Why better trade builds lasting peace
‘By 2030, 86% of the world’s poor will be living in countries classified as fragile and conflict-affected. We cannot sit on the sidelines as lives and livelihoods are at stake,’ Dorothy Tembo, ITC Deputy Executive Director.
When conflicts break out, people often lose their homes, businesses struggle to stay afloat, and local institutions can’t always step in with the support required.
In these areas, research by the International Trade Centre (ITC) shows that small businesses – often run by just one person – account for 90% of the entire private sector. When these entrepreneurs receive support to become more competitive, they’re 40% less likely to fail.
At the Public Forum, the World Trade Organization’s (WTO) largest outreach event, ITC brought together experts to discuss how best to support entrepreneurs in conflict environments.
‘There are no easy solutions — and no one-size-fits-all strategies,’ Tembo said at the 13 September panel. The need for adaptability came up again and again.
Ambassador Nina Tornberg, Permanent Representative of Sweden to the WTO said her country incorporates market systems into their projects, providing durable solutions in fragile settings. That work to change systems doesn’t remove the need for short-term humanitarian assistance. Both must happen in parallel, she said.
Kitrhona Cerri, Director of the TASC Platform (Thinking Ahead for Society Change), said that trade can alleviate challenges faced by businesses in vulnerable communities. If governments, businesses and international organizations work together, they can reform policies to open up markets so that everyone can participate.
What does this look like in practice?
In recent years, ITC has expanded its work in areas affected by conflict. Iraq is one of the countries benefitting from this inclusive approach to small business development. This also includes ITC’s support for Iraq’s WTO accession process, helping the country align its trade policies to create a more conducive business environment and open up new opportunities for businesses.
Tharwat Akram, Deputy Director General in the Iraq Ministry of Trade, said that by working together with different groups – including development agencies – vulnerable communities can find ways to take a greater role in the economy.
‘The private sector needs to be a real partner across the coordination activities,’ he said.
One example of that cooperation is work that ITC has done with the Visa Foundation and Sweden. Together, they developed a method for innovative work in conflict areas that considers humanitarian, development, and security needs.
This approach ensures that ITC projects don’t cause harm inadvertently, while creating opportunities for those most in need. It draws from what ITC learned while doing projects in Kenya and in The Gambia’s Central River Division, where climate change threatens communities.
