Local economic development key to jobs and peacebuilding in conflict zones

VI World Forum for LED

Local economic development key to jobs and peacebuilding in conflict zones

At the 6th World Forum for Local Economic Development, the ILO underscored how local economic development can create formal jobs, foster peace, and support crisis recovery through inclusive, conflict-sensitive, locally-led approaches.

4 April 2025

SEVILLE, SPAIN (ILO News) - At the sixth edition of the World Forum for Local Economic Development (VI WFLED), held from 1 to 4 April 2025 in Seville, Spain, the International Labour Organization (ILO) emphasized the vital role of local economic development (LED) in promoting formal employment and peacebuilding in conflict-affected areas.

Bringing together over 2,500 participants from more than 100 countries, the forum focused on the theme "Just Transition, Financing for Development and Territorial Solutions." Attendees included representatives from all levels of government, civil society, the private sector, UN agencies like UNDP, and international development organizations.

During a high-level panel titled "Territories in conflict: Local economic development as a peace-building mechanism", the ILO highlighted how LED can address the root causes of conflict-economic exclusion, social fragmentation, and perceived injustices-by creating decent, formal jobs. These jobs raise the cost of participation in violence, foster inter-group collaboration, and support more equitable livelihoods.

"Formal employment offers more than income-it's a pathway to peace," said ILO representatives, noting that job creation can reduce tensions, improve trust, and build stronger communities.

Panel discussion on territories in conflict: LED as a peace-building mechanism.

The ILO also stressed the importance of an integrated Humanitarian-Development-Peace Nexus (HDPN) approach in crisis responses, underlining the need for conflict-sensitive programming and local ownership. Through its partnership with the Swedish International Development Cooperation Agency (Sida), the ILO is supporting strategies that connect humanitarian aid with long-term development and peacebuilding goals.

Local economic development, the ILO noted, creates platforms for inclusive dialogue between formal and informal actors, boosts local competitiveness, attracts investment, builds human capital, and enhances infrastructure-all of which help drive sustainable employment.

The forum concluded with a declaration calling for inclusive, dialogue-driven approaches to territorial development, especially in conflict zones. It urged policymakers to prioritize local production, social cohesion, and pathways from informal to formal employment as tools for resilience and recovery.

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Crisis situations and response