IDEAS home Printed from
   My bibliography  Save this paper

Enhancing the Private Sector Contribution to Post-War Recovery in Poor Countries


  • Tilman Bruck, Valpy FitzGerald, Arturo Grigsby


This paper analyses the duration and nature of post-war reconstruction in aid-dependent developing countries. Part I presents a comparative analysis, Part II discusses the post-war reconstruction in Nicaragua, and Part III analyses the case of Mozambique. The main findings are that post-war reconstruction, defined as obtaining external and internal balance and high per capita growth, is surprisingly difficult to obtain even under favourable political and economic conditions. The legacy of war is a key constraint on post-war growth, especially through the damaged commercial network, the loss of trust, and the weakening of market institutions. In addition, political uncertainty in the post-war period inhibits private sector investment and significantly reduces the peace dividend. This is worsened by inappropriate stabilisation policies. Aid policies should be modified for war and post-war economies to accelerate the reduction in foreign debt and to support small scale private producers, including those in the countryside. Military spending does not fall and social spending does not rise as quickly as is generally expected thus delaying a noticeable reduction in poverty. The clear sequencing but gradual implementation of government reforms, especially in the social sectors, is important in maintaining entitlements. Key victims of war, and especially of internal war, are civil and economic institutions. Their importance in post-war reconstruction has been underestimated and they should receive priority funding by donors and governments to accelerate post-war growth and poverty reduction.

Suggested Citation

  • Tilman Bruck, Valpy FitzGerald, Arturo Grigsby, "undated". "Enhancing the Private Sector Contribution to Post-War Recovery in Poor Countries," QEH Working Papers qehwps45, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:qehwps:qehwps45

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Tilman Bruck, "undated". "Determinants of Rural Poverty in Post-War Mozambique: Evidence from a Household Survey and Implications for Government and Donor Policy," QEH Working Papers qehwps67, Queen Elizabeth House, University of Oxford.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qeh:qehwps:qehwps45. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IT Support). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.