Trade, Aid and Security Trade, Aid and Security An Agenda for Peace and Development Edited by Oli Brown, Mark Halle, Sonia Peña Moreno and Sebastian Winkler EARTHSCAN London • Sterling, VA First published by Earthscan in the UK and USA in 2007 Copyright © IISD and IUCN, 2007 All rights reserved ISBN-13: 978-1-84407-419-8 (paperback) ISBN-13: 978-1-84407-420-4 (hardback) Typeset by JS Typesetting Ltd, Porthcawl, Mid Glamorgan Printed and bound in the UK by Cromwell Press, Trowbridge Cover design by Susanne Harris Front cover image ‘After the War, Angola 2002’ by Amelia Bookstein Back cover image ‘Carrying Water, Thyolo, Malawi 2002’ by Amelia Bookstein For a full list of publications please contact: Earthscan 8–12 Camden High Street London, NW1 0JH, UK Tel: +44 (0)20 7387 8558 Fax: +44 (0)20 7387 8998 Email: [email protected] Web: www.earthscan.co.uk 22883 Quicksilver Drive, Sterling, VA 20166-2012, USA Earthscan is an imprint of James and James (Science Publishers) Ltd and publishes in association with the International Institute for Environment and Development A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Trade, aid, and security : an agenda for peace and development / edited by Oli Brown . . . [et al.]. p. cm. ISBN-13: 978-1-84407-420-4 (hardback) ISBN-10: 1-84407-420-X (hardback) ISBN-13: 978-1-84407-419-8 (pbk.) ISBN-10: 1-84407-419-6 (pbk.) 1. Peace–Economic aspects. 2. Economic development–International cooperation. 3. International trade–Political aspects. 4. Economic assistance–International cooperation. 5. Security, International–Economic aspects. I. Brown, Oli. JZ5538.T73 2007 338.9–dc22 2006100474 This publication is printed on FSC certified totally chlorine-free paper. FSC (the Forest Stewardship Council) is an international network to promote responsible management of the world’s forests. Contents List of Tables and Boxes vii The World Conservation Union and the International Institute for Sustainable Development viii List of Contributors x Acknowledgements xii Foreword xiii List of Acronyms and Abbreviations xvii Introduction: Trade, Aid and Security: An Agenda for Peace and Development 1 Duncan Brack 1 Designing Conflict-sensitive Trade Policy 18 Mark Curtis 2 Developing Conflict-sensitive Aid: The Relationship between Aid and Conflict 41 Ian Smillie 3 Promoting ‘Good’ Governance through Trade and Aid: Instruments of Coercion or Vehicles of Communication? 72 Oli Brown 4 Building Markets for Conflict-free Goods 92 Duncan Brack and Gavin Hayman 5 Promoting Conflict-sensitive Business in Fragile States: Redressing Skewed Incentives 126 Karen Ballentine 6 Managing Revenues from Natural Resources and Aid 158 Richard Auty and Philippe Le Billon vi Trade, AidandSecurity: AnAgendaforPeaceandDevelopment Conclusion: Prospects for Peace and Progress 190 Mark Halle Index 198 List of Tables and Boxes Tables 4.1 Dynamics affecting three natural resources and their relationship to conflict 104 4.2 UN sanctions on conflict commodities 105 6.1 Structure of GDP and employment in Algeria, 1999 165 6.2 PWYP and EITI compared 180 Boxes 6.1 The UN Oil-for-Food programme in Iraq 167 6.2 Revenue management laws in conflict-affected countries 171 The World Conservation Union and the International Institute for Sustainable Development The World Conservation Union Founded in 1948, The World Conservation Union (IUCN) brings together states, government agencies and a diverse range of non-governmental organi- zations (NGOs) in a unique world partnership: over 1000 members in all, spread across some 140 countries. As a union, IUCN seeks to influence, encourage and assist societies throughout the world to conserve the integrity and diversity of nature and to ensure that any use of natural resources is equitable and ecologically sustainable. IUCN builds on the strengths of its members, networks and partners to enhance their capacity and to support global alliances to safeguard natural resources at local, regional and global levels. International Institute for Sustainable Development The International Institute for Sustainable Development (IISD), based in Winnipeg, Canada, contributes to sustainable development by advancing policy recommendations on international trade and investment, economic policy, climate change and energy, measurement and assessment, and sustainable natural resources management. Through the internet, we report on interna- tional negotiations and share knowledge gained through collaborative projects with global partners, resulting in more rigorous research, capacity building in developing countries and better dialogue between north and south. IISD’s vision is better living for all – sustainably; its mission is to champion innovation, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and has 501(c)(3) status in the US. IISD receives core operating support from the Government of Canada, provided through the Canadian International Development Agency (CIDA), the International The IUCN and the IISD ix Development Research Centre (IDRC) and Environment Canada, and from the Province of Manitoba. The Institute receives project funding from numerous governments inside and outside Canada, United Nations’ agencies, foundations and the private sector. Visit www.iisd.org for more information.
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