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Research Report

FINANCING MECHANISMS FOR POST-CONFLICT RECONSTRUCTION

Nicole Ball
Copyright Date: Oct. 1, 2007
Published by: Clingendael Institute
Pages: 30
OPEN ACCESS
https://www.jstor.org/stable/resrep05454

Table of Contents

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  1. (pp. None)
  2. (pp. i-ii)
  3. (pp. 1-1)

    1. The Minister for Development Cooperation of the Netherlands, Minister Koenders, has requested a strategy paper presenting an overview of different mechanisms available for the financing of post conflict reconstruction, and assessing the pros and cons of these different mechanisms as well as their (possible) complementarities. This report is based on a desk study (document review plus telephone and email interviews) that was conducted over a short time period and should be seen as the first step in a process of determining which financing mechanism the Netherlands should employ in postconflict recovery efforts.

    2. The report begins by examining the strengths and...

  4. (pp. 2-14)

    3. It is widely understood that the path from violent conflict to sustained recovery is neither easy nor straight. There are numerous needs that have to be addressed in the course of recovery but the prioritization of needs and the sequencing of activities to address them varies from country to country and, at time, even from region to region within the same country. In order to most effectively and efficiently meet these different needs, bilateral donors such as the Netherlands make use of a variety of funding mechanisms. These mechanisms can be classified under four headings:

    Direct execution, by own staff...

  5. (pp. 15-20)

    25. Funding mechanisms do not operate in a vacuum. Their ability to promote post-conflict recovery depends in large part on their suitability to the conditions in which they are developed and implemented. While many of the conditions in post-conflict countries are not amenable to external influence, some are. In particular, bilateral donors such as the Netherlands have the ability to influence the environment in the following ways:

    Donors should base their decisions on which mechanisms to use to finance recovery on what they want to achieve. This requires a clear strategy that has the flexibility to evolve over time. To increase...