What are effective strategies for post-conflict economic development?

2 Restore macroeconomic stability

The second strategy for post-conflict economic development is to restore macroeconomic stability, which is essential for creating a conducive environment for investment, trade, and growth. Macroeconomic stability involves restoring fiscal and monetary discipline, managing public debt, stabilizing exchange rates, and rebuilding foreign reserves. It also involves implementing sound policies and reforms to enhance revenue mobilization, public expenditure management, financial sector regulation, and anti-money laundering.

3 Rebuild physical and human capital

The third strategy for post-conflict economic development is to rebuild physical and human capital, which are the key assets for productivity and competitiveness. Physical capital includes infrastructure, such as roads, bridges, power, water, and telecommunications, which are often damaged or destroyed during conflict. Human capital includes education, health, and skills, which are often neglected or eroded during conflict. Rebuilding physical and human capital requires mobilizing resources, prioritizing sectors, and ensuring quality and sustainability.

4 Promote social inclusion and cohesion

The fourth strategy for post-conflict economic development is to promote social inclusion and cohesion, which are vital for fostering trust, cooperation, and resilience. Social inclusion and cohesion involve addressing the root causes and consequences of conflict, such as inequality, discrimination, marginalization, and trauma. They also involve promoting reconciliation, justice, accountability, and participation. Promoting social inclusion and cohesion requires supporting inclusive institutions, policies, and programs that respect diversity, protect rights, and empower groups.

5 Diversify and integrate the economy

The fifth strategy for post-conflict economic development is to diversify and integrate the economy, which are crucial for enhancing growth potential and reducing vulnerability. Diversifying the economy involves developing new sectors, products, and markets that can create jobs, income, and innovation. Integrating the economy involves connecting with regional and global markets that can offer opportunities, competition, and cooperation. Diversifying and integrating the economy requires improving the business climate, facilitating trade and investment, and strengthening regional and international cooperation.

6 Strengthen governance and institutions

The sixth strategy for post-conflict economic development is to strengthen governance and institutions, which are fundamental for ensuring legitimacy, effectiveness, and sustainability. Strengthening governance and institutions involves building the capacity and accountability of the state, the private sector, and the civil society to deliver public goods and services, enforce the rule of law, and manage conflicts. It also involves fostering a culture of transparency, participation, and dialogue among different stakeholders. Strengthening governance and institutions requires political will, leadership, and ownership, as well as external support and oversight.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?