PSD in fragile and conflict-affected environments

“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).

It is therefore now widely recognised that private sector development can be a vital tool in conflict-affected environments. Fragile states and partners have signed a ‘New Deal for Engagement in Fragile States’, which highlights the creation of economic foundations through employment and livelihoods as one of five peace- and state-building goals. A healthy private sector is crucial for this, if jobs and incomes are to out-last donor-funded, short-term emergency programmes.

Introductory and overview papers

Background: conflict, peace and the economy

Seminal research on economic conflict factors

The impact of conflict on the private sector

The role of the private sector for economic recovery and peace-building

Practitioner guidance and case studies

General Principles of Effective Donor Support

Basic guiding principles

Principles for economic and private sector development

Conflict assessment

Sequencing and integrating interventions: Security, relief and development

Business Environment Reform


Assessment, design and implementation

Market Development Approaches

Overviews and case studies

Assessment, design and implementation

Challenge Funds

Promoting Responsible Investment

Results Measurement

Cross-Cutting Issues: Employment and Vulnerable Groups

Photo credits

Photo credit: Ed Hedley