Greed and Grievance in Civil War

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

Aid, Policy, and Growth in Post-Conflict Societies

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.

CDD in post-conflict and conflict-affected areas : experiences from East Asia

Community Driven Development (CDD) projects are now a major component of World Bank assistance to many developing countries. While varying greatly in size and form, such projects aim to ensure that communities have substantive control in deciding how project funds should be used. Giving beneficiaries the power to manage project resources is believed by its proponents to lead to more efficient and effective fund use. It is also claimed that project-initiated participatory processes can have wider ‘spillover’ impacts, building local institutions and leadership, enhancing civic capacity, improving social relations and boosting state legitimacy. This paper briefly reviews the World Bank’s experience of using CDD in conflict-affected and post-conflict areas of the East Asia and Pacific region. The region has been at the forefront of developing large-scale CDD programming including high profile ‘flagships’ such as the Kecamatan Development Program (KDP) in Indonesia and the Kapitbisig Laban Sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) project in the Philippines. As of the end of 2007, CDD constituted fifteen percent of the lending portfolio in East Asia compared with ten percent globally. Many of East Asia’s CDD projects have operated consciously or not in areas affected by protracted violent conflict. CDD has also been used as an explicit mechanism for post-conflict recovery in Mindanao in the Philippines and in Timor Leste, and for conflict victim reintegration in Aceh, Indonesia. It then looks at the evidence on whether and how projects have achieved these outcomes, focusing on a range of recent and current projects in Indonesia, the Philippines, Thailand, and Timor-Leste. The analysis summarizes results, draws on comparative evidence from other projects in the region and elsewhere, and seeks to identify factors that explain variation in outcomes and project performance. The paper concludes with a short summary of what we know, what we don’t, and potential future directions for research and programming.

Natural Resources and Violent Conflict : Options and Actions

Recent research undertaken by the Bank and others, suggest that developing countries face substantially higher risks of violent conflict, and poor governance if highly dependent on primary commodities. Revenues from the legal, or illegal exploitation of natural resources have financed devastating conflicts in large numbers of countries across regions. When a conflict erupts, it not only sweeps away decades of painstaking development efforts, but creates costs and consequences-economic, social, political, regional-that live on for decades. The outbreak of violent domestic conflict amounts to a spectacular failure of development-in essence, development in reverse. Even where countries initially manage to avoid violent conflict, large rents from natural resources can weaken state structures, and make governments less accountable, often leading to the emergence of secessionist rebellions, and all-out civil war. Although natural resources are never the sole source of conflict, and do not make conflict inevitable, the presence of abundant primary commodities, especially in low-income countries, exacerbates the risks of conflict and, if conflict does break out, tends to prolong it and makes it harder to resolve. As the Governance of Natural Resources Project (a research project) took shape, the discussion moved toward practical approaches and policies that could be adopted by the international community. This book presents the papers commissioned under the Governance of Natural Resources Project, offering a rich array of approaches and suggestions that are feeding into the international policy debate, and hopefully lead, over time to concerted international action, to help developing countries better manage their resource wealth, and turn this wealth into a driver of development rather than of conflict.

Transition from war to peace in Sub-Saharan Africa

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.

Towards Inclusive and Sustainable Development in the Democratic Republic of the Congo

Soon after coming to power in May 1997, the new government of Congo initiated a national reconstruction process, based on the principles of decentralization, and participation, to overcome the centralist, and authoritarian legacies of the past. The Government also prepared, and adopted a decree-law in 1998, with a view to institutionalizing these two principles during a transition period of two years. Despite the resurgence of war in August 1998, the Government’s decentralization policy remains, by and large appropriate. After presenting the legacies of Mobutu’s rule that propel the current need for decentralization, and participation, the paper discusses what these ideas mean to people at the grassroots level. Harnessing some of the many ideas expressed in consultations, and conferences sponsored by the Government, the paper discusses the substance of the Government’s decentralization policy, and the extent to which it was applied. The paper goes on to explain the growing role of traditional, and religious actors within Congolese society, and discusses their relationship to the new Government. Finally, the paper suggests building on the policy already initiated by the Government, to institutionalize participation, and decentralization, and use them to overcome the divisions left by decades of conflict.

