The role of the private sector in different aspects of conflict resolution has received increasing attention. This is due to several factors. First, the private sector, domestic or multinational, is often present in contexts of armed conflict and exposed to its risks and impacts, which frequently compel it to act. Second, it has the capacities (human, resources, managerial and technical, among others) to intervene in different ways. Third, what has been called the ‘privatisation of peace’ is underpinned by the wider global trend of privatising services and functions traditionally provided by the state or the international community.
In conflict contexts, states have frequently been described as ‘fragile’, that is unwilling or unable to provide essential services and functions to at least part of their populations – leaving the private sector, in many instances, to perform such roles. This paper will discuss the diverse roles played by the private sector during peace processes, drawing on a variety of examples from different contexts.
Key findings:
- Successful peace negotiations and implementation of peace agreements is often seen to require business-sector support. Evidence also suggests that if the private sector is not adequately drawn into a peace process, its interests not taken into account, or its involvement not managed well, it can play the role of a potential spoiler, undermining peace efforts. The private sector is not monolithic: domestic enterprises range in size and capability. On one hand they have local knowledge and a greater stake in peace; on the other hand they may have entrenched interests and relationships to protect. Multinationals, while being outsiders, can bring a certain level of impartiality, but local communities and parties may view them and their intervention with suspicion.
- Private-sector participation in peace processes takes many forms: from direct participation in negotiations to indirect activities aimed at influencing negotiators, including lobbying (overt and covert), shuttle diplomacy, supporting off-the-record meetings, disseminating knowledge and participating in multi-sectoral dialogues. Each of these entails different roles, opportunities and challenges for the private sector. When direct costs of conflict to business rise to a level that can no longer be sustained, business acts, in its own interest, to assist peace processes. The mode it chooses varies, depending on local conditions, the willingness of the business sector, and the context of local political dynamics. The recognition that an end to conflict and prospects of future stability will offer economic opportunities is another driver.
- Four key factors influence the success of business engagement include: the private sector’s credibility and legitimacy, ability to act collectively, experience of social engagement, understanding and acceptance of the notion of peace dividend. However, any role for business can only complement other elements of a peace process, and should not be seen as distinct. While business people can, and often should, be strategic partners in a peace process, they cannot be the sole agents of change. In several instances businesses have been in a position to offer something of value – resources, neutrality, credibility, legitimacy, their good offices – that other actors lacked.
