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Aid, Policy, and Growth in Post-Conflict Societies

Countries emerging from civil war attract both aid and policy advice. This paper provides the first systematic empirical analysis of aid and policy reform in the post-conflict growth process. It is based on a comprehensive data set of large civil wars and covers 27 countries that were in their first decade of post-conflict economic recovery during the 1990s. The authors first investigate whether the absorptive capacity for aid is systematically different in post-conflict countries. They find that during the first three post-conflict years, absorptive capacity is no greater than normal, but that in the rest of the first decade it is approximately double its normal level. So ideally, aid should phase in during the decade. Historically, aid has not, on average, been higher in post-conflict societies, and it has tended to taper out over the course of the decade. The authors then investigate whether the contribution of policy to growth is systematically different in post-conflict countries, and in particular, whether particular components of policy are differentially important. For this they use the World Bank policy rating database. The authors find that growth is more sensitive to policy in post-conflict societies. Comparing the efficacy of different policies, they find that social policies are differentially important relative to macroeconomic policies. However, historically, this does not appear to have been how policy reform has been prioritized in post-conflict societies.

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Aid, Shocks, and Growth

This paper incorporates export price shocks into the analysis of the effect of aid on growth. Previous analysis of the aid-growth relationship by Burnside and Dollar found that aid is more effective in raising growth the better are policies. However, this result has been criticized for being sensitive to choice of sample and for neglecting shocks. We construct export price indices using the approach pioneered by Deaton and Miller. We locate shocks by differencing the indices, removing predictable elements from the stationary process, and normalizing the residuals. Extreme negative shocks are the bottom 2.5% tail of this distribution. Introducing these extreme shocks into the Burnside Dollar regression, we find that they are highly significant: unsurprisingly, extreme negative shocks reduce growth. Once these shocks are included the Burnside and Dollar results become robust to choice of sample. Further, the adverse effects of negative shocks on growth can be mitigated by offsetting increases in aid. Indeed, targeting aid towards countries experiencing negative shocks appears to be even more important for enhancing aid effectiveness than targeting aid to countries with good policies. However, we show that to date donors have not in aggregate used aid for this purpose.

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Beyond Kantian Liberalism: Peace through Globalization?

Although globalization has become one of the most salient issues in the study of international relations during the past few decades, its net effect on international conflict remains unexplored. I argue that although the manifold phenomena of globalization may conflict (i.e. produce both positive and negative influences), its overall consequences help foster a common peaceful disposition among national leaders who are then less likely to resort to arms in times of crisis. Based on a cross-sectional, time-series dyadic data analysis for 114 countries during the period from 1970 to 2001, this study reports that socio-economic and political globalization in its entirety generates a dampening effect on militarized interstate disputes. Even when common conflict-related control variables such as democracy, economic interdependence, joint membership in international organizations, and others are incorporated into the analysis, globalization emerges as the most powerful explanatory variable. Consequently, globalization when taken in its entirety represents an unambiguous force for interstate peace.

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Understanding Civil War : Evidence and Analysis, Volume 1. Africa

The two volumes of Understanding Civil War build upon the World Bank’s prior research on conflict and violence, particularly on the work of Paul Collier and Anke Hoeffler, whose model of civil war onset has sparked much discussion on the relationship between conflict and development in what came to be known as the “greed” versus “grievance” debate. The authors systematically apply the Collier-Hoeffler model to 15 countries in 6 different regions of the world, using a comparative case study methodology to revise and expand upon economic models of civil war. (The countries selected are Burundi, Congo, Democratic Republic of Congo, Nigeria, Kenya, Mozambique, Sudan, Algeria, Mali, Senegal, Indonesia, Lebanon, Russian Federation, Colombia, Northern Ireland, Bosnia-Herzegovina, Macedonia, and the Caucasus.) The book concludes that the “greed” versus “grievance” debate should be abandoned for a more complex model that considers greed and grievance as inextricably fused motives for civil war.

