Select Committee on International Development Sixth Report


3  Building the peace

The greed or grievance debate

72. Violent conflict is often a result of the breakdown of a society's mechanisms for dealing with change and mediating between different groups. However, conflict may serve a variety of political, social and economic functions for individuals or groups. Many actors may have a stake in the continuation of conflict. Consequently, the idea that conflict will end as soon as a peace agreement is signed is unrealistic. Building peace is a process which needs to involve not just the leaders of rebel groups and the government, but representatives of all those who are involved or caught up, in a voluntary or involuntary manner, in the conflict.

73. Building a viable peace involves addressing the causes or 'drivers' of conflict so that conflicts do not re-emerge at a later date. Some have suggested that if there are economic causes of conflict, these are usually attributable to "greed" and that such greed is normally much more significant to the conflict than any political or social grievances in the country concerned. We have no doubt that the quest for personal or corporate gain — nationally and internationally — has been a key driver of conflict and continues to be so — particularly in the exploitation of natural resources. However, we do not believe that "greed versus grievance" arguments are particularly helpful or illuminating.

Addressing grievances

74. Grievances matter — if left unresolved, they may resurface later on. Given that 50% of conflicts restart within ten years[71], it is clear that the causes of conflict must be tackled as part of peacebuilding activities. It is true that even intense grievances do not always lead to rebellion, and this is partly how extreme inequalities develop in the first place, but if the grievances which contributed to a conflict are not properly addressed, peace agreements will not last.

75. Professor Collier, one of the witnesses in our inquiry, adopts an approach which tends to minimise grievances as causal factors in conflict.[72] Based on other evidence we heard, we think that some behaviour which is labelled as greed in such an approach may in fact hide grievances. Poverty, for example, can be a grievance. What is less clear is whether the grievance is about simply being poor, or being poor while others are becoming rich. The latter would lead to questions of inequalities. There is disagreement over the role played by inequalities in generating conflict. While Professor Collier asserts that his statistical analysis does not show inequality as a strong factor in the emergence of conflict,[73] evidence from Robert Picciotto suggests that horizontal inequalities, or the exclusion of ethnic or religious groups from economic opportunities, can be a causal factor in the onset or return to conflict.[74] It may be difficult to determine the true motivation for all actions, and hence the extent to which behaviour is motivated by greed or grievance.[75] However, if grievances are expressed as a contributing factor to the emergence or perpetuation of conflict, they must be investigated and addressed.

CHALLENGING IMPUNITY, TRANSITIONAL JUSTICE

76. Transitional justice refers to a range of approaches which societies take in order to deal with the legacies of widespread human rights abuses as they move from conflict towards peace and the rule of law. The way in which each society chooses to deal with its past will differ depending on the context, and the peculiarities of the conflict. The approaches may be both judicial and non-judicial. That is, they may involve domestic or international prosecutions of perpetrators, or they may involve an approach similar to that pioneered by South Africa's Truth and Reconciliation Committee. Reparations may be required and some institutional reform may also be necessary, especially where the arms of the state have been involved in such abuses.

77. The UK Government has invested heavily in peacemaking activities in Sierra Leone since 2000. In particular, it has funded the building and running of a Special Court to put on trial the leaders of the conflict.[76] During our visit to Sierra Leone we were told, on several occasions, that the operations of the Special Court were seen by most Sierra Leoneans as unconnected to their lives and their experiences of the conflict. The Court is expensive to run at US$25 million a year; it had great difficulty in getting neighbouring countries to surrender one of the key leaders of the conflict, Charles Taylor, to stand trial (although his arrest has been widely welcomed); and has only indicted thirteen people from all sides of the conflict. There are thousands of other people responsible for crimes under international law who will not stand trial. We were unconvinced by plans we heard for the 'legacy' of the Special Court which includes building up the capacity of the justice system in Sierra Leone, and the future use of an expensive building.

78. While initiatives such as the Special Court can address some grievances, for example the abuses committed by the leaders of the conflict, a more 'bottom up' approach — listening to, and seeking to deal with the concerns of youth, the rural poor, and other groups in civil society — would be likely to produce a wider perception that grievances were being taken seriously. When we challenged DFID about the fact that in Sierra Leone people continue to live in villages with neighbours known to have committed atrocities, DFID responded that:

"a Truth and Reconciliation Commission (TRC) was established in 2000 in Sierra Leone and presented its report to the government in 2004. It was mandated to make findings in relation to the causes, nature and extent of violations and abuses during the armed conflict. It was also mandated as part of its brief to make recommendations for implementation of a reparations programme for the victims of the conflict. The government has been very slow to address many of the report's recommendations but did decide in August that the yet to be established National Human Rights Commission should take the TRC's work forward. This Commission is currently being appointed."[77]

79. In most cases it would be almost impossible to punish or record all abuses. The process would consume huge resources, and it could be argued that such a policy runs the risk of destabilizing the newly found order. Also it is not uncommon to assume that people are either abusers or victims, when in some conflicts many have been both.[78]

80. Grievances matter because if they are not properly addressed they risk precipitating a return to conflict. It is a necessary, but not sufficient, step to address only the crimes committed by high level officials and rebel leaders. While this approach, exemplified in the Special Court of Sierra Leone, sends a message of challenging impunity, too often it only scratches the surface. Abuses and crimes carried out at a lower level also need to be addressed in a manner which recognises the impact of the conflict on communities, families and individuals. In this way peacebuilding will have greater local ownership and more chance of lasting.

