Position Paper by nikeborome



Position Paper

 May 2010                                                                                                     and civilian agencies) is an important precon-
                                                                                                              dition for the success of such a strategy.

 Conflict Prevention and Peace Building in                                                                    Foreign, security and development policies
                                                                                                              are therefore intrinsically linked. Since the
 Development Cooperation                                                                                      mid-1990s, conflict prevention and peace
                                                                                                              building have formed an integral part of the
                                                                                                              projects and programmes supported by KfW
                                                                                                              Entwicklungsbank. Over 30% of the activities
 KC Governance
                                                                                                              supported by the German Federal Govern-
 KfW Entwicklungsbank
                                                                                                              ment's Financial Cooperation are in countries
                                                                                                              where there is a heightened need for conflict
                                                                                                              prevention, where acts of violence are an
 Challenges facing conflict prevention and           Preventing conflicts from escalating into                acute problem or in post-conflict countries.
 peace building                                      violence and providing effective support for
                                                                                                              Financial Cooperation in conflict
                                                     conflict resolution, is a thus a crucial chal-
 War and armed conflict are among the princi-                                                                 prevention and peace building
                                                     lenge for international and development co-
 pal obstacles to development. They quickly
                                                     operation. Violence and war have a lasting               Conflict prevention and peace building both
 destroy years of development gains, and their
                                                     impact; so the various processes of change               create particular challenges for development
 impact lasts for decades. Over 90% of the
                                                     must be addressed in a conflict-sensitive                partners. Besides a conflict-sensitive design
 wars and armed conflicts that have occurred
                                                     manner to create a sustainable peace.                    of “regular” programmes, a range of specific
 since 1945 have taken place in developing
                                                                                                              approaches for effective conflict prevention
 countries, hampering sustainable develop-           Peace and development
                                                                                                              and management has been developed.
 ment and seriously damaging their political
                                                     The key to long-lasting conflict resolution lies
 and economic stability.                                                                                      In general, these approaches seek to bring
                                                     in restoring the state’s legitimacy and monop-
                                                                                                              stability while addressing the structural
 Especially since the early 1990s the nature of      oly on power. This involves renewing the
                                                                                                              causes of conflict. The overall concept is to
 these conflicts is increasingly complex. Vio-       population's trust in state institutions and
                                                                                                              promote the legitimacy and transparency of
 lence often arises from simmering long-term         restoring their capacity to deliver public
                                                                                                              the state, to involve the population in decision-
 disputes. In many cases it is nurtured by           goods. The establishment of state authority
                                                                                                              making, to prevent economic and social dis-
 divisive identity policies which exploit struc-     must be linked to the (re-)establishment of the
                                                                                                              crimination, and to encourage a culture in
 tural factors such as ethnic or religious differ-   rule of law, so that the power of the state can
                                                                                                              which interests are reconciled through non-
 ences. Human rights violations on a massive         be controlled effectively. Humanitarian aid
                                                                                                              violent means. On behalf of the Federal Gov-
 scale are frequently committed on the civilian      must therefore be accompanied and eventu-
                                                                                                              ernment, KfW Entwicklungsbank projects
 population. Often war and crime are inter-          ally replaced by a comprehensive reconstruc-
                                                                                                              support conflict prevention objectives through
 woven. Existing cleavages may become                tion strategy, covering basic public services,
                                                                                                              regional approaches, national programmes,
 increasingly volatile as a result of climate        social, civil and institutional relationships, and
                                                                                                              and at the local level. KfW always seeks to
 change, which adds pressure on scarce               the revitalisation of the local economy. The
                                                                                                              create an environment of structural stability in
 resources such as water and farmland. The           coordinated action of all parties involved
                                                                                                              crisis-prone developing countries.
 boundary between war and peace - and in             (national as well as international, both state
 many cases even between the warring parties                                                                  The following are examples of five central
 - tends to become blurred. Many of today’s                                                                   fields of German Financial Cooperation activ-
 "post-conflict societies" do not follow a linear                                                             ity.
 transition from war to peace, but find them-
                                                                                                              1. Reconstruction and employment
 selves in a continuing state of uncertainty.
                                                                                                              in post-conflict situations
 The effects of war and violence remain pre-
 sent, even after ceasefires or peace treaties                                                                After a violent conflict, the immediate priority
 have been implemented. Different regions                                                                     is to improve the affected population's living
 within a country often have different levels of                                                              conditions. Through the provision of housing,
 stability, and recurrent outbreaks of violence                                                               water supply, health care and facilities for
 are not uncommon.                                   Inauguration of a substation in Afghanistan              basic education, the projects and programmes
                                                                                                              supported by KfW Entwicklungsbank contrib-


