Gatton.uky.edu



Mosaic of Business Social Responsibility South Asian Conflict Zones:

Evidence Sri Lanka, Nepal and Pakistan

Shahid Jan & Nancy Brown Johnson

1Associate Professor & Chairman, Department of Management Sciences, Abdul Wali Khan University Mardan 2Associate Professor & Executive Director of International Affairs, Department of Management, Gatton College of Business & Economics, University of Kentucky

Social responsibility is an ethical framework which suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. The term “corporate social responsibility” is still widely used even though related concepts, such as corporate citizenship, business ethics, stakeholder management, corporate responsibility, and corporate social performance, Stakeholder Relations Management, Corporate Environmental Management, Business and Society and Corporate Sustainability are vying to replace it. (Hopkins, 2002; Dyllick & Hockerts, 2002; Langer & Schön, 2003; Weymes, 2004) . Therefore, with the march of globalization in recent years, corporations, especially large ones, have become a key focus of attention in the sustainability debate (Cannon, 1994; Hart,2000; Elkington, 2002; 2005; Babiak & Trendafilova, 2011).

Once it was a time when Milton Friedman’s phrase “business of business is business” was dominating the business world and corporations were focused on multiplying shareholders wealth. The sole legitimate purpose of the business was creating shareholders wealth even at the cost of other stakeholders such as; customers, state, suppliers, state, society and the social wellbeing of the consumers. Milton’s claim could not withstand the criticism by the opposing school not merely on moral grounds rather proved to be negative even on marketing and operational logics. According to the opposing to Milton’s school; businesses are for society and their survival and growth hinges upon the health and survival of the society itself and state ability to regulate. The origin of term Corporate Social Responsibility (CSR) in 1960s, the concept was more motivated by social considerations, not economic ones therefore; the firms were substantially philanthropic (Freeman, 2010). Since, then the concept has been evolved in to a more wholesome ethical framework which suggested that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large, and maintain a balance between the economy and the ecosystems. With the speedy march of globalization in recent years, corporations, especially large ones, have become a key focus of attention in the sustainability debate (Cannon, 1994; Hart,2000; Elkington, 2002; 2005; Babiak & Trendafilova, 2011), Today the term CSR is still being widely used through related concepts such as; corporate citizenship, business ethics, stakeholder management, corporate responsibility, and corporate social performance, Stakeholder Relations Management, Corporate Environmental Management, Business and Society and Corporate Sustainability are vying to replace it. (Hopkins, 2002; Dyllick & Hockerts, 2002; Langer & Schön, 2003; Weymes, 2004) .

There is no denying the fact that the primary responsibility for preservance and maintenance of peace, security and socio-economic development of the area rests with the states especially in the areas falling in zones of conflict. However, the governments are always short of achieving its social goals owing to scarcity of their resources. Therefore, it is expected that corporate world also need to realize its moral and ethical responsibility of sharing its resources with government in deliverance of this gigantic task. And this moral and ethical call of social responsibility is much louder if the society, especially from under developed world, is suffering from the devastating effects of war or natural calamities or any form of humanitarian crises and state resources are likely to fall short of managing desired ends. In late 2001, the trade association of Sri Lanka first mobilizes society to demand a peaceful end to the long-running conflict and even engaged as brokers between the conflicting sides in ways similar to traditional conflict resolution. Deutsche Post World Net has set up a partnership with the United Nations Development Program and the United Nations Office for the Coordination of Humanitarian Affairs to provide “the management of complex logistics and transportation processes” to respond to natural disasters. Microsoft has set up IT systems for public and civil society organizations to coordinate relief efforts, and Coca- Cola has provided bottled water to people in disaster regions.

Research intended to investigate the application of the principles and practices of Corporate Social Responsibility (CSR) by companies working in zones of conflict and determine their contribution in improving relations between conflicting parties, decrease tensions with stakeholders, address underlying conflict causes and, by extension, contribute to peace through policy dialogue and peace advocacy. The research paper focuses on CSR activities undertaken by the corporations in Siri Lanka and Nepalese areas of conflict.

