Investments work better when communities help shape them
When communities are informed, consulted and able to shape the investments that affect them, projects are more likely to be used, trusted and sustained. The Finance for Peace Standards aim to align the interests of communities, companies and investors behind more inclusive development.
Aligning the interests of communities, companies and investors
Investment can bring jobs, energy, water and services to the places that need them, if it is designed with the people it affects. The Standards are designed to align the incentives of local communities and civil society with those of companies and investors, both local and foreign, so that a project’s success and the community’s wellbeing go together.
This makes private sector actors and investors partners in more inclusive development, working alongside development, humanitarian and peacebuilding organisations, local civil society and communities themselves.
Partners in inclusive development
- Communities and local civil society
- Local and foreign companies and investors
- Development and humanitarian organisations
- Peacebuilding organisations
Peace measures, such as consultation, agreed benefit-sharing and grievance mechanisms, are built into the project and funded within it.
Communities should have a say in the investments that affect them
People should understand what is planned and be able to shape it before decisions are fixed. This is one of the most important factors in whether a project succeeds. Investments that communities have helped design are more likely to be used and looked after, and to build trust between communities, companies and investors. That trust is central to lowering conflict risk.
A study of 200 conflict-affected infrastructure projects in Latin America and the Caribbean found that inadequate consultation and a lack of benefits for communities were among the most common causes of conflict.1
- InformedPeople understand what is planned, and what it means for them, before decisions are made
- Involved in designTheir priorities, concerns and ideas for sharing benefits shape the project
- TrustedCommunities, companies and investors can rely on one another, and the project is used and looked after
- Lower conflict riskFewer grievances turn into disputes, delays and losses
Local organisations and peace experts help make it work
Every certified investment works with a peace expert: a local organisation or specialist with standing in the context, independent of the project owner. Working with the people affected, they help analyse the context, design peace measures and support delivery. Impact outcomes are agreed up front and tracked over the life of the project.
How to work with us
Become a peace expert
Work with the project owner to conduct a feasibility study, analyse the context, design the peace plan and involve the communities affected, and stay involved to help implement peace measures during project execution.
Bring community perspectives
Join the Market Network to help make sure community priorities and concerns are heard before a project’s design is fixed.
Propose a project
Local organisations and peace experts can be project owners too. If you have done a feasibility study or needs assessment and want to turn it into an investable project that serves your community, bring it to us and we will help you take the next step.
Raise a concern
Every certified project must have an independent complaints mechanism, and its verifier consults communities separately each year. If you are affected by a certified project, get in touch and we will explain how to use them.
Sources
- Watkins and others, Inter-American Development Bank, 2017.
Get in touch
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