Overview
Clear Answers
Unresolved Problems There is universal agreement that a state needs strong institutions, but some issues on how to create and strengthen these institutions remain unresolved. For a comprehensive discussion we have adopted a wide definition of institution building, which entails structural reform as well as capacity building and mere strengthening of existing institutions. Overview Institution building is the creation of governance capacities. It entails the dismantling and reformation of old organizations and institutions-- legal, administrative, economic as well as social-- the improvement of efficiency and effectiveness of existing institutions, the restoration of destroyed institutions and the enhancement of authorities' professionalism. In most cases institutional foundations of crisis countries were already weak before and deteriorate during crisis. They suffer from widespread inefficiency and lack of transparency. Furthermore, conflict countries generally experience a sharp fall in the level of education. Hence in the aftermath of conflict, the problems of governance are aggravated even further by the general shortage of trained and educated personnel due to killing and emigration as well as lack of education. Given corruption and state collapse, many donors channel their aid through NGOs, seeking to provide services usually administered by state structures, such as education and health. War tribunals and emerging "international norms and values" further inadvertently supplant the state, reducing the capacity of the state to impose its will. Therefore, a major implication for the reconstruction phase is to (re)build state institutions, which can provide the rule of law and basic services for the war-exhausted society. It becomes important to build local decision-making and administrative capacity as quickly as possible, because this is a major bottleneck for the distribution of foreign aid. However, decentralization and strengthening of local authorities should only be undertaken in tandem with revitalization of the center. Otherwise, there is a potential threat that local authorities with a strong interest in secession emerge and might rip the state asunder before its reconstruction has even started. Clear Answers To take care of its population a state needs strong institutions. The executive, the legislative and the judicial branch have to be restored to maintain law and order and so that the state can provide fundamental services to its citizens. - Public Sector Reform: The costs of maintaining an effective administration usually takes up the largest part of the national budget. All post-conflict governments face tight budget constraints, on the one hand because civil war is costly and destroys the potential tax base of the economy and on the other hand due to tight macroeconomic policies imposed by development agencies, which assist the country in its economic recovery. Smart downsizing is one strategy to improve cost effectiveness of public administration. However, attention must be paid to the security problem that an increase in unemployment also increases the number of potential recruits for warlords.
- Decentralization: Rapid downsizing of administrative institutions can lead to the destabilization of society if there is lack of economic alternatives for laid off public officials. Through decentralization people learn how to govern themselves. The establishment of local institutions, which provide for participatory decision making mechanisms, potentially encourage the population to actively engage in local politics and to restore the local economy. However, local institutions and civil society organizations have to be monitored to avoid discrimination of local agents against former adversaries, and to guarantee an equitable distribution of transfers and tax proceeds.
- Rule of Law: The creation of transparent legislative and judicial institutions is important for reconciliation and to establish trust in the post-conflict government. Extreme conflicts often lead to deliberate destruction of legal infrastructure and the judiciary. Furthermore, post-conflict societies sometimes suffer from the complete absence of at least minimally trained lawyers and judges. International experts can assist in the restoration of the legal framework, by providing their expertise through legislative assistance in drafting laws and by training legislators, lawyers and judges. At the same time, independence and accountability of the justice system has to be promoted. The administration of justice must be based on rule of law and human rights to establish the trust of the society in these newly restored institutions.
- Law Enforcement: The involvement of law enforcement agencies-– military and police-– in the conflict poses a major challenge to reform and institutional strengthening. International agencies have to be very careful in addressing police reform to avoid the danger of strengthening potentially regressive capabilities and to irreversibly undermine the credibility of police forces. To break with the past, the former structure of law enforcement agencies has to be completely overhauled. Political neutrality of police forces has to be established. Accountability of police officers has to be introduced, monitored and enforced.
- Economic Institutions: Legal reform plays an important role in reviving the financial framework and economic institutions, such as property rights, banking laws, and tax laws. At the same time, politically sensitive public administration reform is an essential ingredient of economic rehabilitation. Transparent administrative institutions which are free from corruption increase economic activity by creating a stable environment for national and foreign investors.
- Corruption: Transparency of institutional mechanisms is one way to prevent or at least diminish the level of corruption in the public administration. Strict separation of powers addresses corruption at the political level. The constitution should provide for mutual independence of the legislative, the executive and the judiciary. At the same time, authority to review the respective other branches should be constitutionally conferred to each body.
Unresolved Problems - Corruption and Decentralization: Experience indicates that no clear statement can be made whether building of central rather than local institutional capacities increases effectiveness and responsiveness while decreasing corruption and inefficiency.
- International Donors: International donor assistance is urgently needed to provide post-conflict governments with sufficient resources for institutional reform and rehabilitation of the economic infrastructure. Absence of international donors increases the threat of political instability. But there are two major issues concerning external assistance. Firstly, their programs for institutional capacity building involve high costs, but at the same time they are only of limited relevance due to lack of knowledge and understanding of the local political and social landscape by highly paid external experts. The second problem of international assistance concerns the occasional aggravation of labor shortages in the national public institutions, because skilled employees take up better-paid jobs in international agencies.
- Institutions and Democratization: The majority of case studies in post-conflict and transition countries indicate that pressure for early elections can threaten the future of democracy. If elections are held before basic institutions are in place, their results can backfire on the future credibility of the still weak state institutions. Early elections might prevent addressing the fundamental institutional foundations for recovery and stability, in particular in societies with large disparities in the sizes of ethnic groups. On the other hand, it is hard not to give in to the argument that only by holding early elections can credible institutions and a legitimate government, which carries the leverage of the popular vote, be established. There is no clear answer to what should come first, institutions or elections. Democratic tradition and history of government institutions of each individual country case have to be evaluated.
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