This study surveys the issues involved in providing development assistance to war-torn economies, and makes a number of policy recommendations. The problem merits attention, because almost 8 million people have died in wars over the past decade, raising the total of war-related deaths in the twentieth century to at least 130 million. In 2001 an estimated 22 million people were either refugees or internally displaced, as a consequence of war. Wars typically set back economic development for a generation. The experience of the past three decades shows that even after they had enjoyed ten years of peace, almost no countries had returned to their pre-war levels of income.