Drawing on civil war incidences in 41 countries between years 1960 and 2003, a new World Bank paper compares economic, social and political developments in the pre and post-war periods.
The paper finds that once peace is achieved and sustained, effective recovery is feasible. The average growth in the sample countries exceeded prewar levels by over 2 percent, which, in the absence of investment, the authors attribute mostly to improvements in productivity and better resource utilization.
Lastly, the authors imply a connection between aid and growth by implicitly linking the reallocation of resources away from military expenditures to progress in social areas and a higher income per capita.
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