| "Sustainable Development" is a worn out | | | | Italian and French counterparts). Activists in the |
| cliché - but not where itmatters the most: in | | | | Niger Delta oftenresort to kidnapping, smashing oil |
| developing countries. There,unconstrained | | | | installations, and even attackingoff-shore rigs. |
| "development" has led to inter-ethnic | | | | Security guards are a necessity, not a luxury. |
| strife,environmental doom, and economic | | | | Shell alone has poured $200 million into the local |
| mayhem. In the post Cold War era,central | | | | economy,administered by its "development |
| governments have lost clout and authority to | | | | teams" in collaboration withrecipient communities. |
| theirprovincial and regional counterparts, whether | | | | "The Economist" reports that less than athird of |
| peacefully (devolutionin many European and Latin | | | | the 408 projects have been a success. |
| American countries) - or less so (in | | | | Micro-credit schemesrun by women did best. |
| Africa, for instance). As power shifts to | | | | Some of the projects were the outcome |
| municipalities andregional administrations, they | | | | ofextortion by kidnappers - others dreamt up in |
| begin to examine development projectsmore | | | | corporate headquarterswith little regard to local |
| closely, prioritize them, and properly assess their | | | | circumstances. But Shell is reallytrying hard. |
| opportunitycosts. The multinationals, which hitherto | | | | The Nigerian government has asked the Supreme |
| enjoyed a free hand inlarge swathes of the third | | | | Court in 2001 to rulehow should off-shore oil |
| world, are unhappy. | | | | revenues be divided between the |
| The outcome of this tectonic shift is a series of | | | | federalauthorities and the 36 states (only 6 of |
| unrequitedconflicts from Indonesia to Morocco. | | | | which, in the southeast,produce oil). The 1999 |
| The former is now a federationof 32 provinces, | | | | constitution calls for 13% of all onshore |
| each with its own (often contradictory) | | | | oilrevenues to be allotted to the states. But it is |
| laws,taxes, and licenses. They tend to ignore | | | | mum about offshoreoil (the bulk of Nigeria's |
| promises made by thecentral government - and | | | | production). At the time, northern stateshave |
| the central government tends to live andlet live. | | | | threatened to withhold agricultural produce from |
| Some multinationals are in denial. They confront | | | | the southshould the Supreme Court plump in |
| the localauthorities and the authorities, in turn, | | | | favor of the oil producing states. |
| legislate to prevent themfrom doing business (as | | | | Justice, in this case, may well provoke the |
| in the case of Cemex, the Mexican | | | | disintegration of |
| cementcompany, described in "The Economist"). | | | | Nigeria. |
| Others adapt, collaboratewith the locals, establish | | | | B. Morocco |
| foundations and endowments, invest inlocal | | | | The ubiquitous Kofi Annan, Secretary General of |
| infrastructure and in preserving the environment. | | | | the UN, decided, inmid February 2002, the fate of |
| Mostcrucially, bribes that once went exclusively to | | | | oil exploration off the disputedcoast of Western |
| Jakarta-basedofficials, are now split with local | | | | Sahara. A US chemicals and oil exploration firm |
| politicians. | | | | (Kerr-McGee), in conjunction with the French |
| But sometimes the consequences are more | | | | Total-FinaElf, havesigned much derided |
| serious than thereallocation of backhanders. When | | | | reconnaissance agreements, pertaining to |
| a corrupt central governmentcolludes with | | | | thedisputed region, with Morocco in October 2001. |
| multinationals against the indigenous population of | | | | Morocco has occupied West Sahara since 1975. It |
| anexploited region - all hell breaks loose. | | | | has moved hundredsof thousands of troops and |
| Consider Nigeria and Morocco. | | | | civilians to the area in an effort todilute the |
| A. Nigeria | | | | remaining autochthonous population. A fortified wall |
| Nigeria is an explosive cocktail of more than 250 | | | | wasconstructed along the entire border and it |
| nations andlanguages with different (and often | | | | was mined. Moroccopersistently obstructs the |
