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151. Using Entrepreneurship to Promote Stability in Fragile Regions

Author:
Raymond Gilpin and Steven Koltai
Publication Date:
09-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Described as the productive combination of innovation, initiative, risk and capital, entrepreneurship could provide a crucial underpinning for stability in conflict-affected regions via job creation and improved human security. State building initiatives regularly tout entrepreneurship as an integral part of broader economic development, political or security strategies but seldom explain the thinking behind purported causal linkages. The Six + Six model offers a targeted and comprehensive strategy to promote entrepreneurship in conflict-affected states. It provides a dynamic alternative to aid-based strategies. Given the growing success of impact investing, it is imperative for bilateral and multilateral development agencies to help facilitate such investment by co-investing and seeding further impact investing. Entrepreneurs in fragile regions urgently need support in the form of enabling environments and innovative approaches that reward their creativity and risk-taking. To bolster entrepreneurs' chances for success, policymakers should consider: redirecting foreign assistance; re-focusing private sector development interventions; re-conceptualizing state building; and re-valuing individuals.
Topic:
Conflict Prevention, Political Violence, Economics, Markets, Poverty, Fragile/Failed State, and Foreign Direct Investment

152. Providing Space for Positive Youth Engagement

Author:
Tim Luccaro
Publication Date:
09-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Afghanistan's youth bulge, estimated at 21 million people under 25 years old, are a potential catalyst for shifting the current political and conflict dynamics in Afghanistan. Donor governments seeking positive change in Afghanistan can approach those under the age of 30 as the most likely source of such change. International financing and political capital may be strategically focused to develop youth as a positive political, economic and social force. It is important that the international community concentrate development funding over the next 10 years on youth-oriented programming— particularly as it relates to education, enterprise and agricultural development, and civic engagement. Young Afghan advocates need support from the international community to ensure that they have the requisite space and skills to meaningfully participate in future electoral processes and in local and national peace negotiations or reintegration programs.
Topic:
Conflict Resolution, Demographics, Development, Islam, Fragile/Failed State, and Youth Culture
Political Geography:
Afghanistan

153. The Politics of Security Sector Reform in Egypt

Author:
Hesham Sallam and Daniel Brumberg
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
In Egypt, security sector reform (SSR) hinges on achieving democratic reforms, particularly the reconstitution of an elected parliament and preparation of a new constitution that defines the roles and responsibilities of military and security institutions based on transparency, accountability, and respect for civilian authorities. In this highly political process, arranging the disengagement of Egypt's military from government and the economy will be essential. Democratically elected leaders will need to consult widely while keeping an open door to reformists in the security sector. At the same time, the police and security establishments must be transformed into effective, accountable, and politically neutral law-enforcement bodies that deliver human security and protect human rights. Downsizing the security services to a number consonant with its professional mission is vital. Egypt's new president will play a central—although not exclusive—role in advancing the above aims. He will have to forge a wide societal consensus on the boundaries of SSR. He will also have to reach an accommodation with military leaders to ensure that SSR initiatives receive their support. The responsibility for advancing SSR lies with Egypt's political community. The international community can help by supporting elected officials and providing technical expertise and economic support.
Topic:
Conflict Resolution, Security, Democratization, Islam, and Regime Change
Political Geography:
Arabia, North Africa, and Egypt

154. Security Sector Transformation in the Arab Awakening

Author:
Donald J. Planty
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The Arab Awakening opened the door to democratic political change in the Middle East and North Africa (MENA). Security sector reform (SSR) is an integral component of the nascent democratic process in the region. While SSR is a long-term process, it should be a key part of institution building in the new democracies. Democracy requires security institutions that are open, professional, and responsive to public needs. The transitions to democracy are varied in nature and scope. SSR will differ by country and must be tailored to the political realities and specific circumstances of each state. The international community can foster successful SSR processes by calibrating its assistance according to the reform efforts in each country. A general or “one-size-fits-all” approach to SSR will not be successful. A sense of political powerlessness, an unresponsive bureaucracy, a general lack of opportunity, economic stagnation (including high unemployment), and repressive security forces all contributed to the Arab Awakening. As a result of the upheaval, democratic forces in several of the MENA countries are pushing for transparency and accountability in the security services. SSR must be undertaken in a holistic manner, couched within the framework of overall democratic reform and linked to other broad policies such as justice sector reform, evolution of the political process, and economic development. SSR will only be achieved if it is integrated and pursued in unison with these larger processes of democratic change. The international community, especially the United States and the European Union, need to foster democratic developments and, in particular, to support and coordinate SSR.
Topic:
Conflict Resolution, Security, Democratization, Economics, and Regime Change
Political Geography:
Europe, Middle East, Arabia, and North Africa

