Determinants of Post-Conflict Economic Assistance

Abstract

Given the importance of violent conflicts and their consequences in global politics, the increasing attention paid to rebuilding conflict-stricken nations by the major powers, and the growing interest in scholarship on these phenomena, theory-building and empirical analysis of post-conflict economic assistance are essential. This article analyzes the determinants of foreign economic assistance given by nations of the OECD, in aggregate, to nations that were involved in international and internal conflicts. The model is designed to address three specific questions. First, in the aftermath of conflict does foreign economic assistance by the OECD increase to conflict-affected nations, or does aid allocation continue as before? Second, does the allocation of foreign economic assistance to conflict actors continue to be influenced by those same factors that determine aid during normal times? Third, to what extent do factors relevant to the conflict itself influence the amount of foreign economic assistance provided by OECD nations? The article contends that both the national attributes of the conflict nations and the characteristics of the conflicts from which they have emerged explain the amount of economic assistance OECD states provide. The findings reveal that such national attributes as humanitarian need, economic openness, and regime transition, as well as conflict characteristics such as military intervention and conflict issues affect aid levels. Aid levels also tend to increase after conflicts, but then begin to level off after several years.