TRADITIONAL JUSTICE IN UGANDA

81. Traditional justice refers to local or customary norms used to resolve disputes or allocate resources. On our visit to northern Uganda we met the Acholi religious and traditional leaders who have formed the Acholi Religious Leaders Peace Initiative (ARLPI). They, along with some civil society groups we met, expressed a desire for a negotiated settlement with the LRA. Their view is that the Government of Uganda has expended a great deal of effort and resources on a military solution to the conflict with little success and has not tried to negotiate seriously with the LRA. When a negotiated peace settlement was closest, the ARLPI claim that the Government of Uganda imposed a tight deadline for signing the agreement, one which would have been impossible for the LRA to meet. The ARLPI base their approach on the concept of justice held by many Acholi which allows for forgiveness and reconciliation. They argue that it is the Acholi people who should be directing the pace and content of a peace agreement.

82. In October 2005 the referral of the case of northern Uganda to the International Criminal Court (ICC) by President Museveni resulted in the first arrest warrants, which have met with mixed support in Uganda. Evidence we received from Christian Aid and from the Northern Uganda Advocacy Partnership for Peace (NUAPP) expressed concern about the sequencing of ICC investigations and possible prosecutions. Christian Aid contend that while the ICC has an important role to play in ending the culture of impunity, if badly managed its involvement could prolong and intensify the violence. ICC engagement alone will not end the conflict, and if the international community is serious in its desire for peace it should also be supporting mediation, the reintegration of combatants and plans for reconstruction.[79] We agree. We gained the impression that Uganda's Amnesty Commission was working well and that initiatives to reintegrate abducted people had recognised that one person can be both a victim and a perpetrator. Most of these initiatives were funded by donors, but there is an obvious need for the Government of Uganda to be seen to be involved in such processes, especially as the north has been an area of political opposition to Museveni's Government.

83. It was put to us that the Acholi people exhibit a remarkable capacity to forgive those who may have committed atrocities against their own communities, especially (and perhaps most understandably) children. At the Amnesty Commission Office in Gulu we met three children who had been abducted by the LRA and subsequently had returned to their families and communities. We also visited a Reception Centre for returning child combatants, including young women with children born as a result of rape by the LRA. They were being cared for, and demobilised, before being sent back to their communities. At the same time, people we spoke to in IDP camps expressed a deep fear of the LRA, and a desire not to leave the camps until they were certain it was safe to do so. The Government of Uganda is unable to guarantee their security or to effect a military solution. The issuing of ICC warrants for the arrest of the top five leaders of the LRA provides an opportunity to ensure that impunity is ended, at least for the leadership of the LRA, and does not foreclose local attempts at reconciliation and the use of traditional justice.[80] Recent offers of amnesty to the leadership of the LRA by the Government of Uganda present a dilemma, as this could undermine the credibility of the ICC, whose reputation may also be damaged if pressing for the full implementation of the indictments was the only obstacle to a peace agreement which would allow people to return to their homes.

84. Traditional justice in Uganda offers an important opportunity to recognise local norms and customs, and a means of ensuring that such justice is bottom-up and locally owned. Despite fears expressed by some CSOs we support the issuing of ICC warrants for the leadership of the LRA. We are concerned at the recent offer of amnesty to the leadership of the LRA by the Government of Uganda. The ICC is an international initiative to end impunity for serious war crimes. We hope that the UK Government, a founding member of the ICC, will help to ensure that the credibility of the organisation is not damaged by the actions of the Government of Uganda.

GOVERNANCE: THE ROLE AND TIMING OF ELECTIONS

85. It has come to be expected that soon after the signing of a peace accord, an electoral process should be set up or re-established, and (ideally) multiparty elections held within a short period of time. Elections provide an important opportunity to engage the whole population, victims and perpetrators, in an acceptance of the peace process and the conferring of legitimacy on its outcomes. In addition, an elected government should provide the necessary channels for the electorate to voice their grievances and find collective solutions for these. The example of Uganda's recent elections demonstrates some of the issues surrounding donor support for elections.

86. Uganda held its first multi-party elections in 2006. The elections themselves received a clean bill of health from international election monitors. However the process leading up to the elections did give rise to some concerns from the UK Government, and later other donors. In May 2005 the UK Government withheld £5 million of its £40 million budget support for 2005-06 to the Government of Uganda because "insufficient progress had been made towards establishing a fair basis for a multi-party system". [81] In December 2005 the UK Government withheld £15 million from the 2006-07 allocation because of delays in putting in place the procedures for multiparty elections, the continued use of state funds for Museveni's own party and the arrest of the leader of the opposition, Kizza Besigye. We have already commented on the seeming confusion in the UK Government's approach to issues of governance and issues of conflict. A further concern is that international donors have held up Uganda, and Museveni's Government, as an example of good development practice, but have not devised a development strategy short of the blunt instrument of withholding funds which conflicts with another DFID objective - predictability of aid.

87. The ODI, in a paper written by Paolo de Renzio, calls the UK response to Museveni's actions prior to the elections a late reaction to a foreseeable event.[82] He argues for greater historical analysis, more joint action with other donors and, importantly, the development of domestic accountability institutions - for example an independent Parliament, think tanks, and civil society organisations which provide an effective counterbalance to the government. We agree with the ODI that the building up of institutions for democratic accountability should play a larger role in donor governments' support for electoral processes. It would also bring an end to the practice of adopting 'donor darlings' based on personalities rather than conduct and the strength of institutions. This would allow for peaceful transition between rulers and eliminate the perpetuation of one person rule or elites.

