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© 2011 The International Bank for Reconstruction and Development / The World Bank
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1 2 3 4 14 13 12 11

This document summarizes the World Development Report 2011. It is a product of the staff of
the International Bank for Reconstruction and Development / The World Bank. The findings,
interpretations, and conclusions expressed in this volume do not necessarily reflect the views
of the Executive Directors of The World Bank or the governments they represent.
   The World Bank does not guarantee the accuracy of the data included in this work. The
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Cover design: Heads of State
Typesetting: Barton Matheson Willse and Worthington

The manuscript for this overview edition disseminates the findings of work in progress to
encourage the exchange of ideas about development issues.


  By analyzing the nature, causes, and consequences of violent conflict today, and the suc-
  cesses and failures in responding to it, this World Development Report aims to sharpen the
  discussion on what can be done to support societies struggling to prevent or grapple with
  violence and conflict. Some of the ground that the Report covers falls outside the World Bank’s
  traditional development mandate, a reflection of a growing international policy consensus
  that addressing violent conflict and promoting economic development both require a deeper
  understanding of the close relationship between politics, security, and development. In study-
  ing this area the World Bank does not aspire to go beyond its core mandate as set out in its
  Articles of Agreement, but rather improve the effectiveness of development interventions in
  places threatened or affected by large-scale violence.
Foreword


In 1944, delegates from 45 countries gathered at Bretton Woods to consider the economic
causes of the World War that was then still raging, and how to secure the peace. They agreed
to create the International Bank for Reconstruction and Development (IBRD), the original
institution of what has become the World Bank Group. As the delegates noted, “Programs of
reconstruction and development will speed economic progress everywhere, will aid political
stability and foster peace.” The IBRD approved its first loan to France in 1947 to aid in the
rebuilding of that country.
    Over 60 years later, the “R” in IBRD has a new meaning: reconstructing Afghanistan, Bos-
nia, Haiti, Liberia, Rwanda, Sierra Leone, Southern Sudan, and other lands of conflict or
broken states. Paul Collier’s book, The Bottom Billion, highlighted the recurrent cycles of weak
governance, poverty, and violence that have plagued these lands. Not one low-income coun-
try coping with these problems has yet achieved a single Millennium Development Goal.
And the problems of fragile states spread easily: They drag down neighbors with violence
that overflows borders, because conflicts feed on narcotics, piracy, and gender violence, and
leave refugees and broken infrastructure in their wake. Their territories can become breeding
grounds for far-reaching networks of violent radicals and organized crime.
    In 2008, I gave a speech on “Securing Development” to the International Institute for Stra-
tegic Studies. I chose the forum to emphasize the interconnections among security, gover-
nance, and development, and to make the point that the separate disciplines are not well
integrated to address the inter-related problems. I outlined the challenge: bringing security
and development together to put down roots deep enough to break the cycles of fragility and
conflict.
    As we are now seeing again in the Middle East and North Africa, violence in the 21st cen-
tury differs from 20th-century patterns of interstate conflict and methods of addressing them.
Stove-piped government agencies have been ill-suited to cope, even when national interests or
values prompt political leaders to act. Low incomes, poverty, unemployment, income shocks
such as those sparked by volatility in food prices, rapid urbanization, and inequality between
groups all increase the risks of violence. External stresses, such as trafficking and illicit finan-
cial flows, can add to these risks.
    The 2011 World Development Report looks across disciplines and experiences drawn from
around the world to offer some ideas and practical recommendations on how to move beyond
conflict and fragility and secure development. The key messages are important for all coun-
tries—low, middle, and high income—as well as for regional and global institutions:
    First, institutional legitimacy is the key to stability. When state institutions do not adequately
protect citizens, guard against corruption, or provide access to justice; when markets do not
provide job opportunities; or when communities have lost social cohesion—the likelihood
of violent conflict increases. At the earliest stages, countries often need to restore public con-
fidence in basic collective action even before rudimentary institutions can be transformed.
Early wins—actions that can generate quick, tangible results—are critical.
                                                                                                         iii
iv   F O R E WO R D



         Second, investing in citizen security, justice, and jobs is essential to reducing violence. But
     there are major structural gaps in our collective capabilities to support these areas. There
     are places where fragile states can seek help to build an army, but we do not yet have similar
     resources for building police forces or corrections systems. We need to put greater emphasis
     on early projects to create jobs, especially through the private sector. The Report provides
     insight into the importance of the involvement of women in political coalitions, security and
     justice reform, and economic empowerment.
         Third, confronting this challenge effectively means that institutions need to change. Interna-
     tional agencies and partners from other countries must adapt procedures so they can respond
     with agility and speed, a longer-term perspective, and greater staying power. Assistance needs
     to be integrated and coordinated; multi-donor trust funds have proven useful in accomplish-
     ing these aims while lessening the burdens of new governments with thin capacity. We need
     a better handoff between humanitarian and development agencies. And we need to accept a
     higher level of risk: If legislatures and inspectors expect only the upside, and just pillory the
     failures, institutions will steer away from the most difficult problems and strangle themselves
     with procedures and committees to avoid responsibility. This Report suggests some specific
     actions and ways of measuring results.
         Fourth, we need to adopt a layered approach. Some problems can be addressed at the coun-
     try level, but others need to be addressed at a regional level, such as developing markets that
     integrate insecure areas and pooling resources for building capacity. Some actions are needed
     at a global level, such as building new capacities to support justice reform and the creation of
     jobs; forging partnerships between producer and consumer countries to stem illegal traffick-
     ing; and acting to reduce the stresses caused by food price volatility.
         Fifth, in adopting these approaches, we need to be aware that the global landscape is chang-
     ing. Regional institutions and middle income countries are playing a larger role. This means
     we should pay more attention to south-south and south-north exchanges, and to the recent
     transition experiences of middle income countries.
         The stakes are high. A civil conflict costs the average developing country roughly 30 years
     of GDP growth, and countries in protracted crisis can fall over 20 percentage points behind in
     overcoming poverty. Finding effective ways to help societies escape new outbursts or repeated
     cycles of violence is critical for global security and global development—but doing so requires
     a fundamental rethinking, including how we assess and manage risk.
         Any such changes must be based on a clear roadmap, and on strong incentives. I hope this
     Report will help others and ourselves in sketching such a roadmap.




                                                                        Robert B. Zoellick
                                                                        President
                                                                        The World Bank Group
Contents of Overview


Preamble 1

Part 1: The Challenge of Repeated Cycles of Violence 2
21st century conflict and violence are a development problem that
does not fit the 20th-century mold 2
Vicious cycles of conflict: When security, justice, and employment
stresses meet weak institutions 6

Part 2: A Roadmap for Breaking Cycles of Violence at the
        Country Level 8
Restoring confidence and transforming the institutions that provide
citizen security, justice, and jobs 8
Practical policy and program tools for country actors 16

Part 3: Reducing the Risks of Violence—Directions for
        International Policy 23
Track 1: Providing specialized assistance for prevention through citizen
         security, justice, and jobs 28
Track 2: Transforming procedures and risk and results management in
         international agencies 31
Track 3: Acting regionally and globally to reduce external stresses on
         fragile states 34
Track 4: Marshaling support from lower-, middle-, and higher-income
         countries and global and regional institutions, to reflect the
         changing landscape of international policy and assistance 35

Notes 39
References 44
Acknowledgments 53
Bibliographic Note 55


                                                                           v
This manuscript is a prepublication advance copy. This and all other material related to the
 World Development Report 2011 are embargoed until 00 01 hours (GMT), April 11, 2011.
Overview
VIOLENCE and
  FRAGILITY




               Preamble                                            ing poverty in the past 60 years, areas char-
                                                                   acterized by repeated cycles of political and




               E
                          fforts to maintain collective se-        criminal violence are being left far behind,
                          curity are at the heart of human         their economic growth compromised and
                          history: from the earliest times,        their human indicators stagnant.
                          the recognition that human safety            For those who now live in more stable
               depends on collaboration has been a mo-             neighborhoods, it may seem incomprehensi-
               tivating factor for the formation of village        ble how prosperity in high-income countries
               communities, cities, and nation-states. The         and a sophisticated global economy can coex-
               20th century was dominated by the legacy            ist with extreme violence and misery in other
               of devastating global wars, colonial struggles,     parts of the globe. The pirates operating off
               and ideological conflicts, and by efforts to        the coast of Somalia who prey on the ship-
               establish international systems that would          ping through the Gulf of Aden illustrate the
               foster global peace and prosperity. To some         paradox of the existing global system. How
               extent these systems were successful—wars           is it that the combined prosperity and capa-
               between states are far less common than they        bility of the world’s modern nation-states
               were in the past, and civil wars are declining      cannot prevent a problem from antiquity?
               in number.                                          How is it that, almost a decade after renewed
                   Yet, insecurity not only remains, it has        international engagement with Afghanistan,
               become a primary development challenge              the prospects of peace seem distant? How is it
               of our time. One-and-a-half billion people          that entire urban communities can be terror-
               live in areas affected by fragility, conflict, or   ized by drug traffickers? How is it that coun-
               large-scale, organized criminal violence, and       tries in the Middle East and North Africa
               no low-income fragile or conflict-affected          could face explosions of popular grievances
               country has yet to achieve a single United          despite, in some cases, sustained high growth
               Nations Millennium Development Goal (UN             and improvement in social indicators?
               MDG). New threats—organized crime and                   This World Development Report (WDR)
               trafficking, civil unrest due to global economic    asks what spurs risks of violence, why con-
               shocks, terrorism—have supplemented con-            flict prevention and recovery have proven so
               tinued preoccupations with conventional war         difficult to address, and what can be done by
               between and within countries. While much of         national leaders and their development, secu-
               the world has made rapid progress in reduc-         rity, and diplomatic partners to help restore a
2   WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1



    stable development path in the world’s most        clearly defined rebel movements, are known.
    fragile and violence-torn areas. The central       If a dispute escalates and full-scale hostilities
    message of the Report is that strengthening        ensue, an eventual end to hostilities (either
    legitimate institutions and governance to          through victory and defeat or through a ne-
    provide citizen security, justice, and jobs is     gotiated settlement) is followed by a short
    crucial to break cycles of violence. Restor-       “post-conflict” phase leading back to peace.
    ing confidence and transforming security,          The global system is largely built around this
    justice, and economic institutions is possible     paradigm of conflict, with clear roles for na-
    within a generation, even in countries that        tional and international actors in development
    have experienced severe conflict. But that         in promoting the prosperity and capability of
    requires determined national leadership and        the nation-state (but stepping out during ac-
    an international system “refitted” to address      tive conflict), in diplomacy in preventing and
    21st-century risks: refocusing assistance on       mediating disputes between states and be-
    preventing criminal and political violence,        tween government and rebel movements, in
    reforming the procedures of international          peacekeeping in the aftermath of conflict, and
    agencies, responding at a regional level, and      in humanitarianism in providing relief.
    renewing cooperative efforts among lower-,             21st century violence1 does not fit the
    middle-, and higher-income countries. The          20th-century mold. Interstate war and civil
    Report envisages a layered approach to ef-         war are still threats in some regions, but they
    fective global action, with local, national, re-   have declined over the last 25 years. Deaths
    gional, and international roles.                   from civil war, while still exacting an unac-
        Because of the nature of the topic, this Re-   ceptable toll, are one-quarter of what they
    port has been developed in an unusual way—         were in the 1980s (Feature figure F1.1).2 Vio-
    drawing from the beginning on the knowledge        lence and conflict have not been banished:
    of national reformers and working closely          one in four people on the planet, more than
    with the United Nations and regional institu-      1.5 billion, live in fragile and conflict-affected
    tions with expertise in political and security     states or in countries with very high levels of
    issues, building on the concept of human           criminal violence.3 But because of the suc-
    security. The hope is that this partnership        cesses in reducing interstate war, the remain-
    will spark an ongoing effort to jointly deepen     ing forms of conflict and violence do not fit
    our understanding of the links between secu-       neatly either into “war” or “peace,” or into
    rity and development, and will foster practical    “criminal violence” or “political violence”
    action on the Report’s findings.                   (see Feature 1, F1.1–1.2 and table F.1).
                                                           Many countries and subnational areas now
                                                       face cycles of repeated violence, weak gov-
    PART 1: THE CHALLENGE                              ernance, and instability. First, conflicts often
                                                       are not one-off events, but are ongoing and
    OF REPEATED CYCLES OF                              repeated: 90 percent of the last decade’s civil
    VIOLENCE                                           wars occurred in countries that had already
                                                       had a civil war in the last 30 years.4 Second,
    21st century conflict and violence                 new forms of conflict and violence threaten
    are a development problem that                     development: many countries that have suc-
    does not fit the 20th-century mold                 cessfully negotiated political and peace agree-
                                                       ments after violent political conflicts, such
    Global systems in the 20th century were            as El Salvador, Guatemala, and South Africa,
    designed to address interstate tensions and        now face high levels of violent crime, con-
    one-off episodes of civil war. War between         straining their development. Third, different
    nation-states and civil war have a given logic     forms of violence are linked to each other.
    and sequence. The actors, sovereign states or      Political movements can obtain financing
Overview                                                3




FEATURE 1   How violence is changing

                    F I G U R E F1.1                            Deaths from civil wars are declining

                    As the number of civil wars declined, the total annual deaths from these conflicts (battle
                    deaths) fell from more than 200,000 in 1988 to fewer than 50,000 in 2008.

