Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform
AbstractThis paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact on its political sustainability. Second, we demonstrate that greater state capacity to make compensatory transfers to those adversely affected by reform, need not always help the political sustainability of reform, but can also hinder it. Finally, we argue that in ethnically divided societies, economic reform may be completed not despite ethnic conflict, but because of it.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1288.
Length: 34 pages
Date of creation: Nov 2011
Date of revision:
Economic reform; State capacity; Politics; Redistribution; Compensation; Ethnic Conflict;
Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-10 (All new papers)
- NEP-CTA-2012-01-10 (Contract Theory & Applications)
- NEP-DGE-2012-01-10 (Dynamic General Equilibrium)
- NEP-URE-2012-01-10 (Urban & Real Estate Economics)
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.:
- Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004.
Working Paper Series
rwp04-030, Harvard University, John F. Kennedy School of Government.
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