What does the the international experience with post-conflict reconstruction tell us about financing modalities and aid arrangements in post-conflict situations? Are there a series of recommendations that emerge from the experiences of post conflict countries? This paper written on behalf of the World Bank looks at the experience of aid funds in four post-conflict environments. In a general sense a pre-requisite for post-conflict reconstruction and effective financing, is the establishment and maintenance of peace.
An identification of the contextual features of each conflict situation is mandatory for an effective reconstruction strategy and the design of the financing and aid architecture that is to embody that strategy:
- Each case has its own unique contributing features. In East Timor external assistance was affected by the absence of an administrative capacity, In Bosnia political and administrative fragmentation conditioned everything.
- Evidence from the four studies shows that a ‘useful checklist’ of possible checks can be identified, some are obvious and none are sophisticated, nor are they necessarily prescriptive.
- In a general context factors such as a clear mandate, working for genuine partnership and proactive communication are important.
- In terms of structure and design, to aid in reconstruction a Multi Donor Trust Fund (MDTF) will be set up. An Aid Management Agency (AMA) will act as the bridge between donors and the government.
- A single umbrella MDTF will accomplish little to aid effectiveness however, if its design is faulty or its provisions are disregarded by donors, or the security environment is unstable.
- If no donor contributes there is no MDTF. This tautology underlines the necessity to focus on incentives for individual donors to join an MDTF.
In terms of policy, it seems the dynamics of the development business and short-term urgencies typical of a post-conflict situation have often been allowed to prevail over long term institutional objectives.
- The most obvious, but perhaps important, recommendation is to tailor design and sequencing of financial aid and aid coordination to the circumstances of the specific case.
- A balance between ‘outsider nationals’ and ‘insider nationals’ is very important for sustainability. The balance must be found, however, by the countries’ people themselves.
- Local organisations and NGOs should not be by-passed in post-conflict reconstruction programmes. NGOs and local communities are often the only ones capable of implementing activities on the ground.
