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Brian Ganson - Business and Conflict in Fragile States: The Case for Pragmatic Solutions

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Brian Ganson Business and Conflict in Fragile States: The Case for Pragmatic Solutions
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Large-scale investments in fragile states in Latin America, Africa, the former Soviet Union and Asia become magnets for conflict, which undermines business, development and security.International policy responds with regulation, state-building and institutional reform, with poor and often perverse results. Caught up in old ways of thinking about conflict and fragility, and an age-old fight over whether multinational corporations are good or bad for peaceful development, it leaves business-related conflicts in fragile states to multiply and fester.Surveying a new strategic landscape of business and conflict, Brian Ganson and Achim Wennmann conclude that neither company shareholders nor advocates for peaceful development need, or should, accept the growing cost of business-related conflict in fragile states. Drawing on decades of experience from mainstream conflict prevention and violence reduction efforts, as well as promising company practice, they show that even acute conflict is manageable when dealt with pragmatically, locally and on its own terms.The analysis and conclusions of this Adelphi book will interest policymakers, business leaders and community advocates alike all those hoping to mitigate todays conflicts while helping to reduce fragility and build a firmer foundation for inclusive development.

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Business and Conflict in Fragile States: the Case for Pragmatic Solutions
Brian Ganson and Achim Wennmann
The International Institute for Strategic Studies
Arundel House | 1315 Arundel Street | Temple Place | London | WC2R 3DX | UK
First published June 2016 Routledge
4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
for The International Institute for Strategic Studies
Arundel House, 1315 Arundel Street, Temple Place, London, WC2R 3DX, UK
www.iiss.org
Simultaneously published in the USA and Canada by Routledge
270 Madison Ave., New York, NY 10016
Routledge is an imprint of Taylor & Francis, an Informa Business
2016 The International Institute for Strategic Studies
DIRECTOR-GENERAL AND CHIEF EXECUTIVE Dr John Chipman
EDITOR Dr Nicholas Redman
EDITORIAL Alice Aveson, Jill Lally, Nancy Turner
COVER/PRODUCTION John Buck
COVER IMAGE Community protest, May 2015, against the Tia Maria copper mining project in Southern Peru; the sign translates as agriculture yes, mine no. (Sebastian Castaeda/Anadolu/Getty)
The International Institute for Strategic Studies is an independent centre for research, information and debate on the problems of conflict, however caused, that have, or potentially have, an important military content. The Council and Staff of the Institute are international and its membership is drawn from almost 100 countries. The Institute is independent and it alone decides what activities to conduct. It owes no allegiance to any government, any group of governments or any political or other organisation. The IISS stresses rigorous research with a forward-looking policy orientation and places particular emphasis on bringing new perspectives to the strategic debate.
The Institutes publications are designed to meet the needs of a wider audience than its own membership and are available on subscription, by mail order and in good book-shops. Further details at www.iiss.org.
Printed and bound in Great Britain by Bell & Bain Ltd, Thornliebank, Glasgow
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
ADELPHI series
ISSN 1944-5571
ADELPHI 457-458
ISBN 978-1-138-21397-5
Contents
Guide
The ideas presented in this book emerged as we worked, separately and together, on questions at the nexus of business and conflict in fragile states. Over many years of research and activity in the field, we have benefited from the critical reflections of our academic and practitioner colleagues on every continent in the business, development, security and peace-building communities. In an emerging area of enquiry for which the need for more systematic quantitative and qualitative analysis seems apparent, their insight has helped to calibrate the arguments presented, to ensure that necessarily broad generalities are grounded in real experience, and to maintain a focus on pragmatic and workable solutions. We wish to offer our sincere and heartfelt thanks to each of you. Any errors or omissions of fact or judgement are of course our own responsibility.
Brian Ganson and Achim Wennmann
Cape Town and Geneva, May 2016
ABNABN Amro
AfDBAfrican Development Bank
AMDCAfrican Minerals Development Centre
ANCAfrican National Congress (South Africa)
AUAfrican Union
AVRParmed violence reduction and prevention
BITbilateral investment treaty
BSACBritish South Africa Company
CAOCompliance Advisor Ombudsman (for IMF and MIGA)
CASAConflict Affected States in Africa (initiative of the IFC)
CBMConsultative Business Movement (South Africa)
CBMScommunity-based monitoring systems
CCMACommission for Conciliation, Mediation and Arbitration (South Africa)
CCSDCenter for Conflict, Security and Development (World Bank)
CKDchronic kidney disease
CODESAConvention for a Democratic South Africa
CoSTConstruction Sector Transparency Initiative
CRMACrime and Risk Mapping Analysis (South Sudan)
DACDevelopment Assistance Committee (OECD)
DRCDemocratic Republic of the Congo
EITIExtractive Industries Transparency Initiative
FDIforeign direct investment
FOEFriends of the Earth
GAINGlobal Alliance for Improved Nutrition
GDPgross domestic product
GDSGeneva Declaration Secretariat
GIZGerman International Cooperation Agency
GMUGeneral Memorandum of Understanding
HRCHuman Rights Council (UN)
HRWHuman Rights Watch
IBRDInternational Bank for Reconstruction and Development
ICJInternational Commission of Jurists
ICMMInternational Council on Mining and Metals
ICRCInternational Committee of the Red Cross
ICSIDInternational Centre for Settlement of Investment Disputes
IDAInternational Development Association
IDPinternally displaced person
IDRCInternational Development Research Centre
IEGIndependent Evaluation Group (World Bank)
IFCInternational Finance Corporation
ILOInternational Labour Organization
IMFInternational Monetary Fund
IMSSAIndependent Mediation Service of South Africa
IRCAInternational Railways of Central America
JICAJapan International Cooperation Agency
LDCsleast developed countries
LICUSlow-income countries under stress (World Bank)
MARCOMorris American Rubber Company
MIGAMultilateral Investment Guarantee Agency
MILFMoro Islamic Liberation Front (Philippines)
MNEmultinational enterprise
NDPINiger Delta Partnership Initiative
NGOnon-governmental organisation
NICNational Intelligence Council (USA)
NRMNational Resistance Movement (Uganda)
OASOrganization of American States
OCHAUnited Nations Office for the Coordination of Humanitarian Affairs
OECDOrganisation for Economic Co-operation and Development
OEECOrganisation for European Economic Co-operation
OHCHR
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