Private sector development in fragile states: a peacebuilding approach

The policy brief examines how private sector development (PSD) in fragile states often exacerbates conflict by mirroring patronage politics and corruption. It argues that PSD should be treated as a continuation of peace negotiations, requiring broad-based social and political consensus on economic matters. The author recommends that the UN Peacebuilding Commission (PBC) leverage its mandate to promote 'peace-positive' PSD, which prioritizes the reduction of horizontal inequalities, stimulates broad-based growth, and utilizes 'infrastructures for peace' to manage conflict risks. The brief suggests that companies should be treated as partners in peacebuilding, with their access to opportunities conditioned on their accountability for impacts.

• Private sector development in fragile and conflict-affected states frequently mirrors the social divides and patronage systems that originally caused violence, thereby acting as a catalyst for continued instability.
• PSD often fails to provide a 'peace dividend' because it is implemented within institutional environments that ignore conflict dynamics and the distribution of costs and benefits between conflicting groups.
• For PSD to be 'peace-positive', it must focus on reducing horizontal inequalities between groups, expanding opportunities in informal markets, and stimulating broad-based economic growth rather than benefiting a few elite companies.
• The author identifies specific conflict drivers linked to PSD, including elite enrichment, ethnic exclusion, the use of state security for economic gain, and corporate impunity regarding social and environmental impacts.
• The UN Peacebuilding Commission can improve PSD outcomes by applying 'infrastructures for peace'—compensatory mechanisms for building social consensus—and by promoting independent monitoring of conflict dynamics.
• There are systemic barriers to peace-positive PSD, including governments' desperation for foreign investment at any cost and international finance institutions downplaying social and environmental guarantees to compete with private equity.

APA

Ganson, B. (2021). Private sector development in fragile states: a peacebuilding approach. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/PB-164-2.pdf

Chicago

Ganson, Brian. Private sector development in fragile states: a peacebuilding approach. Institute for Security Studies, 2021. https://issafrica.s3.amazonaws.com/site/uploads/PB-164-2.pdf.

Wikipedia

{{cite report |last1=Ganson |first1=Brian |title=Private sector development in fragile states: a peacebuilding approach |publisher=Institute for Security Studies |date=2021 |url=https://issafrica.s3.amazonaws.com/site/uploads/PB-164-2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ganson2021private, author = {Ganson, Brian}, title = {{Private sector development in fragile states: a peacebuilding approach}}, institution = {Institute for Security Studies}, year = {2021}, url = {https://issafrica.s3.amazonaws.com/site/uploads/PB-164-2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }