USIP, Mar 07: Employment Generation and Economic Development in Stabilization and Reconstruction Operations
• It seems logical that improving the lives of those who have suffered from conflict would include a program to generate economic well-being in the immediate period after hostilities subside. Yet livelihood creation, the root of potential economic success and security, has often become a secondary objective in the transformation from war to peace.

• An obvious reason for this relegation to a lower priority is that security, humanitarian needs, and restoring the rule of law often overtake the economic development priorities of any peace-building mission.

• Even in Iraq, the largest stabilization and reconstruction effort undertaken by the U.S. government, restoring livelihoods and getting people back to work remains an unresolved challenge and an unmet agenda. Of the nearly $20 billion of U.S.-appropriated funds to reconstruct Iraq, only $805 million was directed toward jump-starting the private sector.

• Although employment generation is not a new subject in “postwar” literature, lessons about implementation vary from one country to the next. Current knowledge about “golden hour” job creation, which is creating jobs within one year of the cessation of hostilities, is culled more from specific pilot studies than from a coherent overview of what tools exist and how they can be applied.

• This report advances current research by providing such an overview for U.S. government policymakers. It seeks to help the U.S. government work through the lessons learned about the processes needed to generate employment. Moreover, it explores the U.S. government strategy toward golden hour job creation, the existing civilian and military tools, and how these tools can be better incorporated into larger transformation efforts. The report also notes the limitations of U.S. civilian capacity in a nonpermissive environment.