CiR2P Option 44 | Economic recovery and development
DISCUSSION:
Two substantial economic tasks need to be accomplished by post-conflict nation builders and their international partners. First, immediate economic stabilisation and second, and the much bigger task, to move from basic stabilisation to creating conditions for sustained economic growth. To have a realistic chance of achieving these two very large tasks, peacebuilders should aim to achieve several smaller-scale ancillary tasks, each of which include a climate action dimension.
Immediate economic stabilisation requires:
- Stabilisation of the currency, which can be achieved with technical support and emergency finance available through the International Monetary Fund (IMF). The IMF’s Rapid Financing Instrument provides emergency financial assistance to low-income countries hit by climate-induced disasters.
- Re-establishing a revenue-base should involve considerations about the changing nature of the global economy and the impacts of climate change. Countries highly vulnerable to climate change tend to generate most of their revenue from the export of oil and or agricultural products, both of which may have a limited future.
- Generate donor support to rebuild governance structures with the integration of climate change considerations across government decision making and their agencies as well as through the non-government sector.
Sustained economic (green and climate-resilient) growth requires:
- Investment and technical assistance towards the development of low emissions energy, transport, heavy industry and agricultural systems and activities.
- Taxation and regulatory system that prioritises low emissions activities.
- Diplomatic capabilities to promote domestic agenda and facilitate foreign investment.
- Understanding the risks posed by climate change to communities, businesses, and critical infrastructure, particularly in climate “hot-spots” such as in the Middle East and North Africa.
- Investment in risk reduction and climate adaptation technologies.