1. Post-conflict Development and Natural Resources Marcia Mundt Honors Thesis Advisor: Dr. Yosef Lapid A Case Study of Indonesia

2. Why Conflict? Social Impacts Casualties Drugs AIDS Terrorism Economic Impacts Decreased Development Increased Poverty Interdependency Political Impacts Instability

3. “Resource Curse” Discovery: “Violent secessionist movements are statistically more likely if the country has valuable natural resources.” -Paul Collier, World Bank Natural Resources GDP per capita Why the Correlation? 1) Resource Scarcity- “Tragedy of Commons” 2) Resource Dependency 3) Decreased GDP  Increased Poverty 4) Poor Governance 5) Local Grievances

4. Peacebuilding Security & Reconciliation Social Empowerment Economic Growth Political Stability

5. Terms & Definitions Natural Resource Conflict- disagreements and disputes over access to, control over, and use of natural resources Post-Conflict Development- the process of strengthening a country’s political, economic, and human rights foundation in a post-conflict situation to effectively prevent recurrent violence

6. A Case Study of Indonesia A classic case of resource-based conflict… East Timor Aceh Kalimantan Maluku Central Sulawesi Papua Riau

7. Historical Background Colonialism –Portuguese- 16 th Century –Dutch- 17 th Century WWII Japanese Occupation Independence –December 27, 1949 Authoritarianism –Sukarno (1949-1965) Indonesian Communist Party “Guided Democracy” –Suharto (1967-1998) Pro-Western “New Order”

8. Conflict Trigger 1997 East Asian Financial Crisis 1998 Suharto Resignation

9. East Timor East Timorese National Liberation Army Republic of Indonesia Initially 1975 Renewed 1999 Independence 2002 Natural Resources: Oil, Natural Gas, Gold, Manganese, and Marble

10. Aceh Aceh Freedom Movement (GAM) Indigenous Acehnese Republic of Indonesia Javanese Migrants/Investors Initially 1989 Renewed 1999 Special Autonomy 2002 Natural Resources: Oil, Natural Gas, Gold, Silver, Timber, Agriculture

11. Riau Independent RiauJavanese Migrants/Investors Riots 1998 Decentralization 2003 Natural Resources: Oil, Timber, Agriculture

12. Kalimantan Indigenous DayakMadurese Migrants/Investors Initially 1996 Renewed 1999 Decentralization 2003 Natural Resources: Oil, Natural Gas, Coal, Timber

13. Papua Free Papua Movement (OPM) Republic of Indonesia “Non-Papuan” Migrants/Investors Initially 1965 Renewed 1998 Special Autonomy 2001 Natural Resources: Oil, Natural Gas, Timber, Gold, Silver, Copper

14. Maluku Indigenous Kaonese ChristiansMigrant Makianese Muslims/Investors Peace Pact 2002 Initially 1970s Renewed 1998 Natural Resources: Oil, Timber, Gold, Nickel, Manganese, Agriculture

15. Central Sulawesi Indigenous ChristiansMigrant Muslims/Investors Riots 2000 Malino Declaration 2001 Natural Resources: Oil, Natural Gas, Timber, Nickel, Agriculture

16. Conflict ZoneResource(s)Conflict-Resource Correlation East TimorGas Oil Minerals Resource Scarcity State Dependence on Resource Poverty Poor Governance Local Grievances AcehGas Oil Timber/Forestry Agricultural Products Resource Scarcity State Dependence on Resource Poor Governance Local Grievances RiauGas Oil Timber/Forestry Agricultural Products Resource Scarcity State Dependence on Resource Poor Governance Local Grievances KalimantanGas Oil Minerals Timber/Forestry Resource Scarcity State Dependence on Resource Poor Governance Local Grievances PapuaGas Oil Minerals Timber/Forestry Resource Scarcity State Dependence on Resource Poverty Poor Governance Local Grievances MalukuOil Minerals Timber/Forestry Agricultural Products Resource Scarcity State Dependence on Resource Poverty Poor Governance Local Grievances Central SulawesiOil Minerals Timber/Forestry Agricultural Products Resource Scarcity Poverty Poor Governance Local Grievances

17. A Logical Progression Resource Scarcity State Dependence on Periphery Province Resources Decreased GDP  Increased Poverty Poor Governance Local Grievances

18. Post-Conflict Development Current StrategySuggested Approach Political Social Economic Holistic Approach- places emphasis on long-term, strategic, participatory, flexible, and sequenced programs which address social, political, and economic development for durable peace

20. Thank You! Post-conflict Development and Natural Resources A Case Study of Indonesia April 18, 2008 Marcia Mundt Thesis Advisor: Dr. Yosef Lapid Contributors: Dr. Nike Carstarphen, Dr. Jasmine Mi-Kyeng Jeong Completed with the generous support of New Mexico State University’s Honors College.