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Civil War, Public Goods and the Social Wealth of Nations

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  • Kanbur, Ravi
  • Pottebaum, David

Abstract

This Paper establishes and explores the implications of a somewhat surprising empirical finding. Although civil war adversely affects the performance of social indicators in general, poorer countries lose less, in absolute and relative terms, than richer countries. It is argued that the explanation may lie in the extent to which richer countries have better social (and economic) indicators because of more public goods, and adaptation of economic and social mechanisms to the greater abundance of public goods such as physical infrastructure. Civil war destroys public goods, and therefore damages disproportionately the countries most dependent on them. A further implication of this framework is that the post-conflict rebound in social indicators should be relatively stronger in poorer countries. The data bear out this prediction. Our results should not of course be read as implying that poorer countries need less support to avoid civil war and to cope with its aftermath. Although their losses are less, they start from a lower base; so even small declines severely impact human well being. Properly understood, our results highlight the central role that public goods play in underpinning the social (and economic) wealth of nations

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3124.

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Date of creation: Jan 2002
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Handle: RePEc:cpr:ceprdp:3124

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Keywords: civil war; post-conflict; public goods; social indicators;

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  1. Frances Stewart & Frank Humphreys & Nick Lea, 1997. "Civil conflict in developing countries over the last quarter of a century: An empirical overview of economic and social consequences," Oxford Development Studies, Taylor & Francis Journals, vol. 25(1), pages 11-41.
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Cited by:
  1. Kanbur, Ravi & Pottebaum, David, 2002. "A note on public goods dependency," Economics Letters, Elsevier, vol. 77(2), pages 233-237, October.
  2. Timothy J. Hatton & Jeffrey G. Williamson, 2004. "Refugees, Asylum Seekers and Policy in Europe," NBER Working Papers 10680, National Bureau of Economic Research, Inc.

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