1. Rebuilding war-torn states:
tomorrow’s challenges for
post‑conflict reconstruction
Graciana del Castillo Managing Partner, Macroeconomics Advisory Group,
and former Senior Research Scholar, Columbia University
> Paper 04/2012
Peace through security versus
economics: a critical dilemma
In the aftermath of the Arab Spring and regime change in
many countries, with South Sudan joining the international
community as an independent state, and with countries as
far apart as Afghanistan, Liberia and Haiti obviously ‘off track’
in their efforts to rebuild their war-torn or disaster‑affected The economics of peace or economic reconstruction (that is,
communities, it seems a perfect time to review and re-assess the economic transition) represents an intermediate and
policies, strategies and civilian‑military interactions for the distinct phase between the economics of war or chaos
transition to stability and sustainable peace. (that is, the underground economy of illicit and rent-seeking
activities that thrive in these situations) and the economics of
Despite the differing characteristics of each particular case, development. The main objective of this intermediate phase
when countries at a low level of development emerge from should be to make peace irreversible. Unless this happens,
civil war or other chaos they face the difficult challenge of
war-affected countries will not be able to move into a
responding to the root causes of the conflict so as to make
development-as-usual phase in which they will confront the
peace irreversible. In fact, countries embark on a complex,
normal socio-economic challenges facing countries at low
multifaceted transition—to pull back from violence and
levels of development but not affected by conflict or chaos.2
insecurity (the security transition); to transform a repressive
political regime into a participatory one based on the rule of ECONOMICS OF WAR
law and respect for human rights (the political transition); to ↓
end ethnic, tribal, religious or class confrontations and initiate ECONOMICS OF PEACE
a process of national reconciliation (the social transition); (or economic reconstruction)
and to move away from large macro-economic disequilibria (or economic transition)
and war-torn economies in order to engage in economic
↓
reconstruction and so create a functioning economy in which
people can have access to basic services and earn a fair, licit ECONOMICS OF DEVELOPMENT
and sustainable income (the economic transition).1 (or normal development)
(or development as usual)
1 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality

2. The record is indeed unimpressive. In fact, the United Moreover, security and economic challenges need to be
Nations estimates that roughly 50 per cent of the countries dealt with in an integrated manner rather than separately.
that have embarked on the economics of peace have For this, military–civilian collaboration is essential. The need
moved backwards and reverted to conflict within a few for integration does not mean that every player should
years. Of the half that have moved forward into normal participate or have a say in every activity; this would be a
development, most have ended up highly dependent on aid. recipe for inaction. It means that the various parties involved
This is an unsustainable situation in the aftermath of the should be well informed about what others are doing, both
global financial crisis, with its severe fiscal and employment inside the host government and among the international
repercussions in donor countries. community, so as not to be working at cross-purposes and
to be able to benefit from the synergies these operations
The economics of peace is broadly defined as including
might create.
not only the rehabilitation of basic infrastructure and
services ravaged during war and the demining of fields and The following section of this paper discusses the
roads so that productive activity can begin, but also the characteristics of the economics of peace and what makes
modernisation or creation of a basic institutional and policy the challenges of this intermediate phase fundamentally
framework. This is essential for the successful re-integration different from those associated with development as usual.
of former combatants and other crisis-affected groups into The third section discusses aid-related problems that affect
the economy, which is the basis for national reconciliation. economic reconstruction; in particular, it analyses the
It also entails dealing with ‘spoilers’, who will be reluctant various myths and realities of aid, which host governments
to give up the illegal activities they engage in to benefit and the international community need to keep in mind when
themselves during conflict. deciding on a strategy for peace. The fourth section argues
that, despite the characteristics of each particular case,
Because of the strong link between security and the
a coherent, integrated and pragmatic strategy for peace
economy in the transition to peace, the interaction between
through economics is central to stability and sustainability.
military and civilian policies and strategies is especially
Such a strategy requires moving away from humanitarian
important. It is widely accepted that restoring security is an
aid to reconstruction aid as soon as feasible and finding
important challenge, even a pre-condition for re-activating
a balance between military and economic assistance.
the economy. Causality, however, goes both ways. It is less
Without such a strategy foreign forces—national or NATO
recognised, but just as important to remember, that the
forces or UN peacekeepers—will not be able to withdraw
re-activation of productive activities, jobs and basic services
from the country and leave behind a stable, sustainable
for the population at large is in turn central to establishing
situation. Finally, recommendations for facilitating the
lasting security. Failure in this area has been perhaps the
economics of peace are made in the form of 10 basic
primary impediment to restoring and maintaining security in
‘commandments’. These could be used as the guiding
many countries.
