At a glance: Synthesis Note on PSD in fragile and conflict-affected environments
Synthesis Note: PSD in FCAEs, DCED, 2018. This Note summarises current findings, issues and debates. Key take-aways include:
- Even in adverse situations, the private sector still provides the most important route out of poverty for the majority of poor people.
- Well-designed private sector development (PSD) programmes can be a viable way of reducing poverty in fragile and conflict-affected environments (FCAEs), but the extent to which PSD helps peace-building is less clear.
- Making PSD programmes in FCAEs a success requires that donors mobilise sufficient resources and the right staff capacities to fully understand the situation on the ground. PSD programming should be an integral part of the conflict management process.
Introductory and overview papers
- Private Sector Development in Conflict Affected States. DFID, 2018. Presents evidence on the relationship between violent conflict and the industrial organisation of firms and entrepreneurial decision-making in fragile states.
- States of fragility. OECD. 2018. Lays out the key trends in fragility, examines the various sources of financing that exist to address fragility, and assesses how well current approaches to fragile contexts are performing.
- Private Sector Development and economic growth: Lessons from the US experience in Afghanistan. Special Inspector General for Afghanistan Reconstruction. 2018. Examines the U.S. government’s support to private sector development in Afghanistan since 2001, through efforts led by USAID. Its analysis highlights the difficulty of supporting economic development in a war-shattered country.
- Escaping the Fragility Trap, The International Growth Centre (LSE), April 2018. Concludes that the solutions to fragility will be mostly domestic. It argues that locally-negotiated coalitions of governments, businesses, and civil society make well-designed international support more likely to be effective.
- The Effectiveness of Private Sector Development Interventions in Fragile and Conflict-Affected Situations: Evidence from Evaluations, IFC, November 2016. This review covered 56 evaluations of PSD interventions in 23 countries classified as FCS by the World Bank from 2005-14. A majority of projects (84 percent) were rated effective in achieving expected deliverables/outputs, while fewer than 50 percent were successful in reaching and exceeding planned outcomes and impact.
- In November 2016, Danida held a seminar on PSD in Conflict and Fragility Affected Environments – examining various interventions and assessing donor agencies’ current approaches. You can view the presentations and a summary of the event here.
- PSD in Post-Conflict Countries: A Review of Literature and Practice, DCED, 2008. Provides an accessible introduction to the subject of post-conflict PSD, presenting a critical overview of the different schools of thought and practical approaches, and identifying outstanding issues for future research and discussion.
Background: conflict, peace and the economy
Seminal research on economic conflict factors
- World Development Report on Conflict, Security and Development, The World Bank, 2011.
- Unemployment and Participation in Violence. World Development Report 2011 Background Paper, 2010.
- Greed and Grievance in Civil Wars, P. Collier and A. Hoeffler, 2004.
- Breaking the Conflict Trap. Civil War and Development, P. Collier et al, 2003.
- On Economic Causes of Civil War, P. Collier and A. Hoeffler, 1998.
The impact of conflict on the private sector
- Understanding how political violence impacts spending patterns, IGC, March 2018
- The small entrepreneur in fragile and conflict-affected states,The World Bank, 2014.
- What does fragility mean for economic performance?, EPS PEAKS Helpdesk Request, 2012.
The role of the private sector for economic recovery and peace-building
- How Does Work Feature in Literature on Youth Participation in Violence? Institute for Development Studies, 2017.
- The effectiveness of private sector development interventions in fragile and conflict-affected situations. Evidence from evaluations, IFC, 2016.
- Generating employment in poor and fragile states: Evidence from labor market and entrepreneurship programmes, Christopher Blattman and Laura Ralston, 2015.
- Employment Promotion in Contexts of Conflict, Fragility and Violence, GIZ/BMZ, 2015.
- Pathways from jobs to social cohesion, The World Bank, 2014.
Practitioner guidance and case studies
General Principles of Effective Donor Support
Basic guiding principles
- Special Economic Zones in Fragile Situations – a useful policy tool? African Development Bank, 2015.
- Help or Hindrance? Results-orientation in conflict-affected situations, Swisspeace, 2013.
- Working Effectively in Conflict-Affected and Fragile Situations. Summary Note, DFID, 2010.
- Private Sector Development in CAEs – Key Resources for Practitioners, DCED, 2010.
- Sensitising Strategic Conflict Assessment for PSD, in: Private Sector Development in Conflict Affected Areas – Key Resources for Practitioners, DCED, 2010.
- Adapting the Growth Diagnostic to Conflict-Affected Environments, in: Private Sector Development in Conflict Affected Areas – Key Resources for Practitioners, DCED, 2010.
- Adding a conflict lens to the Competition Assessment Framework, in: Private Sector Development in Conflict Affected Areas – Key Resources for Practitioners, DCED, 2010.
Business Environment Reform
- Business Environment Reforms in Conflict-Affected Contexts, International Alert, 2010.
- Urgency vs Legitimacy. Tensions in Rebuilding the Legal Structure for Businesses in Post-Conflict Countries, Wade Channell, 2008.
Assessment, design and implementation
- Conflict-sensitive land policy and land governance in Africa, International Alert, 2011.
- The Political Economy of Business Environment Reform: An Introduction for Practitioners, DCED, 2011.
- Private Sector Development in CAEs – Key Resources for Practitioners, DCED, 2010.
- A Rough Guide to Investment Climate Reform in Conflict-Affected Countries, IFC, 2009.
Market Development Approaches
Overviews and case studies
- Doing more business and less aid: The journey of a market system development project in Afghanistan, ILO 2019
- Northeast Nigeria joint livelihood and market recovery assessment, USAID/Mercy Corps, 2017.
- Notes from the Frontier: FSD Africa’s Fragile States Approach – A Learning Journey, FSD Africa, 2017.
- Market systems for resilience, USAID, 2015.
- The BOSS Project in Timor-Leste: Thin Markets, Thick Impact?, ILO, 2015.
- Illuminating Market Systems Development in Fragile Environments. A case study of the alternative energy market in Timor Leste, Mercy Corps, 2015.
- Challenge funds in fragile states: experience from the Afghanistan Business Innovation Fund, Landell Mills, 2016.
- Risky Business: Promoting Private Sector Development in Post-Conflict States. Lessons from the Africa Enterprise Challenge Fund, KPMG, 2013.
- Applying a conflict lens to challenge funds, in: Private Sector Development in CAEs – Key Resources for Practitioners, DCED, 2011.
Promoting Responsible Investment
- Foreign Direct Investment in Conflict-Affected Contexts, International Alert, 2010.
- Guidance on Responsible Business in Conflict-Affected and High Risk Areas: A Resource for Companies and Investors, UNGC, 2010.
- Practical Guidelines for Measuring Results in Fragile and Conflict Affected Environments (Version 3), DCED, last updated 2015: A “must-have for anyone looking for tools to implement PSD programmes in conflict-affected areas”, Enterprise Development and Microfinance Journal, June 2013.
- Resources from the DCED Workshop on Measuring Results in CAEs, 5-6 November 2014, The Netherlands.
- Results Measurement Case Study of the Sustainable Employment and Economic Development Programme in Somalia, DCED, 2013.
- Results Measurement Case Study of the Employment Promotion Programme in Sierra Leone, DCED, 2013.
- Integrated development and peace-building programming. Design, monitoring and evaluation, DFID, 2013.
Cross-Cutting Issues: Employment and Vulnerable Groups
- Youth employment in fragile countries, ECDPM Great Insights Vol 6, 2017.
- Job creation in fragile and conflict-affected situations, The World Bank, 2014.
- Business versus Development Approaches to Employment Creation in Fragile Contexts. Knowledge Platform for Security, Justice and the Law, 2014.
- Livelihood and Employment Promotion in Conflict-Affected Countries. Final Report, JICA, 2012.