Natural Resources and Violent Conflict - WaterWiki.net

222 philippe le billon• Activities associated with conflicts and human rights abuses areprohibited (for example, prohibition of corruption or forced labor).• Actors described as belligerents or war criminals are excludedfrom legitimate trade (for example, UN targeted sanctions on rebelleaders).Regulatory instruments range from purely voluntary measuresdesigned and adopted by resource businesses to mandatory regulationsimposed by intergovernmental bodies under international law:• Prescriptive legal instruments creating a disincentive for an offense(for example, mandatory sanctions)• Market-based legal instruments creating an incentive for compliance(for example, tax rebates or market access and rewards linked toethical business practices)• Voluntary approaches creating an incentive for compliance(for example, corporate code-of-conduct and voluntary productcertification)• Normative pressure instruments (for example, advocacy campaignsby civil society groups).Each instrument has its own advantages and disadvantages, whichvary according to the type of target. It is often argued that voluntary instrumentshave the advantage of being internally defined by businessesand thus represent a greater ownership of policy and better adaptationto specific conditions than mandatory regulations. They can also offerthe advantage of cutting across national jurisdictions and being globalin scope when applied across a multinational company, its subsidiaries,and business partners. Yet voluntary instruments can be limited inscope—generally concentrating on core activities—and frequently lackaccountability through independent auditing and enforcement. Theyare also unlikely to act as a deterrent, unless clearly linked to marketincentives. Although generally slow and dependent on effective enforcement,mandatory regulations have undeniable advantages, consideringthat:• Opportunistic belligerents and business people can be motivatedsolely by profits, whatever the cost to populations in conflict-affectedregions.• The absence of a level playing field within a sector or marketplaces legitimate businesses following “pro-peace” best practices at adisadvantage compared with their less scrupulous competitors.• A constraining “wartime” regulatory framework, such as tradesanctions, may motivate businesses to take a more active role inpromoting peace.