principles when designing, negotiating and implementing
So much is at stake, and the dilemma of ‘peace through future policies, strategies and civilian–military interactions
security’ as opposed to ‘peace through economics’ deserves for stability and peace.
further debate. One can argue that an imbalance between
efforts and resources in responding to the security and
economic challenges has proved a major factor for countries Economics of peace versus
relapsing into conflict. Because of the way security and the development as usual:
economy interact, the civilian–military collaboration during
this phase is crucial in order to succeed in a number of areas: the main challenges
>> eliminating the underground economy Because the economic transition takes place in the context
of a multifaceted transition to peace—not independently
>> rebuilding essential infrastructure and services
from it—and because the transition requires a number of
>> designing, implementing and monitoring disarming specific peace-related activities that are complex and costly
>> developing and implementing demobilisation and re- but vital to keeping the peace, the economics of peace or
integration programs that are sustainable over time the economic reconstruction phase differs fundamentally
from development as usual. These additional activities have
>> demining roads and fields important financial consequences that need to be given
>> carrying out other activities that need to priority in budgetary allocations, and as a result the peace
take place in the transition to peace. and the development objectives often clash during this
2 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality

3. phase. When this happens the peace (or political) objective whether aid should be increased or eliminated altogether,
should prevail at all times over the development (economic) rather than on how the aid can be made more effective.
one. The purpose of this phase is national reconciliation The challenge is to use aid to create dynamism and inclusion
and peace consolidation, rather than optimal economic in countries emerging from war or chaos. So far, aid has
policies. Obviously, without peace there is little chance for proved to be more of a problem than a solution: not only
development. have aid policies failed to achieve their basic objectives but,
most worrisome, they have threatened the legitimacy of
The similarities between countries in the process of
government, created all types of distortions and facilitated
economic reconstruction and those undergoing normal
corruption. This is particularly the case in countries that
development, while real indeed, should not lead to the
have received large volumes of aid for long periods.
conflation of policies.3 Policy making in countries emerging
from conflict—as in those emerging from other crises such In analysing the impact of aid on countries emerging from
as natural disasters or financial collapse—has less room severe crisis, it is clear that economic stabilisation and
for flexibility than under normal circumstances. Differences the re-activation of growth in these countries have proved
arise in relation to the horizon over which economic policies much easier than the creation of productive, sustainable
can be planned (short-term emergency as opposed to employment for the population at large, without which
medium- and long-term problems); the amount of aid (sharp peace might not be long-lasting.4 At least three myths
spikes as opposed to low and stable flows); the treatment of permeate an analysis of aid effectiveness.
different groups (preferences as opposed to equal treatment
The first myth is that growth-creating aid is effective in
for all); and the involvement of the international community
supporting the government reform agenda and re-activating
in national affairs (intense and intrusive as opposed to non-
the economy. This is not necessarily so. Countries in the
interference).
normal process of development receive levels of aid—
As a result, emergency policies needed to overcome expressed as official development assistance over gross
crises should be adopted with a sense of urgency and of national income—of 3 to 5 per cent of GDP, whereas, with
forgiveness for distortions. In such situations, contrary few exceptions, in countries emerging from war and major
to the process of normal development, there is no luxury disasters aid can, as noted, spike to 50 to 100 per cent of
to plan policies with medium- and long-term horizons in GDP in the immediate post-crisis period.5 Furthermore, large
mind. Policy making in crisis situations should also involve a volumes of aid are highly correlated with a large international
disregard for the ‘equity principle’ that guides development presence in the country, including foreign military forces.
policies and favour instead groups that have been most
It is not surprising that large volumes of aid and the
affected by the crisis. At the same time, countries emerging
international presence, by themselves, create growth,
from such crises face the challenge of using large volumes of
particularly starting from a low base.6 The question becomes
aid (which can reach as much as 50 to 100 per cent of GDP
whether such growth is positively affecting the population at
or even more in a few cases) in an effective and non-corrupt
large and is sustainable over time or whether it is supporting
way. They also have to put up with the intrusive political
a small elite and creating distortions that are hurting the
involvement of the international community and often with
economy and the ordinary citizen, not only in the current
the presence of foreign troops.
time frame but also in the future. The latter situation is
If peace is to have a chance, it is important to recognise clearly the case in Afghanistan, which has experienced
that the short-term challenge of the economics of peace spectacular growth—showing annual growth of 12 per cent
is primarily to avoid relapsing into conflict and thus to on average a year in the past decade, which is even higher
contribute to stability and national reconciliation—not to than China’s 11 per cent. Similarly, growth figures for Liberia
deal with the immediate challenges of development. The exaggerate the positive impact aid has had in the country.7
latter involves a long-term proposition that can be properly
The second myth is that rapid growth will generate
dealt with only if peace is sustained.
productive employment and will improve living conditions.
