institutional setting either to reduce transaction costs (TNC perspective) or to protect basic
social and economic standards (NGO perspective). By providing a basic institutional setting, a
state follows the rules of good governance, and thereby adds to all other mentioned
dimensions of the public good peace and security as well, from an equitable economy to
efficient market mechanisms. This holds true and is especially important for developing
countries or zones of weak governance.
It becomes clear that all actors have the potential to make significant contribution to the
provision of ‘peace and security’, however in most instances, the effectiveness of measures
taken by a single actor are limited, in particular in zones of weak governance. Only through
cooperative arrangements among at least two actors can progress be achieved.
Summing up, theoretically speaking, there are three ways through which TNCs and NGOs
have an impact on the provision on the public good peace and security. First, through private-
private partnerships between TNCs and NGOs: second, through private-public partnerships
between either TNCs and the state, or NGOs and the state: and third, through inclusive
approaches, which entail all three groups of actors.
State
Legal Certainty
Public
Private
TNC
NGO
Power
Legitimacy
Peace & Security
Figure 1: The Provision of the Public Good Peace and Security
through the State, TNCs and NGOs
It will be shown in an empirical case study looking at the Kimberley Process that inclusive
approaches show by far the best results, although an understanding between private actors,
TNCs and NGOs form the necessary basis for success.
9
Convention