CSR: An Overview

Corporate Social Responsibility (CSR) is a concept whereby companies undertake certain responsibilities towards society independent of their business concerns. Although the activities may not be directly related to their business, there is an indirect impact on the business which is a positive one. For example: there is a positive image of the company in the eye of the public and the employees’ morale is boosted, which in turn has a positive effect on the productivity of the company. Corporate Social Responsibility (CSR) has become the mainstream prescription by business and governments for dealing with social and environmental ills. It is a voluntary form of self regulation that aims to tackle everything from human rights and labor standards to limiting carbon dioxide emissions that lead to climate change. But because CSR ultimately lies within the framework of markets, and requires market based incentives for companies to invest in such programs, it ultimately falls prey to the vagaries of the market. Social responsibility refers to the obligation of a firm, beyond that required by law or economics, to pursue long-term goals that are beneficial to the society. The definitions of CSR are many. Definitions may refer to ethical behavior, sustainable development, the environment, and to philanthropic ideas. Social responsibility is a synonym for good citizenship. It is important that organizations are committed to fulfilling expectations and moral obligations at the level of society. This means that right conduct takes into account the welfare of the larger society. CSR can be seen as a concept which brings benefits to both business and to the community. It is a win-win situation. Its ambit has to be explored fully in order to tap its potential. According to Caroll () a corporation should undertake following responsibilities:

• Economic: earn a fair return on capital to satisfy the shareholders, deliver value for money, product/services to satisfy customers, create new jobs and new wealth for the business, and promote innovation.

• Legal: comply with the provisions of law of the .land

• Ethical: be moral, fair, just, respect people’s rights, avoid harm or social injury and prevent harm caused by others.

• Philanthropic: perform beneficial activities for society. These types of CSR activities are; “humanitarian” or “altruistic” and the organizations use it as a marketing tool to enhance their image.

CSR In Sri Lankan Zone of Conflict

From 1983 to 2009, the Sri Lankan government and the Tamil Tigers engaged in a bloody conflict. During this time, different actors attempted to facilitate negotiations and establish ceasefires. Nevertheless, all efforts to create sustainable peace failed. In 1994, for instance, President Kumaratunga was elected for his promise to negotiate with the Tigers, and achieved a truce in January 1995. Just three months later the ceasefire ended when the LTTE sank Sri Lankan navy vessels and shot down two planes. The Norwegian government also stepped in to facilitate peace negotiations, successfully establishing a Ceasefire Agreement (CFA) in February 2002. Norway led six further rounds of talks, but the process broke down in April 2003. Additionally, Norway hosted another round of peace talks in Geneva in February 2006, but by April both sides were engaging in “major military operations.” By August, there was “full-scale war.” A steady government offensive, beginning in the east, characterized the final period of the war. By July 2007, the government had “seized control of the country’s east”, and made a “decisive shift” toward the north. Fighting continued, and in January 2008 the Sri Lankan government officially withdrew from the CFA. In March 2009, both sides reported a “bloody escalation in the fighting in the country’s north-east.” Even as the fighting entered April, and the LTTE continued to suffer defeats, they refused to surrender. On 15 May 2009, the Sri Lankan President Rajapaksa declared the war to be in its final stage, with the final offensive sure to end within 48 hours, declaring the following day that the LTTE had been defeated. This claim was substantiated when, on 17 May, the Tigers announced that the battle had “reached its bitter end.” The final stage of the conflict resulted in approximately 40,000 deaths and over 280,000 internally displaced people.

Sri Lanka, an island in the Indian Ocean, is situated between 6 and 10 degrees north of the Equator. Owing to its location Sri Lanka has a predominantly tropical climate and the country mostly experiences natural hazards such as; floods, landslides, drought and cyclones , natural hazards, windstorms, coastal erosion, environmental degradation and deforestation. The impact of each hazard varies, and leaves a lasting impact in most cases on the people and on the national budget, disrupting life and livelihoods.