This is not necessarily the case. In fact, aid is largely used
Aid myths and realities in to finance foreign contractors for goods and services
produced by companies in donors’ countries and foreign
supporting peace procurement of UN and other interested parties in the
The past few years have witnessed a hotly debated country. Furthermore, high rates of growth are often
controversy over aid that has erroneously focused on associated with mining and agricultural plantations or
3 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality

4. export-processing zones, which create mostly low-wage, crisis affected countries can ill afford and that create
low-quality jobs—a source of resentment that can easily permanent dependency.11
become a catalyst for instability.
The mere presence of foreign workers and their activities
The third myth is that, by creating jobs and supporting puts pressure on prices, wages, rents, and transportation
private sector development, aid will of necessity strengthen and other services. And, more troublesome, aid-related
the licit economy. During wars people can become really activities generally deprive the government of expertise: by
entrepreneurial. By promoting private sector development, offering better wages (generally in hard currency) and more
aid can strengthen the corrupted entrepreneurial class that attractive working and living conditions, the international
existed before. In encouraging better relations with local community lures the most qualified people away from the
partners at different levels of government donors have often civil service. Skilled workers and professionals who obtain
condoned corruption. Similarly, by channelling aid outside jobs as drivers and interpreters will soon lose their skills.
the government budget donors have often encouraged This not only affects the government’s capacity to provide
bribes, rather than reduced corruption. Furthermore, many services and security in the short run; it also threatens the
foreign contractors have proved corrupt themselves or future productive capacity of the country.12
lenient about paying bribes to facilitate their operations in
Moreover, aid is provided in a fragmented way, and
these countries.8
innumerable flagship programs tax governments’ limited
The reality with aid in conflict- and disaster-affected capacity. By not channelling aid through the government
countries is often far from what the myths would lead us budget, donors have promoted a fragmented, rather than
to believe. Aid has failed to help countries stand on their integrated, strategy in which the recipient government
own feet and has led to dependency. Disbursement of cannot have strong ownership, and lack of ownership
reconstruction aid is often delayed until the country has the generally leads to unsustainable projects. At the same time,
right conditions in terms of political leadership, governance, ‘coordination’ is a catchcry among the aid community, but
institutions and human capacity. In the meantime, no one wants to be coordinated. A truly integrated approach
humanitarian aid continues to be disbursed.9 Humanitarian among the different organisations has remained difficult to
aid to save lives in the short run should not be neglected, but achieve, despite big improvements in their collaboration
it should be recognised that such aid promotes consumption over the years.
(rather than investment), creates price distortions and work
disincentives (just as welfare programs do in industrial
countries) and fails to build local capacity.
A coherent, integrated and
Countries must be weaned off humanitarian aid as soon pragmatic strategy for peace
as the situation allows it. Reconstruction aid to improve Each country emerging from war or chaos should end up
infrastructure, promote start-up companies and re‑activate with its own strategy, attuned to its own political, security,
services, agriculture, small enterprises and mining socio-economic and cultural situation. Strategies will also
should start right away and should be the main focus differ according to the level of aid and other international
of international aid commitments. It is unfortunate that support that countries can garner according to their
the striking differences between humanitarian aid and geopolitical importance. Taking these factors into account,
reconstruction aid have become blurred in the present the national authorities, with international support as
context—with the same agencies, non-government needed, should prepare a tailored strategy, one based
organisations or military forces often providing both.10 on national priorities and a sober assessment of existing
Saving ives is important but making them worth living conditions and resources and that is coherent, integrated
should be just as important. and pragmatic. Any such strategy needs to have broad
At the same time, aid creates all types of distortions. support among the population and must be coordinated
By changing relative prices, food aid discourages local among the various interested parties.
