Redressing resource curse is key part of an energy ... must

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Relevance of the Resource Curse for US Energy
Security
Presentation by David Goldwyn President, Gol
dwyn International Strategies to Nicholas Instit
ute Round Table Woodrow Wilson Institute, Washing
ton, DC September 22, 2006
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Key Points
Oil dependency is a national security issue
Risks likely to increase over time
Redressing resource curse is key part of an
energy security strategy Change requires inter
nal will, external help US has leverage we nee
d to use it
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Oil Dependency A National Security Issue

• Oil wealth fuels political impunity -- Iran,
  Russia, Venezuela, Sudan Angola
  
• Race for spoils fuels civil war DRC
  Congo-Brazzaville Nigeria
  
• Rentier states fuel hostility to U.S.
• Oil dependence impedes US security diplomacy
• Competition for oil erodes US influence

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Risks Likely to Increase Over Time
Demand for oil rising Supply remains constraine
d New consumers (China, India) competing with U
S for political influence CFR Task Force C
hanges will take two decades no quick fix
Need to manage consequences
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Fostering Change

• Reduce global dependency on oil
• Diversify income, promote education in producing
  states
  
• Transparency is an essential minimum standard
• Integrate energy and foreign policy
• CFR US reform begins at home

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Lessons Learned

• Any effort must be homegrown (Nigeria,
  Azerbaijan)
  
• It takes time, resources, technical expertise
• Expect resistance (internal and external)
• External accountability helps
• Transparency deters corruption, levels playing
  field

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Agenda for the US

• Take this issue seriously (at home and abroad)
• Acknowledge accomplishments when they occur
  (Nigeria, Azerbaijan)
  
• Raise importance of transparency with China,
  India, others at a senior level
  
• Reinforce homegrown efforts with high level
  diplomacy
  
• Fund EITI Trust Fund/Offer technical assistance
• Build new systems right from the start

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Goldwyn International Strategies
202-223-3520
www.goldwyn.org info_at_goldwyn.org