ifi-investment climate reform in conflict affected countries

8/14/2019 IFI-Investment Climate Reform in Conflict Affected Countries

1/122

A Rough guideto investment ClimAte RefoRm in ConfliCt-

AffeCted CountRies


2/122

Photos on pages 10, 76, 108, are courtesy of the Department of Defense on-line

photo library.

Photos on the cover and pages 8, 20, 23, 42, 51, 58, 60, 72, 74, 81, 94, 96,

102, 105, and back cover are courtesy of the United Nations on-line photo library.

Photos on pages 31, 34 is courtesy of the United Nations Environmental Program.

Photos on pages 4, 12, 16, 18, 36, 38, 44, 49, 67, 87, 91, 100, are courtesy of

the World Bank on-line photo library.

Photos on pages 7, 9, 57, 62, 78, 89, are courtesy of Laurent Corthay.

Photo on page 2 is courtesy of Robert Krech.


3/122

A Rough Guide to Investment

Climate Reorm in

Conict-Aected Countries


4/122


5/122

c

e sa ......................................................... 4

Wa ep t g .................................... 12

Wa d i caPj ta a? ...................................................... 18

g Pp caazi ca r ............................................ 34

i ca da ...................................... 44

Pa i ca r ........................ 62

ip i ca ................................... 74

m a eaa ica r ............................................................. 96

ck a tp ....................................................... 102

r .................................................................. 110


6/122


7/122

Most conicts have a strong economicor commercial dimension and are driven by rational

decisions or legal or illegal proft.


8/122

W

Wa d i ca Pj ta a

c-A c?

m a a a

a a b aa a a pf

c a w-a a pa pp,

a, , ak, a w

p pa p

Jb a a a pa; a

a b

i a a a a-b;

a a b

a a apa, , pa, a

a k a.

Executive Summary


9/122

g pp aaz a

t a bp -a

K p a a, aaa ,

a, a p

b a a a a a a a

c a a pp a pj

i a a

ta aa a b apa b

aa pa a pw a a .


10/122

c-a aw a

b aa a b .

Pa a aa a a w a wa

pw a , a w w.

g aa w a a, pa

a, a .

Pj a a a aa, a

aa.

Pa a

ta a a -a , a

pj b a a b a.

sa a f a b a pa

a a.

s ppa a a w-b b a f

a w pa a pj.

rpa k a b a a.

ip a

rap ak p pa aa; a

a a a a .

c apa -a p w

, a a ak.

maa pa pa a pj; -a

a p pj a.

e b a , a a a

ap.

i a ak a pp ap

p a.


11/122


12/122

W a a b pw ak p

a .

t apa a b a, a, pp a

; a a pak w a

a . Qk pp a ap w-p p b

.

e appaa paa a b pa a; a

a a a p.

m- pa a b pa a a p; b a p- a.

ca f a a p .

i pa -a , a pa

a--a a a a

w aa.

ca a b p; -a

bw w a a f

a a aa a wk, a

bw a a a .

sbak a a a a a pb, a wk b a

w p a a p .


13/122

m a aa a

-a

t aa b, , a k wk a

a a w aa aa apa, ak

f a pa.

g pa ba a pj p, aa

b a a ; a a

a , a aa b q

a .

t aa aa w pj a;

a w w a a b .

A f a a b, b a a w

a b pa.


14/122


15/122

Given the highly volatile, ragmented nature oconict-aected country situations, a lot o inormation on

specifc people, decisions, and relationships can only be

acquired once you are on the ground.


16/122

T

t p pj a a

a -a ,

pa, p, a aa pj. i invest-

ment climate aw, p, a, a

p a p a a, baa

f, a p.

W a a -a

p a. A ab

, a a b a f. v a

a a a ab a p pa.

i violent conict az a waa

a a, ap, a a a b

(b 1). t wa ba f q a appa

a a paa, b, a a

a .

1 What to Expect rom This Guide


17/122

t pa

a a pp:

a bp ,

a a

q p. t p

a a,

z w

a ic (a sa

l), a ap

. B a

ap a

a b j-

aap a app

. t a

p a a a a ba ,

pf a pa a af appab.

Box 1 Defnitions o conict

There is no agreed defnition o armed conict in inter-

national law, but a longstanding defnition o it within

academia has been developed and used by Uppsala

Universitys Uppsala Conict Data Program and the In-

ternational Institute o Peace Research. This defnition

was developed to support the creation o a databaseo armed conicts worldwide since 1946 (with 1989 to

the present covered in great detail). It defnes armed

conict (war) as a contested incompatibility involving

government, territory, or both where the use o armed

orce between two partiesat least one o which is the

government o a stateresults in at least a thousand

battle-related deaths in one calendar year.

Source: http://www.pcr.uu.se/research/UCDP/data_and_publications/ defnitions_all.htm


18/122

Wa a wa k. ia a

a b a ba pj aa, pj a

a awk p b ,

ap, a aaw p p a-

f b . spaa aa b p pf

aa a a w p , a

p pa z -a a a

apa a p a.

t a p u.s. A iaa dp

(usAid) Guide to Economic Growth in Post-Conict Countries (s 2007).

ic a bf a pap w usAid p

. ma a w a usAid a ic wkp,

a a b a w a b a.

t p p a a k a

, ap, a pj . t a a

a 40 w w ic a W Bak a, a ic a

a w wk , a sa l w b ic

a ab a pj wk -a . t

a bf p aba bw ic a d

ga t Zaab (gtZ) - pa

p.

t az a a pa pj , w

. w , p a w k

a a a -a

a wa pj a a. t az

pp aaz a pj -a

. t p a a a-

, pa, pa, a aa a a pj.

t w a b aaab , w k a

ba, a a w, a w a

p, a, pa aa, w, aa, a


19/122

pp a a w w pa a b

a wk.

Akw

t r g i ca r c-A c

wa w b a a a b rb K. A b pp a b-

w : Wa ca (u sa A

iaa dp), ta ha, J naa, a ca sa

(iaa a cpa).

o a a w, a a ak

: ma Ab, Awa Aaaba, ma A, Ja Bk, a

ca, la c, Paa dapa, na d, Bja hzb,

ta Jab, K K, Ja lpk, saa mab, ma,

ca ma, ha m, mak mak, Aa m, J na,

K-W o, ma P Pka, tak sa, ra s, Kas, ma ta, i tj, n tw, ra va, a

g Wa.

t a bf p p w ra

Ba, s ha, a Ja s (u sa A iaa

dp), tk aa (ia dp Bak), ra gp

(u sa i Pa), Bja hzb (iaa a

cpa), a P m (W Bak).


20/122


21/122

It takes time to get the market to sort things out, andthe market in post-conict countries is usually distorted. A

lot o actors in the market have distortionary powers that

may be related to the number o machine guns that they

have stored somewhere.

Interview with IFC Sta


22/122

2

W

Wa a -a , a wa

a ?

A -a a p pa

10 a, p , a k .1

c a a wa a ak -

bak k (c 2007). e a

-a a a

p, a a p a a k

(d ca 2008; c, h, a r 2006;

g 2000).

s c Wa www

a pa , , , a,

1 t f a -a a a . tW Bak gp f paaap.

What do investment climateproject teams ace in conict-

aected countries?


23/122

a a b

w a a bw

a. c a ak

a : a wa

( a bw u

sa a iaq),

a a a

( a ca

Aa rpb; A,

ia; a s laka),

a -ba

a b-a

( a bw h a ca ia). Ab 90 p

aa a w a (gaz 1997).

Key ideas in this section:

Mostconictshaveastrongeconomicor

commercialdimensionandaredrivenbyrational

decisionsforlegalorillegalprot.

Conicthaswide-reachingnegativeimpactson

people,infrastructure,institutions,markets,and

trustingovernmentwiththescopeofsuch

impactsdependingontheextentofconict.

Investmentclimatereformiscrucialtohelping

countriesrecoverfromconict.

Jobsandinvestmentarecriticalforpeace;

investmentclimatereformincreasesboth.

Investmentclimatereformisalsocriticaltostate-

building;reformsofgovernmentinstitutionsthat

regulatethebusinessenvironmentcaninculcate

transparency,honesty,professionalism,andclient

serviceallkeytorestoringgovernment

legitimacy.


24/122

r a pa a wa j

a b a ap a b a .

ra a a a -a a a

w p a b p (ta 2004,

p. 10). t a a -fa, ,

a aa, a a ( b, , a, a

p a), w p aa pw, a, a

a , b p, wa, a a aza-

.t a p a aw b a

ak b p apa a a a a a

(Baa a sa 2003; ta 2004; ma a

nzk 2005).


