9 August 2001

ACAS Bulletin, No. 60/61, Fall 2001 Introduction: It’s about Oil Meredeth Turshen The price of oil is falling, as we go to press. in primary schools and low rates of adult OPEC has enlisted Mexico as its go-between to literacy. talk with non-OPEC members, notably Russia and Norway, about cutting production in order Developing countries that are dependent on oil to keep the price above the feared bottom of $10 and mineral wealth face a much higher danger of a barrel (a price not seen since the Thai economy civil war than resource-poor nations in any given failed in 1998, setting off a recession and five-year period. They spend a far higher reducing demand). Eleven OPEC members percentage of their budgets on their militaries, account for 61% of world exports; the world diverting funds from programs that directly share of three African countries - Algeria, Libya address the needs of the poor. Angola tops the and Nigeria - is 10.5%. As oil producing nations list of oil-dependent states and ranks lowest on lose revenue, the welfare states they support the human development index of the 25 come under stress. But even in the best of times countries in this category. Petroleum exports in this boom-and-bust industry, most citizens of generate over 90% of Angola’s hard currency oil-rich states do not benefit from their income; together with diamond exports, this countries’ wealth. amounted to $3.8 billion in 1990. According to the World Bank, 20.5% of Angola’s GNP went Developing nations that rely heavily on oil or to military expenditures in 1997. In oil- and mineral exports suffer higher rates of poverty mineral- producing countries, the level of and child mortality than similar countries with repression and poverty is often greatest in more diverse economies; they also spend more precisely those regions where these resources on their militaries, according to the study, are located. The relationship between oil, "Extractive Sectors and the Poor," written by minerals and economic, social and political UCLA Professor Michael Ross for Oxfam disempowerment is sharp and direct. It is against America. The report contests the conventional this background that Chad is about to become oil economic wisdom that developing nations dependent in the next decade. prosper by extracting and exporting their oil and mineral wealth. Oil and mineral dependency The focus of this issue of the Bulletin is on the tend to reduce the rate of economic growth. role of oil. Given the close links between the Bush administration and oil companies, we Eight of the 25 oil-dependent states are in wanted to look more closely at the issue of oil in Africa. Using a UNDP measure that factors per Africa - who is producing it, how much wealth it capita income, health and education, Ross finds generates, who controls that wealth, who that the more developing countries rely on benefits from it, and what are the social, exporting minerals, the worse their standard of economic and political costs to Africans of the living is likely to be; mineral-dependent Zambia various regional developments? We are and Zimbabwe showed marked declines in the interested in the commonalities of what oil 1990s. Oil- and mineral- dependent developing companies are doing in these countries and the countries have higher infant and child mortality types of campaign in Africa that can be rates than other countries with similar income supported in the US to help affect the role that levels. In these cases, oil dependency is linked to oil plays here and there. In soliciting the articles, malnutrition. Worldwide, an average of 26.5 we asked authors to focus on progressive children per thousand are malnourished: in oil- activism, what can people do and what has rich Nigeria, the rate is 37.7 per thousand. Oil worked, while also providing readers with dependency also correlates with low enrollment 1 ACAS Bulletin, No. 60/61, Fall 2001 directions to good resources, references for scale oil and mining projects, which critics see study and for campaigning.(1) as environmentally and socially destructive. In response to the protests, the World Bank began a Our authors discuss the role of oil in Chad, yearlong review in October 2001 of its Nigeria and Sudan, including the specific investments in oil, gas and mining sectors, international oil companies involved; they consulting with industry representatives, describe the campaigns in the countries, governments and non-governmental organi- identifying social movements or groups involved zations. Several of our authors comment on the in the campaigns and noting how representative Bank’s role in the Chad/Cameroon pipeline they are; they elaborate on international project. campaigns focused on the role of oil in the countries, with the major focus on US The final article deals with oil, not in Africa, but campaigns, distinguishing elite, Washington- in Saudi Arabia. Caffentzis gives us the deep focused efforts