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2016
Globalization & Conflict
THE IMPORTANCEOF STRONG GOVERNANCE, ENFORCEMENT,
AND PUBLICAWARENESS
ROBERT-IAN GREENE
DREXE...
i
Table of Contents
Introduction.............................................................................................
1
Introduction
There are arguablyonlytwobranchesof economicsthatmay findtheirrootsdrudgedwithinthe
realmof resource reallo...
2
saidto challenge one anotheroveragivenresource.The player whowinsthe game claims the entirety
of the resource,leavingthe...
3
readerto once againconsiderthe aforementionedResource ConflictModel,where thereare seemingly
onlytwoviable optionsforthe...
4
conflict to be interpreted bymeansof anyactiondirectlycausedbyone partyto anotherto slow,or
impede,the economicdevelopme...
5
The majorityof the Angolanpopulationhaslivedinmiseryandterrorwhile bothgovernment
and rebel UNITA forces leadershave dev...
6
day. It is inarguablythe lackof propergovernmentandtheirgovernance thatleadstothese
displacementevents –and byextension,...
7
inessence,disappears.Publichealthinthisparticular interpretation,of course, referstothe availability
of food,water,andba...
8
no understandingof this disorder.Withoutpropercare and treatment,those individuals affected may,
insome circumstances, b...
9
Trade of conflict diamondsamounttoan aggregatedbilliondollarrevenuestreamforsome
corporationswithinthe Fine Jewelryindus...
10
the governmentof SierraLeone hadvirtuallybeendefeated,announcing to“foreigninvestorstoprovide
theirownsecurityforbothth...
11
The elementthatneedstobe broughtto the forefrontof discussion isthe monopolistic
allowance of De Beersdiamondindustrysh...
12
well asitseconomicgrowthinthe future. As maybe deducedthusfar,“…fromcivil wars,to
distributional conflict,tothe private ...
13
Thisanalysisand acknowledgmentleadstothe conclusionthatKenya’snatural resource base isrunning
dry. The takeawaypointist...
14
available forlong-termproductionandconsumerism.“We see adownwardspiral of economic
opportunities,”saysLucyEmerton,envir...
15
infrastructure (ibid).Thismayleadtoa plethoraof directandindirectcostsinand of itself,all of which
may have beenavoided...
16
The How, What, and Why of NGOs
As I hadbrieflymentionedearlier,anorganizationclaimingtobe anNGO is,ineffect,calling
its...
17
However,itisimportanttonote that such criteriawill inevitablydifferona per-countrybasis(Wango)2
.
Alternatively,the sec...
18
underthe fourthcriterion,whichstatesthat members of the .NGOcommunityshouldnotbe political
partiesor representativearms...
19
governmentbutalsocorporate wrongdoings.A studyconductedbyPricewaterhouseCoopershad
concludedthat“…fraudis on the rise a...
20
(Lehman).These goalssetforthbythe organizations,particularlyreferencingNGOs, cannotbe carried
out bylearningethical rul...
21
industriesandnationsthatallowforthe mismanagementof extractingprinciples, whichoftenresult in
irreversible andcatastrop...
22
Appendix
Figure 1
23
Figure 2
Figure 3
24
Figure 4
25
Bibliography
Civil Net Television. "Good Governance and Sustainable Development." YouTube. Civil Net
Television, 13 Oct...
26
Osano, Philip M. Estimating Land Prices and Opportunity Costs of Conservation in a Megadiversity
Country. Nairobi, Keny...
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Globalization & Conflict | The Importance of Strong Governance, Enforcement, and Public Awareness

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The following research paper addresses the grander impacts that a developing economy, and thereby society, has on the greater global marketplace. The central theme of this research paper pivots around the importance of a developing economy to successfully embed three elements into its cultural and political law: Government and Governance, proper land enforcement, and public awareness through the aid of Non-Governmental Organizations.

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Globalization & Conflict | The Importance of Strong Governance, Enforcement, and Public Awareness

  1. 1. 2016 Globalization & Conflict THE IMPORTANCEOF STRONG GOVERNANCE, ENFORCEMENT, AND PUBLICAWARENESS ROBERT-IAN GREENE DREXEL UNIVERSITY ECONOMICS 322 | SEMINAR PROFESSOR SYROPOULOS
  2. 2. i Table of Contents Introduction.................................................................................................................................... 1 Government Policies...................................................................................................................... 2 Direct & Indirect Costs of Poor Governance......................................................................................3 The Conflict Trap.............................................................................................................................6 Corruption & External Influences.....................................................................................................8 Property Rights & Enforcement................................................................................................... 11 Environmental Degradation...........................................................................................................12 Public Awareness ......................................................................................................................... 15 The How, What, and Why of NGOs ................................................................................................16 Models.........................................................................................................................................18 Accountability...............................................................................................................................19 Concluding Thoughts.................................................................................................................... 20 Appendix....................................................................................................................................... 22 Bibliography.................................................................................................................................. 25