                                                   300,000                                                                                     60


                                                   250,000                                                                                     50




                                                                                                                                                      Number of countries in civil war
                     Battle deaths in civil wars




                                                   200,000                                                                                     40


                                                   150,000                                                                                     30


                                                   100,000                                                                                     20


                                                    50,000                                                                                     10


                                                        0                                                                                       0
                                                         1960          1968          1976           1984          1992           2000       2008

                                                                   Total battle deaths per annum in all civil wars (minor and major)
                                                                   Total number of countries in civil war (minor and major)

                    Sources: Uppsala/PRIO Armed Conflict dataset (Harbom and Wallensteen 2010; Lacina and Gleditsch
                    2005); Gleditsch and others 2002; Sundberg 2008; Gleditsch and Ward 1999; Human Security Report
                    Project 2010.
                    Note: Civil wars are classified by scale and type in the Uppsala/PRIO Armed Conflict dataset Harbom and
                    Wallensteen 2010; Lacina and Gleditsch 2005). The minimum threshold for monitoring is a minor civil war
                    with 25 or more battle d a year. Low, high, and best estimates of annual battle deaths per conflict are in
                    Lacina and Gleditsch (2005, updated in 2009). Throughout this Report, best estimates are used, except
                    when they are not available, in which case averages of the low and high estimates are used.




            ta b l e F 1 .1                            Violence often recurs
                                                        Few countries are truly “post-conflict.” The rate of violence onset in countries with a previous
                                                        conflict has been increasing since the 1960s, and every civil war that began since 2003 was in
                                                        a country that had a previous civil war.

                                                      Violence onsets in countries with           Violence onsets in countries with           Number of
            Decade                                         no previous conflict (%)                    a previous conflict (%)                 onsets

            1960s                                                       57                                            43                             35

            1970s                                                       43                                            57                             44

            1980s                                                       38                                            62                             39

            1990s                                                       33                                            67                             81

            2000s                                                       10                                            90                             39

            Sources: Walter 2010; WDR team calculations.
            Note: Previous conflict includes any major conflict since 1945.



                                                                                                                                                    (Feature continued on next page)
4                                                                                WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1




FEATURE 2                     How violence is changing (continued)

Figure F1.2   Organized criminal violence threatens peace processes
              Homicides have increased in every country in Central America since 1999, including those that had made great
              progress in addressing political conflict—and this is not unique; countries such as South Africa face similar
              second generation challenges.

                                                            40
              Absolute change in homicide rate




                                                            30
                       relative to 1999




                                                            20


                                                            10


                                                             0


                                                           –10
                                                                 1999        2000        2001       2002           2003         2004   2005       2006   2007   2008   2009

                                                                          El Salvador           Honduras                  Guatemala      Belize
                                                                          Panama                Nicaragua                 Costa Rica

              Sources: WDR team calculations based on UNODC 2007; UNODC and Latin America and the Caribbean Region of the
              World Bank 2007; and national sources.
              Note: Base year for homicide rate is 1999 = 0.



How violence disrupts development

Figure F1.3   The gap in poverty is widening between countries affected by violence and others
              New poverty data reveal that poverty is declining for much of the world, but countries affected by violence are
              lagging behind. For every three years a country is affected by major violence (battle deaths or excess deaths
              from homicides equivalent to a major war), poverty reduction lags behind by 2.7 percentage points.

                                                           65
              (% of population living below $1.25 a day)




                                                           60
                        Poverty headcount




                                                           55

                                                           50

                                                           45

                                                           40

                                                           35
                                                             1981           1984        1987        1990           1993         1996   1999       2002   2005
                                                                        Countries affected by major violence
                                                                        Countries affected by minor violence
                                                                        Countries with negligible or no violence

              Sources: WDR team calculations based on Chen, Ravallion, and Sangraula 2008 poverty data (available on POVCALNET
              (http://iresearch.worldbank.org)).
              Note: Poverty is % of population living at less than US$1.25 per day.
Overview     5



from criminal activities, as in the Democratic        Attempts to contain violence are also
Republic of Congo and Northern Ireland.5          extremely costly. For example, the naval
Criminal gangs can support political violence     operation to counter piracy in the Horn of
during electoral periods, as in Jamaica and       Africa and the Indian Ocean is estimated to
Kenya.6 International ideological movements       cost US$1.3–$2 billion annually, plus addi-
make common cause with local grievances, as       tional costs incurred by rerouting ships and
in Afghanistan and Pakistan. Thus, the large      increasing insurance premiums.16 Efforts by
majority of countries currently facing vio-       households and firms to protect themselves
lence face it in multiple forms. Fourth, griev-   against long-duration violence impose heavy
ances can escalate into acute demands for         economic burdens: 35 percent of firms in
change—and the risks of violent conflict—in       Latin America, 30 percent in Africa, and 27
countries where political, social, or economic    percent in Eastern Europe and Central Asia
change lags behind expectations, as in the        identify crime as the major problem for
Middle East and North Africa.                     their business activities. The burden is high-
    Repeated and interlinked, these conflicts     est on those least able to bear the cost: firms
have regional and global repercussions. The       in Sub-Saharan Africa lose a higher percent-
death, destruction, and delayed develop-          age of sales to crime and spend a higher per-
ment due to conflict are bad for the conflict-    centage of sales on security than any other
affected countries, and their impacts spill       region.17
over both regionally and globally. A coun-            No low-income fragile or conflict-affected
try making development advances, such as          country has yet achieved a single MDG.
Tanzania, loses an estimated 0.7 percent of       People in fragile and conflict-affected states
GDP every year for each neighbor in conflict.7    are more than twice as likely to be under-
Refugees and internally displaced persons         nourished as those in other developing coun-
have increased threefold in the last 30 years.8   tries, more than three times as likely to be un-
Nearly 75 percent of the world’s refugees are     able to send their children to school, twice as
hosted by neighboring countries.9                 likely to see their children die before age five,
    The new forms of violence interlinking        and more than twice as likely to lack clean
local political conflicts, organized crime,       water. On average, a country that experienced
and internationalized disputes mean that          major violence over the period from 1981 to
violence is a problem for both the rich and       2005 has a poverty rate 21 percentage points
the poor: more than 80 percent of fatalities      higher than a country that saw no violence
from terrorist attacks over the last decade       (Feature 1, figure F1.3).18 A similar picture
were in nonwestern targets,10 but a study         emerges for subnational areas affected by vi-
of 18 Western European countries revealed         olence in richer and more stable countries—
that each additional transnational terrorist      areas where development lags behind.19
incident reduced their economic growth by             These repeated cycles of conflict and
0.4 of a percentage point a year.11 Attacks       violence exact other human, social, and eco-
in one region can impose costs all through        nomic costs that last for generations. High
global markets—one attack in the Niger            levels of organized criminal violence hold
Delta can cost global consumers of oil bil-       back economic development. In Guatemala,
lions in increased prices.12 In the four weeks    violence cost the country more than 7 percent
following the beginning of the uprising in        of GDP in 2005, more than twice the damage
Libya, oil prices increased by 15 percent.13      by Hurricane Stan in the same year—and
The interdiction of cocaine shipments to          more than twice the combined budget for
Europe has increased fourfold since 2003,14       agriculture, health, and education.20 The av-
with even areas such as West Africa now se-       erage cost of civil war is equivalent to more
riously affected by drug-related violence.15      than 30 years of GDP growth for a medium-
6   WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1



    size developing country.21 Trade levels after      Vicious cycles of conflict: When
    major episodes of violence take 20 years to        security, justice, and employment
    recover.22 In other words, a major episode         stresses meet weak institutions
    of violence, unlike natural disasters or eco-
    nomic cycles, can wipe out an entire genera-       Internal causes of conflict arise from po-
    tion of economic progress.                         litical, security, and economic dynamics.27
        These numbers have human conse-                Yet it is difficult to disentangle causes and
    quences. In highly violent societies, many         effects of violence. Lower GDP per capita
    people experience the death of a son or            is robustly associated with both large-scale
    daughter before their time: when children are      political conflict and high rates of homi-
    late coming home, a parent has good reason         cide.28 Youth unemployment is consistently
    to fear for their lives and physical safety. Ev-   cited in citizen perception surveys as a mo-
    eryday experiences, such as going to school,       tive for joining both rebel movements and
    to work, or to market, become occasions for        urban gangs (Feature 2, figure F2.2).29 Feel-
    fear. People hesitate to build houses or invest    ing more secure and powerful is also cited
    in small businesses because these can be de-       as an important motivator across countries,
    stroyed in a moment. The direct impact of          confirming existing research that shows
    violence falls primarily on young males—the        that employment dynamics have to do not
    majority of fighting forces and gang mem-          only with income but also with respect and
    bers—but women and children often suffer           status, involving social cohesion as well as
    disproportionately from the indirect effects.23    economic opportunity. Political exclusion
    Men make up 96 percent of detainees and 90         and inequality affecting regional, religious,
    percent of the missing; women and children         or ethnic groups are associated with higher
    are close to 80 percent of refugees and those      risks of civil war,30 while inequality between
    internally displaced.24 And violence begets        richer and poorer households is closely as-
    violence: male children who witness abuses         sociated with higher risks of violent crime
    have a higher tendency to perpetrate violence      (table 1.1).
    later in life.25                                       External factors can heighten the risks of
        Yet when security is reestablished and sus-    violence. Major external security pressures,
    tained, these areas of the world can make the      as with new patterns of drug trafficking, can
    greatest development gains. Several countries      overwhelm institutional capacities (see Fea-
    emerging from long legacies of both political      ture 2). Income shocks can also increase risks
    and criminal violence have been among the          of violence. Work on rainfall shocks in Sub-
    fastest making progress on the MDGs:26             Saharan Africa concludes that civil conflict
                                                       is more likely following years of poor rain-
    •	 Ethiopia	 more	 than	 quadrupled	 access	
                                                       fall. Using rainfall variation as a proxy for
       to improved water, from 13 percent of
                                                       income shocks in 41 African countries be-
       the population in 1990 to 66 percent in
                                                       tween 1981 and 1999, Satyanath, Miguel, and
       2009–10.
                                                       Sergenti (2004) found that a decline in eco-
    •	 Mozambique	more	than	tripled	its	pri	 ary	
                                            m          nomic growth of 5 percent increased the like-
       completion rate in just eight years, from       lihood of conflict by half the following year.31
       14 percent in 1999 to 46 percent in 2007.       Corruption—which generally has interna-
                                                       tional links through illicit trafficking, money
    •	 Rwanda	cut	the	prevalence	of	undernutri-
                                                       laundering, and the extraction of rents from
       tion from 56 percent of the population in
                                                       sales of national resources or international
       1997 to 40 percent in 2005.
                                                       contracts and concessions—has doubly per-
    •	 Bosnia	 and	 Herzegovina,	 between	 1995	       nicious impacts on the risks of violence, by
       and 2007, increased measles immuniza-           fueling grievances and by undermining the
       tions from 53 percent to 96 percent for         effectiveness of national institutions and so-
       children aged 12–23 months.                     cial norms.32 New external pressures from
Overview   7



ta b l e 1.1     Security, economic, and political stresses
  Stresses                                 Internal                                               External

  Security            •	   Legacies of violence and trauma                    •	   Invasion, occupation
                                                                              •	   External support for domestic rebels
                                                                              •	   Cross-border conflict spillovers
                                                                              •	   Transnational terrorism
                                                                              •	   International criminal networks

  Economic            •	   Low income levels, low opportunity                 •	   Price shocks
                           cost of rebellion                                  •	   Climate change
                      •	   Youth unemployment
                      •	   Natural resource wealth
                      •	   Severe corruption
                      •	   Rapid urbanization

                      •	   Ethnic, religious, or regional                     •	   Perceived global inequity and
  Justice                  competition                                             injustice in the treatment of ethnic or
                      •	   Real or perceived discrimination                        religious groups
                      •	   Human rights abuses

