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

This briefing argues that private sector development in fragile and conflict-affected states (FCAS) is not inherently peace-positive and can often increase fragility if not conflict-sensitive. It highlights the disincentives for businesses to engage in peacebuilding, including the risk of government reprisals and the potential loss of profits derived from unjust systems. The document calls for 'systems shapers'—those who finance and regulate the private sector—to prioritize corporate accountability and move away from 'de-risking' strategies that decouple corporate risk from socio-political impacts.

• Private sector growth in fragile and conflict-affected states (FCAS) does not automatically support peace and can instead exacerbate instability if policies ignore conflict dynamics. Efforts to increase GDP, tax revenues, or jobs without addressing these dynamics "will increase fragility."
• Businesses in FCAS often face significant risks when attempting to promote positive change, as governments in these states are typically conflict actors. This can lead to reprisals, such as the sudden shutdown of factories over alleged violations after a manager raised human rights concerns.
• There are economic disincentives for incumbent businesses to support peace, as peaceful development typically requires fairer division of profits, better enforced labor and environmental regulations, and increased competition.
• The current policy trend of 'de-risking' investment in FCAS is criticized for separating corporate financial risk from the socio-political and conflict risks borne by local populations.
• The document suggests that 'systems shapers'—those who regulate and finance the private sector—should seek new, less profit-driven vehicles for development and prioritize corporate accountability to prevent ethical actors from being crowded out by unethical ones.
• European policy and the European Commission's engagement with the private sector in Africa must become more conflict-sensitive to ensure that private sector development supports rather than undermines good governance.

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} }