On the rebound from war: towards pro-poor peace in Africa

After conflict has shattered the capital of the poor, what must be done to ensure that reconstruction benefits the majority? How can economic policy contribute to building peace? Can commercial alliances of state and private actors be prevented from working against broad-based recovery?

A report from the UNU World Institute for Development Economics Research (UNU/WIDER) takes a critical look at post-conflict recovery in Angola, Eritrea, Ethiopia, Guinea-Bissau and Mozambique. Warning that the ending of conflicts has not necessarily delivered secure livelihoods, it argues that recovery depends on strong private sector investment and an equal playing field. The donor community needs to move beyond its current, narrow reconstruction/humanitarian-oriented approach.

The report argues that recovery needs strong and sustained private investment, both foreign and domestic. The state must encourage private investment by providing macroeconomic stability and reforming the legal framework so that property rights are respected. Public investment can do much to encourage private investment. Better telecommunications and road infrastructure for remote areas can make them more attractive to potential investors and strengthen livelihoods. When bad policies have inflamed grievances and fuelled conflict, their reform will increase the chances of a peace deal taking hold.

Other key points made by the study include:

• Unless the state has disintegrated completely, there is potential to manage the wartime economy to contain the inevitable rise in poverty.
• Angola’s Empresários de confiança (‘the few trusted enterprises’) offers a prime example of how commercial partnerships of state and private actors can work against broad-based recovery.
• While privatisation is often essential, it can readily degenerate into asset transfers to elites.
• Despite the virtues of democratic transition, multi-party politics can descend into ‘money politics’ that undermines the protection of the public interest (regulatory capture) and the rights of the poor.
• Rebuilding rural infrastructure has low returns if policy continues to discriminate against smallholders.
• Eritrea offers evidence that formal legal equality for women is ineffective without addressing discrimination in land and labour markets and the lack of human capital, which makes it difficult for women to reap any benefits from reconstruction.

All too often, post-conflict reconstruction is seen simply as a matter of rebuilding damaged infrastructure. It is not appreciated that communities cannot prosper unless private investment recreates markets and generates jobs. Peace will never be sustained and poverty not reduced without transforming the institutions and policies which favour one group over another. Transformation, rather than reconstruction, must be the watchword for broad-based recovery.

The report also argues:

• Absolute poverty reduction may not be enough – societies may want to see overall inequality reduced as well.
• It is essential to defend the access of the poor to natural capital.
• The fiscal-deficit target must be consistent with pro-poor spending – a task made easier when aid is generous and early action is taken on revenue reform.
• Resolute international action against war criminals and the arms trade is required to support progressive national actors.
• There is a need to be vigilant against the risk that those who profit from war may be willing to tear up any peace deal and return to war when political and economic reforms threaten their interests.

Source(s):
‘Africa’s recovery from conflict: making peace work for the poor’, UNU World Institute for Development Economics Research (UNU/WIDER), by Tony Addison, March 2003 Full document.
‘From conflict to recovery in Africa’, Oxford University Press, edited by Tony Addison, February 2003 Full document.
‘Explaining Violent Conflict: Going Beyond Greed Versus Grievance’, Journal of International Development, Vol.15 No.4, 2003 Full document.

Funded by: Directorate General for Development Cooperation, Italy, Swedish International Development Cooperation Agency and DFID

id21 Research Highlight: 9 September 2003

Further Information:
Tony Addison
UNU World Institute for Development Economics Research (UNU/WIDER)
Katajanokanlaituri 6 B
00160 Helsinki
Finland

Tel: +358 9 6159 9214
Fax: +358 9 6159 9333
Contact the contributor: addison@wider.unu.edu

UNU World Institute for Development Economics Research (UNU/WIDER)

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