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1. Post-Conflict Recovery: Does the Global Economy Work for Peace?

Author:
Tony Addison
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Countries as diverse as Afghanistan, Angola, and Sierra Leone are now attempting to recover from major wars, often amidst continuing insecurity. The challenge is to achieve a broad-based recovery that benefits the majority of people. The economic and social recovery of conflict-affected countries cannot be separated from their interaction with the rest of the world through flows of finance, goods, and people. Unfortunately, the global economy is not working well for peace. Trade reform, in particular, must take account of the need to create better, and non-violent, livelihoods for the world's poor: rich-country protectionism in agriculture hinders broad-based recovery and thereby harms the new international security agenda. Post-conflict economies also need more external finance to support early institutional development and reform, thereby increasing the effectiveness of longer-term aid inflows.
Topic:
Conflict Resolution, Economics, and Globalization
Political Geography:
Afghanistan, Middle East, Sierra Leone, and Angola

2. Africa's Recovery from Conflict: Making Peace Work for the Poor

Author:
Tony Addison
Publication Date:
03-2003
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
The period 1990-2000 saw 19 major armed-conflicts in Africa, ranging from civil wars to the 1998-2000 war between Eritrea and Ethiopia. Peace has been elusive, and the term 'post-conflict' is often a sad misnomer.
Topic:
Conflict Resolution, Economics, and Poverty
Political Geography:
Africa, Ethiopia, and Eritrea

3. By How Much Does Conflict Reduce Financial Development?

Author:
S. Mansoob Murshed, Tony Addison, and Abdur R. Chowdhury
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Financial development is vulnerable to social conflict. Conflict reduces the demand for domestic currency as a medium of exchange and a store of value. Conflict also leads to poor quality governance, including weak regulation of the financial system, thereby undermining the sustainability of financial institutions. Conflict therefore reduces the social return to financial liberalization and other financial-sector reforms. This paper presents a theoretical model integrating the effects of conflict and financial liberalization, and then tests the model on data for 79 countries. Using an explanatory variable that measures the intensity of conflict (from low to high) the results show that conflict significantly reduces financial development, and that this negative effect increases as conflict intensifies. The paper concludes that conflict reduction is essential if financial reform is to have its full benefit for development.
Topic:
Conflict Resolution, Development, Government, and Political Economy