Both inter-state and intra-state conflicts have been linked to and fuelled by the exploitation of and trade in natural resources, particularly in developing and emerging markets. Despite periodic scandals over human rights abuses, civil law violations, even war crimes, such conflict resources, often minerals, are processed into goods by legitimate manufacturers, often in developed or other emergent economies. Yet in an information age where constituents of products can be traced to their sources, there is selective amnesia by consumers, marketers and governments. This presentation seeks to address the parameters of the issue of conflict resources, before examining case studies of various natural resources across different continents that demonstrate the complexity of the issue.

1. AMOS OWENTHOMAS
Stockholm University

2.  Background/Context
 40% of conflicts in past 60 years over resources:
▪ Metals, gems, rare earths, oil, timber, food, water, etc.
 Human rights abuses, law violations, war crimes:
▪ Perpetuated by government, separatists, militias, gangs
 Research Motivation
 Entry into supply chains despite embargoes:
▪ Processed and incorporated by legitimate and illicit firms
 Marketed as consumer and industrial goods:
▪ Yet largely unaddressed by business academia
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS EMIC Slide 2

3. www.crisis.acleddata.com/resource-related-conflict-in-africa/

4.  Violence and Human Rights
 Indentured labour, extortion, child labour:
 Militias, local/foreign forces, funding terrorism
 Traders and Intermediaries
 Criminal syndicates, smugglers, corporate buyers
 Mixing legitimate resources before/in production
 Corporations and Corruption
 Licenses / concessions to mine and stockpile:
 Conflict zones, national sovereignty and int’l jurisdiction
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS EMIC Slide 4

5. Source: Bayer, C. (2015)

6.  Diamonds & Gems
 Southern Africa, Australasia, Canada:
▪ Contested territories, sponsored insurgents, traditional land
 Coltan & Rare Earths
 Central Africa, Brazil,Venezuela, China:
▪ Reserves contracted, stockpiling against scarcity
 Oil & NaturalGas
 Mid-East / Caspian / SE Asia / Latin America:
▪ Regional wars, regime change, re-routing & mixing supplies
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS Slide 6

7. Source: Young, S. B., & Dias, G. (2012)

8.  Peace-Enforcement and Conflict Resolution
 Involvement of foreign / local forces / arms trade:
▪ Vested interests of neighbouring regimes vs. peace dividend
 Global Regulation and Local Monitoring
 Implementation in remote areas and supply-chain:
 Political will and capability / capacity-building
 Corporate Compliance and Buyer Education
 Digital tracing of sources and tracking of processing:
 Promoting demand of buyers vis-a-vis cost / prices
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS EMIC Slide 8

9. © Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS EMIC Slide: 9
EXPLORING / MATERIAL MANUFACTURE / PRODUCT
SOURCING PROCESSING ASSEMBLAGE MARKETS
Mining
Drilling
Excavatn
etc.
Smelting
Refining
Polishing
etc.
Developing Countries / Emerging Economies / Industrialised Economies /
Emergent Economies Industrialised Economies Emerging Economies
E-Circuits
Assembly
Sheets /
Rods
etc.
Phones
Cars
Jewelry
Machines
etc.
Tagging
source
Peace-
enforcmt
Monitoring
regimes
Tracking
usage
Education
programs
Tracing
supply

10.  Theoretical Implications
 Political-economy of ‘resource curse’ contexts
 Business ethics in shadow economies abroad
 De-marketing demand; innovative re-manufacture
 Practitioner Applications
 Addressing poverty, education, employment, health
 Banning arms entering, not resources leaving
 Delayed obsolescence, recycling / up-cycling
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS
EMIC Slide
10

11.  Original Insights
 Interlinks with other dark trades:
▪ Human trafficking, arms sales, money laundering, waste
 Comprehensive regulation of all resources needed:
▪ Minerals, energy, water, forest, wildlife, cultural heritage
 Unresolved Areas
 Cost and risk of tracing / tracking resources:
▪ Challenges of logistics and pre-processing stages abroad
 Promoting benefits of conflict-free differentiation:
▪ Educating consumers and business on ethics / sustainability
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS EMIC Slide 11

12.  Resources
 Bannon, I., & Collier, P. (2003). Natural Resources andViolent
Conflict:Options and Actions.TheWorld Bank.
 Campbell, G. (2012). Blood Diamonds:Tracing the Deadly Path
of theWorld's Most Precious Stones. Basic Books (AZ).
 Eichstaedt, P. (2011). Consuming the Congo:War andConflict
Minerals in theWorld's Deadliest Place. Chicago Review Press.
 Contact
 Stockholm Business School, Kraftriket, Sweden
 amos.owen.thomas@sbs.su.se; +468-163-341
© Amos Owen Thomas CONFLICT MINERALS / EMERGING MARKETS EMIC Slide 12