Aiding, Trading or Abetting? The future of Trade, Aid and Security

This briefing, submitted as written evidence to an International Development Committee Inquiry, outlines the findings of the 'Trade, Aid and Security' initiative. The document argues that while trade and aid are intended to support security and sustainable development, they can instead undermine stability if not designed with conflict sensitivity. It proposes six key policy objectives to ensure that international trade and development assistance contribute to peacebuilding rather than fueling violent conflict, particularly in fragile states dependent on natural resources.

• Trade and aid can inadvertently undermine security and fuel violence, particularly through the globalisation of weakly-governed natural resource markets, the misuse of development assistance, and the promotion of unbalanced macroeconomic rules. This combination can lead to economic degradation and create opportunities for sub-state actors to profit from the perpetuation of conflict.
• Trade in natural resources can contribute to insecurity through the 'resource curse,' where reliance on exports leads to weak institutions and political instability. Additionally, resources can be used to fund government oppression or armed opposition, and abrupt market opening can increase economic inequality and vulnerability to global price swings.
• Development aid can exacerbate conflict when it is misused by donors for geo-strategic goals or by recipients through corruption and appropriation by armed groups. Furthermore, aid allocated without local consultation can deepen inequities, and political conditionality can undermine the legitimacy of governments.
• Current international trade rules are described as fundamentally inequitable and biased toward wealthy nations. The push for uncompromising market liberalisation in developing countries can reduce government revenues and undermine livelihoods, locking these nations into a reliance on volatile primary commodities.
• To support peacebuilding, the document proposes six policy objectives: designing conflict-sensitive trade and aid policies, restricting trade in conflict resources, promoting conflict-sensitive business policy, improving domestic governance, and improving the management of revenues from aid and natural resources.
• The document advocates for the restriction of 'conflict resources'—those bankrolling illegitimate wars—by moving beyond blanket sanctions toward targeted licensing systems and the creation of markets for verified conflict-free goods through public procurement and private sector supply chain management.
• Responsible business practice in fragile states requires global frameworks with real sanctions or rewards, as market actors often engage in predatory activities. The document suggests developing international agreements on corporate liabilities and strengthening the OECD’s Guidelines for Multinational Enterprises.
• Effective revenue management for natural resources and aid requires institutional mechanisms that increase transparency and accountability to prevent these funds from becoming a 'prize of power.' This includes strengthening the Extractive Industries Transparency Initiative and the IMF Guide on Resource Revenue Transparency.

APA

Brown, O. (n.d.). Aiding, Trading or Abetting? The future of Trade, Aid and Security. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tas_conflict_and_dev_inquiry_jan06.pdf

Chicago

Brown, Oli. Aiding, Trading or Abetting? The future of Trade, Aid and Security. International Institute for Sustainable Development, n.d. https://www.iisd.org/system/files/publications/tas_conflict_and_dev_inquiry_jan06.pdf.

Wikipedia

{{cite report |last1=Brown |first1=Oli |title=Aiding, Trading or Abetting? The future of Trade, Aid and Security |publisher=International Institute for Sustainable Development |url=https://www.iisd.org/system/files/publications/tas_conflict_and_dev_inquiry_jan06.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brownndaiding, author = {Brown, Oli}, title = {{Aiding, Trading or Abetting? The future of Trade, Aid and Security}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/tas_conflict_and_dev_inquiry_jan06.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }