The aim of this report is to identify public policy options by which governments and international organisations can better assist private sector efforts to promote effective conflict-sensitive business practices, and do so in ways that make a demonstrable contribution to sustainable peace in the countries where companies invest and operate. This report assesses the achievements and limitations of emerging private sector initiatives, identifies continuing gaps, and surveys the range of opportunities for complementary public policy action. It argues that conflict-sensitive business practices cannot progress in the absence of practical public policy assistance to companies. These objectives require concerted engagement by public policy actors.
The report concludes with a set of recommendations that address concrete actions the public policy community can take to support private sector efforts. These efforts would contribute to conflict prevention and post-conflict peacebuilding, security sector reform, the peaceful and responsible management of natural resources, transparency and good governance and the protection of human rights.
Key Findings:
- Private investment is critical to the successful development of a peaceful environment. During conflict, there is a greater danger of companies becoming complicit in violence, and thus a greater need for the international community to develop a clear and effective framework that defines and supports appropriate private sector behaviour.
- Shortcomings of current private sector initiatives include: a proliferation of codes and standards with limited coverage and authority; the self- selecting and self-enforcing nature of these codes and the resulting collective action problem among firms; the lack of harmonisation among governments in the regulation of trade and investment, reflecting collective action dilemmas among states; the profound weakness of certain host governments; and a lack of relevant expertise and information to guide company personnel in zones of active hostilities.
- These limitations can be overcome through more effective assistance to weak states to strengthen their governance capabilities; enhanced governance of international economic transactions that contribute to conflict; coordination among security and development assistance institutions, policies and programs; and direct public sector support for private sector efforts.
Recommendations:
- Priority should be given to extending and deepening existing policy frameworks that show promise of enhancing private sector initiatives for conflict-sensitive business practice, and to increasing coordination among all relevant actors. Doing so will help to clarify where new policy frameworks are needed, as well as identifying the opportunities for developing a more coherent international policy framework.
- Governments and the United Nations can build upon existing initiatives for conflict-sensitive business to broaden their coverage and promote their implementation in ways that complement mainstream conflict prevention and reconstruction efforts.
- The Security Council could undertake a more systematic consideration of the political economy of armed conflict in its deliberations, particularly those concerning the mandates of United Nations peace operations.
- The United Nations and development banks can expand public-private partnerships in post-conflict reconstruction programs in order to enhance the ability of states to address the demobilisation and reintegration of former combatants.
