Post-Conflict Infrastructure : Trends in Aid and Investment Flows
As war and civil strife subside, can governments turn to the private sector to restore basic services? Post-conflict countries suffer from disproportionately low levels of private investment in infrastructure, with only small-scale service providers likely to emerge during, and right after conflict. Larger investors are slow to enter, and when they do, they focus almost exclusively on the easily secured, and most profitable sub-sectors. Yet, some countries have been able to couple aggressive reform and liberalized policies to attract infrastructure investments soon after conflict abates. What does their experience tell us? This Note summarizes an analysis from a companion paper, and explores policy options for post-conflict countries seeking to attract private investment in infrastructure. It suggests improving the underlying factors influencing political and economic risk ratings, for it may lead to faster growth in infrastructure investment in conflict-affected countries, than in other developing countries.
| Summary: | As war and civil strife subside, can
governments turn to the private sector to restore basic
services? Post-conflict countries suffer from
disproportionately low levels of private investment in
infrastructure, with only small-scale service providers
likely to emerge during, and right after conflict. Larger
investors are slow to enter, and when they do, they focus
almost exclusively on the easily secured, and most
profitable sub-sectors. Yet, some countries have been able
to couple aggressive reform and liberalized policies to
attract infrastructure investments soon after conflict
abates. What does their experience tell us? This Note
summarizes an analysis from a companion paper, and explores
policy options for post-conflict countries seeking to
attract private investment in infrastructure. It suggests
improving the underlying factors influencing political and
economic risk ratings, for it may lead to faster growth in
infrastructure investment in conflict-affected countries,
than in other developing countries. |
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