Economy and Peacebuilding

This conference was convened within the framework of the Diamonds for Development initiative (D4D), which focuses on the sustainable use of revenue from mineral resources for the purposes of development. It was organised by the Government of Liberia in partnership with UNDP Liberia and International Alert with the objective of identifying ways to ensure that the alluvial diamond sector contributes to sustainable peace and development in the Mano River Basin sub-region.

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This briefing paper proposes better lending practice in conflict-prone states – defined as ‘conflict-sensitive’ project finance – is in the interests of all stakeholders. Such an approach would enable financial institutions to:

    Understand the conflict context in which a project is developed
    Recognise the two-way process that characterises the interaction between investments and conflict and assess the impact between the project activities and the conflict context

Briefing paper

Contractors operating in unstable states face a range of conflict risks. Oil, gas and mining projects, which frequently have significant contractor involvement, can inadvertently trigger or sustain violence, or become the focus of resentment themselves. Produced in partnership with Engineers Against Poverty, this guidance note is addressed both to engineering contractors and their clients.

Guidance note

‘War kills development as well as people’.1 It destroys livelihoods as well as lives, and it undermines economic as well as political progress. Violence deprives people of opportunity as well as the physical infrastructure and social structures on which they rely. Above all, perhaps, it robs them of hope and belief in the future. In other words, the impacts of conflict are as damaging to the economic potential of a nation as they are to its social and political prospects.

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Elaboré dans le cadre du Partenariat pour la Prévention des Conflits, ce document analyse le contexte dans lequel l’UE utilise ses instruments de relations extérieures pour combattre l’insécurité, promouvoir une gouvernance légitime et efficace, et soutenir la reconstruction, un développement durable, et l’intégration régionale en RDC. Des consultations dans la région et dans l’UE ont permis de dégager des propositions communes sur chaque thème pour que l’UE puisse mieux contribuer à une paix et développement durable en RDC et dans la région.

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This paper is aimed at motivating and informing discussion within the EU institutions and Member States on the nature of their engagement in the South Caucasus. It suggests priority areas for political dialogue and external assistance programming under the upcoming EC Country and Regional Strategy Papers. It argues that unless authorities and civil society in the region, supported by the international community, genuinely address the root causes of violent conflict, societal instability and distrust, then broad-based development and prosperity will remain beyond reach.

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Set up during 2006 with peacebuilding as its sole objective, the UN Peacebuilding Commission has the potential to use its intergovernmental voice to focus attention on the factors that could drive a renewal of conflict. In this light, Alert submitted recommendations in late 2006 on how the PBC could most effectively orientate its short and long-term support to the process of improving security and sustaining peace, for men and women, in Burundi. More widely, this publication also looks at the main challenges for the PBC and how it should focus its activities.

Recommendations

This publication makes the case that the local business community in conflict-affected countries can and should play a role in building peace. Linking up with other peacebuilding actors, and taking advantage of their own resources and skills, business communities should address socio-economic, security, political and reconciliation dimensions of peacebuilding. Section 1 is divided into 5 thematic chapters, and Section 2 contains 19 country case studies. Executive Summaries are also available in Spanish and French.

Executive Summary

Table of Contents

Introduction

Section 1: Thematic Chapter 1

Section 1: Thematic Chapter 2

Section 1: Thematic Chapter 3

Section 1: Thematic Chapter 4

Section 1: Thematic Chapter 5

Section 1: Conclusions

Section 2: Overview of Case Studies

Section 2: Afghanistan Case Study

Section 2: Bosnia and Herzogovina Case Study

Section 2: Burundi Case Study

Section 2: Colombia Case Study

Section 2: Democratic Republic of Congo Case Study

Section 2: El Salvador Case Study

Section 2: Guatemala Case Study

Section 2: Israel and Palestine Case Study

Section 2: Kosovo Case Study

Section 2: Nepal Case Study

Section 2: Nigeria Case Study

Section 2: Northern Ireland Case Study

Section 2: Philippines Case Study

Section 2: Sierra Leone Case Study

Section 2: Somalia Case Study

Section 2: South Africa Case Study

Section 2: South Caucasus Case Study

Section 2: Sri Lanka Case Study

Resumen ejecutivo: Las empresas locales y la paz: el potencial de construccion de paz del sector empresarial nacional

Résumé: Entreprise Locale, Paix Locale: Le potentiel du secteur privé national pour la construction de la paix

L’importance de la culture du café dans l’économie burundaise est indéniable. Elle représente l’essentiel des structures industrielles et des recettes d’exportation du pays. Les réformes de la filière café, entamées depuis 1990 mais inachevées, se sont poursuivies par la suite avec une plus grande libéralisation dans le secteur qui s’est manifesté par l’entrée dans certaines fonctions des opérateurs privés notamment dans l’exportation, le déparchage et plus récemment (mais encore timidement) dans la torréfaction.

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Depuis plus d'une décennie, les recherches ont souligné l'importance de la dimension économique du conflit et des intérêts économiques des belligérants. La concurrence entre les acteurs politiques, militaires et commerciaux pour le contrôle des ressources minérales dans l'est du pays est de plus en plus reconnue comme un facteur clé dans les causes d'instabilité en République démocratique du Congo. Ce rapport est basé sur un examen approfondi des principaux documents écrits sur le sujet depuis l'an 2000.

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The ‘Mobilising the Ugandan Business Community for Peace’ scoping study project undertaken by International Alert and funded by Swedish SIDA, ran from October 2005-July 2006. The purpose of the research was to assess the potential of the private sector in Uganda to address Uganda’s conflicts and contribute to peacebuilding. It was also intended to lay the groundwork for any future SIDA/ International Alert work in this area.

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This publication is one of the chapters of the book 'Human Security and Business' (Ruffer & Rub, 2008) which includes the papers highlighting important considerations concerning business and human rights. This publication points out the interconnectedness of severe human rights abuses in violent conflict with certain corporate practices, drawing on examples from Africa, Asia and Latin America, and shows that voluntary initiatives alone are not enough to ensure that companies, particularly in the extractive sector, act as per the law or best practices.

Chapter

Sub-Saharan Africa is experiencing a significant oil boom and the injection of large amounts of revenues from oil, gas and mineral extraction presents an enormous challenge. This money should serve as a basis for economic growth and poverty reduction across Africa, yet history shows that resource revenues have not generally contributed to better development outcomes.

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Until a decade ago, India was regarded largely as a poor developing country with low visibility on the global political and economic front. A multitude of factors, most prominently its emerging global economic strength, have led India not only to redefine its self-image but also to adopt a new political role both internationally and within its immediate neighbourhood.

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This report focuses on economic recovery as a central pillar of peacebuilding in eastern DRC and, in particular, the role of the European Commission in supporting such processes. It argues that the drivers of fragility and instability must be addressed if meaningful long term economic recovery is to be realised. The report is based on field work carried out in South Kivu and Ituri, and draws on research by Alert’s partner in Bukavu, CEGEC.

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