CIAO DATE: 04/2009
August 2008
Economic development is essential for every country but it is especially crucial for those countries in the aftermath of protracted armed confl ict, needing peacebuilding, recovery and reconstruction. Development aid alone cannot transform damaged economies, and it is here that foreign direct investment (FDI) can be a valuable tool to revitalize industries, rebuild infrastructures and eventually even eliminate the need for aid. Regard for history, economic experiences, local cultures and tensions should inform the adoption of a post-confl ict private investment regime that is specifi cally tailored to the country’s needs. Encouraging a form of FDI that benefi ts post-conflict zones relies upon prioritizing quality of investment, rather than quantity. The task of developing countries, and particularly those emerging from years of confl ict, cannot be left solely to market forces – FDI can only be justifi ed if it is high value and makes a real contribution to the host economy, in terms of job-creation and spill-over of knowledge or technology.
Resource link: Post-Conflict Countries and Foreign Investment [PDF] - 130K