THE ROLE OF BUSINESS IN CONFLICT RESOLUTION AND PEACE BUILDINg

1. THE ROLE OF BUSINESS IN CONFLICT RESOLUTION AND PEACE BUILDINg Round table meetings: “Business for social peace” Urfa, Turkey15 April 2016 Theuns Eloff

2. Overview OF PRESENTATION A historic overview of South Africa’s peace process A short overview of the constitutional negotiations SA’s first years as a democracy The preparation done by business to be able to play a role Lessons learnt Specific questions posed The cyclical nature of SA’s (and any) transition Who do people and institutions change? Also for noting Facts about negotiation Fisher’s 7 elements of effective negotiating Fisher's shortcut to being a good negotiator Fisher’s four quadrant analysis tool

3. Sa's peace process ANC & other parties were unbanned, Mandela and other leaders released in early 1990 This normalised the situation somewhat, but not enough Bilaterals between the De Klerk govt and ANC started But violence plagued the country, especially between supporters of the ANC and the Zulu-based IFP, probably fuelled by government security forces (almost 4000 dead) In March 1991, De Klerk unilaterally called a national peace conference, and the ANC refused to participate Church, business and trade union leaders stepped in Agreed that multi-party and multi-sector national meeting would be held to discuss the violence and ways to end it This took place in June 1991, at the offices of a major company

4. Sa's peace procesS (2) The result was five multiparty working groups Code of conduct for political parties Code of conduct for security forces Socio-economic development Implementation and monitoring of agreements Process, secretariat and media (led by the Consultative Business Movement – CBM) National Peace Convention was held in Sept 1991, with all actors present, as well as media and diplomatic corps Peace Accord signed by political parties and groups, business, churches and trade unions “Conflict resolution on a national scale” but localised through regional and local peace committees, coordinated by a National Peace Secretariat By April 1994, one national, 11 regional and 250 local committees active The peace process helped to contain violence and create conditions for negotiations to forge a constitutional and democratic order It helped to create a culture of peace, at all levels

5. Sa's CONSTITUTIONAL NEGOTIATIONS Constitutional negotiations started Dec'91- Convention for a Democratic South Africa (CODESA 1) May '92: CODESA 2 ended in deadlocked, violence followed Sept '92: Record of Understanding between ANC and Govt March '93: Multi-Party Negotiations Process (MPNP) started, differences in processes&structures Nov '93: Interim Constitution accepted (9 months!) April '94: first democratic election A business organisation (CBM) was requested by the parties first to be the secretariat, and from March 1993, the administration Business continued playing a behind the scenes role, especially during the deadlock, briefing the diplomatic corps and other international actors

6. Sa's first years as a democracy New plans – reconstruction and development (RDP), peace Capacity in terms of policy and implementation Bring business’ resources to bear on challenges CBM transformed to the National Business Initiative (NBI) Project focused The Electoral Fund (still CBM) Companies and the RDP Business Against Crime (1996) The Business Trust (1999) Education initiatives Job creation initiatives In sum – socio-economic development… The business of business is to stay in business!

7. HOW DID IT COME THAT BUSINESS COULD HAVE PLAYED A ROLE? The “problem” of representative business organisations, especially in a highly polarised political situations The Consultative Business Movement (CBM) – a difference Committed business leaders decided to form CBM CBM’s preparation The business of business is (to stay in) business Therefore a “political role” in the political economy But in an indirect, process way What is process? Building relationships through bilateral workshops Timing to intervene in a facilitative manner and bring formal business bodies in Small, young, flexible and energetic team “You can get so much more done if you are willing to let someone else tale the credit”

8. LESSONS LEARNT Get the right business vehicle to play the role Convince fellow business leaders that it is important to play a role Long term building of personal relationships and trust across barriers Analyze properly, and address the real causes – often in parallel Start working behind the scenes, but choose your moment to go public -enough to create trust in the process When you go public, it should be with the representative bodies of business, not a small organisation or individuals If you can create a common vision of the future, compromises are possible (e.g. the election date)

9. LESSONS LEARNT (2) Ensure that the majority of parties are visibly committed to the process (the "process alliance" between ANC and SA Govt) There are no quick fixes – often two steps forward, one back Use deadlines constructively – it can focus the minds and make progress possible Use constructive ambiguity optimally ("sufficient consensus") And there is always another opportunity to agree (the code of conduct for security forces in 1991) Informal break-aways at crucial times can assist The maturity of negotiating partners must be developed and given time to grow Agree on a non-partisan administration & secretariat: minutes and agendas are important! And a wise and cautious secretariat can help oil the wheels

10. LESSONS LEARNT (3) Agree on structures and simple processes: Technical expertise and input Ensure that there are “process guardians” Processes to reach decisions ('sufficient consensus') Put recommendations to main negotiating body Any process needs pre-agreed deadlock-breaking mechanisms (formally and informally) The name of the process Venues: symbolism or at least neutrality