  3. 3. 1 Introduction There are arguablyonlytwobranchesof economicsthatmay findtheirrootsdrudgedwithinthe realmof resource reallocationin timesof contestation:Peace andConflictEconomics.Peace Economics isa highlyspecializeddivisionof economicsthatholdsitscentral theme setforthwithinthe societal organizationof persons.Inparticular,itishow those personsdesigntheirrespective political,economic, and cultural ideals tofurthertheirsocietal andeconomicwell-being.Similarinstructure,butnotideals, isthe alternative combative branchof ConflictEconomics.Conflict Economicsisanequallydedicated divisionof economics,yet,ratherthanallocatingsuchresourcestowardsthe meansof political, economic,andcultural development –isinstead a reallocationof resourcesemploying meansof (often, but notalways) violentconflict. The ongoingtheme of thisresearch paperwill build uponthe acceptedconceptsof Conflict Economics.Advancing uponthe mere definition,ConflictEconomicsdiffersquitesubstantiallythanthe traditionallyacceptedmeansandgoalsof mostintroductoryandintermediate economic teachings.For instance,traditional economicsbuildsnecessaryassumptionsoff of anon-violentsociety,inwhich propertyrightsandenforcementare equallyassumedtohave beenembeddedwithinsuchasociety.It isunfortunatelyquitethe alternative stance while workingonthe advancementof ConflictEconomics and theory. ConflictEconomicsissaidtobe setwithinamodel of contestbetweentwoplayersatitsmost fundamental analysis.Itintroducesthe ideathattwoplayersneeddecidebetweenthe productionof resourcesandthe productionof wartime weaponry,oftenconstruedtobe toolsof seizingthe resources producedbythe alternative player. Forthe purpose of thispaper,referencesare made onseveral occasionsto whatis referredtoasthe Resource ConflictModel.Itiswiththismodel thattwopartiesare
  4. 4. 2 saidto challenge one anotheroveragivenresource.The player whowinsthe game claims the entirety of the resource,leavingthe alternative playerwithnothing. It isinarguable inthe mere evaluation andassessmentthatmanydevelopingnations, unfortunately,face thisveryResource ConflictModel in aggressive terms. Ithasbecome myburdento clearlyillustratehow numerous modernanddevelopingeconomicnationsare seeminglystuckina downwardspiralingpitof chaos.Iplanto do so through evaluatingthe importance of three main variables:StrongGovernmentPolicies,PropertyRightsandEnforcement,andthe significantrolesof Non-Governmental Organizations.Moreover, Iwill promote the ideathatthe degradationof such variablesmay subsequentlyleadtoapoor economicoutcome ona global scale. GovernmentPolicies Before anyadvancementismade inthe discussionof the importance of governmentpolicy,itis of vastimportance tohave a stronggrasp of the differencesbetweengovernmentandgovernance. There are three particularsectorsinproperlymanagingcivil society, where thereisagreat importance of eachsectorto each other: government,private,andcivil society(Mostashari).“We have evolved froma governmentaswe knowit,”saysProfessorFrank VramZerunyan,Professorof Practice of Governance andDirectorof Executive EducationatUniversityof SouthernCaliforniaPrice School of PublicPolicy,“we nolongertalkaboutgovernment,we talkaboutgovernance…[whichis] the interactionof the three sectorstoadvance any society,”(Civil NetTelevision). In the considerationof nationstatesinwhichthere is neitherastronggovernment nortolerable governance,economicdevelopment becomesstagnantorevenregressiveinnature. Thisispreciselythe case forwar-tornAngola,where there isaconstantstruggle to maintainpowerbetweenthe governmentandrebelliongroups. Asmaybe deduced,intimesof conflictthere are directimpacts associatedwithtrade regimes,andsubsequently,economicstability. Itmaybe of some aidfor the
  5. 5. 3 readerto once againconsiderthe aforementionedResource ConflictModel,where thereare seemingly onlytwoviable optionsforthe playerstoengage within:the production of economic-progressing resourcesorthe productionof economic-regressingwarfare weaponry. The ensuingdiscussionisthe introductionof twoeconomictheories:one identifiedas the role of governmentandgovernance and theirrespective impactontrade regimes, andtwobeingatheoryknownas The ConflictTrap. Direct & IndirectCosts of Poor Governance As hadbeenbrieflydiscussed,there isakeendifference betweengovernmentandgovernance insensesotherthanthat of the processof governing. Governmentoftenreferstothe governingbody itself,while governance oftenreferstothe act of governing the three varioussectorsof private, government,andcivil society.Initsmostelementary form, itisthe membersof the governmentthatare engagedingovernance. However,aswill be exemplifiedthroughpresentdayAngola,thereisastrong relationbetween the strengthof agovernmentandtheirrespectivegovernancetothe societal well- beingof theirnation,which accordingly abuses the international market. An article presentedatthe “Guns andButter: The EconomicCausesand Consequencesof Conflict”, Globalization and Insecurity:Reviewing Some BasicIssues,bringsfortha correlationbetween conflictandeconomicstabilityintermsof trade andresources.There are of course resourcesthatare tradedon an international level thatembodythe foundationformanyother finished trade goods – for example,oil,diamonds,land,waterresources –are all “… subjectto contestation, albeitdomesticallyby rival groupsor internationallybydifferentcountries,”(Garfinkel). The effectsof contestationmaybe evaluatedinseveral interpretations,all interconnectedwith globalizationinone functionoranother;however,Iwouldaskthe readertodraw hisor her attentionto the direct andindirect costs of conflict.Moreover,the termconflictmaybe consideredambiguousin that ithas many characterizations.Forthe purpose of discussionandargument,Ilargelyintendfor
  6. 6. 4 conflict to be interpreted bymeansof anyactiondirectlycausedbyone partyto anotherto slow,or impede,the economicdevelopmentand societal well-beingof another. In timesof conflict,itiswidelyacceptedthat substantial directcostsare moldedin suchforms as armingindividualswithdefensive oroffensiveweaponry,aswell as anycostassociateddirectlywith the destructionof developments.Whatstemsfromthese direct costsare,of course,the indirect consequencesandcosts.Suchmightinclude regressed ordiscontinuationof production,individual consumption,and investments.Yet,tounderstandthe desirefordestructionandeconomicimpedance of one partyto another,one mustunderstandthe underlyingreason of conflict. Resource Wars,a termusedto distinguishthe conflictassociated withageographical location and ownership,actsasthe underlyingfoundationforthe aforementionedconflict.Paul Collier, Director of the DevelopmentResearchGroupat the WorldBank, stated “[In] contrastto the cold warera, today’s conflictsare lessaboutideologiesandseizingthe reinsof state thanaboutthe struggle tocontrol or plunderresources –capturingsites richinminerals,timber,andothervaluable commoditiesor controllingpointsthroughwhichtheypassonthe wayto markets,”(Renner). What may be visuallyrepresented inTable1 withinthe appendixsectionof thisreport,isthe estimatedrevenuesfromconflictresourcesamongstelevennations;amongwhichliesAngola.Angolais rich intwo natural resourcesthatare arguablynon-renewable withcurrenttechnological standards:oil and diamonds. The extractionof these tworesources,captured withinatime lapse between1992 and 2001, amountsto a staggering$4-4.2 billion inrevenue.“Endowedwithamplediamondandoil deposits,”saysRenner,“Angolashouldnotbe onthe bottomrungsof the world’ssocial ladder… instead of a blessing,Angola’snatural resource wealth hasturnedoutbe a curse,” (ibid).
