Durbin, Feingold Hold Hearing on Ectractive INdustry Conduct Around Globe

Press Release

DURBIN, FEINGOLD HOLD HEARINGS ON EXTRACTIVE INDUSTRY CONDUCT AROUND THE GLOBE
Hearings Examine Human Rights, Corruption and Global Conflict

United States Senators Dick Durbin (D-IL) and Russ Feingold (D-WI) held separate hearings today examining industries that extract natural resources and the related problems of violence and conflict. Durbin's hearing, "Extracting Natural Resources: Corporate Responsibility and the Rule of Law," focused on holding U.S. corporations accountable for human rights violations associated with their extraction of natural resources around the world. Feingold's hearing, "Resource Curse or Blessing? Africa's Management of its Extractive Industries," explored how the exploitation of Africa's natural resources has led to regional instability throughout the continent.

"When US-based oil and mining companies are complicit in human right abuses and environmental degradation, they should be held accountable," Durbin said. "America's reputation and relationships with the world will suffer when these companies ignore the basics of civilized conduct."

"Africa's abundance of natural resources holds great economic potential and the promise of pulling many people out of poverty. Yet, we have unfortunately seen the opposite - aptly described by the phrase ‘resource curse' - as competition for control of these resources has more often fuelled corruption and inequality than growth and development. Even worse, that competition has frequently devolved into conflict. Unfortunately, we have not seen the high-level leadership and inter-agency coordination we need to implement coherent and comprehensive strategies in Africa. As our sights turn to the next Administration and a new Congress, this will need to change to help reverse the stubborn ‘resource curse' in Africa," Feingold said.

American oil, gas and mining companies operate throughout the world, often in countries with corrupt central governments and poor human rights records. While Americans struggle with the high price of oil, scant attention is paid to suffering at the other end of the supply line - human rights abuses perpetrated by security forces protecting oil and mining facilities in countries like Burma and Indonesia; or the violent conflicts between corporate security squads and communities seeking fair compensation in countries like Peru and Ghana.

Durbin said Nigeria, the fourth largest oil supplier to the United States, is a prime example of these types of problems. Nigeria ranks among the most corrupt nations in the world and senior officials have been implicated in human rights abuses and the theft of oil revenues. Despite generating billions of dollars in oil revenues each year, the Niger Delta is the poorest region in the country. Nnimmo Bassey, Executive Director of Environmental Rights Action/Friends of the Earth Nigeria and a witness at today's Human Rights and the Law Subcommittee hearing, testified about how human rights violations, extreme poverty and environmental destruction have fueled tensions between local communities and oil companies in the Niger Delta for decades.

Durbin's hearing, held in the Judiciary Subcommittee on Human Rights and the Law, looked at the legal responsibilities of extractive companies to protect human rights; voluntary industry standards for preventing human rights abuses; and whether Congress needs to consider additional legislation to address to ensure that all extractive industries protect human rights.

Other witnesses at Durbin's hearing included Jeff Krilla, Deputy Assistant Secretary of State for Democracy, Human Rights and Labor; Bennett Freeman, Senior Vice President for Social Research and Policy at Calvert; and Arvind Ganesan, Director for Business and Human Rights at Human Rights Watch. Finally, Ka Hsaw Wa, Co-Founder and Executive Director of EarthRights International, delivered first hand testimony on the impact of the extractive industry in Burma.

Resource Curse of Blessing? Africa's Management of its Extractive Industries

Feingold's hearing in the Foreign Relations African Affairs Subcommittee focused on the how competition for control of Africa's natural resources has often fuelled corruption and violent conflict. A decade ago, the diamond trade became intertwined with war in Angola, Liberia and Sierra Leone. In 2000, the Kimberley Process was launched leading to international cooperation to combat conflict diamonds. While not completely eliminating the problem, the Kimberley Process has been largely successful. However, the model has not been duplicated for other resources like copper, gold or timber and the mismanagement and exploitation of these and other resources continues to undermine stability in African countries including Nigeria, Cote D'Ivoire, and the Democratic Republic of Congo. The lack of mechanisms to regulate or at least scrutinize the trade of these resources has handicapped American diplomatic and humanitarian efforts throughout the continent.

Feingold's hearing examined how the U.S. and International Financial Institutions are working to address these challenges and what more needs to be done to ensure transparency and accountability in Africa's extractive industries. During the hearing, the Subcommittee heard from Paul Collier, a former World Bank Official and expert on African economies, as well as Todd Moss from the Department of State, David Goldwyn, President of Goldwyn International Strategies, and Simon Taylor, Director of Global Witness.

Feingold's complete statement is available at: http://feingold.senate.gov/~feingold/statements/08/09/20080924.htm

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