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engaging fragile states - Woodrow Wilson International Center for ...

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the social context. The central question needs to be how the peace can be preserved.<br />

At USAID, it was recognized that the usual guidance being offered by economic<br />

growth and private sector specialists reflected what they knew how to do, but not<br />

necessarily the appropriate policies <strong>for</strong> post-conflict environments. Consequently,<br />

USAID developed A Guide to Economic Growth in Post-Conflict Countries to train<br />

economists and others in new concepts suitable <strong>for</strong> these environments.<br />

Policies should not focus simply on achieving overall economic impacts but<br />

need to factor in distributional criteria. The aim is not just efficiency; who receives<br />

the benefits from the economy also matters greatly. Particular groups, like<br />

demobilized soldiers, need to find ways to gain an income through legal activities.<br />

Rather than focusing only on the growth rate, economic decisions need to look at<br />

the relative gains of differing segments of the population and at how the urbanrural<br />

divide is affected. For example, regional disparities that exacerbate access to<br />

economic participation may have been important in the conflict.<br />

What are the Most Important<br />

Economic Priorities?<br />

Economic policies in post-conflict settings need to take a number of actions in<br />

the early stages of transition. First, it is essential <strong>for</strong> stabilization to boost general<br />

well-being and employment through programs that get money quickly into the<br />

hands of ordinary people. What motivates people to engage in or support armed<br />

conflict are not only grievances but greed, in the sense of fulfillment of basic<br />

economic needs. Policies have to address these underlying economic motivations<br />

because individuals make decisions about which group they will follow based<br />

largely on who is going to make them and their family better off. Will people<br />

support a new regime that is still in <strong>for</strong>mation, or existing leaders who control<br />

a resource and offer them an immediate income? It is critical to influence this<br />

calculus by showing that the future lies down a peaceful path and they should<br />

not return to violence.<br />

An earlier section highlighted the importance after a war of ensuring continued<br />

physical security. This is crucial, not simply from a personal standpoint, but<br />

from an economic one. Will there be a return to violence? How long can security<br />

be counted upon? The assurance that physical security is in place is very important<br />

to the kinds of investors who need to be attracted. To expect people who<br />

are interested in doing business or to invest in activities that will create a lot of<br />

jobs, there needs to be enough security <strong>for</strong> them to take a long-term perspective.<br />

Economists tend to take security <strong>for</strong> granted because in most of the countries<br />

Responding to Fragile States: Lessons From Recent Experience | 87

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