  7. 7. 5 The majorityof the Angolanpopulationhaslivedinmiseryandterrorwhile bothgovernment and rebel UNITA forces leadershave devotedmostof the revenuefromsellingAngola’sresourcesto buyingdefensiveandoffensive weaponry,aswell as liningtheirownpockets;thusillustratingsome of the directcosts of such resource wars. Aside fromthe directcostsof resource extractionthroughillegal and oppressivemeasures,there are seeminglycountlessindirecteffects.Amongsuchindirectcosts include populationdisplacement, whichiswhere anindividual (orgroupof persons) has(or have) been forcedto leave hisorher habitual place of residence.This forced migration,sotospeak,isby and large instigated throughthe struggle of power, whichleads torebel groups assumingrolesof political organizationsandleaders. Populationdisplacementinwar-torncountriesoftenoccursas a resultof several independent variables:fear,force,andnecessity. Itiswidelyacceptedthatthe eventof acivil war doesnotsolely affectthose participantsengaginginfighting;rather,itdisruptsthe entire societyaroundit.“Those who are mostaffectedbycivil war,”says Renner,“are those whohave no say whetherornotthere should be a war,” (ibid).Thisidentificationlargelyshadowsthe variablesbrieflymentionedabove.Itisthrough fearof havingone’sbasichumanrightsviolatedthatone maybe displaced;itisthroughforce thatone isrequiredtoabandonhisor her village andfamilyandgiventhe commandtoshoot;lastly,itisthrough necessitythatone leaveseverythingandeveryone behindinthe off-chance of survivingjustanother Ample resource endowments can have negative economic consequences, as countries grow overly dependent on these resources, allocate inadequate capital and labor to other sectors—agriculture, manufacturing, and services—and underinvest in critical social areas such as education and health. The result is a failure to diversify the economy and to stimulate innovation and the development of human skills Anatomy of Resource Wars, Michael Renner
  8. 8. 6 day. It is inarguablythe lackof propergovernmentandtheirgovernance thatleadstothese displacementevents –and byextension, whatultimatelyleadstocivil war. There are generallythree(3) recognized ideasthatsociety considers beingthe rootcausesof a civil war.“Those on the political righttendtoassume that it isdue to long-standingethnicandreligious hatreds…political centertendtoassume thatit isdue to a lackof democracy…and those onthe political lefttendtoassume that itis due to economicinequalities,”(Collier).However,whenlookingatany available evidence,notone of these three aforementionedexplanations mayillustrateanystrongcause and effectrelation,which iswhatleadstothe observationthatmoderncivil warisheavilyconcentrated inthe poorestof countries.There existsacyclical illnessthatwaris directlycorrelatedandcausal to increasingpovertyamongstanationasa whole; butmoreover,itisthatverypovertythatincreases the likelihoodof acivil war,ergoproducingwhatmaybe referredtoas a ConflictTrap. The Conflict Trap As mayhave beendeducedthusfar,civil warisincredibly destructiveforanyeconomy.Somuch so that civil warisoftenviewedaseconomicdevelopmentinreverse(Collier).Similartothe Resource ConflictModel presentedatthe beginningof thisresearchpaper,the conflicttrapisfoundeduponthe ideasthatthere isa ceasedproductionin beneficial industries –suchas education,agricultural,etc. – and an increase inthe productionof war driven tools– guns,ammo,soldiers, anddestruction for instance. Numerically speaking,duringtimesof conflictindevelopingcountries, thiscausesadouble loss:once fromthe lossof what the revenue andresourceshadbeen previously contributingtowards, and twoto the lossfrom the damage that isbeinginflictedfromthe destructiveproduction of weaponry. Duringa war,major targetsformilitaryoperationsinclude significantstructuressuchas telecommunications, roadsandbridges,airports,andports.Asa by-productof doingso,publichealth,
  9. 9. 7 inessence,disappears.Publichealthinthisparticular interpretation,of course, referstothe availability of food,water,andbasicmedications. Subsequently,mortalityratesbegintospike.These incidences affectthose whoare not directlyinvolved inthe way – the innocentbystandersandciviliansthathad beenmentionedearlier. In2005, the infantmortalityrate had beenestimatedat187.49 per1,000 births,makingitthe highestinthe world(Mobekk). In termsof directinvestment,be itdomesticorforeign,individualsnolongerfinditbeneficial to participate because of the fearof displacement,destruction,andoverall economicstructural instability. What ultimatelyoccursfromthislackof investment,isadecrease in GDPgrowth.In slightrelationto thiselement,isthe ideaof a money vacuum.A moneyvacuum impliesthatthere isanexternal,or foreign,investmentopportunity thatispromisingafarsaferinvestment forthose whoare still willingto take the risk; yet,thisislargely done abroad furtherslowingthe economicactivityof the nation experiencingcivil warconflict.GraphicallyrepresentedasFigure 2underthe appendix sectionof this paper,isthe GDP percapita before andaftera civil warfor six distinctcountries.“Duringpeacetime, the average developingcountrywithlessthanUS$3,000 per capitagross domesticproductin1995, spends about2.8% of GDP on the military.Duringthe civil war,thisincreasesto5%,”(ibid).Thisincrease in militaryexpenditure will likelybe withdrawnfromanybudgetexpectedtofulfill publichealthneeds, whichmay alsorelate topublicinfrastructure,suchasroads,publicschoolsandhospitals,andsoforth. While onthe topicof long-termeffects,there are manyvariablesthatneedbe consideredas directand indirectcostsof civil war.For instance,landminesorothermilitarygrade defensive measures, are still embeddedwithinthe natural terrainwhichcausesunimaginable impedance toefficient activities.Moreover,the lastingeffectsof psychological damage done tothose thathadbeendirectly involvedincivilwaractivitiesofteninclude conditions suchasPostTraumatic StressDisorder,orPTSD. Thiswill inevitablycause notonlyadisturbance tothe local communitythatmayverywell have little to