155. The U.S. Surge and Afghan Local Governance: Lessons for Transition

Author:
Frances Z. Brown
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The U.S. military and civilian surge into Afghanistan starting in late 2009 aimed to stabilize the country through interconnected security, governance, and development initiatives. Despite policymakers’ claims that their goals for Afghan governance were “modest,” the surge’s stated objectives amounted to a transformation of the subnational governance landscape. Three years later, the surge has attained localized progress, but it has not achieved the strategic, sustainable “game change” in Afghan subnational governance it sought. The surge has not met these objectives because its success depended upon three initial U.S. assumptions that proved unrealistic. First, surge policy assumed that governance progress would accrue as quickly as security progress, with more governance-focused resources compensating for less time. Second, surge policy assumed that “bottom-up” progress in local governance would be reinforced by “top-down” Afghan government structures and reforms. Third, surge policy assumed that “absence of governance” was a key universal driver for the insurgency, whereas in some areas, presence of government became a fueling factor. Once the surge was in motion, other miscalculations emerged: the confusion of discrete successes with replicable progress, the mistaking of individuals’ improvements with institution building, the confusion of “local” with “simple,” and the overreliance on technological solutions to address problems that were fundamentally political in nature. As the surge draws down, the U.S-Afghan Enduring Strategic Partnership Agreement represents a promising opportunity for longer-term strategic planning. As the international community moves to transition, it should exert its remaining leverage to impact select systemic issues—such as by resolving district council makeup, improving line ministries’ recurring services, and bolstering provincial administrations—rather than tactical-level ones. The international community should also prioritize a few key, attainable efforts, such as providing training that is consistent with current Afghan government functions, while avoiding creating additional structures. Finally, all the usual Afghan local governance recommendations still apply: resolving Afghanistan’s subnational challenges requires long-term commitment and systematic execution.
Topic:
Foreign Policy, Insurgency, and Governance
Political Geography:
Afghanistan, United States, and Asia

156. Lessons from Afghanistan's History for the Current Transition and Beyond

Author:
William Byrd
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
Afghanistan's history provides important insights and lessons for the 2011 to 2014 transition and beyond, but differences with the past must be taken into account. As the 1933 to 1973 decades demonstrate, the country can be stable and effectively governed, but that stability was anchored in the two pillars of traditional local governance and a centralized though weak state, both of which were gravely damaged after 1978. Given the country's history of chronic succession problems and associated conflict, the next presidential election, if successful, would be the first peaceful transfer of leadership since 1933 and only the fourth since 1747. Expectations about the pace of progress must be modest and the dangers of overly ambitious reforms leading to violent reactions recognized. Regional countries could derail peace prospects, and planning around such spoilers may be needed. The difficulties of reaching a peaceful solution during a military withdrawal, and the adverse consequences when such efforts fail, were demonstrated during the period from 1986 to 1992. The period after the Soviet withdrawal shows the potential and limitations of Afghan security forces: holding onto Kabul and other cities is probably the most that can be hoped for in the current transition. The option of arming and paying militias is dangerous because it opens the door to instability and predatory behavior. The Afghan economy is in much better shape than it was during and after the Soviet period, and a deep economic contraction in coming years needs to be avoided. Afghanistan will depend heavily on outside financial support for many years, and such support must not be abruptly cut back or stopped. Effective national leadership is critical during transitions. It is important not to overlearn from history, for example, Afghanistan's problematic experience over the past half-century with political parties, which are essential to successful democratic systems.
Topic:
Conflict Resolution, Development, Islam, War, and Fragile/Failed State
Political Geography:
Afghanistan and Asia

157. How Business Can Foster Peace

Author:
Raymond Gilpin, John Forrer, and Timothy L. Fort
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The business sector can promote prosperity and stability in conflict-prone and conflict affected regions through good corporate citizenship, but operating in these high-risk, high-reward environments is fraught with great difficulty. Many firms develop risk mitigation strategies designed to minimize exposure and cost without accounting for costs to the country, its population, and the environment. Poor risk management strategies combine with endemic corruption and myriad market failures and distortions resulting from weak economic governance to reinforce aspects of the political economy that could trigger and sustain violent conflict. Effectively addressing these failings could reduce business costs, increase efficiency, and improve governance and livelihoods in fragile regions. U.S. government policy documents, such as the Quadrennial Defense Review, Quadrennial Diplomacy and Defense Review, and National Security Strategy, allude to a potential role for firms in furthering stability and promoting peace but do not clearly analyze the complexities such endeavors entail or identify workable solutions. Strategies to capitalize on the immense potential of the business sector to foster peace must account for the size of firms, whether they are state or privately owned, which industries they are involved in, and their interconnectedness within supply chains. Key components of effective strategies include crafting incentives to reward investing firms that espouse good corporate citizenship, strengthening international initiatives that promote transparency and contain corruption, developing initiatives to more fully incorporate the local economy into global value chains, and introducing mechanisms to forge global consensus on appropriate conflict-sensitive business practices.
Topic:
Conflict Resolution, Political Violence, Development, Poverty, War, and Fragile/Failed State
Political Geography:
United States

