fighting groups; for example, if the commodity flows can be subject to sanctions, the outside rowers may have greater influence on the side holding access to the resource.

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In addition, if resources are not properly grouped, we risk diluting the results of any analysis since the different natural resources may affect the dependent variable (risk of conflict, duration, economic growth etc. ) differently and even to opposite directions. For example, it is conceivable that some natural resources may actually shorten the duration of a conflict while others may prolong them. Similarly, some resources may raise the risk of conflict onset while others may do not have such an effect on the risk of conflict.

Research on civil war is not the only domain that is interested in natural resources; economics would also benefit from a better classification structure for natural resources. 4 Economists are interested to define to which extent resource abundance affect economic growth and have sought to explain so called “resource curse”l . Common to both the conflict and economic growth research is that they have not seriously attempted to determine which natural resources are most likely to increase the risk of conflict or which have most effect on adverse economic growth.

In general, most studies fail to consider if it is a particular sub-set of resources with certain economic and geographical characteristics such as low mining costs and high value-to-weight ratio that explain the perceived relation between natural resources, armed conflict and economic growth. However, characteristics defining resource’s impact on risk, duration and type of conflict may differ from those that influence the rate of economic growth.

Therefore, there might not exist one classification scheme that is good for both economic research and civil war, although as far as poor economic Roth has been implicated as a cause of conflict, there may be some crossover. Recent empirical studies on civil conflict have used different approximations for natural resource abundance or dependency. Most studies use primary product exports ratio to GAP as In the mid-ass, it became clear that countries with high dependency on primary product exports perform worse than countries that are less dependent on natural resource exports.

One plausible explanation for the poor economic performance is so-called Dutch disease, while another argues that abundant resources provide easily curable rents that can sustain harmful political and institutional structures Tanat would not persist walkout ten resources r UTC Lease Ana toner explanations, see for example, Cash & Warner 1995, 2001; Auto & Gel 2001; Robinson, Torrid & Verdi 2002; Ross 1999) In the recent empirical studies, natural resource and primary commodity have been used interchangeably.

The two terms, however, do not mean the same thing. A primary commodity is a good that has not been manufactured or refined while natural resources are inputs provided by nature, such as oceans, land and mineral deposits that are used to create income. Thus, forest and agricultural products are primary commodities but not natural resources (soil is the actual natural resource; cultivation Just a mean to exploit it). 5 a measure of dependency (Collier & Hoofer AAA, Bibb; Allahabad & Sambaing 2002; Fearer & Latin 2001).

Some, as for example, Collier & Hoofer (2001) use export structure to define the main resource type exported and likewise Fearer & Latin (2001) use the export structure to define a dummy variable for significant oil exporters. De Soya (2002) employs an alternative method to assess the availability of natural resources. He measures abundance by taking the absolute value of stock of resource per capita for renewable resources (agricultural and forest products) and mineral assets. These aggregate and export structure types of measures for natural resource availability are inevitably coarse.

In these measures, resources that are very different from one another are lumped together, and minimal attention is given to the fact that minerals differ greatly from one to another. For example, while placer diamonds are easily exploited, Kimberley diamonds require intensive technology to be extracted. There are, however, limited examples in theoretical and case studies of attempts to divide natural resources into more precise groups. Conflict literature has so far tried to classify resources according to their rate of regeneration, concentration and loyalties. Natural resources are frequently classified as renewable or non- renewable.

Researchers who claim that conflict outbreaks are related to resource scarcity often argue that renewable natural resources are the conflict generating resource type (Homer-Dixon & Built 1998; Brander & Taylor 1998). Renewable resources are defined as resources that are regenerated on a human time scale. Examples of renewable resources are water, fisheries and forests. These types of resources are often connected in ecological systems; for example, water is necessary Collier & Hoofer (AAA) classify primary commodity exports into food, non-food agricultural, oil, other raw materials and ‘mixed’ categories. 6 for forest growth and fisheries.

By contrast, non-renewable resources are less likely to participate In ten circular mows AT ten ecosystem, Ana exploitation AT one resource typically does not affect the availability of the other resources (as long as the extraction does not destroy the other resource). Non-renewable resources can be unconsidered as a stock that has a regeneration rate of zero over a relatively long period. L Another approach to classification is to define natural resources according to their geographic concentration – in other words, is the availability of the resource restricted to geographically small areas or does it spans larger areas?

For example, forests cover wide areas and are therefore considered to be diffuse resources. Point resources are highly concentrated and do not have a significant real extent on a map. For example, many minerals occur in small areas, and on a map, these deposits are represented as points. Some empirical studies have used the point-diffuse distinction to assess natural resources affect on conflict. For example, to assess the scope of conflict Bauhaus & Gates (2002) define activities such as oil drilling and pit mining as point resources while timber, drug cultivation and alluvial diamonds are considered to be “more widely available”.

