PSD in fragile and forced displacement contexts

“Conflict, violence and peace both shape and are shaped by the economy. (…)The need and desire for access to and control over resources has always been a cause of conflict”; conversely, societies are more likely to prosper and be peaceful if people have fair access to livelihood opportunities and services.  (International Alert, 2015).

This page brings together key resources on the challenges and opportunities of private sector development (PSD) approaches in contexts of fragility and forced displacement. Key take-aways include:

  • Even in adverse situations, the private sector still provides the most important route out of poverty.
  • Well-designed PSD programmes can be a viable way of creating economic opportunities in contexts of fragility and forced displacement, but the extent to which PSD helps peace-building is less clear.
  • Successful PSD programmes in fragile contexts require sufficient resources and the right staff capacities to fully understand the situation on the ground, and to effectively manage the transition from humanitarian aid to development.

Contents

At a glance: Short reads on PSD in contexts of fragility and displacement

MSD approaches to programming in fragile and conflict-affected situations. BEAM Exchange/DCED, 2024

This learning brief draws lessons from experiences of collaboration between humanitarian and development actors in donor agencies.

Take a read

Private Sector Development for Refugees and Internally Displaced Persons, DCED, 2021

Summary of key research on using private sector development to assist refugees and internally displaced persons.

Take a read

PSD in FCAEs, DCED, 2018

A Synthesis Note that summarises current findings, issues and debates on PSD in FCAEs.

Take a read

DCED publications

The case for PSD in fragile and forced displacement contexts

Global analyses of fragility and economic drivers of conflict

The role of PSD in fragile contexts

The impact of conflict on business

The role of the PSD in forced displacement contexts

Cross-cutting issues: Linkages between climate change, (forced) displacement and conflict

Applying different PSD approaches in FCAEs

Cross-cutting guidance and lessons learnt

Managing the humanitarian-development nexus

Promoting self-reliance among forcibly displaced populations

Typical approaches to promote economic opportunities of forcibly displaced people in host countries and communities include the development of existing markets (e.g. in refugee camps), livelihood support and measures to enable the uptake of wage labour. In addition to the resources below, the International Chamber of Commerce runs a portal to showcase public-private sector collaborations that integrate refugees into the global economy.

As many host countries of refugees are also fragile, or at increased risk of fragility, resources on PSD in fragile and conflict-affected environments may provide additional guidance.

Measuring results of PSD in fragile contexts

Photo credits: Ed Hedley.