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Aid, Conditionality, and War Economies

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Author Info
James K. Boyce (University of Massachusetts Amherst)
Abstract

When natural resource revenues provide an important motive and/or means for armed conflict, the transition from war peace faces three challenges: (i) ensuring that the benefits and costs of natural resource exploitation are distributed so as to ease rather than exacerbate social tensions; (ii) channeling revenues to peaceful and productive purposes; and (iii) promoting accountability and transparency in natural resource management. Aid conditionality can help to address these challenges provided that three prerequisites are met: (i) there are domestic parties with sufficient authority and legitimacy to strike and implement aid-for-peace bargains; (ii) donor governments and agencies make peace their top priority, putting this ahead of other geopolitical, commercial, and institutional goals; and (iii) the aid 'carrot' is substantial enough to provide an incentive for pro-peace policies. Case studies of Cambodia, Angola, and Afghanistan illustrate both the scope and limitations of peace conditionality in such settings.

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Paper provided by University of Massachusetts Amherst, Department of Economics in its series Working Papers with number 2004-05.

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Date of creation: 2004
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Handle: RePEc:ums:papers:2004-05

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Keywords: war; natural resources; foreign aid; conditionality;

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References listed on IDEAS
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  1. Stephanie Blankenburg & Clive Lawson & Tony Lawson & Paul Lewis & Stephen Pratten & Jochen Runde, 2002. "Introduction," Cambridge Journal of Economics, Oxford University Press, vol. 26(6), pages 679-681, November.
  2. Rubin, Barnett R., 2000. "The Political Economy of War and Peace in Afghanistan," World Development, Elsevier, vol. 28(10), pages 1789-1803, October. [Downloadable!] (restricted)
  3. Gilbert, Christopher & Powell, Andrew & Vines, David, 1999. "Positioning the World Bank," Economic Journal, Royal Economic Society, vol. 109(459), pages F598-633, November. [Downloadable!] (restricted)
  4. Khattry, Barsha & Mohan Rao, J., 2002. "Fiscal Faux Pas?: An Analysis of the Revenue Implications of Trade Liberalization," World Development, Elsevier, vol. 30(8), pages 1431-1444, August. [Downloadable!] (restricted)
  5. J.H.H. Weiler, 2002. "Introduction," Journal of Common Market Studies, Blackwell Publishing, vol. 40(4), pages 555-562, November. [Downloadable!] (restricted)
  6. Léonce Ndikumana & James Boyce, 2002. "Africa’s Debt: Who Owes Whom?," Working Papers wp48, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
  7. Kisangani Emizet & Léonce Ndikumana, 2003. "The Economics of Civil War: The Case of the Democratic Republic of Congo," Working Papers wp63, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
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