Natural Resources, Conflict, and Conflict Resolution: Uncovering The Mechanisms
Natural Resources, Conflict, and Conflict Resolution: Uncovering The Mechanisms
Natural Resources, Conflict, and Conflict Resolution: Uncovering The Mechanisms
10.1177/0022002705277545
Humphreys / NATURAL
CONFLICT
RESOURCES,
RESOLUTION
CONFLICT, AND CONFLICT RESOLUTION
MACARTAN HUMPHREYS
Department of Political Science
Columbia University
The interpretation of the resource-conflict link that has become most publicized—the rebel greed
hypothesis—depends on just one of many plausible mechanisms that could underlie a relationship between
resource dependence and violence. The author catalogues a large range of rival possible mechanisms, high-
lights a set of techniques that may be used to identify these mechanisms, and begins to employ these tech-
niques to distinguish between rival accounts of the resource-conflict linkages. The author uses finer natural
resource data than has been used in the past, gathering and presenting new data on oil and diamonds produc-
tion and on oil stocks. The author finds evidence that (1) conflict onset is more responsive to the impacts of
past natural resource production than to the potential for future production, supporting a weak states mecha-
nism rather than a rebel greed mechanism; (2) the impact of natural resources on conflict cannot easily be
attributed entirely to the weak states mechanism, and in particular, the impact of natural resources is inde-
pendent of state strength; (3) the link between primary commodities and conflict is driven in part by agricul-
tural dependence rather than by natural resources more narrowly defined, a finding consistent with a “sparse
networks” mechanism; (4) natural resources are associated with shorter wars, and natural resource wars are
more likely to end with military victory for one side than other wars. This is consistent with evidence that
external actors have incentives to work to bring wars to a close when natural resource supplies are threatened.
The author finds no evidence that resources are associated with particular difficulties in negotiating ends to
conflicts, contrary to arguments that loot-seeking rebels aim to prolong wars.
1. INTRODUCTION
In early April 1975, President Tombalbaye of Chad appealed on national radio for
popular vigilance, warning that members of the army were plotting a coup against him.
He explained that if anyone wanted to know why a coup was being plotted, the answer
lay with the oil in the Doba fields in the south. This appeal turned out to be
Tombalbaye’s last public address. On April 13, he was killed during Chad’s first suc-
AUTHOR’S NOTE: My thanks to Nicholas Sambanis, Iain Lustik, Robert Bates, Doron Hadass, Bryan
Graham, David Hecht, Michael Ross, Jim Fearon, Habaye ag Mohamed, and Jeremy Weinstein for generous
help with ideas and with data and to Brendan McSherry for terrific research assistance.
JOURNAL OF CONFLICT RESOLUTION, Vol. 49 No. 4, August 2005 508-537
DOI: 10.1177/0022002705277545
© 2005 Sage Publications
508
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 509
cessful coup d’etat.1 Unfortunately for Tombalbaye, he had had increasingly strained
relations with France, his chief military backer, ever since he allowed U.S. corpora-
tions to prospect for oil in the ex-colony. The U.S. corporation was successful where
French prospectors had failed. And France took umbrage.2 Ever since, oil has had a
striking prominence in the intrigues of Chadian politics. The government of Hissène
Habré is reported to have received U.S. support in exchange for his support of U.S. oil
corporations while politicians and NGOs argue that the present president, Idriss Déby,
previously Habré’s right hand man, was offered military support from France’s Elf if
he would overthrow the Habré régime and give France a stake in the southern oil
fields.3 The oil in the south has also been seen to be fuelling southern ambitions for a
federalist state, if not for outright separation. The leader of the present southern oppo-
sition, Ngarlejey Yorongar, has been incarcerated for accusing the previous southern
leader, Wadal Kamougué, of allowing himself to be co-opted by the government in
exchange for money from Elf.4 In short, in the eyes of Chad’s political leaders, control
of oil revenues has been central to Chadian politics for almost thirty years; it has made
and broken political leaders, has incited violence, and has shaped political agendas.
But what is perhaps most striking about Chadian oil is that, up to 2003, not a single
drop had been pumped.
The role of oil in Chad’s politics illustrates some of the complexity of the linkages
between natural resources and conflict. Contrary to popularized images of resource
conflicts in Africa, oil did not lead to rival warlords establishing resource-funded local
monopolies in Chad—the stories that link resources to conflict here center on gaining
tight control of the state rather than on the creation of chaotic environments. And while
natural resources may produce conflict by leading to shadowy states, the weakness of
Chad’s state structure cannot be attributed to its dependence on oil revenues to buoy it;
until recently none has been earned. Chad’s experience comes closer to what Michael
Ross (2002) terms a “booty futures” story—in which resources matter because reve-
nues can be raised in advance to gain control of them. In such a context, policy pre-
scriptions emanating from conflict research—that rebel financing needs to be cut off
through the infiltration of quasi-criminal trade routes and robust opposition to rogue
states—fall wide of the mark.
The problem is that unless we understand the mechanisms linking resources to con-
flict, the advice of conflict scholars will be of limited use to the policy community. And
unless we test these mechanisms, we will be unsure of the generality of processes we
observe in individual cases, such as those seen in Chad. In this article, I explore the
diversity of mechanisms that may link natural resources to conflict and develop and
employ strategies to identify which mechanisms are likely to be in operation when.
1. This explanation is provided by Mohammet Sally, a leader of FROLINAT, the dominant Chadian
rebel group at the time (interviews, N’djamena, April 2003). The leader of the coup, Wadal Abdelkadar
Kamougué, denies any connection between the coup and Doba oil (interviews, N’djamena, April 2003).
2. On French frustration see Nolutshungu (1996). Jacques Foccart (1999) describes how by 1969 the
involvement of U.S. corporations in Chad was seen as an insult to the prestige of the French army.
