TY - BOOK ID - 133358402 TI - The Investment Climate In Post-Conflict Situations AU - Mills, Rob AU - Fan, Qimiao PY - 2006 PB - Washington, D.C., The World Bank, DB - UniCat KW - Bank Policy KW - Banks and Banking Reform KW - Capacity Enhancement KW - Conflict and Development KW - Contract KW - Contract Enforcement KW - Debt Markets KW - E-Business KW - Emerging Markets KW - Enabling Environment KW - Exchange KW - Finance KW - Finance and Financial Sector Development KW - Financial Literacy KW - Good KW - International Economics & Trade KW - Investment KW - Investment Climate KW - Labor Markets KW - Local Capacity KW - Macroeconomic Instability KW - Macroeconomic Stability KW - Macroeconomics and Economic Growth KW - Physical Security KW - Political Economy KW - Post Conflict Reconstruction KW - Private Sector Development KW - Property KW - Property Rights KW - Regulatory Framework KW - Return KW - Security KW - Social Capital KW - Social Conflict and Violence KW - Social Development KW - Social Protections and Labor KW - Trade and Regional Integration UR - https://www.unicat.be/uniCat?func=search&query=sysid:133358402 AB - This paper is a policy review of the role of investment climate in post-conflict situations. It summarizes the broad range of ways in which conflict negatively affects the investment climate, from macroeconomic instability to a degraded regulatory framework. It stresses that attention needs to be paid to the broader "enabling environment," including institutions, governance, capacity, and social capital. It suggests that a vibrant private sector underpinned by a good investment climate is particularly important in the post-conflict recovery phase for three reasons: it generates employment, provides public services where the state has retrenched, and builds social capital. By addressing these important "greed and grievance" factors, the private sector helps reduce the likelihood of a return to conflict. The paper concludes by distilling key lessons relating to the management of the post-conflict reform process. Despite the importance of a good investment climate, greater effort is needed to ensure that private sector development reforms are included in the first round of post-conflict policymaking. Local ownership of reforms and enhanced local capacity to implement them is key to sustainable improvements in the investment climate. Development partners have an important role to play in facilitating dialogue and promoting partnerships between public and private sector stakeholders. At the same time, development partners need to ensure that their presence in fragile post-conflict economies does not damage the very sector they are trying to support. ER -