Threats and Opportunities of Doing Business in Conflict Zones
The increasing instability in the Middle East, precipitated by the Arab Spring, necessitates global firms to better accentuate political risk and conflict, including terrorism and kidnapping for ransom, in their daily operations.
The increasing instability in the Middle East, precipitated by the Arab Spring, necessitates global firms to better accentuate political risk and conflict, including terrorism and kidnapping for ransom, in their daily operations. Clearly, there is a growing recognition that peace – largely, the absence of internal and external violence – enhances economic activity, while conflict has the opposite effects. Countries suffering conflict cannot abandon economic activity until violence subsides. Still, impediments to doing business exist in conflict zones more so than elsewhere. Even in countries where conflict is pervasive, some positive economic activity is engendered. Against this backdrop, it is critical to highlight which policies, activities and organizations tend to contribute to economic activity in conflict zones. In doing so, governments, industry, nongovernmental organizations and the populace can focus on such productive efforts in the economic arena, and, thereby, inject some positive features in conflict zones.