11. SPECIFIC QUESTIONS (1) In what ways can the business community contribute to peace? Taking a non-partisan stand By building trust as a credible and trustworthy stakeholder/partner/interested party (not “representative”) By being a conduit between parties who cannot/do not want to talk directly By taking facilitative and/or intervening action when necessary By adding its expertise to any socio-economic initiatives What is the “added value” of the business community to peace processes? It is not a party to the conflict and could be trusted It can be “objective” and propose international best practice It can “back off” when necessary It has capacity and resources that parties and even government often do not have

12. SPECIFIC QUESTIONS (2) How did this play out in your case? CBM was trusted (least mistrusted) by parties It had young and credible staff to do the hard work But it also had visible business “champions” leading It had expertise in “process” and had analysed well As a consequence, it played an invaluable role as secretariat (with facilitating undertones) After the signing of the peace accord in 1991, it continued supporting the structures and processes down to local level, but also assisted the national constitutional negotiations Even after the election in 1994, it committed to helping the new government through partnership in specific initiatives

13. SPECIFIC QUESTIONS (3) What were the different roles taken on by the business community at the different stages of the process? Conflict – with other civil society actors, brought the parties together to discuss ending the violence Ceasefire – this was done through the peace process and its subsequent structures down to local level Negotiations – it played a secretariat and indirect facilitative role (“oiling the wheels”) Implementation – business in the form of local business men and women were part of the national peace network Post-conflict recovery & reintegration – CBM was the agent to mobilize business’ resources for helping to build the new South Africa Thus: from interested stakeholder, to partner, to supporting with expertise, to co-implementers to supporter of reconstruction. But never as equal political partner and negotiator

14. SPECIFIC QUESTIONS (4) What were the challenges and opportunities for your initiatives? Parties did not want to come to the process (grand standing, ideology, fear, own interests) Those who stayed outside tried to discredit the process (AWB, Boipatong, Hani assasination) Violence by supporters made it difficult for leaders How did these change as the processes unfolded? Eventually, by far the majority of parties participated The Peace Accord gave a national framework to keep violence at low enough levels so that negotiations could continue

15. SPECIFIC QUESTIONS (5) How did you overcome these challenges and seize on the opportunities? Perseverance, strategic thinking Personal relationships of trust, despite differences Applying process principles consistently (consultation, transparency, shared responsibility) How does a business initiative go from “low-profile” to a level whereby it could impact the negotiations? Be trusted as an interested stakeholder Make a non-partisan stand on principle Choose the moment carefully – and then with representative bodies

16. SPECIFIC QUESTIONS (6) Which instruments were used? Behind the scenes meetings (honest broker) National conference Being the secretariat Participating in the signing of a national peace accord Supporting the agreed outcomes and decisions Were there any “spoilers”? How did you deal with them? Including any actor that tried to impede the business involvement in peace Political parties Business bodies (partisan or too cautious) Once people see that the train is moving, most get on!

17. Cyclical dynamics of the SA (and any) transition

18. WHY DO PEOPLE AND INSTITUTIONS CHANGE? I was serving on a battleship that had been on maneuvers in heavy weather and was on bridge as night fell. Visibility was poor, so the captain remained on the bridge. Shortly after dark, the lookout reported: “Light, bearing on the starboard bow”. “Is it steady or moving astern?” the captain asked. “Steady sir”, which meant we were on a dangerous collision course with that ship. The captain instructed the signalman: “Signal that ship: we are on collision course, advise you change course 20 degrees”. Back came the signal: “Advisable for you to change course”. The captain said: “Send, I’m a captain, change course 20 degrees”. “I’m a seaman second class” came the reply. “You had better change course”. A furious captain spat out: “Send, I’m a battleship. Change course 20 degrees”.

19. Back came the flashing light: “I’m a lighthouse”. We changed course! THANK YOU – AND ALL OF THE BEST!

20. We are all negotiating all of the time • We tend to “lapse” into bargaining, even when “deal maker/breaker” is not money • We think effective negotiation is pulling a fast one on the other party - but not sustainable (“your side of the boat”) • We think to take a strong position is a good negotiating tactic • Roger Fisher and Bill Ury’sideas (“Getting to Yes”) Facts about negotiation

21. FISHER'S7 elements of effective negotiating/MEDIATING Separate the people from the problem: build relationships Focus on interests, not positions Invent options for mutual gain Use objective criteria (Getting to Yes, p81-94) Develop BATNA (best alternative to a negotiated agreement) Ensure well-crafted and executable commitments Communicate constructively what was intended to constituencies

22. FISHER'S SHORTCUT TO BEING A GOOD NEGOTIATOR/MEDIATOR Approach the process with a purpose Step into their shoes Focus on their choice Generate fresh ideas Formulate a good proposal Help change the game

23. Past Future Theory Before starting to negotiate: analyse the (real) issue/problem Real world Getting to Yes, p68