Words: 2646 plus endnotes Managing the resources for peace: reconstruction and peacebuilding in Aceh Patrick Barron Patrick Barron is a Social Development Specialist at the World Bank, Indonesia. Since 2005, he has managed the Bank’s program of support to the Aceh peace process. The reconstruction of damaged infrastructure and the rehabilitation of the economy in areas previously affected by civil war are vital from both a developmental and security perspective. Conflict destroys infrastructure, increases poverty (although it may enrich some) and affects the delivery of basic services. Capital flight is compounded by the suspension of new inward investment. Breakdowns in social cohesion and trust make it even more difficult for development to occur. Poverty and lack of economic opportunities, and accompanying mistrust of government, can in turn fuel a return to conflict. The difficulties of re-starting economies after conflicts end, and of providing a real peace dividend that demonstrates progress on the ground, is one reason why, according to the World Bank, 44 percent of countries reaching the end of civil war return to conflict within five years. Getting the economy going, creating jobs (especially for former combatants who may be tempted to take up arms again) and rebuilding damaged or destroyed private and public infrastructure are thus key conflict prevention activities in the aftermath of civil wars. The need for post-conflict reconstruction in Aceh Aceh is no exception. Conflict devastated Acehnese life; and economic reconstruction and development are crucial for sustainable peace in Aceh. The thirty-year conflict between the Government of Indonesia and the Free Aceh Movement (GAM) resulted in an estimated 15,000 deaths, the displacement of over 100,000, and widespread trauma. It also severely impacted the economy. i Thousands of houses were damaged or destroyed. During the 1989-98 period, 527 schools were burned or destroyed, and an estimated 880 closed due to damage in the first half of 2003 after the collapse of the Cessation of Hostilities Agreement. 22 percent of village health clinics were damaged by the conflict. Between 11-20 percent of all transport infrastructure in Aceh was directly damaged by the conflict and similar damage was recorded for water and electricity infrastructure. Lack of maintenance, closely related to the presence of conflict, resulted in even more damage.