The Economic and Political Consequences of Conflict and Implications for Post-Conflict Recovery in Africa
In sub-Saharan Africa (SSA) one in every five people is directly affected by civil war. So it is not surprising that a recent multi-agency report on the prospects of Africa’s development identifies the task of overcoming the conflict-poverty trap as the most basic and most serious challenge facing sub-Saharan Africa at the time of writing (World Bank, 2000).1 The essence of this trap is not only reflected by the bi-causal relationship between growth (and hence poverty) and the risk of conflict, but also has pivotal linkages with other fundamental variables necessary for post-conflict economic recovery.
KeywordsReal Exchange Rate Government Consumption Private Investment Public Investment Money Demand
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