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Understanding Civil War : Evidence and Analysis, Volume 2. Europe, Central Asia, and Other Regions

The two volumes of Understanding Civil War build upon the World Bank’s prior research on conflict and violence, particularly on the work of Paul Collier and Anke Hoeffler, whose model of civil war onset has sparked much discussion on the relationship between conflict and development in what came to be known as the “greed” versus “grievance” debate. The authors systematically apply the Collier-Hoeffler model to 15 countries in 6 different regions of the world, using a comparative case study methodology to revise and expand upon economic models of civil war. (The countries selected are Burundi, Congo, Democratic Republic of Congo, Nigeria, Kenya, Mozambique, Sudan, Algeria, Mali, Senegal, Indonesia, Lebanon, Russian Federation, Colombia, Northern Ireland, Bosnia-Herzegovina, Macedonia, and the Caucasus.) The book concludes that the “greed” versus “grievance” debate should be abandoned for a more complex model that considers greed and grievance as inextricably fused motives for civil war.

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The conventional wisdom in political science is that for a democracy to be consolidated, all groups must have a chance to attain power. If they do not then they will subvert democracy and choose to fight for power. In this paper we show that this wisdom is seriously incomplete because it considers absolute, not relative payoffs. Although the probability of winning an election increases with the size of a group, so does the probability of winning a fight. Thus in a situation where all groups have a high chance of winning an election, they may also have a high chance of winning a fight. Indeed, in a natural model, we show that democracy may never be consolidated in such a situation. Rather, democracy may only be stable when one group is dominant. We provide a test of a key aspect of our model using data from “La Violencia”, a political conflict in Colombia during the years 1946-1950 between the Liberal and Conservative parties. Consistent with our results, and contrary to the conventional wisdom, we show that fighting between the parties was more intense in municipalities where the support of the parties was more evenly balanced.

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Sharing the Wealth: A Pathway to Peace or a Trail to Nowhere?

This article critically examines the notion that wealth sharing in the aftermath of internal armed conflicts can bring about long-lasting peace. While wealth sharing is increasingly considered a crucial element of peacebuilding, the evidence concerning its success is inconclusive. Previous studies unfortunately suffer from weak theoretical and empirical definitions of wealth sharing and from examining only a subset of postconflict societies. This article improves the research by disaggregating the concept of wealth sharing to concrete policy relevant natural resource management tools and by introducing new and better data on wealth sharing and including more postconflict peace periods than previous studies. This article examines the relationships between armed conflict, wealth sharing and peace by studying two independent but interlinked research questions: In which postconflict societies is wealth sharing most likely to be adopted? And can wealth sharing bring stable peace in postconflict societies? The analyses show that wealth sharing is more likely to be implemented after natural resource conflicts. Nonetheless, the article does not find that wealth sharing is successful in bringing postconflict peace after these conflicts. Reasons for this can be that (1) other factors than wealth sharing explain the outcome better, and (2) the wealth sharing policies are poorly designed and implemented. The article concludes that wealth sharing can only be a suitable path for societies recovering from armed conflict if such policies are carefully designed to fit the specific context and take into account the challenges that will arrive.

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This article introduces a new dataset on post-conflict justice (PCJ) that provides an overview of if, where, and how post-conflict countries address the wrongdoings committed in association with previous armed conflict. Motivated by the literature on post-conflict peacebuilding, we study justice processes during post-conflict transitions. We examine: which countries choose to implement PCJ; where PCJ is implemented; and which measures are taken in post-conflict societies to address past abuse. Featuring justice and accountability processes, our dataset focuses solely on possible options to address wrongdoings that are implemented following and relating to a given armed conflict. These data allow scholars to address hypotheses regarding justice following war and the effect that these institutions have on transitions to peace. This new dataset includes all extrasystemic, internationalized internal, and internal armed conflicts from 1946 to 2006, with at least 25 annual battle-related deaths as coded by the UCDP/PRIO Armed Conflict Dataset. The post-conflict justice (PCJ) efforts included are: trials, truth commissions, reparations, amnesties, purges, and exiles. By building upon the UCDP/PRIO Armed Conflict Dataset, scholars interested in PCJ can include variables regarding the nature of the conflict itself to test how PCJ arrangements work in different environments in order to better address the relationships between justice, truth, and peace in the post-conflict period.

