ABSTRACT
The success of economic reconstruction keys to peacebuilding efforts. The economic reconstruction is sine qua non for security and political stability and national reconciliation. Effective economic policymaking in war-torn countries must focus on ensuring that the peace objective should prevail at all times during the economics of peace phase. Economic policymaking in countries coming out of crises following either conflict, natural disasters, or financial collapse must be fundamentally different from policymaking under normal development for few main reasons. Because peace-related activities have important economic and financial consequences and should be given priority in budget allocations, the peace and development objectives often clash during the transition to peace. The large physical presence of the international community in the reconstructing country often creates serious economic distortions. Thus, foreign interveners should let national negotiators, local leaders, and communities determine what their economic needs and priorities are, and the government should let the insurgents determine their preferred venue for reintegration.