88. In the DRC we saw much international effort being put into the holding of elections in July 2006. The UK Government played a significant role in facilitating the process. We met the head of the Election Commission in Kinshasa who explained to us the challenges of organising an election in a country as large as the DRC with most places outside Kinshasa being inaccessible by road. The UN Peacekeeping force, MONUC, helped to drop and collect electoral material in remote areas. The turnout on the day was high and the elections were largely peaceful.

89. The political parties fighting the election in the DRC reflect many of the factional lines of the former conflict in the country. In the event of the losers not accepting the result or the victors using their victory to deny losers a say in subsequent governance arrangements, there is clearly the danger of armed conflict breaking out once again. In the first round of the DRC presidential elections Joseph Kabila's support came largely from the east and Jean-Pierre Bemba's from the west of the country. It is important that the winner of the second round ballot, on 29 October, includes leaders from all parts of the country in the government.

90. Some commentators have voiced concerns about the tendency to rush towards elections in countries emerging from conflict, often as part of the peace agreement. Paul Collier argues that elections do not reduce the risk of conflict, they simply shift it to the future.[83] Evidence from International Alert for example reports that rushed elections can sometimes fuel instability.[84] In his book, At War's End, Roland Paris argues that the international community is seeking to create liberal democratic systems in post-conflict countries before the appropriate institutional preconditions and safeguards are in place.[85]

91. Paris identifies two key preconditions for peaceful and successful elections. These are: firstly, that there should be an adequate security force, local or international, capable of maintaining basic security; and secondly, that there are electoral rules and mechanisms in place for dealing with the disputes over the outcome of the elections. In addition, he argues that where there are armed factions capable of disrupting the process and overturning the outcome, demobilisation and disarmament may be another precondition.[86] What is needed, Paris argues, is not quick elections but a greater focus on the building up of governmental institutions which can manage political and economic reforms. DFID recognises this to some degree, although a significant part of its budget in the DRC has nevertheless been allocated to supporting the electoral process. DFID officials told us that they were unable to think of any alternative to elections to deal with the post-conflict situation in DRC.[87]

92. Institution-building in post-conflict societies is a crucial part of improving governance. Democratic elections are essential for creating a legitimate government. The establishment of a democratic system is a long-term project, which must be owned by the people. Donors should not suppose that one free multi-party election will entrench democracy. Long-term aid will continue to be needed in post-conflict states to build and strengthen accountable institutions and to nurture a democratic culture.

The economic dimension of conflict

THE REGIONAL DIMENSION OF CONFLICT

93. We have been told that the regional dimension of conflict is often neglected by policy makers.[88] One of our witnesses, Dr Cooper, of the Department of Peace Studies, University of Bradford, argues that development and post-conflict reconstruction policies underestimate the interconnections — political, economic, military and social — across borders which characterise many conflicts. One consequence of ignoring regional linkages is that the imposition of a regulatory framework in one state may simply have the unintended consequence of shifting problems such as trafficking, weapons proliferation, and even conflict, across borders. Dr Cooper explained to us how West Africa and the Mano River Union sub-region offer a perfect example of regional mercenary activity:

"What you have had is that a group of mercenaries have moved around from conflict to conflict and have been part of the problem. It seems to me that simply launching nationally-based DDR[89] programmes does not address that problem totally. At some level you need a regional focus to think through the fact that you have got this group of actors who are moving across borders, and who are not the only reason which is bringing about conflicts but they are part of a set of factors which are facilitating the next conflict which is going to happen next-door."[90]

94. Our visit to the DRC illustrated to us the need for a regional approach to peacebuilding in the Great Lakes region. The UN Office for the Co-ordination of Humanitarian Affairs (UN-OCHA) estimates that the conflict has created over 1.7 million internally displaced persons and over 300,000 refugees in neighbouring countries. In addition there is continuing hostility by external armed groups such as the Forces Démocratique de Libération du Rwanda (FDLR) in North and South Kivu, and other rebel groups operating further north in the Ituri region which borders Uganda and Sudan.

95. DFID funds a number of regional and sub-regional organisations through the Africa Conflict Prevention Pool. Since 2003 the Africa Pool has also been used to fund DFID's regional conflict advisers, four of whom are now based in Africa. It is too early to evaluate the efforts of these regional advisers but we were struck by the fact that in Sierra Leone, MoD advisers working with the Sierra Leone armed forces told us that they were unaware of the activities of the West African regional conflict adviser, even though these advisers are supposed to report jointly to DFID, MoD and the FCO. DFID did not provide evidence of any mechanisms for communication and we felt this indicated a deficit in communication between two key players, DFID and MoD. Moreover, these advisers are there not so much to provide a regional analysis of conflict as to provide conflict analysis, on a regional basis, to assist in the formation of country strategies.[91] We accept that DFID may not be able to place conflict advisers in all conflict settings; consequently the role of regional advisers is even more significant. DFID therefore needs to ensure that regional advisers are visible, and communicating regularly with all branches of the UK Government.

96. Conflicts, the effects of conflict, and the people who wage them, do not always recognize state borders. The building up of trans-national capacities in Africa through the Africa Conflict Prevention Pools is, in our view, the right approach in that it promises to facilitate greater regional ownership of peacebuilding policies. But donors should also give serious consideration to carrying out, if possible jointly, regional conflict analyses as part of their approach to conflict, so that they do not solely succeed in moving problems from one state to the next.