production and work. Donor-imposed policies designed to Whatever the strategy is, however, lessons from the recent
liberalise trade—including those introduced by international past suggest that the economics of peace will be more
development and financial institutions as well as bilateral effective in achieving the strategy’s goals if some basic rules
donors—have led to cuts in tariffs on rice and other are followed. The first and most important of these is that
staple products. Both initiatives have adversely affected economic reconstruction is not development as usual and
food security and have often led to floods of imports that the peace objective should prevail over the development one
4 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality

5. at all times. As a consequence, optimal economic policies agreements with large transnational corporations, rather
are not always feasible or desirable in the short run. The than with smaller firms from the region that might have
second rule is that policy and legal frameworks should be experience in comparable countries: the latter might
kept as simple, flexible and transparent as possible, given bring technologies and practices that are cheaper and
the existing constraints and limited government capacity to more readily adapted to local conditions. Additionally,
execute such policies.13 governments must decide on the scale of some projects: the
experience of Iraq has shown that small projects can work
Once the government builds up consensus for its overall
better than large ones in an insecure environment or in one
strategy, it should design the specific policies and set up
where the operational capacity and maintenance abilities of
priorities in budgetary allocations. An appropriate and fair
the country are limited.
legal and regulatory framework for the distribution of gains
and risks, as well as for ensuring accountability based on If political conditions allow it and the support of regional
results, is essential for improving efficiency and fairness development banks is forthcoming, regional infrastructure
and avoiding corruption. Unfulfilled expectations on the could be built to make these countries more competitive by
part of disgruntled groups can seriously endanger the bringing cheaper electricity or power to some parts of their
transition to peace. territory or to create roads and other infrastructure that
could facilitate and decrease the costs of travel and trade.
The development of physical and human infrastructure is
often necessary throughout the country, and governments Governments need to make crucial decisions about
must decide what basic infrastructure and services are exploiting natural resources and creating resource funds.
essential to create social capital and re-activate agriculture, They need to find a combination of incentives and coercion
tourism, mining, or whatever other sectors they want to to bring large investors into the peace process and ensure a
stimulate. While some elements of infrastructure can be fair allocation of resources—between investors and citizens
a prerequisite for production (dams in some areas, for as well as between present and future generations. Although
example), development of others (such as road, ports or the exploitation of natural resources has great potential
railways) could be postponed to coincide with the generation in terms of re-activating production and employment, as
of mining or agricultural produce for export. well as in improving the fiscal and external stance of the
government, it can also become a lightning rod for conflict
Because many countries emerging from war are at very low
among local indigenous groups or a focus for sabotage by
levels of development, aid should be immediately targeted
insurgencies in countries with ongoing conflict.16
at developing basic human infrastructure. The aid system
has been more effective in rebuilding clinics and schools, Just like large influxes of aid, large export proceeds from
roads and other physical infrastructure than it has been in natural resources could appreciate the local currency,
building the social capital necessary to have effective public thereby discouraging other exports—an effect usually
education and health services. Capacity building in the referred to as ‘Dutch disease’. Despite the fact that Dutch
former areas should be done on a holistic basis, rather than disease has not been a problem among recipients of large
in a fragmented way. It should also be done on an emergency amounts of aid such as Afghanistan and Liberia, international
shift since the inadequacy of these services has not only financial institutions often recommend that governments
been a major deterrent to re-activating production but has create resource funds in order to save the proceeds from the
also give rise to great frustration among the population. exploitation of natural resources for future generations.17
Both national and international companies can participate Whether or not to follow this advice is one of the toughest
in the construction or rehabilitation of national and local decisions national governments have to make: will future
infrastructure. Local entrepreneurs should be encouraged generations be better off if export proceeds are saved
to participate in bidding projects, alone or in joint in a fund (and probably invested in international capital
ventures. Because financing is always a serious constraint, markets) or will they be better off if most of those proceeds
governments must explore different forms of concessions are invested in human and physical infrastructure that will
under public–private partnerships.14 In post-crisis situations also benefit future generations? The answer to this question
private investors hardly ever become involved unless it is depends on how productively the funds can be invested in
in partnership or with guarantees from the government, infrastructure as well as in improving the human capacity of
donors or multilateral agencies.15 young populations.18
In choosing the foreign partners, governments must also
decide on the pros and cons of entering into contract
5 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality

6. Economics of peace into the 7. Establish different programs for higher level
commanders, providing for them orientation, training,
future: 10 basic commandments credit and technical assistance. The United Nations
acknowledged better results from ‘Plan 600’ in
In responding to tomorrow’s challenges for economic
El Salvador than from programs for lower-ranking
reconstruction in countries emerging from war or another
combatants, which lacked a similar level of support.
