A peace agreement defines the terms of a peaceful transition after violent conflict. Generally, there are three components to a peace agreement: procedural, substantive and organizational. Procedural components define procedures for resolving conflicts and clarify the HOW, while substantive provisions attempt to resolve the WHAT of the conflict. An example of a substantive provision is an agreement to establish a truth commission, which provides closure and justice for atrocities committed during a war.
Substantive components are often the most important in a peace agreement, and include political reforms such as power-sharing arrangements and mechanisms to address past injustices. Some scholars have also found that economic claims and motivations are often the root cause of conflict, and addressing these issues in a post-conflict context is crucial to building lasting peace.
A key issue in the substantive category is how to manage the transition from war to peace, including disengagement, demobilization and reintegration of armed groups and other non-state actors. This involves recognizing the security concerns of both individuals and groups, while simultaneously providing them with new opportunities to live and work peacefully with each other. In addition, the private sector has an important role to play in this process (Rettberg 2019). Its support or resistance to PAI is often related to its need for peace so it can operate properly; its willingness to help facilitate a peaceful transformation; and its anticipation of renewed investment, profit, and growth. All of these factors will influence the duration and depth of peace.