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Home»GSDRC Publications»Economic Growth and Statebuilding

Economic Growth and Statebuilding

Helpdesk Report
  • Huma Haider
January 2010

Question

Please identify literature on the linkages between on the one hand economic growth and employment generation, and on the other hand peace and statebuilding in conflict-affected and fragile states.

Summary

There is very limited literature that explicitly discusses linkages between (1.) economic growth and employment generation and (2.) state- and peace-building. As such, this helpdesk report relies on literature that makes implicit references to such connections. The following are a summary of key points that emerged from the review. The review did not uncover any information on the gendered nature of these linkages.

  • Neoliberal policies for promoting economic growth have the potential to undermine state legitimacy
  • A key difficulty with the statebuilding process is limited state resources.
  • The inability of the state to address societal problems and to promote economic and employment opportunities has limited state legitimacy and contributed to social unrest
  • Building public trust in institutions and positive perceptions of the country’s future are important in promoting growth.
  • Taxation is of particular importance in statebuilding
  • Greater attention to job creation, inequalities and social protection is believed to contribute more effectively to statebuilding and peacebuilding processes
  • Both agricultural and industrial production have the potential to generate growth and substantial employment
  • Rapid privatisation of state-owned enterprises can be damaging from a statebuilding perspective as they can be exclusionary
  • The commodification of land can undermine peacebuilding by creating generations of disaffected landless populations
  • Focus on the natural resource sector can undermine state- and peace-building efforts
  • Attention to spatial and regional inequalities is also important in growth strategies and in peacebuilding.

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Enquirer:

  • DFID Growth Team

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