Source: WDR team.
Note: This table, although not exhaustive, captures major factors in the academic literature on the causes and correlates of
conflict and raised in the WDR consultations and surveys.33



climate change and natural resource compe-                          important for both political and criminal
tition could heighten all these risks.34                            violence (see Feature 2).37
    However, many countries face high un-
                                                                    •	 In	 some	 areas—as	 in	 the	 peripheral	 re-
employment, economic inequality, or pres-
                                                                       gions of Colombia before the turn of the
sure from organized crime networks but
                                                                       21st century38 or the Democratic Republic
do not repeatedly succumb to widespread
                                                                       of the Congo39 today—the state is all but
violence, and instead contain it. The WDR
                                                                       absent from many parts of the country,
approach emphasizes that risk of conflict and                          and violent armed groups dominate local
violence in any society (national or regional)                         contests over power and resources.
is the combination of the exposure to inter-
nal and external stresses and the strength of                       •	 Most	areas	affected	by	violence	face	defi-
the “immune system,” or the social capability                          cits in their collaborative capacities40 to
for coping with stress embodied in legitimate                          mediate conflict peacefully. In some coun-
institutions.35 Both state and nonstate institu-                       tries, institutions do not span ethnic, re-
tions are important. Institutions include so-                          gional, or religious divides, and state insti-
cial norms and behaviors—such as the ability                           tutions have been viewed as partisan—just
of leaders to transcend sectarian and politi-                          as they were for decades prior to the peace
cal differences and develop bargains, and of                           agreement in Northern Ireland.41 In some
civil society to advocate for greater national                         communities, social divisions have con-
and political cohesion—as well as rules, laws,                         strained effective collaboration between
and organizations.36 Where states, markets,                            elite dominated states and poor commu-
and social institutions fail to provide basic                          nities to address sources of violence.
security, justice, and economic opportunities                       •	 Rapid	 urbanization,	 as	 occurred	 earlier	
for citizens, conflict can escalate.                                   in Latin America and today in Asia and
    In short, countries and subnational ar-                            Africa, weakens social cohesion.42 Un-
eas with the weakest institutional legitimacy                          employment, structural inequalities, and
and governance are the most vulnerable to                              greater access to markets for firearms
violence and instability and the least able                            and illicit drugs break down social cohe-
to respond to internal and external stresses.                          sion and increase the vulnerability to
Institutional capacity and accountability are                          criminal networks and gangs.
8   WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1



    •	 Countries	with	weak	institutional	capacity	       conditions—the truth and reconciliation,
       were more likely to suffer violent social un-     anti-corruption, and human rights commis-
       rest during the food shocks of 2008–09.43         sions that delivered so marvelously in some
                                                         countries have not always worked in others.
    •	 Some	states	have	tried	to	maintain	stability	
                                                         There are gains from sharing knowledge, as
       through coercion and patronage networks,
                                                         the Report makes clear—but only if adapted
       but those with high levels of corruption
                                                         to local conditions. “Best-fit” institutions are
       and human rights abuses increase their
                                                         central to the Report.
       risks of violence breaking out in the future
       (see Feature 2).

       Weak institutions are particularly im-            PART 2: A ROADMAP
    portant in explaining why violence repeats
                                                         FOR BREAKING CYCLES
    in different forms in the same countries or
    subnational regions. Even societies with
                                                         OF VIOLENCE AT THE
    the weakest institutions have periodic out-          COUNTRY LEVEL
    breaks of peace. South-central Somalia has
    had interludes of low conflict over the last         Restoring confidence and
    30 years based on agreements by small num-           transforming the institutions that
    bers of elites.44 But temporary elite pacts,         provide citizen security, justice,
    in Somalia and elsewhere, do not provide             and jobs
    the grounds for sustained security and de-
    velopment unless they are followed by the            To break cycles of insecurity and reduce the
    development of legitimate state and society          risk of their recurrence, national reformers
    institutions.45 They are generally short-lived       and their international partners need to build
    because they are too personalized and nar-           the legitimate institutions that can provide a
    row to accommodate stresses and adjust to            sustained level of citizen security, justice, and
    change. New internal and external stresses           jobs—offering a stake in society to groups
    arise—a leader’s death, economic shocks,             that may otherwise receive more respect and
    the entry of organized criminal trafficking          recognition from engaging in armed violence
    networks, new opportunities or rents, or             than in lawful activities, and punishing in-
    external security interference—and there             fractions capably and fairly.
    is no sustained ability to respond.46 So the             But transforming institutions—always
    violence recurs.                                     tough—is particularly difficult in fragile situ-
       A focus on legitimate institutions does           ations. First, in countries with a track record
    not mean converging on Western institutions.         of violence and mistrust, expectations are
    History provides many examples of foreign            either too low, so that no government prom-
    institutional models that have proven less           ises are believed, making cooperative action
    than useful to national development, par-            impossible—or too high, so that transitional
    ticularly through colonial legacies,47 because       moments produce expectations of rapid
    they focused on form rather than function.           change that cannot be delivered by existing
    The same is true today. In Iraq, the Coalition       institutions.49 Second, many institutional
    Provisional Authority established commis-            changes that could produce greater long-
    sions on every subject from tourism to the           term resilience against violence frequently
    environment in parallel with struggling line         carry short-term risks. Any important shift—
    ministries, and model laws were passed that          holding elections, dismantling patronage net-
    had little relationship to national social and       works, giving new roles to security services,
    political realities.48 Even transfers of organiza-   decentralizing decision-making, empowering
    tional forms between countries in the South          disadvantaged groups—creates both winners
    can be unproductive if not adapted to local          and losers. Losers are often well organized
Overview                                   9




FEATURE 2   High stresses and weak institutions = risks of violence

            Justice, jobs, and violence

            F i g u r e F 2 .1   What are citizens’ views on the drivers of conflict?
                                        In surveys conducted in six countries and territories affected by violence, involving a mix of nationally
                                        representative samples and subregions, citizens raised issues linked to individual economic welfare
                                        (poverty, unemployment) and injustice (including inequality and corruption) as the primary driver of conflict.

                                                                  45

                                                                  40

                                                                  35
                                 % survey respondents answering




                                                                  30

                                                                  25

                                                                  20

                                                                  15

                                                                  10

                                                                   5

                                                                   0
                                                                           Poverty/           Conflict over        External       Ethnic conflict/    Injustice/   Other
                                                                        poor education         resources/        aggression         religion       inequality/
                                                                                            scarce resources                                       corruption

                                 Source: Bøås, Tiltnes, and Flatø 2010.


                 F i g u r e F 2 .2                               What drives people to join rebel movement and gangs?
                                                                  The same surveys found that the main reasons cited for why young people become
                                                                  rebels or gang members are very similar—unemployment predominates for both.
                                                                  This is not necessarily the case for militant ideological recruitment (chapter 2).

                                                                   50
                                                                                                                      46%
                                                                   45

                                                                   40         39.5%

                                                                   35
                                             % respondents




                                                                   30

                                                                   25

                                                                   20
                                                                                         15%     13%                          13%
                                                                   15
                                                                                                                                        8%
                                                                   10
                                                                   5
                                                                   0
                                                                                  Rebel participation                    Gang participation

                                                                         Unemployment/Idleness
                                                                         Feel more secure/Powerful
                                                                         Belief in the cause/Revenge/Injustice

                 Source: Bøås, Tiltnes, and Flatø 2010.
10                                WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1




     REFLECTIONS FROM ADVISORY COUNCIL MEMBERS: 2011 WORLD DEVELOPMENT REPORT

           Jorge Montaño, Member, International Narcotics Control Board; former Ambassador of Mexico to the
           United States; WDR Advisory Council Member


           The role of external stresses
           Drug and human trafficking, money laundering, illegal exploitation of natural resources and wildlife, counterfeiting, and viola-
           tions of intellectual property rights are lucrative criminal activities, which facilitate the penetration by organized crime of the
           already vulnerable sociopolitical, judicial, and security structures in developing countries.
                In Central America, for example, several countries that regained political stability two decades ago are now facing the decay
           of the state, whose institutions lack the strength to face this onslaught. Transnational organized crime has converted some Carib-
           bean countries into corridors for the movement of illegal drugs and persons toward Europe and North America. Bolivia, Colom-
           bia, and Peru, continue to be the main global cocaine producers, while Mexico is facing an unprecedented wave of violence given
           its border with the largest immigrant, drug consumption, and arms producing market. West Africa has become the newest pas-
           sage of drugs coming from South America and destined for Europe. Several African countries suffer the illegal exploitation of
           their natural resources, while Asia is a hub for tons of opiates originating from Afghanistan. The unprecedented progression of
           organized crime could spell the collapse of many weak states as their institutions fall prey to the associated violence. The precari-
           ous economic development observed in many regions of the world provides a stimulus for consolidating these illegal activities,
           which will continue to thrive as a consequence of the impunity they encounter in developing countries.




           WDR Note: Weak institutions are a common factor in explaining repeated cycles of violence
           Building on previous work by Collier, Fearon, Goldstone, North, Wallis, and Weingast, and others, political scientists Jim Fearon
           and Barbara Walter used econometric techniques for the WDR to test whether general rule of law and government effective-
           ness, low corruption, and strong protection of human rights correlate with a lower risk of the onset and recurrence of civil war
           and of high homicides from criminal violence. Fearon finds that countries with above average governance indicators for their
           income level have a significantly lower risk of the outbreak of civil conflict within the next 5 to 10 years—between 30 to 45 per-
           cent lower—and that the relationship also holds true for countries with high homicides. This work confirms earlier directions in
           the policy community, such as the International Network for Conflict and Fragility’s emphasis on the links between peacebuild-
           ing and state-building.
               Measures of accountability are as important as measures of capacity in this calculation. Fearon finds that high levels of polit-
           ical terror in past periods increase the chances of current conflict. Walter finds that significant reductions in the number of
           political prisoners and extrajudicial killings make the renewal of civil war between two and three times less likely than in coun-
           tries with higher levels of human rights abuses. She notes, “A reasonable interpretation of these results is that greater repression
           and abuse by a government creates both grievances and signals that those governments (sic) are not dependable negotiating
           partners; suggesting that less coercive and more accountable approaches significantly decrease the risk of civil conflict.” Other
           measures of accountability also matter: measures of rule of law and corruption are as or more important than measures of
           bureaucratic quality.




                                  and resist change. Third, external stresses can            transforming institutions accelerated consid-
                                  derail progress.                                           erably in the late 20th century, with increases
                                     Creating the legitimate institutions that               in citizen demands for good governance and
                                  can prevent repeated violence is, in plain lan-            in the technologies that can help supply it. In-
                                  guage, slow. It takes a generation. Even the               deed, making progress in a generation is ac-
                                  fastest-transforming countries have taken                  tually quite fast: progress at this speed would
                                  between 15 and 30 years to raise their institu-            represent immense development gains for
                                  tional performance from that of a fragile state            countries such as Afghanistan, Haiti, Liberia,
                                  today—Haiti, say—to that of a functioning                  and Timor-Leste today.
                                  institutionalized state, such as Ghana (table                  The basic framework of the WDR focuses
                                  2.1).50 The good news is that this process of              on what we have learned about the dynam-
Overview    11



TA blE 2.1      Fastest progress in institutional transformation—An estimate of
                realistic ranges
                The table shows the historical range of timings that the fastest reformers in the 20th century
                took to achieve basic governance transformations.

                                                              Years to threshold at pace of:
                Indicator
                                                     Fastest 20                  Fastest over the threshold

  Bureaucratic quality (0–4)                            20                                     12

  Corruption (0–6)                                      27                                     14

  Military in politics (0–6)                            17                                     10

  Government effectiveness                              36                                     13

  Control of corruption                                 27                                     16

  Rule of law                                           41                                     17

Source: Pritchett and de Weijer 2010.



ics of action to prevent repeated cycles of vi-           transformation. Second is the priority of
olence—both in the short term and over the                transforming institutions that provide citi-
time needed to reach a sustained level of resil-          zen security, justice, and jobs. Third is the
ience. Our knowledge of how to break these                role of regional and international action to
cycles is partial: the Report lays out lessons            contain external stresses. Fourth is the spe-
drawn from existing research, country stud-               cialized nature of external support needed.
ies, and consultations with national reformers.               Institutional transformation and good
Experiences from Bosnia and Herzegovina,                  governance, central to these processes, work
Chile, Colombia, Ghana, Indonesia, Liberia,               differently in fragile situations. The goal is
Mozambique, Northern Ireland, Sierra Leone,               more focused—transforming institutions
South Africa, and Timor-Leste amongst others,             that deliver citizen security, justice, and jobs.
are drawn on frequently in the Report because,            When facing the risk of conflict and violence,
while all of these areas still face challenges and        citizen security, justice and jobs are the key
risks, these societies have achieved consider-            elements of protection to achieve human se-
able successes in preventing violence from                curity.51 The dynamics of institutional change
escalating or recovering from its aftermath.              are also different. A good analogy is a finan-
These and the other experiences in the Report             cial crisis caused by a combination of external
also span a range of high-income, middle-                 stresses and weaknesses in institutional checks
income and lower-income countries, a range                and balances. In such a situation, exceptional
of threats of political and criminal violence,            efforts are needed to restore confidence in
and differing institutional contexts, rang-               national leaders’ ability to manage the crisis—
ing from situations where strong institutions             through actions that signal a real break with
faced legitimacy challenges due to problems               the past and through locking in these actions
of inclusion and accountability to situations             and showing that they will not be reversed.
where weak capacity was a major constraint.                   Confidence-building—a concept used in
    There are some fundamental differences                political mediation and financial crises but
between fragile and violent situations and                rarely in development circles52—is a prelude
stable developing environments. First is the              to more permanent institutional change in
need to restore confidence in collective ac-              the face of violence. Why? Because low trust
tion before embarking on wider institutional              means that stakeholders who need to con-
12   WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1



     F i g u r e 2 .1   Moving from fragility and violence to institutional resilience in citizen
                        security, justice, and jobs

                                                                                                                                                                                                       CITIZEN
                                                                                                                                                                                                       SECURITY,
                                                                                                                                                                                                       JUSTICE,
                                                                                                                                                                                                       AND JOBS

