Wealth creation is not sufficient on its own to resolve conflict. Moreover, it can exacerbate tensions and lead to the renewal of conflict if the benefits of economic recovery are perceived to be unevenly distributed (Bray, 2009). Country growth policies and strategies can result in inclusive growth or in benefits that reach only a small segment of the population. In Angola, for example, post-conflict economic growth has been driven by the capital-intensive oil sector and foreign investors, with insubstantial improvements in local employment. In contrast, a key driver of growth in Mozambique has been the agricultural sector, which engages a large segment of the population, broadens the tax base and provides revenue for services. Such forms of recovery can decrease the likelihood of conflict as people perceive that they have more to lose now from engaging in combat (UNDP, 2008).
According to International Alert (2008), conflict sensitive approaches should be combined with political economy analysis to identify and address underlying power disparities and vulnerabilities; and tailor interventions to contribute to successful economic recovery. They note, however, that few agencies consistently apply a conflict sensitive approach to economic recovery. The UNDP (2008) emphasises that low incomes, slow growth, high levels of inequality and mass unemployment in post-conflict settings increase the risks of a return to violent conflict. As such, conflict sensitive policies for economic recovery should include the three critical goals of restoring economic growth, generating productive work and countering horizontal inequalities.
The potential for economic activity to facilitate inter-group connections and build trust and social cohesion is discussed in the literature addressing post-conflict reconstruction. It may be beneficial in certain circumstances to make peacebuilding an explicit part of the economic recovery process. In Rwanda, for example, the Government fostered daily contact between Hutus and Tutsis through joint work on coffee plantations. The aim alongside economic gains is relationship and community-building (UNDP, 2008). In order for such initiatives to be effective, however, these societal relationships should have existed prior to the conflict such that those intervening are not attempting to create new connections (Goddard, 2009). Such initiatives also risk being counterproductive if participants feel coerced into engaging in inter-group contact in order to receive benefits from development assistance.
Unintended positive effects of building social capital in Bosnia and Herzegovina
The primary aim of the Srebrenica Milk Road Project, financed by the Dutch government through UNDP, is to increase commercial dairy production and improve the economic situation of families in the region involved with the project. Farmers have organised themselves into producer groups composed of Bosniak (Bosnian Muslim) returnees and Serb residents, with each producer group linked to a local milk collection centre. The main outcome of the project has been increased efficiency and profitability of local milk production. An unexpected consequence was the building of networks of reciprocity and trust across the two ethnic groups as they began to share equipment and information, and help each other out. This has contributed to better conditions for the reintegration of returnees. Such social ties, in turn, are considered to be a solid basis for future economic development of the area (UNDP, 2009).
Key texts
Mallett, R. & Slater, R. (2012). Growth and livelihoods in conflict-affected situations: What do we know? London: ODI
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UNDP. (2008). Post-conflict economic recovery: enabling local ingenuity (Crisis Prevention and Recovery Report 2008). New York: Bureau for Crisis Prevention and Recovery, UNDP.
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Case studies
International Alert. (2008). Building a peace economy in Northern Uganda: Conflict-sensitive approaches to recovery and growth (Investing in Peace, Issue No. 1). London: International Alert.
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UNDP BiH. (2009). The ties that bind: social capital in Bosnia and Herzegovina. (National Human Development Report). Sarajevo: UNDP BiH
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Additional resources
McCandless, E. & McDougal, T. (2009). Economic Recovery. Peacebuilding Initiative, Humanitarian Policy and Conflict Research (HPCR), Harvard University & HPCR International.
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Raven-Roberts, A. (2013). Women and the political economy of war. In C. Cohn (Ed.) Women and wars: contested histories uncertain futures (pp. 36-53). Cambridge: Polity Press.
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USAID. (2005). Livelihoods and conflict: a toolkit for intervention. Washington, DC: USAID.
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- Bray, J. (2009). The role of private sector actors in post-conflict recovery. Conflict, Security & Development, 9(1), 1-26. See document online
- Goddard, N. (2009). Do no harm and peacebuilding: five lessons. Cambridge, MA: CDA. See document online