Helpdesk

Question
Economic Growth and Statebuilding: Please identify literature on the linkages between on the one hand economic growth and employment generation, and on the other hand peace and statebuilding in conflict-affected and fragile states.

Helpdesk response
Key findings: There is very limited literature that explicitly discusses linkages between (1.) economic growth and employment generation and (2.) state- and peace-building. As such, this helpdesk report relies on literature that makes implicit references to such connections. The following are a summary of key points that emerged from the review. The review did not uncover any information on the gendered nature of these linkages.

• Neoliberal policies for promoting economic growth have the potential to undermine state legitimacy
• A key difficulty with the statebuilding process is limited state resources.
• The inability of the state to address societal problems and to promote economic and employment opportunities has limited state legitimacy and contributed to social unrest
• Building public trust in institutions and positive perceptions of the country’s future are important in promoting growth.
• Taxation is of particular importance in statebuilding
• Greater attention to job creation, inequalities and social protection is believed to contribute more effectively to statebuilding and peacebuilding processes
• Both agricultural and industrial production have the potential to generate growth and substantial employment
• Rapid privatisation of state-owned enterprises can be damaging from a statebuilding perspective as they can be exclusionary
• The commodification of land can undermine peacebuilding by creating generations of disaffected landless populations
• Focus on the natural resource sector can undermine state- and peace-building efforts
• Attention to spatial and regional inequalities is also important in growth strategies and in peacebuilding.

Full response: http://www.gsdrc.org/docs/open/HD656.pdf