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Do Working Men Rebel? Insurgency and Unemployment in Afghanistan, Iraq, and the Philippines

Most aid spending by governments seeking to rebuild social and political order is based on an opportunity-cost theory of distracting potential recruits. The logic is that gainfully employed young men are less likely to participate in political violence, implying a positive correlation between unemployment and violence in locations with active insurgencies. The authors test that prediction in Afghanistan, Iraq, and the Philippines, using survey data on unemployment and two newly available measures of insurgency: (1) attacks against government and allied forces and (2) violence that kill civilians. Contrary to the opportunity-cost theory, the data emphatically reject a positive correlation between unemployment and attacks against government and allied forces (p < .05 percent). There is no significant relationship between unemployment and the rate of insurgent attacks that kill civilians. The authors identify several potential explanations, introducing the notion of insurgent precision to adjudicate between the possibilities that predation on one hand, and security measures and information costs on the other, account for the negative correlation between unemployment and violence in these three conflicts.

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Winning Hearts and Minds through Development: Evidence from a Field Experiment in Afghanistan

In countries affected by insurgencies, development programs may potentially reduce violence by improving economic outcomes and increasing popular support for the government. In this paper, we test the efficacy of this approach through a large-scale randomized controlled trial of the largest development program in Afghanistan at the height of the Taliban insurgency. We find that the program generally improved economic outcomes, increased support for the government, and reduced insurgent violence. However, in areas close to the Pakistani border, the program did not increase support for the government and actually increased insurgent violence. This heterogeneity in treatment effects appears to be due to differences between districts in the degree of infiltration by external insurgents, who are not reliant on the local population for support. The results suggest that while development programs can quell locally-based insurgencies, such programs may be counterproductive when implemented in areas where insurgents are not embedded in the local population.

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Origins and Persistence of State-Sponsored Militias: Path Dependent Processes in Third World Military Development

This article uses a sequential mixed method approach to examine the origins and persistence of paramilitaries and state-sponsored militias in the developing world. Combining comparative case studies of Southeast Asia and the Middle East with statistical analysis, it shows that revolutionary decolonization produces more decentralized and localized force structures, while direct inheritance of colonial armies leads to more conventional force structures. Subsequently, the level of competition within the regional system influences whether a state can persist in the use of paramilitaries or must transition to a more centralized, conventional force.

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The Demand for Reparations: Grievance, Risk, and the Pursuit of Justice in Civil War Settlement

In analyzing peace processes in postconflict societies, scholars have primarily focused on the impact of prosecutions, truth-telling efforts, and reconciliation strategies, while overlooking the importance of individual demands for reparations. The authors argue that normative explanations of why reparations are granted in the aftermath of regime change are useful in understanding a need for reconciliation, but inadequate for explaining victim demands for compensation. The authors extend this research to study civil war settlement. In the aftermath of civil war, when some form of reparation is offered giving individuals the opportunity to seek redress of grievances, what types of loss and political and socioeconomic characteristics are likely to lead some individuals to apply for reparations but not others? Using primary data, collected through a public opinion survey in Nepal, the authors investigate individual-level demand for reparations. The findings suggest that understanding loss and risk factors may be important to civil war settlement and reconciliation.

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All Conflict is Local: Modeling Sub-National Variation in Civil Conflict Risk

Most quantitative assessments of civil conflict draw on annual country-level data to determine a baseline hazard of conflict onset. The first problem with such analyses is that they ignore factors associated with the precipitation of violence, such as elections and natural disasters and other trigger mechanisms. Given that baseline hazards are relatively static, most of the temporal variation in risk is associated with such precipitating factors. The second problem with most quantitative analyses of conflict is that they assume that civil conflicts are distributed uniformly throughout the country. This is rarely the case; most intrastate armed conflicts take place in the periphery of the country, well away from the capital and often along international borders. Analysts fail to disaggregate temporally as well as spatially. While other contributions to this issue focus on the temporal aspect of conflict, this article addresses the second issue: the spatial resolution of analysis. To adequately assess the baseline risk of armed conflict, this article develops a unified prediction model that combines a quantitative assessment of conflict risk at the country level with country-specific sub-national analyses at first-order administrative regions. Geo-referenced data on aspects of social, economic, and political exclusion, as well as endemic poverty and physical geography, are featured as the principal local indicators of latent conflict. Using Asia as a test case, this article demonstrates the unique contribution of applying a localized approach to conflict prediction that explicitly captures sub-national variation in civil conflict risk.