CSR Activities of the Private Sector: The main forms of CSR activity observed in Sri Lanka can be categorized as follows:

a. Philanthropic and charitable activities

1) The Ceylinco group, which is a conglomeration of 200 subsidiaries, has a trust fund called Sarana , (which means ‘help’). Each employee of the 200 subsidiary companies contributes monthly to the fund, which allocates the collected money to various community service projects. The fund contributes towards food, clothing and shelter for the poor, gives assistance for surgical operations and towards relief in times of disasters such as floods, landslides and droughts. It is also instrumental in the maintenance of an old people’s home, which was built by the fund.

2) MSM Networks, a communications company, has a similar fund, which is called ‘Change’. Monies for this fund are collected from the customers of the company who donate a percentage of their telephone bill: this figure is matched by the company. The sum total is allocated to the fund. The monies are utilized for government-approved charities such as the Deaf and Blind School and the Child Protection Authority. The fund has also sponsored local disabled athletes in the Para-Olympic Games.

3) Hatton National Bank companies and Ceylon Tobacco Company have ‘village adoption’ schemes, with the objective of upgrading the lives of villagers. The villagers are educated in self-employment, they are given small loans to initiate work and a market is found for their products. Three of the companies have contributed to the construction of cardiac units for hospitals, and donated money for hospital equipment such as CAT scan machines.

4) Ceylon Tobacco has concentrated on the development of the arts. Company has been at the forefront in this area. It has been instrumental in giving people who are starting out as artists a helping hand, by giving them an opportunity to exhibit their paintings. This company has also helped farmers by sharing ‘best practices’ in agricultural techniques with them.

5) Indra Traders, has been assisting the displaced persons living in refugee camps, due to the civil war. The company engaged in importing vehicles, has concentrated on helping villages which have been adversely affected by terrorist activities. This company has been transporting essential goods to the refugee camps. There was one instance where a consignment of toys was taken to the children in the refugee camps.

b. Environmental conservation

In general, the companies which engage in these activities are businesses which have an adverse impact on the environment. Their initiatives can be responses to adversarial pressures from the authorities and public. Companies involved in the hotel trade were found to be the main proponents of this type of activity. Most of the hotels in Sri Lanka are located along the coastal belt, and most of these companies have on-going coast conservation projects. They collaborate with the Ministry of Environment and have regular discussions with them with regard to their projects.

1) Aitken Spence is a company involved in the hotel trade. One of its hotels, the Kandalama Hotel, has received the Green Globe Award from the ‘Green Globe’ Environmental Community service in the UK (an environmental organization affiliated to the World Travel and Tourism Council: (WTTC). The award was received in 1997. This award is given after a stringent annual audit is made of the hotel’s environmental practices. A certificate is given declaring the hotel as an eco-friendly hotel. This certificate is subject to review each year. Kandalama Hotel has been successful in maintaining this award for 5 years. Companies in the manufacturing sector have anti-pollution programs. They are often collaborators with the relevant government authorities which are responsible for river and air pollution. Aitken Spence Printing and Garments is one company involved in these activities. It organizes awareness campaigns for its employees. The company deals with chemicals, and has strict procedures regarding the disposal of these chemicals. Its printing company has a policy whereby a percentage of recycled paper has to be used in the production of paper. Apart from the conservation work directly related to its business, the company has other on-going environmental projects. Aitken Spence has a container yard situated in Wattala, where a lake had been subject to pollution. With the assistance of the Environment Protection Authority (a body within the Environmental Ministry), Aitken Spence has been able to successfully restore this lake. It has also implemented procedures to safeguard the lake from future contamination. Another project undertaken by the company recycles garbage in this area.

2) CIC Company engaged in the manufacture of chemicals has addressed environmental concerns by manufacturing a range of industrial safety equipment, solar water heaters, effluent treatment chemicals and specialized plastic bottles. Although these activities are connected to the business, it is eco-friendly business.

