1887

UN Department of Economic and Social Affairs (DESA) Working Papers

The UN Department of Economic and Social Affairs (DESA) Working Papers aim to stimulate discussion and critical comment on the broad range of economic, social and environmental issues associated with the United Nations Development Agenda.

English

The Conflict-Growth Nexus and the Poverty of Nations

Lack of growth limits poverty reduction while poverty increases conflict risk. Institutional failure and other factors seem to cause both growth failure and civil war. The greed explanation for conflict is common in cross-country econometric investigation, despite its dubious role in directly causing civil war. The relationship between natural resource revenues and conflict onset works through other mechanisms, such as a weakening social contract and withering state capacity. The grievance explanation for contemporary civil war is supported by detailed case studies where horizontal inequality is important. Economic deconstruction following war should therefore be pro-poor and address horizontal inequalities engendering conflict.

English

Keywords: conflict, institutions, growth
JEL: D72: Microeconomics / Analysis of Collective Decision-Making / Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior; C78: Mathematical and Quantitative Methods / Game Theory and Bargaining Theory / Bargaining Theory; Matching Theory; D74: Microeconomics / Analysis of Collective Decision-Making / Conflict; Conflict Resolution; Alliances; Revolutions; D83: Microeconomics / Information, Knowledge, and Uncertainty / Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
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