Why is it that the World Bank has failed to effectively incorporate the impact of regionalisation within its economic development strategies and policy advice for borrowing countries? This is an interesting puzzle given the increasing importance that scholarly observers, policy practitioners and development agencies have attached to regionalism and regionalisation in recent years. In the fiscal years 1995?2005, the World Bank provided only US$1.7 billion in support for regional (or multi-country) operations across the globe?this is less than 1 percent of its project and other funding overall. In South-East Asia, while the Asian Development Bank has had a particularly strong engagement with regionalism, the World Bank has only recently started to come on board with regional analysis and programs. The article proposes that the gap is due to a combination of institutional and ideological factors, and explores this proposition through a study of the World Bank in Vietnam.
To examine the relationship between patient satisfaction and doctor performance, the authors observed 2,271 interactions between 292 doctors and their patients in this paper presents a game theory model of the strategic interaction between Khartoum and Juba leading up to the referendum on Sudan’s partition in 2011. The findings show that excessive militarization and brinksmanship is a rational response for both actors, neither of which can credibly commit to lower levels of military spending under the current status quo. This militarization is often at the expense of health and education expenditures, suggesting that the opportunity cost of militarization is foregone economic development. These credibility issues might be resolved by democratization, increased transparency, reduction of information asymmetries, and efforts to promote economic and political cooperation. The paper explores these devices, demonstrating how they can contribute to Pareto preferred outcomes in equilibrium. The authors characterize the military expenditure associated with the commitment problem experienced by both sides, estimate its costs from data for Sudan, and identify the opportunity cost of foregone development implied by continued, excessive, and unsustainable militarization.
In the two to five years immediately following end of conflicts, UN peacekeeping operations have succeeded in maintaining peace, while income and consumption growth rates have been higher than normal and recovery on key education and health indicators has been possible. Aid also has been super-effective in promoting recovery, not only by financing physical infrastructure but also by helping in the monetary reconstruction of postconflict economies. However, sustaining these short-term gains was met with two difficult challenges. First, long-term sustainability of peace and growth hinges primarily on the ability of postconflict societies to develop institutions for the delivery of public goods, which, in turn, depends on the capacity of post-conflict elites to overcome an entrenched culture of political fragmentation and form stable national coalitions, beyond their immediate ethnic or regional power bases. Second, after catch-up growth runs its course, high levels of aid could lead to overvalued real currencies, at a time when growth requires a competitive exchange rate and economic diversification. Successful peace-building would, therefore, require that these political and economic imperatives of postconflict transitions be accounted for in the design of UN peacekeeping operations as well as the aid regime.
To establish even a marginally functioning economy out of the wreckage of Iraq would have been a daunting task. Despite decades of a heavily controlled, state-run economy; the deterioration caused by a succession of wars; a decade of international sanctions; and the looting and sabotage that followed the 2003 war, the U.S. government set its sights high after toppling Saddam Hussein: to create a liberal, market-based Iraqi economy, a key piece of its broader goal to bring democracy to Iraq.
Within the broader debate over the political economy of statebuilding, the role of foreign direct investment (FDI) in fragile and post-conflict settings is increasingly controversial but still understudied. This paper examines the tensions between the good governance agenda currently being implemented in Iraq and the investment dynamics occurring at the country’s national and provincial levels. Drawing on disaggregated data, the paper argues that the flow of FDI is reinforcing destabilizing dynamics in Iraq by increasing levels of inequality, deepening the decentralization process, and undermining internal and external balances of power.
May 2000 Of the 27 major armed conflicts that occurred in 1999, all but two took place within national boundaries. As an impediment to development, internal rebellion especially hurts the world’s poorest countries. What motivates civil wars? Greed or grievance? Collier and Hoeffler compare two contrasting motivations for rebellion: greed and grievance. Most rebellions are ostensibly in pursuit of a cause, supported by a narrative of grievance. But since grievance assuagement through rebellion is a public good that a government will not supply, economists predict such rebellions would be rare. Empirically, many rebellions appear to be linked to the capture of resources (such as diamonds in Angola and Sierra Leone, drugs in Colombia, and timber in Cambodia). Collier and Hoeffler set up a simple rational choice model of greed-rebellion and contrast its predictions with those of a simple grievance model. Some countries return to conflict repeatedly. Are they conflict-prone or is there a feedback effect whereby conflict generates grievance, which in turn generates further conflict? The authors show why such a feedback effect might be present in both greed-motivated and grievance rebellions. The authors’ results contrast with conventional beliefs about the causes of conflict. A stylized version of conventional beliefs would be that grievance begets conflict, which begets grievance, which begets further conflict. With such a model, the only point at which to intervene is to reduce the level of objective grievance. Collier and Hoeffler’s model suggests that what actually happens is that opportunities for predation (controlling primary commodity exports) cause conflict and the grievances this generates induce dias-poras to finance further conflict. The point of policy intervention here is to reduce the absolute and relative attraction of primary commodity predation and to reduce the ability of diasporas to fund rebel movements. This paper – a product of the Development Research Group – is part of a larger effort in the group to study civil war and criminal violence
Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely ‘let them fight it out among themselves’ and that ‘nothing can be done’ because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.
