The number of post-conflict areas has rapidly increased over the past years. Donor agencies are playing a big role in assisting the enormous and complex task of post-conflict reconstruction. What lessons can be learned from the past experiences of rebuilding shattered countries and societies?
A paper from the World Bank explores this question in El Salvador, a country destroyed by many years of violent conflict, caused by social and economic inequalities. After the Peace Accords were signed in 1992, El Salvador experienced a major economic and social recovery. However, the challenges of providing equal opportunities, addressing the huge crime levels and developing a viable civil society remain to be tackled. This paper looks at the Bank’s institutional abilities and experiences in responding effectively to the demands of society rebuilding after conflict.
The Bank has played a versatile role in the post-conflict restoration and economic recovery of El Salvador. The main thrust of the Bank’s post-conflict program in the economic sphere has been in support of policy and institutional reforms.
Other findings from this paper are that:
- The Bank has used a broad array of mechanisms to support the transition to peace and the resumption of economic and social development. Its lending operations have consisted of macroeconomic and sectoral adjustment reforms, direct investment and technical assistance in support of reconstruction.
- The Bank’s assistance to El Salvador focused mainly on macro-economic reform but also included projects addressing the health and education sectors to improve the country’s poor social indicators. In this context, the Bank seized a window of opportunity in supporting Educación con Participación de la Comunidad (EDUCO), the community self-managed education initiative of the government.
- One of the most crucial roles the Bank played in initial post-conflict years was to call a series of donor consultative meetings for El Salvador, which helped to mobilise international economic support.
- The Bank has been criticised for not conditioning its assistance more directly in support of the Peace Accords (so-called peace conditionality). But through its aid coordination role, policy dialogue and operations, the Bank provided considerable direct and indirect support for the Peace Accords.
- However, no effort – with or without donor support – has yet shown any real promise for reversing perhaps the most serious socioeconomic legacy of the conflict: Violent crime, or ‘microinsecurity’, of epidemic proportions.
Post-conflict reconstruction is a complex process. Donors and outside agencies need to be aware that:
- Supporting the achievement of macroeconomic stabilization is an area of comparative advantage for the Bank and should be one of its highest priorities in post-conflict situations.
- Pursuit of economic reforms should continue incrementally, taking into account the country’s historical and current policy and institutional enabling environment.
- The Bank should pursue appropriate conditionality with a post-conflict country through its role as a leader in aid coordination, in its direct policy dialogue, and through its portfolio.
- The Bank should be prepared to take some risk in supporting innovative pilot activities, such as EDUCO, that have the potential to reform deficiencies in pre-conflict policies and institutions.
- A crucial policy tester is to see whether the reforms, if implemented, will result in enough employment and broad income generation to reverse trends in poverty, unemployment and crime.
- Given their importance in post-conflict situations, the Bank should have effective communication and working relationships with civil society, including local NGOs, and – with the assent of the government – the political opposition.
- While staffing decisions are important for every country programme, they are particularly critical to the effectiveness of the Bank’s contribution to post-conflict reconstruction.