3) Ceylon Tobacco Company has conducted research in order to discover cost-effective methods of soil conservation. This company has introduced an inexpensive method of conserving the soil, as part of an extension service to their tobacco out-growers. The results of the research have been made available to the public, and farmers have been educated in using this technique. The Ceylon Tobacco Company sponsored a well-known environmentalist, Rohan Pethiyagoda to research the bio-diversity of Sri Lanka. His findings were published and made available to the public.

4) ODEL, which is a shopping mall in Colombo, has taken initiatives in creating public awareness on environmental conservation. It carries out campaigns to clean Colombo city and the beaches. It promotes environmentally friendly products, and runs campaigns to save fauna and flora in Sri Lanka.

c. Public awareness

Swarnavahini, which is a private television channel, has been active in informing the public on various social issues and on Corporate Social Responsibility and Natural Disaster Reduction in Sri Lanka – natural disasters, their effects on people, and how the public can be of help to afflicted people. It has a team called Helidarawwa (revelations), which carries out investigations. Some private insurance companies also use the media for the purpose of building public awareness. Often the messages sent out are related to their business, e.g. road rules and safety messages. Companies engaged in the pharmaceutical business have been collaborating with the media in educating the public about various epidemics. Sri Lanka experienced an outbreak of dengue fever of epidemic proportions in 2001, and there were many sponsored programs about this disease. These public education messages also promoted company products such as medicines and mosquito repellents. Sri Lanka being a country with literacy level of over 85%, and a fairly high percentage of the rural and urban populations having access to varied communication channels, the public response to such awareness-raising is substantial. During the drought crisis in 2001, calls for help through private TV and radio channels resulted in a tremendous public response in support of emergency relief.

d. Corporate Sponsorships

There are companies that extend support to young people’s education. CIC, which is engaged in the manufacture of chemicals, has been sponsoring students’ education for over 2 decades.. There are 5 scholarships per year under this scheme, for university students in various locations in the country including Jaffna in the North. Apart from these 5, three more scholarships have been given to employees ‘children. Previously, the company ran a scholarship program with the Science Faculty from which the graduates found employment in the company itself.

THE NEPALESE CONTEXT: Armed Conflict

Nepal was historically governed by a series of royal dynasties until the early 1990s when several political parties launched a popular pro-democracy movement, the Jana Andolan (People’s Movement). Following a turbulent period of street protests, multiparty democracy was restored in May 1991. Traditionally, social life in Nepal has been highly stratified, marked by caste and other hierarchies which shaped much of the country’s social, economic and political life. The dramatic political changes of 1990 raised popular expectations of social progress and greater equality, but although some statistical indicators from the early 1990s show positive developments in the economy, the living conditions of most people remained poor. Around this time, some analysts were noting that deep-rooted socio-economic conditions favorable to armed conflict existed in Nepal, and warned of the possibility of a radical movement rising up to channel longstanding grievances. In March 1995 the newly named Communist Party of Nepal (CPN Maoist) began to draw up plans to launch an armed struggle, the so-called “People’s War”, against the State. On 4 February 1996, the CPN Maoist submitted a 40-point demand to the Government which addressed a wide range of social, economic and political agendas, and warned that a militant struggle would follow if the demands were not met. Just one week later, on 13 February 1996, the CPN launched an armed insurgency against the Government. Over the course of the following decade, what was initially regarded as a minor problem of law and order in a distant part of rural Nepal, developed into an entrenched and often brutal armed conflict that affected the entire country. Violations and abuses by both government Security Forces and by the CPN (Maoist) were widespread throughout the conflict; conflict related killings were recorded in all but two of Nepal’s 75 districts, Manang and Mustang. In May 2005, OHCHR established its then largest stand-alone field mission in Nepal following the signature of an agreement with the Government. Human rights monitoring teams immediately began fact-finding missions and investigations into allegations of human rights violations by both parties to the conflict. In addition to the serious violations and abuses of international human rights and humanitarian law – including unlawful killing, torture, enforced disappearance, sexual violence and long-term arbitrary arrest – thousands of people were directly or indirectly affected by the conflict in other ways. Many individuals and families were displaced from their homes; there were large-scale disruptions to education, health and basic government services across the country; economic hardships were further exacerbated by the conflict; and instability and a climate of fear were widespread.

