Business (Not) for Peace: A Call for Conflict-Sensitive Policy in Fragile States

The document challenges the assumption that peace is inherently good for all businesses, arguing that many companies operating in fragile and conflict-affected states (FCAS) may actually benefit from the status quo or face severe reprisals for engaging in peacebuilding. It contends that policies focusing solely on GDP growth or 'de-risking' investment without considering conflict dynamics can exacerbate fragility. The author urges 'systems shapers'—those who finance and regulate the private sector—to adopt conflict-sensitive approaches and ensure corporate accountability to prevent the private sector from becoming a vector for instability.

• There is a critical distinction between the general idea that peace benefits the private sector and whether peacebuilding specifically benefits an individual business currently operating in a fragile and conflict-affected state (FCAS).
• Economic policies aimed at increasing GDP, tax revenues, or employment that ignore conflict dynamics risk increasing the fragility of the state.
• Private sector actors in FCAS often act as 'systems takers' who are constrained by the political economy of conflict; those who survive or thrive are often products of a conflict-rife environment, while ethical actors may be excluded.
• Businesses may oppose peacebuilding because they face high risks of government reprisals or because a peaceful transition would impose stricter environmental, social, and labour regulations and increase competition.
• The current policy trend of 'de-risking' investment in FCAS is considered misguided because it separates corporate financial risk from the socio-political and conflict risks borne by local populations.
• Certain high-impact investments, such as mining, oil and gas, and large-scale infrastructure, often exacerbate conflict by touching on land ownership, environmental degradation, and government impunity.

APA

South African Institute of International Affairs (2019). Business (Not) for Peace: A Call for Conflict-Sensitive Policy in Fragile States. https://saiia.org.za/research/business-not-for-peace-a-call-for-conflict-sensitive-policy-in-fragile-states/

Chicago

South African Institute of International Affairs. Business (Not) for Peace: A Call for Conflict-Sensitive Policy in Fragile States. 2019. https://saiia.org.za/research/business-not-for-peace-a-call-for-conflict-sensitive-policy-in-fragile-states/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Business (Not) for Peace: A Call for Conflict-Sensitive Policy in Fragile States |date=31 May 2019 |url=https://saiia.org.za/research/business-not-for-peace-a-call-for-conflict-sensitive-policy-in-fragile-states/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2019business, author = {{South African Institute of International Affairs}}, title = {{Business (Not) for Peace: A Call for Conflict-Sensitive Policy in Fragile States}}, institution = {South African Institute of International Affairs}, year = {2019}, month = may, url = {https://saiia.org.za/research/business-not-for-peace-a-call-for-conflict-sensitive-policy-in-fragile-states/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }