World Bank Repairing War-torn Lives and Countries

Countless numbers of children in many developing countries don't know how to read or write but they can break down and reassemble an AK-47 in less than a minute. War is all they know.

Half a century ago, the IBRD was established to support the reconstruction of Europe following World War II. Fifty years later, the nature, scale, and proliferation of conflicts, particularly intrastate conflicts, in the post-cold war era 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.

Although conflict has touched both rich and poor societies, its effect on low-income countries has been most severe. In response the Bank is returning to its original mission to address the problem of post-conflict reconstruction.

"Reconstruction has the substance of development but the dynamics of emergency relief," explains Colin Scott, co-author of Post-Conflict Reconstruction: the Role of the World Bank. "The projects are owned and driven by local people in the field and the demands are immediate and change rapidly. A framework is needed for the affected country, but one with a lot of flexibility."

Fifteen of the 20 poorest countries in the world have had a major conflict in the past 15 years. In the past decade, a surge in intra-state conflict has compromised the development prospects of some 50 countries worldwide. More than 4 million people have been killed in violent conflicts since the fall of the Berlin Wall in 1989, and nearly one-half of all low-income countries have experienced a major conflict since 1980. Conflicts, and in many cases the stream of refugees they produce, have spilled across borders affecting neighboring states. Nearly every low-income country is adjacent to a country that has experienced breakdown and war.

In most cases, the victims of conflict are not only soldiers, but entire societies. In fact, 90 percent of casualties are non-combatants, especially women and children.

Reflecting the need to ameliorate the disastrous impact of civil conflict on a country's people and economy, the international donor community, led by the World Bank, has begun to refocus on assisting countries in the war-to-peace transition.

The World Bank, since 1980, has supported 157 reconstruction projects with a total lending amount of more than US$6.2 billion. The Bank is also enhancing its effectiveness by partnering with organizations with complementary knowledge and presence on the ground, such as UN agencies, the Red Cross, bilateral donors, and non-governmental organizations.

The Bank's Post-Conflict Unit (PCU), led by Nat Colletta, was established in 1995-96 to coordinate operational support across the Bank in the critical areas of demobilization and reintegration of combatants, reintegration of the internally displaced, demining/mine-action, rehabilitation of basic services, institutional development, reconstruction of critical infrastructure, support to economic management, training and employment, and food security.

The Bank has supported post conflict reconstruction in countries including Albania, Angola, Azerbaijan, Bosnia, Burundi, Cambodia, Chad, Colombia, Croatia, Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Guatemala, Liberia, Rwanda, Sierra Leone, Sri Lanka, Tajikistan, and Uganda. In addition to this operational work, the Bank maintains "Watching Briefs" during conflicts when no active portfolio is possible. These briefs keep track of developments and build a knowledge base that will be useful in preparing programs for action once the conflict has moved toward resolution. Watching Briefs are under preparation for Afghanistan, Georgia, Somalia, Southern Balkans, and Sudan.

In those countries that have returned to conflict in discrete geographic areas, such as Rwanda and Ethiopia, the Bank has been able to remain working in the areas that remain calm. "We avoid those areas with concentrated conflict, but we maintain operational work in the peaceful regions of these countries," remarked Colletta. "And for governments in arrears, though we are unable to provide official lending, we do maintain watching briefs and can provide limited support for reconstruction through special mechanisms such as trust funds."

Post-conflict reconstruction begins by supporting the transition from conflict to peace in an affected country through the rebuilding of the country's socioeconomic framework. Post-conflict reconstruction has two overall objectives: to facilitate the transition to sustainable peace after hostilities have ceased and to support economic and social development.

"We are putting the R back into IBRD," says Nat Colletta, Manager of the World Bank's Post-Conflict Reconstruction Unit (PCU). "The lessons learned from the last two decades of supporting reconstruction, have shown clearly that effective development is possible only in the presence of sustainable peace and security."

Through its efforts thus far, the Bank has learned several lessons, one of which is that inclusiveness, transparency, and sound economic management are crucial to creating sustainable stability. The seeds of conflict can be identified decades before in societies that have bad governance, corruption, and/or fiscal inequalities or mismanagement.

"For countries emerging from conflict, good development will address issues of governance, reknit the social fabric of divided societies, and support the reform of justice and human rights," adds Colletta. "These are the new pillars of sustainable development, and this is the new direction for the World Bank."

Reconstruction must also profoundly involve the input of local communities, and must focus on reaching out to vulnerable populations, such as the women and children who suffer disproportionately from conflict. Among other sacrifices, they lose the basicseducation, health services, and access to farm land. These essentials must be protected and maintained even during periods of conflict to avoid a breakdown in the quality of life of civilians.

The Bank's post-conflict role includes providing flexible and incremental financial assistance as well as much-needed technical assistance. The Bank has recently created new and more flexible funding mechanisms, including Learning and Innovation Loans and the Development Grant Facility's Post Conflict Fund (which is available not only to governments, but also transitional authorities, UN partner agencies, regional bodies, NGOs, and civil society organizations). It is also exploring new ways of providing special assistance to highly indebted post conflict countries.

In addition, technical assistance from World Bank experts is crucial to supplying countries with technical know-how and support desperately needed in the absence of national experts who may have fled during the conflict. The Bank's operational presence also serves as a signal within the country and the international community that confidence, trust, and reconciliation is growing. In this way, the Bank is able to bring new donors and partners to the reconstruction process, further expanding the knowledge and funding options for the country. For more information contact Kristyn Schrader at (202) 458-2736, email kschrader@worldbank.org or Claire Hervey, (202) 473-8294, email chervey@worldbank.org