  10. 10. 8 no understandingof this disorder.Withoutpropercare and treatment,those individuals affected may, insome circumstances, become aliabilitytothose around them. It isimportant,however,tokeepinmindthatthe conflicttrapis “… a tendency,notaniron law1 .Middle-income countrieshave alowerprobabilityof fallingintoit.A previousconflictseemsto increase the riskformiddle-incomecountriesbythe same factoras for low-incomecountries,”butas middle-income countries have alowergeneral risk,they systematically have betterchancesof maintainingpeace beyondthe firstpost-conflicttime era(ibid). Moreover,asmaybe inferredfrom middle-income countries,thereisanofferedperiodof political stability,whichalludestoafinding discoveringthatinten-yearincrements,there isasignificantjumpanddropincivil warprobability.This conceptmay be more clearlyfollowedthroughthe aidof a graphical representationlabeledFigure3 offeredunderthe appendix. Thissubsequentlyleadstothe question, whatoutletsarethere? There are in fact several optionsdiscussedthroughoutthe literature reviewingprocess:intervention,targetandeliminate any rebellionfunding,and lastly,transparency. Albeit,linkingthese aforementionedelementsall togetheris the divisionof corruption. Corruption & External Influences It wouldnotbe wrong forindividualstobe discontentwiththe current rolesunderwhich corporationstake to ensure the resourcestheypurchase,andinsome casesharvest,are done sounder properqualitycontrols.Itmayevenbe arguedthat several corporations,knowinglyor not,playa significantrole inperpetuating the existence of illegal resource extraction and, throughextension, corruptedgovernance. 1 An iron law is a lawor principlethatis meant to be both indisputableand unavoidable.
  11. 11. 9 Trade of conflict diamondsamounttoan aggregatedbilliondollarrevenuestreamforsome corporationswithinthe Fine Jewelryindustry.These profitshadbeenreportedlyusedbywarlordsand rebel figurestobuyoffensiveanddefensive armsduringtimesof internal conflicts,suchasinAngola; and where one warmightend,eventemporarily, the unrulyexistence of conflictdiamondsstill persists today. For a clearerdepiction,considerFine JewelryindustryleaderDe Beersforinstance. De Beers currentlyholdsthe largestshare of diamondownershipanddistribution,amounting to two-thirdsof the world diamondsupply(Johnson). The reasonforthisnearmonopolyisrootedinthe company’shistory.De Beerswas“… one of the firstcompaniesinvolvedinthe miningfordiamondsin Africaimmediatelyfollowingtheirdiscovery,”saysJohnson,“…[De Beersfounder] Cecil Rhodeshad completedhismonopolywiththe formationof acartel,the LondonDiamondSyndicate,whowere the biggestdiamondmerchantsof the time.Hissyndicate allowedhimtoperfectlymatchsupplywith demand,”(ibid). Nonetheless,establishingnearmonopolisticcontrol overanindustrythatfailsto establisha growingdemandisarguablynothingtofretabout.It had notbeenuntil 1947 when the diamondmarket transferredfromanembellishmentof royalty –to a symbol of love: A diamond isforeverhad subsequentlychanged the marketanddemandforever. Directlyfollowingthiseventhadbeenthe surge indemandfor diamonds;ultimatelyleavingDe Beerstoexpanditsmeansof excavatingandcultivatinga greatersupply. The documenteddiamondhistoryof SierraLeone issaidtohave begun in1935 whenDe Beers legallytookcompletecontrol of the miningprospectsinSierraLeone for anextendedperiodof 99- years.Despite the assortmentof legal measures taken,illegalsmugglingof diamondsoutof SierraLeone had inevitablyoccurredandlargelyclusteredwithLebanesetraders(ibid).Ithadbeeninthe 1950s that
  12. 12. 10 the governmentof SierraLeone hadvirtuallybeendefeated,announcing to“foreigninvestorstoprovide theirownsecurityforboththeirpersonnel andmines,”(ibid). It had beenthroughsuchextensive illegal smuggling thatleadtothe depletionof manyfinancial resources andultimatelyto the governmentof SierraLeone lesseningthe total distribution of its influences andthusconcentratingitspresence intwoparticularregions:KonoandFreetown.Konois knowninformallyasa diamond districtwhileFreetownisequallyknownasthe exportcenter.The increasedpresenceof governmentfigureswithinthesetwodistrictshadfallaciouslycreatedanillegal diamondpipelinebetweenSierraLeone andLiberia. Ithadbeenaroundthese twokeyareasthatviolent conflictsflourished,especiallywhenrebelliongroupRevolutionaryUnitedFront(RUF) hadbecome aware that “…whoevercontrolsthe diamondminescontrolsSierraLeone,”(ibid). It has beenthe linearconsequenceof these eventsthathadledto suchcatastrophic unfolding of botheconomicand humanwrongdoings.Underthese influences,civilwarperpetratorshave committedunimaginablyheinouscrimesagainstformermaninsuch waysof rape,murder,and bodily mutilation.Indocumentedcases,ithasbeenestimatedthatthe civil strife rangingfrom1991 to 1999 had claimed well over75,000 lives,causinganadditional halfmilliontobecome refugees,andan astounding2.25 millionpersondisplacement(ibid). Notsoon enoughhasbeenthe acknowledgmentof firstworldcountriesof sucheventsandtheir efforttomitigate the dilemma.Stemmingfromthisprocesswasthe introductionof the Kimberly Process,underwhicha certificationsystemis emplacedtoassure adegree of monitoringadiamond’s originfromthe mine to the distributor.Moreover,the UnitedStateshastakenmeasurestoensure purityinoriginandminingprinciplesunderthe Clean Diamond Act,banninganydiamondsthatcome froman unknownorigin.While goodonpaper,the twoprocessesare farfrom resolvingthe conflict in reality.
