Although the economic aspects represent an important part in the state building process, the economic aggregates of a state have more in common with failure than success. Indeed, it is difficult to assess the short-term results of an economic in the rebuilding process; the results need to be assessed in a long-term period.
The first problem in the economic process is the choice of investment. All the financial transactions and financial aids made by donors have to be treated in an efficient way in order to avoid wasted investments. The international community and the transitional regime have to plan a long-term program dealing with immediate and future post conflict priorities.
Employment opportunities are the second problem in the process. Keeping a high level of unemployment means a probable return to failure. Employment is also a key factor which has to be assessed in a long-term period. However, employment in the public sector has to the first point to be developed. Indeed, the state needs staff to restore the public order but also to provide the necessary public goods(58). Public employment should be a priority.
Investments in building institutional and social capital should be another priority(59). This development will ensure better governance and the implementation of an economic policy. Private investments are necessary to enable the payment of state employees. Without that, corruption could move back with another risk of failure. Secondly, those private investments should create economic incentives in order to develop a new economic market and a long-term economic growth. So, the first step has to be the financing of the public sector which will then enable the development of the private sector.
In order to set up the rebuilding process, failed states need to be supported by the international community and especially international organizations as the United Nations, NATO, OSCE or the European Union, NGO’s and private organizations. These organizations are responsible for the correct implementation and development of state building process.
58 Susan L. Woodward, Economic Priorities for Successful Peace Implementation, in ending civil wars: the implementation of peace agreements (Stephen John Stedman, Donald Rothchild & Elizabeth M. Cousens, eds., pp. 183‐214, 2002.
59 Susan L. Woodward, Economic Priorities for Successful Peace Implementation, in ending civil wars: the implementation of peace agreements (Stephen John Stedman, Donald Rothchild & Elizabeth M. Cousens, eds., pp. 183‐214, 2002.