                                                      Afghanistan                                            Programmes are most likely to succeed if they
                                                                                                             pursue a holistic approach that brings the
                                                      After a quarter century of armed conflict and
                                                                                                             offenders, the victims and the local population
                                                      the inhumane rule of the Taliban, the country's
                                                                                                             together while addressing their specific needs.
                                                      social and economic infrastructure is largely in
                                                                                                             In the DR Congo and Liberia, such specific
                                                      ruins. In 2002 KfW, in consultation with the
                                                                                                             needs relate especially to women who became
                                                      Afghan government, began analysing the
                                                                                                             victims of sexual violence during the war. They
                                                      population’s most pressing needs. Improving
                                                                                                             receive both medical care and psycho-social
                                                      drinking water and electricity supply, rehabili-
                                                                                                             counselling to assist them in returning to as
                                                      tating economic infrastructure (roads, bridges,
                                                                                                             normal a civilian life as possible.
                                                      markets, and airports) setting up health facili-
                                                      ties and providing them with medical equip-            Syria - Iraq
                                                      ment and medicines, and rehabilitating pri-
                                                                                                             Violent conflicts affect civilians most of all;
                                                      mary as well as vocational training schools
                                                                                                             refugees or internally displaced persons lose
                                                      and equiping them with furniture and teaching
                                                      materials were identified as the most urgent
                                                                                                             their livelihoods. This places an excessive
  Reconstruction work in Afghanistan                                                                         strain on the states and communities that
                                                      requirements. Through the immediate imple-
 ute to meeting people's basic needs. In addi-                                                               receive them, and in particular on the basic
                                                      mentation of such projects, addressing these
 tion, KfW supports its partners in the construc-                                                            services they provide. Under an emergency
                                                      basic needs, KfW on behalf of the Federal
 tion of bridges and roads and in the restora-                                                               programme in Syria, German Financial Coop-
                                                      Government helps creating the necessary
 tion of basic energy supplies to aid the return                                                             eration is therefore financing the rehabilitation,
                                                      preconditions for the country to return to
 to normality. Rapid reconstruction sends out                                                                expansion and equipment of schools - where
                                                      peace. Furthermore, German Financial Coop-
 an encouraging sign that gives people hope                                                                  many students are refugee children from Iraq
                                                      eration contributes to a trust fund managed by
 for the future, makes them trust in the post-                                                               - as well as the construction of new school
                                                      the donor community which finances the
 war order and, not least, constitutes an impor-                                                             facilities. The programme is creating addi-
                                                      salaries of public servants as well as national
 tant element in the implementation of many                                                                  tional capacity to accommodate both Syrian
                                                      programmes for community-based projects in
 peace agreements.                                                                                           and Iraqi children in densely populated re-
                                                      various sectors. This ensures a basic supply
                                                                                                             gions around Damascus. This not only con-
 Along with the destruction of infrastructure,        of public services until the Afghan government
                                                                                                             tributes to improving the living conditions of
 the poor employment and income situation is          is capable of ensuring these services itself.
                                                                                                             the refugees, but also to preventing conflicts
 another central problem in post-conflict coun-
                                                      2. A peaceful future for victims                       from erupting in the host country.
 tries. Once violence has ended, KfW-
                                                      and offenders
 supported projects provide temporary paid                                                                   3. A transparent regulatory framework
 labour to workers through the rapid implemen-        Reintegrating ex-combatants and soldiers into
                                                                                                             In crisis-prone countries the absence of a se-
 tation of employment schemes. By enabling            civil society is essential for securing peace in
                                                                                                             cure legal framework not only hinders develop-
 income to be generated in this way, German           post-conflict countries. Unless former fighters
                                                                                                             ment efforts but also is also one factor that can
 Financial Cooperation increases people's             are offered the prospect of a new life immedi-
                                                                                                             favour the emergence of violent conflict. Unset-
 ability to help them selves and gives them the       ately after they are disarmed, banditry and an
                                                                                                             tled ownership issues, patronage and corruption
 opportunity to improve their families' living        increase in violent crime are likely to follow.
                                                                                                             cause the population to be increasingly suspi-
 conditions.                                          The risk of a renewed violent escalation of the
                                                                                                             cious of the state. Through the projects and
                                                      conflict then increases.
 With these objectives in mind, KfW Entwick-                                                                 programmes it finances in these countries, KfW
 lungsbank on behalf of the Federal Govern-           Alongside the demobilisation and reintegration         seeks to foster transparency and public ac-
 ment is supporting reconstruction efforts in         programmes jointly supported by the donor              countability, to involve both public and private
 Afghanistan, the Palestinian Territories, the        community, former combatants are also delib-           sector organisations and thereby to counteract
 Democratic Republic of Congo, Liberia and            erately integrated into reconstruction and em-         the development of informal networks and the
 Sierra Leone. Liberia has so far been particu-       ployment programmes financed by German                 unilateral imposition of the will of particular
 larly successful in its transition to peace. Here,   Financial Cooperation (FC).                            interest groups.
 reconstruction work takes place under the
                                                                                                             The Democratic Republic of Congo is undergo-
 umbrella of committed political reform. German
                                                                                                             ing a phase of reconstruction and transforma-
 FC supports these efforts with a programme for
                                                                                                             tion, but in the east of the country violent con-
 reintegration and reconstruction. Infrastructure
                                                                                                             frontations continue. While projects in these
 and basic services are currently being im-
                                                                                                             trouble spots are focused on reconstruction and
 proved for some 15,000 families, following
                                                                                                             stabilisation, the recreation of transparent
 priorities agreed with villagers and state au-
                                                                                                             structures and processes remains the long-
 thorities. In addition, Germany contributes
                                                                                                             term objective. Against a background of wide-
 through FC to a multi-donor effort to recon-
                                                                                                             spread corruption, German Financial Coopera-
 struction by financial support to the Liberia
                                                                                                             tion is currently working in the microfinance
 Reconstruction Trust Fund and an active role in      Primary school in Syria
                                                                                                             sector to promote the transition to the rule of
 the Fund’s oversight committee.
                                                                                                             law and to market economy structures.

