Economic and environmental crises such as poverty and famine are often blamed for driving conflict, but the relationship is complicated. The U.S. Institute of Peace works to better understand the connections between violence, economics and the environment. The Institute then uses these insights to identify effective peacebuilding interventions that prevent or end violence during an economic or environmental crisis.
In Afghanistan, where corruption and ineffective government have hampered efforts to build a functioning state, the Ministry of Finance has been a standout performer. Competently run since as early as 2002, the ministry collects substantial revenue, manages aid inflows, pays public employees, funds key public services and has won the confidence of donors. Now, all that is threatened. The Afghan government is eviscerating the ministry—carving out key constituent parts, putting them directly under the presidential palace, and gravely weakening one of the country’s most effective institutions. It’s a move that’s bad for Afghanistan’s governance and financial viability. It will harm the country’s development and jeopardizes the sustainability of peace if an agreement is reached with the Taliban.
A critical ingredient for the current efforts to bring stability and peace in Afghanistan is the Afghan state’s ability to pay for more of its own operations. Despite optimistic new reports from the Afghan government, its actual revenues stagnated last year. With international donors still funding around half of Afghan government expenses, urgent improvements are needed in the way the government collects and measures its revenues. These changes are vital to persuade donors to sustain funding when their current assistance pledges expire in just 10 months—and to help strengthen the government in prospective negotiations with the Taliban.
Coffee production is a fairly small part of the Central African Republic's economy, but it plays an outsize role in the country's ongoing conflict. Armed militia groups that hold sway over the country's main coffee growing regions and trade routes reap millions of dollars in funding to sustain their operations. This report discusses how understanding the political economy of conflict in the Central African Republic can help national and international stakeholders break the cycle of violence.
The U.S. Institute of Peace supports programs and research that contribute to the mission of promoting enduring peace in South Asia. The institute provides analysis, capacity development and resources to individuals and institutions working to prevent, mitigate, and resolve violent conflict. In Pakistan, USIP awards funding in three categories, ranging from projects that test new, experimental ideas to supporting local and international organizations on policy relevant research.