Social Resilience and State Fragility in Haiti

This Country Social Analysis examines Haiti’s conflict-poverty trap from the perspective of the triangle of factors that have been identified as its main components: (a) demographic and socioeconomic factors at the individual and household levels; (b) the state’s institutional capacity to provide public goods and manage social risks; and (c) the agendas and strategies of political actors. This report’s three main chapters explore the nature of these components. The closing chapter considers the linkages among them.

Post-conflict security sector and public finance management : lessons from Afghanistan

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.

The Dynamics of Conflict, Development Assistance and Peace-building: Sri Lanka 2000-05

Significant transformations in the socio-political and economic landscape of Sri Lanka in recent years encouraged five development partners-World Bank, Asia Foundation, and the governments of the United Kingdom, Netherlands and Sweden to collaborate on a conflict assessment in 2005. This reflects a growing trend in the development partner community of combining efforts, pooling resources, and taking advantage of comparative strengths to engage in conflict analysis exercises. The multi-donor conflict assessment revisits the underlying structures of conflict, identified in the previous conflict assessment, and explores the current dynamics of conflict factors with a particular focus on the peace process and international engagement. This note presents key findings of the assessment, in particular, the approaches supported by development partners in Sri Lanka. While this is drawn solely from the Sri Lanka experience, it is likely to have a broad relevance to many such countries.

Recent Bank Support for Civil Service Reconstruction in Post-Conflict Countries

Civil service reconstruction is important in post-conflict countries because conflict erodes institutions and civil service capacity. And because successful reconstruction-in all sectors -requires domestic capacity to implement projects, a weak civil service undermines overall reconstruction efforts. Moreover, donor assistance is crucial to a country’s rebuilding, and coordinating such assistance requires a certain amount of civil service capacity. In addition, the Bank has found that country ownership is essential for successful projects. But country ownership can be jeopardized if international agencies and nongovernmental organizations (NGOs) dominate reconstruction efforts, overwhelming states already weakened by conflict. Civil service reconstruction offers an opportunity to start anew, with little of the resistance to civil service reform often encountered from politicians and civil servants. It allows good practices to be instilled from the outset-without having to undo bad ones.

Financing and Aid Management Arrangements in Post-Conflict Settings

This note, summarizing the analysis and recommendations of an upcoming CPR Working Paper of the same title, looks at issues related to financing modalities and aid management arrangements in post-conflict situations. It makes a number of recommendations based on a review of several recent case studies, of which four are assessed in detail: West Bank and Gaza, Bosnia and Herzegovina, East Timor, and Afghanistan. It focuses on the lessons of experience on multi-donor trust funds and on the recipient government’s aid management architecture in post-conflict settings. This paper is concerned with the specific issues of financing modalities and aid management arrangements in post-conflict situations, and advances a number of recommendations on the basis of a review of several recent cases, among which four are assessed in detail: West Bank and Gaza, Bosnia and Herzegovina, East Timor (Timor-Leste) and Afghanistan. While generally applicable recommendations do emerge from the review, the most important recommendation is to tailor the design and sequencing of financing and aid coordination to the circumstances of the specific case.

Demobilization and Reintegration Programs: Addressing Gender Issues

Women have always participated to some extent in combat, but several recent wars have seen them fighting on the front lines. And while the roles of female excombatants vary widely, the women seem to share one unfortunate characteristic: limited access to benefits when peace and demobilization come. This is also true for girls abducted for sexual services and the families of ex-combatants in the receiving community. These groups are often neglected during demobilization and reintegration; or at best, women, men, boys, and girls may receive equal benefits but are treated as a homogenous group, which prevents their specific needs from being addressed. Some think that the first objective of a DRP (Demobilization and Reintegration Program) is to have a positive impact on the peace dividend. Another goal often mentioned is the reduction of military expenditures for budgetary reasons. However, others argue that the DRP objectives should be to assist vulnerable excombatans.

Sierra Leone: Disarmament, Demobilization and Reintegration (DDR)

This note describes the Disarmament and Demobilization (D&D) of combatants from all warring parties in January 2002, which marked the official end of the civil war in Sierra Leone. D&D was part of a larger disarmament, demobilization, and reintegration (DDR) program, implemented by the Government of Sierra Leone with the support of the World Bank, together with other international institutions and Nongovernmenal Organizations (NGOs). The experience of Sierra Leone is discussed, as well as, how the Bank can play a role in post-conflict transitions, complementing political and security efforts of client governments and the international community.

Colombia Peace Programmatic I. Demobilization and Reinsertion of Ex-Combatants in Colombia

This report presents the results of the study on the demobilization and reinsertion of excombatants from illegal armed groups in Colombia. The report describes and analyzes the Colombian case, compares it with international experience, discusses critical issues of the current program, and presents options to improve its design and implementation. The study responds to a request by the Colombian government to conduct an assessment of the previous and current approaches to demobilization and reinsertion in Colombia and, in light of national and international experience, to present options to improve the program. This study relied principally on secondary data and information from existing studies, essays, and press articles produced by government agencies, nongovernmental organizations, United Nations and bilateral agencies, specialized analysts, and media. The analysis also used primary information collected for the study, including: (1) information from interviews with government and non-government sources about the current condition of individuals demobilized during the 1990s; (2) the profiles of a sample of young excombatants (18-26 years old) enrolled in the current reinsertion program in Medellin and Bogota; (3) the assessment of the demobilization and reinsertion experience of the 1990s as viewed by leaders of existing foundations from four of the demobilized groups; and (4) a special work session held with 50 representatives from diverse private-sector associations and businesses. This study assesses Colombia’s experience using a framework of five interwoven phases from armed conflict to peace: prevention, demobilization, reinsertion, reintegration, and reconciliation. This framework together with accumulated national and international best practices in technical aspects of the operations of disarmament, demobilization, and reinsertion (DDR) programs are used in the analysis of the current Program of Demobilization and Reinsertion (PDR).

Colombia Essays on Conflict, Peace, and Development

A purpose of this book is to present recent World Bank analytical work on the causes of violence and conflict in Colombia, highlighting pilot lending programs oriented to promote peace and development. The Bank’s international experiences in post-conflict situations in different countries and their relevance for Colombia are also examined in this volume. The identification of socio-economic determinants of conflict, violence, and reforms for peace came about as a key element of the Bank’s assistance strategy for Colombia, defined in conjunction with government authorities and representatives of civil society. This report is organized as follows: After the introductory chapter, Chapter 2 provides a conceptual framework for understanding a broad spectrum of political, economic, and social violence issues; identifies the role played by both the country’s history and the unequal access to economic and political power in the outbreak and resilience of political violence; and examines as costs of violence the adverse impact on Colombia’s physical, natural, human, and social capital. Chapter 3 analyzes the costs of achieving peace and its fiscal implications; and indicates that exclusion and inequality rather than poverty as the main determinants of violence and armed conflict. Chapter 4 reviews the Bank’s experience in assisting countries that are experiencing, or have already overcome, domestic armed conflict. The authors illustrate the relevance of these cases for Colombia.

Civil Society and Peacebuilding Potential, Limitations and Critical Factors

This report develops and discusses a new analytical framework to understand the functions of civil society in peace building. In theory and practice, there is a wide variety of ways to categorize civil society contributions to development and peacebuilding. Donors tend to employ actor-oriented perspectives, focusing on supporting activities of different types of civil society organizations in a given situation. This report proposes to move toward a functional perspective, centered on the roles that different actors can play in conflict situations. The analysis shows that civil society can make numerous positive contributions and have unique potential to support peacebuilding and conflict mitigation. It can do so independently as actor in its own right, or in relation to peacebuilding processes and programs led by Governments or the international community. Despite many successful initiatives on the ground, however, civil society should not be considered a panacea. The existence of civil society per se cannot be equated with the existence of peacebuilding actors. Similarly, civil society strengthening and support does not automatically contribute to peacebuilding. While civil society organizations are frequently actors for peace, they equally have the potential to become actors of violence. So far, outcomes and impacts of different civil society peace interventions have not been sufficiently evaluated. Civil society and donors need to more strategically identify the objectives and demonstrate the relevance of the particular approaches they propose to engage in different phases of conflict/peacebuilding. Without greater clarity regarding objectives and intended impacts, and, without addressing existing institutional constraints and distortions, activities run the risk of being well-intentioned, but unlikely to achieve sustainable results.

Building Capacity in Post-Conflict Countries

This note looks at the challenge of capacity building in post conflict countries, including options for creating capacity and the trade-offs between speed and longer-term impact, the need to ensure that aid management agencies include sunset provisions, and six proposed general lessons for more sustainable capacity building.