Fuelling War The Impact of Canadian Oil Investment on the Conflict in Colombia.doc

OCOEiROLSnOCCentre for Research on Latin America and the CaribbeanFueling War: The Impact of Canadian Oil Investment on the Conflict in ColombiaBy: Scott PearceCERLAC Working Paper SeriesNovember, 2002CERLAC WORKING PAPER SERIESThe CERLAC Working Paper Series includes pre-publication versions of papers prepared by CERLAC associates or resulting from CERLAC projects and colloquia, and which are slated for publication elsewhere. All responsibility for views and analysis lies with the author(s). Authors welcome feedback and comments.Reproduction: All rights reserved to the author(s). Reproduction in whole or in part of this work is allowed for research and education purposes as long as no fee is charged beyond shipping, handling, and reproduction costs. Reproduction for commercial purposes is not allowed.Ordering Information: Papers can be ordered from CERLAC. Cost per single paper is $4.00 to cover shipping and handling. For orders of 10 papers or more there is a 50% discount. Please see the order form attached. Send cheque or money order (no credit cards, please) to:CERLAC240 York Lanes York University Toronto, Ontario Canada M3J 1P3Phone: (416) 736-5237 Fax: (416) 736-5737 E-mail: cerlac@yorku.caCERLAC WORKING PAPER SERIESNovember, 2002Fueling War The Impact of Canadian Oil Investment on the Conflict in ColombiaForthcoming in: An edited volume on Canadian Mining Investment in Latin America, edited by Liisa North(in preparation)By:Scott PearceDepartment of Political Science, York University scottpearce@sympatico.caAbstract:This paper explores the contentious relationship between foreign investment and political violence in Colombia. In particular, it examines the impact of Canadian oil investment on the armed conflict. In the past two years, there has been a veritable flood of Canadian oil companies to Colombia, many of which are involved in oil exploration and development in regions of the country where conflict is most intense. Indeed, there appears to be a strong correlation between regions of mineral wealth and regions of political conflict. Are Canadian oil companies contributing to the escalation of political violence? Is it possible for even well intentioned companies to conduct themselves ethically in the midst of a war?Table of Contents1.0 Introduction12.0 The Economics of Civil War22.1 Greed-Based Theories of Rebellion22.2 Transnational Corporations and Conflict42.3 The Case of Talisman Energy in Sudan53.0 The Origins and Evolution of the War in Colombia63.1 La Violencia and the Birth of the Guerrillas63.2 Paramilitarism and the Colombian State83.3 The U.S. Role in Colombia104.0 The Impact of Canadian Oil Investment on the Conflict in Colombia124.1 The Colombian Oil Industry124.2 Oil Investment and the Guerrillas134.3 Making Colombia “Safe” for Investment154.4 The OCENSA Case185.0 Ethical Investment in Colombia195.1 Profiting from Repression195.2 Defining “Complicity”205.3 Holding Canadian Companies Accountable215.4 What Can the Canadian Government Do?235.5 Is Ethical Investment Possible in Colombia?235.6 Oil for whom?246.0 Conclusion28IntroductionThe genesis of this paper began two years ago when I was working in northwestern Colombia with an international human rights organization. My job was to physically accompany community leaders and local human rights defenders who had been threatened by armed groups in the area—most commonly the military or right-wing paramilitary.1 I spent a great deal of time in the rural communities that were caught at the centre of the armed conflict, and I was struck by the villagers’ analysis of the situation: many argued that the government was waging war against the local population in order to clear the way for foreign investment. Foreign investors, it was charged, were providing the incentive, if not the means, to forcibly displace communities in order to gain access to their land and natural resources.2 Thus, for many people, foreign investment represented a threat to their personal security. This conclusion sharply contradicts the Canadian government’s position, which is that foreign investment is enormously beneficial to Colombians. In a recent report, the parliamentary Standing Committee on Foreign Affairs and International Trade argues: “International investment and trade will be very important to Colombia if it is to address its serious problems of poverty and strengthen its democracy overall...”31 The theory behind protective accompaniment is thata highly visible international presence serves to deteracts of political violence.2 The community of Cacarica in Chocó departmentsays: “[We are] up against the determination of a fewpowerful people who prevent us from fully benefitingfrom out land.” The economic agenda of theiraggressors, they argue, is clear: the area is ripe forcoca production, A。