type of crisis, as well as in countries that are clearly off track
in their efforts to rebuild their economies, it is imperative 8. Increase support for non-government organisations
that civilian–military donors and partners heed 10 basic with successful records in creating entrepreneurs
commandments. in rural development, in carpet weaving, jewellery
design, construction or any other activity the country
1. Apply TE Lawrence’s dictum, that it is better to let
wants to encourage. Active policies for promoting new
them do it than it is to try to do it better for them.
start-ups and local companies’ expansion through
Let national negotiators and local leaders and
credit, training and technical support are imperative.
communities determine what their economic needs
and priorities are, and let insurgents determine 9. Establish economic reconstruction zones to jump-
their preferred avenue for re-integration. Unless the start sustainable economic activity, create jobs
participants are empowered and assume ownership, and export earnings, improve aid effectiveness and
programs will not be sustainable, resources accountability, and avoid aid dependency. The zones
will go to waste, and peace will not endure. could combine integrated rural development and
light industries for domestic consumption and labour-
2. Ensure the integration—rather than merely the
intensive manufacturing and agro-businesses for export.
coordination—of economic factors into the political
The United States and other countries should open
and security agenda. This would entail using re-
their markets to goods produced in these zones.19
integration and other economic programs as a carrot,
even during peace negotiations. Such programs are 10. Ensure that the political or peace objective prevails at all
central to supporting peace and national reconciliation. times, even if this strategy might delay the attainment of
economic stability and development. This often means
3. Support a peace agreement or a peace strategy,
accepting that optimal and best-practice economic
as the case may be, designed in accordance with
policies are not attainable—or, indeed, even desirable.20
the country’s financial and technical capacity to
implement it. This requires reasonable projections for
domestic tax revenues and aid, as well as the right Bibliography
mix of foreign and domestic expertise. Avoid overly Addison, Tony (ed.), From Conflict to Recovery in Africa, Oxford
optimistic projections that lead to unworkable plans University Press, Oxford, UK, 2003.
and unreasonable expectations the government will
Boyce, James K (ed.), Economic Policy for Building Peace: the lessons
not be able to fulfil, as happened in Guatemala.
from El Salvador, Lynne Rienner, Boulder CO, 1996.
4. Channel aid through the central government budget,
del Castillo, Graciana, ‘The economics of peace: military vs civilian
earmarked for local authorities as appropriate, so that reconstruction—could similar rules apply?’ in Expeditionary
officials can acquire legitimacy by providing services, Economics: toward doctrine for enabling stabilization and growth,
infrastructure and security to their communities. West Point US Military Academy NY, forthcoming.
5. Ensure that such aid moves quickly from short-term ——, ‘Aid and employment generation in conflict-affected countries:
humanitarian purposes—to save lives and to feed policy recommendations for Liberia’, in Foreign Aid and Employment ,
and shelter those renouncing war or affected by Working Paper no. 2012/47, UN/WIDER, Helsinki, 2012.
it—to reconstruction activities aimed at creating ——, The Economics of Peace: five rules for effective reconstruction,
investment in a holistic way so as to build social capital, Special report #286, US Institute of Peace, Washington DC, 2011a.
improve productivity and financing, ensure food
——, Reconstruction Zones in Afghanistan and Haiti: a way to
security, and enable people to live dignified lives.
enhance aid effectiveness and accountability, Special report #292, US
6. Establish well-planned and synchronised Institute of Peace, Washington DC, 2011b.
programs for demobilisation, disarmament and ——, ‘The Bretton Woods institutions, reconstruction and
re‑integration. These are the sine qua non for making peacebuilding’, in Mats Berdal and Achim Wennman, Ending Wars,
the transition from war to peace irreversible. Consolidating Peace: economic perspectives, Adelphi Series of Books,
IISS, London, 2010a.
6 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality

7. ——, ‘Peace through reconstruction: an effective strategy for 10
The different impact of these two types of aid was actively debated
Afghanistan’, Brown Journal of World Affairs, vol. XVI/II, Spring/ at the time of the Marshall Plan. Dulles (1993) argued that it would
Summer, 2010b. be a waste of money merely to provide humanitarian aid to feed the
Europeans for a year or two. Reconstruction aid was necessary to
——, ‘Economic reconstruction of war-torn countries: the role of the
give them the tools without which they would have little chance of
international financial institutions’, Setton Hall Law Review, vol. 38,
righting their own (postwar) economies. He stressed that policies
no. 4, December 2008a.
adopted in the first year of the plan would be decisive in determining
——, Rebuilding War-torn States: the challenge of post-conflict how effectively reconstruction proceeded. The same is still true in the
economic reconstruction, Oxford University Press, Oxford UK, 2008b. present context.