MANAGING NATURAL RESOURCE WEALTH

97. Natural resource exploitation has played an increasingly prominent role in conflicts around the world since the end of the Cold War. According to the International Institute for Sustainable Development:

"The presence of some commodities, particularly oil, may make the initiation of conflict more likely; the presence of others, for example gemstones and narcotics, may lengthen the duration of conflicts. Revenues and riches may alter the mindset of combatants, turning war and insurgency from a purely political activity to an economic one; conflicts become less about grievance and more about greed."[92]

98. The focus on the role of natural resource wealth rather than scarcity as a cause of armed conflict has provided a new explanatory framework for conflict analysis. In particular, it suggests that there is a larger role for trade and trade policy as an integral part of donor approaches to CPCA states. It also points towards the important role which donor trade and investment policies can play as part of an overall conflict policy.

99. Paul Collier described what he saw as three economic components which increased the risk of conflict: low income, low growth and natural resources. If a country had all three, he said, the chances of conflict occurring were extremely high.[93] However, the link between natural resources and conflict depends critically on the ability of their exploiters to access external markets. If you take away the ability to earn returns from resource extraction, their value to the promoters of conflict falls away.[94]

100. There are various methods by which this can be done. One way to exclude natural resources associated with conflict from international markets is through the use of sanctions. DFID maintains that sanctions can play a role in addressing the issue of conflict resources, primarily by placing restrictions on the export of certain commodities which are being used to fund arms purchases.[95] However, blanket restrictions on trade do not work if conflict resources can be smuggled into neighbouring countries, or if the economic and social development of a country depends on the legitimate exploitation of the resources in question. A more targeted solution is to develop systems to identify and license resources produced legally. The Kimberley Process for diamonds is one example of international action which has created a two-tier market of legitimately and illegitimately-sourced diamonds. The idea is to squeeze the finances of rebel movements while the conflict continues by only permitting trade in certified diamonds.

101. The Kimberley Process works well but is not without its problems.[96] It would be unwieldy to create the equivalent of the Kimberley Process for every category of resources which might be used to fund conflict. Many NGOs agree with the Commission for Africa's recommendation that a more effective solution would be for the UN to agree a definition of 'conflict resources' which would assist the international community in differentiating between natural resources used to fund conflict legitimately, and natural resource extraction and trade used to fund illegitimate activities, which may contribute to the violation of human rights. They argue that such a definition could help prevent and manage conflict.[97] The Commission for Africa also recommended the creation of a UN Expert Panel to monitor links between natural resource extraction and violent conflict.[98] The Government has told us that negotiating an agreed definition of conflict resources through the UN Security Council will be difficult, although they are discussing how to move this forward, together with the creation of an Expert Panel to monitor conflict resources. A cross-Whitehall working group on natural resources and conflict has recently been formed to coordinate government policy on this issue.[99]

102. In our view, the Government needs, as a matter of urgency, to take forward the Commission for Africa's recommendation of a definition of conflict resources, and an Expert Panel in the UN Security Council. Without an agreed definition the international community's approach will continue to be piecemeal, ad hoc and inconsistent. An internationally agreed definition of conflict resources would make it unnecessary to have a 'Kimberley Process' for every resource.

CORPORATE SOCIAL RESPONSIBILITY AND THE DRC

103. Investment by international businesses in CPCA states is usually welcomed by those with an interest in development as an indication that business sees the environment as sufficiently stable and predictable to ensure a positive return on investments. In fact, the reverse is often the case. Foreign companies may seek investments, or continue to invest, in CPCA countries precisely because they can take advantage of instability and of weak and ineffective government regulation. This has been the case with easily extractable and valuable resources such as those found in eastern DRC: coltan, cassiterite, timber, gold, and diamonds. This does not mean that foreign investment should be discouraged in such countries but it does mean that natural resource trade in CPCA states should be approached in a way which recognises the potential contribution of natural resource wealth to the onset and continuation of conflict.

104. Demands for greater corporate responsibility have increased in the last two decades. Many companies have responded to criticism of their activities by developing Corporate Social Responsibility (CSR) codes. NGOs such as ActionAid have criticised the voluntary nature of these codes arguing that they result in insufficient standards of protection for human rights and the environment.[100] Many civil society organisations support stronger regulation of corporate behaviour through, for example, the OECD Guidelines for Multinational Enterprises. These guidelines provide companies with a set of recommendations on good corporate behaviour. The UK Government view, which has been discussed in our report on Private Sector Development,[101] is that a voluntary approach to regulation is adequate at present. The following section explores the operation of the OECD Guidelines in the DRC and considers the limitations of this approach in situations of conflict.

THE UN PANEL ON THE ILLEGAL EXPLOITATION OF NATURAL RESOURCES IN THE DRC

105. In June 2000, the UN Security Council asked the Secretary General to create an expert panel to investigate the exploitation of natural resources in the DRC. The first report of the panel (April 2001) concluded that: "conflict in the DRC has become mainly about access, control and trade of five key mineral resources: coltan, diamonds, copper, cobalt and gold." In addition, it states that:

"the role of the private sector in the exploitation of natural resources and the continuation of the war has been vital. A number of companies have been involved and have fuelled the war directly, trading arms for natural resources. Others have facilitated access to financial resources, which are used to purchase weapons. Companies trading minerals, which the Panel considered to be 'the engine of the conflict in the DRC' have prepared the field for illegal mining activities in the country." [102]

The report recommended an extended mandate for the panel and a follow-up investigation.