3. This claim, emanating apparently from the leader of the opposition, Yorongar, has been argued by
Agir ici -Survie (1999) and Verschave (2000). And according to Verschave, Déby also had at least tacit mili-
tary support from the French troops stationed in N’djamena.
4. Agir ici -Survie (1999) and interviews with Yorongar (N’djamena, April 2003).
510 JOURNAL OF CONFLICT RESOLUTION
The article is organized as follows. Drawing largely on the experiences of Sahelian and
West Africa states as well as work by scholars who have studied a wider set of cases
and identified relevant mechanisms (notably, Le Billon 2001; Snyder 2002; Ross
2002, 2003, 2004a), I catalogue a series of mechanisms that may link natural resources
to conflict onset and conflict duration. With the aim of engaging with the econometric
literature, the task then is to find ways econometrically of differentiating between the
effects of these rival mechanisms. I discuss four strategies for doing so, indicating how
the different strategies may be used for the problems at hand. In the final section I turn
to the data, building on the model developed by Fearon and Laitin (2003); I begin the
task of identifying the work of rival mechanisms on conflict onset and duration and
testing a core set of the relations discussed in previous sections.
Highly influential research by Paul Collier and Anke Hoeffler at the World Bank5
suggests that countries whose wealth is largely dependent on the exportation of pri-
mary commodities—a category that includes both agricultural produce and natural
resources—are highly prone to civil violence. In explaining the correlation between
primary commodities and conflict, Collier and Hoeffler argue that conflict may be
explained either by greed or by grievances, such as feelings of ethnic or political
marginalization. They conclude (in large part based on the correlation between pri-
mary commodities and conflict) that to understand the causes of contemporary civil
wars we should forget about political and cultural arguments and focus instead on the
greed of rebels and especially on their trade in natural resources. 6
The problem is that the correlation between commodities and conflict does not
imply either that rebels are greedy or that they finance their campaigns through the
trade in natural resources. The correlation could arise, for example, if conflict, or even
expectations of a conflict, causes other economic activities, such as tourism and manu-
facturing, to cease, leaving only extractive industries to function.7 But even if the rela-
tionship is not so spurious, there are at least six rival families of mechanisms that could
explain the relationship between natural resources and war onset and duration; rebel
greed is just one of them.8 Here are the six.
The greedy rebels mechanism, with three variants. The first, emphasized by Collier
and Hoeffler, is that domestic groups may engage in quasi-criminal activity to benefit
from resources independent from the state. The second, argued by Fearon and Laitin
(2003), is that natural resources increase the “prize” value of capturing the state. The
first variant should lead to the local expulsion of the state, as in Colombia; the second,
to bids to gain state control, as in Chad or, as argued by Engelbert and Ron (2004), the
Republic of Congo. Plausibly the first variant may lead to the second, or vice versa, as
in Sierra Leone, where control of the diamond areas sufficiently weakened the state as
to make state capture appear easy. In a third variant, if natural resources are concen-
trated in a particular region of a country, this may ground beliefs among dissatisfied
groups that a seceding state could be viable or even prosperous.9 As with the feasibility
mechanism discussed below, the greedy rebels mechanism does not require that rebels
control resources directly; it may be sufficient to extract rents from those who do, as
has been done with oil extractors in Colombia, Cabinda, and Nigeria.
The greedy outsiders mechanism. Rather than resulting from the greed of rebels, as
emphasized by recent literatures, the existence of natural resources may be an incen-
tive for third parties—states and corporations—to engage in or indeed foster civil con-
flicts. Hence, for example, the escalation of the civil war in the Democratic Republic of
Congo has resulted in part from the involvement of neighboring states seeking raw
materials (Dashwood 2000; Meldrum 2000; Willum 2001). The secessionist bid in
Katanga in Congo was supported if not instigated by the Belgian firm Union Minière
du Haut Katanga. And evidence suggests that the French oil corporation Elf took
actions that led to an escalation of the conflict in the Republic of Congo (Verschave
2000).
example, describes externalities of the extraction process itself in Aceh and Papua
New Guinea such as environmental damage and loss of land rights. Or finally, natural
resource wealth may be seen as more unjustly distributed than other wealth—as has
been claimed in Sierra Leone and Nigeria. In Niger, the insurgent groups stressed not
just that the north received little investment from the political center in the south but
also that the south relied economically on revenues gained from the uranium wealth of
the north, with no visible returns to the north. Such are the fears presently in Chad:
with no expectation that any of the oil revenues will accrue to their region, local leaders
in the Doba area have petitioned to the oil corporations for direct compensation, in the
form of scooters for each village leader.13
The feasibility mechanism. Natural resources could provide a way to finance rebel-
lions that have been started for other reasons, thereby increasing the prospects of suc-
cess.14 This can occur either through control of production during conflict, or, in prin-
ciple, through the sales of booty futures. Insofar as natural resource dependence
matters through feasibility effects, it is a “permissive cause” rather than a “root cause”
of conflict. Some scholars argue that because motivations for conflict are ubiquitous
only permissive causes of this form matter, nevertheless insofar as there is variation in
motivation, the feasibility explanation implies that there is a need to take account of
root causes when responding to conflicts. In principle, there should also be observable
differences in the conduct of wars, and of negotiations, between those that are con-
ducted to access resources and those that are financed by resources but conducted to
achieve other goals (although of course motivations may change over time).
13. Formally the Chad deal provides for 5 percent of revenues to be spent in the region of oil extraction
in the south. Few in the south believe that the government, dominated by northerners, will implement this
deal (interviews with village chiefs, Doba, April 2003).
14. As noted above, this interpretation of resources providing “opportunity” (as opposed to motivation)
is indeed a “softer” interpretation of the result that is sometimes suggested by Collier and Hoeffler.