CSR in Nepal

a. Laxmi Woodcraft Udyog trains and hires people suffering from leprosy.

b. Formation Carpet, a company that highlights ‘business with ethics’ and is ‘fueled by a focus on welfare of the employees and conservation of the environment’ was awarded for being a model factory in 2006, and received international recognition. The company started a crèche and educational facility Hoste Hainse for children of their weavers which over the years also became a scholarship fund, and has now developed into an organization of its own supporting education of 1500 children around the country.

c. Dabur Nepal, an independent company from the Dabur Group in India has a medicinal plant project as part of its CSR aimed at preserving natural reserves in Nepal, which they state aims to provide modern technology for cultivation of required medicinal herbs of Himalayas to the farmers’ through its state-of-the-art Greenhouse facility.

d. Chaudhary Group reduced imports of commodities and herbs to foster the value chain locally.

e. Label STEP initiative (by a group of carpet traders in the West) undertook CSR workshops to bring together stakeholders in the carpet industry in Nepal(entrepreneurs, employees, authorities and trade unions) to achieve a consensus in minimum wages for weavers which was considered a ‘breakthrough for fair carpet trade.

.Recent Earthquake

The April 2015 Nepal earthquake (also known as the Gorkha earthquake) killed more than 8,800 people and injured more than 23,000. It occurred at 11:56 NST on 25 April, with a magnitude of 8.1M.  It was the worst natural disaster to strike Nepal since the 1934 Nepal–Bihar earthquake. Relief and rehabilitation provisions made by the various businesses at a glance are:

a. USAID: Provided $1 million in emergency financial support.

b. AmeriCares: The group raised $750,000 to support relief efforts in Nepal.

c. American Red Cross: Provided $300,000 initial contribution.

d. Save the Children: Donated £300,000 ($454,000) in emergency aid.

e. Christian Aid: Immediately sent £50,000 ($76,000) in aid. It also raised £124,000 ($188,000) from donations.

f. Oxfam: The British aid agency said online donations totaled £500,000 in Great Britain and $1 million in the United States.

g. Coca-Cola: The beverage giant said it is working to provide bottled water to survivors as soon as possible.

h. Pepsi: Is also donating bottled water and food.

i. Kellogg: The food company said it donated $200,000 to the World Food Program

j. Toyota: Making a combined donation of 10 million yen, or about $84,000. that is earmarked for Nepal.

k. Facebook: The social network has developed a new tool called Safety Check. The simple tool sends messages to people who are in Nepal, urging them to click a button to let their Facebook friends know they're okay.

l. Google: The search engine revived its "Person Finder" tool. The tool helps people search for and post information about missing friends and family in the disaster zone.

m. Microsoft: Has pledged $1 million in cash and in-kind donations. It is also offering free Skype calls to and from Nepal.

n. UPS: Pledged $200,000 to various charities working in Nepal.

o. Communications companies: T-Mobile, Sprint, Verizon, Vodafone Time Warner Cable and others have waived fees for calls in Nepal.

p. Payment providers: Apple, PayPal, Square Cash are waiving fees and taking other steps to facilitate donations

q. Verizon announced it would both waive texting and calling charges to Nepal, as well as matching employee donations to disaster response agencies American Red Cross and World Vision.

r. Time Warner Cable, Microsoft’s Skype unit and Vonage, put into place free calling to Nepal.

s. MetLife, TD Bank, Panasonic, Lifeway Foods made large donations to Nepal, and increased matching-gift programs designed to get employees to donate.

t. United Airlines appealed to members of its Mileage Plus program to donate, pledging incentives of up to 5 million miles.

