Local Economic Recovery in Post-Conflict Guidelines First edition ILO Programme for Crisis Response and Reconstruction (ILO / CRISIS) Local Economic Recovery inPost-Conflict Guidelines First edition ILO Programme for Crisis Response and Reconstruction (ILO/CRISIS) CopyrightInternationalLabourOrganization2010 First published 2010 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, shortexcerptsfromthemmaybereproducedwithoutauthorization,onconditionthatthesourceisindicated.Forrights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH- 1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations maymakecopiesinaccordancewiththe licenses issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Local economic recovery in post-conflict : guidelines / International Labour Office, ILO Programme for Crisis Responseand Reconstruction (ILO/CRISIS). - Geneva: ILO, 2010 1 v. ISBN: 978-92-2-123639-9; 978-92-2-123640-5 (webpdf) International Labour Office guide / promotion of employment / employment creation / economic reconstruction / local economic development / armed conflict 13.01.3 ILOCataloguingin PublicationData The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material thereindonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheInternationalLabourOfficeconcerningthelegal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign ofdisapproval. ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct fromILOPublications,InternationalLabourOffice,CH-1211Geneva22,Switzerland.Cataloguesorlistsofnewpublicationsare available free of charge from the above address, or by email:pubvente@ilo.org Visit our website: www.ilo.org/publns Printed in Switzerland In post-conflict situ ations, employment is a major contributing factor to achieve short-term stability,reintegration,socio-economicprogressandsustainablepeace.Jobcreation providescommunitiesandindividualsthemeansforsurvivalandrecoveryandoffersa constructive and positive alternative to social unrest. Amidstdestructionandirreplaceablelosses,theendofconflictscancreatewindowsof opportunity for social and economic reform. It is a chance which societies in transition from war to peace cannot miss, and one in which the international comm unity can be very helpful. Local comm unities annihilated by wars are usually the first to activate imme diate responses. Solidarityandhardworkofaffectedwomenandmenplayapivotalroleinresuming economicactivities, revitalizingsocialsafetynetsandrepairingdamagedinfrastructures. These spontaneous efforts are tangible evidence of the positive and constructive attitude of local comm unities, their resilience and ability to ada pt and transform knowledge andskills. Howe ver, existing vulnerabilities, endemic poverty and fragile peace might generatefurther inequalities, preventor slow downthe creationof genuine jobopportunities andultimately threaten the sustainability of these coping strategies. Theroleofinternationalactorsistoencourageendogenouseffortstowardsthe achieveme ntofadurablesocialandeconomictransformationwithinwa r-torn com munities. The most powerful instruments of this actionare the developmentoflocal capacities andthecross-fertilization ofexperiences amongcountriesfacedwithsimilar challenges, app lying combined creative solutions from local and global knowledg e. Methodologicalandoperationalframeworks suchastheseGuidelinestopromoteLocal Economic Recovery (LER) are in factconceivedto support these communitydevelopment processes. They system atize good practices andlessons learnt in a wayto enabledecision makers to operate on the right track and take into consideration the main factors of succ ess of economic recovery programme s. While providing guidance, the LER Guidelines do notoffer readily made solutions. Such solutions will eme rge from the broad participation ofeconomic stakeholders into consultations, information sharing and decision-making processes. The United Nations recognizes that a comprehensive and participatory approach such as the LER supports inclusive, job-rich growth and prevents the perpetuation of the causes of social tension and instability. The crucial link between employment and peace building has received full recog nition with the UN Secretary-Generals approval of the United Nations Policy for Post- Conflict Employment Creation, Income Generation and Reintegration in May 2008. Thisnew UN Policycontributestoacommonunderstandingandapproachtoemploymentcreation and reintegration in post-conflict situations, which is fully grounded on LER. LER strategies and interventions need to be shaped in such a way as to achieve gender equality in the world of work, as conceived within the ILO Decent Work Agenda. Gender equalitycan make a major contribution to a sustainable peace and long-lasting development. I trust that this new instrument will help to bring tangible results on the way to peace and progress. Jos Manuel Salazar-Xirina chs Exe cutive Director ILO Employment Sector Foreword ii 3 AlfredoLazarte-Hoyle The development of the Local Economic Recovery Guidelines (hereinafter the Guidelines) for post-conflict settings has been conceived within the framework of the UN-wide Policy forPost- Conflict Employment Creation, Income Generation and Reintegration (PCEIR). In particular, the Guidelinessupporttheexecutionoftheso-calledTrackBprogrammes,aimedatboosting economic recovery to stimulate employment creation and facilitatereintegration. The Guidelines have been developed by the ILO with the sponsorship of the Cluster Working Group on Early Recovery (CWGER), as a contribution to the roll out of the Policy. They represent anattempttosystematizeexistingrelevantpracticesandmethodologiesforarea-based programminginthefieldofeconomicrecovery.Inaddition,theyaddressthescarcityof guidanceforlinkingassessmenttodecisionmaking,basedontheprinciplethattheeffortof gathering and analysing information must be exclusively finalised at making robust decisions. Local economic recovery is first of all a result, achieved by means of an area-based approach thatcapitalisesonlocalresourcesandaimsatre-energizingeconomicactivitiesaftera conflict, in a way to create jobs for the local labour force. More jobs are a powerful alternative to conflict and war-related livelihoods. They can lessen tensions and prompt a dialogue around constructive issues, thus leading to a sustainable peace. TheseGuidelinesareinspiredby thebeliefthatlocaleconomic recovery, ifcarriedoutin an inclusivemanner,cancontributesignificantlytoincreasingself-relianceand,ultimately,toa swiftandsustainabletransitionfromrelieftodevelopment.Ifwesucceedinsettinginplace earlyrecoveryplanstargetingthelocaleconomy,thentheeffortstowardseconomic development will start sooner and will be more sustainable. Aspost-conflictsettingsdiffersignificantlyonefromanotherandrequiretailor-madesolutions, theseGuidelineshavebeendesignedtobeasversatileaspossible.Theiraimistosupport decisionmakersandpractitionersinmakingpertinentstrategicdecisionsand,onthebasisof those,planningandimplementingcontext-specificLERinterventions.Decisionsareinformedby targetedfact-findingandanalysisefforts,andarefollowedbyconsequentactions.Such considerationsarereflectedinthestructureofPartIIoftheGuidelines,whichisbasedonthese three main TaskGroups: factfinding, decisionmakingandaction taking. Withinfiveyears,wewouldliketoseethattheLERapproachisenhancedandputinto practiceinagrowingnumberofconflict-affectedareas.ILOsandCWGERsaimisto disseminatethisapproachinawaythatotheragenciesaswellasnationalandlocal counterparts may take ownership of it and take a leading role in its implementation. We aim at a continuous improvement of the contents of these Guidelines. To that end, it is our intentiontomakesurethatuserslessonslearntandgoodpracticesaredocumentedand integrated into future action. In the two years following the publication of these Guidelines, the readerswillhavetheopportunitytocontributetotheirimprovementbysharingwithustheir views,suggestions,andinputs.Wealsowelcomeanyrolloutinitiativeinwhichinterested organisations may wish to embark, and we recommend keeping us posted of the challenges, thegoodpracticesandtheoutcomes.Youcansendsuggestions,comments,inputsand requests for technical advice toCRISIS-TOOLS@ilo.org. Director ILO Programme on Crisis Response and Reconstruction (ILO/CRISIS) JenniferWorrell Chair of the Global Cluster Working Group on Early Recovery (CWGER), UNDP Preface 4 5 Foreword ..................................................................................................................................... i Preface ....................................................................................................................................... iii Table of Contents ................................................................................................................. v List of Tables ................................................................................................................................... vii List of Figures ................................................................................................................................. viii Acknowledgments ......................................................................................................................ix Acronyms .................................................................................................................................. xi Overview of the Guidelines ..................................................................................................1 About Local Economic Recovery .....................................................................................1 The UN Policy Framework for Post-conflict LER ......................................................................... 2 About Early Recovery .......................................................................................................3 About the LER Guidelines ..................................................................................................... 3 Who Should Use the Guidelines? .......................................................................................... 4 How to Use the Guidelines? .................................................................................................. 5 Part I. LER Fundamentals .............................................................................................................. 9 Chapter 1. LER Conceptual Basis .................................................................................................. 11 Overview .............................................................................................................................. 11 1.1. The LER Approach in Post-conflict ..................................................................................... 12 1.2. The Economic Space: Territorial Capital and Economic Flows .................................... 20 1.3. Guiding Principles of LER ................................................................................................... 24 1.4. Making LER Happen ........................................................................................................... 28 1.5. The Transition from LER to LED ......................................................................................... 31 To Know More................................................................................................................. 34 Chapter 2. Context, Issues and LERApplications ......................................................................... 35 Overview .............................................................................................................................. 35 2.1. The Post-conflict Economic Setting .............................................................................. 36 2.2. Post-conflict Employment Creation and Income Generation .................................. 44 2.3. LER and People with Specific Needs ............................................................................ 52 2.4. Reintegrating Ex-combatants Through LER ....................................................................... 57 2.5. Reintegrating Returning and Resettling IDPs and Refugees through LER ................... 62 To Know More................................................................................................................. 68 Part II. LER in Action .....................................................................................................................71 Chapter 3: Fact finding ............................................................................................................. 73 Overview .............................................................................................................................. 73 3.1. Techniques, Tips and Tools ................................................................................................ 74 3.2. Generic Profiling of Post-Conflict Settings .................................................................... 81 3.3. Initial Rapid Assessment (IRA) ........................................................................................... 82 3.4. Rapid Stakeholder Identification for IRA ....................................................................... 85 3.5. Assessment of Local Procurement Opportunities ......................................................... 89 3.6. Local Economic Profile .................................................................................................. 90 3.7. Additional Assessments .................................................................................................... 101 3.8. Tracking Progress and Performance (M&E) ............................................................... 109 To Know More............................................................................................................... 114 Chapter 4. Decision making ................................................................................................... 115 Overview ............................................................................................................................ 115 4.1. Methods to Support Decision Making ................................................................... 116 4.2. Is LER applicable? And How? ........................................................................................... 125 4.3. Whom to Work With and How to Coordinate? ...................................................... 131 4.4. Where to Implement LER? .......................................................................................... 138 4.5. Which Beneficiaries?................................................................................................... 142 4.6. Which Strategic Economic Sectors? ........................................................................... 144 4.7. What Economic Recovery Issues to Be Tackled? ...................................................... 146 4.8. What Objectives to be pursued in the Mid-term? .................................................. 149 Table of Contents 6 4.9. Which One(s) Among the Alternative Strategy Directions? .................................. 155 To Know More............................................................................................................... 160 Chapter 5. Action Taking ....................................................................................................... 163 Overview ............................................................................................................................ 163 5.1. Advocating for LER at Different Levels ....................................................................... 164 5.2. Increasing Local Procurement .................................................................................... 167 5.3. Financing LER ................................................................................................................... 170 5.4. Implementing Small-scale Livelihood Activities .......................................................... 174 5.5. Prompting Participation and Mobilizing Stakeholders ........................................... 177 5.6. Building Capacities in the Mid-term ...................................................................... 184 5.7. Examples of Mid-term Interventions ............................................................................ 189 To Know More............................................................................................................... 196 Part III. Toolboxes ....................................................................................................................... 199 Toolbox: Fact finding.............................................................................................................. 201 List of tools in Toolbox ....................................................................................................... 201 Tool 1-A. Guidelines: Participatory data collection ...................................................... 201 Tool 1-B. Guidelines: SWOT analysis ...................................................................................... 204 Tool 1-C. Checklist: Generic Conflict profile ...................................................................... 206 Tool 1-D. Guidelines: Rapid stakeholder identification & analysis .................................... 207 Tool 1-E. Templates: Data collection and storage ............................................................. 209 Tool 1-F. Questionnaire: Business Survey ............................................................................... 223 Tool 1-G. Questionnaire: Vulnerability assessment ........................................................... 230 Tool 1-H. Guidelines: Establishing Objectives PerformanceIndicators .................................. 233 Toolbox: Decision Making ...................................................................................................... 235 List of tools in Toolbox ....................................................................................................... 235 Tool 2-A. Sample: Job Description for an LER Expert/Facilitator ...................................... 235 Tool 2-B: Guidelines: Territory selection ............................................................................ 237 Tool 2-C. Guidelines: Strategic Sector Selection ............................................................... 238 Tool 2-D: Guidelines: Sector-focused workshop ............................................................... 242 Tool 2-E. Guidelines: Technical Analysis of Strategy Directions ....................................... 247 Tool 2-F. Guidelines: Swing Weighting .................................................................................... 249 Tool 2-G. Guidelines: Final Value Analysis .............................................................................. 252 Tool 2-H. Guidelines: Brainstorming & Organizing Alternatives ........................................ 256 Toolbox: Action taking ..................................................................................................... 259 List of tools in Toolbox ....................................................................................................... 259 Tool 3-A. Guidelines: Facilitation Techniques ................................................................... 259 Tool 3-B. Checklist: Conflict Sensitivity Analysis ..................................................................... 263 Glossary ....................................................................................................................................... 265 Annexes........................................................................................................................................ 275 Annex I. Overview of Assessment Techniques ................................................................. 276 vii Table 1. Snapshot of LERimplementation ................................................................................ 6 Table 2. LER in a nutshell ......................................................................................................... 12 Table 3. LER domains of action and examples of objectives ................................................ 14 Table 4. Territorial capital and factors that inhibit/promote its formation ............................ 21 Table 5. Overarching guiding principles and action points ................................................ 24 Table 6. Features of LER and LED ............................................................................................ 31 Table 7. The most common socio-economic effects of armed conflicts ............................ 39 Table 8. Examples of measures for labour demand andsupply ........................................... 46 Table9.Driversandchallengesfacilitatingorconstrainingeconomicrecovery ................ 47 Table 10. DOs and DONTs to stimulate local procurement ................................................... 49 Table 11. Objectives for each special target groups .......................................................... 53 Table 12. Gender-based issues inpost-conflict ..................................................................... 55 Table 13. LER interventions to facilitate ex-combatantsreintegration.................................. 61 Table 14. Examples of LER interventions to facilitate the reintegration of returnees and re- settlers ............................................................................................................................................ 66 Table 15. Overview of fact-finding and analysis activities across the LER process .............. 75 Table 16. Guiding principles for good data collection ........................................................ 77 Table 17. Recommendations for field data collection ........................................................ 