ABSTRACT
Economic instruments are a subset of policy tools that intend to infl uence the behaviour of a targeted individual or group. With regards to a peace process, they manifest themselves in different ways depending on the type of mediation strategy used. If mediation is about facilitating communication between the parties, economic instruments mainly relate to the generation and sharing of new information about the economy. If mediation is about assisting the formulation of specifi c provisions they can involve propositions about taxation arrangements, income sharing mechanisms, or budget transparency. If mediation is more interventionist, economic instruments can include development assistance, investment, or even sanctions. While manipulative instruments are mainly applied by third parties that operate in the orbit of peace processes, a mediator must carefully monitor in what directions the parties are being pushed or pulled (Barnes and Griffi ths 2008: 14).
