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New Convergences in Poverty Reduction, Conflict, and State Fragility: What Business Should Know

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Abstract

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.

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Abbreviations

BOP:

Bottom/base of the pyramid

CDR:

Community-driven reconstruction

CSR:

Corporate social responsibility

DDR:

Disarmament, demobilization, and reintegration

DFID:

Department for International Development (of the United Kingdom)

EITI:

Extractive Industries Transparency Initiative

HDI:

Human Development Index

ICT:

Information communication technology

IDP:

Internally displaced person

IMF:

International Monetary Fund

KPCS:

Kimberly Process Certification Scheme

MDGs:

Millennium Development Goals

MDG1:

Millennium Development Goal One

NIE:

New Institutional Economics

OECD:

Organization of Economic Cooperation and Development

PTC:

Peace through Commerce

PRS:

Poverty Reduction Strategy

SLA:

Sustainable Livelihoods Approach

UNDP:

United Nations Development Programme

UNHCR:

United Nations High Commission for Refugee

USAID:

United States Agency for International Development

WFP:

World Food Programme

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Correspondence to Borany Penh.

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The views expressed in this paper do not represent the official views of the U.S. Agency for International Development or the U.S. Government.

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Penh, B. New Convergences in Poverty Reduction, Conflict, and State Fragility: What Business Should Know. J Bus Ethics 89 (Suppl 4), 515–528 (2009). https://doi.org/10.1007/s10551-010-0404-6

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