25/122

tab 1 a -a a pa

a

a ipa

r a pb

iab a ak a kp awa a a ap

dpa ppa m wk p a - ; b a, w-k jb

d a daa a, p, pw, aa wk - pp a a p

la wp a, w ap-p a a aa

B w - -apa pj

capa , bak , w a- a a

c a a p af ba

a ak, wpa -a, p p, aa wa a a

ia a a aa a a; aa a b a a

K p-

z b w- , pa pb pa a pa-

a k a

Wak faa ba (b a/ aa

aa), a a apa, a wb f , - - -w b

taa p a a a, k a, apap

m a pa w a

lw apa , p , aab b ; p, paba b pb aa

g aa b,w aa,w , w p, a p


26/122

t a baz a a aw a pp,

, a fa a a a w pa a

a, ppa, , , a a pf (Ba

a ma 2000; Ka 1999). v a

ab aa a. v q a b

b a ppa, aa b a (Kw a

s 1999) a a aba, ab pp a a. i

, pw a a a ba a

a ppa (df 2001; maa 2002).

c-a w a p a

a , apa, a pa ab, a a b p-

ab a p (tab 1). t a p

, a a

a a. l b w wa a,

a a a apa. capa a -

a (a, b, b, a wk)

w. ap, a b a a

gdP a b a pa p w a

a (Ba a ma 2000; Ka 1999). t a

a a a a a a ab, wak a a

a a p a a wa pa (

undP 2006).

t ba a a aa az a

w ba ap: a a. Aa

a wa a pa a a a b p

wa. Aa a qa a j a

a a (Ba a nzk 2003).

t a a b a a,

a pa ba wk b W Bak dp ra

gp. t p a a a

a qa appa a-

a a k wa. ia k wa a


27/122

p a a a p aa

p (c 2003).

t a a aa paa wa, a

a pp f p aa w (Ba a nzk

2003). A bj a qaa , a a

p a w . c a wa

a a a a ppa aa j (c

2003). w b p f w a a jfa a b p a, a aab a

ap a a.

B a ba a a aaa a

ap p a . ra a b b a

a , wa a p, q a a-

a wa, pw, pa, a . g a ab pa a .

rz p pa ba p pa

(Ba a nzk 2003). ua a a aa

a wa a p p a a . i

pb w k pb w a

a a p- , a a a q.

tp

ha p a q a

, a ba p a p p a


28/122

pa ba a. uppaa u a a w-kw p a

p a b baf a a a

a pa a , -

a a , a a (p://www.p../paaba/

a.pp). pp , w b af b a,

p, a . da w a

a a, p a ap pa a ,

a a b a a .

t ba a a p pj a wa a pa -

a a p a ap ab a

a a -a .

tab 2 b a p

a a ab pf. t d B 2008

a W e cp 2007 a

pa a . A

ab, a Doing Business a p w

a , a w a pa

ak b a a

w.

l a a a apa a w a a

a . i a a a a , wa (

b a a ), a pa -

, a apa wa k p b a pa, a

a w k , a a b . mzabq a

a p, a 17 a a ak a

w iaa a cpa Doing Business a

(tab 2). s laka a a a ( a

) b pa a w a-

a a a Doing Business . A, appa

mzabq a s laka w ba k apa a a b

p a a (B 2).


29/122


30/122

i a -a

e w pa a a a wa pa -a . ra a k -

a pa p- 40 p w a w

a a (c, h, a r 2006). A w

a a , aa w, a aa p

pakp a a 75 p k pp bak wa 10 a

w pa. t a w aa pakp

p a 10 p w a j a 37 p (c2007). w pa b a a k ,

a w aa p apa gdP $250 a a 15 p pbab

wa w f a. t pbab a b a a

w aa p apa gdP $600, a a 4 p a

w p apa $1,250 (hp 2003). m, p

k a b a p

pa (c 2007). t ap b b a a b a.

t pa a a aaz a a-

- w. i a w a

- -a , a a

a pa pp a a . t

wa a pp a pa p-p a, pa aaa .

B a k a b , p a

pp pa a b w ap (g 2000). -

, a a a b pa a , a a

a a -

a a w a pa

pb. t p a pp a

a b p a a a .

i p b , a b pa a b-

pa b b p fa a w,


31/122

w a a k, p p pp, , a a a ba aa a

a a a a (la 2005).

Pj a z a w a a a

w wk a a wa ( ), pj a-

k p a a a

a . i a pj a a a b a, b , b pa -a .

Pa, w , a b a a a a

. Pa b a a a, a b

Box 2 How does conict aect human and institutional

capacity?

Lebanon and Rwanda have both experienced short conicts (one month in

Lebanon in 2006 and three months in Rwanda in 1994), but the starting capacity

and impact o the two countries conicts varied. Lebanon had a better-educated

population and ewer deaths during its war, while the education level in Rwanda

was low and the death toll very high. Rwandas lower education starting point and

higher death toll meant that its short conict had a greater impact than Lebanons.

Liberia and Bosnia and Herzegovina have similarly sized populations that expe-

rienced many deaths and extensive displacement and physical destruction. Yet

their human and institutional capacities diered at the end o their wars. Liberias

skilled population let just beore the start o its 14-year war, and stayed away.

Fewer o Bosnias skilled population let during its shorter war, and more people

were educated. Bosnias institutional capacity also remained stronger than Libe-

rias ater their respective wars. The quality o Bosnian institutions and the number

o people with institutional memory was greater than in Liberia, where institutions

were severely damaged during its conict. Liberias institutions were o much

lower quality when its conict began, and its longer, high-intensity, whole-coun-

try conict meant that its reconstruction needs were greater than those o Bosnia.

Source: IFC Interview, 14 March 2008.


32/122

pa, a p ap, ab a. i a

p a p a . K pa a

pw a a wa a

a , wk a bk .

Pa b a b pa .

ta wa a rwaa 1994, w rwaa Pa

a h a . i a , p

a b aa a p az pa

pa, a b, a a pw w

baf bq pa .

Pj a a w a a. t f a

a a a a ab . t

a w a , awa

a apppa a. t , bakw ,

pa a, a a, a

a w a a -a (la

2005). Pj a w a pa a

a a aa, a p

pj a pa a a a pa , a

j a ap.

i a a a-b

cpa aa p- pa a pa-

a-b, w a aa aw,

p, a a a a a .

ea b a a a ab a-

ab pa ba a a a

a b fa a fa a pa a .

t p- a

p a pa w aw a appp-

a , a w a b a aaz b

. h p b p pa a


33/122

a a a a a a a

p a pp p a a aa

. W , p a -a a

abz pa a a p b ap b a-

a p a. i a pp

a-b ba b a a a p

a. t z w p- a

a a a bf pa.

r a a pb faa aa a

a p b, a

a p, ja ak , a

a pp a a a ba.

i a a b apa a a

a pa a w a-b a

a a a wa .

i a a pa p

W a a a wa w a-a aa-

(a sa l saa), w a wa -

ap p (a npa s laka), w a wa a

a (a Ba), a a f a

a -z f a .

i w a a wpa aa, wa

a b pa b aa a f a w b

a a a .

a apa, a a s-s

b a W pa a .

c-a a Aa, iaq, a sa l

a a p wk a paa aaa

.

t a a

wa pa pa a a aa -


34/122

a pa w. t a aa

a a p- a

a w pa a a

aaz a. t a

a p wa a bakwa ak p p

a pa a p p a a a

ak. a, a aa w w a

a pa a ak pa, a

a a, aw pa a fa b b a

f , a f p.2

rpa a pa wk a w

w w a a aa ba a

p pa -a . s,

a bf a f ba

a a pa pa p. a pp, -

a a a ea i tapa

ia, pb faa aa, a ap a -

a . o a a a a pa

, p a a, ab ab pa

z, p apa -

a .

A wa a a -a a b pa -

b b a b a b a .

m b a a a a, a k

pa . s b pa a a

a, a ab w b a p

wkpa ba , w pa ppa

f.

t p fa a b p , pa a

b a - p q

2 tw a aza, iaa A a a, a p a abk pa pa -a . s p://www.a.


35/122

a aa ba a a : a

b a, ba , p a p, pa a,

a ab a a aa.

Aa, w ak k a -

-a , a a a

bf a p pa, a z. t p b -

p ba a a

b a wa wa w a p a aa

a -a . i, ap, a a a

-z b a a p, b a

paa p.


36/122


37/122

Conict, and not technical defciencies in the privatesector, is the problem in conict-aected countries.



38/122

A

3Guiding Principles or Catalyzinginvestment climate reorm in

conict-aected countries

A w p

t q w a a a

-a a. m pj a

b a a. s p w w w pa

pj :

Ba a a aw pp a

a p a b a.

P aaa w wa.

t ba a .

ha a paa,

.


39/122

s a

a b p

b ba a a

w

a . na b

a a b pb

aa w f a

pp, a w a

p. t pj

a wa

-a

a b .

c, a a

f pa , pb -a .