from grassroots popular background needed to understand the attacks on campaigns (that may or may not attempt to September 11th. In discussing oil and Islamic influence US policy, oil companies’ behavior or fundamentalism, he provokes us to think about popular perceptions); and they assess common how to link the environmental and human rights strategies and tactics that have worked to movements engaged in the oil campaigns in mobilize specific groups (e.g., churches, the Africa and the US with the larger anti- African American constituency, environmental globalization movement. groups and students) in the US, as well as suggest strategies and tactics that might be used ACAS has chosen to address the role of to make alliances with people focusing on the Western oil companies in Africa in order to see role of oil in other countries. (The article on if activists running campaigns in the US and Algeria is different because there is no campaign Africa could together develop a more robust in that country or in the US and very little position on Africa, oil, development, human information on environmental destruc-tion rights and the environment. Our aim is to share attributable to oil and gas production.) analyses, strategies and tactics and to help other groups make oil a focus of their work in these The campaigns described in this issue of the four years of the US oil presidency. This issue of Bulletin focus on human rights and the Bulletin will, we hope, open a vigorous environmental abuses; as Ian Gary notes in his debate about oil and energy alternatives, about article, most statements by Catholic Churches in extractive industries and development, as well as Africa do not argue that natural resources should about globalization and the looting of Africa’s remain unexploited, but that such exploitation other resources, including biodiversity. should be done in a way that avoids environmental destruction, observes human Note rights principles and benefits the African people, (1) A committee of ACAS members, comprised especially the poor who live amidst such great of Lisa Brock, Jim Cason, Jennifer Davis, Mike wealth. Should African nations avoid extractive Fleshman, Bill Martin, Marc Mealy, Meredeth industries altogether, as Oxfam argues? We note Turshen, and Michael West, contributed to the that the communiqué of the two-day workshop compilation of this issue of the Bulletin. on community resistance to oil activity, which was organized as part of the activities for the References Oilwatch Africa General Assembly in Port For the World Bank's extractive industries Harcourt, Nigeria, in 1999, which is reproduced review see: http://www.eireview.org. in this Bulletin, does not call for an end to oil For the Oxfam report see: development. http://www.oxfamamerica.org/eireport/index.ht ml Recent protests against the World Bank have focused on that institution's support for large- 2 ACAS Bulletin, No. 60/61, Fall 2001 The International Community and the Crisis in Nigeria’s Oil Producing Communities: A Perspective on the US Role Michael Fleshman The United States Government: Interests and state" scenario of ethnic conflict and social Policies upheaval on the order of the Biafran civil war that would take millions of lives and send tens of The United States has long recognized Nigeria's millions of refugees into neighboring states. In strategic importance in Africa and its economic any case, the official asserted, the pro- role as a major supplier of oil to the US market. democracy movement had no prospect for US policy toward the region has therefore ousting the military, so the best policy was to sought as a first priority to secure reliable accommodate Abacha in hopes of curbing his supplies of Nigerian oil, protect the billions of worst excesses and encouraging greater civilian dollars invested in Nigeria by US energy participation in his government. companies and assist US companies to expand their share of crude oil production and domestic Although human rights and democracy are marketing. Nigerian participation in particularly on the US policy agenda, they are clearly African peacekeeping and crisis intervention, as "second tier" concerns that are invariably in Liberia and Sierra Leone, and efforts to alternately coerce or persuade the government to superseded by economic and security in- crack down on Nigerian drug trafficking terests. syndicates, corruption and "419" fraud schemes have also emerged as major themes in US- In pursuit of its core policy objectives, therefore, Nigeria relations. the United States responded to the annulment of the June 12 election and Abacha's coup by Although human rights and democracy are on imposing a handful of symbolic measures the US policy agenda, they are clearly "second intended to demonstrate disapproval but not tier" concerns that are invariably superseded by weaken or destabilize the regime.

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