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The Cost of Failing States and the Limits to Sovereignty

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  • Chauvet, Lisa
  • Collier, Paul
  • Hoeffler, Anke

Abstract

In this paper, we estimate the costs of state failure, both for the failing state itself and for its neighbours. In our analysis, the cost of failure arises from two distinct sources: organized violence due to the incapacity of the state to ensure its own citizens' security and low quality of regulation and public goods due to poor governance. To estimate the cost of failure, we proceed in two steps. First we estimate the annual loss of growth induced by state failure. Then we cumulate this loss over time, taking into account the chances that each year a failing state will exit this status. Our growth estimations suggest that a failing state at peace loses 2.6 percentage points of growth per year, while violence induces a further loss of 1.6 percentage points of growth per year. ...

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2007/rp2007-30.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2007/30.

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Length: 18 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:unu:wpaper:rp2007-30

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Related research

Keywords: responsibility; conflict; poverty;

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Cited by:
  1. José María, Larrú, 2012. "La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica
    [Aid and inequality relationship. Evidence and theoretical justification]
    ," MPRA Paper 38857, University Library of Munich, Germany.
  2. Mthuli Ncube & Basil Jones & Zorobabel Bicaba, 2014. "Working Paper 197 - Estimating the Economic Cost of Fragility in Africa," Working Paper Series 2105, African Development Bank.

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