Integrating socio-economic recovery into post-conflict stabilization programmes

This brief states that economic development and violent conflict are closely interconnected. As such, socio-economic recovery should be integrated into existing post-conflict recovery strategy and policy.

The brief looks at the relationship between conflict and development, outlining socio-economic consequences of conflict common to post-conflict countries. It stresses that in the early phases of recovery focus should be placed on producing a peace dividend and state-building. The brief concludes by recommending that policy developments be based on socio-economic context assessments.

Key findings:

Economic factors can play a role in causing or helping to maintain conflict, e.g., where different groups fight for control over resources or seek to redress socio-economic inequalities through violence. Conflict in turn affects the economy, causing income poverty, disrupting economic activity and destroying livelihoods. Post-conflict environments share a number of socio-economic consequences. They include: economic regression, deterioration of infrastructure, social decay and weak governance.

During the early recovery phase, the creation of visible results and a peace dividend is crucial for the stabilization and peace-building process. It requires prioritization of economic activities that help to consolidate stability, provide tangible results and enhance income generation. Pragmatic, short-term and flexible programmes to stimulate demand and create jobs are required. During an early recovery phase, for instance, employment creation, even if short-term, for specific beneficiaries such as ex-combatants, high-risk youth, internally displaced persons and refugees should be prioritized. In later post-conflict phases, policy-makers can widen the scope to also include other participating economic actors. Local investors, including those operating in the informal sector, play an important role in the early recovery phase. They are less risk-averse than foreign investors who, generally require more favourable conditions if they are to be attracted.

State-building efforts should be started in the early post-conflict phase and, where possible, initiated already during the negotiations of a peace agreement. The state plays an important role in creating an environment that enables visible socio-economic results. Ensuring physical security, property rights protection and transparency in the justice system are central to improving the business climate. Laying a basis for an enabling environment sends a powerful signal that may raise the confidence of both domestic and foreign investors. When state institutions are weak, the private sector can play an important role in the delivery of basic services. However, there is a need to balance the costs of involving the private sector for service delivery and the benefits of building up state capacity to manage and deliver basic services to its citizens. Policy-makers should be careful not to undermine the authority of a government by establishing parallel systems and institutions for core functions of the state.

The starting point of any socio-economic policy should be the specific characteristics and needs of the local economy in a post-conflict situation. Thorough integrated context analyses, strategy development and impact assessments are important elements of a proper preparation process of any post-conflict intervention. These assessments should incorporate the economic dimension into security and governance components of reconstruction efforts.

Summary