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Is fiscal decentralization helpful for mitigating internal conflict risk? sub-Saharan African countries’ focus

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  • Derick Ulrich Younda
  • Joseph Chretien Nzomo Tcheunta

Abstract

In recent years, decentralization has emerged as a crucial tool for conflict resolution worldwide. This article examines the effect of fiscal decentralization on the risk of internal conflict in Sub-Saharan Africa, where more than two decades of experimentation with decentralization contrast with the rise of multifaceted crises. Using a new dataset of 21 countries from 2002 to 2019, the results of several econometric methods show that fiscal decentralization has a statistically significant effect on internal conflict risk in Sub-Saharan Africa. However, this effect is contingent on how subnational governments are funded. While policies reliant on intergovernmental transfers and expenditure decentralization reduce the risk of internal conflicts, policies reliant on the financial empowerment of decentralized communities and resource decentralization increase the risk of internal conflicts. This means that there is a high probability of conflict occurrences if policies geared towards regional resource autonomy are encouraged. These results are consistent with the ‘Paradox of Federalism.’ Governments should increase intergovernmental transfers and local government spending following the principle of subsidiarity.

Suggested Citation

  • Derick Ulrich Younda & Joseph Chretien Nzomo Tcheunta, 2026. "Is fiscal decentralization helpful for mitigating internal conflict risk? sub-Saharan African countries’ focus," Defence and Peace Economics, Taylor & Francis Journals, vol. 37(5), pages 706-730, July.
    • Handle: RePEc:taf:defpea:v:37:y:2026:i:5:p:706-730
    DOI: 10.1080/10242694.2025.2556353
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