Nepal’s with the active support of sections of

Nepal’s transition from war to peaceshows the complexities in political and economic causes, as well as legacies,of crisis that shape chances of success, both for the economic recovery andpeace building.

Within this view, good and functioning relationships need to becreated between different parties and actors, including government, developmentagencies, and civil societies and government. International consensus isemerging that the business sector in particular requires to be brought in toperform a central role in economic recovery after crisis so as to support thetransition to peace, due to the weak government capacity, and very limiteddevelopment agency time frames.1.1SIGNIFICANCE OF THIS STUDYThisstudy explores how the private and business sector can give positivecontributions to peace-building and prevention of conflict, and that positivebusiness/private sector role can be improved, supported and enhanced. It recognizesthat the private sector is found in all conflict ridden situations and has thecapacity to both prevent and contribute to conflict, the outcome of which canbe surely affected by support from external bodies.

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  It argues that private/business sectordevelopment in very fragile and state affected by conflict require specialpolicies and support, given the backdrop of the crisis caused by conflict andthe high chance of a return to violence. This paper discusses and analyzes therole of the private/business sector that includes informal, formal, and illegalactors; diasporas; and regional and multinational players in conflict riddenstates, using Nepal as a case study.1.2ARGUMENTSOver the ten years,there has been an ongoing debate concerning the specific role and duty of theprivate/ business sector in crisis and links between many private businessesand organized crime. Much of this argument has been projecting the harmfuleffects of many private sector activities like logging and mining in certainstates and regions.

However, there also is an obvious disparity to privatesector participation in organized criminal activities such as dealing drugs andarms trading including trade in endangered species of animals. Such activities leadto further conflict and further weakening of already fragile institutions.Often, these criminal activities occur with the active support of sections ofthe military and government bodies in the state, toiling with the integrity ofthese institutions. Furthermore, since activities such as this are focused oncontrol


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