Matthew Smith & Naing Htoo, Energy Security: Security for Whom?

Abstract

Conducting resource extraction in failed states, conflict zones, and countries with poor human rights records (collectively, "regions of concern") raises a number of profound moral and ethical concerns. Not only might human rights abuses be committed in the resource recovery process (such as by the displacement of local populations or the use of forced labor), but royalty payments by extractive industry corporations might also bankroll oppressive governments and their military machines. In their article, Matthew F. Smith and Naing Htoo document the many abuses committed by the military juntas that have ruled Burma since 1962-both in their efforts to cling to power, as well as in exploiting the country's significant hydrocarbon reserves. Energy royalties contributed at least U.S. $ 1 billion to the junta's coffers in 2006; and incidents of forced labor and forced migration along the route of the Yadana gas pipeline are well documented. Similar dilemmas confront energy companies doing business in Sudan, where royalty payments are widely suspected of fueling the atrocities in Darfur.