Natural Resources and Violent Conflict - WaterWiki.net

attracting reputable companies 317In Nigeria the federal government sought to address accusations ofneglect in the Niger Delta by establishing a Niger Delta DevelopmentCommission. The commission’s mandate is to ensure that a proportionof oil revenue from the region is spent on local development.However, a recent report by Human Rights Watch finds that there is“virtually no control or proper audit over spending by state and localauthorities” and that the commission has made little impact (HumanRights Watch 2002, p. 23). Human Rights Watch is critical both of thecompanies and of the government but points out: “Fundamentally, itis the failure of government to take up its responsibilities, includingresponsibilities to regulate corporate behavior, that has placed the oilcompanies in a position where they effectively substitute for government,with all the negative consequences that this report and othershave illustrated” (Human Rights Watch 2002, p. 32).If national or local governments do not deliver, then people may lookto companies to fulfill some of their functions, for example, the provisionof schools and medical care. However, this in itself creates problems.Companies argue that their expertise does not equip them to serveas development agencies. Also, if local people’s expectations are unrealistic,they may resort to force to demand what they regard as their rights.Local CommunitiesExperience underlines the need for a social “license to operate” fromlocal communities. Again, governments often promise to look afterthis, but they cannot always deliver. Companies need to undertake theirown consultations, but they may find it difficult to identify clear negotiatingpartners. For example, in the aboriginal societies of Australiadecisions made by one leader may not be recognized by the communityas a whole. Similarly, in the southern Philippines, Western MiningCorporation and its successors have had to deal with five subgroups ofthe indigenous Bla’an tribe rather than with a single entity. 25Current industry best practice emphasizes that good community relationsare essential from the outset. For example, in a recent issue ofthe Rio Tinto Review, the company explains how it sets about diamondexploration in southern India (Morrisey 2002). Rio Tinto’sexploration team made a point of visiting local villagers in advance toexplain why they wanted to fly low over their fields “with two largeobjects that look like missiles suspended from their helicopter”—the“missiles” were special geological sensors. If people know what toexpect, they are less likely to react with hostility.The company cannot take it for granted that the government islooking after community relations, even if it promises to do so. A