This article studies economic dimension of peacebuilding, concentrating on postconflict
economic recovery and development (PCERD) in Nepal. The current
peace process in Nepal has a historical opportunity to address economic root
causes of the armed conflict and lay a foundation for inclusive economic development.
However, the economic dimension of peacebuilding has been sidelined by
the contentious transitional politics in the Nepali peace process. Taking a maximalist
approach to development, this article argues that PCERD in Nepal should
be understood as a multiple-faceted long-term process which might incorporate
both short-term and long-term priorities. While the short-term priority should
target at delivering the economic dividends of peace in the immediate aftermath
of the conflict, the long-term priority should be geared towards addressing
the economic root causes of the preceding armed conflict as well as laying the
foundation for an inclusive economic development. It should be accomplished
by taking into account a wider range of the social, economic, political, psychosocial,
and security related needs and aspirations of the conflict-affected people as well
as the wider populace. Making an analysis from a political economy perspective,
this article also discusses potential barriers to PCERD and finds that lack of commitment
by the key political actors to engage in policy debates and discussions
around economic recovery and development and dwindling post-conflict public
security are the barriers to economic recovery and development in post-conflict
Nepal.