There is no universal blueprint or reorm in


Key preconditions or reorm include sta saety,

humanitarian relie, donor engagement, and

openness to reorm

Flexibility and innovation are essential at all

stages o reorm

Conict sensitivity and do no harm principles

must guide all project decisions


40/122

Pj a p a pa p p a

p a paz wk a . W

a wk p a a, , a

p aa p, pa p a-pa w a pa pa.

Pj a ba w a paa w wk

-a . , a pb a a a

a a a p b a a

a. hw a a aw, w a pa

pa a p , w qpp a pa aa a a pb. ta

pb a a, a a a a w p-

a a .

s, pj a a ba w a a a -

ak a -a. t a a pj a

b a pa w -a k ak,Wa w a b wa w b ,

pa, b , a w w b a?

t q a pj a wk, pa, a

p .


41/122

B b a a

t -a q a pja b b a a pj (ic iw 21, 8 Ap

2008). sa a a a , w p a a

. A pa a p appa -

k . r -a a

a pa, w a w pa

b. Pj a b w a ab p -

a a w pp, k a w a w - , a ba a wk (b 3).

Box 3 Perseverance and adaptation in Iraq

In 2006 the Iraqi-American Chamber o Commerce and Industry (IACCI)

approached IFC seeking accreditation to market Business Edge, IFCs train-

ing kit or small and medium-size enterprises. The accreditation process isintensive and interactive, and given that Iraq was still experiencing active

fghting and IFC sta could not enter the country, prospects or working to-

gether were dim.

Committed to collaboration, IFC and IACCI had to fnd ways or IACCI sta

to participate in Business Edges course on training trainers, and then or

IACCI sta to train its members using Business Edge. Because IFC sta could

not enter Iraq to teach the course and videoconerencing was too difcult,IFC unsuccessully tried to obtain visas or IACCI sta to enter Egypt and Ye-

men or the training. IFC sta ultimately succeeded in bringing IACCI sta to

Jordan, but on the condition that IFC sta confscate IACCI sta passports

during the stay.

The IACCI sta who received the training ended up being highly innovative.

One carried two sets o identity papersone with a Sunni name and one with

a Shiite nameand used them based on the neighborhood he intended tovisit to train IACCI members. Other IACCI trainers worked in pairs, with one

conducting the training and the other keeping watch or possible attacks.

Source: Shohaieb and Nader 2006.


42/122


43/122

Ppa aip -a f a pza a

q. ta ak a pa pj -

w p a. tpa a bw

Qk w a w ap a a p

b a a.

ia b .

d pa b pj a a p a qa pa b pa b a apa

a a.

s a , a a w a a a-

b a, a a a b a ak.

e q a

t q pj a b , w

pb ba a , pa pp, a pp-

a b pj a ( bw a). W

a ap a a , a b a

a w a a a a a ppa pa pa

a b ab a pb-pa a a ab

. Pap a a q a ba wa

pj a a ba pj , a a wa

aa .

c a a pp a

i -1990 aaa a wk -a

ba w pa a w ppa w a, a w a f w w

a wk a ppa. ma aaa a

a a pa a pp ,

, bak, , , a wa b a bf


44/122

f ppa . s a kp w

ak pp a ppa a b

a pa a p. Hutu Interahamwe f w

p- rwaa a a a ap a

ga, da rpb c, a , a aa,

a pa p a a a b aak ba wa a

ap w aa a.

s p -a

a pp. t pp p aa -

a aaa a, wa

a f ap a p a wa a

p b pa. t pp w paaz

q a aaz w ,

w w pp a a wa a z

p ap a a bw wa b

a a, , a a .

A ap tajka p- . A a a ba

a pj p b a

f . t a aa w a a

aa, b w w ppa b p a

. t p p a w wa p a

a a pp a wk a a, a a-

a a a a bw w p

(A 1999).

t a pp wa w a

a p a a b app p p a-

a, pa p. c a app

a a a w a pj

pa, z a a a

, a ak a a a a pa3.

3 s www..; iaa A 2006, a gaa a la 2001


45/122

eap a a

, a

eab pb-pa b a a a w a

pb a pa pa a a .

mak a pa a a p a ab pa

a a a a.

dp pa z wa a p a

wp.s a p a ak pb

bb pa a f a pa a

a.

A a pa pp, a pj a ap

pj .


46/122


47/122

Its a question o knowing the countryyou need toknow who is calling the shots.



48/122

D

4 Investment climate diagnosticsin conict-aected countries

da wk a a

a pj -a . s

a a a -

ap ab b pj p.

da p a a a a

app w . o pj a

pj ap a pa a a pa

( ). s w a

a pj a. o , pj a

pa wa a a ab w

b pp a -

a , bak pj. t p

bw aa.


49/122

t a p a-

-

a (ab 3).

t f a aa

a,

aa pa

a pw, a

aa a

g p

-a , a

ap ab a

a a pa a pw, a pj p ,

b a . i a ak ap

a p a k b a pp


Technicalanalysisoftheinvestmentclimatemust

beaccompaniedbyanalysesofpoliticaland

economicpowerandofthecausesofconict.

Conict-affectedcountriesdonotallowmuchtimefor

longtechnicalstudiesbutshorteranalysiscanstill

beeffective.

Politicalandeconomicanalysisiscriticalforunder-

standingwhohaswhatpowerandinterests,and

whoisconnectedtowhom.

Goodconictanalysiswillidentifyrootorhistorical

causes,proximateorrecentcauses,andtriggers

ofconict.

Projectteamsoftendonothavetoconductoriginal

conictanalysis,andshouldconsultexistinganalyses.


50/122

w w a. t pj w bf a a-

a , w a a a a, p-

a ba a fa a pa .

ta aa a

Pa p pj a a a a a aa a. ma aaa aa ,

a p p a. -a -

a a baa p

a qa. A ap p , b a b a

tab 3 t a aa a wk -

a

i a Pa a

pw

ca

Wa a a aak a a?

W wa a bab p?

Wa w b ?

W a wa a a

pj?

Wa a apbw kakw pa a pw( pa

)?

W a wa

k paa pw ,paa ak a

?

Wa a -a -, p,a ab

?

W b p ap ?

hw a aa pja w

, b ,p pa?


51/122

a a a a -a .

o wa a iAs a baa w a

a a aa aaa p, aa

ba w (ABr). ABr a a w a a -

k b pba ba k a p

- a. t p a p a p p

a, p, a aa a

a a Ba a hza, lba, a sa

l, a ab a b aa pa,

ak p, a a . A ABr a

a w a p wk a

, w a a p a .

m-a a a z w a aa-

a w a a . t a

, a baa wk aa

k a a a aa w pp b

pa p a. t p a a

b a a a b ak a aa q.

t bw a a aaa p a a ab

p w a. t f pp pa;

. i pa a -a

(w - w-) a pa a pa a,

a qk a a a pa.

t a f ap a ak a.

i a p w- (a npa)

f pa (a ia Ppp),

a b z a pa. i a a-

ab a pj a a aaa .

t J n A (JnA) a aaa p-

aa b u na a a W


52/122

Bak gp. ap, ic wa 2003 JnA iaq. ia-

a b a a a p a

p JnA a a awk a w

a aap .

Aa pa a pw

t political and economic power analysis a a pa, b

a a a a a a

a pw a wa a. i k a- a a a a a w a a a

ap a a a a .

A a -a q a-

q aa, pf, , a aab a k a a

a a a a pa (b

4). i a ap a , a a, a, a, a aa.

Box 4 The importance o political economy and

conict analysis in Kosovo

Strong understanding o a countrys political economy has practical policy and

operational implications. In 2004 the Kosovo Trust Agency began privatizing300 Kosovar state enterprises. The process was guided by a policy o not

prejudicing the eventual fnal status and equal treatment o Kosovos ethnic

groups. Thus, or example, rather than selling land held by state enterprises,

long-term leasing arrangements were developed, bids were allowed to be

submitted in both Serbian majority and Albanian majority cities, and all ad-

visory sta were brieed on the ofcial policy o neutrality. By 2007 most o

the enterprise sales had been completed. Knowledge o political economy

proved critical to this success.

Source: Bach 2008.


53/122

ua pa a a a -a

a w a. , a a a, aba,

a b pa p (W

Bak 2002). s, p a a a. K pa, a w

a pw a wa, a a pa a

a. t pj a a a a w aaz p-

a a pw:

Pa a a awa a pj a . e

a pa, pa aa a b a a

a p a a a wa p p

. s aa a p k a a

pj a a a a a p. A a pj

a b a k a aa

a pa , a a a a a a

p a a kw.

A -a p a pw aa a

paq, a -qa, a, aab a a

b. W a pb aaab, ba

a pj a a a paa wa.

a w p p a , a

a a a b

a a ba a pa

.