106. In October 2002 a second report was published. Annex III of this report listed 85 businesses operating in violation of OECD Guidelines, including 12 UK companies. The list provoked a strong reaction in business and political circles. Most companies thought the UN panel process was problematic. Companies were not consulted before they were listed, and there have been accusations that the allegations were opaque and unsubstantiated.[103]

107. A third report was published in October 2003 whose purpose was to "verify, reinforce and update its earlier findings and, as necessary, revise the annexes attached to its previous report". To do this it attempted to pursue "dialogue with individuals, companies and states referred to in the report, exchange information with those parties, assess actions taken by them and compile their reactions for publication as an attachment to the report."[104] The Panel stressed that it was not a judicial body and that its mandate precluded it from determining guilt or innocence, so instead it had focused on "identifying parties where it has information indicating a prima facie case to answer", either regarding illegal activity or the "breach of international norms of corporate governance and ethics". The Panel sought to achieve a resolution of the issues which led companies to be listed in the annexes. This was not always possible and consequently five different categories of subsequent outcomes were established. Most companies were either directly or indirectly listed as resolved, while some were referred to their National Contact Points (NCP) for further investigation.[105] Four UK companies are recommended by the Panel for further investigation by the UK National Contact Point. Three of these have been investigated and the outstanding company, Das Air, is in the process of being investigated with the NGO Rights and Accountability in Development (RAID) as the complainant.

108. Some NGOs criticised the final report which listed the majority of companies as 'resolved', despite the fact in some cases prima facie issues of misconduct had been identified. The UN Panel report had stated that resolved did not mean absolved, nor did it invalidate earlier findings.[106] NGOs therefore felt that 'closure' could only occur once NCPs had examined the conduct of all companies mentioned, including those deemed resolved.[107]

109. We do not propose to examine in detail here the manner in which the UK NCP carried out its investigations of the four UK companies. The All Party Parliamentary Group on the Great Lakes region of Africa has carried out such research and established a Joint Working Group (JWG), which includes businesses and NGOs, to explore the scope for common ground and to establish frameworks for business conduct in areas of conflict and weak governance. The JWG produced guidelines for the reform of the UK NCP in response to a the DTI consultation.[108] Many of their suggestions have been incorporated into the revised operating procedures for the NCP including making the NCP a jointly-owned body between the DTI, FCO, and DFID.[109] We believe that the Joint Working Group guidelines have contributed to major improvements in the operation of the UK's National Contact Point.

110. We are concerned with the manner in which companies, some UK-based, were put in the resolved category by the UN Panel. For example, Afrimex, a company trading coltan and cassiterite from North and South Kivu, was put into the resolved category by the UN after a meeting with them. When Global Witness carried out research in eastern DRC in February 2005, Afrimex was the second largest recipient of cassiterite from the province of South Kivu. Official Congolese export documents reveal that in 2004 and early 2005, Afrimex purchased large quantities of cassiterite, and a smaller quantity of coltan, from two traders in South Kivu — Muyeye and Olive. The value of this cassiterite amounted to US$1,308,000 in 2004, which is 42.95% of the total cassiterite exported officially from South Kivu in that year. According to staff in the office of Société Kotecha in Bukavu, this ore came from all parts of South Kivu province and Walikale, in North Kivu province, where various militias were still fighting to control the mines throughout 2004. Minerals could not be taken out of many of these mines without payments being made to the controlling militias.

111. By early 2005, the Congolese army had gained control over Bisie mine in Walikale, the largest cassiterite mine in North Kivu. However, we have been told that government troops have continued to commit abuses at the mine and there are reports of soldiers using forced labour to mine and carry the cassiterite.[110]

112. Afrimex stated that they had been operating in the DRC since 1962 and that they had invested heavily in the country.[111] They had maintained their investments and trading activities throughout the conflict. Mr Kotecha, the Managing Director, told us that he had not changed his operations as a result of the conflict, but had simply paid taxes to the authorities in South Kivu during the conflict —to the RCD-Goma — a Rwandan-backed militia group.[112] We were shown a copy of a letter which was sent from a military commander in the RCD-Goma to businesses in South Kivu offering protection in return for financial assistance.

113. Mr Kotecha also insisted that he had no knowledge of OECD guidelines, nor had he ever been contacted by the UK NCP or the British Embassy in Kinshasa after his company had been named in the UN Panel Report.[113] In a subsequent letter to the Committee, Mr Kotecha sought to draw a line between the activities of Afrimex UK and those of the Société Kotecha in Bukavu.[114]

114. We also heard evidence from RAID about the activities of another British company, Alfred Knight, which provides assaying services for minerals from the DRC, and in particular from mines which dealt with minerals coming from mines in the Kivus which were under rebel control, and where it was known that human rights abuses were being committed.[115] RAID showed us a document from a German company which stated that they had secured the services of Alfred Knight to operate their laboratory facilities in Rwanda and Mozambique. This German company, Karl Heinz Albers, was also listed in the UN Panel Report.[116]

