Much is known about what not to do in post-conflict settings. To better identify what different stakeholders should do, more successful examples from post-conflict regions regarding private sector investments and their enabling environments are required, as well as more research and data on the dynamics of conflicts. This was an overarching conclusion of the Wilton Park Conference "Investing in Peace: Spurring Private Sector Involvement in Post-Conflict Peace-Building", which took place on 11 - 13 January 2007. The conference was co-hosted by the German Federal Foreign Ministry and supported by the Global Public Policy Institute.

Participants and speakers from business, industrialised country and developing country governments, academia and civil society brought together different perspectives and experiences of private sector investments. They all shared the understanding that such investments have an important role to play in creating sustainable peace. At the same time, 'the' business sector is not a homogenous entity, and policy makers should not treat it as such. For example, junior explorative and extractive companies are often among the earliest to enter a (post-)conflict region and have a mixed record regarding their impact on peace and security. Local and diaspora entrepreneurs are also often willing to invest early on in post-conflict transition. They have high stakes in building sustainable peace, but their potential is not yet fully exploited by donors' post-conflict (re)construction strategies.

The most important role of large corporations in post-conflict settings was seen as doing its core business in a responsible way. Taking risks by investing in post-conflict settings is part of this. While extractive industries necessarily have an incentive to go where the resources are, even if the country or region is troubled by conflicts and insecurity, other sectors are frequently deterred by the risks of these contexts. However, an assessment of opportunities besides the risks may give a more comprehensive picture. For example, some telecommunication providers are early investors in post-conflict settings, since they recognise the competitive advantage. Additionally, they offer an important service for nation- and peacebuilding, for example in the case of the Democratic Republic of Congo. The conference made it apparent that more information is necessary to develop a coherent framework of how to engage business in post-conflict investment to create sustainable peace. The cost of failure is apparent in the frequent re-emergence of violent conflict. (by Moira Feil)

The conference programme can be downloaded here

Published in:ECC-Newsletter, Februar 2007