Natural Resources and Violent Conflict - WaterWiki.net

where did it come from? 101• Effective compliance and enforcement measures: 1 (a) Clear compliancemeasures at the international level, such as conditional marketaccess and trade measures, are necessary to eliminate free-ridingstates. (b) Dispute resolution procedures are needed to prevent unilateralactions. (c) Appropriate enforcement measures at the nationallevel are necessary to deter evasion of national controls that implementthe CTR. (d) Ideally, a CTR should generate incentives to complyand incentives for industry to monitor its own behavior, especiallythrough conditional market access.• Capacity building: (a) Any effective scheme should acknowledgedifferences in ability to comply with and enforce provisions, equityissues in compliance, and ability to take steps to build the capacity ofnational authorities, especially given the idea of shared but differentiatedresponsibility of producer and consumer states. (b) Conditionalityon development assistance can be used as a lever to improve compliance,especially where noncompliance jeopardizes economic stability andpoverty reduction targets.In addition, there are five contextual considerations: detailed understandingof the commodity chain, dynamics of market supply,dynamics of demand, political and institutional context, and harmonizationwith existing international law. The following list details eachin turn.• Detailed understanding of the commodity chain: (a) Control systemsshould be tailored to the specific way in which a commodity isaccessed, processed, transported, and sold. (b) Enforcement and complianceprocesses need to understand the complex relationship betweenlicit and illicit markets and between suppliers of raw materialand producers of final products as well as the role of ancillary specialistservices.• Dynamics of market supply: (a) Information such as propertyand access rights in producer countries is an important element ofmarket supply. (b) The economics of legitimate and illegitimate access,including harvesting and capital costs, is another.• Dynamics of demand: (a) Demand is related to the nature of theconsumer market, including the degree of fragmentation of end usersand the elasticity of demand for specific final products. (b) Public educationhas a role in promoting appropriate consumption policies.• Political and institutional context: (a) Understanding is needed ofthe political, economic, and social circumstances of producing, processing,and consuming countries. (b) It is important to avoid bureaucraticsatisficing (that is, the tendency of all institutions to meet their ownimmediate needs while failing to address the forces creating problems).