Promoting stability in states affected by conflict is an important challenge for the world today. Conflicts, especially long-term conflicts, devastate rural areas, where livelihoods are based on agriculture. By stimulating agricultural production, local consumption needs are met while market linkages—which are key to the development of a sustainable economy and provision of a stake in continued peace--are reestablished and strengthened. Investment needs in such situations are many and varied, often including infrastructure, marketing systems, extension, health, and education. Conflicts are widespread at present. Most are internal, rooted in ethnic or religious grievances. Others stem from political motivations or competition for economic resources. Whatever the reason, longstanding conflicts persist in countries such as Sudan, Sri Lanka, Colombia, and elsewhere. Prolonged conflict erodes state legitimacy and effectiveness, giving rise to “fragile” and “failed” states. By undermining livelihoods and preventing normal trade patterns, conflicts are an important cause of extreme poverty. As formal and informal economies weaken or even collapse during conflict, rural people often rely on—or revert to—agriculture as their economic mainstay. At the same time, markets often fail in their vital function as a source of supply to meet rural needs and an outlet for the sale of rural goods and services. Post-conflict environments present multiple constraints to revitalizing agriculture, such as destruction of infrastructure; flight of scientists, technicians, and managers; and break-down of social trust. Roving armed groups and deadly landmines may continue to threaten security. People may disengage, fearful to attend meetings or band together with former adversaries in common economic purpose. Under such conditions, private sector and donor investment confidence is typically low. Benefits of Strengthening Markets The often large land area in regions affected by conflict is a major productive resource. Agriculture warrants investment where viable opportunities exist for employment and value-added processing. Investments in the entire agricultural value chain in post-conflict situations are priorities where: Providing economic opportunities offers an alternative to continued conflict and can jump-start the rural economy.
Investments can connect communities previously in conflict and can reduce tensions between resident and returnee communities.
Improvements in economic and social conditions promote stability and thereby avoid further destruction of productive assets.
Reconstruction reduces needs for costly food aid and other humanitarian assistance.
Agricultural investments can mitigate the mismanagement and overexploitation of natural resources that often occurs in conflict-affected areas.
Security has been restored to a sufficient degree, allowing safe mobility and protection of people and property, on which markets depend.
  
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