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Business and Finance

Workshop Tackles the Question: What is the Role of Business in Conflict Zones?

a rusty fence on the beach
Transnational corporations could play a more proactive role in volatile, unstable environments. Photo: Salem Elizabeth/flickr

Within the last 20 years, the role of non-state actors – such as individuals and civil society organizations – within the international system has grown markedly. Consequently, new scholarly debates have emerged that seek to examine the role of non-state actors in today’s complex environments. In particular, the activities, actions, and even social responsibilities of business actors operating in conflict zones are increasingly being scrutinized.

On the one hand transnational corporations (TNC) in search of either cheap labor or access to extractive resources are moving more and more into developing, transitional economies where they are often confronted with challenging environments. To illustrate, the more recent uprisings and revolutions in the Middle East & North Africa (MENA) brought political risk to the doorstep of the TNC’s working in the region. Indeed, operating zones that were once relatively stable have become  volatile – not only forcing local residents to flee but local and international businesses (mostly in the oil and gas sector) to suspend operations. The impact of this has been most significant in Libya where, due to the violence between government and opposing forces and damage to energy infrastructure,  oil production has fallen from 1.6 million barrels per day (bpd) to roughly 60,000 bpd.

Needless to say, the major role that TNCs often play in host operating environments has led to a growing awareness within the international community that business actors can be more proactive about achieving peace and security objectives in more volatile, unstable environs. Such awareness is illustrated in the various legal approaches that increasingly seek to hold multinational corporations accountable for their actions in host countries – especially corporations based in Western democracies that operate in states with weak governance structures. On the other hand, at the local level, the idea of tailored economic development achieved within the context of conflict dynamics has also gained support. Here, especially, the question of the role that local business actors play both in the conflict as well as in peacemaking objectives becomes central.

To further examine the activities, responsibilities and actions of TNCs, as well as local businesses, operating in conflict-prone, political risky areas, a scientific workshop will be convened by the Center for Security Studies (CSS) / ETH Zurich, swisspeace, and Peace Research Institute in Frankfurt (PRIF/ HSFK). This meeting will take place on 13-14 November 2011 at the Europa Institute in Basel – bringing together an intimate group of roughly 30 experts to present papers and debate findings from various academic perspectives such as political science, anthropology, peace and conflict studies, business ethics, and law. Following this workshop, on Tuesday, 15 November 2011 swisspeace will hold its annual conference in Bern to continue with the discussion from a more practical point of view. Though the workshop is restricted to invited speakers, the conference in Bern is open to the public.

Combined, this unique workshop-conference approach is anchored by 2 core objectives – first, to bring various experts and interested parties together to exchange ideas and insights in an intimate setting and, second, to facilitate new research on the role of business actors in conflict that bridges science with policy. Conference proceedings will be published on the swisspeace website and selected papers from the workshop will be published in an edited volume. For more information contact Jennifer Giroux.

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Business and Finance

Cricket Diplomacy in the 21st Century

International cricket in Barbados
International cricket in Barbados. Photo: flickr/phik

Cricket, as they say, is a funny old game.    Few sports can claim to inspire, in equal measure, its extensive and fanatical support — as the second-most popular sport in the world– and the blank incomprehension and derision of the uninitiated.  In India and Pakistan, the emotional lives of a billion people seem implicated in every flash of the willow on leather.  In the US, the game is often confused with (or willfully misunderstood as) croquet.

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Business and Finance

Some Links on the Euro Crisis

One Euro? Photo: Jose Glez y Lopez/flickr

With the massive protests in Spain over the weekend and calls from respectable quarters for Greece to leave the Euro – which, as Daniel Knowles of the Telegraph succinctly illustrates (echoing Barry Eichengren’s working paper), could have genuinely catastrophic results – the future of the Eurozone is very much in question today in the world media.

Last August, Lorenzo Smaghi, writing for Foreign Affairs, offered an optimistic assessment that put a lot faith in the new financial governance structures – mainly the European Financial Stability Fund (EFSF) – implemented that summer, but that optimism now seems to have been overtaken by events.

Whereas Charles Calomiris, in Foreign Policy, was telling us in January that the Euro was dead, in the May/June print edition of Foreign Affairs, Henry Farrell and John Quiggin offered a proposal to save it – “and the EU.”

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Business and Finance

Bad Blood

Shhh! Secret Testing Facility. Photo: slurpiesandstraws☮/flickr

On Monday, 14 March 2011, seven Guatemalan citizens filed suit against US health officials over nonconsensual medical experiments – including the infection of some 700 Guatemalan prisoners, soldiers, mental patients and orphans with syphilis – carried out in the Central American country by American doctors between 1948 and 1964.

The Guatemalan study, which was never published, came to light in 2010 after Wellesley College Professor Susan Reverby stumbled upon archived documents outlining the experiments led by the controversial doctor John Cutler. According to the documents, American scientists persuaded prison and orphanage authorities to allow them to deliberately infect hundreds of Guatemalans with syphilis in order to test the efficacy of penicillin, in exchange for medical equipment like refrigerators, and medication to treat epilepsy and malaria.

Today’s Guatemalan lawsuit calls to mind the 1930s Tuskegee syphilis experiments in Alabama, where hundreds of African Americans were observed for over 40 years, without being told they had been infected and without being treated, even after penicillin became available. Needless to say, US government doctors at the time thought it perfectly appropriate to experiment on disabled people, minorities or prison inmates – practices all too familiar from Europe and East Asia in the 1930s.

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Business and Finance

Will Natural Gas Power the 21st Century?

How will we satisfy our demand for power in the future? Lightning - Courtesy of Hugol/flickr

The “Nuclear Power Renaissance” might be coming to an end before it has had the chance to flourish. In light of the current nuclear meltdown in Japan, people are growing increasingly suspicious of nuclear plants. Governments in several countries are thus postponing or reviewing plans to advance nuclear power as the keystone of their electricity supply.

In their search for alternatives, policy makers would be well advised to take a good look at natural gas. Recent developments in the market are likely to render it increasingly attractive for consumers.

Firstly, the geography of gas supply is currently being turned upside down. Technological progress has enabled the exploitation of gas reserves previously thought inaccessible in North America. As a consequence, the US has become the world’s main producer, overtaking natural gas giants Russia and Iran.

Europe, India and China, too, are thought to be sitting on vast gas reserves, which may now be exploited thanks to new drilling techniques. At the moment, it remains uncertain how soon, and to what extent, these gas reserves will become economically viable. Nevertheless, global supply of natural gas is expected to rise markedly in the long run. Increased supply coupled with current sluggish demand (due to the global recession) should keep prices low. Moreover, consumers will be able to boost energy security by diversifying their natural gas supply.