Natural Resources and Violent Conflict - WaterWiki.net

258 philippe le billonregulation on multinationals in the social and environmental realms,preferring voluntary rules (for example, OECD Guidelines for MultinationalEnterprises). Corporations have adopted self-regulationpolicies, in large part to reduce risks such as conflicts and costly governmentregulations, to protect or enhance their reputation in relationto social demands, and to respond to innovative concepts within thebusiness community. Self-regulation has been most frequent withinlow-competition and high-asset-specificity industries, such as oligopolisticextractive sectors tied to fixed reserves and infrastructures (Haufler2001, pp. 21–30).Self-regulation is both reactive and proactive and can fill the regulatorygaps left by international and national regulations. But althoughthis type of instrument can positively influence the behavior of somebusinesses, it often remains a limited one, both in scope and in accountability.While some see in it a way to explore and prepare future publicregulation, others believe that it is becoming far too effective at retardingregulation. Few governments appear to be ready to impose strictregulation on businesses or individuals profiting from the trade in conflictresources (on mandatory investment screening and code of conductin conflict-prone countries, see box 6.3). The consultation of governmentson the issue of corporate complicity in war economies andhuman rights abuses by the UN expert panel on the DemocraticRepublic of Congo yielded no support or suggestion for meaningfulmeasures to curb the trade among 11 transit countries. Out of 17 governmentsof end-user countries, only Belgium suggested the impositionof targeted sanctions against companies. 49The Global Mining Initiative and Other Reviews of ExtractiveIndustries. The stated goal of the Global Mining Initiative, sponsoredby nine of the world’s largest mining and minerals companies, is togain “a clearer definition and understanding of the positive part themining and minerals industry can play in making the transition to sustainablepatterns of economic development.” It contracted an independentanalysis of the industry in consultation with stakeholders—theMining, Minerals, and Sustainable Development (MMSD) Project—that included a section on human rights violations and armed conflicts.Relevant recommendations of the report are in the following areas:• Managing and distributing mineral wealth• Increasing transparency in the management of mineral wealth• Combating corruption• Promoting and protecting human rights• Preventing conflicts• Providing information and collective stewardship in the valuechain.