Adjusting to Peace: The Political Economy of Post-War Reconstruction Land, Privatization and Fiscal Reform in Post-War El Salvador and Guatemala

The difficulties of implementing peace agreements can neither be solely explained as a direct effect of the economic reforms, nor can the entire universe of social conflicts in post-war societies be caused by the interaction of economic and peace-related reforms. However, one of the main factors that might help explain the sustainability of peace agreements lies in the question of how to achieve economic growth with socio-economic equity without undermining efforts to reduce the causes of conflict.
Therefore, the purpose of this study is to explore the effects of the relationship between adjusting the economy and implementing the peace on the sustainability of the peace implementation processes in El Salvador and Guatemala.
To illustrate how each country managed the challenge of transitioning from a civil war to an emerging democracy and from a state-centered to a more market-friendly economy, three reforms were chosen as the focus of this study: the land reforms –as stipulated in the peace agreements of El Salvador and Guatemala-; the privatization process in El Salvador and fiscal reform in Guatemala.
The researcher conducted field trips to both countries and gathered 63 interviews as well as relevant documents and reports to document the problems and lessons from the land-related reforms of both countries; the socio-economic and political consequences of the privatization process of post-war El Salvador and the intricate relationship between fiscal reform and the implementation and funding of the Guatemalan peace agreement.
The field of peace and conflict studies needs to further integrate systematic analysis on role of socio economic factors in successful peace implementation processes. This dissertation is a small contribution to such endeavor.