Extracting conflict

U.S. Multinationals and Human Rights: A Theoretical and Empirical Assessment of Extractive Versus Nonextractive Sectors

“…These issues have led to protests, sabotage and subsequent security challenges across extractive sectors in the past (Dashwood, 2014;Mutti et al, 2012). A prominent example is the Niger Delta, where government security forces used violence against activists and local protesters (Frynas, 1998;Idemudia, 2009;MacDonald & McLaughlin, 2003). Indeed, a detailed list of cases on human rights violations registered under The Alien Tort Claims Act (ATCA) of 1789 of the US government against US firms operating in various developing countries reports that the majority of the cases are associated with extractive investments (see our summary in the appendix).…”

“…We focus on this distinction because among qualitative case studies, there is a great deal of attention paid to the negative impacts in extractive sectors, which has amounted to the theory of the so called "resource curse" that drives autocratic and corrupt politics in resource-wealthy states (e.g. Eweje, 2006aEweje, , 2006bEweje, , 2009Idemudia, 2009;MacDonald & McLaughlin, 2003;Ross 2012). Many local communities and social activists are willing to give up on potential economic benefits from FDI and oppose new extractive investment, because they fear that extraction leads to human rights abuses in local communities, where foreign companies run rough shod over the interests and demands of people (Dashwood, 2014;Mutti, Yakovleva, Vazquez-Brust, & Di Marco, 2012).…”