54/122

Conducting political and economic analysis beore the

frst mission

Kw a pa a a w a a pj

. e a kw pj

pa, a j b a p aa a

a a pj. A pj

a a a

a a pb

a pa a a

a. g

a

p a aa pap

,

p a ja,

pp pj a pa a wk,a pp w a wk .

A w wb w pb aaab aa :

p://www.w./ (irin w, a p b un of

ca haaa Aa).

t BBc, cnn, The Economist, a Christian Science Monitor.

Wb a p a a w a a wpap

:

p://www.wp.

p://www.w-wpap.

Far Eastern Economic Review (p://www..)

p://www.b.bk./sseAl/sAa/w.

p://www.aab.

p://www.ba.w.//mea/.

Tip:

Interpreters sit in on critical meetings about conict-

aected countries and have access to all the key

players and insight into local culture and politics. By

working closely with them, project teams can gain

invaluable inormation on the environments in which

they are working.


55/122

p://www-.a./aa/2.

p://www.AAa.

s -a a a e-aa wpap

a a a aa aa . t wpap

a aab , b w a a a a

a. e-aa wpap a b a -

pa w a a .


56/122

Conducting political and economic analysis during the

frst mission

g a, a a -a ,

a a pf pp, , a ap a

p a b ab a b aq

pj a a . ma a aaab

a a b pa a aa. s

a astakeholder analysis.

1 A pa ap pa a

ap a -a


57/122

1 p a pa ap pa a ap

a -a . t a a ap, ak a bak p pap

a aw p a a a aa

a . a , a a k

a. t a a p pw, , a ap

w pp ap a w pp a

b w a pa a pw (b 5).

A kw a ab a pp w pa

a , a w . daw a

a a ( ) a a ap, a-

a pa ap. t a a ap

p pa pp pj pa a pw a . Aa ap a a

a a a b az a a

f ( ).

Box 5 Questions or conducting political and economicanalysis o individuals in conict-aected countries

Whattypeofpowerdoeseachpersonhold?Isitphysical(thatis,thethreat

ofviolence)?Economic(theabilitytoprovideorwithholdresources)?Social

orreligious(acharismaticorspiritualleader)?Technicalororganizational

(theyhaveskills,accesstokeyplayers,orholdakeyposition,suchas

anadviser)?

Whoaretheirfriends?

Whoaretheirenemies?

Howaretheyconnectedtokeypoliticalactors(suchasthepresident,prime

minister,speakerofthehouse,rebelorfactionleaders,ministers,orsenior

militaryleaders)?

Howaretheyconnectedtokeybusinessactors(suchascompanyowners

orheadsofbusinessassociations.


58/122

s w a a-

b ? m w

a

a a. u

ap (p -

a) w ak q

pp a pj

a . A w p ba a:

t . i k a w kw pj

a w a a a f . sa w pp

w w a a pa . sa a a ic

W Bak f a pa aza wk a pf

pj a p aw q.

Baa un a a paa a b

w a wk b a a a. t

a a a wa a w a wa ,

w w, a w a wa wa.

iaa a a b a a a,

w un nAto pakp u.s. a ( ap,

Aaa iaq). t a a a aaz pa

a a.

la ja a b aza (paa p pa a ) a a .

B a w pp a

p, ba a b a w pa pa.

J a pj a ba a , k

a ab pj a.

mb a b a a

a, b a a a a

p aa. s a p a a a a

a a a pa w pa pw ,

aab a a pw

.

Tip:

When meeting with leaders or those with authority,

watchandlistentothepersonsecond-in-charge.While

the person in authoritymay be circumspect andevendiplomatic in her or his speech, the second-in-charge

issometimeslesscarefulandoftenrevealstheleaders

actualattitudeorthinking.


59/122

-a a w a b w

aa p pak a a p a b

a. s a a pa pa

appa a a a a a w p

f p w pa a . i pb,

a aza a pj a w

a.

Checking the backgrounds o project stakeholders

Bak k ak a a k pa pa a

aa a -a a b w a w

pa f a b fa a a pj

(b 6). i a p- , k pa

Box 6 What to ask when conducting background checkso stakeholders

Wherewasthepersonduringthewar,andwhatwasheorshedoing?

Whatarethepersonsareasofbusiness?Lookforcompanynames,

owners,andsectors,andwhenthebusinessoccurred.

Whatisknownaboutthepersonsnancialportfolio?

Whatarethepersonsknownsourcesofincome?

Whatisthepersonsreputationforhonesty?

Isthepersoninoroutoffavorwithpoliticians?Withwhichpoliticians,

when,andwhy?

Hasthepersoneverbeeninapoliticalorcommercialcrisis?Whatis

knownabouthowheorshereacted?

Ifthepersonjoinedthediaspora,wherewasheorsheliving?What didheorshedowhenlivingthere?Whendidthepersonreturnto

theconict-affectedcountry?


60/122

Box 7 Background checks or partners and contractors in

Kosovo

While undertaking privatization in Kosovo, IFC sta oten had to dealwith people who might have been involved in wrongul behavior dur-

ing the conictranging rom smuggling and looting to war crimes. The

main question was, who should be allowed to bid or companies and

assets? Answering that question involved navigating a minefeld o po-

litical sensitivities while maintaining a pragmatic approach to privatization.

The team conducted background checks o winning bidders. Privatization rules

generally barred people rom bidding i they were convicted o a elony aterJune 1999, when major hostilities ended. The approach was not airtight, and

there was still a risk that people with dubious backgrounds slipped through

the net. Still, it ultimately proved sufcient or detecting ineligible bidders and

avoided the accusation that the project or IFC colluded with power players.

Such airness helps support commitments to peace among the population.

Source: Bach 2008.

ba a b a a .

t pa a b b aa -

a, pb a a a pa a, a

pa aa a a.

W a bak k, g a aa a a

p. Pj a a a , a a-

aba, faa a a ak pa, a a

p. i a, ic a a a i d d

a a a a un a ba, un a z,

a aa pa, a a pa (b 7).

Wa a -pf , , a a

pa bb. i a -a , -pf

a a bba b a a a. A a

w pa , b a , pa a b app


61/122

a w a a b a w a a

aa pp a.

Aa a

A a aa, aa a a -

a p b a pj a. B a a

pa a p pj a a

aaa a b pa b a a. c

aa , ap, w a pa

a b, ba a , a p a p -

b .

c aa pf a b ba i

aza a p . W pj a b


62/122

awa aa, a a

aa w f ap.

c a p a:

Structuralpa a b b p, , a

ab a a a p .

Proximatea b a a

aa, pa a p pb.

Triggers apa a aa

(p://www..//8).

A a ap, 1994 rwaa:

A a a b wa aa a a wa a a

(p-1950) pa appa bw h a

t a p a h a

aa.


63/122

A pa a b a h pw wpap a

a pa, a 1990, a a t w aa .

A wa w rwaa P Ja

habaaa apa, w b wk h

pa a habaaa a a pa a w a t

p ( rwaa Pa ) f h-a

.

A w pa a aa, a a b aa . i a ab

pa a aa, aa a b a:

Aa bk, a Understanding Civil War: Evidence and Analysis

(c a saba 2005).

http://www.business-humanrights.org/Home, a a, p, a

wb b a a a a p.

http://www.eldis.org/go/topics/resource-guides/corporate-social-responsibility/

business-and-conict, a p a p a b

a a .

http://www.crisisgroup.org/home/index.cm, w aaz , a,

a p aj .

http://www.iiss.org/programmes/conict, w p pa a

a a .

http://www.peri.umass.edu/Modern-Conicts.404.0.html, w b

bak a a .

http://www.globalsecurity.org/index.html, a p - a -

a w .

http://jir.janes.com/public/jir/resource.shtml, a a a a

p az , a ab, k,

a , a pa a aa.


64/122


65/122

Working in conict-aected countries involvesmore everythingmore cost, more time, more risk.

Interview with IFC sta


66/122

O

o a wk p, pa a p

a -a -

p pf pa a f

p f ab a a ,

pa a a, a a . Pa

a w ak p w

a p, aa , a pp pa.

Pa a

d a ak -a . i a

ic a a wk , a 80 p- a a pj b a -

.

5Planning or investmentclimate reorm in conict-

aected countries


67/122

r ak

-a

a a. Wak -

, pa ,

pab pa p-

p, apa a -

a bakw, a

f f f a

a w wk

a -a a

a p .

o , pa

a a b a-

b, a b a a , a

pa a a.


Timeframesarelongerandcostshigherinconict-

affectedcountries,andprojectsshouldbuildinextra timeandbudgetsaccordingly.

Startearlytondtherightteammembersand

ensureeffectiveplanningandcoordination.

Securitypreparednessandstaffwell-beingshould

notbeleftlast.

