Financing Peace

After more than a decade of experience and research on financing arrangements in post conflict countries and fragile states, a consensus has emerged on at least one matter. The core objective is to build effective and legitimate governance structures that secure public confidence through provision of personal security, equal justice and the rule of law, economic well-being, and essential social services including education and health. These governance structures are necessary to ensure that countries do not turn, or turn back, to violence as a means of negotiating state-societal relations. This paper discusses a number of the weaknesses in current financing arrangements for post conflict countries and fragile states, with a focus on Official Development Assistance (ODA). We argue that tensions persist between business-as-usual development policies on the one hand and policies responsive to the demands of peace building on the other. The preferential allocation of aid to 'good performers,' in the name of maximizing its payoff in terms of economic growth, militates against aid to fragile and conflict-affected states. If the aim of aid is redefined to include durable peace, the conventional performance criteria for aid allocation lose much of their force. Compelling arguments can be made for assistance to 'poor performers' if this can help to prevent conflict. Yet the difficulties that initially prompted donors to become more selective in aid allocation remain all too real. Experience has shown that aid can exacerbate problems rather than solving them.

Bibliographic Details

Main Authors:	Boyce, James K., Forman, Shepard
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2010-10-06
Subjects:	ACCOUNTABILITY, ACCOUNTABILITY MECHANISMS, ACCOUNTING, ADMINISTRATIVE CAPACITIES, ADMINISTRATIVE CAPACITY, AID FLOWS, AMBASSADOR, ARBITRATION, ARREARS, AUTHORITY, BANK POLICY, BATTLE, BILATERAL AID, BUDGET ALLOCATION, BUDGET EXPENDITURES, CAPACITY BUILDING, CITIZENS, CIVIL SOCIETY, CIVIL SOCIETY ORGANIZATIONS, CIVIL WAR, CIVIL WARS, CONDITIONALITY, CONFLICT, CONFLICT PREVENTION, CONFLICTS, CONSENSUS, CONSTITUENCIES, COORDINATION FAILURES, CORRUPTION, COUNTERPARTS, CREDIBILITY, CREDITOR, CREDITORS, CRISES, DEATHS, DEBT BURDENS, DEBT RELIEF, DEBT SERVICE, DEBT-SERVICE, DEBTS, DECISION-MAKING, DEMOBILIZATION, DEMOCRACY, DEMOCRATIC GOVERNANCE, DEMOCRATIC INSTITUTIONS, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DISARMAMENT, DISBURSEMENT, DISBURSEMENTS, DOMESTIC REVENUE, DONOR AGENCIES, DONOR COUNTRIES, DURABLE, ECONOMIC AID, ECONOMIC ASSISTANCE, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC LIBERALIZATION, ECONOMIC POLICIES, ELECTIONS, EMPLOYMENT GENERATION, EQUIPMENT, EX-COMBATANTS, EXPENDITURE, EXPENDITURE MANAGEMENT, EXPENDITURES, EXTERNAL ASSETS, EXTERNAL BORROWING, EXTERNAL DEBT, FIDUCIARY RESPONSIBILITY, FINANCIAL ANALYSIS, FINANCIAL FLOWS, FINANCIAL RESOURCES, FINANCIAL SUPPORT, FINANCING ARRANGEMENTS, FISCAL CAPACITIES, FISCAL CAPACITY, FISCAL SUSTAINABILITY, FOREIGN AID, FOREIGN INVESTMENT, FOREIGN POLICY, FOREIGN RELATIONS, FOUNDATIONS, GOOD GOVERNANCE, GOVERNMENT BUDGET, GOVERNMENT BUDGETS, GOVERNMENT CAPACITY, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT FINANCE, GOVERNMENT FINANCES, GOVERNMENT OFFICIALS, GOVERNMENT PERFORMANCE, GOVERNMENT RESOURCES, GOVERNMENT RESPONSIBILITIES, GOVERNMENT REVENUE, GOVERNMENT SPENDING, HOST ECONOMY, HUMAN RESOURCES, HUMAN RIGHTS, HUMAN SECURITY, HUMANITARIAN ASSISTANCE, IBRD, IMF, INCOME FLOWS, INSTITUTIONAL CAPACITY, INSTRUMENT, INSURGENCY, INTERGOVERNMENTAL ORGANIZATIONS, INTERNATIONAL ARBITRATION, INTERNATIONAL ASSISTANCE, INTERNATIONAL COMMUNITY, INTERNATIONAL COOPERATION, INTERNATIONAL DEVELOPMENT, INTERNATIONAL DONORS, INTERNATIONAL FINANCE, INTERNATIONAL STUDIES, INVENTORY, INVESTING, JUSTICE SYSTEM, LEGAL SYSTEM, LEGITIMACY, LOAN, LOCAL ECONOMIES, MEETING, MILITARY BUDGETS, MILITARY EXPENDITURE, MILITARY EXPENDITURES, MILITARY OPERATIONS, MODALITIES, MODALITY, MONETARY FUND, MULTILATERAL AID, NATIONAL BUDGETS, NATIONAL GOVERNMENTS, NATIONAL RESOURCES, NATIONS, NEEDS ASSESSMENT, OBSERVER, OBSERVERS, ODIOUS DEBT, OPPORTUNITY COST, PAPER FINANCING, PAYMENT OF DEBT, PEACE, PEACE AGREEMENTS, PEACE KEEPING, PEACE KEEPING OPERATIONS, PEACE RESEARCH, PEACEBUILDING, PEACEKEEPERS, PERFORMANCE CRITERIA, PERVERSE EFFECTS, PHYSICAL SECURITY, PLEDGES, POLARIZATION, POLICE, POLITICAL ECONOMY, POLITICAL INSTITUTIONS, POLITICAL STABILITY, POSTWAR RECONSTRUCTION, POVERTY REDUCTION, PRESCRIPTIONS, PROCUREMENT OF GOODS, PROGRAMS, PROJECT APPRAISAL, PUBLIC ACTION, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC FINANCE, PUBLIC GOODS, PUBLIC HEALTH, PUBLIC HEALTH EXPENDITURE, PUBLIC HEALTH EXPENDITURES, PUBLIC SECTOR, RECIPIENT COUNTRIES, RECONCILIATION, RECONSTRUCTION, REGIONAL CONFLICT, REGIONAL ORGANIZATIONS, RENT-SEEKING BEHAVIOR, RESOURCE ALLOCATION, RESOURCE ALLOCATIONS, RESOURCE CURSE, RESOURCE MOBILIZATION, RETURN, REVENUE COLLECTION, ROADS, RULE OF LAW, SECTORAL ALLOCATION, SERVICE DELIVERY, SOCIAL INFRASTRUCTURE, SOCIAL MITIGATION, SOCIAL SERVICE, SOCIAL SERVICES, STRATEGIC PLANNING, TARIFF REVENUE, TAX, TAX ADMINISTRATION, TAX BASE, TAX COLLECTION, TAX COMPLIANCE, TAX EVASION, TAX POLICY, TAX REFORM, TAX REVENUE, TAX REVENUES, TAX SYSTEMS, TAXATION, TRADE LIBERALIZATION, TRANSACTION, TRANSACTION COSTS, TRANSPARENCY, TRUST FUND, TRUST FUNDS, UNDP, VIOLENCE, VIOLENT CONFLICT, WAR, WORLD DEVELOPMENT,
Online Access:	http://documents.worldbank.org/curated/en/394261468182670144/Financing-peace-international-and-national-resources-for-Post-conflict-countries-and-fragile-states https://hdl.handle.net/10986/27514
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