How to involve the private sector in peacebuilding processes

This policy brief is based on research projects carried out and/or coordinated by the Clingendael Conflict Research Unit in the course of 2009. It presents a number of policy considerations on how to better involve private sector actors in peacebuilding efforts in fragile and conflict affected environments.

Programme and policy support to promote private sector development (PSD) is not only vital for post-conflict economic recovery, but also for peace consolidation. Yet, peacebuilding and stabilization efforts have generally focused on humanitarian assistance, rebuilding the security sector and supporting democratic processes, leaving economic issues and PSD rather vaguely described and for later on in the peacebuilding process. Where it has been addressed, donors have often directed work towards the public rather than the private sector and have rarely adapted programmes to the volatile conditions of fragile environments. Early engagement of the private sector is, however, essential in order to address the full range of economic conflict factors and positively contribute to the peacebuilding process, including the creation of visible peace dividend for the local population.