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Carrot or stick? Redistributive transfers versus policing in contexts of civil unrest

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  • Patricia Justino

    () (Institute of Development Studies)

Abstract

Recurrent episodes of civil unrest significantly reduce the potential for economic growth and poverty reduction. Yet the economics literature offers little understanding of what triggers civil unrest in society and how to prevent it. This paper provides a theoretical analysis in a dynamic setting of the merits of redistributive transfers in preventing the onset of (and reducing) civil unrest and compare it with policies of more direct intervention such as the use of police. We present empirical evidence for a panel of Indian states, where conflict, transfers and policing are treated as endogenous variables. Our empirical results show, in the medium-term, redistributive transfers are both a more successful and cost-effective means to reduce civil unrest. Policing is at best a short-term strategy. In the longer term, it may trigger further social discontent.

Suggested Citation

  • Patricia Justino, 2007. "Carrot or stick? Redistributive transfers versus policing in contexts of civil unrest," HiCN Working Papers 33, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:33
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:wdevel:v:98:y:2017:i:c:p:506-522 is not listed on IDEAS
    2. Jean-François Maystadt, 2008. "Does inequality make us rebel? A revisited theoretical model applied to South Mexico," HiCN Working Papers 41, Households in Conflict Network.
    3. Frances Stewart, 2013. " The Politics of Poverty Reduction by Paul Mosley with Blessing Chiripanhura , Jean Grugel, and Ben Thirkell-White , Oxford : Oxford University Press , 2012 , viii + 411 pp," The Developing Economies, Institute of Developing Economies, vol. 51(4), pages 402-405, December.
    4. Patricia Justino, 2012. "Shared Societies and Armed Conflict: Costs, Inequality and the Benefits of Peace," HiCN Working Papers 125, Households in Conflict Network.
    5. Borany Penh, 2009. "New Convergences in Poverty Reduction, Conflict, and State Fragility: What Business Should Know," Journal of Business Ethics, Springer, vol. 89(4), pages 515-528, March.

    More about this item

    Keywords

    Transfers; policing; conflict; unrest; India; panel data;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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