15. Although, as argued by Snyder and Bhavnani (2005 [this issue]), the degree to which resources lead
to a weakened capacity for tax raising is partly endogenous to policy choices.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 513
long-standing one for oil-dependent states and has been recently stressed by Fearon
and Laitin (2003), who argue that oil states are more likely to have weak structures
because they have less need for intrusive bureaucracies to raise revenue.16 The result
may be a state such as Mobutu’s Zaire that is divorced from the domestic economy.
16. See also Moore (2001) on the role of “unearned state income” on political development and Sørli
(2002) on the relationship between oil and “rentier” states.
17. “Dutch Disease” describes the effect of a rise in the price of nontradables relative to tradables that
adversely impacts on nonboom exporting sectors. The effect may also lower growth if manufactured exports
are more growth-enhancing than nontradables. Since growth is negatively associated with conflict, it could
be that natural resources effect conflict via their impact on growth.
18. Angell (1933).
19. The classic statement is that “wherever there is commerce, manners are gentle” (Montesquieu
1749, quoted in Hirschman 1982). Recent experimental evidence also suggests that market relations are
associated with greater “fair-mindedness.” See Ensminger (2001).
20. See Oneal and Russett (1999), Russett (2002), and Doyle (1997) for explanations of the source of
the dispute between liberals and realists and evidence that, when variables such as geographic proximity are
controlled for, trade reduces conflict.
514 JOURNAL OF CONFLICT RESOLUTION
There are also multiple avenues through which resources may affect duration. I
point to seven families of such mechanisms.
21. A Sahelian counterexample to the logic is provided by Chad. The FROLINAT rebellion, lasting
from 1966 to around 1980, was protracted but took place almost exclusively in a resource poor part of the
country, in the B.E.T. region of the north. The reason that FROLINAT could keep going when comparable
rebellions in Mali and Niger could not is that FROLINAT had access to prolonged foreign support, in this
case from Libya.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 515
clear why this should be so, however: insofar as the mechanism requires the ability to
make credible commitments, we may expect it to work to the advantage of one side
only—the government side (that is, the side that already has rights that it can sell and
that can, in principle, be enforced with the help of the international system) and
thereby lead to asymmetries and possibly shorter wars. In any case, whichever side is
financed by booty futures, if benefits accrue only after a conflict ends, we would
expect financiers to act only when they expect wars to be short, or to act to ensure that
wars are short.
22. Some goods, particularly bulky goods destined for export to a well-structured international market,
will have more centralized marketing channels than less bulky goods sold in less structured markets. These
qualities can be described as variations in a resource’s “obstructability.”
23. Collier, Hoeffler, and Söderbom (2001), for example, argue that “[many] rebel organizations face
severe problems of maintaining cohesion: hence the much shorter duration of such wars.” As suggested by
Nicholas Sambanis in comments, a useful distinction may be drawn between the ability of leaders of a given
group to enforce orders and the existence of multiple factions, each with its own leadership structures. Lack
of the former type of cohesion may make military victory for the government more likely, while lack of the
latter may prevent negotiated resolution.
24. More hierarchical structures may lead to longer wars because the leadership is less likely to suffer
personally from the costs of the conflict and is more likely to gain a large share of benefits. However, if a set-
tlement can be negotiated that benefits the leadership, more hierarchical organizations may be better able to
guarantee the adherence of the organization to the terms of the settlement.
25. While the literature on bargaining (e.g., Schelling 1960) suggests that fragmentation, by producing
limited mandates, may strengthen a negotiator, this logic only holds when the limits are within the bargaining
set. If placed outside the bargaining set, the bargainer may be seen as being unable to deliver any deal.
516 JOURNAL OF CONFLICT RESOLUTION
The domestic conflict premium mechanism. Groups that benefit during conflict
may prefer to fight than to win and therefore act as spoilers to peace processes. If, as
argued by Keen (1998) and Collier (2000c), natural resource endowments are associ-
ated more with greed-inspired rebellions, then the fighters in these conflicts may not
have an interest in the success of negotiations. Weinstein (2005), though not directed
to the question of conflict duration, nonetheless adds a new element to such domestic
conflict premium arguments. The nature of the resources available to a group, he
argues, can structure the characteristics of a group’s membership. Groups with natural
resource wealth may be more likely to attract “consumers” that benefit from the
rewards that take place during conflict and less capable of attracting “investors” who
may be driven by benefits that are realized only after successful collective action.
A caveat to these arguments is necessary. To provide the link between the benefits
of war and a conflict’s duration, we need to know not just that individuals benefit in
wartime but that they believe that they benefit more than they would in times of peace
(see, for example, Collier 2000a). The real puzzle is, What prevents parties from
agreeing on a peaceful arrangement that leaves everyone better off? Typical answers to
this question focus on the ability of agents to make credible commitments to each other
to honor agreements made in war time. Another possibility is a feasibility constraint
on negotiators: individuals may do well out of war because they are engaged in illegal
26. More formally, in noncollegial distributive games, the set of equilibrium points—the core—is
generically empty.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 517
activities that they would not be able to undertake during peacetime; if so, compensat-
ing protagonists after a conflict may not be financially feasible for a state that rejects
future trade in these commodities.
This, it seems, is what leads to the special relationship between illegal economic
activities, the illegal drug trade in particular, and protracted conflicts. Over the course
of the Casamance conflict, for example, rebels have increasingly become reliant on
natural resources—notably cannabis, cashew nuts, and timber. Control of these indus-
tries would likely shift in the absence of the conflict and appears to have rendered pro-
ductive negotiations difficult. More generally, groups that get financing from contra-
band fight in longer wars (Fearon 2004). In these instances, unless states are willing to
turn a blind eye to trade in illegal goods by protagonists of conflict, settlements will be
difficult to achieve. In the absence of alternative forms of compensation, peace in such
conflicts then may require victory rather than negotiation.
