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Two ethnic security dilemmas and their economic origin

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  • Khemraj, Tarron

Abstract

The paper outlines two ethnic security dilemmas (ESDs) that permeate Guyanese economic and political life. At the heart of the ESDs are strategic uncertainty of voters and the joy of destruction (envy) of political leaders. Most voters vote pro-ethnically and leaders of one political party find strategies to undermine the other. The prize is the control of government and associated economic opportunities. This view is supported by a survey of Guyanese historical political and economic contests. The dilemmas occur because the interrelated political strategies of the two ethnic-based parties produce a sub-optimal economic outcome for everyone, although a superior economic outcome (equilibrium) exists but cannot be achieved because the dominant parties find it impossible to coordinate and cooperate within the confines of the present constitutional and electoral frameworks. High strategic uncertainty and low inter-group trust fuel the inherent dilemmas among voters and political leaders. Ideas or metaphors from applied game theory are used to define the ESDs more precisely and suggest possible solutions.

Suggested Citation

  • Khemraj, Tarron, 2019. "Two ethnic security dilemmas and their economic origin," MPRA Paper 101263, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101263
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    References listed on IDEAS

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    Cited by:

    1. Pasha, Sukrishnalall, 2020. "The impact of political instability on economic growth: the case of Guyana," MPRA Paper 103145, University Library of Munich, Germany.

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    More about this item

    Keywords

    prisoners’ dilemma; stag hunt; inequality; economic underdevelopment;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Z1 - Other Special Topics - - Cultural Economics

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