Reputationriskscannotbeavoidedonlymitigated.


68/122

Pap a a a a

pab a a p a a -p

-a . ea b b pj aw

p, aa a a pa, a .

A a , a a bw a -

a qk pp . o appa

a pj ba -, -, a - pp-

. rap, a a b pa f

a pj, a a f pa

612 p, a 1218 p. ta wa, pj

a a w a pa w, a

aw b .

B

Wk -a p. i a ica a wk -a , 63 p p

a a pj b -a b a

. i a, 58 p b a p b

.

c a -a a a a. A

a b q a p, a apa, pw,

a wa a b w aaab. v a b a

ba, p b - a, a wa

p wa ak b wa-k. s a a b ba

p a f a aa w 24- a a,

wa p, ba- a a-p ww a a a

pa w un m opaa s saa (moss). i

a a a a b q. i a, a

a a a ap p. o ic a b

b a pa a a, a b a $10,000,

a $80,000 w w .


69/122

i a, w a a a apa a -

pa a a wk q a pj a p

-a a/ a a wk w

pab a a a aa pa.

i, p a w apa -a a

f p a p. m, - pj a a a

pa, w a b .

a b a a

o b a pj a a -a

f pp a a ab a f

p a . m pp wa wk -a

, a f pp w k a a b

f a -. t a a

aa a -. g a k b aw, pa pp a p a a

pj.

t f p k. tw p k a q:

a a pa. ta k a a f, b

pa qa a pp pa -

a a b.

Pj a wk -a a f

a b qa a a ,

ab wk a a ab , kw a

a , , a p, pa a a-

k, pa, p, b, a a. i -

a a a b awa qa a k

b a a a a a pp

(mak a A 2008).

g a f aa a -a -

a a a b a p pj a


70/122

w , a, a (b 8). Pj

a a w a a. B a p-

w un a a a aza, a a

a a b a fa p a a a p wa.

m, wa a a a a a a

a ba apa, a pa.

A a a a pa a a, wa

a a b a pj.

A -a ak f aa pj .

Paa k a a, a, , a

Box 8 Recruiting local talent in Yemen

In 2006, IFC began work with the Yemeni government on a Mining Policy

Reorm Intervention. Within a year the project had produced clear results,

including an internationally competitive fscal regime, drat Mining Law, andrationalized licensing procedures. Recruiting local talent was a major reason

or this success. A strong local team made it easier to coordinate and commu-

nicate with the client and to retain needed longer-term momentum. The local

team also provided invaluable local knowledge and expertise.

Source: Essmat and Tadros 2008.

pa a b q ab a - pj p-. t a a a pj a a a ,

b. d p ab b a

a a. i a wa a

a k a pj, b a ap,

a aaz pj a w . i a, a a

p a kw a a w a

p , a a a pj pa-. A a p a p p a pj a a

a (ic iw. 21, 8 Ap 2008).


71/122


72/122

t a a a a pj a a a a a pj -

a. Wk -a , a

aa a a pj a a. Pj a

-a w a a -

w wa, p a , a

a w b paa a a p. i

a, a a p aa kw

a b a a a/ a pp a a

a wk. A p a a wk ak

aa a, a ba a a b a a -

b a, a bw , a a aa.

W b pj a -a , a

a b faa paka. Pj pa ppa

a ab a, a, a w a,

a b p pj. ma

aa a w a wk a -a

p p , a p aa

a w a p a -ba aa.

ia pa j pa

Pj a a a w aza-

w a pa. ca a

w a pj a p a, w a b a ab

af, fa, , a .

ca pa a aw a pj a a wa

a a ab p. i a p wa

a a pa aaa wk, , a p

w a pj a, a. W -

z w , a pp a

aa a p p pa a aa pa.


73/122

d p

t pa -a a b aaa. Pj a pa aa ab a -

p f. Paa p a a b ak :

Taking security courses or eldwork in confict-aected countries, such

as the training oered by the United Nations Department o Saety and

Security (UNDSS). t undss ba a

aa f (p://../wb/). t wb ab pb, b q a a pf. t

undss a aaab un afa a, a

a w w ak f a a a

a a. t ak a w b

a a pj a a, a wa

a a kp, a jak, a bb p a

a pj f, a . Baa a a a a - a w pj a a papa.

When traveling to a confict-aected country, ensuring that every member

o a project team obtains a security clearance or that country through

the UNDSS website. W aa a , fa

a a - un f, a a pj a b

a b un p

b a aa. i a, a baa a a w pa -. i a w a b

w ba a p -

, a p b a .

Visiting the in-country UN security oce or a security brieng, so that

the project team can be better prepared. t pj a a

a a a (, aa p b a,

a p b) w f a b. t

pj a a ak a a p b a pb

f a a a a f wa app

a . i a aa , w k b b a b

a un f ak a pp b aa. B


74/122

a bf, pj a a ak k a

a w b a .

W Bak gp a b awa a w un a f kw

a W Bak gp pa un , a a a

a iaa a cpa. t, a

a aa , a a W Bak

gp a f w un p a fa a a

bf w a -a .

Ap k

Wk -a a k a a

pa aa. t k a a k

ap a a w pb. ma -

a ak a a pb. ga a b a b

a pj a, p, pj a a a a a a. l a b p

k.

W pp a paa, a a b a a a

-a k a a. A a

p, a aa b

-a a a a a. A w k b ap, a a b w pb (dAc 2001).

sa a a a k a. sa a a

k a, w a b pa pa a aa

( ab) a a b b a W Bak f f. i a -

un , wk a p (-p) a p

a a un a a a aza. o k a a b b b pp p, b, a

a pa. d a b paa a ba

p a baa pw a aaa

pa pj p.


75/122

rk aa pa a pp p b a qa a

k. Pap a k pj a

pa. i -a p a pa

pa a b w. t ab pa

pa a awa a a , a a a a

a pa ap w pp w w a a

. Pj a a w pap

w pp w a a kw p, pa p

ba, b pa a a a. t a a b

w pa kw a a papa a , a

wap pa ak pa a f a. Aa

w pa, w w , a pj a

a w a.

W wk Aaa, ic a w ak

p a a bak pa

w a a- a, fa ,

ba a p A-Qaa a wa p

a. i lba, b aa a a w

un s c a ba a a a z. i iaq, aa

a wk w u sa a w pa k

ba aa w a u

sa. W a a a wk ap wa a

a , a ap a b a aa a appa

. B a a a a ak pj

a a b a a , pj a pa

a a a aa (iw w ic a

ma 10 2008; ic iw n. 36 ma 14).


76/122


77/122

Implementation is key. It is not enough to havegood institutions on paper.

IFC Interview 9, 7 March 2008


78/122

T

t w a p a a

p a a f b pj a

.

Wk w

rap a pa a aa

Pa w paz bf

pa ap w pa. i a wak

a a ap, pj a a awa

a aa a . i

a p ap w a pa

a a a w - pa a a p a

pj wa p a a. B a-

p w a pw pa a a p

pa ak a a pj.

6Implementing investmentclimate reorm in conict-

aected countries


79/122


Relationshipstakeprecedenceoverimplementationarrangements;thelatter

canchangeeasierthantheformer.

Clientcapacityinconict-affectedcountriesoftenneedextensivehelpwith

reforms,fromsmalltolargetasks.

Managingexpectationsisimportantinanyproject;inconict-affectedcountries

itcanimprovethesecurityofprojectstaff.

Effortsshouldfocusonbuildingaconstituencyofreform,andavoidinga

singlechampion.

Includingunconventionalstakeholdersinreformcanpreemptattemptsto

spoilchange.

Womenareoftenasilentbutpowerfulstakeholdergroupforinvestment

climatereform.

Thediasporacanbringideas,talent,moneytosupportinvestmentandreform; theycanalsosparkresentmentfromthosewhostayedincountryandendured

theconict.

Quicksupportandrapidfollow-uphelpsbuildtrustincommitmenttoreform.

Eventheappearanceofimpartialitycanbepoliticallydangerous;acommunica-

tionsstrategycanhelp.

Mid-levelpractitionerscanbeimportantsourcesofadviceandreformprogress;

theyshouldnotbeignoredinfavoroftop-levelgovernmentstaff.

Coordinationisdifculttoachieveinnormaldevelopingcountrycontexts.It

isevenmoreimportantinconict-affectedcountries,andextendspastagencyto

agencycoordinationitinvolvesstrategiclocationofreforminthewiderrecon-

structionagenda.

Culturaldifferencesinaretobeexpected;inconict-affectedcountriesthey

includedifferencesbetweenthosewhohavehadtosurviveinverydifcult

circumstancesandinternationalaidworkers,andincludedifferencesbetween

militaryandciviliancultures.

Setbacksandfailurearearealpossibility,asisthereformworkbecoming

alowerpriorityascrisesemergeandpoliticsshift.


