Working Paper: Peace Dividends via Local Enterprise

Abstract

This working paper proposes a practical framework for accelerating peace dividends through local enterprise development. It argues that early, concentrated investment in community procurement, SME clusters, and youth skills-to-market bridges can reduce incentives for violence, expand livelihoods, and strengthen state–citizen trust.

Executive Summary

Thesis. Local enterprise — when paired with transparent community procurement and targeted public works — can generate fast, visible benefits that make peace “pay” for households and youth. The paper recommends a sequenced set of actions over 0–24 months, anchored in county-level delivery and national coordination.

Pillar 1 – Community Procurement: Allocate 20–30% of local public spend to pre‑screened micro and small firms; publish contracts and completion photos.
Pillar 2 – SME Clusters: Form geographic clusters around practical needs (food systems, construction materials, repair services, logistics); provide light‑touch shared infrastructure.
Pillar 3 – Skills-to-Market: Rapid training + toolkits + micro‑purchase orders for youth and women; link cohorts to cluster orders and public works.
Pillar 4 – Cash-for-Work to Contracts: Shift from short-term cash-for-work to performance-based micro‑contracts for community assets.
Digital Rails: Simple registries (firms, contracts, assets) + mobile payments to increase trust and speed.

Context & Problem Statement

In post‑conflict areas, households face high prices, weak markets, and limited employment. Traditional programs are often slow and centralized. The immediate priority is to convert peace into livelihoods by empowering communities to produce, repair, and trade.

Peace becomes credible when people experience reliable income, fair access to opportunities, and visible improvements to shared assets.

Framework: The Peace Dividends Engine

The Peace Dividends Engine is a practical cycle designed for counties and municipalities:

Local Demand Mapping: Identify “shovel‑ready” needs (water points, feeder roads, classrooms, clinics, markets).
Community Procurement Window: Publish micro‑tenders (USD 2k–25k) with simple rules; prefer local firms and youth/women cooperatives.
Cluster Enablement: Group SMEs by product/service; provide shared tools, storage, credit guarantees, and market access.
Skills-to-Market Cohorts: 6–12 week practical training tied to real purchase orders; include toolkits and basic safety.
Digital Registries & Payments: Public dashboards for contracts, assets, and payments via mobile money where available.
Performance & Scale: Reward on-time, quality delivery with larger work orders; publish results for citizen oversight.

Illustrative Use‑Cases

Water & Sanitation: Local cooperatives refurbish boreholes; youth maintain with service contracts funded by user committees.
Feeder Roads: Labor‑based maintenance teams contract for short segments; SMEs supply gravel and culverts.
School Rehab: Community firms repair roofs/desks; women’s groups produce uniforms and hygiene kits.
Agri Value Chains: Clusters for cassava, sorghum, and fisheries; shared cold storage; input credit revolving funds.
Digital & Repair Services: Phone repair, solar installation, and micro‑retail kiosks linked to public facilities.

Implementation Roadmap

0–3 months: County diagnostics, registry setup, first micro‑tenders, 2–3 priority clusters.
4–12 months: 1,000+ work orders; skills cohorts; publish dashboards; mobile payment rollout.
13–24 months: Scale to neighboring counties; transition cash‑for‑work to micro‑contracts; independent evaluation.

Governance & Safeguards

Community Boards: Citizen representatives oversee asset lists, grievance redress, and spot checks.
Open Contracting: Publish tender winners, values, and completion evidence.
Conflict Sensitivity: Equitable geographic spread; do‑no‑harm screening; social inclusion targets.
Financial Controls: Threshold approvals; random audits; vendor rotation; escrow for large items.

Monitoring & Evaluation

Track outputs (assets repaired, contracts completed) and outcomes (household income, prices, school attendance). Suggested KPIs:

Livelihoods: % volunteers/trainees earning income 90 days post‑cohort.
Market Health: Price dispersion and travel time to markets.
Social Cohesion: Community trust survey index.
Service Reliability: Borehole uptime; classroom occupancy; road passability.

Risks & Mitigation

Elite Capture: Tackle via rotation rules, caps, and public disclosure.
Payment Delays: Use mobile money, escrow, and performance‑based tranches.
Quality Issues: Standard designs, site supervision, and warranty retention.
Inflation & FX: Index small contracts and source locally to reduce exposure.

Policy Recommendations

Adopt a County Community Procurement Window (USD 2k–25k) with transparent rules.
Create a National SME Cluster Facility for shared tools, credit guarantees, and market access.
Institutionalize Skills‑to‑Market programs linked to real purchase orders.
Mandate Open Contracting and mobile payments for micro‑tenders.
Fund independent Results Measurement and citizen oversight.

Conclusion

Peace dividends are strongest when communities produce visible improvements and income quickly. By mobilizing local enterprise with transparent rules, South Sudan can convert the promise of peace into daily prosperity.

Citation: SSFI (2025). Peace Dividends via Local Enterprise. South Sudan Future Initiative Working Paper 1.0.