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Redistribution, Inequality and Political Conflict

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  • Patricia Justino

    ()
    (Poverty Research Unit at Sussex)

Abstract

This paper analyses the relationship between redistributive policies and civil unrest. This relationship is modelled in a discrete two-period recursive model. Key theoretical assumptions and outcomes are tested empirically using data for a panel of 14 major Indian states between 1973 and 2000. The analysis shows that, in the medium-term, redistributive policies have been significantly more effective in reducing civil unrest in India than more direct solutions, such as the use of police and military forces, and have resulted in important positive externalities on economic growth. This represents an important lesson for countries where social cohesion tends to break frequently but large-scale wars may be avoidable.

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Bibliographic Info

Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 05.

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Length: 50 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:hic:wpaper:05

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Web page: http://www.hicn.org

Related research

Keywords: redistribution; conflict; inequality; economic growth; India; panel data;

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References

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  1. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
  2. Bénabou, Roland, 1996. "Inequality and Growth," CEPR Discussion Papers 1450, C.E.P.R. Discussion Papers.
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  6. Patricia Justino & Julie Litchfield, 2003. "Poverty Dynamics in Rural Vietnam: Winners and Losers During Reform," PRUS Working Papers 10, Poverty Research Unit at Sussex, University of Sussex.
  7. Christopher Cramer, 2003. "Does inequality cause conflict?," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 397-412.
  8. Xavier Sala-i-Martin, 1995. "Transfers, social safety nets and economic growth," Economics Working Papers 139, Department of Economics and Business, Universitat Pompeu Fabra.
  9. Torsten Persson & Guido Tabellini, 1991. "Is Inequality Harmful for Growth? Theory and Evidence," NBER Working Papers 3599, National Bureau of Economic Research, Inc.
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  11. Olson, Mancur, 1963. "Rapid Growth as a Destabilizing Force," The Journal of Economic History, Cambridge University Press, vol. 23(04), pages 529-552, December.
  12. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
  13. Foley, Duncan K., 1978. "State expenditure from a Marxist perspective," Journal of Public Economics, Elsevier, vol. 9(2), pages 221-238, April.
  14. Hirschman,Albert O., 1981. "Essays in Trespassing," Cambridge Books, Cambridge University Press, number 9780521282437, October.
  15. Keefer, Philip & Knack, Stephen, 2002. " Polarization, Politics and Property Rights: Links between Inequality and Growth," Public Choice, Springer, vol. 111(1-2), pages 127-54, March.
  16. Perotti, Roberto & Alesina, Alberto, 1996. "Income Distribution, Political Instability, and Investment," Scholarly Articles 4553018, Harvard University Department of Economics.
  17. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
  18. Betancourt, Roger & Gleason, Suzanne, 2000. "The Allocation of Publicly-Provided Goods to Rural Households in India: On Some Consequences of Caste, Religion and Democracy," World Development, Elsevier, vol. 28(12), pages 2169-2182, December.
  19. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  20. repec:fth:coluec:636 is not listed on IDEAS
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Citations

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Cited by:
  1. Vadlamannati, Krishna Chaitanya, 2008. "Socioeconomic, Institutional & Political Determinants Of Human Rights Abuses: A Subnational Study Of India, 1993 – 2002," MPRA Paper 10142, University Library of Munich, Germany.
  2. Patricia Justino, 2006. "On the Links between Violent Conflict and Chronic Poverty: How Much Do We Really Know?," HiCN Working Papers 18, Households in Conflict Network.
  3. Dominic Rohner, 2008. "Reputation, Group Structure and Social Tensions," HiCN Working Papers 40, Households in Conflict Network.
  4. Patricia Justino, 2009. "The Impact of Armed Civil Conflict on Household Welfare and Policy Responses," Research Working Papers 12, MICROCON - A Micro Level Analysis of Violent Conflict.
  5. Dominic Rohner, 2010. "From rags to rifles: deprivation, conflict and the welfare state," IEW - Working Papers 463, Institute for Empirical Research in Economics - University of Zurich.
  6. Rohner, D., 2007. "From Rags to Rifles: The Economics of Deprivation, Conflict and Welfare State," Cambridge Working Papers in Economics 0771, Faculty of Economics, University of Cambridge.

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