80/122

ia ap a a pa a ak-

wk . ia ap p b pj

a a a pa a a a

a a p a a app. ea b aapp a a a a a

pj wk.

spp pa

A , a apa a b a a . P apa-

q pj a p a a p pa

p a a a a aa pj a a k a

pa a b pp a p-

paa aa w . cpa a p w

a a a, a a w p pap, a

b, pa , ppa pa, w .


81/122

Pj a b a apa ap a b w-

p p p w . A a , pj a

b awa a p a p apa b. d

pp pa a p a pj a

, b w b apa .

e a wp

o a a pj a w

aw a a a a , w wk w a apa b apa-

. W pa a p pj p a qa,

a a w ak a wp . t

b a a p, a a a -

a b p w pb.

A b a a w wk - w a ap k a b baab a a b a a a . tpa

, , a w k a a a

a pp, k pp f wk w,

ak k a a ak. i a, pj

a a a ap a w b p a a

a: b , a a, a

a a apa b w a .

maa pa

W pa a aa aa a,

p a a a fa aa a. i a, pa-

aa a ba pa a pp a k

a b. Pp, a pa baa,

k ap p pa a wa ab a pa . la a a

p , a p a b k ab a

a -f a pa ppa pa a

a p.


82/122

i a a , a

a p apa a a a b . t

a k pa a

p. W p w

p jb, a b wpa app a a a

a a. i a b a a

a p .

t wa a pb b a ab

k pp , pp a w w

, a pa pa b. t aa -p-

a - ba . i a p b


83/122

a a a aa a a bj a pa,

a pb aa pa b

w .

A a ap

w a a w ap a pp

a. A ap a pa a w

a wak a a p a a. A a ,

a ap p a a pp.

ap, a a p a -a a p

a pj a p a p, pb, p.

Pa, a a ap w a bak

a kw a a pa k pj a a. r

p ap p aa ab, -

, a a aab, a p wk ap b

p. ia a ap a.

Pj a a p a b pa b

pp w a ak pp . t aq a pp a

a a pa a pb , a a

. o wa b p ak -

a wk p pf , a .

t wk p a a wp a

paa ak, p a w pj a -

, a b p a a a a

pp pa.

A k ak, -. B a

b a pa pa, a j .

t pa a b , a a

pp ; pa a f p

a -a . sak a

, w a p pw aa. Pj a a p

k p a . Paaaa a a a

ak, a a b ap ba a


84/122

a a a . ua, w aw w a

pa a ba, ak paaaa

a ak a w .

ra a ak

Pj a a a aa a a p

papa a ak, a pap a.

d w b f , pa a

kw a a ab, a p w -

b a a. d f pa a, a

p. rb a a b appa

a a w pw app-

pa b pa a.

rb aa a a a pa p a pp

pa b , a pj a a w a

. i , ba pp a ba

a aw a a aa pa -

a. mb b p a a a b

aa , a p a a

a .

iaa a pakp a a a

ak p pj a. s a p

bak a pa a b pa ,

a a kw a . t a a aab

a a b pj . ap, usAid a

f a pak Aaa a p b

u.s. a.

i w

W a k pa p, a -

a . W a ppa ;

a a a a aa ba

a a, a, a a a w f. t a


85/122

a w f pa

ap. i a, a e saa, ea,

a lba, w pp w ap . W

a a a, pp bf

w a wa aa a

ab.

W a a b a aab pp a

w . W w p ap k a a

w aa a a f -

a a p b a ak a a a a-

ak b a .

d apat apa a b a ,

a w b a a

. t a b a f aba ba

w q a a a aa, k


86/122

w kw . t apa a a a, a,

a, a a a ak b wk a

ak. Pj a a a apa aa a

aab a pb a

a a .

B apa a b, a p -a

a a pa a. ic a apa -

sa l a, p a wk, a

a a pa a b a .

dapa a a a a pp a

a bak p- p

jb, , a a, , a a .

m, apa a b a w a a ,

w a paa p. W paa a , a-

pa b a a a a a . o wa

a pa a w app k a -

apa b a a b, wb apa

b a f a ab a pa . dapa

b a pp b pap a

a b a . ca -

b b ap b b aa, k bp

q.

Pb-pa a a a

ia a ic, a az pb-pa a-

. t a a p- ,

bf a b a b a

a. ic p a a w a pb-pa a

a a -a a, p a

bw b pb a pa . ic p-

pb-pa a 13 -a (b 9).


87/122

Box 9 Sustaining peace in Cambodia through public-

private dialogue

When fghting in Cambodia ended in 1998, the country had undergone a

UN-administered election and was in the midst o transitioning rom a com-

munist state while struggling with the Asian fnancial crisis. The government

was ocused on instituting a market economy, an eort that enjoyed some

initial success. The conuence o these actors led the government to realize

that the emerging private sector should be included in the development o

the economy i it was going to grow.

The Government Private Sector Forum is structured in two parts, with the

main orum held biannually under the chairmanship o the prime minister

and making binding cabinet decisions, along with seven working groups

that meet regularly on issues such as law, tax and governance, export

processing and trade acilitation, and banking and fnancial services. Each

working group is co-chaired by a government minister and private sector

representative. The working groups discuss policy-related issues and direct

operational impediments acing the private sector (such as road conditions,

unofcial ees, and damaged inrastructure).

An important actor that enabled the orum to move orward was the ocus

on a neutral, shared, apolitical platorm that could be used or constructive

consultation on issues. I the orum had been perceived as other than a

constructive, participatory process, it would not have encouraged business-people to engage in a participatory process or development.

Source: Herzberg and Wright 2006.

B b p -a , pb-

pa a b p b a aab

a a a ap a bw pb a

pa w ak . i a, w pa

pa a pa pa wk

k f a a

a a b f a a b a .


88/122

APProAch

hza a appa ?

o a w a w ak a

za a appa. A za appa ak ba

p, a p aa a p a a b-

a, , p, a pfa,

, a p. A a appa a w k

, a a ba a a aa ak ab.

A za appa a a a a, bf-

a b qa. B appa a a ak a

a a b a a w apa

pa w. A a appa a a a b

a apppa f p aaz w a ak b k a a .

B b a w , a a appa ba wa

a a b aa p

ab b.

W b appa a a pj, -

pa k a a,

, a p ak a a p a

. d p p a a k a pp -

a a a pp p

a b ak p.

B a ?

t ak b a pja pj. t w p

a apa a pa w (b 10). opp

w bw a a b a , a

w a ap aa w -. B


89/122

w apa , a a a pa

b; ak a a wpa a-

a , pa w b b w a a p

ba ak a. i a, a aak .

W apa a a pa w a a a

bw a , b a ak . B

q pp w f pw a ap a w a

ab .

c

ca a b a a pj a.

d a, a, a w w a a a

a a. e pj a a aa w a

Box 10 Boldness in Lebanon and incremental steps in

Sierra Leone

In Lebanon, high-intensity conict o short duration has recurred since the

1980s. The capacity o Lebanons human capital has remained high, and

entrepreneurialism has remained intact and grown over time. By contrast,

Sierra Leones conict was intense and lasted or more than 10 years, taking

a deep toll on human capital and entrepreneurialism.

While politics in both countries are complex and shiting, Lebanons govern-

ment had considerable interest in enacting reorms as a sign o resilience

ater the countrys month-long air bombardment by Israel in 2006. For ex-

ample, bold reorms were made to the company registration system. In

contrast, government workers in Sierra Leone needed considerable ongoing

support, and much eort was needed to ease government suspicion o the

private sectors in both Lebanon and Sierra Leone because their reorms pro-

gressed incrementally rather than boldly.

Source: IFC Sta Interview 24, April 3 2008.


90/122

a aa , a p a w pp w a

a p a a wa w.

ap, a b a f a w f

w ak w a

a -a. i a b f

a a f a b pa.

ca a a a b a b a ab

a awk w a ak pa. t a b

a, b a bk a a, b k b a-

, b ak pp w a a wk .

Pj a a a w pp w kw -

, a wa wa a wa pp w a.

la p a ap a aa w a

a p. ma a b a a a a . t

a a -a a b a ak apa

a apa p a , a a a a a a

bak a a. a, a b a a

p a . ca a ja p a

a aa w a aa a app a p a

a . B a a pa pp ,

a , a , p, a . r-

pa a pa a

wp a p p. ca awa ab a

pj a a aa p appa aa-

ab a a a f wa

pp a wap pa p z

a ja .