                                                    Guatemala                                           communal or criminal violence. This makes
                                                                                                        the prevention of local violence an important
                                                    The FC project to promote regional centres of
                                                                                                        element of peace building in Financial Coop-
                                                    the Universidad Rafael Landívar (URL) was
                                                                                                        eration. This field of action is growing in im-
                                                    designed to benefit students from indigenous
                                                                                                        portance because of the problems of increas-
                                                    and poor families in particular. After their
                                                                                                        ing urbanisation and not least as a conse-
                                                    studies at the URL, most of them work as
                                                                                                        quence of the economic and food price crises
                                                    technical or management professionals in
                                                                                                        in 2008 and 2009. In many cities, the inhabi-
                                                    their respective regions, which qualifies them
                                                                                                        tants suffer from repression at the hands of
                                                    to play an active part in shaping their country's
                                                                                                        the state and the police, unemployment,
  A cookshop in Congo -                             political and economic progress. The expan-
                                                                                                        hostility towards immigrants or the spread of
                                                    sion of the URL’s regional centres, a scholar-
                                                                                                        HIV/AIDS. This leads to a lack of prospects
                                                    ship programme and the promotion of free
 Democratic Republic of Congo                                                                           which can easily end in violence and crime,
                                                    legal services gives the marginalised indige-
                                                                                                        especially when it is politically exploited and
 German Financial Cooperation is helping            nous population improved access to educa-
                                                                                                        radicalised. FC-financed urban violence pre-
 professionally run, corruption-free, politically   tion and to the legal system. These measures
                                                                                                        vention measures address this criminal vio-
 independent NGOs to develop into microfi-          address root causes of the conflict in Guate-
                                                                                                        lence within the framework of municipal de-
 nance institutions. Through a "Challenge           mala, and they contribute both to the imple-
                                                                                                        velopment and slum rehabilitation pro-
 Fund", they are being helped to evolve into        mentation of the peace process and to the
                                                                                                        grammes. By working with young people, they
 transparently run microfinance institutions and    modernisation of the country's society and
                                                                                                        aim first and foremost to prevent the spread of
 reliable partners for local micro-businesses.      political institutions.
                                                                                                        conflict and violence.
 KfW is also participating in the establishment
 and development of ProCredit Bank which, in                                                            South Africa
 addition to providing microloans and savings
                                                                                                        In Khayelitsha, a township on the outskirts of
 accounts to individual customers, is the first
                                                                                                        Cape Town, German FC is supporting efforts
 bank in the country to introduce ATMs. Along
                                                                                                        to reduce the rates of murder and violence,
 with other donors, KfW has had a seat on the
                                                                                                        which are significantly higher than in the rest
 supervisory board for several years, ensuring
                                                                                                        of the world. Some of the causes are rooted in
 that the bank operates in a transparent manner
                                                                                                        the apartheid era and reflect a lack of mutual
 and combines banking standards with devel-
                                                                                                        trust, not just between the state and the popu-
 opment orientation. In comparison with the
                                                                                                        lation, but also among the local population
