The Shadow Economy in Conflict-Affected Countries
Publisher: Brigitte Rohwerder
Date: 2013
Topics: Basic Services, Economic Recovery, Livelihoods
Targeting the shadow economy in conflict-affected contexts is a complex task about which little is known (expert comment). This rapid literature review uncovered little focusing on interventions aimed at incentivising war profiteers to join the legal economy and even less on leveraging the positive social function that shadow economies can provide to conflict-affected populations.
Nevertheless, despite being “a very complex issue to which there is no quick solution” (expert comment), a number of lessons and suggestions have emerged of approaches which can be used to (i) leverage the positive social function that shadow economies provide to conflict-affected populations; and (ii) incentivise war profiteers to join the legal economy in post conflict environments. These include flagging up interventions which have had a detrimental impact.