Conflict-Sensitive Economic Tools and Methods

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Events and Multimedia
Economic Dimensions of Peace Negotiation
24 February 2011 This all day event focused on the arguments for and against the inclusion of economic considerations in peace processes, mechanisms to provide incentives for key stakeholders, strategies for resource-rich countries and recent case studies. View audio and other resources from this event on the event page.
Revisiting Security Sector Reform in Liberia: A Discussion with the Liberian Defense Minister
March 29, 2011| This co-hosted event features Hon. Brownie Samukai, Minister of Defense in Liberia to discuss prospects for peace in Liberia and the sub-region in light of the upcoming elections and rising instability in the security sector.
Towards the Consolidation of Democratic Processes in Nigeria
9 December 2010 The USIP In partnership with The National Endowment for Democracy, will be hosted a dialogue with the Foreign Minister of Nigeria.
Understanding Strategies to Address Corruption in Conflict Affected Countries
November 8, 2010 | This is event discusses the forms of corruption in conflict affected states, and proposes strategies to address corruption that are conflict-sensitive and peace-building.
A Fresh Look at Post-Conflict Economics: Theory, Experience, and Reality
September 2010 This half-day event, which featured roundtable discussions on theory, experience and reality, discussed how to reconnect the dots and provide insights into the design, execution and monitoring of successful economic recovery programs in post-conflict societies.
Striking the Appropriate Balance: Revisiting the Role of the Military in Economic Reconstruction
April 2009 | Effective and sustainable state-building requires a balanced application of all instruments of foreign assistance, particularly defense, diplomacy and development (the 3Ds).
Improving Public Finance Management to Enhance Aid Effectiveness
February 2009 | Ongoing attempts to modernize U.S. foreign assistance and increase development support would only be effective if developing countries have capable public financial management (PFM) systems in place. Unfortunately, most recipients have weak institutions, fragile policy frameworks and significant human resource deficiencies. Although some progress has been made in many developing countries, very little attention has been paid to resolving the particular challenges facing conflict-affected states. Strategies must be designed to address these shortcomings to ensure aid effectiveness and sustainable post-conflict recovery.
Financial Turmoil and Fragile States
October 2008 The global financial system has witnessed massive bailouts, significant government intervention and wide-ranging corporate restructuring in a bid to avoid or mitigate the negative effects of the recent market slump. This has taken place against the backdrop of plummeting economic indicators and eroding investor confidence. While much is known about the impact and ramifications of these events in industrialized and industrializing economies, relatively little is known about the implications in the world's fragile and conflict-affected countries. More specifically: How does this crisis affect conflict-affected states over the immediate and longer terms? Would resource-rich economies be less affected? Are recent positive strides in economic performance in jeopardy? Who are the likely winners and losers? What does this mean for trade and aid? What policy options and strategies should governments and stakeholders be considering? The panel offered perspectives and recommendations on these related issues.
Creative Solutions for Economic Recovery in Conflict-Affected States
April 2008 Vibrant economic activity contributes to the consolidation of peace in conflict-affected countries by supporting reconstruction, redressing inequality, creating a constituency for lasting economic transformation, providing employment, and fostering hope. Recent efforts to trigger and sustain economic recovery in conflict-affected countries like Afghanistan, East Timor, Iraq and Sierra Leone have had mixed results for a number of reasons. These countries have to contend with complex emergencies in environments where needs are urgent, resources limited, security tenuous, capacity constrained and expectations high. Engendering meaningful economic progress demands innovative thinking and creative solutions. This panel analyzed relevant conceptual issues and examined recent bilateral, multilateral and private sector initiatives that could address the peculiar challenges conflict-affected countries face in this regard.
Publications
Defusing Egypt’s Demographic Time Bomb
March 2011 | Peace Brief by Raymond Gilpin, Amal A. Kandeel, and Paul Sullivan
This publication looks at the development of youth employment and economic development in Egypt underpinning the recent 2011 revolution
November 2010 | by Lex Rieffel and Raymond Gilpin Lex Rieffel, discuss the release of Aung San Suu Kyi from house arrest in Myanmar/Burma.
The center recognizes that a conflict-sensitive development is imperative for success in conflict-affected states. The center’s work in this area involves development of conflict-preventative economic tools, economic reconstruction, and economic aspects of mediation.
On This Page
- Blogs on the International Network for Economics and Conflict (INEC)
- Economic Aspects of Mediation
- Manual on Macroeconomic Stabilization in Conflict Affected States
Related Blogs on INEC
The International Network for Economics and Conflict (INEC) is a comprehensive one-stop web tool for practitioners of economic development working in fragile states, periodic blogs from scholars in the field including Nobel prize winners. It offers information on the latest research and policy in the field, was designed and developed after research and consultation concluded that there was a gap in resources provided to development practitioners working in fragile states. Below are blogs related to conflict-sensitive economic tools and methods:
- Rules for Effective Financial Itermediation in Fragile States, by Dr. Willene Johnson
- Are Islamic Banks a More Powerful Force for Post-Conflict Economic Development than Conventional Banks?, by Andrew Cunningham
- Far Out Conflict Prevention: The Bali Solution, by Lex Rieffel
- A Framework for Aid in Post-Conflict Zones, by Dr. Willene Johnson
- How Do We Create a More Level Playing Field for Businesses in Conflict-Affected Regions/Countries?
- Five Rules for Post-Conflict Economic Reconstruction, by Graciana del Castillo
- How Do Businesses Overcome Specific Challenges in Conflict-Affected Environments?
- How Do We Understand the Business and Peace Nexus?
- Addressing the Grievances of Egypt's Revolutionaries, by Amal Kandeel
- Towards Effective Monitoring and Evaluation in Conflict-Affected States, by Alice Willard
- The Economic Dimension of Peacebuilding: The Best Options Won't Work, by Lex Rieffel
- What do recent G-20 Decisions Mean For Conflict-Affected States, by Raymond Gilpin and Amanda Mayoral
Economic Aspects of Mediation
The close causal relationship between economic activity and conflict is an important part of crafting effective mediation and resolution strategies. These strategies should be conflict-sensitive. They must be region-specific with a clear framework to identify enablers and spoilers that is buttressed by modalities to provide effective incentives and disincentives. Although economic resources, economic actors and economic policies contribute to the onset and perpetuation of a wide range of conflict, economic aspects must be judiciously crafted to ensure relevance and applicability.
While significant scholarly and policy attention has been directed to economic dimensions of conflict prevention and post-conflict economic reconstruction, economic aspects of mediation remains relatively uncharted territory. There is an ongoing debate about the pros and cons of economic perspectives/instruments in mediation strategy. However, in cases when economic instruments are crucial, it is important for mediators to be able to identify the right tools and know how to use them appropriately.
It is important for mediators to be able to identify the right tools and know how to use them appropriately. USIP's project aims to provide practitioners with a handbook that would enable them to design and implement effective mediation strategies that fully recognize and incorporate economic levers to help resolve conflict and promote peace.
View event details, audio, and other resources for Economic Dimensions of Peace Negotiation
Manual on Macroeconomic Stabilization in Conflict Affected States
Increasingly, peace agreements and economic development programs reference the centrality of sound economic policy and a stable macroeconomic framework in state-building efforts. But few practitioners have the background to know what this means and to understand the relationship between their areas of responsibility and the policies needed to attain macroeconomic stability. Even fewer feel able to contribute meaningfully to designing and implementing strategies to attain and maintain this fundamental end state. This manual aims to serves as an introductory guide to and reference document on macroeconomics. It is intended for noneconomists who may be involved in peace negotiations and would benefit from a clearer understanding of the underlying macroeconomic issues.