CSR in Pakistan’s Conflict Zones

The aftermath of 9/11 and American operation against Taliban led extremism and terrorist take centauries in Tribal areas of Pakistan. Pakistan suffered with colossal amount of losses in men and material. According to Pakistan Economic survey (2014-15) the country suffered a total loss of $107 billion or Rs 8702.75 billion since 9/11, 2001 as a result of the war on terrorism. The human losses surpass over 80000 dead. In order to get its territory and people rid of terrorists Pakistan has to launch continuous military offensive in Swat in 2008-2009, South Waziristan in 2012, and North Waziristan and Khyber Agency under the code name Zarb-e-Azab from 20014-todate. The operation cost is much more than munitions or causality cost. It resulted in to hundreds of thousands internally displaced persons.

According to International Displacement Monitoring Center (2015) as of July 2015, there were more than 1.8 million people displaced by insurgency, counter-insurgency and other related violence in Pakistan. Of the total number, up to 907,000 were newly displaced in 2014, all of them from FATA’s North Waziristan and Khyber agencies. Over the years, since 2006 some of famous and major national and international agencies have been involved in relief and rehabilitation of war-torn areas affected of fighting to bring quick public and economic recovery. Besides, there are number of Business Corporations from the private sectors that have also stepped forward to discharge their social responsibility in different forms especially in provisions of following:

Clothing: Clothes of various sizes, Beddings, Shoes

Utensils: Jerricans (large plastic cans that hold 20 liters of water or other liquids), Crockery, Buckets, Toiletries: Tissues, Soaps, Dettol (antibacterial cleaners), Towels

Food: Rice, Sugar, Flour (Atta), Onions, Potatoes, Cooking oil, Tea, Milk (tetra packs or powder), Safe drinking water, Cooked Food, Operating schools, mobile hospitals, and medicines etc.

IDPs Relief & Rehabilitation Activities

|Business |Year |Place | CSR activities |Provisions |

|Mobi Link |2009 |IDP Camp |Sponsor Swat IDPs|Tents with all necessities including bedding, food, water, crockery,|

| | | Kund Park Jehangira | |personal hygiene kits items. |

| | | |camp for 1000 |Replete with wash and bath facilities a basic health unit with |

| | | |families |standby ambulances. |

| | | |Rs. 81 million |Rs 3 million worth aid and food rations amongst 16000 IDPs residing |

| | | |relief fund |in schools and hujras in Mardan and Swabi districts. |

| | | |Education Support |Primary and secondary schools for boys and girls, 1,600 young IDPs |

| | | | |at the camp taught by 32 teachers using the NWFP Board of |

| | | | |Education’s syllabus |

| |20014 |North Waziristan |Food Supplies to |Mobilink Foundation has handed over food supplies to Pakistan Army |

| | |IDPs camps at Bannu, |8000 IDPs |for over 8000 Internally Displaced Persons (IDPs) of North |

| | |D.I. Khan and Lakki | |Waziristan in collaboration with Pakistan Army. The food consignment|

| | |Marwat | |includes flour, pulses, mineral water, dry milk, oil, salt, sugar, |

| | | | |tea and spices. |

| | | |Education |Mobilink has also set up primary and secondary schools within the |

| | | | |camps where around 1500 young IDPs are taught by 30 teachers. |

|Telenore |2014 |North Waziristan |Relief for IDPs |Aimed at extending relief and assistance to the Internally Displaced|

| | |IDPs | |Persons (IDP) of North Waziristan, Telenor Pakistan has announced a |

| | | | |contribution of PKR 10 million through its emergency response |

| | | | |partner, Pakistan Red Crescent Society (PRCS) |

| |2015 |Repatriation | |Both telecom companies are paying the repatriation package to each |

|Mobi Link & | |Assistance Package | |displaced family. The aid includes Rs. 10, 000 for transport and Rs.|