                                                                                                          EXTERNAL
                                                                                                            STRESS


                                                                                                                                                                                        RE
                                                                                                                                                                                             S




                                                                                                                                                                                             TO
                                                                                                                                                      TRANSFORMING




                                                                                                                                                                                                RING
                                                                                                                                                                                                    CON
                                                                                                                                RE




                                                                                                                                                                                                        FID
                                                                                                                                     S




                                                                                                                                     TO




                                                                                                                                                                                                      ENCE
                                                                                            TRANSFORMIN




                                                                                                                                        RING
                                                                                                                                            CON




                                                                                                                                                             IN
                                                                     RE
                                                                          S




                                                                                                                                                                ST
                                                                                                                                                FID
                                                                                                                                                                     TU


                                                                          TO
                                   TRANSFORMING




                                                                                                                                                                     I
                                                                             R
                                                                                                                                                                          TI




                                                                                                                                              E NCE
                                                                              I NG
                                                                                                                                                                               ON




                                                                                                 GI
                                                                                 CON
                                                                                                                                                                                    S




                                                                                                    NS
                                                                                     FID
                                                                                                           IT




                                                                                                          T
                                                                                                                UT

                                                                                   E NC E
                                                                                                                     IO
                                                                                                                          NS
                                          IN
                                             ST




                                                  TU
                                                  I




                                                       TI
                                                            ON
                                                                 S

                  VIOLENCE and
                    FRAGILITY                                                                             EXTERNAL SUPPORT
                                                                                                          AND INCENTIVES


     Source: WDR team.



     tribute political, financial, or technical sup-                                                                           nance of society.54 A repeated process enables
     port will not collaborate until they believe                                                                              space for collaborative norms and capacities to
     that a positive outcome is possible.53 But                                                                                develop, and for success to build on successes
     confidence-building is not an end in itself.                                                                              in a virtuous cycle. For each loop of the spi-
     Just as in a financial crisis, progress will not                                                                          ral, the same two phases recur: building con-
     be sustained unless the institutions that pro-                                                                            fidence that positive chance is possible, prior
     vide citizen security, justice, and an economic                                                                           to deepening the institutional transformation
     stake in society are transformed to prevent a                                                                             and strengthening governance outcomes.
     recurrence of violence.
         Just as violence repeats, efforts to build
                                                                                                                               Confidence-building—Inclusive-
     confidence and transform institutions typi-
                                                                                                                               enough coalitions and early results
     cally follow a repeated spiral. Countries that
     moved away from fragility and conflict of-                                                                                The state cannot restore confidence alone.
     ten do so not through one decisive “make or                                                                               Confidence-building in situations of violence
     break” moment—but through many transi-                                                                                    and fragility requires deliberate effort to build
     tion moments, as the spiral path in figure                                                                                inclusive-enough coalitions, as Indonesia did in
     2.1 illustrates. National leaders had to build                                                                            addressing violence in Aceh or Timor-Leste in
     confidence in the state and to transform in-                                                                              its recovery after the renewed violence in 2006
     stitutions over time, as with the Republic of                                                                             or Chile in its political transition. Coalitions
     Korea’s transitions in the security, political,                                                                           are “inclusive-enough” when they include the
     and economic spheres after the Korean War,                                                                                parties necessary for implementing the initial
     or Ghana, Chile and Argentina’s transitions                                                                               stages of confidence-building and institu-
     from military rule, which included repeated                                                                               tional transformation. They need not be “all-
     internal contests over the norms and gover-                                                                               inclusive.”55 Inclusive-enough coalitions work
Overview     13



in two ways: (1) at a broad level, by building       ile situations, many reforms need a build-
national support for change and bringing in          up of trust and capacity before they can be
the relevant stakeholders, through collabora-        successfully implemented. Getting the bal-
tion between the government and other sec-           ance right between “too fast” and “too slow”
tors of society—as well as with regional neigh-      transformative action is crucial, and some
bors, donors, or investors, and (2) at a local       basic lessons emerge from successful country
level, by promoting outreach to community            transitions.
leaders to identify priorities and deliver pro-          First, prioritizing early action to reform the
grams. Inclusive-enough coalitions apply just        institutions responsible for citizen security,
as much to criminal as to political violence,        justice, and jobs is crucial, as in Singapore’s
through collaboration with community lead-           post-independence development (see Fea-
ers, business, and civil society in areas affected   ture 3). Stemming illegal financial flows from
by criminal violence. Civil society—including        the public purse or from natural resource
women’s organizations—often plays impor-             trafficking is important to underpin these
tant roles in restoring confidence and sustain-      initiatives. Pragmatic, “best-fit” approaches
ing the momentum for recovery and trans-             adapted to local conditions will be needed.
formation, as demonstrated by the role of the        For example, Lebanon restored the electricity
Liberian Women’s Initiative in pressing for          needed for economic recovery during the civil
continued progress in the peace agreement.56         war through small private-sector networks of
    Persuading stakeholders to work collab-          providers, albeit at high unit costs.57 Haiti’s
oratively requires signals of a real break with      successful police reforms in 2004 to 2009 fo-
the past—for example, ending the political or        cused on ousting abusers from the force and
economic exclusion of marginalized groups,           restoring very basic work discipline.58
corruption, or human rights abuses—as well               Second, focusing on citizen security, jus-
as mechanisms to “lock-in” these changes             tice, and jobs means that most other reforms
and show that they will not be reversed. In          will need to be sequenced and paced over
moments of opportunity or crisis, fast and           time, including political reform, decentral-
visible results also help restore confidence         ization, privatization, and shifting attitudes
in the government’s ability to deal with             toward marginalized groups. Systematically
violent threats and implement institutional          implementing these reforms requires a web
and social change. State-community, state-           of institutions (democratization, for example,
nongovernmental organization (NGO), state-           requires many institutional checks and bal-
international, and state-private-sector part-        ances beyond elections) and changes in social
nerships can extend the state’s capacity to          attitudes. Several successful political transi-
deliver. Actions in one domain can support           tions, such as the devolution that underpins
results in another. Security operations can          peace in Northern Ireland and democratic
facilitate safe trade and transit, and the eco-      transitions in Chile, Indonesia, or Portugal,
nomic activity that creates jobs. Services deliv-    have taken place through a series of steps over
ered to marginalized groups can support per-         a decade or more.
ceptions of justice. More detailed approaches            There are exceptions—where the exclu-
to support inclusive-enough coalitions are           sion of groups from democratic participation
described in the section on practical policies       has been a clear overriding source of griev-
and programs for country actors below.               ance, rapid action on elections makes sense;
                                                     and where interests that previously blocked
                                                     reform have diminished, as with post-war
Transforming institutions that deliver
                                                     Japanese or Republic of Korea land reform,59
citizen security, justice, and jobs
                                                     fast action can take advantage of a window of
There is a limit to the amount of change soci-       opportunity. But in most situations, system-
eties can absorb at any one time, and in frag-       atic and gradual action appears to work best.
14                                      WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1




     REFLECTIONS FROM ADVISORY COUNCIL MEMBERS: 2011 WORLD DEVELOPMENT REPORT


     F E AT U R E 3   Country experiences of confidence-building and transforming institutions for
                      citizen security, justice, and jobs

                 Confidence building in South Africa
                 Jay Naidoo, Chairman of Global Alliance for Improved Nutrition; former General Secretary,
                 Congress of South African Trade Unions; Minister of Reconstruction and Development, South Africa;
                 and Chairman of the Development Bank of South Africa; WDR Advisory Council Member
                 (Abbreviated from WDR 2011, chapter 3)

                 In South Africa, the “moment” of transition in 1994 was pre-           In addition to successes, there were opportunities missed
                 ceded by multiple transition points which required efforts         which may be of use when other countries consider South
                 from the protagonists to shift the debate and that gave cred-      Africa’s experiences. This included too little attention to job
                 ibility to the process. On the African National Congress (ANC)     creation for youth and risks of criminal violence. It meant that
                 Alliance side, this included the shift to a broader, more inclu-   we did not fully address the critical need to ensure that the new
                 sive approach, and the realization of the need to ensure           generation who had not lived through the apartheid struggle
                 incentives for the National Party and the white population.        as adults were provided with a strong stake—and economic
                 On the National Party side, this included the shift from think-    opportunities—in the new democratic state.
                 ing in terms of group rights and protection of minorities to           There was also too much of an assumption that 1994
                 thinking in terms of individual rights and majority rule. Cer-     marked the culmination of a process of democratization and
                 tain signals which were perceived as irreversible (notably the     reconciliation. Relatively little attention was given to what was
                 unconditional release of Nelson Mandela and the suspen-            meant by the transformation to a constitutional state; the con-
                 sion of the ANC’s armed struggle) were critical in maintain-       tinued role of civil society in deepening not just democratiza-
                 ing trust between parties. After the 1994 elections, deliver-      tion and accountability but also delivery. And there was a need
                 ing a few early results—including maternal and infant              for a deeper and more thorough ongoing debate on racism,
                 healthcare and using community structures to improve               inequality, and social exclusion.
                 water supply—were important to maintain confidence in
                 our new government.



                 All politics is local and early attention to security, justice, and jobs
                 George Yeo, Minister of Foreign Affairs for Singapore; WDR Advisory Council Member.
                 (Abbreviated from WDR 2011, chapters 4 and 5)

                 Successful efforts must begin at the local level. Without          out a practical approach, new institutions cannot take root in
                 emphasis on local results, citizens lose confidence in their       the hearts and minds of ordinary people. For Singapore in the
                 government’s ability to provide a better life. Actions to          early years, the priority was on security, law and order, and
                 restore security, create trust, generate employment, and           creating favorable conditions for investment and economic
                 provide services in local communities lay the foundation for       growth. Confidence was everything. National Service was intro-
                 national progress. It is not enough to deliver results in big      duced within a year. Secret societies and other criminal activi-
                 cities. In cases of ethnic and religious strife, where mutual      ties were suppressed. Corruption was progressively rooted out.
                 insecurity can feed on itself, a local authority that is seen to   To promote investment and job creation, labor and land acqui-
                 be fair and impartial by all groups is absolutely essential        sition laws were reformed early. Against conventional wisdom
                 before the process of healing and recovery can take place.         in many developing countries at that time, we eschewed pro-
                 This was Singapore’s experience when we had race riots in          tectionism and encouraged multinationals to invest. Managing
                 the 1960s. A trusted leader can make a decisive difference.        the politics of change was always a challenge.
                     It takes time to build institutions. Getting the urgent             The key was winning the trust of the people. Institutions
                 things done first, especially improving security and provid-       which endure are sustained by the respect and affection of the
                 ing jobs, helps people to feel more hopeful about the future.      population. It is a process which takes at least a generation.
                 Success then creates the condition for further success. With-
Overview                                          15




     REFLECTIONS FROM ADVISORY COUNCIL MEMBERS: 2011 WORLD DEVELOPMENT REPORT


     F E AT U R E 3   Country experiences of confidence-building and transforming institutions for
                      citizen security, justice, and jobs (continued)

                 Colombia’s restoration of confidence in safe transit
                 Marta Lucia Ramirez de Rincon, Director, Fundacion Ciudadania en Accion; former Senator and Chair of
                 Security Commission, Colombia; former Defense Minister and former Foreign Trade Minister, Colombia;
                 WDR Advisory Council Member
                 (Abbreviated from WDR 2011, chapter 5)

                 The challenge we faced in 2002 was preventing Colombia                Meteoro aimed at restoring control of the roads and high-
                 from becoming a failed state. This meant shielding our citi-      ways across the country back from the illegitimate hand of
                 zens from kidnapping and terrorism. It also meant protect-        armed groups that inflicted fear in the population. The govern-
                 ing our infrastructure, roads, and democratic institutions        ment invited the Colombian population to drive their cars and
                 against attacks by the guerrillas, the paramilitaries, and drug   travel across the country without intimidation, while at the
                 traffickers. These groups hijacked cars and kidnapped peo-        same time launching a major military, intelligence, and police
                 ple as they travelled across the country. Since this problem      operation to protect the roads and ensure the safety of the
                 had worsened in the years ahead of the 2002 elections, the        population. Through this plan, the government sought to give
                 government set the restoration of security in roads and           people back their country and to reactivate trade and tourism.
                 highways as a key priority on their agenda. It devised the        Above all, this plan, implemented at the very early stage of the
                 Meteoro program widely known as, “Live Colombia, travel           new government, brought about a breakthrough in the resto-
                 across it” (“Vive Colombia, Viaja por ella”).                     ration of trust and hope in the Colombian society.



