The business-peace nexus describes how "Business for Peace" reconfigures the traditional public/private divide in global governance. Theorized by Jason Miklian and Peer Schouten (2020, Journal of International Relations and Development), the framework argues that businesses are not neutral actors in conflict zones — they actively shape peace and conflict dynamics through five mechanisms: economic stabilization, social cohesion, political legitimacy building, rule of law strengthening, and security enhancement.
The business-peace nexus identifies five primary ways businesses reconfigure governance and peace dynamics in conflict-affected regions. First, economic stabilization occurs when private sector investment generates reliable income and employment, reducing the appeal of conflict participation. Second, businesses facilitate social cohesion by creating cross-community market interactions and shared economic interests that bridge ethnic and political divides.
Third, businesses generate political legitimacy for peace processes by demonstrating economic returns to peace and creating constituencies that benefit from stability. Fourth, formal business operations require institutional frameworks and rule of law, incentivizing governments and non-state actors to develop functional legal systems. Fifth, businesses enhance localized security by creating economic disincentives against violence and establishing economic governance structures that reduce crime and instability.
This framework challenges the traditional separation between corporate responsibility and conflict resolution. Rather than viewing business participation in fragile states as purely extractive or neutral, the nexus approach recognizes that all business activity is inherently political. Companies operating in conflict zones inevitably shape the conditions for peace or continued violence.
The framework has implications for international development agencies, investors, and policymakers who increasingly recognize that sustainable peace requires private sector engagement. Understanding the business-peace nexus provides a roadmap for structuring that engagement strategically rather than haphazardly.
Miklian, Jason and Peer Schouten. "The Business–Peace Nexus." Journal of International Relations and Development, vol. 23, no. 3, 2020, pp. 569-589.
Miklian, Jason and Peer Schouten. "The Business–Peace Nexus." Journal of International Relations and Development, vol. 23, no. 3, 2020, pp. 569-589.
The Business-Peace Nexus is a framework developed by Jason Miklian and Peer Schouten (2020) in the Journal of International Relations and Development. It describes how 'Business for Peace' reconfigures the traditional public/private divide in global governance by arguing that businesses actively shape peace and conflict dynamics through five mechanisms: economic stabilization, social cohesion, political legitimacy building, rule of law strengthening, and security enhancement.
The framework challenges the traditional separation between corporate responsibility and conflict resolution. It argues that businesses are not neutral actors in conflict zones—all business activity is inherently political. Companies operating in fragile states inevitably shape the conditions for peace or continued violence, making strategic private sector engagement essential for sustainable peace.
The five mechanisms are: (1) economic stabilization through reliable income and employment, (2) social cohesion via cross-community market interactions, (3) political legitimacy for peace processes, (4) institutional development and rule of law requirements, and (5) localized security through economic disincentives against violence.