Working Paper
From Conflict to Reconstruction

Governments frequently compartmentalize issues of reform and reconstruction into separate strategies and separate ministries (the fate of poverty reduction as well). Donors do likewise, for each has its own responsibilities; the IMF focuses on reform, the UN concentrates on conflict resolution and reconstruction, and the World Bank- whose operations span both agendas-has yet to integrate reform and conflict issues. However, reform and reconstruction cannot be kept separate if conflict is to be halted and poverty reduced. Biases in public spending, predatory taxation, and bad policy encourage conflict by reducing the incomes, both absolutely and relative to others, of social groups that suffer such discrimination-thereby inflaming ethnic and regional tensions, and helping demagogues recruit their followers.