The international conflict premium mechanism. Insofar as third parties can bring
pressure to bear on the resolution of conflicts, their incentives can help determine the
duration of conflicts. Neighboring states can provide sanctuary for rebel bases within
their borders, and they can provide logistical support to one side or another. They can
also facilitate mediation. Which of these they decide to do may depend again on the
optimal benefits they can expect to achieve during wartime relative to those they could
gain in a negotiated settlement, a feature that can often depend on the resource
endowments of their neighbors.
The experience of Sahelian states is again rich in this regard. The greatest interna-
tional influence on the duration of the Mali conflict was probably that exerted by Alge-
ria. The Mali conflict took place in a region bordering southern Algeria—one home to
Berber populations living in similar conditions to those of Tuareg groups in Mali.
Algeria had security reasons not to want to see the conflict drag on; but it also failed to
gain economically from the conflict. It used its control over supply routes and over
Tuareg exiles and refugees in Algeria to place pressure on the rebels. And as a major
supplier of oil as well as military and economic aid, it placed pressure on Bamako.
Countries neighboring Senegal did not have the same fears of a spread of the conflict,
and neither Guinea-Bissau nor Gambia had strong motivations to bring the conflict to
an end. Indeed, both countries have benefited from the war economy associated with
the conflict—Guinea-Bissau, through the routing of cashew exports through the zone
and by acting as a market to areas more isolated from Senegalese markets; and Gam-
bia, through its involvement with the routing of cannabis and timber exports through
the country (Evans 2002). As a result, not only have the rebels not come under pressure
from these sources, but they have benefited financially and militarily from their
relations with them.
Following Elster (1998), a system with Type B mechanisms is one in which multi-
ple mechanisms may work simultaneously, possibly with opposite effects.28 In such
situations, we may incorrectly infer from a simple correlation that an independent
variable has no effect on a process, even though it has multiple effects, possibly work-
27. Richards (1996) argues that this mechanism was plausibly at work in the Sierra Leone case.
28. Elster (1998) focuses on cases in which effects work in opposite directions. When effects work in
the same direction, there will not be ambiguity about the direction of the net impact of the independent vari-
able, but distinguishing between mechanisms may nonetheless be important if responses to different mecha-
nisms differ.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 519
ing in different directions. The challenge here is to identify the opposing effects.
Should multiple mechanisms work in the same direction, the challenge is to assess the
different contribution of the different mechanisms.
The simplest econometric fixes for such indeterminacy problems arising from Type
B mechanisms use more fine-grained data. Two approaches stand out.
29. The measure used by Fearon and Laitin (2003)—an indicator of whether oil exports constitute at
least a third or all exports—is not tailored to individuate the effect of the two mechanisms described by the
authors.
520 JOURNAL OF CONFLICT RESOLUTION
Again following Elster (1998), assume that there are two possible processes that
link some independent variable x to the outcome variable y, but that for any observa-
tion, only one of these two mechanisms applies In this context, Elster refers to a “Type
A” mechanism problem as one where “the indeterminacy concerns which (if any) of
several causal chains will be triggered.” We can consider two cases, one in which the
process that determines which mechanism will operate is known, and the second in
which it is stochastic or unknown.
In this section, I begin to use the techniques described above to identify or exclude
individual mechanisms that may underlie the basic relation between resource endow-
ments and conflict.
DATA
The family of possible measures that could be used to capture the abstract notion of
natural resource abundance is large. The most common measure that has been used is
the value of primary commodity exports as a share of GDP or of total exports. Alterna-
tives include stocks of natural resources, or measures of sales or stocks of different
types of commodities; and many different normalizations of each type of measure can
also be used.
For some of the mechanisms discussed in the literature, there is a concern that mea-
sures used to identify these mechanisms do not measure what we think they measure.
For example, in motivating their research and interpreting their result, Collier and
Hoeffler focus on resources such as diamonds and drugs. Yet these commodities are
unlikely to be captured by the measure they employ—the share of primary commodity
exports in GDP. Illegal commodities are certainly excluded and diamond flows are
also likely not to figure in official data, at least when states are weak. The Collier and
Hoeffler measure and Fearon and Laitin’s (2003) oil measure also include reexports—
primary commodities that are shipped through the country but not necessarily pro-
duced within the country. Hence, in Collier and Hoeffler’s data, Singapore appears as
one of the most natural-resource-dependent economies, while Sudan and Burma fea-
ture as countries with among the lowest levels of dependence on natural resources.
Such reexports bear no relation to the stories provided by Collier-Hoeffler and Fearon
and Laitin.
Even ignoring these issues, there is a problem that data that has been used is not suf-
ficiently fine to distinguish between those mechanisms for which effects operate
through the impacts of resources on the desires and calculations of a small number of
political actors, as suggested by the greedy rebels mechanism or the feasibility mecha-
nism, and mechanisms that function through deeper economic and social structures
such as suggested by the sparse networks mechanism.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 523
As a first cut at responding to these shortcomings, I collected new data on the arche-
typical lootable resource: diamonds. The diamonds data is taken from the Mining
Annual Review (various years), the Metals and Minerals Annual Review (various
years), and the Diamond Registry (based on U.S. Geological Survey data). The advan-
tage of this measure is, first, that it is more fine grain than export data presently
employed, but second, that the sources do not rely only on export data but also on
information gathered from actors in the industry and information provided by mining
corporations, in particular the sources attempt to provide estimates of total diamond
production, including diamonds that are exported clandestinely. The measures of dia-
monds differ from those used by Lujala, Gleditsch, and Gilmore (2005 [this issue])
insofar as they do not contain either information regarding where in the country the
diamonds are mined or whether they derive from alluvial or kimberlite sources; they
have an advantage, however, in that they record quantities mined and not simply the
existence or number of mining sites.
I then collected a measure of the level of production and proven reserves of oil—a
less lootable resource but one whose benefits are still subject to capture by small num-
ber of actors. The measure of oil production records the average amount of oil
extracted per day in a given year, measured in millions of barrels per day. The oil data is
derived from measures reported in the BP Statistical Review of World Energy/BP Sta-
tistical Review of the World Oil Industry (various years), PennWell Corporation’s Oil
& Gas Journal, the U.S. Department of Energy, the OPEC Bulletin, and Petroleum
Economist. In cases where there are differences in a single source between contempo-
raneously published figures and later figures, I use the latest figures under the assump-
tion that these correct for past reporting errors and may better reflect private informa-
tion at the time. In cases where there are differences between sources, I use a simple
average of the estimates of the multiple sources.33
One important difference between this measure and other measures used in the lit-
erature, such as those used by Fearon and Laitin (2003) and Ross (2003), is that it does
not include oil reexports and so allows us to distinguish between extraction, which
involves large rents, and the more industrial oil processing sector. Unlike the Fearon
and Laitin variable, the measure used here is continuous.
The measure of estimated reserves is recorded in billions of barrels and is some-
what vaguely defined as “the volume of oil remaining in the ground that geological and
engineering information indicate with reasonable certainty to be recoverable from
known reservoirs under existing economic and operating conditions.” The oil reserves
data is derived from the same sources as listed above. The correlation between the pro-
duction and reserves measures is .65 while these two have a correlation with measure
33. After interpolation, if no source reports known reserves, then it assumed that that known reserves
are 0. Problematic cases with known production but no reported reserves include Indonesia (1973-1980),
Nigeria (1971-1980), Russia (1993-1997). Dropping these cases results in a loss of about 5 percent of the
observations in Table 1 but leaves the core results on the difference between the effects of production and the
effects of reserves unaltered; dropping these cases in Table 2 results in loss in observations of more than 20
percent and does alter the results, leaving only reserves significant in model III and both reserves and produc-
tion significant in model VI. The results in Table 4 become stronger when these cases are dropped.
524 JOURNAL OF CONFLICT RESOLUTION
Fearon and Laitin (2003) oil-exporting states dummy variable of .36 and .46,
respectively.
A primary advantage of these oil measures is that they allow us to distinguish
between oil produced in the past and oil still in the ground and, hence, of potential
value in the future. Measured in quantities, conversion factors and published prices
allow for conversion of these measures into values.34 Below, however, I simply use
measures of total production, plus production per capita.
Finally, as a rough measure of economic structures, I use the recorded share of agri-
cultural value added in national income, drawn from the World Bank’s (2003) World
Development Indicators.
34. The data set attached to this article includes an annual index of oil prices along with code to repli-
cate the results of this article using the value of oil production rather than quantities.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 525
TABLE 1
Differential Effects? Africa Sample
(Dependent Variable: FL Measure of Civil War Onset)
NOTE: All the variables reported above were entered with a one-period lag. All equations were estimated us-
ing rare events logit and post-1960 data. Controls in all equations include Fearon and Laitin’s (FL; 2003)
measures of Lag of War, Lag of GDP, Log of Population, Log of Mountainousness, Non-Contiguity, Instabil-
ity, Democracy, Ethnic Fractionalization, Religious Fractionalization. Absolute value of robust z-statistics
shown in parentheses.
*Significant at 10%. **Significant at 5%. ***Significant at 1%.
TABLE 2
Differential Effects? Global Sample
(Dependent Variable: FL Measure of Civil War Onset)
NOTE: All the variables reported above were entered with a one-period lag. All equations were estimated us-
ing rare events logit and post-1960 data. Controls in all equations include Fearon and Laitin’s (FL; 2003)
measures of: Lag of War, Lag of GDP, Log of Population, Log of Mountainousness, Non-Contiguity, Insta-
bility, Democracy, Ethnic Fractionalization, Religious Fractionalization. Absolute value of robust z-statis-
tics shown in parentheses.
*Significant at 10%. **Significant at 5%. ***Significant at 1%.
35. These effects, though strong in this model, are, as in previous work on natural resources, highly sen-
sitive to the sample and the model used. In some of the equations, significance on the coefficients of interest
is lost when a standard logit specification is used rather than a rare events logit specification, and in some
cases, relationships are no longer significant when total resources rather than per capita resources are used.
The data files that accompany this paper also provide results for nonrare events logit and logit fixed effects
specifications. In the nonrare events version, which is subject to bias, much weaker results are found for the
per capita measures, although many of the results for aggregate quantities are not affected. No effects are
identified for either oil or diamonds in fixed-effects specification, indicating that most of the effects are due
to cross-national rather than intertemporal variation. The results are robust to the taking the log of the oil
measures.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 527
We have some evidence then that natural resources relate to conflict through their
impacts on state capacity. In section 4, however, I discussed a somewhat more complex
relationship between resources and state strength, indicating that the degree to which
natural resources have adverse effects depends on prior levels of state strength. In that
discussion, I suggested the use of a simple interaction specification to test the idea that
whether lootable resources lead to conflict will depend on the degree of state strength.
To test this hypothesis, I again use the new measures of oil. And for a more lootable
commodity, I focus again on diamond production. Measuring state strength—or spe-
cifically the strength of institutions that can distribute wealth efficiently—poses
numerous problems. I use three proxies, all of which are imperfect. The first is Fearon
and Laitin’s (2003) measure of political instability—whether a state has undergone a
large change in its political institutions over the past three years. Such changes may,
but need not, indicate weakness of state structures. The second measure is a combina-
tion of Fearon and Laitin’s instability measure and their “anocracy” measure: it takes
the value of 1 if a state is a robust democracy or a robust dictatorship and a 0 otherwise.
The third measure I employ is Evans and Rauch’s (1999) measure, designed to record
the “Weberianness” of state structures. A major drawback of this measure, however, is
that it has no time series component and covers relatively few countries.36 All three
measures are likely to be endogenous to conflict; if conflicts or expected conflicts
weaken state capacity, especially in resource-dependent states, then this will bias us
towards finding a result different from zero.
