Multinationals and Fragile States

Project Members: Hany Besada

CIGI's research on Multinational Corporations (MNCs) explores how MNCs have been affected by civil conflicts, and to what extent they have contributed toward the destabilization of the political, economic and social fabric of the fragile states in which they operate. An analysis of the impact of MNC investment on conflict should stimulate further discussion on inter-sectoral initiatives, aimed at involving MNCs as partners in conflict prevention.

Although much has been written about fragile states in recent years, research done on the nature of multi-national corporation investment in conflict-prone countries is often limited and anecdotal. More importantly, specific analyses on potential linkages between the corporate activities of MNCs and the outbreak of civil unrest in fragile states are in short supply. In addition to outlining and analyzing risk assessment data aimed at anticipating the eruption of violence while monitoring peace processes and peace building measures in conflict-prone states, CIGI's Fragile States research project aims to interrogate and add to the literature reviews on the impact that MNC investment has on conflict.

A closer examination of the impact of the activities of MNCs on fragile states would help to create greater clarification and understanding of their perceived responsibilities in different conflict situations. Inter-sectoral initiatives would provide the necessary guidelines and support to companies that are implementing conflict prevention strategies. Innovative attempts to involve MNCs in conflict prevention strategies should enrich the debate surrounding the issue of how to best formulate specific and relevant, yet realistic conflict prevention strategies when dealing with violent conflict and state failure.

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