The war in August 2008 caused substantial damage to infrastructure, as well as an inflow of several thousand internally displaced persons (IDPs) from the conflict areas. Public funds, supplemented by a large amount of foreign aid, are being used to provide humanitarian assistance to IDPs, and to rebuild military and civilian infrastructure. As the effects of the global economic recession fade in 2011-12, economic policy will again focus on efforts to reform the legislative, financial, energy and healthcare sectors. However, these efforts will be tempered by the need to make the reforms more palatable to the population, in order to avoid a repeat of the domestic turmoil seen in late 2007. Slower budget revenue growth over the forecast period compared with 2004-08 is likely to weigh on the reform process, as will concern about the potential for political tensions, which could damage investor sentiment towards the country.