| hostile) histories, cultures,enmities, and alliances. It | | | | implementation of a referendum |
| is decrepit. Its people are destituteand | | | | aboutindependence it agreed to with the Polisario |
| unemployed, the crime rate is ghastly, the army | | | | in 1991. The originalinhabitants of this region, the |
| and police aremurderous (as are numerous civilian | | | | Sahrawis, have set up a governmentin exile in a |
| "vigilante" groups), theauthorities powerless, | | | | tent city in Algeria. The Polisario, the |
| corruption rampant, famines frequent. Most ofits | | | | Sahrawisfreedom movement, is weakened by |
| oil (its only important export) is produced in the | | | | decades of warfare and diplomaticfailure. The |
| Niger Delta,home to the Ogoni and Ijaw ethnic | | | | Sahrawi self-styled "president" wrote to UN |
| minorities. The Ijaw are alsoactively suppressed | | | | envoy, |
| (and massacred) in Bayelsa state. | | | | James Baker III, and to President Bush, to warn |
| When the Ogoni protested against the | | | | them of theconsequences of this "provocation". |
| environmental ruination wroughtby oil drilling - nine | | | | The Sahrawis also demanded fromthe EU to |
| of them were hanged in 1995. But thisbrutality did | | | | cancel the "illicit and illegal" contract between Total- |
| little to quell their complaints, including the factthat | | | | FinaElf and Morocco. |
| almost none of the $7-10 billion in annual oil | | | | The reconnaissance agreements are part of a |
| proceeds was re- invested in the region's | | | | concerted Moroccanpolicy to relieve the country |
| economy. This largely economic conflict | | | | of its wrenching dependence on oilimports. |
| (brewing since 1993) has now, inevitably, become | | | | Morocco's annual oil bill is close to $1 billion. Late |
| inter-ethnic andinter-religious. It is now an integral | | | | King |
| part of the national politicsof a Nigeria fracturing | | | | Mohammed VI himself was behind this strategic |
| along ethnic and religious (Christian | | | | move. In August 2001,on his birthday, he |
| vs.fundamentalist Islamist) fault lines. | | | | announced a major discovery (since discredited)in |
| Multinational oil firms in Nigeria have a strong | | | | Talsint, 100 km. (60 miles) from the Algerian |
| interest tomaintain a functioning political center, | | | | border (he calledit "God's gift to Morocco"). More |
| with law, order, and arespected, multi-ethnic police | | | | than 10 exploration licenses havebeen granted in |
| force. Yet, in their efforts tostabilize Nigeria, they | | | | 2001 alone - 25% of the total. The law has |
| shot themselves in both feet, repeatedly. | | | | beenmodified to allow for a 10-year tax break |
| All previous regimes in Nigeria - civilian and military | | | | and to limit thegovernment's stake in new oil |
| - enjoyedthe tacit support (diplomatic and financial) | | | | ventures to 25%. |
| of the big oilmultinationals, among them Agip, | | | | But major finds are the exception in an otherwise |
| Mobil, Chevron, Royal Dutch/Shell,and Elf Aquitaine | | | | disappointingquest which dates back to 1920. Spain |
| (now Total-FinaElf). The oil companies maintaintheir | | | | and Morocco both claim thewaters opposite |
| own armies ("security") - including helicopters and | | | | Morocco's coast. The Moroccan government |
| heavyarmor. They rarely openly intervene in local | | | | exchangedverbal blows with its Spanish |
| protests and conflicts. | | | | counterpart after it grantedprospecting licenses to |
| But their pronounced silence in the face of | | | | a Spanish firm opposite the Moroccan coast. |
| numerous massacres,unlawful detentions, | | | | As opposed to Morocco, Western Sahara is |
| murders, beatings, and other human rightsabuses | | | | estimated to contain whatthe US Geological |
| by the very army and police with whom they | | | | Survey of World Energy calls substantial gas andoil |
| often share theirequipment and manpower, | | | | fields. "Upstream" reports that previous attempts |
| forced Human Rights Watch to issue thisunusual | | | | to find oil,in the 1960's, in collaboration with |
| statement: "Multinational oil companies are complicit | | | | Franco's Spanish government,floundered. Gulf Oil, |
| inabuses committed by the Nigerian military and | | | | WB Grace, Texaco, and Standard Oil withdrew |
