Peacekeeping Boosts Growth But Hurts Stability

UN peacekeeping missions act as significant economic interventions, often stimulating growth in depressed economies.

Cross-Country Analysis:

• Demand & Growth Surge: Data reveals significantly higher economic growth during active UN peacekeeping deployments compared to comparable periods without them.
• Post-Mission Decline: Economic growth rapidly drops after missions conclude, indicating limited support for stable development.

Micro-Level Evidence from Liberia:

• Survey Findings: A survey in Monrovia collected data on the economic impact of UNMIL (United Nations Mission in Liberia).
• Low-Skill Demand: UNMIL spending primarily created demand for low-skill employment within the service sector.
• Limited Upgrades: This demand did not significantly facilitate skill transfers or alleviate credit constraints for business owners.

This "peacekeeping economy" model, while boosting short-term growth via non-traded product demand, proves fragile upon mission withdrawal.