Job creation is vital to countering
Protracted conflicts cause far-reaching damage to the social, economic and political affairs of affected areas. They create a negative reinforcing loop because they make it difficult to deal with the underlying causes of the problem.
Violence in the
But the ongoing clashes make this difficult to achieve. Violent extremism directly threatens the assets and operations of industrialists who do business in conflict zones. For instance, the factory of cement conglomerate Lafarge in north-east
Unsafe transport routes also make the movement of assets risky and may dampen demand for produced goods by customers too afraid to use certain roads. Problems of market access affect both the movement of raw materials and finished goods.
Emigration, death or displacement in conflict zones present another challenge by reducing the capacity of the labour force. Since the crisis started in 2009, 2.8 million people in the
The ongoing conflict also means governments may divert resources to military activities, often at the cost of public investment in infrastructure and development needed for private sector growth. This could affect spending on public education or the building and repair of roads, for example.
It is also true that businesses can fuel conflicts. They can create new tensions in the competition for jobs or resources such as land. Extractive commercial practices can have the same effect, adding another layer to the hostile environments that communities face. Companies can also inadvertently strengthen violent groups when their assets are captured during attacks.
These problems have not prevented the establishment and running of large commercial enterprises in north-eastern
In
A similar approach was employed by
Many corporations operating in the
Some of these strategies mirror tactics used by small businesses in the region. The increased costs do not always justify actualised revenue and may force companies to close. In other cases, the risky investment pays off.
Transport routes also need to be secured. Although the region's governments may not have the resources to secure all roads in and between their countries, identifying and focusing on those with higher trade traffic is worthwhile. This could boost cross-border trade, which has declined substantially due to the
Investment promotion efforts should be honest about the region's security risks but use examples of companies operating in the area to show that they are surmountable. Governments must also recognise the increased security costs for businesses and provide targeted relief through tax incentives.
There is no doubt that the private sector has a significant role in stabilising and reducing fragility. However, governments must create an enabling environment and ensure that all actors work together. If companies take their business elsewhere due to spiralling costs, the loss of jobs will heighten fragility in already vulnerable areas.
Strategies for industrial development in the
Another strategy is to work in more stable areas in the hope that by stimulating the local economy, the net of stability widens. And by treating businesses as peacebuilding actors, their operations can become more conflict sensitive and will not worsen a bad situation.
The Regional Strategy for the Stabilisation, Recovery and Resilience of the
Teniola Tayo, Fellow,
Research for this article was funded by the governments of
(This article was first published by ISS Today, a Premium Times syndication partner. We have their permission to republish).
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