ABSTRACT
This chapter concentrates on the process of encouraging economic growth in post-conflict environments and widens the range of private actors examined. It examines how international investment affects the delivery of security and the local economy, particularly the post-conflict construction sector. In addition, the structural changes to the economy consist of a number of elements that combine to undermine economic effectiveness. Typically, this involves a retreat from formal employment through activities like manufacturing and into economic activities that may be carried out in conflict situations - usually involving little investment and low barriers to entry and relying on labour power. Macroeconomic research on recovering economies is somewhat depressing reading, but what it does show clearly is that sequencing is important. Conflict sensitivity requires an initial focus in investment rather than austerity or measures to reduce inflation, which are better left to later in the day once the economy is underway.
