Economic Reconstruction Amidst Conflict: Insights from Afghanistan and Iraq

Abstract

Economic reconstruction typically takes place after the end of war. Yet recently, economic reconstruction has been viewed as a means to ‘win hearts and minds’ during ongoing conflict. Drawing on a variety of reconstruction experiences from Afghanistan and Iraq, we identify four ‘reconstruction traps’ that result from the incentives and constraints faced by actors involved in economic reconstruction during ongoing conflict. These traps include: (1) the credible commitment trap, (2) the knowledge trap, (3) the political economy trap, and (4) the bureaucracy trap. Avoiding these traps is critical for successful economic reconstruction and we discuss strategies for doing so.

Keywords: economic reconstruction, credible commitment, knowledge, political economy, bureaucracy, post-conflict reconstruction

JEL Classification: D03, D73, D74, P41