Promoting Inclusive Growth After Conflict
A UN peacekeeping patrol drives through the eastern Congolese city of Goma, July 23, 2012 (James Akena/Courtesy Reuters).
In the aftermath of war securing economic stability and reviving institutions are among the first priorities. As a CFR Working Paper I wrote last year noted, “negative economic shocks of just 5 percent can increase the risk of a civil war by as much as 50 percent in fragile environments. Additionally, donor assistance, which can account for 20 percent to as much as 97 percent of a country’s GDP, is unsustainable in the long term. Building local business capacity and supporting homegrown entrepreneurs can help curb this risk.” The private sector plays a pivotal role as a “stabilizing force.”



