Oil and Water in Sudan 22 1
streams emerging from resource extraction, which can be used to finance
repressive state institutions and to maintain patrimonial networks. Wealth
earned through the production of natural resources can be channelled from
state coffers to private bank accounts through corrupt government officials.
In spite of its oil wealth, for instance, Saudi Arabia's domestic debt exceeds
its GDP. Nigeria made US$300 billion in oil revenues during the last 25 years,
but 60% of its people live on less than USS2 a day.62
Finally, armed groups may seek to generate revenue or accumulate per-
sonal wealth through the production and export of natural resources, and
through extortion of 'protection' funds from companies in the region. A
World Bank study claims that in many cases, "rebellions either have the
objective of natural resource predation, or are critically dependent on natu-
ral resource predation in order to pursue other objective^."^^
Civil war in Sierra Leone was sustained by its readily accessible diamonds,
which rebel groups sold to international brokers to finance arms purchases.
Likewise, in the Democratic Republic of Congo, the conflict is now driven by
open competition for minerals and other easily looted resources. As a special
assessment mission of the United Nations reported to the Security Council in
- "the conflict in the Democratic Republic of Congo has become mainly
about access, control and trade of five key mineral resources ... Business has
superseded security concerns. The only loser in this huge business venture is
the Congolese pe~ple."~
In summary, oil production can reduce the likelihood of conflict through
economic development that is evenly distributed between different social and
economic groups. On the other hand, oil production may contribute to con-
flict by generating the inequitable distribution of benefits, as well as cause
adverse social and ecological impacts. Moreover, it may provide a source of
funds to sustain repressive state institutions, fuel official corruption, or sus-
tain armed opposition.
The diagram on the next page presents the hypothesis guiding this case
study. The hypothesis holds that the discovery of oil in southern Sudan has
greatly intensified the northern effort - both politically and militarily - to
appropriate and control the region for expanded production of oil, while mar-
ginalising the area's traditional inhabitants. The remainder of this chapter
will seek to support these alleged links.
The chain of causation is believed to hold the following sequence: First,
discovery of oil leads to a government attempt to appropriate oil-bearing
lands. Second, efforts to appropriate land from groups without giving them a
voice in the decision-making process and without what they perceive to be
equitable compensation leads to rising social tensions and outbreaks of rebel
activity. This rise in social tensions is compounded by the environmental
consequences of oil production that degrade the natural environment which
sustains subsistence-based livelihoods. Finally, oil revenues finance the
