Difficulty Creating Jobs in Fragile States

Economist Paul Collier of Oxford University discusses the challenge of creating jobs in fragile states. He says that unemployed young men are often the source of this fragility, but finding jobs for these youth could make these states safer and increase stability.

But, Collier says, fragile states are difficult environments to create jobs because foreign investors are hesitant to set up factories in unstable environments with risks, weak infrastructure, and poor logistics when they could set up that same business in a more stable setting. This quandary is multiplied by "Dutch" disease created by foreign aid and natural resource exports.

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