Conflict, Ideology and Foreign Aid
AbstractIn this paper, we present a rent-seeking model of conflict, which highlights the role of ideology in determining whether the government or the rebels take the initiative. We use the model to interpret the impact of a large-scale Community-Driven Development project on civil conflict in the Philippines. The country is characterized by the presence of two rebel groups, the New People's Army (NPA) and the Moro Islamic Liberation Front (MILF), with two distinct ideologies. We use a unique geo-referenced panel dataset on the occurrence of conflicts in 2003 and 2006 gathered from local newspapers that we match with nationally representative household survey and budget data on all municipalities in the country. Consistent with our model's predictions, using a variety of estimation strategies, we find robust evidence that the project leads to a decline in MILF-related events and to an increase in NPA-related events.
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Bibliographic InfoPaper provided by CERDI in its series Working Papers with number 201021.
Date of creation: 2010
Date of revision:
Civil Conflict; foreign aid; Rent Seeking; Community-Driven Development; philippines;
Other versions of this item:
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
- F35 - International Economics - - International Finance - - - Foreign Aid
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-31 (All new papers)
- NEP-DEV-2010-07-31 (Development)
- NEP-SOC-2010-07-31 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de Ree, Joppe & Nillesen, Eleonora, 2009.
"Aiding violence or peace? The impact of foreign aid on the risk of civil conflict in sub-Saharan Africa,"
Journal of Development Economics,
Elsevier, vol. 88(2), pages 301-313, March.
- Joppe de Ree & Eleonora Nillesen, 2006. "Aiding Violence or Peace? The Impact of Foreign Aid on the Risk of Civil Conflict in Sub-Saharan Africa," Working Papers 06-09, Utrecht School of Economics.
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