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Aid, Conditionality, and War Economies

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  • 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.

Suggested Citation

  • James K. Boyce, 2004. "Aid, Conditionality, and War Economies," UMASS Amherst Economics Working Papers 2004-05, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2004-05
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    References listed on IDEAS

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    5. International Monetary Fund, 1999. "Angola: Statistical Annex," IMF Staff Country Reports 1999/025, International Monetary Fund.
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    2. Mroß, Karina, 2015. "The fragile road towards peace and democracy: insights on the effectiveness of international support to post-conflict Burundi," IDOS Discussion Papers 3/2015, German Institute of Development and Sustainability (IDOS).

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    Keywords

    war; natural resources; foreign aid; conditionality;
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