Economy and Peacebuilding

During the past decade the forces of political transformation and economic globalisation have created a world of new opportunities and hope for some, but increased instability and insecurity for others. As we enter the 21st Century violent conflict continues to affect the lives of millions of people, undermining human progress and economic development. This has important implications for the private sector, which has become an influential player in many conflict-prone or conflict-ridden countries.

The Business of Peace

Introduction

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INTERNATIONAL ATTENTION has turned in recent years towards understanding the economic dynamics of conflict – with a particular emphasis on the ways in which natural resource exploitation can fuel armed violence. Research into these dynamics has emerged from a spectrum of actors – from major multilateral institutions such as the World Bank, to both Northern and Southern based NGOs.

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The Democratic Republic of Congo (DRC) is immensely rich in natural resources but its people are among the poorest in the world. This paradox is both cause and effect of the brutal exploitation of the country’s resources that has taken place since King Leopold, and that has fuelled such violent and devastating conflict.

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Это результат восемнадцати месяцев исследований и анализа, направленных на изучение того, как более полное понимание существующей экономической ситуации в регионе может способствовать решению региональных конфликтов. Это также первая книга, в которой данный вопрос изучается с точки зрения людей, живущих в регионе - авторы являются членами Исследовательской Группы по Экономике и Конфликтам; команда экспертов собранана со всего Южного Кавказа, включая Армению, Азербайджан, Грузию, Турцию, а также Абхазию, Нагорный Карабах и Южную Осетию.

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Executive summary

This is the product of an 18-month period of research and analysis that aimed to explore how a better understanding of the region’s current economic dynamics might contribute to the resolution of its conflicts. It is the first book to examine this topic from the perspectives of those living in the region - the authors are members of the Economy and Conflict Research Group; a pool of experts from throughout the South Caucasus, covering Armenia, Azerbaijan, Georgia, Turkey and including Abkhazia, Nagorno-Karabakh and South Ossetia.

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Executive summary

This report sheds light on the nature of the relationship between the oil industry and conflict in a region that has been unstable since the collapse of the Soviet Union in the early 1990s – with a particular focus on the Baku-Tbilisi-Ceyhan (BTC) pipeline (currently being built to transport oil from the Caspian to the Mediterranean). Once fully operational (2006 is predicted) the BTC will have a capacity to deliver 1 million barrels per day to the Turkish port of Ceyhan. The report recognises that construction of the pipeline is largely the responsibility of BTC Co.

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This report investigates Sri Lankan perceptions of the role of business in society, and businesses’ own perception of this role, including its potential in supporting social, economic and political development. It also explores whether Corporate Social Responsibility (CSR), as presently understood by businesses and the wider community, can be a useful entry point for Sri Lanka’s private sector to contribute to peace.

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The role of international companies in post-conflict reconstruction is an essential complement to the work of international aid agencies. However, if policy-makers are to secure the maximum benefits from private investment, they need to understand how different companies and sectors view opportunity and risk, and find ways to assess their overall impact in post-conflict settings.

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The five years of relative peace in Northern Uganda has enabled the majority of former Internally Displaced Persons to return to their home areas and begin rebuilding their lives. During and after the long war in Northern Uganda, women have emerged as critical economic actors, taking advantage of economic opportunities to secure their families’ livelihood, security and advancement.

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Until now the financial sector has had limited involvement in international debates on business and conflict. This background paper seeks to stimulate greater consideration of conflict risk and a more constructive path for project finance backed investments in conflict-prone regions.

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Based on a series of visits to working diamond mines, interviews with diggers, mine owners, traders, exporters, government officials and NGOs, the report describes the current state of the diamond industry in West Africa, providing both an overview of the sub-region and detailed analysis of each country.

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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