Economic Development LLO

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Economic Development LLO
Activities:	Mobilize/develop local economic activity (manufacturing, services, agriculture); initiate contracts with local businesses to stimulate trade; rebuild commercial infrastructure (banks, transportation, markets, currency); support broad-based economic opportunity (micro to macro development); support a free market economy.
End State:	Functional economy reestablished and freedom to conduct lawful commerce restored.

One of several LLOs, the economic development LLO includes both short- and long-term aspects. The short-term aspect concerns immediate problems, such as large-scale unemployment and reestablishing an economy at all levels. The long-term aspect involves stimulating indigenous, robust, and broad economic activity. The stability a nation enjoys is often related to its people’s economic situation and its adherence to the rule of law. However, a nation’s economic health also depends on its government’s ability to continuously secure its population.

Planning economic development requires understanding the society, culture, and operational environment. For example, in a rural society, land ownership and the availability of agricultural equipment, seed, and fertilizer may be the chief parts of any economic development plan. In an urban, diversified society, the availability of jobs and the infrastructure to support commercial activities may be more important. Without a viable economy and employment opportunities, the public is likely to pursue false promises offered by insurgents. Sometimes insurgents foster the conditions keeping the economy stagnant.

Insurgencies attempt to exploit a lack of employment or job opportunities to gain active and passive support for their cause and ultimately undermine the government’s legitimacy. Unemployed males of military age may join the insurgency to provide for their families. Hiring these people for public works projects or a local civil defense corps can remove the economic incentive to join the insurgency. The major categories of economic activity include the following:

• Fossil fuels, mining, and related refining infrastructure.
• Generation and transmission of power and energy.
• Transportation and movement networks.
• Stock and commodities exchange.
• Banking.
• Manufacturing and warehousing.
• Building trades and services.
• Agriculture, food processing, fisheries, and stockyard processing.
• Labor relations.
• Education and training.

Considerations for the economic development LLO

• Work with the host-nation government to strengthen the economy and quality of life. In the long run, success depends on supporting people's livelihoods.
• Create an environment where business can thrive. In every state (except perhaps a completely socialist one), business drives the economy. To strengthen the economy, find ways to encourage and support legitimate business activities. Even providing security is part of a positive business environment.
• Work with the host-nation government to reduce unemployment to a manageable level.
• Seek to understand the effects of military operations on business activities and vice versa. Understand the effects of outsourcing and military support on the local economy and employment level.
• Use economic leverage to enter new areas and reach new people. Remember that in many societies, monies are distributed through tribal or clan networks. For instance giving a clan leader a contracting job may lead to employing many local men. Those employees are less likely to join the insurgency. It many be necessary to pay more than seems fair for a job; however, the money is well spent if it keeps people from supporting the insurgency.
• Ensure that noncompliance with government policies has an economic price. Likewise, show that compliance with those policies is profitable. In the broadest sense, counterinsurgency operations should reflect that "peace pays."
• Program funds for commanders to use for economic projects in their area of operations from the beginning of any operation. No one appreciates the situation better than those "on the ground." Creating these funds may require congressional action.
• There are several important logistic considerations for this LLO.

There are also several indicators that can be used to help measure progress for this LLO in the quantitative knowledge portal.

See related information on Support to Economic and Infrastructure Development from the Stability Operations Field Manual 3-07.

Source: Counterinsurgency Field Manual 3-24