  13. 13. 11 The elementthatneedstobe broughtto the forefrontof discussion isthe monopolistic allowance of De Beersdiamondindustryshare.Hadthe diamondindustrybeena trulycompetitive market,as De Beershad made a claimto on several occasions,conflictdiamondswouldhave agreat adverse effectonthe entiretyof the marketandwouldsubsequentlybe dealtwith.Moreover,in observinganyface-value legalcontractsthatDe Beershadbeena party of in diamondextraction,are – inmost instances,ineffectfromthe nineteenthcenturywithgovernmentsthatare largelyinexistent today. It isthisveryinstance that providedthe foundationfor misconstruction of landownershipand right.Withoutsuchrecognitionandenforcement,future chaos isinevitablyabound andbringsforththe vast importance of PropertyRightsandEnforcementprinciples. Property Rights & Enforcement Seeminglyinterconnected withresource dispute andeconomicconflict,isthe relationof justly enforcedpropertyrights. Inmanyvaryingcircumstances,itbecomesdifficultto abide bythese principles, oftenbudding aseriesof disputesoverrightstoa landone possess,especiallywithinnations whichthere is such political instability,seenineitherpolitical corruptionorlackof governance. Typically“…propertyrightseitherare notwell-definedorare costlyto enforce….Suchas those reflected inthe resourcesregularlyexpendedinlitigation….Rentandrevenue-seekingactivitiesstemmingfrom trade restrictions,”(Garfinkel). Many disputes relatedtolandownershipand itsadministration are founded inthe lackof enforcement.Thisisclearlyillustrated bythe actionsof the RussianParliament,where avote hasbeen made infavor of landlaw forurban areas has beenconducted,yetthishasseeminglybeeninexistentin termsof implementation.Onthe otherhand, the “…hopelessconflictof toomanycontradictorylaws, basedon differentlegal traditionshave notbeenresolved…”bymanyhistoricallyrichnationssuchas Chinaand India(ibid).Buddingfromthese ineffective principles isathreatto a nation’ssocial stabilityas
  14. 14. 12 well asitseconomicgrowthinthe future. As maybe deducedthusfar,“…fromcivil wars,to distributional conflict,tothe private appropriationof land,insecurityandconflictare associatedwith large costs,”be those costsdirector indirect,individualorsystematic(ibid). Priorto the discoveryof consequencesassociatedwithimproperlandownershipanditslinked impactson the economicstatusof a nation,itisimportantto brieflydiscussthe intended interpretationsandresultsof landownershipconfusion. Suchconfusionof landownershipinsecurity, and therebydirectandindirectcosts,mayoccur inperhaps twoall-encompassingcategories:domestic and interstate.Furthermore,Iwillaskthe readertoconsiderprimarilythe indirectcostsof resource extractionwhilstreadingthissection,of whichare presentedasanarray of environmentdegradation variables. Environmental Degradation Throughoutthe mid-1990s, the Kenyaneconomyhadexperiencedan impressivegrowthjustshy of 5%; particularlysince economicgrowthhadbeencalculatedas one-tenthof the 1995 growth justa fewyearsearlierin1992 (Osano).Itmay have beencommonpractice toconclude thatthe economic performance foretoldapositive pictureof the growthandprospectsof the country, yet – whenone looksmore closely –there are several elementsthatshouldraise concern. While economicallygrowing,environmental degradationandpollutionseemtohave been growingat a similarrate. “Forest area has declined, wetlands have decreased and wildlife numbers have fallen. Water and land shortages are widespread, other renewable and non-renewable natural resources are being rapidly depleted. We also see a growing use of toxic chemicals and discharge of waste and effluent into the soil, water and air.” – Osano
  15. 15. 13 Thisanalysisand acknowledgmentleadstothe conclusionthatKenya’snatural resource base isrunning dry. The takeawaypointisthatenvironmentaldegradationisnota topicto scoff at, evenforthe thickheadedapproachof it’ssomebody else’sproblem, asthere are grave economicconsequencesin future costsand growth. Remainingwiththe study of Kenya,inobservingthe natural resourcestheyhave available,it becomesclearerwhateconomicactivitymaybe linkedwiththe country.Firstandforemost,are an abundance of raw materialssuchas land,water,minerals,and timber.Whatisimportanttonote under thisdiscovery,isthatall of the country’sprimaryexcavatedmaterialsare prone toceasedproductionif contaminationorenvironmental degradationoccurs:landbecomesclustered, faulty,anddead;water becomestoxic,killinganysourcesof life withinsuchwaterwhile also effectingthose personsand animalsthatconsume it;mineralsare oftendirectlyassociatedwithmining,whichdisplacesindividuals as well asoften voidinganyfuture agricultural activitiesonthatlandif ithad beenfeasible initially; lastly,lumberbeingarenewable resource isstill anresource thattakesyearsfor maturityandby extension,anabundance of othernatural resources suchaswater andnutrientdense soil,to sustain healthy growth. OutlinedinFigure 4inthe appendix,is thatthe total economicworthof a givenresource isfar greaterthan the mere directoutputsthe resource generatesforproductionandconsumption. For instance,many(if notall) environmental resourcesprovidetosome extentanecologicalgoodand service foranother;thismaybe done throughmeansof floodcontrol,carbonappropriation,and/or climate control.Depletingsuchnatural resourcesthroughmeansof environmental degradationwill inevitablyeliminate the directandindirectuse andvaluesof suchresources. As maybe alludedto,the declineinthe availabilityof resources, and,therefore, environmental quality,impactseconomicactivitiesthroughthe decline of the mere quantityof goodsandservices
  16. 16. 14 available forlong-termproductionandconsumerism.“We see adownwardspiral of economic opportunities,”saysLucyEmerton,environmentaleconomistrepresentative of AfricanWildlife Foundation,“…asthe environmentbecomesmore andmore degraded[there are] implicationsforboth economicefficiency…andequity,”(Emerton). Finally,to illustratethe directandindirectcostsof environmentaldegradation, one mustalso note that these followingelementsovertime seeminglybuilduponone another,consequently becomingincreasingly worseasnopreventative measuresare taken: 1. Direct economic costs in terms of production and consumption opportunities foregone 2. Direct economic costs in terms of preventative expenditure 3. Direct economic costs in terms of replacement cost, and 4. Indirect economic costs to other production and consumption activities Firstly,asnaturallyoccurringenvironmentalresourcesdecline inquantity,andtoa certaindegree qualitywhenconsideringthe rate atwhichuse exceedsnatural regeneration,the supplydrops significantly. This,inturn, hasa directeffectonthe abilitytoproduce,whichconsequentlyhasa decliningeffectonsupply. Secondly,asa resultof conditionone,adecline inecological servicesisapparent.One directcostof such an event,are the projectspartakentoprevent.Forexample,soil erosion: avariable thatwould likelynotneedtobe talliedhadproperlandmanagementbeenconsidered. Third,I wouldaskthe readerto considerdeforestationasaprime example:Deforestation“makesit necessarytoproduce an alternative,non-woodsourcesof fuel andconstructionmaterialsandatthe same time to replace some of the environmental functionof forests,”suchasdownstreamfloodcontrol
  17. 17. 15 infrastructure (ibid).Thismayleadtoa plethoraof directandindirectcostsinand of itself,all of which may have beenavoidedhadinitial cautionsbeentaken. Lastly, as environmental resourcesdecline,there are wide-spreadeffectsonvariousarraysof productionandconsumption,andwhile the very same activitiesdonotdependdirectlyonaparticular environmental resource.Forexample,bio-engineeredagriculturalseedproductsthatbenefithumans, yetharm vast numbersof birdsandsmall animalsdisruptthe eco-systemwhichmayinturndisrupta largerelementthatwe ashumansdependupon;ultimately,we are onlyprovidingourselveswitha disservice inthe long-run.Aswe are becomingincreasinglyself-destructive fortemporaryself-gain,a questionposesitself forthe masses:Whoistospeakout andtake a standfor those whowill notor cannot. Public Awareness Publicawarenessof arguablyanysocial oreconomicconflictisof extensive importance andis oftenthe preliminary stepinthe processof mitigation.Whereitmaybecome a predominantly known elementinthe domesticsense,oftenreachingawarenessof those directlyaffected,the spreadof acknowledgmentmustgobeyondsuch constrictedboarders.Toreachinternationalrecognitionand concern,ergoinitiatingasense of indirectaffection,isthe ultimate goal forconflictrecognition.The primaryproblem indoingsoisthe physical actionof speakingout andhavingitheard everywhere. It isthroughthe aidof Non-Governmental Organizations(NGOs) thatundeniablyfacilitatesthis processof mass-publication.Inthe followingsections,Iwill explainthe fundamentalbackgroundand essence of these NGOs,providesubstantiallygreaterdetail onthe importance of theirexistence,the formsto whichan NGO maytake,and lastlyillustratingthe accountabilityof these organizations.Itis throughthis discussion andunderstandingthatIhope to implementthe currentmeasuresof what processesare beingdone tomitigate these nationsexperiencingcivilconflict.