B paa, b a qa

e a a wa a , w k a bw f a-

. Appa a p a, a, a

jpaz a pj . t a a pp a


91/122


92/122

appa -a . t appa f

aaa a -1990 w wa z a

a a a a . t a bj a a b , b

a pa a abz a ap bw

p (gaa 2001; A 1999).

i a a a a a b

pj a bf a a.

ap, a a pj a pp p a a

aa aa b a ba, a

a pp, a a a-

a. B a - wp, w a

a a w p a ppa wa ab,

a pj w a a a ab a w

a a. B a abz , pj

w a a a . s, w b pp-

a wa wa z , pj a b

a qa.

dp a a a a

A a a a a a -a . ,

pw pp pp . s, a b b

a . A , pp w a aa .

i w a a b a -

. Wpa awa p b a aa

a. t a a pj a

w a a a a.

A a a a ak a , a a-

w a a a apa. t a

pp, a a, a . ap,

a a a apa a apppa, a -

pb ba wak a (raa a 2007).


93/122

A , a pp a a ab -

a b w a a a

-a . i p

a a pw pa a a , pa

p a a b -aa a

a ba .

s b w a .

i a a b a pa

a b . ia a

b f a a -

a a a b a ap a -

a . sa, a a p

b a -a a a f,

a a a. t p a,

a w b b aa a pa a, pa

pa a ap . ta ,

a w, a fa b a a a pp

a p- a a a a a -

. B papa a a, p

a a a aa ; a a b aa

a p b a. tp a a a

a a k- a g.


94/122

rz pa

e pa a a . t a a p apa, aa a . s p pa

a pa . i u sa, ap, pa a

aa a a a a

w aa, p a a pa w a ap.

Pa a awa b a pab a -

a , w ba a a w ba pa ab. s, w b

ap . i a ww

w pb, w aa w ap. i

a, pa a app a w

a a b a paa . i a

b a b j a a pa

a a a wa a aaa a.

sk a pp wk a a

W p , a pa

ak. o ak -

pa a k a a w a

a a pp .

tp- a a w aa pp bk a-

p a b pab. B a a a pp pp a

a a , b . tak

pa pa w w ak

a a pp a p . Pp wk a

a a p

a pp (ic w 9, 7 ma 2008).

sk qk pp a ap w-p

W pa , a. n a , a


95/122

p . o wa a pj a a p b

p a a b a a qk.

Pz qk pp wa paa , k

a pa, a b a a paa wa

ab (ma 2007). Wa a pa w a b a,

a aa a a pa

a a.

t a ic d B rap r u p a

b qk, aab a aa. c a

kp ab pb a k a

pj a w w w ppa. o wa a w

pz ap w-p a a, ak

ww pp a a a a a pa-

a .

ca w aa a

t a b a a a a a b -

f pa. ca a a wk -

a a (b 11). t a a p a

wa a a a a a


96/122

p wk. sa a a w pa

a b wa a p . B b

a a, a a aa k pa

a a a p a a ak p-

. i f pa , a a pa

a a a a a w .

pj a, a W Bak,

u na, a p bak ( a Aa dp

Bak), baa a, a aaa a.

d b p wk a w p

i f p b , fa

w wa a p, a , ba

, a jb. i a a b a a w p.

Box 11 Coordination in conict-aected countries

International assistance in conict-aected countries is oten coordinated

in ormal structures, where international partners and government meet

in technical working groups to discuss a common reconstruction agenda.

In Liberia, donors and the government met in the context o the Liberia

Reconstruction Development Committee. In the Democratic Republic oCongo, donors and the government convened the Consolidated Assistance

Framework. These coordination structures helped ocus donor assistance

on post-conict government development strategies, which are oten sub-

sequently articulated in poverty reduction strategies.

One crucial dierence between Liberia and the Democratic Republic o Con-

go is the ocus o government leadership on reorm. In 2006, Liberias newly

elected government was ocused on reorm, which enabled a broad reormagenda to be implemented. In the Democratic Republic o Congo the lead-

ership was less ocused on reorm, and a modest reorm agenda remains

difcult to implement.

Source: IFC Interview 36, 14 March 2008.


97/122

a b , awa a

. o a a b a a w. Wa

a pa a b pp a w

pa aa. n, , pakp-

, a aaa p k b - z

- w q a ppa p a

. t pj a w a a a

a w a a a a

a a.

t a a wa a pf a wk. t

a, b ab, a a

a b a pa. t a b ab

a a w k pa w w b a . t a b

a -- a a a wa

a pa a wkp a a ba a a

a. A appa p fa k bw

pp a w aa p b -

a aa pa. i a, a a

b k pf a a pz.

Ppa bak a a

P apa, aqa a, a , b ,

a ak a a a

a a . m a -

w pa a wa pa a

ab w wk a -a . Pj a b

ppa k a. dp b ap a

pa a pa, pj a ap a a pj a

a b a a .


98/122


99/122

We have obvious technical indicators but theseare not enough, more so in conict-aect countries.

IFC Sta Interview


100/122

M

m a aa a b f a b . t

a -a p f.

uab a, p , a wak apa a ak

aa f.

t pa aa, a, pa a

a aa a f a a p

a a aa aaab a . o b

a apa a b a f, a

a pa . sap a ap a a p

b f , pa ap b -

wa a a p fa f. ip a p

a b ba p

. sa a , , a a aa,

p p wa k e, a b aaab.

i a a a , pwa ,

7Monitoring and evaluation oinvestment climate reorm in



101/122

p

, p , a

a aa

a b a .

Pj a

-

a a w

f -

a aa.

sa a

g k a a pj a w a ak

a aa, p b a a pb. t w k

q pa ba a ab ba a


Theextentofdamagetobuildings,institutions,re-

cords,andskilledworkersmayleaveacountrywith

littleornodataordatacollectioncapacity,makingitverydifculttomeasureimpact

Giventheimportanceofbaselinesinassessing

projectprogress,datacollectionshouldbegin

immediatelyafterconictends;oftenmanyagencies

areconductingsurveys,andtheirdatacouldbe

usedorincludequestionsrelevanttointendedreform

Thegoldstandardofdatacollectionwillelude mostprojectteams;effortstoinnovatewithmethods

withindicatorsmaybeneeded

Asdifcultasitmaybe,effortsshouldbemadeto

measurehowinvestmentclimatereformcontributes

topeace.


102/122

a. W a a aa a a w-

a , k a a a a

w aa b , k k pj-pf q

b a pa . caba w a a a

p w a a a. t a a

wk b a a a -a k a ap

a a a .

Kp p

Ba aa a b a a w aa f, a b b-

j a w a a a a pa ,

a . i a a b p a apa

b aa, a b a a apa a

b a aa aja a p. tak a a a

pj a aa a b a, a w

pj a a p , a appaa a pj .

B a w q

B ppa b . s pj a a pap

pa aa a aaab a a

a. Pp p b b w a w -

a w a b pa a a p

a aa a. i ab a a a

, a b a a p a (im iw 21,

8 Ap 2008). i -a , a aa -

q w k p a a b appa a aap a -

p ab q .

i kw a

t , w pj a a a a ba p

kw a b a p a ab wa (w

p az f, ap). ca a w-az, a ab


103/122

pj b a p a.

Wa a a p

Wa pj a a a ap pp ab wa

pa a ak , pa , a

a, a aa a. ap, pj a

a appa a a a, w

a ap a a . B a

a a ak, a a. t a a a ap pb p,

aa, a p.

ma pa

dp a a aa -a -

, pa a a -a a. g

a a pj -a a a

b pa a a a , pj a a

a w pj a a p pa.

t a pab , a p pj,

a ak aa a a a ab pj a a

a. ra w a pa a, w ,

a p aa a a a a p- -

.

s, pp pa a -a a a b

a a p w ba a w pa ak-

. t b , b a aa, a-

k a a pa a a. A a ap,

a a b a b pa, a , a b a . i a a a pp a w

p a a a a

.


104/122


105/122

A thriving domestic private sector operating ina transparent business environment can attract, provide

services or and partner responsible international investment.


106/122

1. A g-n g ck l a i ca r Pj-

a c-A c (mak a b w a

a x)

ha a, a a?

d pp a ?

ha b a a ?

i p aaa w wa?

i a ?

i a pa ?

8 Check lists and tips


107/122

i a b w ak w a , ba p- wk

a a b . a a

b a a pa, a w

a w a a, w a b a f w p-

/ , w a b a pa.

2. s P ck l (mak a b w a a x)

A a pj a b f ak a f ?

ha a pj a b a pj w undss?

ha pj a a - a bf un f pj

?


108/122

d a pj a b a a p b a pj a a a ta p?

d a b pj a a a a b (.. p b, a a

, a a)?

d a pj a b a a p p a ww a a w a un f

a -a a?

d pj a a a a pa a b a aa a ba a ?

3. ca sa tp4

Feet on the ground. ep a a ca of a

w a p z, a a p a a

a wk w a w a a w k

.

