Understanding the Livelihoods of Former Insurgents : Aceh, Indonesia

This paper documents significant differences in the impacts the war in Aceh had on ex-combatants and civilians and how these differences shaped the post-war decision-making processes of their households. Because of the overwhelming percentage of th...

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Bibliographic Details
Main Author: Tajima, Yuhki
Format: Working Paper
Language:English
en_US
Published: World Bank, Jakarta 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/804951468262794564/Understanding-the-livelihoods-of-former-insurgents-Aceh-Indonesia
http://hdl.handle.net/10986/27784
Description
Summary:This paper documents significant differences in the impacts the war in Aceh had on ex-combatants and civilians and how these differences shaped the post-war decision-making processes of their households. Because of the overwhelming percentage of the ex-combatant population in rural areas (over 90 percent), particular attention is paid to the agricultural sector. The second section provides summary statistics of former combatants' household and individual characteristics, and economic conditions. In order to place the economic conditions of former combatants in context, the section will include a comparison of former combatants with civilians. After the end of the war, ex-combatants were found to have fewer assets, more injuries, and lower educational attainment than civilians. After providing an overview of the economic welfare of former combatants and civilians, an analytical framework is developed in the third section that will be used to understand the variation in economic outcomes of former combatants. The framework will draw connections between the varying degree to which war affects individuals and communities to the post-war decisions and processes that lead to differences in ex-combatants' economic outcomes. In the fourth section, field data from nine village case studies from three districts in Aceh will be marshaled to place the analytical framework in the context of Aceh. In particular, the framework and field data suggest that the more limited physical and human capital endowments constrained the choices of former combatants since they had to maintain enough liquidity to meet their consumption needs rather than being able to invest in more productive activities. The fifth section will outline various hypotheses that emerge from the analytical framework as well as from the qualitative data and section six will assess the various hypotheses on the statistical evidence from the ARLS data. Thus, section six will provide a broad assessment of the observable implications of the analytical framework developed in sections three and four. In particular, ex-combatants with fewer assets and a lack of access to capital were more likely to have lower incomes and to engage in quickly maturing, but lower return, economic activities. The paper will conclude with an examination of the implications of the findings for reintegration and development policy in Aceh as well as for other post-war contexts elsewhere.