No abstract

Rhetoric from both domestic and international policy actors equated foreign direct investment and robust business growth in Sierra Leone with an exit from fragility. To the contrary, the trajectory of private sector development experienced from 2002 to 2014 contributed to Sierra Leone's socio-political challenges, replicating in the contemporary period dynamics of grievance and exclusion that were root causes of the country's endemic instability and then civil war. This study challenges the practices and refines the ideas underlying the prevailing vision for business-led development in Sierra Leone and other fragile states. It links extensive documentation of the role of business in Sierra Leone with peacebuilding and statebuilding frameworks to present a novel perspective on the mechanisms of action of private sector development in contexts of persistent fragility. In doing so, it provides a foundation on which further theoretical propositions for the ordering of business-state relations in support of transitions from fragility to peaceful development can be developed and tested.

The literature on 'conflict-sensitive' business practices has burgeoned in recent years. Yet there remains a critical knowledge gap on the value of incorporating 'conflict-sensitivity' systematically to business environment reforms (BER) advanced by the public sector and its international partners. Wars and protracted conflicts reshape market environments in deeply distortive ways. The resulting transformation often enlarges the informal sector at the expense of formal state institutions, while it also reinforces high dependence on foreign aid and investments. Simultaneously, policy communication channels also become disrupted and unreliable. The existing BER literature remains generally insensitive to these peculiarities. Drawing on a case study of Sierra Leone, this article explores the implications of these omissions and shows that BER may even bring about adverse effects when the peculiarities of these conflict-generated market distortions are neglected. In order to avoid negative repercussions, conflict-sensitive BER needs to take into account the multiplicity of business environments and the heterogeneity of business actors operating within conflict-affected nations.