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Does Peacekeeping Keep Peace? International Intervention and the Duration of Peace After Civil War

This article examines international interventions in the aftermath of civil wars to see whether peace lasts longer when peacekeepers are present than when they are absent. Because peacekeeping is not applied to cases at random, I first address the question of where international personnel tend to be deployed. I then attempt to control for factors that might affect both the likelihood of peacekeepers being sent and the ease or difficulty of maintaining peace so as to avoid spurious findings. I find, in a nutshell, that peacekeeping after civil wars does indeed make an important contribution to the stability of peace.

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Choosing to Target: What Types of Countries Get Different Types of World Bank Projects

Well-governed countries are more likely to make use of foreign aid for the purposes of economic development and poverty alleviation. Therefore, if aid agencies are providing funds for the sake of development, these countries should receive more aid and categorically different types of aid as compared with poorly governed countries. In poorly governed countries aid should be given in forms that allow for less discretion. Using an original data set of all World Bank projects from 1996 to 2002, the author distinguishes programmatic projects from investment projects and national from subnational investment projects. If the World Bank allows more discretion in well-governed countries, then it will choose to provide programmatic and national aid for these recipients. The author presents evidence that the World Bank provides a larger proportion of national investment lending in better-governed countries. With regard to programmatic lending, he finds mixed evidence. Among counties eligible for International Development Association (IDA) aid, good governance surprisingly is associated with a lower proportion of programmatic aid, whereas for International Bank for Reconstruction and Development (IBRD) borrowers, good governance is associated with a higher proportion. The author subjects these results to a number of robustness checks. Although he confirms the existing result in the literature that the World Bank provides larger overall amounts of aid to better-governed countries, his examination of the disaggregated data leads to questioning whether both lending wings of the World Bank are designing aid programs in the most prodevelopment way possible.

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The International Military Intervention Dataset: An Updated Resource for Conflict Scholars

As major wars have become uncommon over recent decades and the efficacy of economic sanctions is questioned, foreign military intervention seems to have become increasingly prevalent on the international scene. Military intervention has also gained a degree of moral legitimacy, as it is now often launched for humanitarian ends rather than simply to further the intervener’s strategic or material interests. Despite the apparent increase in the use of foreign military intervention as a policy tool in recent years, the quantitative international conflict literature continues to operate without either a comprehensive or a current inventory of foreign military interventions. The authors attempt to fill this gap by updating Pearson & Baumann’s International Military Intervention (IMI) dataset from 1989 to 2005. IMI has a number of attributes that should make it attractive to quantitative international conflict scholars. One is that it is one of a small handful of interstate conflict datasets that attempts to discern the motives behind state uses of force. Also, its substantive coverage is broad, allowing researchers to separate out and focus on the forms of intervention (supportive, hostile, humanitarian, territorial, etc.) that are relevant to their research. As a preliminary validity test of the updated data, the authors analyze patterns of Cold War and post-Cold War military intervention in the IMI collection to see if they correspond with conventional wisdom on real world events.

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How and When Armed Conflicts End: Introducing the UCDP Conflict Termination Dataset