——, ‘Auferstehen aus Ruinen: Die Besonderen Bedingungen des
11
For example, President Clinton publicly apologised in March 2010 at
Wirtschaftlichen Wiederaufbaus nach Konflikten’, Der Überblick the Senate Foreign Relations Committee for championing policies that
(Germany’s Foreign Affairs), issue 4, December, 2006. destroyed Haiti’s rice production. As he pointed out, ‘It may have been
good for some of my farmers in Arkansas, but it has not worked. It was a
—— and Charles Frank, ‘Innovative methods for infrastructure mistake’. See Katz (2010).
financing: case studies’, Paper prepared for the Inter-American 12
At the same time, efforts at building the national capacity by using
Development Bank for discussion in the framework of the Integration
aid to embed consultants in the local ministries have not generally
of Regional Infrastructure in Latin America, 2003.
worked. Independent consultants have a stake in perpetuating the need
de Soto, Alvaro and Graciana del Castillo, ‘Obstacles to peace- for their own services. It would be best if governments and relevant
building’, Foreign Policy, vol. 94, Spring, 1994. companies sent experts on secondment for short periods to help build
Dulles, Allen W, The Marshall Plan, Berg Publishers, Providence/ national capacity. Companies should also be willing to do this and
Oxford. (Original 1948 manuscript is in the Allen W Dulles Papers at send their own staff on short-term assignments since bonding with
Princeton University.) the government would give them a head advantage once business
reactivates in the country.
Katz Jonathan M, ‘With cheap food imports, Haiti can’t feed itself’, 13
For a detailed analysis of these rules, both for civilian-led and
Washington Post, 2 March 2010.
for military-led reconstruction, see del Castillo (2011a). For the
international financial institutions position, see del Castillo (2010a,
Notes 2008b).
14
For the experience of innovative ways of financing infrastructure
1
See del Castillo (2008a, Chapter 1). See also the bibliography for
through PPPs in different parts of the world, see del Castillo and Frank
references on the economic transition in countries emerging from war
(2003).
or chaos.
15
This may be different in the case of the Chinese where there is often
2
To avoid repetition, the terms ‘development as usual’, ‘normal
a tenuous distinction and a symbiotic relationship between private and
development’ and ‘long-term development’ are used interchangeably.
public companies.
The terms ‘economic transition’, ‘economics of peace’, ‘economic
reconstruction’ and ‘reconstruction’ are also used interchangeably.
16
See del Castillo (2011a).
3
See del Castillo (2008a, Chapter 3).
17
Although Dutch disease was rife in El Salvador, the reason it has
not been present among other large aid recipients is mainly that a
4
In fact, stabilisation policies have often been an impediment, or at
large part of it goes to pay for foreign contractors and experts, foreign
least a constraint, to building up peace in crisis-affected countries. See
procurement of UN and other stakeholders in the country, and other
del Castillo (2010a, 2008a, 2008b), Addison (2003), Boyce (1996), and
imported goods and services. It is also associated with the fact that
de Soto and del Castillo (1994).
local elites and expatriates producing in the country often take their
5
In countries such as Afghanistan and Liberia the spikes have been profits out of the country.
unusually large and long. See del Castillo (2012, 2011b, 2010b). 18
The experience of Timor-Leste is relevant in this regard. For details
6
Former UN Secretary-General Kofi Annan has said that Africa-wide see del Castillo (2008a, 2006).
growth rates of 5.5 per cent are impressive. In a region where annual 19
For the details on reconstruction zones, see del Castillo (2012,
income per capita can be as low as $200 in some countries, and not
2011b).
much more in others, with few exceptions, such a level of growth is not
as impressive as that.
20
See del Castillo (2008a, 2010a).
7
See del Castillo (2012, 2011b).
8
See del Castillo (2008a).
9
A serious problem with aid in Afghanistan and Haiti has been the
exorbitant humanitarian aid in relation to reconstruction aid provided
over the years. See del Castillo (2012, 2011b).
7 ACMC Paper 4/2012 > Conflict prevention in practice: from rhetoric to reality