01 Nov 2000: Angola`s War Economy.
The Role of Oil and Diamonds, J Cilliers, C Dietrich (eds)
ANGOLA`S WAR ECONOMY
The Role of Oil and Diamonds
Jakkie Cilliers and Christian Dietrich (editors)
November 2000
Funded by the Government of Finland
The Angolan war, now entering its fifth decade, initially coincided with a period of intense Cold War rivalry but has continued unabated thereafter, reflecting remarkable adaptive characteristics and the ability to survive Africas political and strategic marginalisation. Cold War patronage has been replaced by the instrumentalisation of oil and diamonds as part of the ongoing insurgency. This study reflects possibly the most complete work on the Angolan war economy to be published in recent years. The book first presents a theoretical framework for the political economy of the Angolan abundant resource war and an interpretative account of the internal and regional dynamics of the war, its global and arms dynamics and ethnic roots. Four of the sixteen chapters are devoted to the diamond industry, looking at commercial diamond mining in Angola, porous borders and diamond smuggling and the political sociology of power struggles in the diamond rich Lundas. Two chapters are devoted to UNITA logistics. The first presents an overview of UNITAs logistic support structures and the other more specifically looks at airborne support to UNITA. Two chapters focus on the oil industry, providing an overview of the industry and role of oil in the war economy, while a third investigates the ethical considerations of multinationals doing business in Angola. A separate chapter is devoted to the role of humanitarian aid during the war and a final chapter looks towards the future.
Insurgency warfare
The instrumentalisation of disorder
Governance in Angola
The importance of the informal economy
A changed international environment
Conclusion
Links between resources and wars
Violence as a political instrument of economic control
The course and political economy of resource wars
Resources, reforms and transition to peace
Conclusion
Early and colonial history
The three streams of nationalism
1961: The anticolonial revolt begins
Competition or cooperation?
The Lisbon coup
The Alvor Accord
Overture to civil war
11th November 1975
Arms to break a stalemate
Decline in bipolar interest and the rise of alternatives
The post-cold war environment
Resources for arms or arms for resources?
Conclusion
Theoretical framework: ethnicity, nationalism and statehood
Africa: ethnicity and colonialism
Ethnicity and the colonial state in Angola
From liberation war to ethnic war
Governance in an ethnically divided society
Conclusion
The state of the Angolan state
Assessing the human disaster
The relief industry in Angola
Challenges
Angola’s diamond geology
History of diamond mining in Angola
Quantifying total Angolan production
Quantifying formal production
Lucapa, Nzaji and Dundo
Saurimo area
Cuango valley
Conclusion
UNITA occupation
Military entrepreneurial acumen
Stabilising the diamond fields
Informal commercial integration
Informal diamond networks
Conclusion
The Angolan petroleum industry and its development
Growth in the petroleum industry
Government management of the petroleum industry
Key foreign company players and partners
Competition in Angolan oil and gas
Strategic significance: acreage, awards and discoveries
Opportunities and future potential
Critical issues: bonuses, state funding and transparency
Conflict and petroleum: strategic risk dimensions
Policy management and Angolan poverty – the future
Foreign investment and war
Outsiders’ strategic motives and their preference for order
The revival of 19th century norms in Angola’s international relations
Corporate ethics
The oil sector
The banking sector
The diamond sector
Conclusion
Unita’s strategy of self-reliance 1966–1989
The extent of the problem: an example of supply
Putting the problem in context
Putting the problem in focus
Conclusion
Pre-industrial mining
Building an industrial capacity after 1992
Diamond decentralisation
Savimbi’s diamonds after Luzamba
Diamond sales
Conclusion
The privatisation of logistics
The structure of the smuggling networks
Continuity of smuggling networks
Private operations today
Tricks of the trade
Regulating the industry
Vulnerability of the networks’ logistics component
Conclusion
Country case studies
Angolan route
Western routes
Central routes
Southern routes
Smuggling case studies
Conclusion
The Angolan security dilemma
Controlling the Angolan diamond fields
Pressure on UNITA logistics
Targeting the elites
Finances and oil
Conclusion
List of maps
Ethno-linguistic map of Angola
Areas of highest diamond concentration
Formal mining operations in the Lunda’s
Angolan oil licence blocks
Africa
Detail of western Zambia
