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Economic Dimension of Peacebuilding: Insights into Post-conflict Economic Recovery and Development in Nepal

This article studies economic dimension of peacebuilding, concentrating on post-conflict economic recovery and development (PCERD) in Nepal. The current peace process in Nepal has a historical opportunity to address economic root causes of the armed conflict and lay a foundation for inclusive economic development. However, the economic dimension of peacebuilding has been sidelined by the contentious transitional politics in the Nepali peace process. Taking a maximalist approach to development, this article argues that PCERD in Nepal should be understood as a multiple-faceted long-term process which might incorporate both short-term and long-term priorities. While the short-term priority should target at delivering the economic dividends of peace in the immediate aftermath of the conflict, the long-term priority should be geared towards addressing the economic root causes of the preceding armed conflict as well as laying the foundation for an inclusive economic development. It should be accomplished by taking into account a wider range of the social, economic, political, psychosocial, and security related needs and aspirations of the conflict-affected people as well as the wider populace. Making an analysis from a political economy perspective, this article also discusses potential barriers to PCERD and finds that lack of commitment by the key political actors to engage in policy debates and discussions around economic recovery and development and dwindling post-conflict public security are the barriers to economic recovery and development in post-conflict Nepal.