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The problem of credible commitment in reconstruction

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  • COYNE, CHRISTOPHER J.
  • BOETTKE, PETER J.

Abstract

Reconstruction involves military occupation with the aim of rebuilding and reforming both formal and informal institutions along liberal democratic lines. We contend that successful reconstructions require mechanisms that make reforms credible over the long run. In the absence of a signal of sustained credible commitment, institutional reforms will not be trusted by the populace resulting in the failure of the broader reconstruction. The incentive and epistemic aspects of the credible commitment problem are analyzed. We also consider potential solutions to the problem of credible commitment. Absent such solutions, attempts to ‘export’ institutions via military occupation will fail or produce dysfunctional outcomes. An analysis of the numerous aspects of the credibility problem in the current reconstruction of Iraq is provided to illuminate the central arguments.

Suggested Citation

  • Coyne, Christopher J. & Boettke, Peter J., 2009. "The problem of credible commitment in reconstruction," Journal of Institutional Economics, Cambridge University Press, vol. 5(1), pages 1-23, April.
    • Handle: RePEc:cup:jinsec:v:5:y:2009:i:01:p:1-23_00
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    Cited by:

    1. Peter Boettke & Alexander Fink, 2011. "Agent Type, Social Contracts, and Constitutional Mythologies," Studies in Public Choice, in: Alain Marciano (ed.), Constitutional Mythologies, chapter 0, pages 25-37, Springer.
    2. Coyne,Christopher J., 2020. "Defense, Peace, and War Economics," Cambridge Books, Cambridge University Press, number 9781108724036.
    3. Murtazashvili, Ilia & Murtazashvili, Jennifer, 2016. "The origins of private property rights: states or customary organizations?," Journal of Institutional Economics, Cambridge University Press, vol. 12(1), pages 105-128, March.
    4. Christopher J. Coyne, 2017. "The law and economics of rule reform," Chapters, in: Todd J. Zywicki & Peter J. Boettke (ed.), Research Handbook on Austrian Law and Economics, chapter 5, pages 92-108, Edward Elgar Publishing.
    5. Thomas Edward Flores & Irfan Nooruddin, 2011. "Credible Commitment in Post-Conflict Recovery," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 23, Edward Elgar Publishing.
    6. Alexander Fink, 2015. "Governance without a state? Policies and politics in areas of limited statehood meets positive political economy of anarchy: A review essay," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(1), pages 93-105, March.
    7. Ilia Murtazashvili & Jennifer Murtazashvili, 2015. "Anarchy, self-governance, and legal titling," Public Choice, Springer, vol. 162(3), pages 287-305, March.
    8. Leonid Krasnozhon & Mykola Bunyk, 2019. "Liberalism and great upheaval: What did classical liberals do in the Tsarist Russia?," Constitutional Political Economy, Springer, vol. 30(1), pages 96-113, March.
    9. Gregory M. Dempster & Justin P. Isaacs, 2011. "Conflict, Credibility and Asset Prices," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 24, Edward Elgar Publishing.
    10. Jochem, Torsten & Murtazashvili, Ilia & Murtazashvili, Jennifer, 2016. "Establishing Local Government in Fragile States: Experimental Evidence from Afghanistan," World Development, Elsevier, vol. 77(C), pages 293-310.
    11. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    12. Colin O’Reilly & Yi Zhang, 2018. "Post‐genocide justice: The Gacaca courts," Development Policy Review, Overseas Development Institute, vol. 36(5), pages 561-576, September.
    13. Wakako Maekawa & Barış Arı & Theodora-Ismene Gizelis, 2019. "UN involvement and civil war peace agreement implementation," Public Choice, Springer, vol. 178(3), pages 397-416, March.
    14. Bylund, Per L. & McCaffrey, Matthew, 2017. "A theory of entrepreneurship and institutional uncertainty," Journal of Business Venturing, Elsevier, vol. 32(5), pages 461-475.
    15. Seidler, Valentin, 2014. "When do institutional transfers work? The relation between institutions, culture and the transplant effect: the case of Borno in north-eastern Nigeria," Journal of Institutional Economics, Cambridge University Press, vol. 10(3), pages 371-397, September.
    16. Stefanie Haeffele-Balch & Virgil Henry Storr, 2015. "Austrian Contributions to the Literature on Natural and Unnatural Disasters," Advances in Austrian Economics, in: New Thinking in Austrian Political Economy, volume 19, pages 67-93, Emerald Group Publishing Limited.

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