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Part I: Confronting the Economic Challenges

Chapter One: Peace Processes, Business and New Futures after War

Pages 15-32 | Published online: 27 Aug 2010
 

Abstract

The transition from war to peace is fraught with tension and the risk of a return to bloodshed. With so much at stake, it is crucial that the international community and local stakeholders make sense of the complex mosaic of challenges, to support a lasting, inclusive and prosperous peace. Recent missions, such as in Afghanistan, Somalia or Sudan, have highlighted the fact that there can be no one-size-fits-all approach to steering countries away from violence and towards stability.

This Adelphi offers a series of economic perspectives on conflict resolution, showing how the challenges of peacebuilding can be more effectively tackled. From the need to marry diplomatic peacemaking with development efforts, and activate the private sector in the service of peacebuilding aims, to the use of taxes and natural-resource revenues as a financial base for sustainable peace, this issue considers how economic factors can positively shape and drive peace processes. It examines the complex ways in which power and order may be manifested in conflict zones, where unpalatable compromises with local warlords can often be the first step towards a more lasting settlement. In distilling expertise from a range of disciplines, this Adelphi seeks to inform a more economically integrated and responsive approach to helping countries leave behind their troubled pasts and take a fuller role in constructing their futures.

Notes

This chapter is based on A. Wennmann, The Political Economy of Peacemaking, (London: Routledge, forthcoming 2011), and draws from a broader project on economic issues and instruments in peace processes supported by the Swiss Federal Department of Foreign Affairs.

M. Ahtisaari, ‘Lessons of Aceh Peace Talks', Asia Europe Journal, vol. 6 no. 1, 2008, p. 11.

D.A. Baldwin, Economic Statecraft (Princeton, MA: Princeton University Press, 1985), p. 9.

M. Berdal and D.M. Malone (eds), Greed and Grievance: Economic Agendas in Civil Wars (Boulder, CO: Lynne Rienner, 2000) p. 2.

A. Wennmann, Wealth Sharing Beyond 2011: Economic Issues in Sudan's North-South Peace Process (Genevea: CCDP Working Paper 1, 2009), p. 8.

R. MacGinty, No War, No Peace: The Rejuvenation of Stalled Peace Processes and Peace Accords (Houndmills: Palgrave Macmillan, 2006), pp. 152–153; D. Sriskandarajah, ‘The Return of Peace in Sri Lanka: The Development Cart Before the Conflict Resolution Horse?’ Journal of Peacebuilding and Development, vol. 1 no. 2, 2003, pp. 21–35.

P. Rimple, ‘Economic Development: The Latest Recipe for South Ossetian Peace’, Eurasianet, 20 February 2007, available at http://www.eurasianet.org/departments/insight/articles/eav022007.shtml.

A. Vines, ‘Angola: Forty Years of War’, in P. Batchelor and K. Klingma (eds) Demilitarization and Peacebuilding in Southern Africa – Volume II (Aldershot: Ashgate, 2004) pp. 74–104.

A. Wennmann, Economic Issues in Peace Processes: Socio-Economic Inequality and Peace in Nepal (Geneva: CCDP Working Paper 2, 2009), p. 5.

F. Grignon, ‘Economic Agendas in the Congolese Peace Process', in M. Nest (ed.), The Democratic Republic of Congo: Economic Dimensions of War and Peace (Boulder, CO: Lynne Rienner, 2006) pp. 62–98.

A. Wennmann and J. Krause, Managing the Economic Dimensions of Peace Processes: Resource Wealth, Autonomy, and Peace in Aceh (Geneva: CCDP Working Paper 3, 2009), available at http://graduateinstitute.ch/webdav/site/ccdp/shared/6305/CCDP-Working-Paper-3-Aceh.pdf.

C.L. Siriam, Peace as Governance: Power Sharing, Armed Groups, and Contemporary Peace Negotiations (Houndmills: Palgrave Macmillan, 2008) pp. 25, 182.

Sudan Ministry of Finance, ‘Template for Publication of Sudan Oil Sector Data 2007’, (2008); Global Witness, Fuelling Mistrust: The Need for Transparency in Sudan's Oil Industry (London: 2009); ‘Oil Revenue in Sudan Slashed by 60% in 2009: GoSS’, Sudan Tribune, 2 March, 2010.