  18. 18. 16 The How, What, and Why of NGOs As I hadbrieflymentionedearlier,anorganizationclaimingtobe anNGO is,ineffect,calling itself aNon-GovernmentalOrganization inthe mostliteral sense.However,if one were toconsiderthe currentglobal market,there are plentyof organizationsthatare Non-Governmental Organizations,and such a statementwouldn’tbe incorrect;however,itisbecause of thisveryreason,andthe tax benefits associated withbeinglabeledasanNGO, there hasbeen manyconsequential in-depthinvestigations in the search forfraud.Currently ineffectare twoprimary categoriesof NGOs:NGO in the traditional sense,henceforthreferredtosimplyasNGO,andthe newer.NGOcampaign.It isimportantto note that a memberof one categorymay applyformembershiporrecognitionas/underthe other. However, there are variancesinthe criteriatowhichmandate whatcategoryyou maywant to be member/organizerof. There are of course many benefitslabelingoneself asanNGO.Most recognized,are tax exemptions,including“…the paymentof anyothertax or dutyleviedbythe government,” inadditionto any personwhomakesa validdonationtobe eligible tohave the identical amountdeductedfromtheir income tax payment.However,the criteriatolabel oneself atraditional NGOis,forthe mostpart, quite feasible;infact,there are only eleven (11) elementsthatone mustprovide documented proof of togain properdocumentationindicatingNGOstatus: 1. Proposedname andaddressof NGO 2. Name,addressandoccupationof each director and member 3. Resume orbrief biographyoneachdirectorand member 4. A clearmissionstatement 5. Aims, Objects, andPurposesof the Organization 6. OrganizationStructure 7. Bylaws& Policies 8. Type of programof activitiesintendedtocarry out 9. Projectedfinancialstatement 10. Full detailsof grantsandgrantors, and 11. Lettersof supportfrom establishedorganization that share similarinterestsandgoals
  19. 19. 17 However,itisimportanttonote that such criteriawill inevitablydifferona per-countrybasis(Wango)2 . Alternatively,the secondarystructure anNGOmaytake isthroughthe confinesof the .NGO campaign– aimedatlimitingandregressingthe ill-willedorganizationsclaimingtobe of NGOstatus, receivingdonationsandmaliciouslybenefitingoff of the kindnessof others.Assuch, the .NGOcampaign had made theircriteria,ergoeligibility,farmore rigorousandmandatedasmay be discoveredthrougha brief overviewof the followingsevencriteria. Firstly,the organizationmustbe fundamentallyfocused onactingonbehalf of publicinterest. Thisalludestothe organizationdirectlyorindirectlysupportingsuchsectorsaseducation,health, environment,and/orhumanrights.Itisthe memberbase of the NGO communitythat worksfor the goodof man,supportingandpreservinghumanandplanetrights. The secondcriterion isthat the organizationmustbe a non-profitfocusedentity.Whilemany traditional NGOsmayengage incommercial-basedactivitiesand/orproduce revenueinsome sense or anotherinsupportof theirmissionorgoal,membersof the .NGOuser-base donotrecognize profitsor retainanyearnings. Third,a memberof the .NGO communitymusthave strictlylimitedgovernmentinfluence. Traditionally,manyNGOsoutside of the .NGOdomainhad an interestininteractingwithgovernments for fundingpurposes.Ashadbeen discussed, however,interactionandacceptance of anyother governmentorcorporate entityoften leadtothatgovernmentorcorporate entityhavingsome influenceoverthe policiesof the organization.Thismaybe veryharmful tothe originallyemplaced policiesandprocedures thatthe .NGOhadinitiallyimplemented.Thiscriterionislargelyreiterated 2 As there is a vastlevel of detail,advancingpastthe scopeof this project, if the reader care to seek additional information on establishingan NGO, I strongly encourage downloadingthe followinglink: http://www.wango.org/NGONews/July08/HowToStartAnNGO.pdf
  20. 20. 18 underthe fourthcriterion,whichstatesthat members of the .NGOcommunityshouldnotbe political partiesor representativearmsof any government;furtheringthe ideal that.NGOworkisstrictly voluntary. Fifthly,amemberorganizationof the .NGOcampaignmustbe able to fullyandclearlyillustrate that theyare infact continuallypursuingtheirstatedmissionsonaregularbasis.Moreover,the lasttwo elements,criteriasix andseven,statesthat the .NGOmustbe bothstructuredandlawful.Thisindicates that membersof the .NGOcampaignmustoperate and function underthe statedbylaws,code(s) of conduct andgovernance structure.Thisseamlesslyflowsintothe ideathatthe organizationsmustbe lawful whileactingwithintegrity. Witha thoroughunderstanding of the structural makeupof NGOs,we maynow begintodiscuss the nature of a textbook NGO’swork,discoveringwhatactivitiestheypartake in, how theypartake in them,whytheydowhat theydo,and whatbenefitsoccurbecause of theirpresence. Models In reality,the role of anNGO may be one or many.That is to say,the organizationmay aimto divvyitsresources withoutbiasorprejudice,ormayrather concentrate itsresources ona single sector and activity.Ithas become quite evidentthroughoutanextensive literaturereview thatNGOsare generally categorical as pertheirprimaryresource expenditures.WhatIhave foundwithconsideration of NGOsunderAmericangovernance,is thattheyoftenembodyone of three characteristics,ormodels: Whistle-blowers,Lawmakers,andServiceSupplier. Whistle-blowerlabeledNGOsare indicativeof the largerencompassingbodydevotedtoAnti- Corruption.Thissectorwithinthe greaterNGO environmenthashada majordevelopmentinthe last decade as perthe protectionsforwhistleblowersworldwide fromalegal liabilityperspective. The primaryincentive behindWhistle-BlowerNGOsisto sanctionor advance the transparencyof not only
  21. 21. 19 governmentbutalsocorporate wrongdoings.A studyconductedbyPricewaterhouseCoopershad concludedthat“…fraudis on the rise and thatstrong protectionsforwhistleblowersare the keytoany anti-corruptionmeasures…the developmentof these principlesforwhistleblowerlegislationisthe turningpointinthe global fightagainstfraudandcorruptionbecause itputsteethand substance into international anti-corruptionlaws,”(PwC). LawmakerorientatedNGOsare predominantly engagedwithanarrayof legal-orientated activities withparticularemphasisonthe passingof billspertainingtocivicparticipation,improvement inthe qualityof governance,overcoming the democraticdeficitandactivitiesof the like.These are unfathomably importantasthese organizationsare,inat leastinthe bestinterestof doingso,providing a voice on behalf of those wholackthe necessarymeanstobe heard.Thisis effortlesslylinkedasa directsolutiontothe aforementioneddifficultyinpublishingawareness. Thirdly are those NGOswitha primaryinterestinpromoting,ormitigating,acause througha directand personal involvement.Considerthe SouthernAfricanNGO,GenderLinks.The organization promotesgenderequalityandjustice acrossa15-country wide region,andhasbeenrecognizedas“a small organizationwithlarge footprints,”(Sang). Where these organizationsare unable toproduce or purchase all of the materialsandproductsnecessaryto fulfill theirgoal,NGOswithinthis characterizationoftencall upon those tomake charitable donationsinreturnforbeingaddedtoa publicizedandrecognizedsupplierdatabase. Accountability Lastly,itis worth verybriefly discussingthe role inwhichNGOsplayinprovidingaccountable solutionstoenvironmental, international,andpublicissues. Itmaybe arguedthat, initsmost elementaryinterpretation “…NGOsare respondingto…[a] democraticdeficitbycreatingthinktanks… publishingcritical work…[and] therebyprovidingspace formore debate inthe publicsphere,”
  22. 22. 20 (Lehman).These goalssetforthbythe organizations,particularlyreferencingNGOs, cannotbe carried out bylearningethical rulesby force of habitanddevelopingmore procedure.Whatisrequiredisa democraticstructure that appropriatesthese idealswithauthenticity –where suchan authenticity involvesmakingthese democraticvaluesourown,therebyembodyingthe veryprinciplesof the organization. Concluding Thoughts Throughoutthe variousphasesof orchestratingthisarticle,myview on the developingworld had beenundoubtedlytransformed.Nevertrulyinvestigatingthe mattersthatare broughtforthon mediachannelsorsponsoredadvertisementsseekingdonationsfornon-profits–has beenadisservice at its mostbasicroot. Strictlyspeaking,Ihave come totwo extreme endsof thoughtwhenitcomesto the discussionof developingnationsandtheireconomies:emotionallydrivencommentsand/oractions, and those actionsfoundedinthe realmof logical analysis.Where Idonotdiscreditthose individualsfor theirstance on the subjectmatter,Imust wholeheartedlyobjecttothe extremes,andallocate fora middle ground. It had beenmyprimaryintentiontoillustrate the civilstrife thatis stranglingthesenations, havinga wide seriesof horrificdirectandindirectcosts – rangingfrommismanagementof currency to the violationsof humanrights.More unfortunate isthe ideaandvaliditybehindthe effectsof the discussed ConflictTrap.Thisis,andof itself,anargumentstressingthe importance of proper government,stronggovernance,andessential necessityof NGOs. At the root of civil andpolitical strife, shatteringboth society anditseconomies,liesthe lackof properpropertyrightsandtheir due enforcement.Thisisespeciallytrue forsuchdevelopingnations that rely uponthe abundantpoolsof natural oil,the lushgreeneryof untouchedforestry, orthe untappedstoresof pristine waters.Itisthroughimproperenforcementandpolitical regulationof such
  23. 23. 21 industriesandnationsthatallowforthe mismanagementof extractingprinciples, whichoftenresult in irreversible andcatastrophicallydamagingoutcomes, leadingtoa plethoraof directandindirectcosts, furtherstagnatingthe growthof that nationas a societyandas an economy. Lastly, onlysince the introductionof Non-Governmental Organizations have developingnations begunto receive the publicationandawarenessnecessarytosparka change withina single lifetime. While itisdifficulttosuggestatthiscurrentstage where foreignaidisacceptable andwhere itisnot,I believethroughsponsoringatrulyinsightfulNGO,we may,atthe veryleast,provide hope tosome.
  24. 24. 22 Appendix Figure 1
  25. 25. 23 Figure 2 Figure 3
  26. 26. 24 Figure 4
  27. 27. 25 Bibliography Civil Net Television. "Good Governance and Sustainable Development." YouTube. Civil Net Television, 13 Oct. 2014. Web. 27 Feb. 2016. Collier, Paul. Breaking the Conflict Trap: Civil War and Development Policy. Washington, DC: World Bank, 2003. Print. Emerton, Lucy. "The National Economy and Environmental Degradation in Kenya." African Wildlife Foundation Discussion Papers Series 3rd ser. (1997): 2-16. African Wildlife Foundation. Web. 1 Mar. 2016. Garfinkel, Michelle R., Stergios Skaperdas, and Constantinos Syropoulos. "Globalization and Insecurity: Reviewing Some Basic Issues." Guns and Butter The Economic Causes and Consequences of Conflict (2008): 1-27. Web. Johnson, Eric. Blood Diamonds: The Conflict in Sierra Leone. Stanford Publications. EDGE, 6 Dec. 2002. Web. 29 Feb. 2016. <http://web.stanford.edu/class/e297a/Conflict%20in%20Sierra%20Leone.htm>. Lehman, Glen. "The Accountability of NGOs in Civil Society and Its Public Spheres." Critical Perspectives on Accounting 18.6 (2007): 645-69. Web. 1 Mar. 2016. Mobekk, Eirin, Mich Silva, Richard W. Benfield, and INGE BRINKMAN. "Angola." Encyclopedia.com. HighBeam Research, 01 Jan. 2007. Web. 12 Mar. 2016. <http://www.encyclopedia.com/topic/Angola.aspx>. Mostashari, Ali. An Introduction to Non-Governmental Organizations (NGO) Management. Massachusetts Institute of Technology Online Database. Iranian Studies Group at MIT, June 2005. Web. 27 Feb. 2016. <http://web.mit.edu/isg/NGOManagement.pdf>.
  28. 28. 26 Osano, Philip M. Estimating Land Prices and Opportunity Costs of Conservation in a Megadiversity Country. Nairobi, Kenya: African Technology Policy Studies Network, 2011. Print. Renner, Michael, and Thomas Prugh. The Anatomy of Resource Wars. Washington, DC: Worldwatch Institute, 2002. Print.

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