In the aftermath of violent conflict, governments have an opportunity to address fundamental inequalities between internal groups. As taxation and expenditure policies are developed to rebuild a functional domestic economy and infrastructure, policies can be designed to lessen divisions and promote equity.

The authors assert that good data about the status quo on inequality in a country is the first step to addressing it through policy. They then discuss some options for formulating a tax code that addresses distributional issues and increases progressivity. Expenditure planning can also be designed to help create equity in income and non-income resources, such as public services, employment, health and education. The role of aid donors is discussed, particularly as a source of successful strategies gleaned from other post-conflict countries.

This study is part of a series on Public Finance in Post-Conflict Environments, published jointly by PERI and New York University's Center on International Cooperation.