Community Preferences, Insurgency, and the Success of Reconstruction Spending
AbstractA 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 InfoPaper provided by Department of Economics, University of Victoria in its series Department Discussion Papers with number 1202.
Length: 27 pages
Date of creation: 01 Oct 2012
Date of revision:
Note: ISSN 1914-2838
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development and insurgency; conflict;
Find related papers by JEL classification:
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- N4 - Economic History - - Government, War, Law, International Relations, and Regulation
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- Berman, Eli & Laitin, David D., 2008.
"Religion, terrorism and public goods: Testing the club model,"
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Journal of Political Economy,
University of Chicago Press, vol. 119(4), pages 766 - 819.
- Eli Berman & Jacob N. Shapiro & Joseph H. Felter, 2008. "Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq," NBER Working Papers 14606, National Bureau of Economic Research, Inc.
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