77 Table 18. Gender analysischecklist........................................................................................ 80 Table19.Informationrequirementsforthegenericprofilingofthepost-conflictsetting .... 81 Table 20. Checklist: IRA informationrequirements ................................................................. 83 Table 21. Key secondary datasources .................................................................................. 84 Table 22. Categories of stakeholders and examples ............................................................ 85 Table 23. Suggested reporting format ................................................................................... 88 Table 24. Information requirements for Local Economic Profile ............................................ 91 Table 25. Information requirements for Post-conflict Needs Assessment("Light") ................ 93 Table 26. Examples of target groups and required competencies .................................... 108 Table 27. Types of indicators ................................................................................................. 113 Table 28. Sample of indicators for an LERprogramme ....................................................... 113 Table29.Comparisonbetweenquantitativemulti-criteriaandscenario-buildingmethods fordecisionmaking ............................................................................................................... 119 Table 30. Post-conflict scenarios and related applications of LER ...................................... 127 Table 31. National implementation capacities and LERscenarios ..................................... 131 Table 32. Stakeholder category and role in the LERimplementation ................................ 134 Table 33. Criteria and corresponding favorable conditions according to size of territory 140 Table 34. Criteria to rank territories .................................................................................... 141 Table 35. Classification of major ISIC divisions ...................................................................... 144 Table 36. Criteria for ranking strategicsectors ..................................................................... 144 Table37.Exampleofissues,thetypeofterritorialcapitalconcernedandmaindomainsof LER action .............................................................................................................................. 147 Table 38. Do's and don'ts when identifyingissues ................................................................ 148 Table 39. Examples of issues and related mid-term objectives ........................................... 152 Table 40. Development objectives, immediate objectives and projectideas.................. 158 Table 41. Authority level/scope and advocacy purposes and targets............................... 165 Table 42. Examples of goods and services that can be procured locally ......................... 167 Table 43. Checklist for increasing localprocurement ......................................................... 169 Table 44. Stakeholder Participation Requirements .............................................................. 180 Table45.PotentialparticipantsintheLERStakeholderGroup(public/privatesector) ..... 180 Table46.Domainsofaction,examplesofobjectivesandtypesofinterventions.............. 189 Table 47. Overview of assessmenttechniques .................................................................... 276 List of Tables 8 Figure 1. Programmes for post-conflict employment creation, income generation and reintegration .......................................................................................................................2 Figure 2. Representation of the economic flows between rural and urban nodes ............. 19 Figure 3. Alternation of fact-finding, decision-making andaction-taking................................. 28 Figure 4. Task Groups triangle: Making LERhappen .................................................................... 29 Figure 5. Alternation of fact-finding, decision-making andaction-taking ................................ 33 Figure 6. The linkage between productive livelihoods andemployment ................................ 45 Figure 7. The three Tracks of Employment Programming in Post-conflict .............................. 51 Figure 8. Stakeholders profiling and socio-dynamic (J.C. Fauvet 1997)............................... 87 Figure 9. Degrees of stakeholder participation ...................................................................... 178 List of Figures 9 FrancescaBattistinoftheILOProgrammeonCrisisResponseand Reconstruction(ILO/CRISIS) hasconceivedanddraftedtheseGuidelineswiththesupportandsupervisionfromAlfredo Lazarte-Hoyle, Director of ILO/CRISIS and Federico Negro (ILO/CRISIS). The development of theseGuidelines wouldnothavebeenpossible withoutthesponsorship and the trust that was granted to us and to this project by the many colleagues of the Cluster WorkingGrouponEarlyRecovery(CWGER) andthesupportandadviceacross theproject formulation and negotiation provided by Donato Kiniger-Passigli (ILO/CRISIS). We thank all the experts that contributed in both the initial and last stages with their knowledge to improve the Guidelines and making them what they are today. In particular, we express our gratitude to Gerrit McGowan, Jos Manuel Pinotes, Claudia Coenjaerts (ILO ED/EMP), Carlien Van Empel (EMP/COOP) and Monica Lisa (DELTA, ILO International Training Centre). We also thank Kees Van Der Ree, Chief of the ILO LED Team, for having made available Brian Weito support us during a period. Greatappreciationgoesaswelltoallthepeerreviewers,namelyKholoudAlkhaldi(ILOSub Regional Office for North Africa), Fabrizio Andreuzzi (UNDP New York), Paul Crook (ILO Somalia Programme),SophieDeConinck(ILOInternationalProgrammefortheEliminationofChild Labour),AlexiaDeleligne(ILO/CRISIS),LucaFedi(ILOIraqProgramme),MartinGasser(ILO InternationalTrainingCentre),GerryMcCarty(ILOKathmandu),LauraMeissnerandTracy Gerstle(SEEPNetwork),RogerNkambu(ILOKinshasa),JulienMagnat(ILORegionalOfficefor theArabStates),GaelaRoudy-Fraser,ToveSagmoandYasukoShimizu(UNHCROperational Solutions and Transition Section - OSTS). Last but not least, a special thank goes to Lily Samuels, who patiently proof-read and edited the text, andwhomadesure, jointlywithAlexia Deleligne,that gender was adequatelymainstreamed. Acknowledgments 10 11 BDSBusinessDevelopmentServices CAAFAGChildren Associated with Armed Forces and Groups CAPConsolidated Appealprocess CBOCommunity-BasedOrganization CERFCentral Emergency ResponseFund CFWCash-for-work CHFCommon Humanitarian Fund CWGERCluster Working Group on EarlyRecovery DDRDisarmament,DemobilizationandReintegration DFIDUnited Kingdom Department for DevelopmentCooperation DRCDemocratic Republic ofCongo ECOWASEconomic Community of West Africal States ECOWARNECOWAS Early Warning and Response Network EIIPEmployment Intensive Investment Projects EMMAEmergency Mapping and Analysis Tool EPESEmergency Public EmploymentServices FAFlash Appeal FAOFoodandAgricultureOrganisation FFWFood-for-work FHHFemale-Headed Households GBVGender-basedviolence GET AheadGender + Entrepreneurship Together (training package) GTZDeutsche Gesellschaft fur Technische Zusammenarbeit(GmbH) IASCInter-Agency StandingCommittee IAWG-DDRInter-Agency Working Group on DDR ICRCInternationalCommitteeof the RedCross IDDRSIntegratedDisarmament,DemobilizationandReintegrationStandards IDPsInternally DisplacedPersons IFRCInternational Federation of Red Cross and Red CrescentSocieties IGAsIncomeGenerating Activities ILOInternational LabourOrganization/Office ILO/CRISISILO Programme for Crisis Response and Reconstruction INGOInternational Non-GovernmentalOrganization IRAInitialRapidAssessment IRCInternationalRescue Committee ITC ILOInternational Training Centre of the ILO JICAJapan International CooperationAgency KABKnow About Business LATLivelihoodAssessmentToolkit Acronyms xii LBIPLabour-basedinfrastructure projects LBTLabour-based technology LEDLocal EconomicDevelopment LERLocalEconomicRecovery MDTFMulti-donorTrustFund MDRPMulti-CountryDemobilizationandReintegration Program MFIMicro FinanceInstitutions MSEsMicro and Small Enterprises MSFMdecinsSansFrontires MSMEsMicro,SmallandMediumEnterprises NBEGNorthBahrEl-GhazalState (Sudan) NFINon-Food Items NGONon-GovernmentalOrganization OCHAUN Office for the Coordination of Humanitarian Affairs OGNOperationalGuidanceNote PBFPeaceBuilding Fund PBSOPeaceBuildingSupport Office PCEIR(UNPolicyon)Post-conflictEmploymentCreation,IncomeGenerationandReintegration PMUProjectManagementUnit PPPPublic-PrivatePartnership PSDPrivateSectorDevelopment RNFARural Non-Farm Activities SDCSwissAgencyforDevelopmentand Cooperation SEEPSmallEnterpriseEducationandPromotion(SEEP) Network SIYBStartand Improve YourBusiness SMEsSmall and Medium Enterprises SWOTStrengths,Weaknesses,OpportunitiesandThreats ToTTraining ofTrainers TREETraining for Rural EconomicEmpowerment UNUnitedNations UN HABITATUnited Nations Human Settlements Programme UNCTUNCountryTeam UNDPUnitedNationsDevelopmentProgramme UNEPUnitedNationsEnvironment Programme UNDGUnitedNationsDevelopmentGroup UNHCRUnitedNationsHighCommissionerforRefugees UNICEFUnited Nations Childrens Fund UNOPSUnited Nations Office for ProjectServices UNTFHSUN Trust Fund for Humanitarian Security USAIDUnitedStatesAgencyforInternational Development VCAValue ChainAnalysis WANEPWestAfricaNetworkfor Peace-building WBWorld Bank WFPWorldFood Programme 1 About Local EconomicRecovery Socio-economicreintegrationofconflict-affectedgroupsisintimatelyrelatedtothecapacityof localeconomiestocreatejobopportunities.Afteryearsofconflict,localeconomiesareoften stagnantandunabletodoso.Thisismainlyduetothereducedpurchasingcapacity,the disruption of commercial circuits, the loss of productive assets, the inadequacy of infrastructure, the poor and inadequateskillsof the labour force, and the risks and instability inhibiting investments. Not being attractive for private investments, such economies are not able to reverse the negative trendaffectingthem.Insuchacontext,fundsallocatedforpost-conflictpeace-building, recovery andreconstructionmustbetappedinordertofillthesegapsandreactivatelocaleconomies. Substantiveeffortsmustbemadetomobilizeandeventocreatecomplementarysourcesof funding that progressively replace aid1. The implementation ofLER entails three types of tasks inwhich localstakeholders participate in severalways:fact-finding,decision-making,andaction-taking.Small-scalelivelihood recovery/creationactivitiesareexecutedasearlyaspossible.Theytargetconflict-affected communitiesandgeneratequickpeacedividends.Inthemeanwhile,localstakeholdersare progressivelyaccompaniedthroughprocessesofmid-termeconomicrecovery,withdifferent degreesandtypesofparticipationrangingfromsimpleinformation-sharingtodecision-making, accordingtoboththespecificscenarioandtheircapacities.Suchprocessescontributeto peaceful and constructive dialogue and, ultimately, toreconciliation. At the core of mid-term action will be capacity-building of local actors that are relevant to LER, i.e. local authorities,financialandnon-financialserviceprovidersforbusinesscreationanddevelopment, entrepreneurs, workers organisations, community-based organisation (CBOs), etc. Increased capacities will enablelocal actors to gradually create and better seize local economicopportunitiesemergingacross recovery and reconstruction plans. The scope of livelihood activities expands as local capacities grow. ThepurposeofLERinitiativeswillbetore-establishaminimumofproductiveandcommercial functions within local markets that have been damaged by the conflict. In the long run, LER should evolveintolocaleconomicdevelopment(LED)strategies.InLED,participatoryplanningwillbe moresystematic,institutionalisedandfully bottomup,withtheinvolvementof abroaderbaseof local stakeholders. 