New Data on the Economic Impact of UN Peacekeeping

Abstract

The greatest contribution of complex peacekeeping operations to development lies in the restoration of basic peace and security, since this provides incentives for investment in the legal economy. But these operations also directly jump-start the local economy when help is most needed, early in the recovery process, providing employment and incomes that in turn support the restoration of peace and stability. This study collected and analysed data on the local economic impact of eight ongoing UN operations and one historical mission, concluding that they do more economic good and less damage than is commonly believed. Restoring basic security promotes an immediate upsurge in economic activity, some mission spending stimulates the local economy without generating widespread inflation. There is, however, room to increase positive local economic impact, especially in local procurement practice, in how missions go about hiring and paying local personnel and in reducing unintended negative impacts, particularly those associated with labour market distortions.