5 - The Killer in the Boardroom

Summary

The starting point of this chapter is the observation that would-be dictators are abundant around the globe, but some succeed in setting up and sustaining a rebel army while others do not. As argued in this chapter, a key ingredient for rebel success and conflict longevity is funding. One source of financing is the stolen spoils of nature. Think, for example, of blood diamonds. Beyond this particular example, we also discuss in this chapter systematic evidence on how access to mineral rents triggers an escalation of fighting activities of armed groups. In addition to resource rents, it is foreign funding that results in prolonged conflict, and may lead to proxy wars between fighting factions supported by rival foreign powers. The destructive potential of these sources of funding is examined by drawing on examples and empirical evidence from Angola, the Democratic Republic of Congo and India.