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PSD in Conflict-Affected Environments

 

Private Sector Development can be a vital tool in conflict-affected environments. In the 2011 World Development Report and elsewhere, it is now recognised that low GDP per capita and unemployment are major drivers of conflict. This is supported by survey data cited in the WDR: Asked for the reasons why young people join rebel groups or gangs, the biggest share of respondents indicated unemployment as the main reason. The report concludes that the path to longer-term development and peace "is dependent on a healthy private sector". PSD is therefore crucial, "especially if creating jobs and incomes is to out-last donor-funded, short-term emergency works."

However, the report points out that donor agencies have "not paid as much attention to labor-intensive private sector development as is warranted by the importance of [...] job creation for violence prevention. [...] International economic development assistance is easier to obtain for macroeconomic policy, health, or education capacities than for job creation.”

Still, there seems to be increasing recognition in the international sphere of the relationship between private sector development and peacebuilding. Most recently, the High-Level Forum on Aid Effectiveness in Busan welcomed a ‘New Deal for Engagement in Fragile States’. This new deal identifies five peace- and statebuilding goals, including in particular economic foundations (generating employment and improving livelihoods) - and marks a new international consensus on the priorities of donors working with fragile states.

Contents

This area of the website offers a comprehensive set of resources on PSD in conflict-affected environments (CAEs), including the following; please click on the links below to be directed to the corresponding section on this webpage.

Suggestions for addition to this page are welcome at any time. Please contact the DCED Secretariat.

DCED Activities in the area of PSD in CAE

The DCED Working Group on PSD in CAE believes that the contribution of private sector development in CAE is not limited to economic development, but can be valuable across all aspects of peacebuilding. With this in mind, the Group has published a number of resources that are aimed to make PSD interventions in CAE more effective and organised events for practitioners, such as at the UN LDC Conference 2011. For more information about the Group's activities, please refer to the working group page.

Introductory Resources

The following list features some key introductory resources and links on PSD in CAE, while the complete Online Library below includes bibliographies listed by country and theme.

Key Documents

Guidance by Various Agencies for PSD Practitioners in CAEs

Below, you can find a compilation of existing guidance published by various agencies on how to promote private sector development in CAEs. The available guidance falls into the following categories:

Please note that the list below is a work in progress. The various publications only represent the views of the respective agencies/ authors. We will add further details and orientation to 'guide' you through the guidance in due course. This will include pointing out the differences and commonalities between the various documents.

Assessment

A) Guidance for Conflict Assessment

B) Guidance for Conflict Assessment with a PSD Lens

C) Guidance for applying PSD Assessment Tools with a Conflict Lens

General private sector/ economic development assessment tools
Investment climate/ business environment assessment tools
Value Chain/ market assessment tools

Programme Design and Implementation

Note: Monitoring of results should be part of good programme design and implementation. Guidance on monitoring can be found in the section on results measurement.

A) Basic guiding principles for international engagement in CAEs

B) Guidance for economic and private sector development

Cross-cutting guidance
Investment Climate Reform
Value Chain/ Market Development
Public Private Partnerships
Infrastructure
Local Economic Development
Microfinance

Results Measurement

A) Guidance for results measurement in CAEs (not PSD-specific)

B) Guidance for results measurement in CAES (PSD-specific)

All PSD
Investment Climate Reform

Online Library on PSD in CAE

The DCED's Online Library on issues related to PSD in CAE covers more than 450 resources from a broad range of agencies and researchers, which address many of the key questions that academics and practitioners in this field are facing: What are the links between conflict, economic development and the private sector? How should the local and international private sector be involved in relief, reconstruction and development efforts? How can practitioners assess conflict and measure the impact of their interventions on development and peace? What are the lessons learnt so far from different PSD approaches in CAE, in specific countries, sectors, and in support of specific conflict-affected groups?

These and other questions are addressed in the literature below, organised in seven sub-areas of PSD in CAE. To view the appropriate bibliographies, please click on the links below.

1.Background

2. Aid Effectiveness

3. Employment and Vulnerable Groups

4. Engaging the Private Sector

5. PSD Approaches

6. Sector Studies

7. Area Studies

Photos: Road Construction, Roadside shops and Cattle Dealer in Afghanistan.
Courtesy of Jochem Theis