Conflict Potencies in Extractive Industries
Extractive activities represent tremendous possibility for local and national economic growth. This possibility is particularly profound when one considers that the majority of future mineral, oil, and gas reserves are located in developing countries – and often in the most remote and poor areas of these countries. But in other cases possibility the potential conflict is in place.
Kofi Annan said companies in the extractive industries are on the front lines. Time and again in recent years, the exploitation of natural resources such as oil, timber and diamonds has fueled conflict and generated corruption, exacting a heavy toll in lives and undermining faith in public administration (Kofi Annan, United Nations Secretary General) (2005).
Therefore we need an understanding of mitigation to the potential conflict from the beginning and use the tools that will be used for the analysis and resolution. Above. it is a simple matrix chart about potential conflicts faced, mitigation and tools used.