Library: Sustainable Development, Sustainable Security

Investing in Burma's Future

Published July 31, 2012 | By Krista Hendry

The recent move by the Obama Administration to suspend unilateral sanctions on Burma (Myanmar) led to a flurry of opinions. Many who oppose the move highlighted the specific request of Burmese Nobel laureate Aung San Suu Kyi for Western governments to not remove sanctions that prevented their companies from working with the state-owned Myanmar Oil and Gas Enterprise (MOGE). At the center of this argument is the notion that Western governments and private enterprise should hold back from diving in to the Burmese extractive sector until the country has adopted internationally accepted measures of transparency and accountability.

The Fund for Peace strongly agrees with that principle. However, in practice, the economies of countries newly opening or emerging from conflict are a vital component to putting the country on a path towards sustainable development and security and, ultimately, to good governance. The investment of responsible companies can be a catalyst for improved security, statebuilding and democratic reforms.

If the Obama Administration had heeded the arguments of Ms. Suu Kyi and her supporters and kept the sanctions on the Burmese extractive sector in place -- thereby preventing U.S. oil and gas companies from investing in that country -- it could have had resulted in unintended negative consequences, as we have seen in other conflict-sensitive places in the world. The truth is when a natural resource exists, it will be extracted. If American companies are prevented from competing to operate or invest in that extraction, then a non-US company will be selected. There is an inherent risk the selected company may not develop policies or programs that will benefit the local communities, ensure that human rights are respected, and promote improved governance.

Economic Development in the New Libya

Published February 29, 2012 | By J. J. Messner

Libya is currently undergoing a period of reconstruction after having endured a months-long civil war that brought to an end over four decades of dictatorial rule by Colonel Muammar al-Qadhafi. As the country stabilizes and rebuilds, there will be significant interest in new and renewed investment in the country. It will be necessary for businesses to understand the challenges facing Libya in the short- and medium-term and to invest and operate responsibly in the country.

Only the rapid and urgent creation of economic opportunity carries the power to prevent the worsening of a multitude of potential conflict drivers. Increased investment will be a key catalyst for these economic opportunities and such investment will require a more secure and stable operating environment. This security and stability will be reliant on professional and adequately trained state security forces. The international community is uniquely positioned to take advantage of this window of opportunity to engage the Libyan government, and in turn provide technical assistance to pursue the objective of security sector reform and capacity building in the “New Libya.”

Roundtable on Conflict-Free Gold

Published December 6, 2011 | By Sonia Hausen

On the 7th of September 2011, members of civil society, government, and the private sector convened in New York City to discuss the World Gold Council’s (WGC) draft Conflict-Free Gold Standards. The day-long Roundtable was facilitated by the independent, nonpartisan, and nonprofit organization, The Fund for Peace. WGC, the initiator of the meeting, sought feedback and guidance to ensure the Standard does what it intends and addresses what matters to all relevant stakeholders in order to build consensus and support within a broader global context. Experts assembled to share perspectives, make further recommendations, discuss efficacy and practical implementation, and jointly recognize the challenges facing companies operating in complex and sensitive environments. The following is an overview of the various discussion topics, opinions, and advice brought to light by participants during the session. The session was held under the Chatham House Rule.

VPSHR National-Level Implementation

Published November 10, 2011 | By Krista Hendry and Diana Klein

While the Voluntary Principles on Security & Human Rights have grown over the past ten years to include 7 governments, 18 companies, and 9 NGOs, there has been too little focus on national?level implementation within the countries that have challenges related to security and human rights. At the same time, there has been little guidance, with the exception of a case study on Colombia, given to those in the countries on how they can encourage VPs adoption by host governments and extractive companies operating in the country.

The purpose of this document, which will be public, is to give guidance to those interested in initiating or supporting a national?level process to implement the VPs. The document lays out basic elements for consideration based on existing national?level processes. The Fund for Peace (FfP) and International Alert (IA) have joined in this effort as two of the participant NGOs in the international?level dialogue of the VPs, with funding from the Government of Norway and support from the Government of the Republic of Colombia, two of the governments formally involved in the process. This guidance note has been informed by existing in?country processes ? largely Colombia and Indonesia, as well as experience and insight gathered from participants at a workshop in Bogota in June 2010.

This guidance note should also not be viewed as overly prescriptive. As will be evident throughout this document, a national?level process will invariably be different in each area. Every country will have its own unique set of actors, challenges and opportunities.

Human Rights and Business Roundtable

Published November 10, 2011

Launched in 1997, the Human Rights and Business Roundtable brings together multinational businesses, human rights organizations and other stakeholders to discuss issues of common concern and explore possible solutions to problems in conflict zones in an atmosphere of mutual respect, trust, and confidentiality.

Today, the Roundtable focuses exclusively on the extractive industry, although the lessons learned and case studies of the Roundtable provide value to all sectors. The Roundtable is an invaluable resource for corporations and NGOs to work together to promote sustainable development, the rule of law and open societies.

Assessing Risk and Finding Opportunities

Published March 1, 2010 | By Krista Hendry

Extractive companies have come under increasing scrutiny due to their operations in areas with weak or oppressive governments, impoverished communities and overall potential for conflict. Often blamed for creating or exacerbating conditions that could cause violence to erupt or human rights abuses to occur, extractive companies have become more aware of their potential impact on and within communities. To protect their employees, physical assets, ability to operate and international reputations, extractive companies assess not only their own security, but also that of neighboring communities and often the country as a whole.

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