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Business environment reforms in fragile and conflict-affected states: From a transactions towards a systems approach

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Abstract

Our objective is to advance the understanding of the nexus between business environment reform (BER) and conflict, fragility, and underdevelopment. We examine the evidence and the lessons of BER in fragile and conflict-affected states (FCAS), based on the experience of four African countries (Rwanda, Sierra Leone, Uganda, and Ethiopia) that have or are transitioning from a fragile environment to greater stability and more sustained economic growth. We use a qualitative case study approach that draws on several data sources to inform its analysis, including one-on-one interviews, roundtable focus groups, and an analysis of documents, reports, and data. A total of 83 respondents participated in our research. We develop a systems approach rather than a transactional approach to recognize the complex network of interconnected and interacting business interests, agendas, and systems in FCAS. We argue that BER has the greatest potential to advance achievement of sustainable development when it is attentive to three objectives at the same time: stimulating broad-based economic growth, expanding economic opportunity in formal and informal markets, and addressing drivers of conflict and fragility. The implications for international businesses entering or operating in FCAS are substantial and may require atypical capabilities.

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Acknowledgement

This paper is based on research funded by the UK Department for International Development. The normal disclaimers apply.

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Authors and Affiliations

  1. University of Sussex Business School, University of Sussex, Jubilee Building, Brighton, BN1 9SL, UK

    John M. Luiz

  2. University of Cape Town, Cape Town, South Africa

    John M. Luiz

  3. Africa Centre for Dispute Settlement, University of Stellenbosch Business School, Carl Cronjé Drive, Bellville, Cape Town, 7530, South Africa

    Brian Ganson

  4. Centre on Conflict, Development and Peacebuilding, Graduate Institute of International and Development Studies, P.O. Box 1672, 1211, Geneva 1, Switzerland

    Achim Wennmann

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Accepted by Rob van Tulder, Area Editor, 23 June 2019. This article has been with the authors for two revisions.

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Luiz, J.M., Ganson, B. & Wennmann, A. Business environment reforms in fragile and conflict-affected states: From a transactions towards a systems approach. J Int Bus Policy 2, 217–236 (2019). https://doi.org/10.1057/s42214-019-00030-z

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