This paper explores what political settlements are and why they are now at the centre of donor efforts to foster more peaceful and effective states and societies. Analysing available research, the paper finds that, at least in the short to medium term, more inclusive political settlements at the elite level are crucial to avoid the recurrence of violent conflict, and to lay the foundations for more peaceful political processes. The literature also suggests that, over the long term, states and societies underpinned by more open and more broadly inclusive institutions are more resilient and better at promoting sustained and broadly shared prosperity.
However, there is a big gap between these two findings: further research and learning are needed on how a political settlement with a narrow focus on elite inclusion can be transformed into a more broadly inclusive political order. The paper highlights insights from the literature that could help develop a more incremental approach to promoting inclusion.
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