Asset Stripping
Asset Stripping
is the practice of buying a company in order to sell its
assets
individually at a profit. Asset stripping is also sometimes used to describe the practice of
investors
dealing directly with
armed militant
groups in
developing nations
to take direct control of assets that legally belong to the
state
or
commons
or any group in society that the investor and armed militant can effectively coerce. It has led to
deforestation
in
Africa
and
Colombia
and to other harmful effects.
Jim Friedman
on a
United Nations
panel on exploitation of natural resources in the
Democratic Republic of Congo
, listed this as one of several key concerns in "
Investment and human rights
".
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