ABSTRACT
This chapter discusses what the international community can do to assist with the transition. State failure is costly in human and economic terms, not only to the citizens of their own state, but even more so to other states in the region. The consequences of state failure are dramatic for its citizens. State failure can have three distinct consequences: It fails to provide an environment in which poverty reduction is feasible, it results in a failure to provide basic security for citizens, and it hurts citizens in neighboring countries. Due to their inability to generate economic growth and opportunities for their citizens, failing states are at higher risk of experiencing large-scale violent conflict. These conclusions are based on the study by Collier and Anke Hoeffler. They offer evidence for a peace dividend: during the post-conflict decade, countries experience an extra one percentage point growth per year.