115. Alfred Knight did not accept our invitation to give evidence to the Committee. In a letter to us they wrote that they "often work at arm's length with no real knowledge of the origin of any particular sample being analysed."[117] Despite the company having being named, and subsequently deemed resolved by the UN Panel, RAID are concerned that the process did not result in any change in its activities and that Alfred Knight may still be providing assaying services for minerals from conflict-affected areas of the DRC.[118]

116. The UK Government has not sought to pursue investigations into the activities of Alfred Knight even though RAID told us they had sent information to the Crown Prosecution Service in 2004, to the Metropolitan Police, and to DTI's Companies Investigative Branch.[119] We have subsequently received written evidence from Thomas Eggenburg of the Krall Metal company in the DRC which alleges that Alfred Knight is involved in activities which contribute to the fuelling of war in the DRC.[120] Mr Eggenburg states that Alfred Knight plays a key role in the rare metal business in the DRC and that their assaying services are key in determining the purchase price of minerals such as coltan.[121] In addition, he maintains that if Alfred Knight had refused to provide its assaying services to coltan from the DRC the coltan mining business in the DRC would have collapsed. Subsequent to our evidence session we also received written evidence from Alfred Knight which seeks to explain their role in the DRC and states that they have not been in violation of OECD guidelines.[122] We are not in a position to verify the claims of either of these companies. However they do raise concerns about the UN process of putting companies into the 'resolved' category, and about how vigorously the UK seeks to ensure that OECD guidelines are adhered to by British companies operating in conflict zones. We are surprised and disappointed that the DTI did not contact Afrimex about their activities or investigate the activities of Alfred Knight in relation to the DRC. We believe the DTI could do more to promote the EITI and to resolve issues surrounding conflict resources.

117. There is a serious deficiency in the manner in which the Government approaches the actions of UK companies abroad, and in particular in CPCA countries. The Government does not send out a strong message to UK companies about the significance it attaches to OECD Guidelines. Given the number of UK companies originally listed by the UN and, given the human rights abuses which we know accompanied the war, and continue to be perpetrated, the Government response should have been more thorough. The Government needs to demonstrate that it takes the OECD guidelines seriously, in practice as well as in theory, by drawing up practical measures to ensure their implementation.

118. The OECD has now produced a Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones[123] in order to raise awareness of the risks of operating in weak governance zones and to offer companies some guidelines. This OECD initiative was given backing by the G8 in 2005 in the Gleneagles Summit Communiqué. The OECD Council recommends "the widest possible dissemination of the Risk Awareness Tool and its active use."[124]

119. Tools are of little use if they do not change behaviour. If Afrimex has not been made aware of OECD guidelines by the DTI, and appears to have had no interest in making themselves aware of them, there may be other British companies operating in zones of weak governance who are also unaware of OECD guidelines. These may not be the large household-name companies who cannot risk bad publicity. Such companies often will not operate in CPCA states. But it cannot be assumed that improved conduct will trickle down from socially conscious companies to the poor performers.[125] The Government has a responsibility to make UK Companies aware of the OECD guidelines and to offer them appropriate advice. There is a pressing need for the UK Government to consider ways to ensure that the approach of the DTI is not at odds with other aspects of Government policy in CPCA states. Without such coherence the Government cannot hope to have the impact it seeks through DFID's new strategy of engagement in fragile states. We intend to take evidence from DTI ministers on these important issues.

Transforming war economies

120. The transition from war to peace and the brokering of a peace agreement is not usually characterised by a definite end to fighting, or to the economies of warfare. Instead there is often a long transition process in which economic strategies and political alignments must be adjusted to the new exigencies of peace, including addressing exclusion and deprivation. Reform of both the security and justice sectors is thus an important objective for peacebuilding interventions. The effectiveness of strategies designed to effect such reforms depends crucially on an understanding of the reasons for the conflict and the motivations of the actors who have kept the conflict going. If these are not addressed, it will be difficult to persuade people to put down their arms and buy into the peace process. Acknowledgement of the transitional nature of peace processes entails a need to address the wide range of incentives, justifications, and reasons which cause people to engage in, and perpetuate war. In short it demands an acknowledgement of both the grievance and greed dimensions of conflict. [126]

SECURITY SECTOR REFORM

121. Security Sector Reform is an important means of strengthening the state and of helping to counter exclusion and deprivation by enhancing people's access to security and justice.[127] In its evidence DFID says that effective peacebuilding encompasses a wide range of security, political, social and economic initiatives including security sector reform (SSR) and demobilisation, disarmament and reintegration (DDR).[128] DFID also states that it is committed to further increasing its assistance to justice and security sector reform, and is currently leading a process within the OECD's Development Assistance Committee to develop international guidance on how to implement programmes in the security and justice sector.[129]

122. We visited the prison in Bukavu on our visit to eastern DRC. The living conditions in the prison were unsatisfactory — there was evidence that the governor was not spending his budget on food for the prisoners: instead they were reliant on family and friends to bring them meals or food supplies. There was also evidence of torture. The administration of the prison was highly unsatisfactory — the prison records had been lost in a fire and were slowly being recovered; prisoners were being held on remand for long periods and only being made aware of when their case was due to be heard after payment of a fee. We were struck by the vulnerability of prisoners, even those who should be locked up, in conflict situations. We think that the UN Peacekeeping Force in the DRC should be providing some oversight of prison conditions as part of its mandate to "facilitate humanitarian assistance and human rights monitoring, with particular attention to vulnerable groups".[130] It should also consider putting in place effective human rights monitors for prisons.

