ABSTRACT
This chapter explains economic aspects of post-conflict development. It devotes attention to the tax base in post-conflict countries. But it is necessary to build up local capacity, to use the familiarity of local groups to correctly assess challenges and respond appropriately. But since means are limited, different priorities with regard to infrastructure development can easily lead to new conflicts. Instead, the developmental state model may offer some inspiration when it comes to finding ways to alter incentives for states and businesses alike towards an alliance favouring economic development. International organizations can give advice, international financial institutions can provide credit, foreign governments can give budget support, NGOs can contribute humanitarian assistance, and diaspora groups may add educated manpower. The EU has difficulties in speaking with one voice: not only do governments of member states find it difficult to come to an agreement, the multitude of EU agencies itself is astonishing for every outsider.
