Engaging the private sector in peace building activities can help reduce tensions in even the most intractable conflicts. It also creates conditions for resolving problems that gave rise to conflict in the first place. There are many examples of commercial contact as a tool for conflict resolution...Georgia strongly discourages the recognition of Abkhazia and South Ossetia as independent states. But it recently adopted an action plan for engagement through cooperation. Its progressive approach emphasizes people-to-people and commercial contact to improve conditions and gradually build confidence on both sides...There are...mutually beneficial economic opportunities in construction, agricultural, tourism and power generation...Despite obstacles, grassroots contacts between Georgians and Abkhaz are increasing...Russia, however, turns a blind eye to these people-to-people exchanges...Peace building through business reduces tensions within Georgia. By involving Russians in mutually beneficial transactions, it can also reduce the possibility of renewed violence between Russia and Georgia.