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Rebuilding Livelihoods of the Poor Affected by Conflict Through Donor-Led Market- Based Approaches: the Case of Liberia

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Rebuilding Livelihoods of the Poor Affected by Conflict Through Donor-Led Market- Based Approaches: the Case of Liberia Rebuilding Livelihoods of the Poor Affected by Conflict through Donor-Led Market- Based Approaches: The Case of Liberia RUTH RUTENDO BUTTERWORTH A thesis submitted in partial fulfilment of the requirements of the University of Greenwich for the Degree of Doctor of Philosophy May 2015 ACKNOWLEDGEMENTS First and foremost, I would like to express my sincere gratitude to my first supervisor, Dr Alistair Sutherland of Natural Resources Institute, University of Greenwich, for his continuous support throughout the process of this PhD. His knowledge, wisdom and guidance have been immeasurable in accomplishing this PhD. Secondly my thanks go to my second supervisor, Dr Gideon Onumah for his constructive encouragement and motivation, including in the formative stages of this thesis. Thirdly, my sincere thanks go to my former supervisors, Dr Alastair Orr and Dr Junior Davis, for starting me off in this PhD process. Further appreciations are extended to my internal examiners at the MPhil-PhD stage, Professor John Morton and Ms Claire Coote, for their constructive feedback. I also wish to thank the University of Greenwich for financial support availed under their invaluable ‘staff development programme’. Without this initial support, this PhD would never have been started. I am also immensely indebted to the following INGOs in Liberia: Concern Worldwide, Oxfam Great Britain and Welthungerhilfe for their consent to base this research on their work. The resources provided enabled repeat fieldwork visits which enhanced these thesis results. In addition, the cooperation and patience of participants during numerous data collection phases, at a time when they were extremely busy rebuilding their livelihoods after the devastating Liberian conflict, is greatly appreciated. My further thanks go to numerous Liberian institutions, both, government and non-governmental, in particular the Ministry of Planning and Economic Affairs and the Liberian international non- governmental organisation network, for their support and insights. Lastly, I am extremely grateful to all my friends and family for their support in different forms during the process of this PhD. I would like to thank my former colleagues at the Natural Resources Institute for their insightful comments and suggestions at different levels along the process of this PhD. To Sylvia and Alan Butterworth, to my mother, thank you. Lastly, my sincere thanks are extended to Mark for his invaluable insights into humanitarian aid work and for seeing me through this lengthy and sometimes arduous process. iii ABSTRACT A pro-poor market-based approach has increasingly been adopted by INGOs as a livelihoods rebuilding strategy following destructive armed-conflicts. However, there remains a gap in knowledge of the feasibility of such an approach in post-conflict contexts. This research seeks to address this gap. It questions whether pro-poor and donor-led market-based approaches work within post-conflict environments and, if so, under what conditions? The results are from an analysis of case study-based data collected from twenty-one microenterprise groups from three diverse counties of Liberia, six years after the armed- conflict. The research reveals that local context in post-conflict environments play an important role in the extent to which a market-based approach might achieve its underlying objectives of broad-based, sustainability and growth enterprises. On one hand, the losses and changes in the entitlement systems of the poor restrict their ability to both operate and to potentially sustain market-based livelihoods promoted through donor-led initiatives beyond the period of direct support. On the other, the extent to which conflict affects local market-systems also shapes outcomes of a post-conflict market-based approach. Shortcomings within the private and government sectors hinder application of market-based principles by increasing the role of the INGO to more than a facilitating role, thus further compromising sustainability of microenterprises .Positively, results suggest that, in spite of low income gains, a market- based approach holds potential to empower direct beneficiaries through skills gains, improve their self-esteem and contribute towards peacebuilding within local communities. To further advance this field of research, future donor-led programme design and implementation needs to balance the post-conflict reconstruction urgency with context- specificity, not only that related to the target groups, but also the extent to which the wider and immediate market environment are able to support a market-based approach. Hurried actions risk exclusion of the most vulnerable groups in society through both direct and indirect factors arising from conflict. Yet, a broad-based economic development is essential in a post-conflict environment to reduce both underdevelopment and the risk to return to war. iv CONTENTS TITLE ................................................................................... Error! Bookmark not defined. DECLARATION .................................................................................................................... ii ACKNOWLEDGEMENTS .................................................................................................. iii ABSTRACT ........................................................................................................................... iv CONTENTS ............................................................................................................................ v LIST OF TABLES ................................................................................................................ xi LIST OF FIGURES ............................................................................................................ xiii LIST OF BOXES ................................................................................................................ xiv LIST OF PLATES ............................................................................................................... xv GLOSSARY OF LIBERIAN TERMS USED .................................................................. xvi CURRENCY CONVERSION RATES ............................................................................ xvii ABBREVIATIONS ........................................................................................................... xviii Chapter 1 : Research Problem .................................................................................................. 1 1.0 Background to the Study ...................................................................................... 1 1.1 Problem Statement ............................................................................................... 3 1.2 Rationale and Significance of the Study .............................................................. 6 1.3 Aim and Objectives of the Study ......................................................................... 8 1.4 Research Questions .............................................................................................. 9 1.5 Geographical Scope of the Study ....................................................................... 11 1.6 Outline and Structure of the Study ..................................................................... 12 Chapter 2 : Review of Economic Costs of Armed-Conflict and Challenges for Micro- Economic Recovery ............................................................................................................... 14 2.0 Introduction ........................................................................................................ 14 2.1 Trends and Causes of Armed-conflicts .............................................................. 14 2.1.1 The Common Causes of Conflict ................................................................... 15 v 2.2 Effects of Armed-Conflicts on Entitlements of the Poor ................................... 18 2.2.1 Armed-Conflicts and Impact on Direct Entitlements ..................................... 19 2.2.1.1 Effects of Armed-Conflict on Direct Entitlements in the Rebuilding Phase . 21 2.2.2 Effects of Armed-Conflict on Market Entitlements ....................................... 22 2.2.2.1 Complexity of Effects of Armed-Conflict on Economic Entitlements .......... 27 2.2.3 Effects of Armed-Conflict on Other Entitlements ......................................... 29 2.2.3.1 Public Entitlements Failure ............................................................................ 29 2.2.3.2 Role of Civic Entitlements ............................................................................. 31 2.2.3.3 Access to Entitlements through Illegal Activities .......................................... 31 2.3 Microenterprise Strategy for Post-Conflict Microeconomic Recovery ............. 33 2.3.1 Development through Microenterprise Strategy ............................................ 33 2.3.2.1 Financial and Capacity Building Provision Approach ............................... 38 2.3.2.2 Developing Group-Based Marketing Strategies ........................................ 42 2.3.3 Assessing Pro-Poor Enterprise Development Success ................................... 44 2.3.4 Current Thinking on Pro-Poor Enterprise Development in Post-Conflict Environments ................................................................................................................. 4 7 2.3.4.1 Early Economic Recovery Programmes .......................................................
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