1 Examples are saving schemes, remittance flows and other private sources of funding. Inpost-conflictruralandurbansettings,LocalEconomicRecovery(LER)isanarea-based approachstimulatingboththedemandandsupplysidesofaffectedmarkets.Intheshortrun,LER aimsatgraduallyreducingthedependencyonexternalaidthroughtemporaryjobsandincome generation.Inthelong-run,LERaimsatcreatingtheendogenousconditionsforthelocal economiestoreactivateandcreatejobopportunities. Whiledoingso,theapproachisconceivedtopromotereconciliation,socialinclusionand participationwithinthetargetedcommunities.LERcanthereforedecouplepoliticalandsecurity concerns from socio-economic development. LER is a time-bound and outcome-oriented process, as it takes advantage of the incoming flows of financial resources linked to post-conflict operations, and oftheeffortsand resources allocated toincreasesecurity, build state authorityand stabilize thecontext.Anoptimaluseoflocalassetsandopportunitiesispursuedbyencouraginglocal stakeholders participation as well as local procurement of goods and services. Overview of theGuidelines 2 The UN Policy Framework for Post- conflict LER InMay2008,theUNSecretaryGeneral,BanKi-Moon, endorsedtheUN-widePolicyforPost- ConflictEmploymentCreation,IncomeGenerationandReintegration.2Theobjectiveofthe PolicyistocontributetotheworkofthePeace-buildingCommissioninproposingmulti-agency strategies for post-conflict stabilization, reintegration, economic recovery anddevelopment. AccordingtothePolicy,programmingforemploymentcreationandreintegrationshouldbe structuredalongthreeconcurrentTracks,asshowninfigure1.Theseare:TrackA,focusedon stabilizing income generation and creating emergency employment; Track B, focused on LERfor employmentandreintegration;andTrackC,focusedonsustainableemploymentcreationand DecentWork.TheprogrammeTracksstartsimultaneouslyduringpeacenegotiations,buthave varying intensity and duration depending on the localsituation. Figure 1. Programmes for post-conflict employment creation, income generation and reintegration These Guidelines focus on Track B programmes. They start and progress according to necessity and donorsupport,andtheyeventuallyphaseoutascircumstancesdictate.Immediateactionsin such programmes consist of projects with short-term impact aimed at preparing the conditions for economicrecoveryandgeneratingquickpeacedividends.Atanearlystage,interventionsmay prioritize specific conflict-affected groups. The peak of Track B programmes is in thereintegration phase,asshowninthefigurebelow.Throughoutreintegration,theemphasismustshiftfrom targetingspecificconflict-affectedgroupstosupportingandrebuildinghostingcommunitiesasa 2 In recognition ofthecriticalcontribution of employment creation towards peace building, the formerUNSecretary General instructed the drafting of an UN-wide Policy (decision n. 2006/50 of 28 November 2006). The inter-agency exercise involved 19 agencies (UN and IFIs), and was co-led by the ILO and the UNDP Bureau for Crisis Prevention and Recovery(UNDP/BCPR). 3 whole.LERisarelevantapproachasitisarea-basedandpromotesagrowingparticipationin decision-makingandequityinresourceallocation.Bydoingso,LERpavesthewayto reconciliation,peaceconsolidation,andsustainablerecovery. The Post-conflict Employment and Reintegration Policy is not only a policy framework for LER. It also containsrecommendationsregardingoperationalandcoordinationaspects3.Theframeworkcould beofferedbyearlyrecoverycoordinationmechanisms,oralternatively,byotheractorssuchas working groups supporting government-led processes. This will have implications also with respect to the advocacy modalities for LER and the institutional arrangements overseeing its implementation. About Early Recovery Within the scope of the Humanitarian Reform, a cluster approach has been adopted to address the criticalsystemicgapsconstrainingtheeffectiveness,predictabilityandtimelinessofcrisisresponse worldwide. Such an approach is intended to strengthen the leadership and accountability in nine key sectors of humanitarian response. Clusters andSectorsare groupsofrelevantUNagencies,non- governmental organizations and other international organizations, and focus on specific issues. Oneoftheseclustersisfocusedonearlyrecovery,whichbridgeshumanitarianassistanceto longer-termreconstructionanddevelopmentstrategies.Infact,earlyrecoverystartsina humanitariansettingbutisguidedbydevelopmentprinciplesandisaimedatstrengtheningthe self-relianceofcrisis-affectedcommunities.Interventionsbuildonhumanitarianprogrammesand catalyzesustainabledevelopmentopportunities.Theyareprimarilyfocusedonthematicareas where there is a recognized gap left by the other humanitarian Clusters and Sectors. They include: restoringessentialservicesandinfrastructure,livelihoods,governanceandruleoflaw, shelters, environmental assets and reintegration of affected groups. At the global level, the Cluster Working Group on Early Recovery (CWGER) is a group of 30 UN and non-UNglobalpartnersfromthehumanitariananddevelopmentcommunities,withUNDP designated as Cluster Lead. The CWGER is designated to identify gaps, and to develop and furnish accordinglythetools,resources,trainingandsupportrequiredbyfield-basedagenciesto effectively plan and implement early recovery. The LER Guidelines are one of the deliverablesof the CWGER focusing on the domain of livelihood recovery and respond to a recognized need for more effective and coordinated programming in this area.4 About the LER Guidelines The LERGuidelines in Post-conflict (hereinafter referred to as the Guidelines) provide the conceptual frameworkandpolicyelements(PartI),operationalmeansandreferences(PartII)andpracticaltools (PartIII)tosupportfieldpractitionersinplanningandimplementingpost-conflictemployment promotionbasedontheLERapproach.Thereadershouldnotexpecttofindhererigorous, scientificallybasedtheoriesoneconomicrecovery,butratherideasandanalyticalperspectives. 3These recommendations are outlined in the Operational Guidance Note(OGN) of the PCEIR. 4 The Guidelines can be applied jointly with another CWGER tool, the Livelihood Assessment Toolkit (LAT), which has been developed by FAO and ILO. Aspost-conflictcontextsvaryconsiderably,theproposedguidanceonhowtoimplementLERis notprescriptiveand rigid. Some of the core decisions concerningLER(i.e. where toimplement LER, withwhomtowork,whichstakeholdersshouldbemobilisedandencouragedtoparticipate,what focusandscopeshouldLERprogrammeshave)dependonconflictfeaturesandtheirevolution acrosstimeandspace,ontheleveloflocalcapacities,onthetypeandstrengthoflocal governance,onthetypologyofthetargetedareaandonitseconomicintegration.Builtonthe 4 A gender-sensitive approach is mainstreamed across the Guidelines. The reader may note that, when referring to the affected population and/or the society as a whole, we intend both women andmen. Part Ion LER Fundamentals offers apresentationof the core subjectmatter(chapter1), i.e.the LERapproachwithitspurposeandfeatures,andhighlightsthemaincontextualissuesandspecific applicationsoftheapproachaccordingtothecontext(chapter2).Essentially,itisaboutmajor policyissuesandrelatedguidance.FamiliaritywiththeLERapproachandrelatedterminology should obviously precede any decision to get started, in order to make sure that LER is responsive to the local issues and fits the existingconditions. PartIIonLERinActionfocusesontheoperationalmodalitiesandmeansandtranslatesthepolicy matterspresented in PartI intoguidelines foraction.The threechapterscontained in Part II concern the coretasksthatcharacteriseLERimplementation.Morespecifically,thetasksareclusteredintothree categories,eachonecorrespondingtoachapter:fact-finding,decision-makingandaction-taking. Chapter3providesreferenceguidanceonhowtocollect,processandanalysestrategic informationontheterritory,itsresources,actors,andtheirinteractions.Havingagood understanding of the territorial capital and the economic recovery issues is critical for making solid decisions and determining priorities for LER. Chapter4providesguidelinesonhowtotakecoredecisionsacrosstheimplementationofLER. TheyessentiallyregardtheWho(identificationofinstitutionalpartnerswithwhomtoworkand accordingtowhichmodalities);theWhere(selectionofthegeographicscopeofactionandthe specificterritoryandthechoiceofthestrategicsectorsorbranchofeconomicactivitiestobe targeted);theForWhat(theeconomicrecoveryissuesthatmustbetackled);theHow(which strategicapproachismostappropriatefortacklingsuchissues);andtheWhat(immediateand mid-termLERactivitiestobeimplemented).Asetofcontrolquestionsonconflictsensitivityis providedpereachcriticaldecisiontobe made. Finally,chapter5isaboutundertakingspecifictaskssuchasadvocacy,fundraising,coordination, mobilizationandcapacitybuildingof stakeholders,andimplementationof immediatesmall-scale activities. As mentioned, the proposed tasks are not sequential (see Table 1). For instance, it is very likely thatthecollectionofkeyinformationthroughrapidassessmentofthecontextwillprecedethetaking ofthego/nogodecisionand embarkingornotinLER.Nevertheless,assessment-typeoftaskswillbe recurrent,evenduringtheimplementationofLERprojects;thisismainlyduetothepost-conflict context,whichchanges rapidlyand requirescontinuousadaptationof approachesandmeasures. Who Should Use the Guidelines? The Guidelines are intended to support field practitioners in planning and implementing post-conflict employmentcreationstrategiesandplansapplyinganLERapproach.Bypractitionerswemean professionalsatinternational,nationalandlocallevelsengagedinsocio-economicrecovery, reconstructionanddevelopmentinpost-conflictsettings,whomanage,supervise and/ordirectly execute projects and programmes implementation. Hence, the primary target audience include: Policy and decision makers; Programme designers, managers and coordinators within UN agencies, INGOs, NGOs and CBOs; Programme/projectimplementers; Local authorities and counterparts such as Governments, Workers and Employers Organizations. basis of these parameters, a set of generic LER scenarios is proposed from which the reader can choose the one that best represents the targeted setting. They vary according to the content and scope of economic recovery (the what) and the degree of local ownership of the responsibilities related to initiation, coordination, planning and implementation (the how and bywhom). 