Abstract
The experience and lessons of the last two decades have shown that
ignoring the key differences between the economics of peace and the
economics of development has been a major reason why countries relapse
into conflict. This paper briefly analyses such differences and their
important implications for effective policymaking in war-torn countries,
and against this background, it makes recommendations for the creation
of reconstruction zones in Liberia. Reconstruction zones would have
two distinct but linked areas to ensure synergies between them—an
export-oriented reconstruction zone, consisting of any existing agricultural
or mining foreign concession, and a local production reconstruction
zone focusing on rural development, that would produce agricultural
goods, food, light manufacturing and services for the domestic market,
including for the concessions. The purposes of reconstruction zones
are as follows. First, to create links between the concessions, operating
as enclaves, and the domestic economy, particularly with the rural
communities in their vicinity that have often been displaced or their
livelihoods threatened by them. Second, to focus on rural development
to improve food security and decrease dependence on imports. Third,
to support business development through the creation of a level playing
field in infrastructure and credit for micro and small enterprises,
including small farmers. Fourth, to move away from the fragmented
aid and investment strategies of the past, to a more integrated and
effective aid strategy. Last but not least, to achieve more inclusive
growth that could help to consolidate peace and avoid that Liberia
relapses into conflict.
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