“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 fragile and conflict-affected environments (FCAEs). 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 reducing poverty in FCAEs, but the extent to which PSD helps peace-building is less clear.
- Successful PSD programmes in FCAEs require sufficient resources and the right staff capacities to fully understand the situation on the ground.
Photo credits: Ed Hedley.