Conflict

The reconstruction of states affected by conflict (part 2)

Page contents

The role of the private sector

The private sector offers investment, capacity and expertise which are essential for post-conflict economic recovery and state reconstruction. At the same time, businesses can be part of the causes and dynamics of conflict, and negative private sector activities can undermine peacebuilding and accountability in post-conflict contexts. Where transnational corporations play a prominent role in reconstruction, there may be increased need to ensure domestic leadership and ownership.

This section provides resources which consider what policies could minimise the negative impacts of the private sector while enhancing its positive contribution to reconstruction.

Nelson, J. and Moberg, J., 2003, 'Rebuilding Bridges: Opportunities and Challenges for Responsible Private Sector Engagement in Iraq's Reconstruction', IBLF Policy Paper No. 3
What role can the private sector play in establishing peace and prosperity in Iraq? How can foreign investors operate responsibly as well as profitably? This policy paper for the Prince of Wales Business Leaders Forum focuses on the business risks and opportunities that foreign companies face operating in Iraq. The authors propose guidelines to manage risks in a post-conflict environment suspicious of the motives of US and UK companies.
Access full text: available online

The following papers traces developments in donor policies towards the private sector's role in conflict-affected contexts and lists positive examples.

Gerson, A. 2001, 'Peace-building: The Private Sector's Role', The American Journal of International Law, Vol. 95:102, pp. 102-119
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? 
Access full text: available online

This document is concerned with the challenges of promoting accountability and corporate social responsibility of transnational corporations in particular.

Banfield, J. et al., 2003, Transnational Corporations in Conflict-Prone Zones: Public Policy Responses and a Framework for Action, International Alert
Access full text: available online
(document summary available shortly)

The following paper is particularly concerned with building institutions to promote economic growth in post-conflict countries.

Aron, J. 2002, Building Institutions in Post-Conflict African Economies, WIDER Discussion Paper DP2002/124, UNU/WIDER, Helsinki
The role of effective state and private institutions in promoting investment and growth is back on the agenda of multilateral agencies. Institutional reform in poor countries, especially in post-conflict countries where institutions have been altered or destroyed, is needed to encourage development and economic growth. Yet, how is it that institutional reform can have a positive impact on development? How do institutions influence growth and recovery in post-conflict countries? What are the constraints on the effective reforms of institutions? 
Access full text: available online

Donor experiences in conflict-affected contexts

This section provides studies and lessons learned on donor experiences in post-conflict reconstruction and in protracted crises.

Open Society Institute and the United Nations Foundation, 2003, Reconstructing Iraq: A Guide to the Issues, A joint publication of the Open Society Institute and the United Nations Foundation
Post-war reconstruction and transition to self-governance in Iraq pose complex challenges and it seems clear that the US, rather than the United Nations, will continue to play the dominant role. How do plans for Iraq diverge from past examples of post-conflict reconstruction? With the UN occupying little more than an endorsement role, can the US succeed? Compiled for the Open Society Institute and the United Nations Foundation, this paper provides concise background information on post-war reconstruction generally and on Iraq specifically.
Access full text: available online

Rohland, K. and Cliffe, S., 2002, The East Timor Reconstruction Program: Successes, Problems and Tradeoffs, Conflict and Reconstruction Unit Working Paper, The World Bank, Washington D.C.
What lessons in post-conflict reconstruction can be learned from experience in East Timor? This Working Paper from the Conflict Prevention and Reconstruction Unit of the World Bank draws preliminary lessons on aid-financed reconstruction in East Timor, with special reference to the Bank’s programmes. East Timor has shown a fast recovery, with main development indicators at or near pre-crisis levels. This largely successful reconstruction is linked to high internal security, fast aid disbursement, and close cooperation between donors and government.
Access full text: available online

Mowjee, T., 2004, European Union policy approaches in protracted crises, HPG Background Paper, Overseas Development Institute, London
What challenges face the European Union (EU) in developing coherent strategies for protracted crises? This study for the Humanitarian Policy Group of the Overseas Development Institute (UK) examines the evolution of the EU’s policy approaches in protracted crises. It finds that overlaps of responsibility between the Commission and the Council, and within the Commission, have hindered the development and implementation of coherent, comprehensive strategies.
Access full text: available online

What other resources are available on the GSDRC?

Users of this page may be interested in the section on PRSPs and conflict-affected countries within the guide to aid instruments and aid effectiveness guide.

Users may also be interested in the GSDRC's 'Literature Review on State-Building'

More information about service delivery in challenging environments is available within the service delivery guide.

Additional information resources

Eldis have created a resource guide on education and emergencies. 

Stabilisation Unit (Formerly Post-Conflict Reconstruction Unit)
This interdepartmental unit was created to build the UK Government's capacity to deal with post-conflict stabilisation.

UNDP Bureau for Crisis Prevention and Recovery (BCPR)
This site includes information on UNDPs conflict-sensitive approach.

United States Institute of Peace (USIP)
USIP is an independent US federal institution which carries out research on reconstruction of legal and judicial systems.

WIDER Conference on Making Peace Work
The United Nations University held a conference addressing sustainable reconstruction in Helsinki during June 2004.

World Bank CPRU
The website of the World Bank Conflict Prevention and Reconstruction Unit includes online topic guides, documents and information on World Bank activities. The World Bank site also has a portal to information on poverty reduction in post-conflict contexts.

New additions