Columbia International Affairs Online: Policy Briefs

CIAO DATE: 10/2008

Resources For Peace? Managing Revenues from Extractive Industries in Post-Conflict Environments

Philippe Le Billon

February 2008

Center on International Cooperation

Abstract

Revenues from extractive sectors play an important role in many post-conflict environments. Oil and gas, minerals, and logging often provide more than 30% of state fiscal receipts.When managed well, these revenues can help to finance postwar reconstruction and other vital peace-related needs. When mismanaged, however, resource revenues can undermine both economic performance and the quality of governance, thereby heightening the risk of renewed violence. Managing revenues from extractive industries is a crucial challenge for peacebuilding. This paper offers seven proposals that address this challenge.