158. Governance Reforms in Pakistan's Tribal Areas: The Long Road to Nowhere?

Author:
Joshua T. White and Shuja Ali Malik
Publication Date:
10-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Pakistan's Federally Administered Tribal Areas (FATA) remain mired in an archaic century-old system of indirect governance that provides space in which militant movements have thrived. President Asif Ali Zardari recently announced the FATA Local Governance Regulation 2012, establishing a system of local councils in the troubled tribal region. Although the regulation is disappointingly vague, and retains the sweeping prerogatives of the central government, it appears to have been driven in part by the army's interest in building civilian governance capacity in conflict-torn areas. The governments of Pakistan and the United States, along with local and international stakeholders, should advocate for continuity of implementation, insist on party-based local council elections, encourage experimentation within the bounds of the regulation, link the new councils to existing development structures, press the government to articulate a longer-term political vision for the FATA, and be realistic about the necessity of the army's active involvement in shaping governance policy in the tribal areas.
Topic:
Political Violence, Corruption, Government, Islam, and Counterinsurgency
Political Geography:
Pakistan, United States, and South Asia

159. Middle East in 2013: Promise and (Lots of) Peril

Author:
Robin Wright and Garrett Nada
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
The Middle East faces even bigger challenges in 2013 than it did during the first two years of the so-called Arab Spring. So far—a pivotal caveat—the Arab uprisings have deepened the political divide, worsened economic woes and produced greater insecurity. Solutions are not imminent either. More than 120 million people in Egypt, Tunisia, Libya and Yemen have experienced successful uprisings that ousted four leaders who together ruled a total of 129 years. But more than half of the Arab world's 350 million people have yet to witness any real change at all. Defining a new order has proven far harder than ousting old autocrats. Phase one was creating conditions for democracy. Phase two is a kind of democratic chaos as dozens of parties in Egypt, Libya and Tunisia do political battle (and in some cases physical battle) over constitutions. Ancien regimes have not totally given up, as in Yemen. The cost of change has exceeded even the highest estimates, as in Syria. So most Arabs are probably disappointed with the “Arab Spring” for one of many reasons. Nevertheless the uprisings were never going to happen in one season. This is instead only the beginning of a decades-long process—as most in the West should know from their own experiences.
Topic:
Conflict Resolution, Political Violence, Democratization, Post Colonialism, and Regime Change
Political Geography:
Middle East, Libya, Yemen, Arabia, Egypt, and Tunisia

160. Political Economy and Conflict Dimensions of Afghanistan's Mineral Resources: A Preliminary Exploration

Author:
William Byrd
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Afghanistan has sizable underground mineral resources, which have potential positive economic impacts but also possible downsides—the so-called “resource curse” often involving negative macroeconomic, developmental, fiscal, governance, political and conflict effects. The success of the broader political transition in coming years as well as regional geopolitical factors will have a major influence on prospects for Afghanistan's underground resources. For “mega-resources” such as the Aynak copper and Hajigak iron deposits, the Afghan government has conducted credible tendering to ensure that contracts with foreign companies are on favorable terms for Afghanistan. Good-practice approaches for mega-resources should continue and be further strengthened, but there will probably be further delays in exploitation, and realization of potential will take much time. Exploitation of other largish and medium-sized resources may involve joint ventures with politically-connected Afghan firms and deals with local strongmen, or sometimes criminal networks with linkages to corrupt officials and insurgents. Spreading patronage can reduce short-run conflict risks, but there are risks of corruption, and conflicts could arise over time. For these resources, priorities include transparent contracting and clarity about ownership of companies; setting basic financial parameters for different resources (e.g. royalty rates) to reduce the risk of overly favorable arrangements for extracting entities; and addressing criminal elements and associated corruption. For smaller, concentrated, high-value resources (notably gemstones), informal exploitation using crude techniques is typically combined with illicit export trade, and local strongmen are involved, which can mean periods of stability but also conflicts when bargains are reopened or new actors get involved. The way forward for these resources includes gradually improving and regularizing the framework; setting low royalty rates to encourage formalization of existing activities rather than leasing resources to outsiders; technical assistance to promote more effective extraction; and encouraging processing and value addition within Afghanistan. Finally, further analytical work is required to better understand the political economy and conflict ramifications of mining in Afghanistan.
Topic:
Conflict Resolution, Development, Economics, Political Economy, and Natural Resources
Political Geography:
Afghanistan