123. On our visit to the DRC we were told about the slow pace at which the security sector reform was proceeding. An International Crisis Group report published earlier in the year had identified security sector reform in the DRC as a neglected area of donor concern.[131] The report pointed out that while generous amounts of funding had been found for demobilisation of ex-combatants, only a small fraction has gone toward improving the status and management of the armed forces and the police.[132]

124. The Transitional Government in the DRC was seeking to create a unified army out of previously distinct brigades with independent chains of command. Of a total of eighteen brigades, only six had so far been reintegrated, which involved only 45 days' training. Six more had been re-trained but could not be deployed because there was no funding or transport to move them to where they were to be stationed. There were also problems with soldiers' salaries, uniforms and housing. Salaries, themselves very low, were often paid late, some brigades did not have full uniforms and so continued to wear the uniforms from their old brigades. Very little accommodation was provided for the brigade stationed in Bukavu. The incentives to remain a solider in the newly-integrated army were few. In contrast the incentives to prey on the local population were many. This is in part because of a policy of 'brassage' under which the newly integrated brigades had deliberately been mixed up (ethnically and tribally) and moved away from their home villages. The aim was to move soldiers away from ties which might compromise the impartiality of the army, but the consequence was that the soldiers feel no compulsion to defend or protect the local populations.

125. Many armed groups continue to operate in the DRC. The national army, the FARDC, is supposed to work alongside the UN force, MONUC, against such groups. We were told that often MONUC had simply displaced these armed groups and caused greater instability. There was an increasing recognition that such joint operations were not working. The ICG report expressed some concern that the Transitional Government in the DRC was not fully behind security sector reform because some of the leaders wanted to maintain their armed factions.

126. There was some feeling among the donor community in the DRC that the EU, rather than MONUC, should lead efforts in security sector reform. The EU had begun a valuable Chain of Payments project to help ensure that soldiers received their salaries. We were impressed by the detailed knowledge and expertise of EUSEC representatives in Kinshasa. EU work on the Chain of Payments is an important step in the right direction, but, given the extent of insecurity in the DRC, it is a drop in the ocean. If security sector reform is to be successful in the DRC, a much larger sum of money will need to be found. The newly-elected Government of the DRC will have primary responsibility for this, but it cannot achieve this without outside assistance. Security is the basic precondition for development to take place. In our view, the UK Government needs to press the EU and its member states to make security sector reform a priority. The newly-elected government in the DRC will also need to be encouraged to make this a priority area.

DISARMAMENT, DEMOBILISATION AND REINTEGRATION

127. The integrated nature of security and development means that material improvements are a necessary component of both post-war reconstruction and peacebuilding. Combatants and communities affected by the violence must see economic improvements which provide tangible evidence of a peace dividend. In particular, the presence of large numbers of demobilized combatants poses a security risk which can derail reconstruction. Former combatants must be shown that peace is economically advantageous in order to stave off 'spoiler' violence or organized banditry. Demobilization, disarmament, and reintegration (DDR) programmes are key to this process.[133]

128. The record of donor commitment to DDR programmes across different countries is mixed. For example in the DRC the pay-out for soldiers who disarm is quite high — US$410 — while soldiers who remain in the army are only paid US$10 per month.[134] In Uganda, in contrast, we were told that returning LRA soldiers receive very little from the Government or donors and that this was a disincentive for soldiers, who may themselves have been abducted, to come out of the bush. Retraining and re-integration programmes are now under active consideration. The relatively large sum of money received by ex-soldiers in the DRC provided a perverse incentive for them to take the payment and use the money to purchase another weapon with which they could rejoin a militia group. While the content of DDR programmes will vary in different contexts, the underlying principle must be to ensure that there are sufficient incentives and opportunities for ex-soldiers to disarm permanently and pursue civilian employment. This is a process which should not end with the payment for disarming, but should be linked to longer-term employment opportunities.

129. Our experience in Sierra Leone presents a good example of how this reintegration aspect of DDR is often neglected by donors. Apart from a one-off payment in cash or kind, there is not much emphasis on long-term projects to create employment for those who might otherwise pick up or return to arms. In Sierra Leone we saw first hand the large number of unemployed young men with few job prospects. Much of what we heard during our visit convinced us that one of the most significant issues facing Sierra Leone, one with the potential to contribute to future conflict, is youth unemployment. We heard that donors had invested in skills-building programmes for young people (carpentry, brick-laying etc.) without giving sufficient thought to the availability of jobs for those who have undertaken such training. It seems clear that donors in Sierra Leone now need to give priority to employment-generation initiatives, including agricultural schemes, to provide an incentive for rural-urban migrants to return to rural areas. This will mean simultaneously tackling some of the local governance grievances that have led to discontent in rural areas. At present a substantial proportion of unemployed young men are tempted to try their luck in the diamond mines, rather than invest their energies in gaining more secure, longer-term employment. It may not be appropriate for DFID to engage in this area directly, but as the largest donor in Sierra Leone, the Department ought to provide a lead for other agencies by highlighting the issue and encouraging others to increase their focus on the issue.