5 Operationalframeworksatthecountrylevelwillbemulti-agency platformsandmechanisms mandated to prompt recovery, such as the Early Recovery Clusters and Networks or, ifavailable, otherplatformsengagedintheimplementationoftheUNPolicyforPost-conflictEmployment Creation and Reintegration. TheGuidelinescanalsobehelpfulfor:practitionersinspecifictechnicalareas(Disarmament, DemobilizationandReintegrationofEx-combatants,reintegrationofchildrenformerlyassociatedwith armedforcesandgroups(CAAFAG),vocationalskills,businesspromotion,employment-intensive investment, etc) and in cross-cutting issues (e.g. gender), who need to familiarize with the LER approach and to apply it within a broader area-based strategy, whether they are based in the field or at HQs. National and international LER practitioners will be supported in improving the way they promote and supportthe implementation of LER interventions in post-conflict. A core strengthening will be theonerelatedtothefacilitationofarea-basedparticipatorydecision-making.Infact,throughout implementation,practitionerswillhavetomobilizeandgraduallyinvolvelocalstakeholdersin making decisions and executing initiatives. LER actions will build on the findings of thepost-crisis rapidassessmentandofaprofilingoftheterritorialresourcesandopportunitiesforemployment creationandincome generation. IndevelopingtheseGuidelines,wefounditparticularlychallengingtosimultaneouslymeetthe learning needs of - on the one hand - the policy and decision makers, programme designers and managers,and-ontheotherhand-theimplementers,whohavedifferentprofilesand requirements.Forinstance,livelihoodspecialistsmayfindtheseGuidelinesappropriatetotheir needsandtheirlevelofunderstanding,butforhands-onpractitioners,theymayseem overwhelming. We therefore suggest the following: How to Use the Guidelines? TheGuidelinesincludeconceptualcontents,technicalinputsandpracticaltools,providing guidancefortheimplementationofLER.Theyareconceivedtobeusedasareferenceand should not be interpreted and applied in a dogmatic way, as contexts may vary substantially and there is not one LER that fits all. That is why, rather than providing step-by-step instructions, the Guidelines provide criteria and instruments to take decisions and follow up with pertinent action. In addition,thechaptersarenot to bereadandputinto practice inthe samesequence as they appear.InfacttheLERimplementationprocessisnotlinear,beingcharacterizedbyalogical alternation of fact-finding, decision-taking and action-making tasks (see figure below). Fact finding 1Decision making 1Action taking 1 Fact finding 2Decision making 2Action taking 2 Policy and decision makers: to focus on Part I, in order to become able to take the go/no go decisions concerning LER, and to frame economic recovery policies; Programme designers, managers and coordinators: to have a broad understanding of Part I, and to master Part II, in order to plan LER, train implementers and supervise programme execution; Implementers: to focus on Part II, depending on their capacity level. 6 rg et ocurecal y? x Cross references will guide the reader from one chapter to the other and, in particular, willcreate linkages among tasks contributing to the same process. Table 1 represents the linkagesacross thethreechapterscontainedinPartII,andcanhelpthereaderinbrowsingtheGuidelines. Example:assessmentofstakeholdersprofile(fact-finding,chapter3)decisionofwhomto involve in LER (decision-making, chapter 4) mobilisation of stakeholders for mid-term interventions (action-taking,chapter5).Onlythemostcritical andchallengingtaskshavebeenexamined and included in the Guidelines. Table 1. Snapshot of LER implementation FACTS FINDING DECISIONS MAKING ACTION TAKING OUTPUTS Basicconsiderations andgenericconflict profile x Is LER applicable? (Go/No godecision) xHow? xAdvocate for LERx Generic conflictprofile xLER scenarios x Go-ahead forLER Initialrapid assessment (includinga xWhomtoworkwithandhow? x Where to implement LER? xWhichsmall-scale

xImplementimmediate small-scale livelihood activities implementation x Assessment report x Core group of institutions who become partners for gender analysis)livelihood activities?Target specific gender issues and gender differentiatedneeds LER implementation x Operationalframework,roles andresponsibilitiesdivision xGender-sensitive project document for small-scaleactivities Diagnosis of localxWhich opportunities tox Increase localxReport of mapping procurement opportunities pr cure locally?proocurement Local Economic Profiling Additional assessments x Whichstakeholderstomobilize? xWhicheconomicsectors? x Whateconomicrecovery issuestobetackled? xWhat LER objectives to pursue in the mid-term? x Which alternative strategies (What LER mid-terminterventions?) x Which projectdetails? xWhich M&Eindicators? xSelect mid-terminitiatives forimplementation x Mobilisestakeholders xBuild capacities for LERR xDraft LERprojects xElaborate M&Eplans x Local Economicprofile report, including institutionalprofile xLER strategies xLER projects Tracking progress andperformance xAny corrective measure?xAgree on andintroduce corrective measures xDisseminategood practices and lessons learnt x Progressreportsandbriefings xRecommendations x Lessons learnt and goodpractices The Guidelines are designed to be as comprehensive as possible with a wide array of tools, which are compiled in Part III, to be used for different aims, when suggested in the text: PurposeType of tools CollectinformationQuestionnaires (structured and semi-structured), data-collection forms, lists of information requirements, lists of information sources StoreinformationMatrixes and grids Analyze informationGuidelines for analysis (e.g. SWOT, Venn diagram) Share information and reportTemplates for reports and documents Decide and planGuidelines for workshop facilitation, decision-makingtrees, templates for work plans, logical frameworks, strategy documents and projectdocuments Act and implement interventionsChecklists, Terms of Reference for project staff 7 ReferencestoLERexperiencesanddocumentsareembeddedintheGuidelines.ThisrelatesLER conceptstotherealitiesofLERpracticeandthelessonslearntsofar.TheGuidelinescanassistin theharmonizationofeconomicrecoverypracticesacrossorganizationsandsupportpractitioners in thestrategicplanningandimplementationofinterventions. Eachchaptercontainsasetoftechnicalbriefsintheformofsub-chapters,eachonefocusing onaspecificissueortask.Theyprovideessentialtheoreticalbackgroundandguidance.The contentsandtheoperationaltoolsarelistedatthebeginningofeachchapter.Additional contents are provided in the following forms. Thissymbolindicatescross-referencestorelevantcontentsofthe Guidelines.Ifusingtheelectronicversion,thecross-referenceisalso anactive link. Indicationsontheoperationaltoolsyoucanuseintheexecutionofa specific function. You will find the tools in the Toolboxes in Part III. If using the electronic version, anactive link will lead you tothe tool you are looking for. Zoom-In on the Practice boxes presenting examples of the application of the concepts explained. Did You Know That? boxes to stimulate your curiosity about interesting information that is nice to know. These logos draw the attention of the reader on thematic cross cutting issues, i.e. gender and environment. References To know more: the complementary readings that we recommend to those who are interested in the subject and are keen indeepeningtheirknowledgeaboutit.Thereferencesare contained in the CD-ROM included in these Guidelines. The readershould: Complementthereading oftheGuidelineswith:theuseoftoolsprovidedintheToolboxes (Part III); the references that are listed at the end of each chapter; Adapt the content to the specificworking context; usethe instructions as lenses enablinga look at the reality under the LER perspective; and operate accordingly. 8 9 PART I. LER FUNDAMENTALS 10 11 Chapter 1. LER Conceptual Basis Overview Contents ThischapterisabouttheconceptualframeworkoftheLERapproachanddescribesthe impleme ntation process, its purpose, characteristics and steps. The chap ter alsointroduces whatthecomponentsofterritorialcapitalare,andhowaconflictcandestroyorda mag e such capital thus wea kening the performance of the local economy. The focus then turnsto howtheLERapproachcanrestoreeachitemoftheterritorialcapital,soastocreatethe conditions for local markets to fun ction properly. Purpose This chapter is to familiarize the read er with the rationale of the LER approach and terminology. By laying the conceptualfounda tions of LER, this chap ter is also instrumental in the creation of acommo nunderstandingamongdifferentactors engag edin reintegratingconflict-affe cted groups and recovering livelihoo ds. The contents of this chapter can also be used for advocacypurposes and basic training, when sensitizing and mobilizing stakeholders. Nevertheless, we suggest adap ting the content to the level of education and stake of the interlocutors in order to make it more relevant and accessible. Outline chapter 1 The LER App roa ch in Post Co nflic t 1.2. The Ec onomi c Spa ce: Territorial Cap ital in Economi c Flows 1.3. Guiding Principles of LER 1.4. Making LER Happ en 1.5. The Transition from LER to LED 12 1.1. The LER Approach in Post-conflict How Do We Define LER? Table 2. LER in a nutshell What x Area-based approach to economic recovery for job creation and incomegeneration For what x x x Short-term: create temporary job opportunities to inject cash in the economy, reduce aid dependency and increase purchasing power; encourage and facilitate spontaneous recovery initiatives Mid term: recover conflict-affected productive and commercial circuits by removing the obstacles that inhibit their normal function; increase and stabilise employment creation Ultimately: reintegrate conflict-affected groups in the economic and social life of a community and promotereconciliation. For whom x x x Those whose livelihoods, enterprises & productive assets were lost or affected due to the conflict Including but not exclusively focusing on - IDPs, returning refugees and ex-combatants Not specifically focusing on the poorest and mostvulnerable When x x x After the peace talks are advanced and/or the peace agreements have been signed In parallel with humanitarian assistance Lifespan of LER depends on the starting conditions and on their evolution over time. It is not possible to predictthetiming. Where x x x x Conflict-affected settings Specific geographic territories, taking into account their interactions with other territories Rural and urban settings Areas of IDPs, ex-combatants and refugees return orsettlement By whom and how x x x x Capitalization on local resources and opportunities (e.g. local procurement of goods and services; labour- intensive methodologies) Decision-making with different degrees and breadth of participation according to actors capacities Short-term: lower degree of participation; small-scale livelihood activities for temporary job creation and cash injection Mid-term: increasing participation; capacity building for enhanced labour supply and increased labour demand By means of x x The territorial capital, i.e. local resources (e.g. human, institutional, physical, natural, financial) Relief and reconstructioninvestments Inpost-conflicturbanandruralsettings,LERisanarea-basedapproachtoreviveaffected economicactivities,whichinturnleadstoincreasedemployment.Itdoessobyputtinginplace deliberateeffortsthatpromptpositivespontaneousinitiatives,byrestoringthedisruptedmarkets andbyremovingtheobstaclesthatinhibittheirnormalfunction.Itbuildsonandpromotesthe optimaluseoflocalassetsandopportunities,forinstancebyfacilitatinglocalparticipation,by intensifyingtheuseof labour, andbyencouraging localprocurementofgoods and services. While creatingtemporaryjobsintheshort-termandimprovingeconomiesandlabourmarkets performanceinthemid-term,LERpromotesreconciliationwithinaffectedcommunitiesandself- reliance of affected groups. Table 2 summarisesthemostcriticalfeaturesoftheLERapproach. Each is explained in depth in the following pages. 