 informal and even illegal business practices         Guatemala                                         itself. For these reasons German FC is sup-
 that are widespread throughout the DR Congo,
                                                                                                        porting the local population, civil society, local
 ProCredit Bank stands out because of its effi-
                                                      Furthermore, programmes aimed at promot-          NGOs and the municipal and provincial ad-
 ciency, transparency and competence. Its
                                                      ing decentralisation place responsibility for     ministration in jointly prioritising the implemen-
 business policy is free from political influence
                                                      development activities in the hands of local      tation and maintenance of public infrastruc-
 and it operates purely in accordance with
                                                      administrations and support them during the       ture. Local initiatives are being supported in
 banking criteria, thereby setting a positive
                                                      implementation process. One such example          planning and implementing their own small-
 example of transparency and accountability.
                                                      is the involvement of German FC in the            scale projects which benefit the general pub-
 Automised payment of salaries for ministerial
                                                      Tuareg region in northern Niger. Here KfW         lic. German FC is also supporting local NGOs
 staff can, for example, reduce room for corrup-
                                                      Entwicklungsbank supports decentralisation        in counselling victims and perpetrators of
 tion through fake employments.
                                                      with the aid of a local development fund.         violence. This enables the various groups to
 4. Reconciliation of social                          The programme contributes to the stabiliza-       come together and to perceive each other for
 and economic differences                             tion of the region as it addresses the central    the first time as partners who should be taken
                                                      grievances of the Tuareg. It gives the semi-      seriously and who are working for each
 Ethnic and religious discrimination against
                                                      nomadic minority, improved opportunities to       other's benefit. The people also realise that
 specific population groups are often the cause
                                                      gain more autonomy through their own              they can shape the development of their
 of protracted social conflict. By supporting the
                                                      initiative in their traditional environment       community. Projects now in place include
 involvement of discriminated groups in politi-
                                                      within the structures of state and thus helps     mini-pitches where children and youths play
 cal decision-making processes and by pro-
                                                      transforming the conflict into “minor” nego-      football. In playing games, they learn to follow
 moting the consideration of their interests, the
                                                      tiation processes.                                rules and to respect each other, and they
 projects and programmes supported by KfW
                                                                                                        work out their aggression through sport.
 on behalf of the Federal Government can help
                                                      5. Local violence prevention                      Whereas the national murder rate dropped by
 to defuse this potential for conflict.
                                                      is conflict prevention                            only 2% last year, the activities financed by
 In Guatemala, social discrimination against                                                            the FC contributed to reducing the murder
 the Mayan population is seen as the main             In many contemporary violent conflicts there      rate in Khayelitsha by 32% (100 fewer
 cause of the civil war, which ended in 1996.         are no clear boundaries between war and           deaths).


 These five fields of action highlight the broad                                                       conflicts. It thus creates the fundamental
 spectrum of measures which KfW Develop-                                                               prerequisites for sustainable development in
 ment Bank is supporting in the areas of con-                                                          countries with the potential for conflict, coun-
 flict prevention and peace building. However,                                                         tries undergoing violent conflict and post-
 the range of measures also covers emer-                                                               conflict countries.
 gency assistance such as the supply and
 distribution of food, and it extends to regional
 peace building programmes such as transna-                                                            Further information:
 tional conservation areas, known as "peace                                                         
                                                    Playground in Khayelitsha
 parks". In all these fields of action the main                                                        KfW Development Bank
 concern is not the financed investment itself                                                         KC Governance
                                                    reconciliation of interests and supports the
 but how it is designed. By taking a participa-                                                        E-mail: governance@kfw.de
                                                    development of the state, German FC can
 tory approach that builds on the non-violent                                                          Tel: +49 (0) 69 7431-3529 
                                                    contribute to preventing and mitigating violent


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