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Building New States: Lessons from Eritrea

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  • Göte Hansson

Abstract

With the Derg's overthrow in 1991, Eritrea embarked on the construction of a new state. New economic institutions were created, and considerable reform undertaken. Problems in co-ordinating reform and reconstruction were largely avoided, mainly because of the institutional 'clean slate' facing the country at independence and the high level of social solidarity and other social capital that characterize the country. A well-defined economic strategy, and careful use of aid, promised higher returns to investment (and fewer unsustainable projects) than found elsewhere in SSA.

Suggested Citation

  • Göte Hansson, 2001. "Building New States: Lessons from Eritrea," WIDER Working Paper Series DP2001-66, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-66
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2001-66.pdf
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    Cited by:

    1. Tony Addison & Léonce Ndikumana, 2001. "Overcoming the Fiscal Crisis of the African State," WIDER Working Paper Series DP2001-12, World Institute for Development Economic Research (UNU-WIDER).
    2. Prathivadi Bhayankaram Anand, 2005. "Getting Infrastructure Priorities Right in Post-Conflict Reconstruction," WIDER Working Paper Series RP2005-42, World Institute for Development Economic Research (UNU-WIDER).
    3. Tony Addison & Alemayehu Geda & Philippe Le Billon & S Mansoob Murshed, 2005. "Reconstructing and Reforming the Financial System in Conflict and 'Post-Conflict' Economies," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 703-718.
    4. Yemane Desta, 2006. "Designing Anti-Corruption Strategies for Developing Countries," Journal of Developing Societies, , vol. 22(4), pages 421-449, December.

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