|Telenor | |For the IDPs of Khyber| |25,000 for rehabilitation is made through mobile SIMs and ATM cards.|

| | |Agency | |Payment begins once the return schedule is finalized. |

|Pakistan State Oil|2009 |IDPs Swat and Malakand|Health, Education | |

| | |divisions |& Community |Employees through their own Donated of Rs 10 million for |

| | | |Building |humanitarian relief to IDPs through Prime Minister relief fund |

| |2014 |IDP North Waziristan | |Contributed Rs40 million to the Prime Minister’s Relief Fund for |

| | | | |Internally Displaced Persons from North Waziristan in addition to |

| | | | |donating part of its employees’ salaries for the IDPs |

Assistance in Repatriation Grant Disbursement

Payment of Return Cash Grant and Transport Assistance to Returnees of South Waziristan, North Waziristan, Khyber, Kurram & Orakzai Agencies as of30.12.2015

 

Agency |Company |TDP Received from FDMA |TDPs Uploaded by Companies |TDPs not Uploaded due to unavailability of Payment Instrument |TDPs Amount Disbursed |Pending Cases (User Limit Exceed/CNIC Expired/ Others) | | | |Transport Grant |Return Grant |Transport Grant |Return Grant |Transport Grant |Return Grant |Transport Grant |Return Grant |Transport Grant |Return Grant | |Khyber |Telenor |28589 |28544 |26610 |26591 |1979 |1953 |26573 |26048 |37 |543 | | |Mobilink |34,769 |34,708 |31,236 |30,827 |3,460 |3,767 |31236 |30,827 |0 |0 | |Sub Total of Khyber |63,358 |63,252 |57,846 |57,418 |5,439 |5,720 |57,809 |56,875 |37 |543 | |NWA* |Zong |12,398 |12,327 |11,800 |8,131 |307 |738 |11,800 |8,131 |291 |1,218 | |SWA |Mobilink |9,821 |9,738 |9,199 |8,207 |622 |1,531 |9,199 |8,207 |0 |0 | |Orakzai |Ufone |534 |522 |487 |389 |47 |133 |487 |242 |0 |147 | |Kurram |Mobilink |2,942 |2,942 |2,706 |2,486 |236 |456 |2,706 |2,486 |0 |0 | |Total |89,053 |88,781 |82,038 |76,631 |6,651 |8,578 |82,001 |75,941 |328 |1,908 | |

CONCLUSION

The most conducive environment for sustainable post-conflict economic recovery is one that assures citizens of their security, supports inclusively distributed development, provides an adequate infrastructure, protects property and investment from theft and predation, ensures predictable and fair taxes and incentives to all economic agents, and reduces the costs of doing business. In the short term, substitute external actors can help provide some of these enabling conditions in the absence of effective states. A range of non-state actors, including NGOs, the foreign private sector, traditional authorities and even former armed groups, have undertaken the reconstruction of basic infrastructure and the provision of basic social services. In the longer term however, there can be no substitute for the role of the state in post-conflict/disaster recovery. The sustainability of economic recovery and peace depends on the restoration of a legitimate, effective and accountable state. Post-conflict countries differ substantially regarding the strength and capacities of the existing state institutions as well as the institutional challenges facing them. Policies to address these institutional challenges must recognize this diversity. They must work with the political, institutional and resource endowments that are present on the ground. Post-conflict societies are endowed, and survive conflict with, informal institutions and forms of governance that may be more viable and legitimate than imported models in bringing about peace, stability and development. International support is often crucial in the early stages of economic recovery and post-conflict institution building. Transparency and accountability are thus essential to attract such support. Sustainable economic recovery requires that external programs of support devote significantly more resources than currently to rebuilding local capacity from the very beginning. This may raise the cost of recovery if, for instance, a local counterpart is maintained for each key public management position. But even in such cases, the short-term increase in the cost of recovery is more than compensated in the long term. This is the most effective way to nurture indigenous drivers.

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