Policies that aim at reducing conflict can operate by improving the returns to non-violent careers, by increasing the likelihood of detection and punishment, or by improving the ability of competing actors to find non-violent solutions. One challenge that remains for those public policies is to address the underlying socio-economic factors that contribute to violence and instability, to avoid vicious cycles of underdevelopment and violence.
Specifically, this theme focuses on:
- Labour market, educational and fiscal policies. Policies designed to enhance job-market opportunities and income-generating activities in conflict-prone areas have the potential to yield significant positive impacts on conflict reduction, by reducing the opportunity cost of joining an armed group.
- Managing disincentives for conflict. Public policy can make the costs of conflict (to society and potential perpetrators) more certain, credible as a disincentive for violence.
- Resources and illicit goods and services. Legal and illegal resources are a substantial source of violence, when used as a source of financing for armed movement, or through disputes over resource extraction and rights.
- Foreign aid and cash transfers. Foreign aid and conditional cash transfer do not always translate into a reduction of conflict. Systematic evidence is needed to understand the conditions under which transfers can backfire and the reasons behind such occurrences.
- Welfare, health programmes and services. In post-conflict situation, welfare programmes could play a crucial role in fostering reconciliation between civilians and institutions. More systematic evidence is needed to study the interplay between welfare programmes, trust in institutions, and violence.