New Convergences in Poverty Reduction, Conflict, and State Fragility: What Business Should Know
- 257 Downloads
A common moral imperative to reduce human suffering in developing countries has helped to bring the international poverty reduction and conflict mitigation agendas together. But while research and practice are well established in the fields of poverty and conflict, the nexus between these two fields at the theoretical and practical levels is largely nascent. Lack of a shared body of knowledge has arguably impeded the ability of these communities to work together toward the overlapping goals of reducing poverty and conflict in countries affected by violence and instability. Business, as a key sector of the international community, could potentially make significant contributions to the joint agenda if it were better integrated in efforts to develop the nexus. This article surveys the current states-of-knowledge in the fields of poverty and conflict, including the increasing influence of the fragile states theory. It then discusses some of the major schools of thought helping to bring poverty reduction efforts into alliance with conflict mitigation efforts. The third section identifies important conceptual convergences and divergences between the fields and reconsiders the prominent assumption that economic opportunity can be a powerful incentive for peace and stability. Finally, this article discusses potential areas that could advance the nexus of poverty and conflict at both a theoretical and practical level.
Keywordsbusiness commerce conflict international development peace poverty state fragility
Bottom/base of the pyramid
Corporate social responsibility
Disarmament, demobilization, and reintegration
Department for International Development (of the United Kingdom)
Extractive Industries Transparency Initiative
Human Development Index
Information communication technology
Internally displaced person
International Monetary Fund
Kimberly Process Certification Scheme
Millennium Development Goals
Millennium Development Goal One
New Institutional Economics
Organization of Economic Cooperation and Development
Peace through Commerce
Poverty Reduction Strategy
Sustainable Livelihoods Approach
United Nations Development Programme
United Nations High Commission for Refugee
United States Agency for International Development
World Food Programme
Unable to display preview. Download preview PDF.
- Arnson, C. and W. Zartman, editors: 2005, Rethinking the Economics of War: The Intersection of Need, Creed, and Greed (John Hopkins University Press, Baltimore, Maryland)Google Scholar
- Ballentine, K. and J. Sherman (Eds) 2003 The Political Economy of Armed Conflict: Beyond Greed and Grievance. Lynne Rienner Publishers, Boulder, COGoogle Scholar
- Barrett, C. B., M. R. Carter and M. Ikegami: 2008, Poverty Traps and Social Protection (University of Wisconsin-Madison, Madison), http://www.aae.wisc.edu/carter/Papers/BarrettCarterIkegami.pdf.
- Baser, B. and A. Swain: September 2008, ‘Diasporas as Peacemakers: Third Party Mediation in Homeland Conflicts’, International Journal on World Peace 25(3), 7-28.Google Scholar
- Brück, T 2003 ‘Coping Strategies in Post-War Rural Mozambique’. DIW Berlin Berlin: Germany.Google Scholar
- Brück, T.: 2006, ‘Contributions of a Household Level Perspective to Poverty Reduction in Conflict and Fragile States,’ Keynote Address at the U.S. Agency for International Development Conference on Poverty Reduction in Conflict and Fragile States: Perspectives from the Household Level, http://www.povertyfrontiers.org/ev.php?ID=1618_201&ID2=DO_TOPIC.
- Charney, C., R. Nanda and N. Yakatan: 2004, Voter Education Planning Survey: Afghanistan 2004 National Elections’, a Report Based on a Public Opinion Poll (The Asia Foundation), http://www.asiafoundation.com/resources/pdfs/afghanvotered04.pdf.
- Chavet, L. and P. Collier: 2005 ‘Policy Turnarounds in Failing States: Spillovers and Turnarounds’. Oxford University: Oxford UK.Google Scholar
- Chronic Poverty Research Centre: 2004, The Chronic Poverty Report: 2004–2005 (Chronic Poverty Research Centre, Manchester, UK), http://www.chronicpoverty.org/uploads/publication_files/CPR1_ReportFull.pdf.
- Collier, P. and A. Hoeffler: 2003, Breaking the Conflict Trap: Civil War and Development Policy. The World Bank/Oxford University Press, Washington, DC/Oxford.Google Scholar
- De Soto, H.: 1989, The Other Path: the Economic Answer to Terrorism (Basic Books, New York, NY).Google Scholar
- El Zogby, M.: September 2008, AMAP Knowledge Generation Economic Recovery Amid Conflict Case Studies: Synthesis Report, U.S. Agency for International Development, Washington D.C.Google Scholar
- Faiola, A.: 2008, ‘Women Rise in Rwanda’s Economic Revival’, The Washington Post, http://www.washingtonpost.com/wp-dyn/content/article/2008/05/15/AR2008051504035_pf.html.
- Gartzke, E.: 2005, ‘Chapter 2: Economic Freedom and Peace’, Economic Freedom of the World, 2005 Annual Report (CATO Institute, Washington, DC), http://www.cato.org/pubs/efw/efw2005/efw2005-2.pdf.
- Gerstle, T. and T. Nourse: 2006, ‘Market Development During and Post-Conflict: Emerging Lessons for Pro-Poor Economic Reconstruction’, Paper Submitted for the U.S. Agency for International Development conference on Poverty Reduction in Conflict and Fragile States: Perspectives from the Household LevelGoogle Scholar
- Ghani, A. and C. Lockhart: 2008, Fixing Failed States: a Framework for Rebuilding a Fractured World (Oxford University Press, New York, NY).Google Scholar
- Goodhand, J.: 2001, ‘Violent Conflict, Poverty and Chronic Poverty’, Working Paper 6, Chronic Poverty Research Centre, Manchester, UKGoogle Scholar
- International Alert: 2006, Local Business, Local Peace: The Peace-Building Potential of the Domestic Private Sector, http://www.international-alert.org/peace_and_economy/peace_and_economy_projects.php?t=2.