This article presents new data on the start and end dates and the means of termination for armed conflicts, 1946-2005. These data contribute to quantitative research on conflict resolution and recurrence in three important respects: the data cover both interstate and intrastate armed conflicts, the data cover low-intensity conflicts, and the data provide information on a broad range of termination outcomes. In order to disaggregate the UCDP-PRIO Armed Conflict dataset into multiple analytical units, this dataset introduces the concept of conflict episodes, defined as years of continuous use of armed force in a conflict. Using these data, general trends and patterns are presented, showing that conflicts do not exclusively end with decisive outcomes such as victory or peace agreement but more often under unclear circumstances where fighting simply ceases. This pattern is consistent across different types of conflict, as is the finding that victories are more common in conflicts with short duration. The article then examines some factors that have been found to predict civil war recurrence and explores whether using the new dataset produces similar results. This exercise offers a number of interesting new insights and finds that the determinants for civil war recurrence identified in previous research are sensitive to alternate formulations of conflict termination data. The findings suggest that intrastate conflicts are less likely to recur after government victories or after the deployment of peacekeepers. If the previous conflict is fought with rebels aiming for total control over government or if the belligerents mobilized along ethnic lines, the risk of recurrence increases. The discrepancy in findings with previous research indicates the need for further study of conflict resolution and recurrence, for which this dataset will be useful.

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Inequality and Democracy: Why Inequality Harms Consolidation but Does Not Affect Democratization

Under what conditions do democracies emerge and consolidate? Recent theories suggest that inequality is among the leading determinants of both democratization and consolidation. By contrast, this article argues that inequality harms consolidation but has no net effect on democratization. The author shows that the existing theories that link inequality to democratization suffer from serious limitations: (1) they are useful only for understanding transitions from below and thus do not apply to many other transitions (that is, those from above); (2) even for democratization from below, their predictions are unlikely to hold, since inequality actually has two opposite effects; and (3) they ignore collective action problems, which reduces their explanatory power. However, these objections do not affect the relationship between inequality and consolidation. In particular, while inequality has two opposite effects on the probability of transition to democracy, it unambiguously increases the probability of transition away from democracy. This article conducts the most comprehensive empirical test to date of the relationship between inequality and democracy. It finds no support for the main democratization theories. Contrary to what they predict, estimation suggests neither a monotonic negative nor an inverted U-shaped relationship. Yet inequality increases the probability of backsliding from democracy to dictatorship.

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Overcoming Psychological Barriers to Peaceful Conflict Resolution

One of the most important psychological barriers to conflict resolution is the rigid structure of the sociopsychological repertoire that evolves in societies immersed in intractable conflict. This article examines ways to overcome the rigidity of this repertoire in the context of the Israeli-Palestinian conflict. Specifically, in line with the prospect theory, the authors assumed that elicitation of beliefs about losses stemming from the continuing conflict may bring about a process of unfreezing. To test this assumption, an exploratory study with a national sample of the Israeli-Jewish population and two subsequent experimental studies were conducted. The results demonstrated that exposure to information about losses inherent in continuing the conflict induces higher willingness to acquire new information about possible solutions to the conflict, higher willingness to reevaluate current positions about it, and more support for compromises than the exposure to neutral information or to information about possible gains derived from the peace agreement.

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Demands for UN and Non-UN Peacekeeping

This article presents alternative estimates for the demand for UN and non-UN peacekeeping. Generally, three-way fixed-effects models, which account for the country, year, and conflict region, provide the best estimates. The demand for UN peacekeeping is primarily influenced by the contributions of other nations (i.e., spillins), with spillin elasticity not significantly different from 1. For non-UN peacekeeping, both spillins and country-specific interests in the conflict region influence contributions. These peacekeepers’ interests include trade and FDI concerns, along with proximity to the conflict. Peacekeeping missions appear partitioned: UN missions for global public benefits and non-UN missions for peacekeeper-specific benefits.

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Democracy Under the Gun: Understanding Postconflict Economic Recovery

Increasingly, scholars studying civil conflicts believe that the pace of postconflict economic recovery is crucial to a return to peaceful politics. But why do some countries’ economies recover more quickly than others’? The authors argue that the inability of politicians to commit credibly to postconflict peace inhibits investment and, hence, slows recovery. In turn, the ability of political actors to eschew further violence credibly depends on postconflict political institutions. The authors test this framework with duration analysis of an original data set of economic recovery, with two key results. First, they find that postconflict democratization retards recovery. Second, outright military victory sets the stage for a longer peace than negotiated settlements do. This research deepens the understanding of the bases of economic recovery and conflict recidivism in postconflict countries and points to future research that can augment this knowledge further still.