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Community Preferences, Insurgency, and the Success of Reconstruction Spending

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Abstract

A model of reconstruction spending by an occupying force is developed, in which the local population may have different preferences over the allocation of spending than the occupier. When the spending allocation is misaligned with local preferences an insurgency among some members of the community may result. Depending on the effectiveness of the insurgency, local opposition may constrain the ability of the occupier to implement its most preferred spending allocation. In equilibrium, the occupier may tolerate some level of insurgency to approach its ideal, but naive insistence on a most preferred allocation may lead to fewer projects of any kind being completed. The model suggests that winning the hearts and minds of a local population is less a question of how much money is invested in reconstruction than of how that money is allocated across projects of different kinds.

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Bibliographic Info

Paper provided by Department of Economics, University of Victoria in its series Department Discussion Papers with number 1202.

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Length: 27 pages
Date of creation: 01 Oct 2012
Date of revision:
Handle: RePEc:vic:vicddp:1202

Note: ISSN 1914-2838
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Keywords: development and insurgency; conflict;

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  1. 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.
  2. Eli Berman & Jacob N. Shapiro & Joseph H. Felter, 2011. "Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 766 - 819.
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