- Justino, P.: 2006, ‘On the Links Between Violent Conflict and Chronic Poverty: How Much Do We Really Know?’, Working Paper 18, Households in Conflict NetworkGoogle Scholar
- Justino, P.: 2007, ‘Carrot or Stick: Redistributive Transfers Versus Policing in Contexts of Civil Unrest’, Micro Level Analysis of Conflict (MICRON) Research Working Paper 3, http://www.microconflict.eu/publications/RWP3_PJ.pdf.
- Karnani, A.: June 2007, ‘Misfortune at the Bottom of the Pyramid’, Greener Management International 51, 99-110.Google Scholar
- Naude, W 2009 ‘Entrepreneurship, Post Conflict’. In: T. Addison and T. Bruck (Eds.), Making Peace Work: the Challenges of Social and Economic Reconstruction. Palgrave Macmillan: London, UK.Google Scholar
- North, D.: 2005, Understanding the Process of Economic Change (Princeton University Press, Princeton, NJ).Google Scholar
- Olson, M.: 1971, The Logic of Collective Action: Public Goods and the Theory of Groups (Harvard University Press, Cambridge, MA).Google Scholar
- Organization for Economic-Cooperation and Development, Development Assistance Committee: April 2007, Principles for Good International Engagement in Fragile States and Situations, (OECD, Paris, France).Google Scholar
- Organization for Economic-Cooperation and Development, Development Assistance Committee: 2008a, Concepts and Dilemmas of State-Building in Fragile Situations (OECD, Paris, France), http://www.oecd.org/dataoecd/59/51/41100930.pdf.
- Organization for Economic-Cooperation and Development, Development Assistance Committee: 2008b, Service Delivery in Fragile Situations: Key Concepts, Findings, and Lessons (OECD, Paris, France), http://www.oecd.org/dataoecd/17/54/40886707.pdf.
- Penh, B.: 2008a, ‘Poverty Reduction in Conflict and Fragile States: Institutions and State Legitimacy’, Note from the Convener, U.S. Agency for International Development, http://www.povertyfrontiers.org/ev_en.php?ID=2349_201&ID2=DO_TOPIC.
- Penh, B.: 2008b, ‘Note from Afghanistan: Increasing Access and Opportunity in Remote Areas’, Note from the Field, U.S. Agency for International Development, http://www.microlinks.org/ev_en.php?ID=29735_201&ID2=DO_TOPIC.
- Pirkkalainen, P. and A. Mahdi: 2009, ‘The Diaspora – Conflict – Peace – Nexus: A Literature Review’, Working Paper 1, DIASPEACE ProjectGoogle Scholar
- Prahalad, C.K.: 2009, The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits (Wharton School Publishing, Upper Saddle River, NJ).Google Scholar
- Sen, A.K: 1985, Commodities and Capabilities, (Oxford University Press, Oxford, UK).Google Scholar
- Sen A. K 1999 Development as Freedom. Knopf: New York NY.Google Scholar
- Simanis, E. and S. Hart: 2008, The Base of the Pyramid Protocol: Toward Next Generation BoP Strategy (Cornell University, Ithaca, NY), http://www.wdi.umich.edu/files/BoPProtocol2ndEdition2008.pdf.
- The Asia Foundation: 2006, Afghanistan in 2006: A Survey of the Afghan People (The Asia Foundation), http://www.asiafoundation.com/resources/pdfs/AGsurvey06.pdf.
- The Asia Foundation: 2007, Afghanistan in 2007: A Survey of the Afghan People (The Asia Foundation), http://www.asiafoundation.com/resources/pdfs/AGsurvey07.pdf.
- United Nations Global Compact: 2005, ‘Enabling Economies of Peace’, United Nations, http://www.unglobalcompact.org/docs/news_events/8.1/enabling_econ.pdf.
- Urdal, H.: 2004, ‘The Devil in the Demographics: The Effect of Youth Bulges on Domestic Armed Conflict, 1950–2000’, Social Development Papers, Conflict Prevention and Reconstruction, Paper No. 14, World Bank, Washington, DCGoogle Scholar
- U.S. Agency for International Development: 2005a, Conducting a Conflict Assessment: a Framework for Strategy and Program Development (U.S. Agency for International Development, Washington D.C.).Google Scholar
- U.S. Agency for International Development: 2005b, Fragile States Strategy (U.S. Agency for International Development, Washington, DC), http://www.usaid.gov/policy/2005_fragile_states_strategy.pdf.
- U.S. Agency for International Development: 2007, Poverty Reduction in Conflict and Fragile States: Perspectives from the Household Level, Summary of Proceedings from a Conference Held November 8–9, 2006 (U.S. Agency for International Development, Washington, DC)Google Scholar
- Vonnegut, A. and K. Kotnik: 2006, ‘Using Markets in Conflict Mitigation: Conceptual and Practical Considerations’, Paper Submitted for the U.S. Agency for International Development Conference on Poverty Reduction in Conflict and Fragile States: Perspectives from the Household LevelGoogle Scholar
- World Bank: 2000, World Development Report 2000/2001: Attacking Poverty (World Bank, Washington D.C.).Google Scholar
- World Bank: April 13, 2007, Global Monitoring Report: Millennium Development Goals, Confronting the Challenges of Gender Equality and Fragile States (World Bank, Washington D.C.).Google Scholar