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Aid, policy and growth in post-conflict countries (English)

This Note analyzes the role of aid in the economic recovery of countries emerging from a violent conflict. Empirical evidence suggests that post-conflict situations should be treated as specific cases with special characteristics. Moreover the impact of aid on growth seems much more effective than in other situations. Two general patterns have emerged from this analysis. First, we find that aid is considerably more effective in augmenting growth in post-conflict situations than in other situations. For "poverty efficiency," aid volumes should be approximately double those in other situations. The pattern of aid disbursements should probably gradually rise during the first four years, and gradually taper back to normal levels by the end of the first post-conflict decade. Actual aid practice has not, historically, followed this pattern. Second, we find that among policies the key priorities for improvement, relative to an otherwise similar society without a history of recent conflict, should be social policies first, sectoral policies second, broadly with the same priority as in other contexts, and macro policies last. Again, actual improvements in policies during the first decade of peace do not appear to reflect these priorities: all policies other than governance appear to improve more or less in tandem.

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Citation

Collier,Paul

Aid, policy and growth in post-conflict countries (English). Conflict Prevention and Reconstruction Unit series Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/640191468763761909/Aid-policy-and-growth-in-post-conflict-countries