Trade in Conflict Minerals -- Congolese Warlords, MNC’s, and Dodd-Frank 1502

  • Ankit Deshmukh Temple University

Abstract

This paper seeks to provide an overview of conflict mineral trade by analyzing it through an economic lens. Using data gathered from news sources, the memo first defines the term “conflict minerals” and identifies that the primary actors involved in the conflict mineral market are rebel militia groups and multinational corporations. The trade is mutually beneficial for these actors as it serves as the primary source of revenue for militia groups and allows multinational corporations to buy minerals at low costs. The memo also highlights the struggles legitimate Congolese miners face, as they face threats from militia groups and low market prices Also identified is Section 1502 of the Dodd Frank act, legislation which forces multinational corporations to list their mineral suppliers, thereby increasing supply chain transparency. While implemented with good intentions, it is extremely unsuccessful in stifling the conflict mineral trade as it lacks substantive regulatory measures. Furthermore, the EU and US plan to implement opposing conflict mineral trade policies — the EU looks to increase supply chain transparency while the US looks to repeal Section 1502 of Dodd Frank (an action which would decrease supply chain transparency). This paper believes that coordinated and homogenous action on the part of both federal governments and IGOs is necessary in order to concretely enforce restrictions on conflict mineral trade.

Author Biography

Ankit Deshmukh, Temple University

Ankit Deshmukh is a Global Studies major with a management career certificate at Temple University.

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Published
2019-05-25
How to Cite
Deshmukh, A. (2019). Trade in Conflict Minerals -- Congolese Warlords, MNC’s, and Dodd-Frank 1502. Perceptions, 5(2). https://doi.org/10.15367/pj.v5i2.200