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Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq

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Author Info
Eli Berman
Jacob N. Shapiro
Joseph H. Felter

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Abstract

Rebuilding social and economic order in conflict and post-conflict areas will be critical for the United States and allied governments for the foreseeable future. Little empirical research has evaluated where, when, and how improving material conditions in conflict zones enhances social and economic order. We address this lacuna, developing and testing a theory of insurgency. Following the informal literature and US military doctrine, we model insurgency as a three-way contest between rebels seeking political change through violence, a government seeking to minimize violence through some combination of service provision and hard counterinsurgency, and civilians deciding whether to share information about insurgents with government forces. We test the model using new data from the Iraq war. We combine a geo-spatial indicator of violence against Coalition and Iraqi forces (SIGACTs), reconstruction spending, and community characteristics including measures of social cohesion, sectarian status, socio-economic grievances, and natural resource endowments. Our results support the theory's predictions: counterinsurgents are most generous with government services in locations where they expect violence; improved service provision has reduced insurgent violence since the summer of 2007; and the violence-reducing effect of service provision varies predictably across communities.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14606.

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Date of creation: Dec 2008
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Handle: RePEc:nbr:nberwo:14606

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Find related papers by JEL classification:
F51 - International Economics - - International Relations and International Political Economy - - - International Conflicts; Negotiations; Sanctions
F52 - International Economics - - International Relations and International Political Economy - - - National Security; Economic Nationalism
H4 - Public Economics - - Publicly Provided Goods
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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References listed on IDEAS
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.:
  1. Powell, Robert, 2006. "War as a Commitment Problem," International Organization, Cambridge University Press, vol. 60(01), pages 169-203, January. [Downloadable!]
  2. Ross, Michael L., 2004. "How Do Natural Resources Influence Civil War? Evidence from Thirteen Cases," International Organization, Cambridge University Press, vol. 58(01), pages 35-67, February. [Downloadable!]
  3. Berman, Eli & Laitin, David D., 2008. "Religion, terrorism and public goods: Testing the club model," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 1942-1967, October. [Downloadable!] (restricted)
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  4. Paul Collier & Anke Hoeffler, 2004. "Greed and Grievance in Civil War," Development and Comp Systems 0409007, EconWPA. [Downloadable!]
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