Wennmann, Economic Issues in Peace Processes, p. 18.

J. Frieden, ‘International Development and Conflict Transformation’, in Federal Department of Foreign Affairs, Swiss Peace Policy: Nepal (Bern: Federal Department of Foreign Affairs, 2006), pp. 73–74.

United Nations Department of Political Affairs, ‘Conflict Prevention in Partnership with UNDP’, Politically Speaking, Spring, 2009, p. 16.

J. Goodhand, Violent Conflict, Poverty and Chronic Poverty (Manchester: University of Manchester, 2001) pp. 30–31; D. Sweetman, Business, Conflict Resolution and Peacebuilding (London: Routledge, 2009) p. 11.

J. Bray, ‘Attracting Reputable Companies to Risky Environments: Petroleum and Mining Companies', in I. Bannon and P. Collier (eds), Natural Resources and Violent Conflict: Options and Actions (Washington DC: World Bank, 2009), pp. 287–352.

J. Nelson, The Business of Peace: The Private Sector as a Partner in Conflict Prevention and Resolution (London and New York: The Prince of Wales Business Leaders' Forum, International Alert, Council on Economic Priorities, 2001), pp. 73–140.

C. Charney, ‘Civil Society, Political Violence, and Democratic Transitions: Business and the Peace Process in South Africa, 1990–1994’, Comparative Studies in Society and History vol. 41 no. 1, 1999, pp. 182–206.

G. Ben-Porat, ‘Between Power and Hegemony: Business Communities in Peace Processes', Review of International Studies, vol. 1 no. 2, 2005: pp. 325–348.

Portland Trust, ‘The Role of Economics in Paecebuilding: Our lessons Learned’, unpublished paper, June 2010.

A. Vines, ‘The Business of Peace: “Tiny” Rowland, Financial Incentives, and the Mozambican Settlement’, in J. Armon, D. Hendrickson and A. Vines (eds), The Mozambican Peace Process in Perspective (London: Conciliation Resources, 1998).

C. Batruch, ‘Oil and Conflict: Lundin Petroleum's Experience in Sudan’, in J.K. Alyson Bailes and I. Frommelt (eds), Business and Security: Public-Private Sector Relationships in a New Security Environment (Oxford: Oxford University Press, 2004), pp. 148–160.

S. Tripathi and C. Gündüz, A Role for the Private Sector in Peace Processes? Examples and Implications for Third-party Mediation (Geneva: Centre for Humanitarian Dialogue, 2008), p. 24.

A. Rettberg, Business-Led Peacebuilding in Colombia: Fad or Future of Country in Crisis? (Crisis States Programme Working Paper 58 (phase 1), London: London School of Economics, 2004), p. 1, available at http://www.crisisstates.com/download/projectnotes/rettberg.pdf.

See J. Brauer and J.T. Marlin, Defining Peace Industries and Calculating the Potential Size of a Peace Gross World Product by Country and by Economic Sector (Sydney: Institute for Economics and Peace, 2009), available at http://www.economicsandpeace.org/UserFiles/File/DefiningPeaceIndustrieAndCalculatingAPeaceWGP.pdf.

C. Ksoll, R. Macchiavello and A. Morjaria, Guns and Roses: The Impact of the Kenyan Post-Election Violence on Flower Exporting Firms Working Paper 6 (Centre for African Economies, 2009), p. 1, available at http://www.csae.ox.ac.uk/workingpapers/pdfs/2009-06text.pdf.

‘Kenya Post-Election Violence Costs Country Loss in Tourisms Income’, Ghana Business News, 16 May 2009.

C.M. Blanchard, Iraq: Oil and Gas Legislation, Revenue Sharing, and U.S. Policy (Washington DC: Congressional Research Service, 2009), p. 6.

S. Raine, China's African Challenge (London: Routledge for the IISS, 2009) pp. 105–129.

D. Large, China's Role in the Mediation and Resolution of Conflict in Africa (Geneva: Centre for Humanitarian Dialogue, 2008) p. 38.

A. Wennmann, Wealth Sharing Beyond 2011, p. 18.

Additional information

Notes on contributors

Achim Wennmann

Achim Wennmann is a Researcher at the Centre on Conflict, Development and Peacebuilding (CCDP) of the Graduate Institute of International and Development Studies in Geneva, Switzerland.

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