ABSTRACT

The international community has directed increasing attention toward the role of the private sector in peacebuilding in countries emerging from violent conflicts. This chapter examines private-sector peacebuilding activities in the natural resource sector in conflict-affected countries. It provides an overview of the risks and benefits of actively including the private sector in conflict zones. The chapter identifies ways in which post-conflict countries can attract private-sector investment, and follows with an analysis of how best to mitigate negative corporate impacts through conflict-sensitive business practices. It then explains the need for private investors to pursue conflict-sensitive business practices in order to avoid fomenting further conflict and to ensure good company-community relations. Regulatory and institutional reforms—preferably at a very early stage after a conflict has ceased—and enticements such as tax incentives can help to make foreign private investors more willing to enter post-conflict countries. The chapter highlights that private-sector investments—if managed with conflict-sensitive approaches—can be constructive, rather than destructive, to peace.