Countries emerging from civil war attract both aid and policy advice. This paper provides the first systematic empirical analysis of aid and policy reform in the post-conflict growth process. It is based on a comprehensive data set of large civil wars and covers 27 countries that were in their first decade of post-conflict economic recovery during the 1990s. The authors first investigate whether the absorptive capacity for aid is systematically different in post-conflict countries. They find that during the first three post-conflict years, absorptive capacity is no greater than normal, but that in the rest of the first decade it is approximately double its normal level. So ideally, aid should phase in during the decade. Historically, aid has not, on average, been higher in post-conflict societies, and it has tended to taper out over the course of the decade. The authors then investigate whether the contribution of policy to growth is systematically different in post-conflict countries, and in particular, whether particular components of policy are differentially important. For this they use the World Bank policy rating database. The authors find that growth is more sensitive to policy in post-conflict societies. Comparing the efficacy of different policies, they find that social policies are differentially important relative to macroeconomic policies. However, historically, this does not appear to have been how policy reform has been prioritized in post-conflict societies.
Many countries complete tenuous transitions to democracy and must work to prevent an authoritarian reversal, which is often at the hands of the military. One of the most important tools the new government has in dealing with the military is the amount of money allocated to the military. This leads to the question, how does government military spending in post-transition democratic countries affect the chances of democratic transition failure? The extant literature provides two answers. The first is to increase military spending to placate the military; the second is to decrease military spending to weaken the military and address social welfare needs. The article tests these two hypotheses by examining democratic transitions from 1967 to 1999 using both logit and survival analysis methods. The results of the study provide robust support for the hypothesis that decreasing military spending decreases the likelihood of a democratic transition failure.
Local peace initiatives have been introduced in post-conflict settings in aid of statebuilding processes. However, contradictions in such efforts that undermine the state become apparent in a development context when government institutions are, generally, functioning. Peacebuilding initiatives in the arid lands of Kenya are a good example of this. While they have proved successful in resolving conflicts at the local level, they challenge the state structure in three ways. First, some of their features run counter to the official laws of Kenya and jeopardize the separation of powers. Second, they pose a dilemma, since their success and legitimacy are based on grassroots leadership and local concepts of justice. Both can be at odds with democratic decision-making, inclusiveness and gender equity. Third, they provide yet another tool for abuse by politicians and other local leaders. This reveals a dilemma: aspects of peacebuilding can actually undermine a statebuilding endeavour.
The two volumes of Understanding Civil War build upon the World Bank’s prior research on conflict and violence, particularly on the work of Paul Collier and Anke Hoeffler, whose model of civil war onset has sparked much discussion on the relationship between conflict and development in what came to be known as the “greed” versus “grievance” debate. The authors systematically apply the Collier-Hoeffler model to 15 countries in 6 different regions of the world, using a comparative case study methodology to revise and expand upon economic models of civil war. (The countries selected are Burundi, Congo, Democratic Republic of Congo, Nigeria, Kenya, Mozambique, Sudan, Algeria, Mali, Senegal, Indonesia, Lebanon, Russian Federation, Colombia, Northern Ireland, Bosnia-Herzegovina, Macedonia, and the Caucasus.) The book concludes that the “greed” versus “grievance” debate should be abandoned for a more complex model that considers greed and grievance as inextricably fused motives for civil war.
Since the end of the cold war, interventions to stabilize post-conflict societies have grown in number, length and scope, no longer just interposing troops between combatants and negotiating a peace agreement, but engaging in far-reaching efforts of institutional and societal transformation to prevent a relapse into war and to encourage a sustainable peace. On the one hand, this expansion of peacebuilding reflects the recognition that functioning institutions are central to post-conflict stability, as they can help to manage conflicts over power, resources and identity in divided societies. For most of the international organizations and donors involved in post-conflict peacebuilding, these institutions are liberal-democratic ones by necessity because they are considered to give all conflict parties a stake in the new, post-war order, they are concomitant with the protection of human rights and the rule of law, and they encourage economic growth. On the other hand, the expansion of peacebuilding activities reflects a growing understanding of how war economies have perpetuated conflict and how economic power structures and dynamics can persist well into peacetime. As well as causing war and sustaining it, the political economy of conflict also shapes the possibilities and the nature of the peace that follows. This emphasis on the role of political institutions and political economy in post-conflict peacebuilding has increasingly shifted the attention of peacebuilders towards the issue of corruption. Closely associated with the distortion of the market and the malfunction of political institutions, corruption is considered a key challenge to consolidating peace because it hinders economic development, perpetuates the unjust distribution of public resources, and undermines the legitimacy and effectiveness of government. In recent years, there has been a growing literature on the impact of corruption after conflict. This collection of papers aims to contribute to this debate by examining the specific conceptual and political challenges that corruption poses to post-conflict peacebuilding. Across the different papers in this special issue, a complex set of issues emerges to shape our understanding of postconflict corruption, its impact on stability and development, and the consequences of anti-corruption measures in the context of peacebuilding efforts. In this introduction, the implications for peacebuilding will be discussed in greater detail.
