By Mike Gaworecki
Mekong, November 27, 2015
Conflicts between local communities in developing countries and governments and corporations seeking to exploit natural resources pose a serious threat to investors’ bottom lines, according to new research.
UK-based consultancy TMP Systems studied 262 agriculture, energy and mining sector disputes with local populations in developing countries and found that 67 percent of the time those conflicts had a materially significant impact on investors.
Land conflicts and human rights abuses in resource-rich developing countries from Southeast Asia to Latin America to Africa have become more and more common amidst growing demand for commodities like palm oil, soy and beef.
Yet Ben Bowie, a partner at TMP Systems, told Mongabay in an email that his team’s findings had come as a surprise to many investors and project developers he’d spoken to, though the problem is so prevalent that investors eyeing emerging markets should expect to have to engage with the issue.
Read more at Mongabay