Withdrawing development assistance as a threat
W The usefulness of cutting development assistance largely
depends on the targeted party’s access to and value of
alternative revenue sources, including foreign direct
investment (FDI) and Diaspora remittances (see CCDP
Issue Brief 3 on Private Sector Investment).
W Withdrawing aid can be an effective political strategy to
exert pressure on governments that are highly aid
dependent, and can increase perceptions of economic
and political isolation of targeted elites.
W Threatening to cut or discontinuing development
assistance can have high political costs because it creates
a climate of adversity and resentment that can undermine
a peace process.
W Threats of aid withdrawal are often a political strategy that
does not have direct effects on the ground because targeted
parties usually have a high degree of threat resistance.
Aid instruments for peace processes
W Aid instruments are mechanisms and procedures through
which development agencies channel resources to fragile
and conflict states. They involve, for example, projects,
trust funds, budget support, or technical cooperation. By
increasing the benefits associated with a peace agreement,
aid instruments can become an incentive for peace.
W Development projects are flexible means of aid delivery that
can be adjusted to the context. They can be used to disburse
funds ‘around’ state institutions, to establish a relationship
with NSAGs, to access communities in territories outside
the de-facto control of the government, and to mobilise
immediate results through quick impact projects. Projects
have been found to have limited long-term impact if not
embedded in local ownership and institutions.