Promoting conflict-sensitive business activity during peacebuilding

Abstract

This paper considers aspects of the relationship between policies promoting private sector investment and growth, and policies consolidating peace. It covers post-conflict transitions where external authorities play a major role. A core contemporary peacebuilding policy assumption is that stimulating economic recovery is vital to sustaining political settlements and social cohesion. Yet how do we respond when policies to stimulate investment and imperatives to consolidate peace lead to contradictory choices? The paper considers framing investment-promotion activities as quasi-regulatory in nature, given that external actors are shaping and influencing private sector impacts on peacebuilding. It reflects on ideas of "transitionalism" as a distinctive policy mindset during exceptional recovery periods. It addresses three questions: (1) what is distinctive about transitional approaches to influencing the ways that business actors may impact peacebuilding (compared with "routine" developmental settings)? (2) What is distinctive about promoting conflict-sensitive business activity and investment, and how might this require different priorities? (3) What is the proper balance in transitional policymaking between attracting investment to capital-starved settings, and requiring investment to be responsible? (author's abstract)