In Table 3, I report the results of the tests of interactive effects between the three nat-
ural resource measures and the three state strength measures. In general, I find that
while (with the exception of the Weberianness measure), the state strength measures
and the natural resources measures typically enter significantly and with the expected
sign, the interaction term typically fails to enter significantly. The exception is for the
case of oil production; here I find weak evidence that oil production has especially
adverse effects in weak states. The coefficients in equations I and II indicate that past
oil production has an adverse effect on all polities but that this effect is augmented for
weak states. The coefficients in equation III indicate that for this measure of state
strength, past oil production is associated with higher risks of conflicts in weak
states but may in fact be associated with lower risks in strong states. This effect cap-
tures the Snyder-Smith thesis quite well. It is only however observed for the case of
oil production—and, notably, is not found for the case of diamonds production—and
in all cases the estimated coefficients in the interaction terms attain significance only at
the 90 percent level.37
36. As this measure is time-invariant, I employed it in both a cross-section and as a fixed effect in a
panel.
37. These results are in general weaker when total measures rather than per capita measures are used.
The exception is that in this case, one of the interactive terms on diamonds enters significantly, but this again
appears to be a fragile result.
528
TABLE 3
The Political Economy of Extraction:
Global Sample (Dependent Variable: FL Measure of War Onset)
Natural resources 2.415 8.537 –89.911 0.336 0.956 1.603 1.11 0.937 3,204.00
(3.94)*** (3.36)*** (1.70)* (5.67)*** (1.25) (0.16) (4.27)*** (3.19)*** (.)
Strength/weakness 0.595 –0.466 –0.056 0.646 –0.51 –0.051 0.618 –0.517 –0.047
(2.39)** (1.67)* (0.72) (2.57)** (1.80)* (0.66) (2.49)** (1.85)* (0.55)
Interaction term 10.978 –5.313 18.572 0.974 –0.588 1.368 –0.004 0.543 –800.649
(1.82)* (1.93)* (1.93)* (0.43) (0.76) (1.24) (0.01) (1.27) (.)
Observations 5,170 5,167 1,339 5,170 5,167 1,339 5,170 5,167 1,339
NOTE: All the variables reported above were entered with a one-period lag. All equations were estimated using rare events logit and post-1960 data. Controls in all equations
include Fearon and Laitin’s (2003) measures of Lag of War, Lag of GDP, Log of Population, Log of Mountainousness, Non-Contiguity, Instability, Democracy, Ethnic
Fractionalization, Religious Fractionalization. Absolute value of z-statistics reported in parentheses. Note that approximately 25 percent of observations are lost due to miss-
ing data when reserves are added.
a. Computational problems encountered in estimating equation IX.
b. “Strong” is given by (1 – Instability) ´ (1 – Anocracy).
*Significant at 10%. **Significant at 5%. ***Significant at 1%.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 529
To help distinguish between some of the rival mechanisms that may link natural
resources and conflict duration, I construct a simple duration model like that described
in section 4.
The duration model uses data from the Fearon and Laitin data set to construct a
binary variable indicating whether, conditional upon the existence of a conflict, the
conflict ends in a given year. Data based on Barbara Walter’s conflict termination data
set and qualitative sources was then used to split this dichotomous measure into a
three-way variable that takes the value 0 if a conflict is ongoing in a given year, 1 if a
conflict is resolved through military means, and 2 if a conflict is resolved through a
negotiated settlement. Further information on these variables can be found in Walter
(1997, 2002) and Fearon and Laitin (2003).38 The method employed to relate different
measures of natural resources to this outcome variable is multinomial logit.39
As explanatory variables, I introduce a series of controls alongside the measures of
diamond production and oil production and reserves. The effects of each of the
resource measures on duration are a priori ambiguous. Introducing the diamond mea-
sure is intended to help distinguish between the fragmented organizational structures
mechanism and the domestic conflict premium mechanism, which can have opposite
implications for duration depending on whether a victory or a negotiations channel is
pursued. Introducing the oil measure, meanwhile, is intended to help distinguish
between the military capability mechanism and the possibility of pork mechanism, in
particular to help determine whether desires to capture oil revenues are more likely to
encourage compromise at the negotiation table or one-sided support on the battlefield.
Hence, the model allows us to parse some of the duration mechanisms discussed
above. Insofar as it focuses only on “internal” factors, the model is incomplete and a
caveat is in order: since external factors are likely to be correlated with the natural
resource measures employed in this model, their exclusion may induce omitted vari-
able bias. There are also potential endogeneity problems—the data suggest, for exam-
ple, that oil production typically rises over the course of a conflict—and reserves
fall—whereas diamonds production falls during the course of a conflict.
With these caveats in mind, we turn to the results of the model in Table 4. The model
suggests that natural resources are associated with shorter conflicts—this is supported
both for the oil measures and for diamond production. This finding is counterintuitive
because there are a number of well-known long conflicts in countries rich in natural
resource—notably Sudan, Columbia, and Angola. It also runs contrary to many
38. In cases where these sources disagreed, Fearon and Laitin (2003) codings were generally employed
after consultation with other sources. In some instances, the differences in dates implied different types of
terminations from those recorded by Walter (1997). For example, where Walter records a successful settle-
ment in Lebanon in 1976, I record the war as ending with a military victory in 1990; whereas Walter records
the war in Tajikistan as ending in 1994 without a settlement, I record it as ending in 1997 with a settlement. In
cases where conflict in the Fearon and Laitin data set were not in Walter, secondary sources were used to
determine the form of termination, using Walter’s coding rules.
39. See Beck, Katz, and Tucker (1998) on the relation between logit models and duration models.
530
TABLE 4
Conflict Duration Model with Victory and Negotiation Channels
NOTE: Regression also includes three cubic splines (produced using Beck, Katz, and Tucker’s [1998] methodology). For all multinomial logit models, application of the
Hausman test suggests that we cannot reject the null that the independence of irrelevant alternatives (IIA) hypothesis is indeed satisfied. The Small-Hsiao test (but not the
Hausman test) suggests that the IIA assumption is violated for the diamonds model (and that the probability of negotiation success, relative to no termination, depends on the
probability of military victory). The Small-Hsiao, like the Hausman test, does not reject the null of IIA for either of the oil models.
*Significant at 10%. **Significant at 5%. ***Significant at 1%.
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 531
hypotheses and claims in the literature.40 Despite the well-known cases of long wars, a
larger range of other cases make the general relationship, controlling for other factors.
In particular, there are many cases of long wars in countries that have little or no oil or
diamonds: in the data set, these include the conflicts in Afghanistan, Sri Lanka, Ethio-
pia, Mozambique, and Somalia, which all lasted for more than fifteen years. And there
are also many cases of short wars in countries that do have these resources; these
include the Biafran war in Nigeria, the Shaba insurgencies in Zaire (1978), the
Kurdish/Shiite revolts in Iraq (1991), and conflicts in Azerbaijan (1992-1994), Geor-
gia (1992-1994), Croatia (1995), Central African Republic (1996-1997), and Yemen
(1994).
Let us turn now to the mechanisms. In equations 2 and 3 (and similarly, equations 5
and 6, and 8 and 9) of Table 4, conflict termination is disaggregated into settlements
and victories. Strikingly, we see that for both oil and diamond production,
disaggregating the paths to peace suggests that natural resource abundance is associ-
ated with easier military victories. But in neither case is there evidence that natural
resources facilitate or obstruct negotiated settlements. This provides clues as to why
natural resource conflicts may be shorter.
Consider first the organizational structures mechanism and the results on dia-
monds. If revenues from diamond sales are more likely to benefit rebels than govern-
ments, and should they lead to more fragmented rebel organizational structures, then,
as suggested above, there are two opposite implications that this may have for conflict
duration: it may make military victory over rebels easier but negotiated settlements
more difficult. The evidence in Table 4 suggests that the first channel may be salient
but provides no support to the second channel. Instances of military victories in dia-
mond-rich countries include the relatively short Zairian conflicts ending in 1965 and
1978. Although there were multiple attempts at negotiation in Sierra Leone in Angola,
those conflicts also ended with the military defeat of the rebel groups and the disinte-
gration of their organizational structures. The result provides evidence against the con-
flict premium mechanism: If combatants in diamond-rich areas are primarily con-
cerned with accumulating wealth during wartime, then we should expect little success
of negotiations. The fact that diamond production is not associated with lower chances
of success for negotiations is then inconsistent with this argument.41
The results on oil in equations IV through IX of Table 4 suggest that although oil
conflicts end quickly, this is not due to their benign influence on negotiations: we find
no evidence in support of the possibility of pork mechanism.42 In the case of oil pro-
duction, we find some evidence that oil conflicts are associated with faster military
victories; this is consistent with the discussion of the military balances mechanism
40. Ross (2004b), for example, suggests that commodities that are lootable (such as diamonds) and
commodities that are obstructable (such as oil) should both lead to longer wars. Bannon and Collier (2003)
note that conflicts are likely to make countries even more dependent on natural resources and thereby make
conflicts more difficult to resolve.
41. A stronger test of the conflict premium mechanism would, however, require the use of information
on contraband.
42. The effects are qualitatively similar when per capita data is used for both production and reserves—
the oil measures are positively related to victory and negatively related to negotiation, while the diamond
measures are positively related with both—however, the estimated relations are generally weaker.
532 JOURNAL OF CONFLICT RESOLUTION
TABLE 5
Descriptions and Summary Statistics for Key Variables Used in the Analysis
War Onset Binary: Did a civil war begin this year? 0.02 0 1 Fearon and
Laitin (FL; 2003)
War Ongoing? Binary: Is there a war ongoing this year? 0.15 0 1 FL
Log of Population Quantity (logged) 9.05 5.40 14.03 FL
GDP PPP Thousand Dollars 3.96 0.13 66.74 FL
Polity Index Index –0.58 –10 10 FL
Mountainousness Log of the percentage of mountainous 2.11 0 4.56 FL
terrain
Noncontiguous Binary 0.16 0 1 FL
Ethnolinguistic Index 0.40 0.00 0.93 FL (Russian
Fragmentation Measure)
Religious Index 0.38 0 0.78 FL
Fractionalization
Instability Binary: Has the countries score on the 0.15 0 1 FL
Polity democracy scales shifted in the
past three years?
New State? Binary: Is the state no more than two 0.03 0 1 FL
years old?
Anocracy Binary: Is the state neither a full 0.20 0 1 FL
democracy nor a full dictatorship?
Africa Dummy Binary: Is state an African state? 0.28 0 1 FL
Oil Production Millions of barrels per day 0.29 0 12.28 See text
Oil Production/ Barrels per person per day 0.05 0 5.14 Constructed
Per Capita
Oil Reserves Billion barrels 3.45 0 263.5 See text
Oil Reserves/ Thousand barrels per person 0.88 0 176.97 Constructed
Per Capita
Diamonds Million metric carats 0.37 0 43.80 See text
production
Diamond Carats per person 0.07 0 13.31 Constructed
Production/
Per Capita
Agricultural Percentage: Value of Agricultural 22.30 0.14 78.02 World Bank
Production as Production in GDP (2003)
a Share of GDP
State strength Binary = (1 – Instability) ´ 0.73 0 1 Constructed
(1 – Anocracy)
Weberianess Scale: How Weberian is the state 7.10 1 13.5 Evans and Rauch
bureaucracy? (1999)
Conflict 0 = conflict continued, 1 = conflict 0.10 0 2 Constructed from
Termination ended in victory for one side, 2 = FL and Walter
“Disaggregated conflict ended through negotiations (1997, 2002)
Measure” data
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 533
above. There, we noted that the implications of natural resource wealth for the ability
of one side to defeat the other are indeterminate without finer information on military
balances and control over resources. However, in cases where benefits accrue only
after the end of the war, we expect a relationship between conflict duration and the
incentives to provide military support to one side or the other: in these cases, outsiders
invest if they expect conflicts to be short, and they invest so as to make them short.