Figure 1 shows how it is possible to combine the two classifications of natural resources – geographical concentration and regeneration rate. Based on literature, the scarcity approach can be understood as mostly concerned with the resources located in the upper left corner of the figure renewable diffuse resources) while abundance oriented conflict literature For example, peat’s regeneration rate is not zero since peat forms slowly in the swamps. However, on any practical time horizon, the regeneration rate is almost zero, and thus peat is often considered to be a nonrenewable resource.

Point resources are commonly associated with higher rents than diffuse resources and thus provide incentives for rent seeking. In the literature, abundant point resources are often associated with higher risk of conflict (see for example, Addison et al. 2001 ; Addison & Murdered 2001). 7 ends to blame resources located in the lower right corner (non-renewable point resources) for conflict propensity. This may mean that the two approaches – one claiming scarcity of natural resources is causing conflicts and the other one accusing abundance – do not need to be incompatible.

Renewable Diffuse Non-renewable Vegetation, soil, forest, corps Peat Animals Some substances found in Earth’s crust like gravel Water and sand Some crops/animals that require very specific conditions Many ores, like gold Point Hogue 1 Natural resource calculations Dye ten resources regeneration rate Ana Its geographical concentration. El Billion (2001) considers the difference between point and diffuse resources in his typology of conflict types.

Besides dividing resources into point and diffuse resources, he also assesses the relative location of resource area in relation to state capital used as a proxy for state control. He argues that point resources near the capital are associated with coup d’©tat attempts while point resources located in the periphery motivate violent secession conflicts. Diffuse resources in turn are associated with riots when located near the capital and, when farther away, with warlords as overall armed groups may violently claim their share of natural riches.

The division of natural resources into point and diffuse resources faces several challenges. First, not all resources are clearly point or diffuse but rather fall between the two extremes. For example, while Kimberley diamonds clearly are point resources, placer diamonds are more spread out and can be considered (semi-)diffuse. On a global scale, however, placer diamonds can still be considered as point resources since these areas are relatively small and limited to few regions in the world. Likewise, oil deposits are often classified as point resources, although an oil field can in fact be quite extensive.

The fact lorries are point extraction sites does not change the reality that an oil field on a geographical scale might be as much semi-diffuse as a placer diamond deposit. Moreover, it is not clear that all resources in either the “point” or “diffuse” categories have same characteristics and same impact on conflict. Ross (2002) distinguishes natural resources according their loyalties, absorbability and legality and forms hypotheses how these three resource characteristics affect civil war. Ross defines topicality as the ease of resource extraction and transportation.

As examples of loadable resources, he identifies alluvial gemstones, agricultural products and timber. By contrast, he categorizes deep-shaft minerals and gemstones, oil and natural gas as non-loadable resources. Ross also differentiates between the ease of transportation of the natural resource product and how easily the available mode of transportation is blocked (I. E. , its absorbability). For example, diamonds or drugs that are flown from the production area are not obstructed while resources that are transported by trains or trucks are moderately obstructed.

Resource transported by pipelines, like gas and oil, are the most obstructed. Ross’ (2002) method of classifying the resource’s loyalties may better capture the potential value of a resource for a rebel group, and it may also assess when the resource is valuable to the rebels- either during conflict or after peace is restored. It can be argued that the point-diffuse categories may be one element of loyalties since point resources may be easier for government to control than resources that are spread over larger areas.

All other things being equal, rebel forces would find diffuse resources easier to loot Han point resources. However, to account for loyalties, one has to consider the different aspects of resource exploitation from exploring to end markets for all anneals. I 9 n general, Dates on case studies, resources such as alluvial diamonds and drug production have been considered as loadable resources. There may be many more resources that could potentially be classified as loadable.

Since there are no agreed criteria for loyalties and therefore, no systematic effort to find natural resources that might be loadable, these other resources are not accounted for in empirical conflict studies. Until now, sources defined as loadable have been identified from case studies that show that resource revenues were used to finance the conflict. (Examples include precious stones in Sierra Leone, Angola, Zaire and Manner and coca cultivation in Columbia and Peru). Although the geographical concentration of a resource may be relevant, other natural resource characteristics should also be considered.

Loyalties is probably one of the most important ones. The value of a resource for a rebel group is based on its loyalties during a conflict and is defined among other things by the easiness of extraction and transportation (Ross 2002). To mine many natural resources, such as Kimberley diamonds, significant investment in sophisticated technology and skilled labor is required that are often available only during peacetime when large companies are willing to establish mining activities.

During a conflict, future revenues from such a resource are likely to have a relatively high discount value and are associated with significant uncertainty since the revenues only occur after victorious rebellion and the reestablishment of peace. Therefore, a non-loadable resource may be less likely to increase the risk of conflict onset than the availability of loadable resources. In the case of loadable resources that only are available to the rebels during a conflict, the duration of conflict is likely to increase since the conflict situation boosts rebel income and finances the warfare.