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On the Ends of the State: Stationary Bandits and the Time Horizon in Eastern Congo

Author

Listed:
  • Soeren J. Henn
  • Christian Mastaki Mugaruka
  • Miguel Ortiz
  • Raúl Sánchez de la Sierra
  • David Qihang Wu

Abstract

We show that armed actors refrain from using their power to arbitrarily steal from an economy if, and only if, the armed actors' property rights over stealing from that economy are secure. By 2009, armed actors taxed, administered, and protected various villages in Democratic Republic of the Congo. We exploit the timing and targeting of an international military operation that permanently made taxing these villages impossible. Following the operation, these armed actors turned to violently expropriating the same villages. The findings suggest that the security of property rights over stealing, hence the stealing horizon, can sustain, or destroy, economic growth.

Suggested Citation

  • Soeren J. Henn & Christian Mastaki Mugaruka & Miguel Ortiz & Raúl Sánchez de la Sierra & David Qihang Wu, 2021. "On the Ends of the State: Stationary Bandits and the Time Horizon in Eastern Congo," NBER Working Papers 28631, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28631
    Note: DEV POL
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    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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