A review of the cases suggests that international action was indeed important and
likely led to rapid termination of many of these oil conflicts, although this support was
not always and everywhere in support of governments. Military victory came rela-
tively quickly, for example, for the government of Nigeria in the Biafran war; in this
case, even though France had interests in supporting the breakaway state, massive sup-
port by the British for the sovereign state of Nigeria gave the government the resources
needed for military victory. However, governments were often on the losing side, and
even when they were successful, the role of international actors was often ambiguous.
Gulf states, for example, were divided over how to respond to the war in Yemen in
1994, with some providing support for the secessionist south and others supporting the
north.43 Strikingly, the north’s ability to benefit from its sovereign status was ham-
pered: UN Security Council Resolution 931 prevented arms from flowing to either
side. Meanwhile, during the war, one company, CanadianOxy, that continued to pump
oil, placed the government’s share of the oil funds in an escrow account, only paid out
after the end of the conflict.44
6. CONCLUSIONS
better indicators of the role of foreign interests in domestic oil production; and
measures of the relative strengths of rival forces in a conflict.
In closing, I turn to the policy implications of this work. The importance of focus-
ing on mechanisms for the study of civil wars is not simply that explanations with finer
grain are intrinsically more satisfactory to the mind. It derives also from the fact that
public policy responses require stories about who is doing what and why. Different
stories underlying a single correlation have different implications. Given the caveats
above, the following are among the implications of the results from the work presented
here.
First, countries dependent on agricultural commodities are at risk, independent of
their endowments of oil and diamonds. Sierra Leone was vulnerable not simply
because it had gems but because it had not gone through a process of industrialization
and held within it clusters of rural communities with relatively weak commercial ties
between them. In identifying at-risk countries and in engaging in conflict prevention
alongside initiatives to clean up particular commodity trades, there is a need to pursue
strategies of diversification more aggressively, directed at bringing countries outside
of dependence on primary commodities more broadly defined.
Second, this research finds stronger support for the weak state structures and griev-
ance hypotheses than for the booty futures or state capture hypotheses. This, coupled
with the somewhat weaker result that natural resources have especially adverse effects
in countries that already have weak states, suggests a redirection of policy priorities.
Policy priorities from previous research have focused on protecting assets from cap-
ture and cutting off rebel financing. While these initiatives are important, the analysis
in this article indicates that greater gains could be achieved by focusing more on better
management of the extraction process and better usage of resource revenues that are
controlled by states. This result, consistent with a now vast literature on the resource
curse (see, for example, Karl 1997), suggests a series of policy responses.
One, to limit grievances induced as part of extraction, is to better regulate the
actions of extractive industries. This could be done by requiring corporate compliance
with protocols such as the United Nations draft “Norms on the Responsibilities of
Transnational Corporations and Other Business Enterprises with Regard to Human
Rights” or by corporate participation in voluntary mechanisms such the Global Com-
pact; and it can be supported by resource rich states participating in initiatives such as
the Extractive Industries Transparency Initiative.
Another is to focus on tackling the ways in which natural resource revenues weaken
state structures or induce grievances. This can be done by better management of
intertemporal revenue paths, through the establishment or permanent funds and stabi-
lization funds and rules that place caps on annual government expenditure, as, for
example, is provided for under Sao Tome and Principe’s oil revenue management law
(2004). Another way to achieve this is to prededicate resource revenues to social
development, as done in the Chad revenue management law. Governments can also
reduce the grievances associated with natural resources by providing better public
information about how and where revenues are earned and spent and allowing for
oversight of these expenditures by civil society groups. The 2004 Sao Tome oil reve-
nue management law emphasizes these principles and guarantees a role to parliamen-
Humphreys / NATURAL RESOURCES, CONFLICT, AND CONFLICT RESOLUTION 535
tary oppositions in overseeing the expenditure of oil monies; the Chadian law, how-
ever, has comparatively weak provisions for public access to information. A more
radical possibility is to rid the government of natural resource revenues outright—by
distributing all revenues directly to citizens—as suggested recently for Nigeria by
Sala-i-Martin and Subramanian (2003). This has the advantage that private citizens
may spend these revenues better than their governments do and that governments may
start trying to satisfy constituencies and building capacity to raise revenues, rather than
relying on rents.
Third, this research has found evidence that natural resource conflicts are more
likely to end quickly and are more likely to end with military victory for one side rather
than with a negotiated settlement. One likely reason is that in the presence of lootable
resources, rebel structures are weaker and the groups more vulnerable to defeat. Evi-
dence from survey research suggests, for example, that regular fighters in Sierra
Leone’s RUF had little loyalty to the movement and would have been ready to drop
arms well before Britain finally moved in.45 Another reason is that once conflicts begin
in areas with resources whose benefits accrue only after conflicts end, external actors
with interests in those sectors have incentives to support one side or the other with a
view to bringing the war to a rapid close. These results suggest reasons to support one-
sided military interventions in resource conflicts. But they also provide a reminder that
whatever the interests of the citizens of the countries involved, outside actors are prone
to one-sided engagement in natural resource conflicts, directly or indirectly, and
sometimes inducing regime change and producing deadly effects. Both of these fac-
tors—the opportunity for engagement in resource wars and the existence of incentives
for individual nations to engage in resource wars unilaterally—imply that the policy
debate should focus more urgently on establishing workable criteria for determining
what regimes should be supported and when external strategies of regime change
should be pursued.
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