This paper summarises our state of knowledge regarding diaspora engagement in conflict societies. It presents a map of possible diaspora contributions and their specific potential positive and negative impacts in societies experiencing or recovering from conflict. Following a discussion of diasporas and their motivations for engagement in their places of origin, the paper reviews the specific remittance, philanthropy, human capital and policy influence contributions, both positive and negative, that diasporas may make. Policy implications include the need more systematically to include considerations of diasporas in conflict/post-conflict interventions, and based on a more careful case-by-case analysis, using the provided map as a starting point. Such analyses can inform decisions of when to tolerate, unencumbered, diaspora engagement; when to facilitate or support such engagement; and when to consider strategic partnering with diaspora efforts. By mapping potential positive and negative influences of diasporas, the paper establishes why a more nuanced understanding of diasporas and peace and conflict is so important to policy and practice for a more peaceful world.
The social reintegration of ex-combatants is one of the most critical aspects of peacebuilding processes. However, contrary to economic reintegration in which it would be possible to set up some quantitative indicators in terms of accessing vocational training opportunities, employment and livelihoods income for the assessment of success, social reintegration is an intangible outcome. Therefore, what constitutes a successful social reintegration and how it could be assessed continues to be the challenge for both academics and practitioners. This article will undertake an investigation of the preliminary parameters of social reintegration at the macro, meso and micro levels in order to identify a set of indicators for programme assessment. A nuanced understanding of ex-combatant reintegration is expected to allow the development of context-based indicators according to the specific characteristics of that particular environment. The article also recommends the use of participatory research methods as they would be more appropriate for the measurement of social reintegration impact.
This book highlights the gender dimensions of conflict, organized around major relevant themes such as female combatants, sexual violence, formal and informal peace processes, the legal framework, work, the rehabilitation of social services and community-driven development. It analyzes how conflict changes gender roles and the policy options that might be considered to build on positive aspects while minimizing adverse changes. The suggested policy options and approaches aim to take advantage of the opportunity afforded by violent conflict to encourage change and build more inclusive and gender balanced social, economic and political relations in post-conflict societies. The book concludes by identifying some of the remaining challenges and themes that require additional analysis and research.
Several devastating conflicts have persisted in Sub-Saharan Africa for the past 20 years or more. Some countries are still emerging from the era of cold war politics, while debilitating internal struggles continue to plague others. Ethiopia, Namibia, South Africa, Uganda, and more recently, Angola and Mozambique are examples of the former. The latter is illustrated by the situation in countries such as Liberia, Somalia and the Sudan. This study, the transition from war to peace in Sub-Saharan Africa, offers practical guidance and examples of good practice for improving the design and implementation of programs for demobilization, reinsertion, and reintegration of ex-combatants and their dependents in client countries. It also provides a list of early warning signals that indicate whether the demobilization and reintegration programs (DRPs) process is not going according to plan and suggests preventive actions. Work on the ground, as well as case analysis in countries such as Ethiopia, Namibia, Uganda, Angola, Mozambique, and Rwanda form the basis of the suggested good practice in DRPs.
In recent years, international organizations have concluded that standard principles of Public Finance Management (PFM) are equally applicable to all areas of the national budget, including the security sector. In many cases long-term external assistance may be required for the security sector, generating severe trade-offs with other priority sectors which also require long-term external support. Overcoming the legacy of a fiscally unsustainable and poorly managed security sector calls for full application of PFM principles to support the establishment of checks and balances required to establish a wholly accountable security sector. The recent World Bank PFM review of Afghanistan, perhaps the first example of such a review, provides a number of lessons, summarized in this note. Some of these include: security in post-conflict situations is a key condition for a return to political normalcy and conversely, development is also needed for security; PFM practices can take into consideration the most complex and confidential issues without undermining the application of the fundamental principles of accountability to elected civil authorities; and reviewing security reform through a PFM lens reduces risks and costs to both the country concerned and donors.
This document first outlines a comprehensive strategy for disarmament, demobilization and reintegration (DDR) activities in the greater Great Lakes region of central Africa. The purpose of this strategy is to enhance the prospects for stabilization and recovery in the region. The DDR of the ex-combatants is necessary to establishing peace and restoring security, which are in turn pre-conditions for sustainable growth and poverty reduction. A multi-country approach will enhance effectiveness of the international response, provide greater coherence among DDR activities, facilitate positive feedback relationships among DDR activities in the region, provide similar incentives for all parties to the conflict to pursue peaceful strategies, address the regional externalities associated with some individual programs, enhance transparency of closely related DDR activities, and facilitate knowledge-sharing and training across DDR implementers. A regional strategy also serves as a confidence-building measure. The strategy, if successfully implemented, will have a significant impact on reducing poverty by helping to consolidate peace, building confidence among governments in the region, helping to free up national resources for investment, attracting foreign capital, investing in the human capital of ex-combatants, and enhancing capacities for development at the community level.