What role can employment generation play in stabilisation and immediate post-conflict environments? Is it appropriate to focus on livelihood creation in the first year after the cessation of fighting? This report from the United States Institute of Peace suggests that employment generation and economic development should be given a high priority in reconstruction efforts.
Livelihood creation is generally a secondary objective in post-war transformation. It has been a lower priority that security, humanitarian aid and restoring the rule of law. Security has to be an essential component of any economic development programme or initiative aimed at job creation.
The term the ‘golden hour’ refers to the window of opportunity after the cessation of fighting. (It is borrowed from medical literature, where it represents a crucial moment that could mean the difference between life and death for a critically ill patient.) During this period, suggested as lasting approximately a year, either the foundations for long-lasting peace are laid, or conditions are set for a recurrence of fighting. During the ‘golden hour’ there is an opportunity for a variety of activities to facilitate economic investment and employment generation, ranging from military interventions and humanitarian assistance programmes to private sector missions.
The US military has played a role in livelihood creation activities. Other potential actors, such as NGOs and donor agencies, struggle in stabilisation contexts because of excessive security costs. Often humanitarian aid organisations are the first to implement livelihood creation initiatives during the ‘golden hour’. However, humanitarian and military programmes are not intended to be long-term sustainable solutions but are generally quick impact projects that are short-term in nature. While this is important, there is also a need for vocational rehabilitation, microfinance programs and long-term job creation. An economic development strategy for the ‘golden hour’ should observe the following:
- Promoting good governance is central to generating employment. Predictable, impartial and transparent governing systems are essential for the establishment of strong economic foundations.
- Individuals and local businesses can prosper during the ‘golden hour’ if there is a need for the type of work they do e.g. construction work or legal and linguistic services.
- Women and youth are key groups to target for job creation. Supporting women’s livelihoods improves child survival. Young unemployed men are most likely to have been recruited into military services during the conflict and will need training to increase their chances of economic integration.
- Foreign investment usually occurs after the first year when security has improved. Initial investors tend to be from telecoms, construction / infrastructure and commercial banking industries.
- Microfinance can be effective during the ‘golden hour’ if mechanisms are already operational and widespread. However, what is often called ‘microfinance’ during this period should more accurately be described as grant-making, as repayment is not expected.
- The diaspora can play a key role in the economic reconstruction of their homelands.
US government policymakers should develop a coherent strategy for employment generation in stabilisation contexts. They must also understand that:
- Employment generation should be a priority for resource allocation.
- There is currently no coordination mechanism for job creation in the humanitarian assistance phase of a transformation operation. A focal point should be created to coordinate US government agency and international donor initiatives.
- Work undertaken by the military and humanitarian agencies on quick-impact job creation must be supplemented by effective strategies for long-term economic development and employment generation.
