Abstract for the planned doctoral research project:
Financing development process has always been a key challenge for the developing countries, this is specifically true for resource poor countries. The need for finance becomes more urgent and larger in scale in post-conflict developing countries. Particularly when the conflict results in a massive destruction to capital assets. Such countries find themselves in the face of numerous expenditure needs to meet the reconstruction process requirements (e.g. restoring destroyed infrastructure, rebuilding state institutions, and disarmament, demobilization, and reintegration programmes DDRs). With only little revenues generated from taxing the remaining functioning activities on the other hand. Hence, the fiscal position in most post-conflict countries has been precarious.
On the other hand, only limited number of alternatives are available for financing fiscal deficits in the post-conflict phase. The foreign aid and the foreign borrowing are the primary sources for covering such a deficit. Each of the two has its own limitation and drawbacks.
The research aims at proposing and testing the feasibility of a new financing mechanism that can be implemented to finance the public deficit in post-conflict economies in particular, and in developing countries in general. The research will try to test the proposed mechanism on The Syrian Arab Republic, as it is one of the most prominent and recent cases of enormously war-torn economies.
The concept of the proposed mechanism is based on an informal institutional financing mechanism that is widely spread in several Arab countries, including Syria.
Supervisor: Prof. Löwenstein