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Modest, Secure, and Informed: Successful Development in Conflict Zones

Author

Listed:
  • Eli Berman
  • Joseph H. Felter
  • Jacob N. Shapiro
  • Erin Troland

Abstract

Most interpretations of prevalent counterinsurgency theory imply that increasing government services reduces rebel violence. Empirically, however, development programs and economic activity sometimes increase violence. Using new panel data on development spending in Iraq, we show that violence-reducing effects of development assistance are greater when: (i) projects are small; (ii) troop strength is high; and (iii) professional development expertise is available. These findings are consistent with an information-centric ("hearts and minds") model, which implies that violence-reduction is greatest when projects are secure, valued by community members, and services derived are conditional on government control of the territory.

Suggested Citation

  • Eli Berman & Joseph H. Felter & Jacob N. Shapiro & Erin Troland, 2013. "Modest, Secure, and Informed: Successful Development in Conflict Zones," American Economic Review, American Economic Association, vol. 103(3), pages 512-517, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:512-17
    DOI: 10.1257/aer.103.3.512
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    as
    1. Eli Berman & Joseph H. Felter & Jacob N. Shapiro & Erin Troland, 2013. "Modest, Secure, and Informed: Successful Development in Conflict Zones," American Economic Review, American Economic Association, vol. 103(3), pages 512-517, May.
    2. World Bank, 2011. "World Development Report 2011 [Rapport sur le développement dans le monde 2011 : Conflits, sécurité et développement - Abrégé]," World Bank Publications - Books, The World Bank Group, number 4389, October.
    3. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 251-262, Springer.
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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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