                 Do not confuse speed with haste in political processes
                 Lakhdar Brahimi, former UN Special Representative of the Secretary General to Iraq and Afghanistan;
                 WDR Advisory Council Member
                 (Abbreviated from WDR 2011, chapter 5)

                 It is important not to confuse speed with haste in political          The options are not mutually exclusive—there is great
                 processes: too hasty approaches can precipitate the oppo-         worldwide demand for more inclusive and responsive gover-
                 site effect from the one we seek to support. The interna-         nance, and elections can be a crucial means to provide this. But
                 tional community’s high hopes for Iraq’s 2005 experiment in       their timing requires careful attention. Democratic traditions
                 proportional electoral democracy produced a contest for           have developed in most countries over a considerable period.
                 power which increased rather than allayed sectarian vio-          Democratization efforts today, similarly, require attention to
                 lence and the constitution hastily produced later is proving      historical heritages and existing political cleavages, and must
                 difficult to implement. Similarly, the 2009 election in Af-       be seen as an ongoing process of social transformation and the
                 ghanistan proved to challenge rather than bolster perceptions     development of a broad range of institutions that provide
                 of institutional legitimacy in the immediate aftermath.           checks and balances rather than an identifiable “event.” Democ-
                                                                                   ratization does not start or end with elections.




Addressing external stresses and                          already be present and the institutions to re-
mobilizing international support                          spond to them are generally weak. If they are
                                                          not addressed, or if they increase, they can de-
External stresses, such as the infiltration of            rail efforts at violence prevention and recov-
organized crime and trafficking networks,                 ery. Far more so than in stable development
spillovers from neighboring conflicts, and                environments, addressing external stresses
economic shocks, are important factors in                 therefore needs to be a core part of national
increasing the risk of violence. In fragile situ-         strategies and international supporting ef-
ations, many of these external pressures will             forts for violence prevention and recovery.
16   WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1



         International assistance needs also differ      citizen security, justice, and jobs. The Report
     in fragile situations. The requirement to gen-      first presents the basic tools and then looks at
     erate rapid confidence-building results puts        how to differentiate strategies and program-
     a particular premium on speed. The focus            ming to different country circumstances, us-
     on building collaborative, inclusive-enough         ing country-specific assessments of risks and
     coalitions and on citizen security, justice,        opportunities.
     and jobs draws together a wider range of
     international capacities that need to work
                                                         Political and policy signals to build
     in concert—for example, for mediation, hu-
                                                         collaborative, inclusive-enough
     man rights, and security assistance, as well as
                                                         coalitions
     humanitarian and development aid. Where
     the political situation is fragile and the capac-   There is a surprising commonality across
     ity of local systems to ensure accountability       countries in the signals that most frequently
     is weak, international incentives—such as           build confidence and collaborative coali-
     recognition and sanction mechanisms—also            tions (see Feature 4). They can include im-
     play a significant role. Take one of the smaller    mediate actions in credible national or local
     West African countries that have recently           appointments, in transparency, and in some
     had coups d’état. Local mechanisms to re-           cases, the removal of factors seen as nega-
     solve the situation peacefully are limited, and     tive, such as discriminatory laws. Security
     African Union (AU) and Economic Com-                forces can be redeployed as a positive signal
     munity of West African States (ECOWAS)              of attention to insecure areas, but also as a
     pressure to return to a constitutional path is      sign that the government recognizes where
     critical. So regional and global recognition        particular units have a record of distrust or
     for responsible leadership can play a role in       abuse with communities and replaces them.
     strengthening incentives and accountability         Measures to improve transparency of infor-
     systems at a national level.                        mation and decision-making processes can
                                                         be important in building confidence, as well
                                                         as laying the basis for sustained institutional
     Practical policy and program tools                  transformation.
     for country actors                                      Signals can also be announcements of fu-
                                                         ture actions—the selection of two or three
     The WDR lays out a different way of thinking        key early results; the focus of military and
     about approaches to violence prevention and         police planning on citizen security goals;
     recovery in fragile situations. It does not aim     or setting approaches and timelines toward
     to be a “cookbook” that prescribes recipes—         political reform, decentralization, or tran-
     each country’s political context differs, and       sitional justice. Ensuring that political and
     there are no one-size-fits-all solutions. While     policy signals are realistic in scope and tim-
     the choice of confidence-building measures          ing and can be delivered is important in
     and institution-building approaches needs           managing expectations—by anchoring them
     to be adapted to each country, a set of basic       in national planning and budget processes
     tools emerging from experience can be the           and discussing any external support needed
     basis for that adaptation. These core tools         in advance with international partners.
     include the options for signals and com-                When signals relate to future action, their
     mitment mechanisms to build collabora-              credibility will be increased by commitment
     tive coalitions, demonstrating a break from         mechanisms that persuade stakeholders that
     the past and building confidence in positive        they will actually be implemented and not
     outcomes. They also include a description of        reversed. Examples are Colombia’s and Indo-
     the programs that can deliver quick results         nesia’s independent, multisectoral executing
     and longer-term institutional provision of          agencies and third-party monitors, such as
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Wdr 2011 overview 0

