Sound Business Environment

The Pillars of Peace is a research framework produced by the Institute for Economics and Peace to describe what makes a society peaceful. A sound business environment is one of the eight “pillars” identified by the research

What is a sound business environment?

A sound business environment is crucial to peace. Business provides employment, which is instrumental in providing a viable taxation base, the productive use of human capital, and provides the ability for individuals to access financial capital. It also provides a non-violent and productive means of enhancing an individual and community’s well-being. A key concept here is the idea of individuals and communities who profit from greater levels of social cohesion and peace, as opposed to conflict.

Supporting Institutions

This sub-category looks at the formal and informal environment businesses operate in. For instance the extent of property rights, financial freedom and business freedom.

Supporting Infrastructure

This measures the quality and coverage of physical infrastructure (such as roads, ports etc).

Business Sophistication

Measures how sophisticated businesses are in a country. Eg their use of technology and innovation.

Market Access, Size and Efficiency

Includes an overall measure of wealth (as a proxy of the market depth) and international market integration (eg tariff rates and the burden of customs procedures). 

More on the Pillars of Peace

For more on this Pillar of Peace, including data sources, examples and further analysis, download the Pillars of Peace Report and skip to page 17

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Pillars of Peace

Our latest research report, the Pillars of Peace, explores the attitudes and institutions that underpin peaceful societies.

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Vision of Humanity is an initiative of the Institute for Economics and Peace (IEP). IEP have offices in New York and Sydney. For more specific inquiries related to the peace indexes and research, please contact IEP directly.

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