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Paradise Lost: The Costs of State Failure in the Pacific

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  • Lisa Chauvet
  • Paul Collier
  • Anke Hoeffler

Abstract

Globally, state failure is hugely costly, in terms of lost output and the high costs imposed by failing states on their neighbours. This paper examines the cost of failing states in the Pacific. The Pacific region differs from other regions: since its countries are islands the neighbourhood spillovers that normally generate these costs do not apply. The cost of state failure for an island is much lower than for other states, but state failure is more costly to the state itself, as opposed to its neighbours, if the state is an island. This may be due to the greater openness of islands, implying greater flight of financial and human capital. Because neighbours are not directly affected by state failure in the Pacific, any possible interventions should be centred on the humanitarian concern.

Suggested Citation

  • Lisa Chauvet & Paul Collier & Anke Hoeffler, 2010. "Paradise Lost: The Costs of State Failure in the Pacific," Journal of Development Studies, Taylor & Francis Journals, vol. 46(5), pages 961-980.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:5:p:961-980
    DOI: 10.1080/00220381003623871
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    Cited by:

    1. Don J. Webber & StephaniƩ Rossouw, 2010. "Sub-national vulnerability measures:A spatial perspective," Working Papers 1004, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    2. Lisa Chauvet & Paul Collier, 2008. "Aid and Reform in Failing States," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 22(1), pages 15-24, May.
    3. StephaniƩ Rossouw & Don J. Webber, 2012. "Sub-national vulnerability and relative location: A case study of South Africa," Working Papers 2012-01, Auckland University of Technology, Department of Economics.

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