  • 1.
  • 2. © 2011 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved 1 2 3 4 14 13 12 11 This document summarizes the World Development Report 2011. It is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. Cover design: Heads of State Typesetting: Barton Matheson Willse and Worthington The manuscript for this overview edition disseminates the findings of work in progress to encourage the exchange of ideas about development issues. By analyzing the nature, causes, and consequences of violent conflict today, and the suc- cesses and failures in responding to it, this World Development Report aims to sharpen the discussion on what can be done to support societies struggling to prevent or grapple with violence and conflict. Some of the ground that the Report covers falls outside the World Bank’s traditional development mandate, a reflection of a growing international policy consensus that addressing violent conflict and promoting economic development both require a deeper understanding of the close relationship between politics, security, and development. In study- ing this area the World Bank does not aspire to go beyond its core mandate as set out in its Articles of Agreement, but rather improve the effectiveness of development interventions in places threatened or affected by large-scale violence.
  • 3. Foreword In 1944, delegates from 45 countries gathered at Bretton Woods to consider the economic causes of the World War that was then still raging, and how to secure the peace. They agreed to create the International Bank for Reconstruction and Development (IBRD), the original institution of what has become the World Bank Group. As the delegates noted, “Programs of reconstruction and development will speed economic progress everywhere, will aid political stability and foster peace.” The IBRD approved its first loan to France in 1947 to aid in the rebuilding of that country. Over 60 years later, the “R” in IBRD has a new meaning: reconstructing Afghanistan, Bos- nia, Haiti, Liberia, Rwanda, Sierra Leone, Southern Sudan, and other lands of conflict or broken states. Paul Collier’s book, The Bottom Billion, highlighted the recurrent cycles of weak governance, poverty, and violence that have plagued these lands. Not one low-income coun- try coping with these problems has yet achieved a single Millennium Development Goal. And the problems of fragile states spread easily: They drag down neighbors with violence that overflows borders, because conflicts feed on narcotics, piracy, and gender violence, and leave refugees and broken infrastructure in their wake. Their territories can become breeding grounds for far-reaching networks of violent radicals and organized crime. In 2008, I gave a speech on “Securing Development” to the International Institute for Stra- tegic Studies. I chose the forum to emphasize the interconnections among security, gover- nance, and development, and to make the point that the separate disciplines are not well integrated to address the inter-related problems. I outlined the challenge: bringing security and development together to put down roots deep enough to break the cycles of fragility and conflict. As we are now seeing again in the Middle East and North Africa, violence in the 21st cen- tury differs from 20th-century patterns of interstate conflict and methods of addressing them. Stove-piped government agencies have been ill-suited to cope, even when national interests or values prompt political leaders to act. Low incomes, poverty, unemployment, income shocks such as those sparked by volatility in food prices, rapid urbanization, and inequality between groups all increase the risks of violence. External stresses, such as trafficking and illicit finan- cial flows, can add to these risks. The 2011 World Development Report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all coun- tries—low, middle, and high income—as well as for regional and global institutions: First, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion—the likelihood of violent conflict increases. At the earliest stages, countries often need to restore public con- fidence in basic collective action even before rudimentary institutions can be transformed. Early wins—actions that can generate quick, tangible results—are critical. iii
  • 4. iv F O R E WO R D Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. There are places where fragile states can seek help to build an army, but we do not yet have similar resources for building police forces or corrections systems. We need to put greater emphasis on early projects to create jobs, especially through the private sector. The Report provides insight into the importance of the involvement of women in political coalitions, security and justice reform, and economic empowerment. Third, confronting this challenge effectively means that institutions need to change. Interna- tional agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Assistance needs to be integrated and coordinated; multi-donor trust funds have proven useful in accomplish- ing these aims while lessening the burdens of new governments with thin capacity. We need a better handoff between humanitarian and development agencies. And we need to accept a higher level of risk: If legislatures and inspectors expect only the upside, and just pillory the failures, institutions will steer away from the most difficult problems and strangle themselves with procedures and committees to avoid responsibility. This Report suggests some specific actions and ways of measuring results. Fourth, we need to adopt a layered approach. Some problems can be addressed at the coun- try level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity. Some actions are needed at a global level, such as building new capacities to support justice reform and the creation of jobs; forging partnerships between producer and consumer countries to stem illegal traffick- ing; and acting to reduce the stresses caused by food price volatility. Fifth, in adopting these approaches, we need to be aware that the global landscape is chang- ing. Regional institutions and middle income countries are playing a larger role. This means we should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries. The stakes are high. A civil conflict costs the average developing country roughly 30 years of GDP growth, and countries in protracted crisis can fall over 20 percentage points behind in overcoming poverty. Finding effective ways to help societies escape new outbursts or repeated cycles of violence is critical for global security and global development—but doing so requires a fundamental rethinking, including how we assess and manage risk. Any such changes must be based on a clear roadmap, and on strong incentives. I hope this Report will help others and ourselves in sketching such a roadmap. Robert B. Zoellick President The World Bank Group
  • 5. Contents of Overview Preamble 1 Part 1: The Challenge of Repeated Cycles of Violence 2 21st century conflict and violence are a development problem that does not fit the 20th-century mold 2 Vicious cycles of conflict: When security, justice, and employment stresses meet weak institutions 6 Part 2: A Roadmap for Breaking Cycles of Violence at the Country Level 8 Restoring confidence and transforming the institutions that provide citizen security, justice, and jobs 8 Practical policy and program tools for country actors 16 Part 3: Reducing the Risks of Violence—Directions for International Policy 23 Track 1: Providing specialized assistance for prevention through citizen security, justice, and jobs 28 Track 2: Transforming procedures and risk and results management in international agencies 31 Track 3: Acting regionally and globally to reduce external stresses on fragile states 34 Track 4: Marshaling support from lower-, middle-, and higher-income countries and global and regional institutions, to reflect the changing landscape of international policy and assistance 35 Notes 39 References 44 Acknowledgments 53 Bibliographic Note 55 v
  • 6. This manuscript is a prepublication advance copy. This and all other material related to the World Development Report 2011 are embargoed until 00 01 hours (GMT), April 11, 2011.
  • 7. Overview VIOLENCE and FRAGILITY Preamble ing poverty in the past 60 years, areas char- acterized by repeated cycles of political and E fforts to maintain collective se- criminal violence are being left far behind, curity are at the heart of human their economic growth compromised and history: from the earliest times, their human indicators stagnant. the recognition that human safety For those who now live in more stable depends on collaboration has been a mo- neighborhoods, it may seem incomprehensi- tivating factor for the formation of village ble how prosperity in high-income countries communities, cities, and nation-states. The and a sophisticated global economy can coex- 20th century was dominated by the legacy ist with extreme violence and misery in other of devastating global wars, colonial struggles, parts of the globe. The pirates operating off and ideological conflicts, and by efforts to the coast of Somalia who prey on the ship- establish international systems that would ping through the Gulf of Aden illustrate the foster global peace and prosperity. To some paradox of the existing global system. How extent these systems were successful—wars is it that the combined prosperity and capa- between states are far less common than they bility of the world’s modern nation-states were in the past, and civil wars are declining cannot prevent a problem from antiquity? in number. How is it that, almost a decade after renewed Yet, insecurity not only remains, it has international engagement with Afghanistan, become a primary development challenge the prospects of peace seem distant? How is it of our time. One-and-a-half billion people that entire urban communities can be terror- live in areas affected by fragility, conflict, or ized by drug traffickers? How is it that coun- large-scale, organized criminal violence, and tries in the Middle East and North Africa no low-income fragile or conflict-affected could face explosions of popular grievances country has yet to achieve a single United despite, in some cases, sustained high growth Nations Millennium Development Goal (UN and improvement in social indicators? MDG). New threats—organized crime and This World Development Report (WDR) trafficking, civil unrest due to global economic asks what spurs risks of violence, why con- shocks, terrorism—have supplemented con- flict prevention and recovery have proven so tinued preoccupations with conventional war difficult to address, and what can be done by between and within countries. While much of national leaders and their development, secu- the world has made rapid progress in reduc- rity, and diplomatic partners to help restore a
  • 8. 2 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 stable development path in the world’s most clearly defined rebel movements, are known. fragile and violence-torn areas. The central If a dispute escalates and full-scale hostilities message of the Report is that strengthening ensue, an eventual end to hostilities (either legitimate institutions and governance to through victory and defeat or through a ne- provide citizen security, justice, and jobs is gotiated settlement) is followed by a short crucial to break cycles of violence. Restor- “post-conflict” phase leading back to peace. ing confidence and transforming security, The global system is largely built around this justice, and economic institutions is possible paradigm of conflict, with clear roles for na- within a generation, even in countries that tional and international actors in development have experienced severe conflict. But that in promoting the prosperity and capability of requires determined national leadership and the nation-state (but stepping out during ac- an international system “refitted” to address tive conflict), in diplomacy in preventing and 21st-century risks: refocusing assistance on mediating disputes between states and be- preventing criminal and political violence, tween government and rebel movements, in reforming the procedures of international peacekeeping in the aftermath of conflict, and agencies, responding at a regional level, and in humanitarianism in providing relief. renewing cooperative efforts among lower-, 21st century violence1 does not fit the middle-, and higher-income countries. The 20th-century mold. Interstate war and civil Report envisages a layered approach to ef- war are still threats in some regions, but they fective global action, with local, national, re- have declined over the last 25 years. Deaths gional, and international roles. from civil war, while still exacting an unac- Because of the nature of the topic, this Re- ceptable toll, are one-quarter of what they port has been developed in an unusual way— were in the 1980s (Feature figure F1.1).2 Vio- drawing from the beginning on the knowledge lence and conflict have not been banished: of national reformers and working closely one in four people on the planet, more than with the United Nations and regional institu- 1.5 billion, live in fragile and conflict-affected tions with expertise in political and security states or in countries with very high levels of issues, building on the concept of human criminal violence.3 But because of the suc- security. The hope is that this partnership cesses in reducing interstate war, the remain- will spark an ongoing effort to jointly deepen ing forms of conflict and violence do not fit our understanding of the links between secu- neatly either into “war” or “peace,” or into rity and development, and will foster practical “criminal violence” or “political violence” action on the Report’s findings. (see Feature 1, F1.1–1.2 and table F.1). Many countries and subnational areas now face cycles of repeated violence, weak gov- PART 1: THE CHALLENGE ernance, and instability. First, conflicts often are not one-off events, but are ongoing and OF REPEATED CYCLES OF repeated: 90 percent of the last decade’s civil VIOLENCE wars occurred in countries that had already had a civil war in the last 30 years.4 Second, 21st century conflict and violence new forms of conflict and violence threaten are a development problem that development: many countries that have suc- does not fit the 20th-century mold cessfully negotiated political and peace agree- ments after violent political conflicts, such Global systems in the 20th century were as El Salvador, Guatemala, and South Africa, designed to address interstate tensions and now face high levels of violent crime, con- one-off episodes of civil war. War between straining their development. Third, different nation-states and civil war have a given logic forms of violence are linked to each other. and sequence. The actors, sovereign states or Political movements can obtain financing
  • 9. Overview 3 FEATURE 1 How violence is changing F I G U R E F1.1 Deaths from civil wars are declining As the number of civil wars declined, the total annual deaths from these conflicts (battle deaths) fell from more than 200,000 in 1988 to fewer than 50,000 in 2008. 300,000 60 250,000 50 Number of countries in civil war Battle deaths in civil wars 200,000 40 150,000 30 100,000 20 50,000 10 0 0 1960 1968 1976 1984 1992 2000 2008 Total battle deaths per annum in all civil wars (minor and major) Total number of countries in civil war (minor and major) Sources: Uppsala/PRIO Armed Conflict dataset (Harbom and Wallensteen 2010; Lacina and Gleditsch 2005); Gleditsch and others 2002; Sundberg 2008; Gleditsch and Ward 1999; Human Security Report Project 2010. Note: Civil wars are classified by scale and type in the Uppsala/PRIO Armed Conflict dataset Harbom and Wallensteen 2010; Lacina and Gleditsch 2005). The minimum threshold for monitoring is a minor civil war with 25 or more battle d a year. Low, high, and best estimates of annual battle deaths per conflict are in Lacina and Gleditsch (2005, updated in 2009). Throughout this Report, best estimates are used, except when they are not available, in which case averages of the low and high estimates are used. ta b l e F 1 .1 Violence often recurs Few countries are truly “post-conflict.” The rate of violence onset in countries with a previous conflict has been increasing since the 1960s, and every civil war that began since 2003 was in a country that had a previous civil war. Violence onsets in countries with Violence onsets in countries with Number of Decade no previous conflict (%) a previous conflict (%) onsets 1960s 57 43 35 1970s 43 57 44 1980s 38 62 39 1990s 33 67 81 2000s 10 90 39 Sources: Walter 2010; WDR team calculations. Note: Previous conflict includes any major conflict since 1945. (Feature continued on next page)
  • 10. 4 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 FEATURE 2 How violence is changing (continued) Figure F1.2 Organized criminal violence threatens peace processes Homicides have increased in every country in Central America since 1999, including those that had made great progress in addressing political conflict—and this is not unique; countries such as South Africa face similar second generation challenges. 40 Absolute change in homicide rate 30 relative to 1999 20 10 0 –10 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 El Salvador Honduras Guatemala Belize Panama Nicaragua Costa Rica Sources: WDR team calculations based on UNODC 2007; UNODC and Latin America and the Caribbean Region of the World Bank 2007; and national sources. Note: Base year for homicide rate is 1999 = 0. How violence disrupts development Figure F1.3 The gap in poverty is widening between countries affected by violence and others New poverty data reveal that poverty is declining for much of the world, but countries affected by violence are lagging behind. For every three years a country is affected by major violence (battle deaths or excess deaths from homicides equivalent to a major war), poverty reduction lags behind by 2.7 percentage points. 65 (% of population living below $1.25 a day) 60 Poverty headcount 55 50 45 40 35 1981 1984 1987 1990 1993 1996 1999 2002 2005 Countries affected by major violence Countries affected by minor violence Countries with negligible or no violence Sources: WDR team calculations based on Chen, Ravallion, and Sangraula 2008 poverty data (available on POVCALNET (http://iresearch.worldbank.org)). Note: Poverty is % of population living at less than US$1.25 per day.
  • 11. Overview 5 from criminal activities, as in the Democratic Attempts to contain violence are also Republic of Congo and Northern Ireland.5 extremely costly. For example, the naval Criminal gangs can support political violence operation to counter piracy in the Horn of during electoral periods, as in Jamaica and Africa and the Indian Ocean is estimated to Kenya.6 International ideological movements cost US$1.3–$2 billion annually, plus addi- make common cause with local grievances, as tional costs incurred by rerouting ships and in Afghanistan and Pakistan. Thus, the large increasing insurance premiums.16 Efforts by majority of countries currently facing vio- households and firms to protect themselves lence face it in multiple forms. Fourth, griev- against long-duration violence impose heavy ances can escalate into acute demands for economic burdens: 35 percent of firms in change—and the risks of violent conflict—in Latin America, 30 percent in Africa, and 27 countries where political, social, or economic percent in Eastern Europe and Central Asia change lags behind expectations, as in the identify crime as the major problem for Middle East and North Africa. their business activities. The burden is high- Repeated and interlinked, these conflicts est on those least able to bear the cost: firms have regional and global repercussions. The in Sub-Saharan Africa lose a higher percent- death, destruction, and delayed develop- age of sales to crime and spend a higher per- ment due to conflict are bad for the conflict- centage of sales on security than any other affected countries, and their impacts spill region.17 over both regionally and globally. A coun- No low-income fragile or conflict-affected try making development advances, such as country has yet achieved a single MDG. Tanzania, loses an estimated 0.7 percent of People in fragile and conflict-affected states GDP every year for each neighbor in conflict.7 are more than twice as likely to be under- Refugees and internally displaced persons nourished as those in other developing coun- have increased threefold in the last 30 years.8 tries, more than three times as likely to be un- Nearly 75 percent of the world’s refugees are able to send their children to school, twice as hosted by neighboring countries.9 likely to see their children die before age five, The new forms of violence interlinking and more than twice as likely to lack clean local political conflicts, organized crime, water. On average, a country that experienced and internationalized disputes mean that major violence over the period from 1981 to violence is a problem for both the rich and 2005 has a poverty rate 21 percentage points the poor: more than 80 percent of fatalities higher than a country that saw no violence from terrorist attacks over the last decade (Feature 1, figure F1.3).18 A similar picture were in nonwestern targets,10 but a study emerges for subnational areas affected by vi- of 18 Western European countries revealed olence in richer and more stable countries— that each additional transnational terrorist areas where development lags behind.19 incident reduced their economic growth by These repeated cycles of conflict and 0.4 of a percentage point a year.11 Attacks violence exact other human, social, and eco- in one region can impose costs all through nomic costs that last for generations. High global markets—one attack in the Niger levels of organized criminal violence hold Delta can cost global consumers of oil bil- back economic development. In Guatemala, lions in increased prices.12 In the four weeks violence cost the country more than 7 percent following the beginning of the uprising in of GDP in 2005, more than twice the damage Libya, oil prices increased by 15 percent.13 by Hurricane Stan in the same year—and The interdiction of cocaine shipments to more than twice the combined budget for Europe has increased fourfold since 2003,14 agriculture, health, and education.20 The av- with even areas such as West Africa now se- erage cost of civil war is equivalent to more riously affected by drug-related violence.15 than 30 years of GDP growth for a medium-
