A Rational Choice Approach
Chapter 6: Post-War Economic Reconstruction
6. 6.1 Post-war economic reconstruction INTRODUCTION The previous chapter was concerned with political institutions that foster lasting peace. In order to sustain peace, however, it is simply not sufficient to devise political mechanisms, be they power sharing arrangements or more long-term constitutional instruments, without ensuring that economic growth also ensues in the post-war period. In other words, securing lives without guaranteeing livelihoods will, like faith without charity, come to nothing. Political restructuring is meaningless without economic reconstruction. Nowadays, most civil wars take place in poor low-income economies; it is also widely accepted that growth failure, economic vulnerability and endemic poverty enhance conflict risk, as discussed in chapters 2 and 3. Reintegrating ex-combatants through successful demobilization policies, known as disarmament, demobilization and reintegration (DDR) also requires economic recovery (see Humphreys and Weinstein, 2007). Successful, sustained and broad based economic growth has also come to be regarded as the ultimate antidote to conflict. The previous chapter on refashioning the social contract touched upon economic dimensions of the contract. These included fair division and a degree of fiscal decentralization; aims that cannot be realized without economic reconstruction and an expanding economic pie. For all these reasons, the policy maker in a post-conflict or post-accord situation must be concerned with rebuilding the economy.1 This objective has three dimensions, which need to be addressed simultaneously. There is, first of all, a reconstruction phase where it is necessary to rebuild not just damaged physical infrastructure, but also the framework within which economic policy is conducted, including...
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