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Private Sector Development and Peacebuilding

In Mid-September, the German Federal Ministry for Development and Economic Cooperation (BMZ), the British Department for International Development (DFiD), the German Technical Cooperation (GTZ), and International Alert organized a two-day conference in Berlin. During these two days some 140 experts in the fields of private sector development (PSD) and peacebuilding discussed how to promote a private sector role in peacebuilding. Discussions also explored how to integrate the two disciplines to develop conflict-sensitive and peacebuilding PSD interventions. The conference concentrated on the relation between conflict and business, highlighting the domestic private sector’s potential to contribute to peacebuilding. International institutions like the World Bank addressed emerging international experience in PSD programming in conflict affected countries.

So far, research and politics in the realm of war economies has mainly focused on the links between the exploitation of
natural resources, economic interests of state or non-state armed forces, and the potential negative impacts for foreign investments and business practices. The debate on "business and conflicts" has contributed to important developments in international politics, e.g. the generation of new normative frameworks for business activities, restrictions for the trade of conflict resources, and stricter controls to prevent money laundering. It is also increasingly recognized that many local and international businesses also have an interest in securing peace.

Hence, at the core of the conference a study by International Alert was discussed, which on the basis of several case studies examined the significance of local businesses in securing peace. So far PSD interventions have been handled as "second generation" interventions, i.e. scheduled after political institution building and humanitarian interventions. However, PSD is not only the engine for long-term, sustainable economic growth but certain PSD interventions can target postconflict, short-term economic needs like employment creation and provision of public services. PSD and peacebuilding practitioners should reach out proactively to the domestic private sector to create awareness of its own conflict impacts through conflict-sensitivity and do-no-harm approaches as well as opportunities for contributing to peace.

Strategic coordination within development agencies and between all relevant stakeholders is even more important in a post-conflict situation to ensure not only successful economic development but also sustainable peace. Therefore there is a need to foster a network of partnerships and dialogue between public sector, private sector, civil society, donors, and NGOs. (ECC-editors on the basis of the GTZ conference report)

For further information and full documentation on the conference, please see here

For the publication with case studies by International Alert, please see http://www.international-alert.org/our_work/themes/LBLP.php#download

For further information on the topic "Business and Conflict" please see http://www.gtz.de/de/themen/uebergreifende-themen/krisenpraevention/3347.htm

 

Published in: ECC-Newsletter, October 2006