  • 12. 6 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 size developing country.21 Trade levels after Vicious cycles of conflict: When major episodes of violence take 20 years to security, justice, and employment recover.22 In other words, a major episode stresses meet weak institutions of violence, unlike natural disasters or eco- nomic cycles, can wipe out an entire genera- Internal causes of conflict arise from po- tion of economic progress. litical, security, and economic dynamics.27 These numbers have human conse- Yet it is difficult to disentangle causes and quences. In highly violent societies, many effects of violence. Lower GDP per capita people experience the death of a son or is robustly associated with both large-scale daughter before their time: when children are political conflict and high rates of homi- late coming home, a parent has good reason cide.28 Youth unemployment is consistently to fear for their lives and physical safety. Ev- cited in citizen perception surveys as a mo- eryday experiences, such as going to school, tive for joining both rebel movements and to work, or to market, become occasions for urban gangs (Feature 2, figure F2.2).29 Feel- fear. People hesitate to build houses or invest ing more secure and powerful is also cited in small businesses because these can be de- as an important motivator across countries, stroyed in a moment. The direct impact of confirming existing research that shows violence falls primarily on young males—the that employment dynamics have to do not majority of fighting forces and gang mem- only with income but also with respect and bers—but women and children often suffer status, involving social cohesion as well as disproportionately from the indirect effects.23 economic opportunity. Political exclusion Men make up 96 percent of detainees and 90 and inequality affecting regional, religious, percent of the missing; women and children or ethnic groups are associated with higher are close to 80 percent of refugees and those risks of civil war,30 while inequality between internally displaced.24 And violence begets richer and poorer households is closely as- violence: male children who witness abuses sociated with higher risks of violent crime have a higher tendency to perpetrate violence (table 1.1). later in life.25 External factors can heighten the risks of Yet when security is reestablished and sus- violence. Major external security pressures, tained, these areas of the world can make the as with new patterns of drug trafficking, can greatest development gains. Several countries overwhelm institutional capacities (see Fea- emerging from long legacies of both political ture 2). Income shocks can also increase risks and criminal violence have been among the of violence. Work on rainfall shocks in Sub- fastest making progress on the MDGs:26 Saharan Africa concludes that civil conflict is more likely following years of poor rain- • Ethiopia more than quadrupled access fall. Using rainfall variation as a proxy for to improved water, from 13 percent of income shocks in 41 African countries be- the population in 1990 to 66 percent in tween 1981 and 1999, Satyanath, Miguel, and 2009–10. Sergenti (2004) found that a decline in eco- • Mozambique more than tripled its pri ary m nomic growth of 5 percent increased the like- completion rate in just eight years, from lihood of conflict by half the following year.31 14 percent in 1999 to 46 percent in 2007. Corruption—which generally has interna- tional links through illicit trafficking, money • Rwanda cut the prevalence of undernutri- laundering, and the extraction of rents from tion from 56 percent of the population in sales of national resources or international 1997 to 40 percent in 2005. contracts and concessions—has doubly per- • Bosnia and Herzegovina, between 1995 nicious impacts on the risks of violence, by and 2007, increased measles immuniza- fueling grievances and by undermining the tions from 53 percent to 96 percent for effectiveness of national institutions and so- children aged 12–23 months. cial norms.32 New external pressures from
  • 13. Overview 7 ta b l e 1.1 Security, economic, and political stresses Stresses Internal External Security • Legacies of violence and trauma • Invasion, occupation • External support for domestic rebels • Cross-border conflict spillovers • Transnational terrorism • International criminal networks Economic • Low income levels, low opportunity • Price shocks cost of rebellion • Climate change • Youth unemployment • Natural resource wealth • Severe corruption • Rapid urbanization • Ethnic, religious, or regional • Perceived global inequity and Justice competition injustice in the treatment of ethnic or • Real or perceived discrimination religious groups • Human rights abuses Source: WDR team. Note: This table, although not exhaustive, captures major factors in the academic literature on the causes and correlates of conflict and raised in the WDR consultations and surveys.33 climate change and natural resource compe- important for both political and criminal tition could heighten all these risks.34 violence (see Feature 2).37 However, many countries face high un- • In some areas—as in the peripheral re- employment, economic inequality, or pres- gions of Colombia before the turn of the sure from organized crime networks but 21st century38 or the Democratic Republic do not repeatedly succumb to widespread of the Congo39 today—the state is all but violence, and instead contain it. The WDR absent from many parts of the country, approach emphasizes that risk of conflict and and violent armed groups dominate local violence in any society (national or regional) contests over power and resources. is the combination of the exposure to inter- nal and external stresses and the strength of • Most areas affected by violence face defi- the “immune system,” or the social capability cits in their collaborative capacities40 to for coping with stress embodied in legitimate mediate conflict peacefully. In some coun- institutions.35 Both state and nonstate institu- tries, institutions do not span ethnic, re- tions are important. Institutions include so- gional, or religious divides, and state insti- cial norms and behaviors—such as the ability tutions have been viewed as partisan—just of leaders to transcend sectarian and politi- as they were for decades prior to the peace cal differences and develop bargains, and of agreement in Northern Ireland.41 In some civil society to advocate for greater national communities, social divisions have con- and political cohesion—as well as rules, laws, strained effective collaboration between and organizations.36 Where states, markets, elite dominated states and poor commu- and social institutions fail to provide basic nities to address sources of violence. security, justice, and economic opportunities • Rapid urbanization, as occurred earlier for citizens, conflict can escalate. in Latin America and today in Asia and In short, countries and subnational ar- Africa, weakens social cohesion.42 Un- eas with the weakest institutional legitimacy employment, structural inequalities, and and governance are the most vulnerable to greater access to markets for firearms violence and instability and the least able and illicit drugs break down social cohe- to respond to internal and external stresses. sion and increase the vulnerability to Institutional capacity and accountability are criminal networks and gangs.
  • 14. 8 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 • Countries with weak institutional capacity conditions—the truth and reconciliation, were more likely to suffer violent social un- anti-corruption, and human rights commis- rest during the food shocks of 2008–09.43 sions that delivered so marvelously in some countries have not always worked in others. • Some states have tried to maintain stability There are gains from sharing knowledge, as through coercion and patronage networks, the Report makes clear—but only if adapted but those with high levels of corruption to local conditions. “Best-fit” institutions are and human rights abuses increase their central to the Report. risks of violence breaking out in the future (see Feature 2). Weak institutions are particularly im- PART 2: A ROADMAP portant in explaining why violence repeats FOR BREAKING CYCLES in different forms in the same countries or subnational regions. Even societies with OF VIOLENCE AT THE the weakest institutions have periodic out- COUNTRY LEVEL breaks of peace. South-central Somalia has had interludes of low conflict over the last Restoring confidence and 30 years based on agreements by small num- transforming the institutions that bers of elites.44 But temporary elite pacts, provide citizen security, justice, in Somalia and elsewhere, do not provide and jobs the grounds for sustained security and de- velopment unless they are followed by the To break cycles of insecurity and reduce the development of legitimate state and society risk of their recurrence, national reformers institutions.45 They are generally short-lived and their international partners need to build because they are too personalized and nar- the legitimate institutions that can provide a row to accommodate stresses and adjust to sustained level of citizen security, justice, and change. New internal and external stresses jobs—offering a stake in society to groups arise—a leader’s death, economic shocks, that may otherwise receive more respect and the entry of organized criminal trafficking recognition from engaging in armed violence networks, new opportunities or rents, or than in lawful activities, and punishing in- external security interference—and there fractions capably and fairly. is no sustained ability to respond.46 So the But transforming institutions—always violence recurs. tough—is particularly difficult in fragile situ- A focus on legitimate institutions does ations. First, in countries with a track record not mean converging on Western institutions. of violence and mistrust, expectations are History provides many examples of foreign either too low, so that no government prom- institutional models that have proven less ises are believed, making cooperative action than useful to national development, par- impossible—or too high, so that transitional ticularly through colonial legacies,47 because moments produce expectations of rapid they focused on form rather than function. change that cannot be delivered by existing The same is true today. In Iraq, the Coalition institutions.49 Second, many institutional Provisional Authority established commis- changes that could produce greater long- sions on every subject from tourism to the term resilience against violence frequently environment in parallel with struggling line carry short-term risks. Any important shift— ministries, and model laws were passed that holding elections, dismantling patronage net- had little relationship to national social and works, giving new roles to security services, political realities.48 Even transfers of organiza- decentralizing decision-making, empowering tional forms between countries in the South disadvantaged groups—creates both winners can be unproductive if not adapted to local and losers. Losers are often well organized
  • 15. Overview 9 FEATURE 2 High stresses and weak institutions = risks of violence Justice, jobs, and violence F i g u r e F 2 .1 What are citizens’ views on the drivers of conflict? In surveys conducted in six countries and territories affected by violence, involving a mix of nationally representative samples and subregions, citizens raised issues linked to individual economic welfare (poverty, unemployment) and injustice (including inequality and corruption) as the primary driver of conflict. 45 40 35 % survey respondents answering 30 25 20 15 10 5 0 Poverty/ Conflict over External Ethnic conflict/ Injustice/ Other poor education resources/ aggression religion inequality/ scarce resources corruption Source: Bøås, Tiltnes, and Flatø 2010. F i g u r e F 2 .2 What drives people to join rebel movement and gangs? The same surveys found that the main reasons cited for why young people become rebels or gang members are very similar—unemployment predominates for both. This is not necessarily the case for militant ideological recruitment (chapter 2). 50 46% 45 40 39.5% 35 % respondents 30 25 20 15% 13% 13% 15 8% 10 5 0 Rebel participation Gang participation Unemployment/Idleness Feel more secure/Powerful Belief in the cause/Revenge/Injustice Source: Bøås, Tiltnes, and Flatø 2010.
  • 16. 10 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 REFLECTIONS FROM ADVISORY COUNCIL MEMBERS: 2011 WORLD DEVELOPMENT REPORT Jorge Montaño, Member, International Narcotics Control Board; former Ambassador of Mexico to the United States; WDR Advisory Council Member The role of external stresses Drug and human trafficking, money laundering, illegal exploitation of natural resources and wildlife, counterfeiting, and viola- tions of intellectual property rights are lucrative criminal activities, which facilitate the penetration by organized crime of the already vulnerable sociopolitical, judicial, and security structures in developing countries. In Central America, for example, several countries that regained political stability two decades ago are now facing the decay of the state, whose institutions lack the strength to face this onslaught. Transnational organized crime has converted some Carib- bean countries into corridors for the movement of illegal drugs and persons toward Europe and North America. Bolivia, Colom- bia, and Peru, continue to be the main global cocaine producers, while Mexico is facing an unprecedented wave of violence given its border with the largest immigrant, drug consumption, and arms producing market. West Africa has become the newest pas- sage of drugs coming from South America and destined for Europe. Several African countries suffer the illegal exploitation of their natural resources, while Asia is a hub for tons of opiates originating from Afghanistan. The unprecedented progression of organized crime could spell the collapse of many weak states as their institutions fall prey to the associated violence. The precari- ous economic development observed in many regions of the world provides a stimulus for consolidating these illegal activities, which will continue to thrive as a consequence of the impunity they encounter in developing countries. WDR Note: Weak institutions are a common factor in explaining repeated cycles of violence Building on previous work by Collier, Fearon, Goldstone, North, Wallis, and Weingast, and others, political scientists Jim Fearon and Barbara Walter used econometric techniques for the WDR to test whether general rule of law and government effective- ness, low corruption, and strong protection of human rights correlate with a lower risk of the onset and recurrence of civil war and of high homicides from criminal violence. Fearon finds that countries with above average governance indicators for their income level have a significantly lower risk of the outbreak of civil conflict within the next 5 to 10 years—between 30 to 45 per- cent lower—and that the relationship also holds true for countries with high homicides. This work confirms earlier directions in the policy community, such as the International Network for Conflict and Fragility’s emphasis on the links between peacebuild- ing and state-building. Measures of accountability are as important as measures of capacity in this calculation. Fearon finds that high levels of polit- ical terror in past periods increase the chances of current conflict. Walter finds that significant reductions in the number of political prisoners and extrajudicial killings make the renewal of civil war between two and three times less likely than in coun- tries with higher levels of human rights abuses. She notes, “A reasonable interpretation of these results is that greater repression and abuse by a government creates both grievances and signals that those governments (sic) are not dependable negotiating partners; suggesting that less coercive and more accountable approaches significantly decrease the risk of civil conflict.” Other measures of accountability also matter: measures of rule of law and corruption are as or more important than measures of bureaucratic quality. and resist change. Third, external stresses can transforming institutions accelerated consid- derail progress. erably in the late 20th century, with increases Creating the legitimate institutions that in citizen demands for good governance and can prevent repeated violence is, in plain lan- in the technologies that can help supply it. In- guage, slow. It takes a generation. Even the deed, making progress in a generation is ac- fastest-transforming countries have taken tually quite fast: progress at this speed would between 15 and 30 years to raise their institu- represent immense development gains for tional performance from that of a fragile state countries such as Afghanistan, Haiti, Liberia, today—Haiti, say—to that of a functioning and Timor-Leste today. institutionalized state, such as Ghana (table The basic framework of the WDR focuses 2.1).50 The good news is that this process of on what we have learned about the dynam-
  • 17. Overview 11 TA blE 2.1 Fastest progress in institutional transformation—An estimate of realistic ranges The table shows the historical range of timings that the fastest reformers in the 20th century took to achieve basic governance transformations. Years to threshold at pace of: Indicator Fastest 20 Fastest over the threshold Bureaucratic quality (0–4) 20 12 Corruption (0–6) 27 14 Military in politics (0–6) 17 10 Government effectiveness 36 13 Control of corruption 27 16 Rule of law 41 17 Source: Pritchett and de Weijer 2010. ics of action to prevent repeated cycles of vi- transformation. Second is the priority of olence—both in the short term and over the transforming institutions that provide citi- time needed to reach a sustained level of resil- zen security, justice, and jobs. Third is the ience. Our knowledge of how to break these role of regional and international action to cycles is partial: the Report lays out lessons contain external stresses. Fourth is the spe- drawn from existing research, country stud- cialized nature of external support needed. ies, and consultations with national reformers. Institutional transformation and good Experiences from Bosnia and Herzegovina, governance, central to these processes, work Chile, Colombia, Ghana, Indonesia, Liberia, differently in fragile situations. The goal is Mozambique, Northern Ireland, Sierra Leone, more focused—transforming institutions South Africa, and Timor-Leste amongst others, that deliver citizen security, justice, and jobs. are drawn on frequently in the Report because, When facing the risk of conflict and violence, while all of these areas still face challenges and citizen security, justice and jobs are the key risks, these societies have achieved consider- elements of protection to achieve human se- able successes in preventing violence from curity.51 The dynamics of institutional change escalating or recovering from its aftermath. are also different. A good analogy is a finan- These and the other experiences in the Report cial crisis caused by a combination of external also span a range of high-income, middle- stresses and weaknesses in institutional checks income and lower-income countries, a range and balances. In such a situation, exceptional of threats of political and criminal violence, efforts are needed to restore confidence in and differing institutional contexts, rang- national leaders’ ability to manage the crisis— ing from situations where strong institutions through actions that signal a real break with faced legitimacy challenges due to problems the past and through locking in these actions of inclusion and accountability to situations and showing that they will not be reversed. where weak capacity was a major constraint. Confidence-building—a concept used in There are some fundamental differences political mediation and financial crises but between fragile and violent situations and rarely in development circles52—is a prelude stable developing environments. First is the to more permanent institutional change in need to restore confidence in collective ac- the face of violence. Why? Because low trust tion before embarking on wider institutional means that stakeholders who need to con-
