State Capacity in Latin America
"State capacity is exceptionally low in Latin America, even when compared to other former colonies. This paper analyzes four possible factors that could potentially explain this troubling feature: political inequality, economic inequality, interstate conflict and civil war. With the exception of external war, these variables have a negative effect on state-building in models where the accumulation of state capacity is analogous to investment under uncertainty. These analytical predictions are then tested with cross-country data, paying special attention to Latin America. Democracy´s impact on state capacity is quite positive, as is the effect of the frequency of external wars when data for the last century is used. However, in the data for the last half century, external wars have little effect, but the negative effects of internal wars and income inequality become highly significant. The model explains why Latin America has failed to develop its state, despite the improvement in the various measures of democracy. In fact, both the theoretical model and the empirical evidence suggest that the effects of democracy are undermined in the presence of high economic inequality."
Volume (Year): Volume 10 Number 2 (2010)
Issue (Month): Spring 2010 (January)
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:col:000425:008591. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roberto Bernal)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.