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Key Text Peace-Building: The Private Sector's Role

Author: A Gerson
Date: 2001
Size: 18 pages (130KB)

Summary

Intrastate war is now the predominant form of armed conflict. Effective partnerships between major stakeholders – United Nations, the World Bank, the private sector and the NGO community - in building and sustaining peace in war- torn societies is key. Yet, how can the efforts of such diverse bodies be coordinated? How can the private sector be engaged in the difficult task of relief and reconstruction?

This article from The American Journal of International Law examines the role of the private sector and other actors in peace building, and maintains that a fully coordinated approach is necessary to build and sustain peace. The World Bank and the United Nations are already working together to develop more effectively integrated conflict prevention, post-conflict peace building, humanitarian assistance and development policies. The engagement of the business community in conflict-torn countries has become a key focus for both institutions. The creation of the PCT is proposed as the new structure needed to coordinate approaches to conflict settlement and to give the private sector a greater stake in shaping the outcomes of war-to-peace transitions.

However, this paper makes it clear that attracting private- sector investment in troubled areas is not easy. Thus, the challenge lies in encouraging capital to enter war torn countries and regions, and in using partnership arrangements to support the evolution of civil societies based on market-driven economies and girded by the protection of human and property rights. Other findings are:

The provision of employment and economic opportunities are seen as pivotal to peacemaking – and active participation by the private enterprise as its indispensable component
The private sector can do more than serve as a source of foreign investment and economic growth. It can also be the catalyst for integrative approaches by the UN and the WB, and can assist peacemaking activities
Despite lingering doubts about the sustainability of private-sector commitment, there is a general recognition that private capital is capable of enormous contributions to capacity building and social reconstruction
Private- capital flows will continue to bypass post conflict nations unless the UN and the WB demonstrate that they are willing to share the risk of such investment
Once the private sector is engaged abroad, it can be expected to bear its technical expertise, to encourage the development of a rule of law, and to contribute to global stability alongside international organisations.

Policy pointers to engage the full potential of the business community and civil society in a unified approach to peace building include the need to:

Create a new standing structure - Peace Transitions Council (PTC) – to allow a unified approach in formulating and implementing strategies for recovery
Give equal burdens, responsibilities and voice to the partners in a PTC (WB, UN, NGO community and the international business community)
Allow the PTC to act independently to encourage foreign investment and to provide advice and recommendations regarding a wide plane of issues affecting regional peace and stability.

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Source: Gerson, A. 2001, 'Peace-building: The Private Sector's Role', The American Journal of International Law, Vol. 95:102, pp. 102-119.
Author: American Journal of International Law, http://www.asil.org/resources/ajil.html
Organisation: American Journal of International Law, http://www.asil.org/resources/ajil.html