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Money Can't Buy Love But Can It Buy Peace? Evidence from the EU Programme for Peace and Reconciliation

Author

Listed:
  • Brück, Tilman

    (ISDC - International Security and Development Center)

  • Ferguson, Neil T.N.

    (ISDC - International Security and Development Center)

Abstract

In 1998, the Good Friday Agreement concluded a period of violence in Northern Ireland yet the scars of the conflict remained prevalent in the political landscape. Rival communities remained divided, economic performance was poor and intercommunity tensions frequently manifested. In a bid to reinforce progress towards a peaceful and stable society, over €1bn of public money was spent between 2000 and 2006 on small-scale community and business ventures. Despite the scale of expenditure, however, little rigorous effort has been made to test the success of the programmes. Splitting Northern Ireland into 582 electoral wards, we merge individual-level on perceptions of neighbourhood quality from the British Household Panel Survey with detailed PEACE II accounts. Noting potential selection and omitted variables biases, we implement two-stage random effects models and show that neither level of spending, nor number of projects, in a region is associated with improvements in perceptions of neighbourhood quality.

Suggested Citation

  • Brück, Tilman & Ferguson, Neil T.N., 2014. "Money Can't Buy Love But Can It Buy Peace? Evidence from the EU Programme for Peace and Reconciliation," IZA Discussion Papers 8451, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8451
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    More about this item

    Keywords

    The Troubles; EU Structural Fund; aid intervention; terrorism; peacebuilding; political violence; Northern Ireland; PEACE II;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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