13 Thefocusis two-fold.Inthe short-run,LERstartswith small-scale activities aimed at stabilizing livelihoods, creatingimmediatejobopportunitiesasconcrete peacedividends,andinjectingcashinto the economy. This increases local purchasing power and graduallyreducesaiddependency.Inthemedium- term, LER pursues starting the restoration of more regular functionsofproductiveandcommercialcircuits,which inturnreactivateslabourmarketsandstabilisejob opportunities. Employability Access to Business Development Entrepreneurship, enterprises and Services Public Temporaryjobsarequickpeacedividends,as they represent an alternative to the use of weapons andto criminal and illicit practices. In addition to that, theydo notrequiresubstantiveinvestments,andcontribute restoringbasicservicesandcommunityinfrastructure that are critical to improve living conditions. management and participation cooperatives Support infrastructure Business enabling environment Access to financial resources This section is linked to: 5.4. Implementing Small-scale LivelihoodActivities 5.7. Examples of Mid-term Interventions WhatisLERFor? Economicrecoverycan,andgenerallydoes,occurspontaneously.Infact,evenduringconflicts,in theaffectedterritorytherecanbeevidenceofdifferentdegreesandintensitiesofproductionand trade,indicatingtheresilienceoflocalcommunities.However,certainresultsarenotproduced spontaneouslyandrequirededicatedeffortsandthechoiceofspecificrecoverydirections.For instance,spontaneousrecoverymayexacerbateinequalities,orevenreinforcewareconomies, thusthreateninglong-lastingreconciliationand peace building. TheLERapproachaimsatputtinginplacedeliberateeffortstopromptpositivespontaneous initiativeswithaviewtorestoreproductionandtrade,better,fasterandalonganintended directionorstrategy.Bybetter,wemeanwithattentiontothequalityoftheprocessandthe outcomesintermsofquantityandqualityofjobsgenerated,distributionofrecoverybenefitsin termsofwell-beingoftargetedcommunities,diversificationoftheeconomy,capacityofthe privatesectortorespondtoexternalshocksandseizeopportunities,reduction/eradicationofwar economy,andmeaningfulparticipationofwomeninidentifyingeconomicrecoveryissues,taking decisionsand implementingLERactions.Womens participation isessentialand isan indicatorof sustainable development. More insights on this issue, are found in UNSC Resolutions 1325, 1820, 1888, 1889. Interventionscanbeoftwotypes:(1)inducingthe creationofjobsthroughsmall-scaleinfrastructureprojectsandbasicservices;and(2)facilitating theaccessoflocaljobseekerstoexistinglabourdemand.Atthisstage,atop-downapproachto decision making is emphasised, as it produces rapid results and it helps bypassing issues such as poor institutional capacities and representation. Primarytargetsareconflict-affectedgroups.Theseincludethewholeconflict-affectedcommunity wholost livelihoods andassetsandthosewhoneedtobereinsertedinthelabourmarket,includingex- combatantsandreturningIDPsandrefugees.Withinthesegroups, ageandsexspecificitiesmustbeconsidered. Asresourcesandinstitutionalcapacitiesincrease,thescopeofactivitiesexpands.Inthemedium term,interventionsarefocusedonremovingmainbottlenecksthatimpedethesmooth conductionandenhancementofeconomicactivities,andthatpreventtherecoveryand formationofterritorialcapital.AccordingtothedomainofLERaction,objectiveswilltargetboth labourdemand(recoveryandincreasedproductivityofenterprises)andlaboursupplyand access (essentiallyemployability). 14 Table 3. LER domains of action and examples ofobjectives LER domains of actionObjectives Employability xEnsuring the availability of technical and professional skills as demanded by the labourmarketinordertodevelop/increaseworkersproductivity xFacilitating the match between labour demand andsupply Entrepreneurship, enterprises and cooperatives x Creating and promoting an entrepreneurial culture, including among youth andwomen x Mainstreaming Decent Work as part of the collective of values characterizing good entrepreneurship x Improving business management skills, knowledge andattitudes Business-enabling Environment x Creating an environment (e.g. regulatory frameworks) that encourages the start-up of new businesses and the development of existing ones Access to financial resources x Ensuring the availability of and access to adequate financial services and products, tailored to the specific needs of women and men, for start-up and business growth in conflict-affected areas Support infrastructure xEnsuring that the necessary support infrastructure (e.g. transportation, communication, storage, market) is in place, well maintained and equally accessible to women and men Access to Business DevelopmentServices xImproving the competitiveness of local firms in strategic sectors and value chains, and their access to viable business opportunities in conflict-affected settings xFostering innovation as a means to enhance firms competitiveness and their survival capacity in markets with harsh conditions Public management and participation xEmpowering public entities and authorities to make a better use of resources x Facilitating inclusive and participatory approaches and constructive dialogue among relevant actors, women and men included, for the identification of needs and priorities and the development of suitable solutions for economic recovery x Orienting public, national and international funds for recovery and reconstruction towards local suppliers of goods and services and labour- intensive methodologies Inordertomaximisetheirimpactintermsofjobcreation,LERstrategiesandplansmustbefully integratedwithinbroademploymentprogrammes,asrecommendedbytheUNPost-conflict Policy for EmploymentCreation. Thedecision-makingprocess,mostlikelyledinitiallybyexternalactors,isincreasinglyparticipative andthefocusshiftsontofullybottom-upapproaches.Topermitsuchatransformationtowarda higher degreeofownershipandaccountability,partofLERinterventionwillfocusoncapacity development of local stakeholders on how to best allocate and use resources, and on how to take suchdecisionsinaparticipatorymanner.Severaladministrative,geographicandsectorallevels areconcernedandmustbeconsidered throughthe involvementof relevantstakeholders. 15 LERBridgesthe Gapbetween Relief and Development While focusing on early recovery and recovery-type interventions, LER complements and builds upon humanitarian andrehabilitation activities. At the same time, LER prepares the ground for sustainable development interventions, through the early construction of more solid economic foundations. Such an integrated approach to humanitarian and recovery operations can be a powerful force driving economic rebuilding, in line with the principles of the Early Recover Cluster. Reliefoperationsofferseveralopportunitiesforcreatingjobsandincomeforconflict-affected people.Theymayprovidetemporarylivelihoodsupportintheformofshort-termincometransfers, cash-for-work,and food-for-work activities.Cash transfers are designed to assist those who donot haveorhavelostthecapacitytoprovideforthemselves(e.g.peoplewithdisabilities,orphans, widows,elders)ortoregionswherephysicalinfrastructureandotherproductiveassetshavebeen severelydevastated.Cash-for-workandfood-for-workprovideimmediate,temporaryjob opportunities through employment intensive public works projects (e.g. roads, irrigationcanals). TheLERapproachaimsatmaximizingtheemployment-creationimpactofongoingoperationsby emphasizingtheuseoflocalassetsandbyre-orientingpublicinvestmentstowardslabour-based methodologies.Therefore,coordinationwithexistinghumanitariananddevelopmentagentsand authorities iscrucial inthe transitiontomoresustainableemploymentopportunities. Inthemajority of post-conflict settings, humanitarian relief organizations (i.e. OCHA, WFP, ICRC, IRC, MSF) willbe onsitepriortoearlyrecoveryoperations.Systematicinformationsharingandevenjointplanning amongallhumanitarianandrecoveryactorsarenecessarytoreachgreatercoherence. LERapproachesprovideamorecomprehensivesetofsupports(i.e.skills,accesstobusiness developmentandmicrofinanceservices,marketlinkages)thatprovidesmorethanjustemergency incomesupport,butheightensthelikelihoodofsustainablelivelihoodsbeyondtheperiodofthe project.Inthisperspective,areasofcollaborationbetweenhumanitarianreliefandLERactivities mayincludedovetailingastandalonevocationaltrainingtoacomponentofaprojectthat integrates basic skills training with apprenticeships and entrepreneurship development. Intheaftermathofaconflict,localmarketsfailinstimulatingthegenerationoflabourdemand becausetheeconomyisdepressed.Anexternalimpulsetoinvestmentsandjobcreationis therefore necessary to put in motion the disruptedmarkets. The LER approach can help humanitarian relieforganizationsviewreliefasan occasiontoaddresstheimmediate needsofthepeoplewhilebuildingthe physicalandhumancapitalrequiredfor long-termeconomicrecoveryand development.LERsupportsabroad- basedconsultationandcoordinationat thelocallevel,contributingtopeace consolidationamonglocalcommunities. Theconceptsoflinkingrelieftorehabilitationand developmentandofpromotingadevelopmental humanitarianassistancewasdevelopedbypractitionersand academicsbackinthe80ies.Itwasremarkedthatthegap betweenthetwophaseswasactuallydetrimentaltothe performance of both of them. The existing grey zone wasto beaddressedinordertoconsolidateachievementsofthe humanitarianassistanceeffortsand,ontheotherside,to preparethegroundforasmootherandmoresustainable development process. DID YOU KNOW THATTHE CONCEPTS OF LINKING RELIEF TO REHABILITATION AND DEVELOPMENT 16 This section is linked to: 1.3. Guiding Principles of LER 5.5. Prompting Participation and Mobilizing Stakeholders 5.6. Building Capacities in the Mid-term LERfor Peace Building In most conflict-affected countries the