ABSTRACT
This chapter concentrates on the challenges of encouraging economic growth in post-conflict environments and will widen the range of private actors examined. There is a considerable consensus within the academic literature and across development agencies that there is a positive relationship between economic growth and peacebuilding. One reason why post-conflict countries become so heavily aid-dependent is that access to their own domestic revenue sources can be problematic. This can be because of the principal agent problem, although Libya. Macroeconomic research on recovering economies often makes for somewhat depressing reading, but what it does show clearly is that sequencing is important. As a result, the approaches to socio-economic recovery tend to be very broad, incorporating physical and human infrastructure, institutions, public health and other services, social welfare, land reform and the construction of financial institutions all designed to provide a healthy market framework. Donor strategies for encouraging private sector development have been subject to a wide range of debate.