Implement a Communications Audit and Stakeholder Mapping. i

a a a w k ;

a pa ap a a w

a , w bf b a a b aa;

a f p a a . tpa,

pa pa , pa aa,

a, ja, p, a .

Find a trigger. ak app i, p

a a a a a a a k

.., p, a w a ,

pp, bf a a a a

. t a a b pp b aa W Bak gp

aa d B a a f a .

4 s: naa yaa o-Aa. (2009). Reorm Communicatons Chrcklist. ic.


109/122


110/122

Start the story. dp a a k a pf

a a aa a f a pa

a p f p k . hp

pa wa a a aa ak pa p

a. , p, a -a apa

pa a a p, a p, w

, . t p apa a f a p

p .

Walk with Two Legs. t pa b awa a a

pp a a ab W Bak gp a

a a ab . epa bj, ,

a p a pa a p p

w a ab pa a a a p,

pp a p a . A pa

pa a apa b a aa, p

a pa pb aa . ea

ak a. t a p pf

pa a b p/wk a aa ba.

ta a b/ a faa w p

pa p, a pp kw

aa w a, ja ., p pp

ak a.

Answer the so what?hp pa p

aa. t a b a a a w a

a p k bw p a

a a p a, pa a

.

The reform network and input into public policy. B apa a

wk a pa ap f a a

app a a a, pp Pb Pa da(PPd) b p aa pa a aa a

pp aa. A a p

wk w wk ab aa,


111/122

p a pz aa. PPd pp

ba a a a aab.

Set clear targets. ea a a w k

a p p a pf b

aa21 p 4 . la apa

p b awa a p a

pa b a wk a pf

a f a.

Then and Now. upa apa a p aa. A a apa a b a, ,

b p a pp b a a

p a b a. t a pa a

k kw a bf p p;

p p aa.

Investment Promotion. A pf p (.. 21

p ), p a v a a -a apa a pa a a a

a a app, a a a ab bf a

a pz a a, pa

a . t apa a pp p

a, a a aa . i a a b

p aa


112/122


113/122

The more limited market activity is and themore widespread damage is, the more important it will

be to begin with activities that help resume the basics o

market activities.


114/122

r

A, ma. 1999. Do No Harm: How Aid Can Support PeaceOr War.

B, c.: l r.

Aza, Ja-Pa, da Ba, Pa c, sa d, Ja W. g,

a s. Paa. 1994. s e cq

ta c Wa Pa. P ra Wk Pap

1392. W Bak, Wa, d.c.

Ba, Ka. 2008. A c Aa a i ipa Pj ga

a rpa rk: l K. Smart Lessons. ic,

Wa, d.c.

Ba, Ka, a va ha. 2005. eab e Pa:

Pb P c s B. un gba cpa,nw yk.

Ba, Ka, a hk nzk. 2003. B g a ga:

P l s Pa e A

c. iaa Pa Aa. P rp. nw yk.

Ba, Ka, a Jak sa. 2003. i. i K. Baa J. sa, ., The Political Economy o Armed Conict:

Beyond Greed and Grievance. B, c.: l r.

Ba, rb. 2001. Prosperity and Violence: The Political Economy o

Development. nw yk: n & cpa.

Ba, rb, A g, a sa s. 2002. oaz v.

Journal o Conict Resolution 46 (5): 599628.


115/122


116/122

. 2007. P c r: hw s P B d?

o u, dpa e, c s

Aa e, o, u.K.

c, Pa, a Ak h. 2004. g a ga c Wa.

Oxord Economic Papers 56: 56395.

. 2005. r r, ga, a c.Journal o Conict

Resolution 49 (4): 62533.

c, Pa, a na saba, . 2005 Understanding Civil War:

Evidence and Analysis. W Bak, Wa, d.c.

c, Pa, Ak h, a d r. 2006. B g a

ga: ab a c Wa. Wk Pap 2006-10. o

u, dpa e, c s Aa

e, o, u.K.

dAc (dp Aa c). 2001. Guidelines on Helping

Prevent Violent Conict. Pa: oaa e c-

pa a dp.

d ca, gaaa. 2008. Rebuilding War-Torn States: The Challenge

o Post-Conict Economic Reconstruction. o, u.K.: o

u P.

d la, la. 2003. B a d Wk c Z.

iaa lab oaza, t.

df, mak. 2001. Global Governance and the New Wars: The Merging o

Development and Security. l: Z Bk.

ea, saa, a a ta. 2008. B ep


117/122

a la la ta: l m P r

y. Smart Lessons. ic, Wa, d.c.

a, Ja. 2004. W d s c Wa la s m l ta

o?Journal o Peace Research 41 (3): 275301.

. 2007. e dp, i, a c Wa. sa

u, dpa Pa s, Pa A, ca.

gaa, ca, a maa la. 2001. Conict Sensitive Approaches

to Development: A Review o Practice. l: iaa A,

saw.

gaz, K. 1997. Wa PW Wa ii W: s epa

t a a ta Appa. i da t, ., War and

Ethnicity: Global Connections and Local Violence. r, n.y.:

u r P.

g, Aa. 2000. t Pa s a Pa. The Brown Journal o

World Aairs 7 (2).

hzb, Bja, a Aw W. 2006. The PPD Handbook: A

Toolkit or Business Environment Reormers. Wa, d.c.: u.K.

dpa iaa dp, W Bak, ic, oecd

dp c.

hb, d. 2000. r, g a P v

c.. Ploughshares Monitor. 21 (2).

hp, maaa. 2003. Economics and Violent Conict. cab,

ma.: haa u P.

iaa A. 2006. Conict Sensitive Project Finance: Better Lending

Practice in Conict Prone States. l: iaa A.


118/122

J, Paa. 2006. o lk bw v c a c

P: hw m d W ra Kw? cPrc Wk Pap 61.

u s, i dp s.

. 2007. o lk bw v c a h P:

hw m d W ra Kw? microcon ra Wk

Pap 1. u s, i dp s.

Ka, ma. 1999. New and Old Wars: Organized Violence in a Global Era.

Pa A, ca.: sa u P.

K, da. 1998. t e v c Wa.

Ap Pap 320. o: o u P,

iaa i sa s.

. 2000. i a d v. i ma Ba a

da m. ma, ., Greed and Grievance: Economic Agendas in

Civil Wars. B, c.: l r.

. 2001. t Pa e Wa. i a swa a vap

za, ., War and Underdevelopment. Volume 1: The

Economic and Social Consequences o Conict. o: o

u P.

Kw, c. l., a h. l. s. 1999. t r ra rwaa

g. Communication Abstracts 22 (3).

la, Bja. 2005. t Pa s a gw a sa:

A la rw. dpa iaa dp,

l.

maa, Ja, . 2002. t nw haaa: A rw t

gba haaa A. rp 11. haaa P

gp, l.


119/122

mak, Ka a Ba A. 2008. A s c-A

c: da W n o. Smart Lessons, ic,

Wa, d.c.

ma, da, a hk nzk. 2005. e Aa c Wa:

Wa W Kw, Wa W n Kw. d Pap 2005-07.

u na uW i dp e

ra, hk.

ma, ca. 2007. Implem a Bee Pa a P-

e: t ca s sa. Pa a a

Been Aa c, ob 2007, cap tw, s Aa.

. 2008. da a d ipa B-

eab e r a P-c e. Smart

Lessons. ic, Wa, d.c.

m, rb, a a Qa. 2006. t i ca P- c

sa. W Bak i, Wa, d.c.

o-Aa, naa yaa. 2009. Reorm Communications Checklist. ic,

Jab.

raa, saa, Bja hzb, J c, a Ka saaj.

2007. sa ca B e r:

A g sak ea a r P. ic,

Wa, d.c.

sab, maa, a raa na. 2006. g m Baa!

Smart Lessons. ic, Wa, d.c.

s, Ja. 2007. A g e gw Pa Pa

rb c. usAid, Wa, d.c.


120/122

swa, a. 2002. r ca v c dp

c. British Medical Journal 324 (7333): 34245.

swa, a, a v. za. 2000. War and Underdevelopment: The

Economic and Social Consequences o Conict. o, u.K.: o

u P.

swa, ., . hp, a n. la. 1997. c c dp

c la Qa a c: A epa ow

e a sa cq. Oxord Development

Studies 25 (1): 20.

ta, mak, . 2004. e c: t n ga P

rp. rp ep ca c e

a dp. rp 436. a, o.

undP. 2006. National Human Development Report Liberia: Mobilizing

Capacity or Reconstruction and Development. ma/nw yk.

W Bak. 2002 t c Aa awk (cA): i

c-a oba dp. da n 5.

sa dp dpa, Wa, d.c.

. 2003. Breaking the Conict Trap: Civil War and Development Policy.A

P ra rp. W Bak, Wa, d.c.


121/122


122/122

ifi-investment climate reform in conflict affected countries

Documents