Briefing Paper - Negotiating Natural Resources for Peace: Ownership, Control and Wealth-Sharing

Given the importance of natural resources and their potential to generate conflict, this paper presents a conceptual framework for natural resource negotiations within a single, all encompassing event (like constitution-making processes). Part 2 of the paper examines the importance of using the constitutional framework for dealing with natural resources. Parts 3-5 sets out some of the substantive issues to be dealt with regarding constitutionalizing natural resources. Part 3 looks at the ownership of natural resources, part 4 then deals with the allocation of control over natural resources, and part 5 of the report deals with the treatment of natural resources revenue. These parts take on the same structure in each section: they provide general comments on the issue, describe the constitutional practice with respect to the issue, and describe how federations and/or states with autonomous regions deal with the issue. Finally, each section includes a table setting out examples from around the world. Part 6 then provides insight into some considerations for the negotiation process, including among other things: when to address natural resources in the constitution-making process, and in what detail, as well as who should be at the table, and in what capacity. Part 7 of the report offers concluding remarks highlighting the importance of a legal framework to deal with such an complex and emotionally charged issue. The paper appends at the end case studies for Sudan, Indonesia, and Iraq.