Multilateral development assistance agencies increasingly provide aid to conflict ridden areas. Unavoidably, whether before, during, or after civil violence, aid has an effect on conflict. Likewise, conflict has an effect on aid. The purpose of this project is to investigate the effects of economic policies and aid flows upon the risk of civil conflict and to consider how aid can best be allocated so as to enhance the prospects of peace. The policy implications for the multilateral system will be studied in close collaboration with the Development Research Group at the World Bank.
The project consists of two stages. The first stage features the patterns of aid allocations with regard to conflict. Comparisons between bilateral and multilateral assistance allocations (EU and World Bank) will be made. New data will be collected. The second stage features more policy relevant analyses. We will concentrate on policy advice with regard to how multilateral aid can be used to prevent conflict.