post-warcontextisunstableandcharacterized byfallbacksandhurdlesto overcomein termsofviolence,recoveryand reintegration.Fightingcanresume even if thepeaceagreementhasbeen signedby theparties,andespeciallyinsensitive geographicareas. Duetothenon-linearityofconflictcycles, peace-buildingeffortsandrelated interventions,includingLER,shallbe successful in responding to the specific conflict dynamics, withoutprovoking any furtherharm. The possibility to apply LER and its scope and focuswillinfactbedeterminedbythedurationandstageoftheconflictcycleandtherelated processes occurring in the area (e.g. DDR, displacement and/or return of IDPs and refugees). Peacebuilding is essentiallya process of transformation of a conflictual relationship that is handled inanhostilefashionand/orthroughtheuseofviolenceintoanewtypeofrelationshipwhere divergenceisaddressedviapeacefulmeans.Buildingpeaceaimsatreachingastatusof harmony,unity,well-being,securityandrespect,withinacommunityandamongthepartiesin conflict (Lederach,1997). Ifusedasaninstrumenttocontributetopeacebuilding,LERcannotignorethenatureand characteristicsoftheconcernedconflictandthesetting.Themostimportantconsiderationinthis regard must be done upfront, when deciding if and how the LER approach should be applied(see chapter 3, section 3.2. Generic Profiling of Post-Conflict ). LER programmes strengthen the peace-building process in three ways: Relationshipbuildingentailsmaximizingconnectorsandminimizingtheimpactofdividerswithin affected societies (see 1.3. Guiding Principles of LER). The sooner this is done in the aftermath of the stipulationof thepeaceagreement,the better. Byimprovingthelocaleconomyandthe managementoflocalresources,whichin turns reduces unemployment andprovides economic/survivalalternativesto fighting, thus contributing to socialstability; Bybuildingthecapacitiesandfosteringtheequalparticipationofwomenandmenin decision-makingandimplementation,whichencouragesdialogue,helpstherebuildingof relationships among groups, and increases ownership of the results. Relationship building is an essentialrequirementtosustainpeacebuildinginthelong-run.Womensparticipationis recognized as a fundamental factor for development andpeace-building. By reducing therisk factors that can causeconflict relapse. Typicalrecurrence factors that can bereducedbyLERare:theperceptionofinequalitiesamonggroupsintermsofaccessto economicopportunitiesanddistributionofresources(includingnaturalresourcesandderivate revenues),thepoorparticipationandpolarizationofdecisionmaking(includingtheexclusion of women), and the unemployment among the youth. The UN Security Council defines peace building as aimedat preventingtheoutbreak,recurrenceorcontinuationofarmed conflictand,therefore,encompassawiderangeofpolitical, developmental,humanitarianandhumanrightsprogrammes and mechanisms. ************************************************************************** Lederach(1997)definespeacebuildingasfollows:peace buildingismorethanpostaccordreconstruction.[]isa comprehensiveconceptthatencompasses,generates,and sustainsthefullarrayofprocesses,approachesandstages neededtotransformconflicttowardmoresustainable, peaceful relationships. DEFINITION OF PEACEBUILDING 17 Whois LERFor? TheissueofLERbeneficiariesiskeytothe achievementofeconomicrecoveryobjectives, whichbydefinitiondonotaddresstheneedsof specifichouseholdsinacommunitybutratherlocal marketsandsupportingsystems.Ultimatetargetsof economic recoveryinterventions aretherefore economicagentsthatoperate insuchamarketandthathavethepotentialtocontribute toits performance.ThisfeaturedifferentiatestheLERapproachfromtheSustainableLivelihood Approach (SLA). Experiencehasshownthateconomicrecoverydependsonalow-middleclasswith entrepreneurial skills and attitudes and with a minimum purchasing and saving power. Hence, LER is notaimed at immediatelyserving the most marginalised, poorand vulnerable. Their needs must be, instead, includedina widertargetbase,wherefocusisputoneconomicactorsthathavethe potentialtotriggerrecovery.Furthermore,thosewhocanspoilrecoverytoprotecttheirinterests needtobegivenincentivestoactotherwise,i.e.thecertaintythattheycanbenefitfromrecovery (e.g. ex-combatants). Withintheabove-mentionedgroup,LERwouldprioritizethosewhoselivelihoods,enterprisesand productiveassetswere lostoraffecteddueto theconflict. Theaimwouldbetohelpthemrestore theiractivities,restartthelocaleconomyandgenerateincomeforthemselvesandlinked businesses. Finally,therearetheso-calledpeoplewithspecificneeds,whoarecategorized accordingtotheirage,gender,diversity,andsocio-economicstatus.Amongthese groups, are female-headed households; IDPs, returning and resettling refugees;ex- combatants; and unemployed youth, all of which can present a destabilisation factor. When? The signature of the peace agreement is usually the starting point for humanitarian organizations to expandthescopeoftheiractivitiesbeyondsavinglives(i.e.earlyrecovery)andtoextend assistancetonewareasandgroups,forexampleinsupporttoreturnandreintegrationof returnees,IDPsandex-combatants.Atthisstage,thenationalgovernment,othernational stakeholdersandtheinternationalcommunity,includingdevelopmentorganizations,begin assessing the impact of the conflict in preparation for the formulation of appropriate responses to sustain long-lasting peace. For development organizations, this is an entry point to work hand-in- hand with humanitarian actors within early recovery frameworks. In such a scenario, LER represents one of the alternatives to be explored. That is why we suggest that LER start when peace talks are in their advanced stage and/or peace agreementshavebeensigned.Whenimplementedinparallelwithhumanitarianassistancewithin theframeworkofearlyrecoveryoperationsandwheninspiredbydevelopmentprinciples,LER bridgesthegapbetweenthesetwotypesofefforts.Inotherwords,LERprogrammescreatean overlapbetweenreliefanddevelopment.Assuch,theyreducedependenceonexternal assistance, strengthen self-reliance and pave the way towards sustainabledevelopment. During this limited period, LER can take advantage of the incoming flows of resources linked to post-conflicthumanitariananddevelopment-orientedoperations.Itcanalsocapitalizeonthe efforts and resources allocated to increase security, build state authority and stabilize the context. This section is linked to: 1.2. The Economic Space: Territorial Capital and Economic Flows 2.3. LER and People with Specific Needs 3.3. Initial Rapid Assessment(IRA) 4.5.WhichBeneficiaries? 18 It should be noted that the final outcome expected from LER programmes cannot realistically be the full restoration of the local economy (i.e. returning to pre-conflict situation). In fact, on average, it takes about21yearstoreturntothepre-warincomelevel(CollierandHoeffler,2004).Undersuch circumstances, LER can instead be conceived as a process that builds confidence and that kick starts and catalyses the revitalisation of local economies without the ambition of producing major changes at the macro level. In the first three post-conflict years, the pace of growth is rather slow and stakeholders (including donors) can actually become disillusioned if tangible results are not brought to their attention. Where? Theeconomicspace,i.e.thegeographicandadministrativescaleandthelocationswhereLER shouldbeapplied,isdefinedonthebasisofseveralparametersthatareextensivelydescribedin chapter4,atthesection4.4.WheretoImplementLER?Oneoftheseparametersislinkedtothe economicflows,occurringinacertaingeographicarea.Abasicdefinitionofeconomicflowsis providedinthefollowingsection.Ingeneral,suchaneconomicspaceisacombinationofruraland urbanareas,whichcomplementeachothersintermsofproductionandconsumptionpatterns.The assumptionisthatneitherruralnorurbanareasarefullyself-sufficientandthateconomicflowswill necessarilyoccuramongthem,withdifferentdegreesofintensityandfrequency.Figure2offersa trivial but eloquent representation of the economic flows occurring among urban and rural nodes. Intheruralnodeseconomicactivitiesfocusmainlyonagriculturalproduction,resourceextraction, mining,quarrying,primarystorage,thepartialorcompletetransformationofcommoditiesand transportationtourbannodesorotherruralnodes.Itisalsoimportanttoconsiderthatrural economiesincludebothfarmandnon-farmactivities(RNF),andthatthelatteraccountfora greater portion of the rural income than generally assumed.5 On the other hand, urban nodes are characterized by a wider access to business networks, a larger mass of consumers with higher purchasing power than in rural areas, a more significant presenceoffinancialandnon-financialservices,bettertransportandcommunication infrastructure, as well as human and institutional resources. These features make the urban nodes more suitable for higher scale production and trade towards wider markets. Ahealthyinteractionbetweenurbanandruraleconomiesisvitalforrecovery.Furthermore,the consequentdevelopmentofbothruralfarmandruralnon-farmactivitiespermitsavoiding excessiveandbadlymanagedurbanization,withallitsassociatedsocialandenvironmental problems.Therefore,economicrecoveryanddevelopmentstrategiesmustleverageonthe complementaritiesbetweenruralandurbaneconomicpatternsandresources,optimizetheir interaction,andencourageeconomic diversification. 5 A study conducted by Reardon et al. (1998) shows that, in Africa, an average of 42% of the total rural income is the outcomeofnon-farm activities. Asmentionedinthedefinition,theLERapproachisanarea-basedone,appliedinconflict affectedsettings,whetherruraland/orurban.Comparedtoapproachesfocusingonspecific targetgroups,thearea-basedfocuspermitstotakeintoaccountthebroaderlocaleconomic setting and to make better use of local resources and external investments. Lifespan of LER depends on the starting conditions in the targeted context and on their evolution over time, hence it is not either possible or advisable to predict the timing. Indeed, rather than being a time- bound process, LER is a condition-bound and result-oriented process. In other words, it starts when and where certain necessary conditions are in place, and it gradually shifts into LED upon the achievement of key milestones. Such milestones are to be set on a case-by-case basis and in a realistic way. 19 x x x Rural node (R) Activities: Agricultural production Extraction of raw materials Storage of raw materials and finished products Initialelaborationofrawmaterials Transportation towards urban nodes or other ruralnodes Localtrade Consumption of financial and non financial services for enterprises x x x x Agriculturalproducts (fishing, crops, livestock) Products from extraction, mining, quarrying x Semi-elaborated products x x x x x x Urban Node (U) Activities: Storageoffinishedproducts Transformation Commercialisation Financial and non-financial service supply to firms (training, technical advice, etc.) x x Transactions U-R Transformed products Financial and non-financial services to enterprises (training, technical support andadvice,etc.) Flows originated in ruralnodes Flows originated in urban nodes Urban Node (U) Secondary and feeder roads Main roads Astrategicapproachtoeconomicrecoverywouldthereforeaimattherevitalisation,or activation, of a network of urban and rural nodes of farming and non-farming production, trade and consumption. The emphasis would be on boosting the rural economy, inclusive of farmand non farm activities, rather than agriculture itself, which has the disadvantage of introducing in the market products with low added value and with seasonal cycles. This paradigm shift, which could allowagreatercontribution of agriculture to economicrecovery and development, canonlybe achievedbysupportingagriculture,entrepreneurialcapacityandenhancementofproductivity throughout value chains. Whendevisingeconomicrecoverystrategies,itisimportanttoconsiderthatruraland urbaneconomieshavedifferentchallengestoface.Forinstance,inruralareastypical issuesare,amongothers:landscarcity,insecuretenureandlandlessness; poor infrastructuresandservices;significantgender-baseddisparities.Instead,inurbaneconomiesthe most critical issues, to name a few, are: unemployment, which is relatively higher than in rural areas; skilled labour that the labour market is unable to absorb; urbanization, with its associated problems such as the inadequacy of infrastructure and services to meet the increaseddemand. Figure2.Representationoftheeconomicflowsbetweenruralandurbannodes Transactions R-U By Whom, How, and What: LERScenarios There is no one universal recipe for LER. Nevertheless, we coulddrawanumberofLERscenarioswhichdescribe thedegreeoftheexternalimpulsethatisneededto restoreproductionand trade circuits (the how and by This section is linked to: Overview of Conflict Features, in section2.1. 3.2. Generic Profiling of Post-Conflict Setting Building and Choosing LER Scenarios, in4.2. whom) and the level of sophistication , scope and focus of feasible initiatives (the what). In general, LER will be applied in contexts where state structures are weak, economic growth is still veryslow,andlocalabsorptivecapacityispoor.Insuchatypicalcase,LERinitiationand coordination will be driven by external entities as well as the implementation of economic recovery 20 initiatives. When, instead, absorptive capacity is higher, local institutionswill play amore prominent roleandco-leadLERefforts.Ineithercase,LERwillnotbeinitiatedinthevacuum:other programmesaimedatrecoveringlivelihoods andincomewillbeprobablyongoing,aswellas reintegrationofaffected groups. Inaddition,thedegreeofstabilityofthepost-conflictscenario,thetypologyofthetargetedarea (rural/urban)anditseconomicintegrationwithrespecttoothereconomies,willdictatethefocus of LER interventions, their scope and appropriate mix andsequencing. 1.2. The Economic Space: Territorial Capital and Economic Flows Overview Economicrecoveryanddevelopmentproblemsareconcernedwithflowsofpeople,raw material,goods,information,services,etc.acrossspaceandtime.Whileflowsconcernthe dynamic aspect of economic interactions, the availability of resources in a specific location, at a certain point in time, represents the static dimension of the local economy, i.e. the stock , the territorial capital. Inordertoimprovetherelevanceandensurethesuccessofinterventionsaimedatrecovering boththeterritorialassetsandtheeconomicflows,theLERapproachcombinesthetwo complementarydimensionsofgeographicterritoryandeconomicnetwork.Geographic territorieshavewellspecifiedphysicalboundaries,whileeconomicnetworkscancrossbeyond geographicalboundaries.Typically,inconflict-affectedareas,networksaregeographicallylimiteddue to the poor accessibility and connections between localities. Inotherwords,thegeographicalperspective,whichistypicallyadoptedinarea-based approaches,isassociatedtothenetworkperspectivewithaviewtobetterdescribethe functioningoflocaleconomies.LERstrategiesandplanswillthereforetargetaspecificallydefined geographicterritory,butwillconsiderallnetworksandeconomicflowsthatconnectsuchterritory to other, not necessarily contiguous territories. This section is linked to: 4.4. Where to ImplementLER? Hence,twokeyconsiderationsoftheeconomicspacemust betakenintoaccountwhendecidingthelocallevelforLER strategies and interventions, i.e. where toimplement LER.The economicspacemust: Beendowedwithacriticalmass(concentration)ofpeople,servicesandothertypesof resources, i.e. the territorial capital; Be crossedby a critical mass of economic interactions, i.e. the flows within networks. Chapter 3 will indicate when the above- mentioned facts concerning by whom and how and the what must be found in the overall planning process. Chapter 4 will suggest guidelines for the decisions concerning the by whom and how and thewhat. 21 What is the Territorial Capital? Territorial capital is a term used to geographically encapsulate the six forms of capital that exist in any given place, namely: 1) human, 2) natural, 3) physical, 4) institutional, 5) economic, and6) social capitals. These types of capital represent capacities, productive assets, and resources that must be rebuilt or enabled to function properly in order to prompt economic revival. Inadditiontotheendogenousresourcesmentionedabove,inpost-conflictsettingsdonors, internationalagencies,civilsocietyorganizationstemporalityinjecttechnicalexpertise,financial resources,andinstitutionalframeworksforreliefanddevelopmentoperationsintothelocal economy.Theseresources,althoughtemporaryandexternal,representanessentialstimulusto territorialcapital.Itisimportanttobuildlocalcapacitytoensurecontinuationofactivitieswhen relieforganizationsandtemporaryrecoverycapitalleavetheterritory. Table 4offersa snapshotofthesix typesofterritorial assetsdescribedabove. It also informs the readerofthefactorsthateitherinhibitorprompttheformationandrecoveryoftheterritorial capital. Table 4. Territorial capital and factors that inhibit/promote itsformation DescriptionofCapital Type Factorsinhibitingcapital formation and recovery Factorspromotingcapital formation and recovery Humancapital Set of attributes of an economically active person: knowledge, expertise, leadershipcapacities,professional and technical skills, participation in networks. Such attributes: enable the participationas economicactors in the territory; influence the type of economic activities, theperformance as economicagent, andtheroles and contributions that can be made as agents of change and innovation. Natural capital Natural resource endowments of an area, characterized by a particular climate, landscape, soilfeatures,and geological composition. Natural sources of: raw materials and energy available to feed economic recovery and development. Natural capital preservation: linked to disaster risk reduction and sustainability of LER achievements. Physical capital Infrastructure supporting economic activities in urban and ruralareas. Brain drain, death, injuries and displacement; Protracted inactivity, loss of skills; Cultural barriers inhibiting female education and access to labour market; Poor capacities of vocational training providers; Inadequacy of training curricula; interruptionofeducation services Delivery of training, support oflocal vocational schools, establishment of apprenticeship programmes; Introduction of cash-for-work schemes with employment potential; Sensitization to new economic opportunities that can arise from new skilltraining Competition and armed conflicts for the control of natural resources (i.e. Abiey, Sudan oil, DRC diamonds) resources untapped andnotefficientlyexploited; Environmentally irresponsible behaviours of economic agents unsustainable use of resources Natural capital: driver of local economic recovery and development in certain sectors (i.e. community-based tourism); Environmentally-friendly projects with positive economic and employment impact (e.g.green jobsprogrammes) Construction materials are not available locally and are expensive Utilizationoflabourintensiveinfrastructure activitiestoinjectcapitalintothelocal This section is linked to: 3.3. Initial Rapid Assessment(IRA) 3.6. Local Economic Profile TheInitialRapidAssessmentandtheLocalEconomicProfile mustcaptureboththeeconomicassetsandtheflows characterizingthetargetedgeographicterritory. 22 Categories: water management, transportation, power production and distribution, sanitation, and communicationssystems. Examples: irrigation canals, water drainage systems, roads, bridges, ports, power plants, market places, storage,and buildings. High level of risk and insecurity inhibiting investments Corruption Poor capacity of local contractors not able to participate in bidding processes public works subcontracted to non-local contractors economywhiledevelopingbusiness supportinginfrastructure(i.e.roads,markets) Significant inflow of financial resources (humanitarian and reconstruction operations) to traditional and non-traditional agents, including women. Institutionalcapital Set of norms, rules and values governing the interaction between local agents (i.e. individuals and organizations). It includes regional, national, provincial, and local institutions designing, disseminating, applying and/or ensuring policies and regulatoryframeworks Policies and rules discouraging investments and business creation Corruption and discrimination Poor human and financial resources no equipment, low/unstable salary estimation, low-skilled employee Highlycentralizedpowersandresources Identification and rebuilding of pre- existing institutions International and regional expertise Increased resource base Targeted efforts and incentives against corruption Economiccapital Set of local enterprises, associations, cooperatives,financial representatives, and networks of economic agents responsible for production,tradeandfinance.It also includes: means of production, financial resources, technology and technological equipment used in economic activities. Mistrust and poor networks Poor infrastructure reduced production and trade High level of risk and insecurity inhibiting investments Property rights and land tenure system: poor anddiscriminatory Inflow of reconstruction investments: grants and loans for business creation and development Well-performingsecurityoperations increasedprotectionofproperty rights, reduced risks, less aversion to investments Advanced peace talks/accords Social capital Aggregatedvalueofthesocialrelationships andsafetynetsamongindividuals. Attimes, theyservetofillingapsleftbythe governmentandeconomicactors(e.g. credit,socialprotection). Deep strains between groups Unwillingness to collaborate among opposing groups Discrimination over the access, use and control of resources Discriminatorydecision-makingplatforms Participatory planning processes which promote dialogue and joint decision-making Effortstore-establishandthickentieswithin communities(bondingsocialcapital) andbetweencommunities(bridging socialcapital) Leaders serious commitment to the peace building process Highlightsonconflictsimpactonthenaturalcapital The environment can itself be a victim of armed conflicts. A report released by UNEPin 2009highlightsaserieso