text: Stability Operations Considerations in Counterinsurgency
  7-81. The local economy requires this stimulus to sustain economic generation and enterprise creation.
  It includes efforts to execute contracting duties; identify, prioritize, and manage local projects;
  and implement employment programs. Often, such programs reinforce efforts to establish security and civil
  order by providing meaningful employment and compensation for the local populace. The assessment
  of the economic sector must include developing knowledge and understanding of local pay scales; this
  is essential to establishing jobs programs with appropriate wages. Inflated pay scales may divert critical
  professionals from their chosen field in pursuit of short-term financial gains from new jobs created by the
  force. Establishing appropriate pay scales is also significant when the environment includes illicit actors
  willing to pay for actions or services in direct conflict with the aims of the force. Adversaries can easily
  exploit relatively low pay scales and quickly undermine efforts to build positive perceptions among the
  people.
  7-82. HN enterprise creation is an essential activity whereby the local people organize themselves
  to provide valuable goods and services. In doing so, they create jobs for themselves, their families,
  and neighbors that are inherently sustainable after the departure of other actors. Host nation enterprises
  may provide various goods and services, including essential services such as small-scale sewerage, water,
  electricity, transportation, health care, and communications. The availability of financing through banking
  or microfinance institutions is essential to enterprise creation. Essential tasks may include—
  • Implement initiatives to provide immediate employment.
  • Create employment opportunities for all ages and genders.
  • Assess the labor force for critical skills requirements and shortfalls.
  • Assess market sector for manpower requirements and pay norms.
  • Implement public works projects.
  • Support establishment of a business registry to register lawful business activity at the local
  or provincial level.
  • Provide start-up capital for small businesses through small-scale enterprise grants.
  • Encourage the creation of small lending institutions.
  • Enable the development of financial institutions.
  Support Public Sector Investment Programs
  7-83. Organizations such as the US Agency for International Development usually manage public sector
  investment in a fragile state. However, the military force can also influence success in these programs.
  Public sector investment ensures the long-term viability of public education, health care, and mass transit.
  It also provides for development in industries—such as mining, oil, and natural gas—and hydroelectricity.
  At the tactical level, units may spur investment through grant programs or direct public investment
  projects. Essential tasks may include—
  • Identify projects that require large amounts of labor.
  • Prioritize public investment needs.
  • Develop plans to allocate available resources.
  Support Private Sector Development
  7-84. Developing the private sector typically begins with employing large portions of the labor force.
  In addition to acquiring goods and services from the local economy, the tasks that support private sector
  development infuse much-needed cash into local markets and initiate additional public investment
  and development. Essential tasks may include—
  • Identify projects that require large amounts of labor.
  • Assess the depth of the private sector and enterprise creation.
  • Identify obstacles to private sector development.
  • Facilitate access to markets.
  • Strengthen the private sector through contracting and outsourcing.
  • Provide investors with protection and incentives.