Key Economic Tools
This note proposes 29 economic tools, detailing the pros and cons of each, illustrated by successful examples. For each tool it also considers potential means of implementation, sequencing and recommends relevant implementation levels, e.g. village, district, province or state. The rationale for these tools is that in certain cases (we use Afghanistan by way of illustration) aid alone is not the solution for economic development and stabilization as logistical and security challenges, political problems and risk perception combine to deter private sector investment. These tools and incentives seek to address this constraint by improving the fundamental risk/reward ratio.