71   Ev 204 (Peace Direct) Back

72   Professor Collier uses statistical analysis of the causes of conflict to argue that recent conflicts have been driven largely by greed rather than grievance. However because greed and grievance are not straightforwardly quantifiable factors Collier applies measurable proxies for each. The choice of proxies raises some questions - a heavy reliance on the export of primary commodities, used as a proxy for greed, could also be understood as an indicator of lack of development, and hence of the grievance which this often produces. Back

73   Q 107 (Prof Collier, University of Oxford)  Back

74   Ev 146 (Prof Picciotto, Kings College, London) Back

75   Q 113 (Prof Collier, University of Oxford) Back

76   The Special Court was set up jointly by the UN and the Government of Sierra Leone at the request of the latter to try those with greatest responsibility for war crimes and crimes against humanity committed since 1996 during the Sierra Leone civil war. There are eleven persons indicted by the Special Court, www.specialcourt.org.  Back

77   Ev 122 (DFID) Back

78   David Keen, Conflict and Collusion in Sierra Leone, Oxford: James Curry, 2005. Back

79   Ev 170 (Christian Aid) Back

80   For more discussion of traditional justice in Uganda see, Tim Allen, Trial Justice: the ICC and the LRA, London: Zed Books 2006. Back

81   Ev 190 (Northern Uganda Advocacy Partnership for Peace)  Back

82   Paolo de Renzio, The primacy of domestic politics and the dilemmas of aid: what can donors do in Ethiopia and Uganda? www.odi.org.uk February 2006.  Back

83   Q 127 (Prof Collier, University of Oxford) Back

84   Ev 181 (International Alert) Back

85   Roland Paris, At wars end: building peace after civil conflict, Cambridge University Press ,2004. Back

86   Toward more effective Peacebuilding: a conversation with Roland Paris, Development in Practice, vol 15, no 6, November 2005. Back

87   International Development Committee, DFID Departmental Report 2006, Unprinted oral evidence Q 27 (Ms Shafik) HC-1491-i Back

88   Q 213 (Dr Cooper, University of Bradford) Back

89   Disarmament, Demobilization and Reintegration Back

90   Q 213 (Dr Cooper, University of Bradford) Back

91   Ev 108 (DFID) Back

92   Ev 144 (IISD) Back

93   Q 102 (Prof Collier, University of Oxford) Back

94   Ev 144 (IISD) Back

95   Ev 110 (DFID) Back

96   See Global Witness, Making it Work: why the Kimberley process must do more to stop conflict diamonds, November 2005. Back

97   Ev 139 (Global Witness) Back

98   Commission for Africa, Our Common Interest, p 174.  Back

99   Ev 120 (DFID) Back

100   International Development Committee, Fourth Report of Session 2005-6, Private Sector Development HC 921 para 157 Back

101   International Development Committee ibid Back

102   UN, UN Expert Panel on the illegal exploitation of natural resources and other forms of wealth in the DRC, April 2001 report S/2001/357. p 41 Back

103   Discussion with UK National Contact Point.  Back

104   Final report of the UN expert panel on the illegal exploitation of natural resources and other forms of wealth in the DRC, October 2003. S/2003/1027 Back

105   Under OECD Guidelines, adhering countries are required to establish a National Contact Point (NCP) to handle inquiries and discuss with concerned parties all matters covered by the Guidelines. The role of the NCP is two-fold, to promote the Guidelines and also to contribute to the resolution of issues that arise relating to their implementation.  Back

106   UN, Third UN Panel Report on the illegal exploitation of natural resources and other forms of wealth from the DRC, October 2003, S/2003/1027, para 23. Back

107   See, for example, Christian Aid, Flagship or failure? Back

108   DTI, Review of the Functioning of OECD Guidelines for MNCs.  Back

109   DFID, Making governance work for the poor, p 36 Back

110   See Channel 4's news report, 'Tin Soldiers', broadcast 30 June 2005. Back

111   Ev 135, Letter from Mr Kotecha to the UN Expert Panel Back

112   Q 391-94, 426, 428 (Mr Kotecha, Afrimex) Back

113   Q 415 and 422-24 (Mr Kotecha, Afrimex) Back

114   Ev 135  Back

115   Q 365-367 (Ms Feeney, RAID)  Back

116   Q 367 (Ms Feeney, RAID), Ev 240 (AHK) Back

117   Letter from Alfred Knight, 22 June 2006, placed in library and Ev 240 (AHK) Back

118   Q 34-7 (Ms Feeney, RAID) Back

119   Q 3-49 (MS Feeney, RAID) Back

120   Ev 241 Supporting documents placed in library. Back

121   Ev 249 (Krall Métal, DRC) Back

122   Ev 230-241 (Alfred Knight)  Back

123   OECD, Risk Awareness Tool for MNEs in weak governance zones. OECD, 2006  Back

124   OECD, Risk Awareness Tool for MNEs in weak governance zones. OECD, 2006. Back

125   Ev 144 (IISD) Back

126   Pugh, Cooper and Goodhand for example propose a taxonomy of combat, shadow and coping economies to suggest various motives for, and dynamics in, waging war, profiteering and coping. See, War Economies in a regional context, Boulder: Lynne Rienner 2004. p. 8 Back

127   Ev 148 (Prof Picciotto, King's College, London) Back

128   Ev 110 (DFID) Back

129   Ev 112 (DFID) Back

130   Security Council Resolution 1291 of 24 February 2000 on the United Nations Organization Mission in the DRCwww.un.org. Back

131   International Crisis Group, Security Sector Reform in the Congo, 13 February 2006 Back

132   International Crisis Group, ibid.  Back

133   Ev 157 (Sultan Barakat, University of York) Back

134   International Crisis Group, Security sector reform in the Congo. We have been told that the soldiers' salary is now US$20. Back


 
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