  • 18. 12 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 F i g u r e 2 .1 Moving from fragility and violence to institutional resilience in citizen security, justice, and jobs CITIZEN SECURITY, JUSTICE, AND JOBS EXTERNAL STRESS RE S TO TRANSFORMING RING CON RE FID S TO ENCE TRANSFORMIN RING CON IN RE S ST FID TU TO TRANSFORMING I R TI E NCE I NG ON GI CON S NS FID IT T UT E NC E IO NS IN ST TU I TI ON S VIOLENCE and FRAGILITY EXTERNAL SUPPORT AND INCENTIVES Source: WDR team. tribute political, financial, or technical sup- nance of society.54 A repeated process enables port will not collaborate until they believe space for collaborative norms and capacities to that a positive outcome is possible.53 But develop, and for success to build on successes confidence-building is not an end in itself. in a virtuous cycle. For each loop of the spi- Just as in a financial crisis, progress will not ral, the same two phases recur: building con- be sustained unless the institutions that pro- fidence that positive chance is possible, prior vide citizen security, justice, and an economic to deepening the institutional transformation stake in society are transformed to prevent a and strengthening governance outcomes. recurrence of violence. Just as violence repeats, efforts to build Confidence-building—Inclusive- confidence and transform institutions typi- enough coalitions and early results cally follow a repeated spiral. Countries that moved away from fragility and conflict of- The state cannot restore confidence alone. ten do so not through one decisive “make or Confidence-building in situations of violence break” moment—but through many transi- and fragility requires deliberate effort to build tion moments, as the spiral path in figure inclusive-enough coalitions, as Indonesia did in 2.1 illustrates. National leaders had to build addressing violence in Aceh or Timor-Leste in confidence in the state and to transform in- its recovery after the renewed violence in 2006 stitutions over time, as with the Republic of or Chile in its political transition. Coalitions Korea’s transitions in the security, political, are “inclusive-enough” when they include the and economic spheres after the Korean War, parties necessary for implementing the initial or Ghana, Chile and Argentina’s transitions stages of confidence-building and institu- from military rule, which included repeated tional transformation. They need not be “all- internal contests over the norms and gover- inclusive.”55 Inclusive-enough coalitions work
  • 19. Overview 13 in two ways: (1) at a broad level, by building ile situations, many reforms need a build- national support for change and bringing in up of trust and capacity before they can be the relevant stakeholders, through collabora- successfully implemented. Getting the bal- tion between the government and other sec- ance right between “too fast” and “too slow” tors of society—as well as with regional neigh- transformative action is crucial, and some bors, donors, or investors, and (2) at a local basic lessons emerge from successful country level, by promoting outreach to community transitions. leaders to identify priorities and deliver pro- First, prioritizing early action to reform the grams. Inclusive-enough coalitions apply just institutions responsible for citizen security, as much to criminal as to political violence, justice, and jobs is crucial, as in Singapore’s through collaboration with community lead- post-independence development (see Fea- ers, business, and civil society in areas affected ture 3). Stemming illegal financial flows from by criminal violence. Civil society—including the public purse or from natural resource women’s organizations—often plays impor- trafficking is important to underpin these tant roles in restoring confidence and sustain- initiatives. Pragmatic, “best-fit” approaches ing the momentum for recovery and trans- adapted to local conditions will be needed. formation, as demonstrated by the role of the For example, Lebanon restored the electricity Liberian Women’s Initiative in pressing for needed for economic recovery during the civil continued progress in the peace agreement.56 war through small private-sector networks of Persuading stakeholders to work collab- providers, albeit at high unit costs.57 Haiti’s oratively requires signals of a real break with successful police reforms in 2004 to 2009 fo- the past—for example, ending the political or cused on ousting abusers from the force and economic exclusion of marginalized groups, restoring very basic work discipline.58 corruption, or human rights abuses—as well Second, focusing on citizen security, jus- as mechanisms to “lock-in” these changes tice, and jobs means that most other reforms and show that they will not be reversed. In will need to be sequenced and paced over moments of opportunity or crisis, fast and time, including political reform, decentral- visible results also help restore confidence ization, privatization, and shifting attitudes in the government’s ability to deal with toward marginalized groups. Systematically violent threats and implement institutional implementing these reforms requires a web and social change. State-community, state- of institutions (democratization, for example, nongovernmental organization (NGO), state- requires many institutional checks and bal- international, and state-private-sector part- ances beyond elections) and changes in social nerships can extend the state’s capacity to attitudes. Several successful political transi- deliver. Actions in one domain can support tions, such as the devolution that underpins results in another. Security operations can peace in Northern Ireland and democratic facilitate safe trade and transit, and the eco- transitions in Chile, Indonesia, or Portugal, nomic activity that creates jobs. Services deliv- have taken place through a series of steps over ered to marginalized groups can support per- a decade or more. ceptions of justice. More detailed approaches There are exceptions—where the exclu- to support inclusive-enough coalitions are sion of groups from democratic participation described in the section on practical policies has been a clear overriding source of griev- and programs for country actors below. ance, rapid action on elections makes sense; and where interests that previously blocked reform have diminished, as with post-war Transforming institutions that deliver Japanese or Republic of Korea land reform,59 citizen security, justice, and jobs fast action can take advantage of a window of There is a limit to the amount of change soci- opportunity. But in most situations, system- eties can absorb at any one time, and in frag- atic and gradual action appears to work best.
  • 20. 14 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 REFLECTIONS FROM ADVISORY COUNCIL MEMBERS: 2011 WORLD DEVELOPMENT REPORT F E AT U R E 3 Country experiences of confidence-building and transforming institutions for citizen security, justice, and jobs Confidence building in South Africa Jay Naidoo, Chairman of Global Alliance for Improved Nutrition; former General Secretary, Congress of South African Trade Unions; Minister of Reconstruction and Development, South Africa; and Chairman of the Development Bank of South Africa; WDR Advisory Council Member (Abbreviated from WDR 2011, chapter 3) In South Africa, the “moment” of transition in 1994 was pre- In addition to successes, there were opportunities missed ceded by multiple transition points which required efforts which may be of use when other countries consider South from the protagonists to shift the debate and that gave cred- Africa’s experiences. This included too little attention to job ibility to the process. On the African National Congress (ANC) creation for youth and risks of criminal violence. It meant that Alliance side, this included the shift to a broader, more inclu- we did not fully address the critical need to ensure that the new sive approach, and the realization of the need to ensure generation who had not lived through the apartheid struggle incentives for the National Party and the white population. as adults were provided with a strong stake—and economic On the National Party side, this included the shift from think- opportunities—in the new democratic state. ing in terms of group rights and protection of minorities to There was also too much of an assumption that 1994 thinking in terms of individual rights and majority rule. Cer- marked the culmination of a process of democratization and tain signals which were perceived as irreversible (notably the reconciliation. Relatively little attention was given to what was unconditional release of Nelson Mandela and the suspen- meant by the transformation to a constitutional state; the con- sion of the ANC’s armed struggle) were critical in maintain- tinued role of civil society in deepening not just democratiza- ing trust between parties. After the 1994 elections, deliver- tion and accountability but also delivery. And there was a need ing a few early results—including maternal and infant for a deeper and more thorough ongoing debate on racism, healthcare and using community structures to improve inequality, and social exclusion. water supply—were important to maintain confidence in our new government. All politics is local and early attention to security, justice, and jobs George Yeo, Minister of Foreign Affairs for Singapore; WDR Advisory Council Member. (Abbreviated from WDR 2011, chapters 4 and 5) Successful efforts must begin at the local level. Without out a practical approach, new institutions cannot take root in emphasis on local results, citizens lose confidence in their the hearts and minds of ordinary people. For Singapore in the government’s ability to provide a better life. Actions to early years, the priority was on security, law and order, and restore security, create trust, generate employment, and creating favorable conditions for investment and economic provide services in local communities lay the foundation for growth. Confidence was everything. National Service was intro- national progress. It is not enough to deliver results in big duced within a year. Secret societies and other criminal activi- cities. In cases of ethnic and religious strife, where mutual ties were suppressed. Corruption was progressively rooted out. insecurity can feed on itself, a local authority that is seen to To promote investment and job creation, labor and land acqui- be fair and impartial by all groups is absolutely essential sition laws were reformed early. Against conventional wisdom before the process of healing and recovery can take place. in many developing countries at that time, we eschewed pro- This was Singapore’s experience when we had race riots in tectionism and encouraged multinationals to invest. Managing the 1960s. A trusted leader can make a decisive difference. the politics of change was always a challenge. It takes time to build institutions. Getting the urgent The key was winning the trust of the people. Institutions things done first, especially improving security and provid- which endure are sustained by the respect and affection of the ing jobs, helps people to feel more hopeful about the future. population. It is a process which takes at least a generation. Success then creates the condition for further success. With-
  • 21. Overview 15 REFLECTIONS FROM ADVISORY COUNCIL MEMBERS: 2011 WORLD DEVELOPMENT REPORT F E AT U R E 3 Country experiences of confidence-building and transforming institutions for citizen security, justice, and jobs (continued) Colombia’s restoration of confidence in safe transit Marta Lucia Ramirez de Rincon, Director, Fundacion Ciudadania en Accion; former Senator and Chair of Security Commission, Colombia; former Defense Minister and former Foreign Trade Minister, Colombia; WDR Advisory Council Member (Abbreviated from WDR 2011, chapter 5) The challenge we faced in 2002 was preventing Colombia Meteoro aimed at restoring control of the roads and high- from becoming a failed state. This meant shielding our citi- ways across the country back from the illegitimate hand of zens from kidnapping and terrorism. It also meant protect- armed groups that inflicted fear in the population. The govern- ing our infrastructure, roads, and democratic institutions ment invited the Colombian population to drive their cars and against attacks by the guerrillas, the paramilitaries, and drug travel across the country without intimidation, while at the traffickers. These groups hijacked cars and kidnapped peo- same time launching a major military, intelligence, and police ple as they travelled across the country. Since this problem operation to protect the roads and ensure the safety of the had worsened in the years ahead of the 2002 elections, the population. Through this plan, the government sought to give government set the restoration of security in roads and people back their country and to reactivate trade and tourism. highways as a key priority on their agenda. It devised the Above all, this plan, implemented at the very early stage of the Meteoro program widely known as, “Live Colombia, travel new government, brought about a breakthrough in the resto- across it” (“Vive Colombia, Viaja por ella”). ration of trust and hope in the Colombian society. Do not confuse speed with haste in political processes Lakhdar Brahimi, former UN Special Representative of the Secretary General to Iraq and Afghanistan; WDR Advisory Council Member (Abbreviated from WDR 2011, chapter 5) It is important not to confuse speed with haste in political The options are not mutually exclusive—there is great processes: too hasty approaches can precipitate the oppo- worldwide demand for more inclusive and responsive gover- site effect from the one we seek to support. The interna- nance, and elections can be a crucial means to provide this. But tional community’s high hopes for Iraq’s 2005 experiment in their timing requires careful attention. Democratic traditions proportional electoral democracy produced a contest for have developed in most countries over a considerable period. power which increased rather than allayed sectarian vio- Democratization efforts today, similarly, require attention to lence and the constitution hastily produced later is proving historical heritages and existing political cleavages, and must difficult to implement. Similarly, the 2009 election in Af- be seen as an ongoing process of social transformation and the ghanistan proved to challenge rather than bolster perceptions development of a broad range of institutions that provide of institutional legitimacy in the immediate aftermath. checks and balances rather than an identifiable “event.” Democ- ratization does not start or end with elections. Addressing external stresses and already be present and the institutions to re- mobilizing international support spond to them are generally weak. If they are not addressed, or if they increase, they can de- External stresses, such as the infiltration of rail efforts at violence prevention and recov- organized crime and trafficking networks, ery. Far more so than in stable development spillovers from neighboring conflicts, and environments, addressing external stresses economic shocks, are important factors in therefore needs to be a core part of national increasing the risk of violence. In fragile situ- strategies and international supporting ef- ations, many of these external pressures will forts for violence prevention and recovery.
  • 22. 16 WO R L D D E V E LO P M E N T R E P O RT 2 0 1 1 International assistance needs also differ citizen security, justice, and jobs. The Report in fragile situations. The requirement to gen- first presents the basic tools and then looks at erate rapid confidence-building results puts how to differentiate strategies and program- a particular premium on speed. The focus ming to different country circumstances, us- on building collaborative, inclusive-enough ing country-specific assessments of risks and coalitions and on citizen security, justice, opportunities. and jobs draws together a wider range of international capacities that need to work Political and policy signals to build in concert—for example, for mediation, hu- collaborative, inclusive-enough man rights, and security assistance, as well as coalitions humanitarian and development aid. Where the political situation is fragile and the capac- There is a surprising commonality across ity of local systems to ensure accountability countries in the signals that most frequently is weak, international incentives—such as build confidence and collaborative coali- recognition and sanction mechanisms—also tions (see Feature 4). They can include im- play a significant role. Take one of the smaller mediate actions in credible national or local West African countries that have recently appointments, in transparency, and in some had coups d’état. Local mechanisms to re- cases, the removal of factors seen as nega- solve the situation peacefully are limited, and tive, such as discriminatory laws. Security African Union (AU) and Economic Com- forces can be redeployed as a positive signal munity of West African States (ECOWAS) of attention to insecure areas, but also as a pressure to return to a constitutional path is sign that the government recognizes where critical. So regional and global recognition particular units have a record of distrust or for responsible leadership can play a role in abuse with communities and replaces them. strengthening incentives and accountability Measures to improve transparency of infor- systems at a national level. mation and decision-making processes can be important in building confidence, as well as laying the basis for sustained institutional Practical policy and program tools transformation. for country actors Signals can also be announcements of fu- ture actions—the selection of two or three The WDR lays out a different way of thinking key early results; the focus of military and about approaches to violence prevention and police planning on citizen security goals; recovery in fragile situations. It does not aim or setting approaches and timelines toward to be a “cookbook” that prescribes recipes— political reform, decentralization, or tran- each country’s political context differs, and sitional justice. Ensuring that political and there are no one-size-fits-all solutions. While policy signals are realistic in scope and tim- the choice of confidence-building measures ing and can be delivered is important in and institution-building approaches needs managing expectations—by anchoring them to be adapted to each country, a set of basic in national planning and budget processes tools emerging from experience can be the and discussing any external support needed basis for that adaptation. These core tools in advance with international partners. include the options for signals and com- When signals relate to future action, their mitment mechanisms to build collabora- credibility will be increased by commitment tive coalitions, demonstrating a break from mechanisms that persuade stakeholders that the past and building confidence in positive they will actually be implemented and not outcomes. They also include a description of reversed. Examples are Colombia’s and Indo- the programs that can deliver quick results nesia’s independent, multisectoral executing and longer-term institutional provision of agencies and third-party monitors, such as