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Theft And Rural Poverty: Results Of A Natural Experiment

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  • Fafchamps, Marcel
  • Minten, Bart

Abstract

This paper investigates the relationship between theft and poverty in rural areas. Following a disputed presidential election, fuel supply to the highlands of Madagascar was severely curtailed in early 2002, resulting in a massive -- if temporary -- increase in poverty. This situation constituted a natural experiment of the effect of poverty on theft. Using original survey data collected in June 2002 at the height of the crisis, we find that crop theft increases with poverty and that an increase in law enforcement personnel reduces cattle theft, a form of organized crime. Results suggest that theft is used by some of the rural poor as a risk coping strategy. Increased transport costs led to a rise in cattle and crop theft, suggesting that isolation raises crime.

Suggested Citation

  • Fafchamps, Marcel & Minten, Bart, 2003. "Theft And Rural Poverty: Results Of A Natural Experiment," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25902, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25902
    DOI: 10.22004/ag.econ.25902
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    References listed on IDEAS

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    1. Morgan Kelly, 2000. "Inequality And Crime," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 530-539, November.
    2. Pradhan, Menno & Ravallion, Martin, 1999. "Demand for public safety," Policy Research Working Paper Series 2043, The World Bank.
    3. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
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