Dr Matthes Buhbe, Director of the FES Geneva, introduced the subject, noting the negative effects that conflicts and weak institutions have on trade and their impact on the effectiveness of programmes like Aid for Trade. He also drew attention to the World Development Report that analysed in detail the vicious cycle of economics and trade, and the fact that no country with conflict zones achieved a single MDG (millennium development goal).

Dr Elisabeth Schoendorf, Researcher for International Security at the Stiftung Wissenschaft und Politik (German Institute for International and Security Affairs), affirmed that economic recovery is a precondition for peace and that this recovery faces many challenges. One of these challenges is the fact that conflict pushes trade from the formal to the informal economy, and fosters the development either of combat economies (in which activities focus on mobilizing resources for the conflict parties) or of shadow economies (in which economic actors profit from illicit opportunities that arise during crisis). Furthermore, previous experiences prove that fragile economies perpetuate fragile states and shadow economies, she said, and that collaboration from diverse actors, such as states, international organizations and businesses is required to face these challenges. Finally, she noted the important role that businesses play in economic recovery by fostering the legal economy and through foreign direct investment (FDI) if operations are appropriately structured. Conversely, access to international markets can often also fuel combat economies. However, she stressed the increased awareness of these issues in the international community as the increased membership of initiatives like the UN Global Compact indicates.

Mr Achim Wennmann, Executive Coordinator of the Geneva Peacebuilding Platform, discussed what opportunities arise from unstable environments and how the WTO can unlock these opportunities. According to the Global Peace Index, if the world had been 25 per cent more peaceful in the last year, over US$ 2 trillion could have been freed for investment. He discussed the wrong perception that businesses run away from conflict environments, while in fact they have the most to gain from a reduction of violence and look at it as an opportunity. He refuted the perception that violence decimates any economic activity, using the Somali cattle export industry as an example. Finally, he affirmed that the WTO could unlock many of these opportunities with programmes like Aid for Trade and trade facilitation, which are critical to improving trade performance, and by supporting public procurement, which could either develop the local industry or free up resources by making savings in competitive purchases.

Mr Jean Amat Amoros, Co-Founder of Gundara, a label for fair trade leather bags from Afghanistan, commented on the challenges on the ground for developing trade in a conflict-torn country. He mentioned specifically the insecurity of installations and personnel, which affected production and timely delivery. On the positive side, he noted that having products from Afghanistan in the West attracted attention from the media, and helped spread a different image of the country.