ABSTRACT

The World Bank Group was established to support the reconstruction of Europe following World War II. The post-Cold War era brought a proliferation of intrastate conflicts. These intrastate conflicts are undermining development in a wide range of countries, threatening national and regional stability in some areas and diverting international attention and scarce resources from pressing development problems. This chapter considers an array of issues that arises during postconflict reconstruction and how the Bank seeks to assist countries emerging from conflicts. Postconflict reconstruction supports the transition from conflict to peace in a war-torn nation through ‘‘the rebuilding of the social economics framework of the society’’ (World Bank, 1999, p. 14). Some of the problems with postconflict reconstruction projects the Bank helps with are: widespread population displacement; damaged infrastructure, including schools, health facilities, housing

and other buildings; reduced productive capacity; a devastated government revenue base; an erosion of human and social capital; greatly reduced security; and an increased proportion of people needing social assistance (World Bank, 1999, p. 15). Among the goals of postconflict reconstruction projects are to create the conditions to jumpstart the economy by restoring key financial, legal, and regulatory institutions; to reestablish a framework for governance so that civil society can work freely; and to repair physical infrastructure. The Bank supports health and educational needs through reintegration of internally displaced people as well to demobilize soldiers and combatants.