| police." Oilmultinationals are also a major source of | | | | aspolitical tensions increased. Other, lesser, |
| corruption in Nigeria. | | | | American firmsdeveloped tiny fields there. Later, |
| Moreover, many observers conclude that the | | | | in the late 70's both Shell and |
| multinationals' claims tohave bettered their ways | | | | British Petroleum abandoned exploration, having |
| by applying adequate environmentalprotection | | | | reached theconclusion that extraction is justified |
| (against frequent oil spills and dumping of | | | | only if oil prices climb to |
| industrialwaste), improving public health, observing | | | | $40 a barrel. |
| human rights standards,and developing better | | | | The Sahrawis quote a UN resolution (A/res/46 |
| relations with affected communities - arenothing | | | | 64 dated December 11, |
| but elaborate spin doctoring. | | | | 1991) which says that "the exploitation and |
| The creation of the dysfunctional "Niger Delta | | | | plundering of colonialand non-self-governing |
| Development | | | | territories by foreign economic interests, inviolation |
| Commission" by the government in 2000 only | | | | of the relevant resolutions of the United Nations is |
| enhanced this perception. | | | | agrave threat to the integrity and prosperity of |
| Armed guards, employed by oil companies, | | | | those Territories." |
| continue to wound, or killyoung protesters. NGOs | | | | Thus, once again, oil companies find themselves |
| impotently complained to the World Bank | | | | supporting anoppressive and brutal (but ostensibly |
| aboutthe decision of its arm, the International | | | | "stable") regime against localcommunities with |
| Finance Corporation | | | | political and ethnic grievances. It seems to be |
| (IFC), to establish the Niger Delta Contractor | | | | apattern. Oil companies cosied up to homicidal |
| Revolving Credit | | | | dictators in Burma, |
| Facility in conjunction with Shell. The IFC did not | | | | East Timor, Iran, Iraq and Nigeria, to mention but |
| bother to talkto a single local community about a | | | | a few. As most |
| scheme, which is supposed toprovide Nigerian | | | | Sahrawis are now in refugee camps in Algeria, |
| sub-contractors of Shell with credit intended | | | | they are unlikely tobenefit from any potential find. |
| torelieve poverty. Shell, of course, is utterly | | | | Future oil revenues are likely tobuttress Moroccan |
| distrusted by thedenizens of the Delta. | | | | rule and enrich members of the Moroccan elite. |
| "Essential Action and Global Exchange" has issued | | | | The |
| a seminal reporttitled "Oil for Nothing - Multinational | | | | (undisputedly Moroccan) Talsint concession is |
| Corporations, Environmental | | | | co-owned, according tothe BBC, by relatives of |
| Destruction, Death and Impunity in the Niger | | | | the King and the chief of police. |
| Delta" (January 2000). | | | | The politically incorrect Operations Manager of |
| They describe gas flaring, acid rain, pipeline leaks, | | | | Lone Star, the joint |
| healthproblems, loss of biodiversity, loss of land | | | | American-Moroccan Talsint exploration company, |
| and other resources,malnourishment, prostitution, | | | | was quoted by the BBCas wondering (about the |
| rape, and fatherless children. Oilcompanies, says | | | | internally displaced people of |
| the report, refuse to compensate the locals, | | | | Talsint): "Why should the people of Talsint get |
| orclean up, break their promises, lie to the | | | | more money in theirpockets? It's just by chance |
| Western media, financeagents provocateurs to | | | | they're living on top of what appearsto be |
| provoke protesters and break up | | | | valuable oil and gas reserves." |
| peacefuldemonstrations. | | | | Such sentiments go a long way towards explaining |
| But this may be going too far. American oil firms | | | | why oil firms areso hated and why they so often |
| and Royal | | | | contribute to instability, abuses,and poverty, |
| Dutch/Shell have collaborated fully with NGO's | | | | despite their best interests. Perhaps they |
| since the publicoutcry following the execution of | | | | betterdivert the millions they throw at local |
| Ken Saro-Wiwa, a prominent | | | | communities - to educatingtheir staff. Sometimes, |
| Nigerian environmentalist and author in 1995 | | | | development is best begun at home. |
| (though not so their | | | | |