salvaging development: post-war reconstruction and adjustments to globalization

1. Salvaging Development: Post-War Reconstruction and Adjustments to Globalization� Francesco Strazzari and Reinoud Leenders � University of Amsterdam

3. Collier-Hoeffler Model for Civil War Onset Not political social grievance per se leads to civil war, but, rather, for given levels of grievance, it is the opportunity to organize and finance a rebellion that determines if a civil war will occur or not. The determinants of such opportunity are mainly economic [greed].

4. World Bank in post-war reconstruction Post-Conflict Fund, 1998 International donor trust funds including Afghanistan, Kosovo, East Timor, Palestine, Iraq.

5. Main Arguments The WB�s interest and specialization in the economics of war and post-war reconstruction �and indeed the interest in general by aid practitioners�closely relate to the general demise of �development� �both as a sub-disciplinary study and a policy apparatus�since the 1990s. The WB�s interest in post-war reconstruction can be seen as an attempt at revival or reform of �development� and the external policy interventions prompted by it. The WB leaves intact the very flaws of �development� that underlie this notion�s intellectual bankruptcy and lack of credibility as an effective policy tool: Development is reinvented � not reconsidered.

6. Moral and Strategic Imperatives �..the international community has the moral right and the practical duty to intervene to prevent and shorten conflicts.� - Breaking the Conflict Trap�

7. The CH-model on Globalization & Civil War Countries at higher risk of civil war are the least globalized as measured in terms of these countries� openness to foreign trade and FDI. As globalization �again measured in terms of foreign trade and FDI�is viewed as fostering economic growth, a strong correlation between economic growth and political stability rules that, indirectly, globalization counters civil wars. It follows that policy should encourage globalization as preventive and a remedy to civil war.

8. Post-War Reconstruction: Repeating Development�s Flaws Spurious precision on the meaning of �globalization�: formal versus informal economies

9. Post-War Reconstruction: Repeating Development�s Flaws: A-historical, de-contextualized

10. Post-War Reconstruction: Repeating Development�s Flaws: A-historical, de-contextualized Global opportunities, not causes: International management and regulation financial markets. Curbing illegal trade in drugs, arms and natural resources. Cushioning international financial and economic volatility

11. Development, Aid & Conflict Aid can reinforce, exacerbate and prolong conflict because when international assistance is given in the context of a violent conflict, it becomes a part of that context and thus also of the conflict. (Anderson, Do No Harm. How Aid Can Support Peace �or War, 1999) �Development� aid industry in pre-1994 Rwanda contributed to violence by bolstering patterns of exclusion (material and racism, oppression) and state actors benefiting from them without for a single moment reconsidering its own role to this effect. (Peter Uvin, Aiding Violence: the Development Enterprise in Rwanda, 2000) IFI�s own policies may have contributed to civil wars: e.g. Sierra Leone, Serbia and Rwanda: SAP and macro-economic stability policies, privatization & fiscal austerity, education and health sector reform, financial shock 1998 Asian Crisis. Capitalist development: �creative destruction� & greed