Plunder & Protection Inc
AbstractWhen the state fails to supply basic security and protection of property, violent entrepreneurs not only seize the opportunity of plundering, but some also enter the protection business and provide protection against plunderers. This uncoordinated division of labor is advantageous for the entire group of violent entrepreneurs. Hence, in weak states a situation may arise where a large number of violent entrepreneurs can operate side by side as plunderers and protectors squeezing the producers from both sides. The problem reached new levels at the end of the cold war. As military forces were demobilized without civilian jobs to go to, many countries got an oversupply of qualified violent people for crime, warfare and private protection. In this 'market for extortion' the entry of new violent entrepreneurs enhances the profitability of them all. The supply of violence creates its own demand; an externality of violence that is detrimental to the development in poor countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0210002.
Length: 16 pages
Date of creation: 08 Oct 2002
Date of revision:
Note: Type of Document - pdf; prepared on latex; pages: 16
Contact details of provider:
Web page: http://18.104.22.168
crime; protection; extortion;
Other versions of this item:
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.:
- Paul Collier, 1994. "Demobilization and insecurity: A study in the economics of the transition from war to peace," Journal of International Development, John Wiley & Sons, Ltd., vol. 6(3), pages 343-351, 05.
- Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2003.
"Predator or prey?: Parasitic enterprises in economic development,"
European Economic Review,
Elsevier, vol. 47(2), pages 275-294, April.
- Mehlum,H. & Moene,K. & Torvik,R., 2000. "Predator or prey? : parasitic enterprises in economic development," Memorandum 27/2000, Oslo University, Department of Economics.
- Skaperdas, Stergios, 2001.
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Herschel I. Grossman, 2001.
"The Creation of Effective Property Rights,"
American Economic Review,
American Economic Association, vol. 91(2), pages 347-352, May.
- Lane, Frederic C., 1958. "Economic Consequences of Organized Violence," The Journal of Economic History, Cambridge University Press, vol. 18(04), pages 401-417, December.
- Azam. Jean-Paul & Bevan, David & Collier, Paul & Dercon, Stefan & Gunning, Jan & Pradhan, Sanjay, 1995. "Some economic consequences of the transition from civil war to peace," Policy Research Working Paper Series 1392, The World Bank.
- Kai A.Konrad & Stergios Skaperdas, 1997. "Backing up Words with Deeds: Information and punishment in organized crime," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 24, pages 51-63.
- Mehlum, Halvor & Moene, Karl O. & Torvik, Ragnar, 2003.
16/2003, Oslo University, Department of Economics.
- Giacomo De Luca & Jean-Fran�ois Maystadt & Petros G. Sekeris & John Ulimwengu, 2012. "Mineral Resources and Conflicts in DRC: A Case of Ecological Fallacy," Working Papers 1207, University of Namur, Department of Economics.
- Milante, Gary, 2007. "A kleptocrat's survival guide : autocratic longevity in the face of civil conflict," Policy Research Working Paper Series 4186, The World Bank.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006.
"Cursed by Resources or Institutions?,"
The World Economy,
Wiley Blackwell, vol. 29(8), pages 1117-1131, 08.
- Murshed, S. Mansoob, 2004. "When Does Natural Resource Abundance Lead to a Resource Curse?," Discussion Papers 24137, International Institute for Environment and Development, Environmental Economics Programme.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.